Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Nanjing Putian Telecommunications Co., Ltd.
2015 Annual Report
March 2016
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Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Section I. Important Notice, Contents and Paraphrase
Board of Directors, Supervisory Committee, all directors, supervisors and senior
executives of Nanjing Putian Telecommunications Co., Ltd. (hereinafter referred
to as the Company) hereby confirm that there are no any fictitious statements,
misleading statements, or important omissions carried in this report, and shall
take all responsibilities, individual and/or joint, for the reality, accuracy and
completion of the whole contents.
Li Linzhen, Principal of the Company, Shi Lian, person in charge of accounting
works and Qiu Huizhen, person in charge of accounting organ (accounting
principal) hereby confirm that the Financial Report of 2015 Annual Report is
authentic, accurate and complete.
Other directors attended the board meeting on deliberating the report except for
the following directors:
Name of absent director Position of absent director Reason for absence Attorney
Li Tong Director For work Han Shu
Ding Haiyan Independent director For work Zhang Shunyi
Concerning the forward-looking statements with future planning involved in the
Report, they do not constitute a substantial commitment for investors. Investors
are advised to exercise caution when investment risks exist.
Investors shall read the full text of this Annual Report and pay special attention
to the following risk factors:
1. Due to the negative value of our net profit for the consecutive years in Year
2014 and 2015, *ST risk admonition will be brought into effect for our corporate
stock after the disclosure of this Annual Report according to the related
requirements by Shenzhen Stock Exchange. Your attention is requested to
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Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
investment risks.
2. Investors’ attention is requested to see the risk factors that the Company may
be faced in its future development which has been analyzed in the “Chapter IV
Discussion and Analysis of Management” in this report.
The Company has no plan of cash dividends carried out, bonus issued and
capitalizing of common reserves either.
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Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Contents
Section I Important Notice, Contents and Paraphrase ................................................................. 2
Section II Company Profile and Main Finnaical Indexes ............................................................. 6
Section III Summary of Company Business ................................................................................ 10
Section IV Discussion and Analysis by the Management Team ................................................. 13
Section V Important Events .......................................................................................................... 33
Section VI Changes in shares and particular about shareholders............................................... 47
Section VII Preferred Stock……………………………………………………………………..53
Section VIII Particulars about Directors, Supervisors,Senior Executives and Employees ...... 54
Section IX Corporate Governance ................................................................................................. 64
Section X Financial Report ............................................................................................................. 69
Section XI Documents available for reference ............................................................................ 161
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Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Paraphrase
Items Refers to Contents
CSRC Refers to China Securities Regulatory Commission
SZ Stock Exchange Refers to Shenzhen Stock Exchange
China Potevio Company Limited (controlling shareholder of the
China Potevio Refers to
Company)
The Company, Company, Nanjing Putian Refers to Nanjing Putian Telecommunications Co., Ltd.
Nanjing Southern Telecom Co., Ltd. (holding subsidiary of the
Southern Telecom Refers to
Company)
Nanjing Putian Telege Intelligent Building Co., Ltd. (holding
Telege Building Refers to
subsidiary of the Company)
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Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Section II Company Profile and Main Finnaical Indexes
I. Company information
Short form of the stock NJ TEL B Stock code 200468
Short form of the stock after
N/A
changing (if applicable)
Stock exchange for listing Shenzhen Stock Exchange
Name of the Company 南京普天通信股份有限公司
Short form of the Company 南京普天
Foreign name of the
Nanjing Putian Telecommunications Co., Ltd.
Company(if applicable)
Legal representative Wang Hong
No. 58 Qinhuai Road, Jiangning Economics and Technology Development Zone, Nanjing, Jiangsu
Registrations add.
Province
Code for registrations add 211100
Offices add. No. 1 Putian Road, Qinhuai District Nanjing, Jiangsu Province
Codes for office add. 210012
Company’s Internet Web Site www.postel.com.cn
E-mail securities@postel.com.cn
II. Person/Way to contact
Secretary of the Board Rep. of security affairs
Name Zhang Shenwei Xiao Hong
No. 1 Putian Road, Qinhuai District No. 1 Putian Road, Qinhuai District
Contact address
Nanjing, Jiangsu Province Nanjing, Jiangsu Province
Tel. 86-25-58962010 86-25-58962072
Fax. 86-25-52409954 86-25-52409954
E-mail zsw@postel.com.cn xiaohong@postel.com.cn
III. Information disclosure and preparation place
Newspaper appointed for information disclosure Securities Times; Hong Kong Commercial Daily
Website for annual report publish appointed by CSRC www.cninfo.com.cn
Preparation place for annual report Financial security department of the Company
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Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
IV. Registration changes of the Company
Organization code 13487805-4
Changes of main business since listing (if
No change
applicable)
The original controlling shareholder of the Company was China Putian Corporation. In
Previous changes for controlling 2005, China Putian Corporation transferred all the holding shares free to China Potevio
shareholders (if applicable) Co., Ltd. The controlling shareholder of the company changed to China Potevio Co.,
Ltd.
V. Other relevant information
CPA engaged by the Company
Name of CPA Pan-China Certifier Public Accountants (Limited Liability Partnership)
17/F, Tower B, Beijing International Building, No. 18, Nandajie Jia, ZOL, Haidian District,
Offices add. for CPA
Beijing
Signing Accountants He Jiangxing, Zhang Liyuan
Sponsor engaged by the Company for performing continuous supervision duties in reporting period
□ Applicable √ Not applicable
Financial consultant engaged by the Company for performing continuous supervision duties in reporting period
□ Applicable √ Not applicable
VI. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting
error correction or not
□ Yes √ No
2015 2014 Changes over last year 2013
Operating income (RMB) 1,893,212,218.81 2,293,340,939.99 -17.45% 2,429,380,328.74
Net profit attributable to
shareholders of the listed -16,590,830.26 -18,976,543.88 12.57% 4,898,647.91
company(RMB)
Net profit attributable to
shareholders of the listed company
-30,429,390.88 -24,332,137.36 -25.06% -20,872,447.83
after deducting non-recurring gains
and losses(RMB)
Net cash flow arising from
15,972,428.63 71,019,036.33 -77.51% 46,696,334.40
operating activities(RMB)
Basic earnings per share
-0.08 -0.09 11.11% 0.02
(RMB/Share)
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Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Diluted earnings per share
-0.08 -0.09 11.11% 0.02
(RMB/Share)
Return on Equity -4.67% -5.08% 0.41% 1.29%
Changes over end of
End of 2015 End of 2014 End of 2013
last year
Total assets (RMB) 2,093,670,119.65 2,082,860,208.23 0.52% 2,107,194,638.89
Net assets attributable to
shareholder of listed company 346,684,394.29 364,179,913.14 -4.80% 383,210,520.22
(RMB)
VII. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net assets disclosed in financial report, under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either IAS (International
Accounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
2. Difference of the net profit and net assets disclosed in financial report, under both foreign accounting
rules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules or
Chinese GAAP (Generally Accepted Accounting Principles) in the period.
VIII. Quarterly main financial index
In RMB
First quarter Second quarter Third quarter Fourth quarter
Operating income 430,831,087.19 489,460,244.42 436,542,450.41 536,378,436.79
Net profit attributable to
-13,964,448.61 -2,649,315.32 -11,570,789.59 11,593,723.26
shareholders of the listed company
Net profit attributable to
shareholders of the listed company
-15,355,211.29 -3,232,688.83 -14,124,631.07 2,283,140.31
after deducting non-recurring gains
and losses
Net cash flow arising from
-189,481,994.99 53,604,540.41 16,298,763.76 135,551,119.45
operating activities
Whether there are significant differences between the above-mentioned financial index or its total number and the relevant financial
index disclosed in the company’s quarterly report and semi-annual report
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Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
□Yes √ No
IX. Items and amounts of extraordinary profit (gains)/loss
√Applicable □ Not applicable
In RMB
Item 2015 2014 2013 Note
Gains/losses from the disposal of
non-current asset (including the write-off 92,545.87 240,350.20 22,692,937.97
that accrued for impairment of assets)
Governmental subsidy reckoned into current
gains/losses (not including the subsidy
enjoyed in quota or ration according to 12,644,912.02 2,208,863.00 5,290,766.74
national standards, which are closely
relevant to enterprise’s business)
Gains arising from difference between
investment cost of subsidiary, affiliated
enterprise and joint-venture enterprise 3,276,764.14
obtained and fair value of identifiable net
assts that deserves in invested enterprise
Gains/losses of debt restructure -30,437.62
Other non-operating income and expenditure
1,539,116.41 -336,534.03 -706,722.67
except for the aforementioned items
Less: impact on income tax 379,452.44 14,286.43 808,962.64
Impact on minority shareholders’ equity
58,561.24 19,563.40 666,486.04
(post-tax)
Total 13,838,560.62 5,355,593.48 25,771,095.74 --
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for Companies
Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to
the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their
Securities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable √ Not applicable
In reporting period, the Company has no particular about items defined as recurring profit (gain)/loss according to the lists of
extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to
the Public --- Extraordinary Profit/loss
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Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Section III Summary of Company Business
I. Main businesses of the company in the reporting period
1. Principal Business and Products of the Company
The Company, a long established state-owned holding telecommunication equipment manufacturer, specializes in the R&D,
manufacturing and sales of telecommunication equipment products. The traditional leading products of the Company are wiring
connection equipments. After continuous industrial restructuring and upgrading for years, the Company has expanded its business
from traditional advantaged industries to industrial application fields and developed a diversified management pattern covering
industries including wiring connection, multi-media application, network and system integration. The products of the Company have
a wide geographic coverage across all the provinces and cities around the country and are also exported abroad.
The leading products of the Company are wiring connection. The operating entities besides the headquarter include also such holding
subsidiaries as Nanjing Bada Communication Equipment Co., Ltd. and Nanjing Putian Changle Communicaiton Equipment Co., Ltd.
Its wiring connection products include distribution frame, outdoor communication products, power supply products of
communication room, indoor optical fibre and cable and so on. Its target customers are domestic communication operators. In recent
years, the customers are gradually increasing as well.
Nanjing Southern Telecom Co., Ltd., a holding subsidiary and an operating entity of the Company in multi-media application
industry, specializes in provision of applied solutions in remote collaboration to large and medium-sized customers from
governments or in industries such as finance, health care, education, energy and transportation. Its leading product is video
conferencing equipments.
Nanjing Putian Tianji Building Intelligence Co., Ltd., a holding subsidiary and an operating entity in wiring products, specializes in
the production and sales of comprehensive wiring and building intelligence products covering copper wiring, optical fibre cabling,
residential wiring and building intelligence.
Its product line also includes wireline access, wireless access, industrial electrical plug device, microwave passive components and so
on.
2. Business Pattern
Currently, the main responsibility of the management department office at headquarter is decision-making and management, while
business divisions and subsidiaries are responsible for the procurement of raw materials and production and sales.
Purchasing Pattern
Fix assets and office appliances are purchased by the procurement center at headquarters. Production materials are purchased by each
operating entity as per their respective production schedule, but the procurement center at headquarters will supervise and manage
the purchasing process and invite biddings for bulk purchases.
Production Pattern
As a manufacturer, the Company mainly design, produce or source products required by clients and keep the stock at a controllable
level by using information management method.
Sales Pattern
The Company has a market network with coverage across the whole country. Our client list spreads from the three major telecom
operators including China Telecom, China Mobile and China Telecom to those from all trades. While mainly gaining business
opportunities by attending project bidding and tendering, the Company will design, produce or source equipments as requested by
clients in accordance with the project requirements, and take charge of the installation and commissioning. The profits will be
realized by deducting costs from contract sum.
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Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
3. Development in the Industry the Company Belongs to
From the point of national macro industrial policy, driven by the information industry revitalization planning in recent years,
operators has increased investment in network construction and the communications industry has maintained a good development
momentum. Based on the industry competition situation, with the continuous expansion of production capacity by manufacturing
enterprises of domestic original communication products, mutual penetration of industry chain upstream and downstream enterprises
and increasing new communication equipment manufacturers, as well as the continued implementation of centralized purchasing by
operators, the communication equipment manufacturing enterprises are facing greater market competition pressure, and the overall
profitability of the industry is experiencing a decline with rising costs in labor and operation.
4. Industry Position of the Company
The Company has established a good brand power and influence in the market with long established industry publicity. In 2015, the
Company was awarded the "Outstanding Partner" by China Mobile for the sixth year in a row, and ranked in "Top 10 Most
Competitive Enterprises of Optical Transmission and Network Access Devices in China" for the eighth year in a row. The company,
as one of the main manufacturing enterprises in the domestic wiring industry, has a lot of products with independent intellectual
property rights. Its subsidiary Southern Telecom, as a globally important distributor of the polycom video conferencing products in
the United States, has ranked the first place for polycom system for the last two years, and owns two products with independent
intellectual property rights namely Ruijing and Ruizhi. Another subsidiary Tianji Building has acquired the title of "Top 10 Brands in
Domestic Integrated Wiring" by Qianjia Website for the tenth consecutive year with a relatively high publicity in the market.
5. Driving Factors of Corporate Performance
As a manufacturing enterprise of communication equipment, the main profit pattern of the Company is to gain revenue and profit
through winning projects by award of contract, developing solutions for clients and providing products and supporting services.
Therefore, the corporate performance is mostly driven by the signing of contracts, price fluctuation of raw materials and adjustment
in rates and taxes.
II. Major changes in main assets
1. Major changes in main assets
Major assets Note of major changes
Equity assets No major changes in the reporting period.
Fixed assets No major changes in the reporting period.
Intangible assets No major changes in the reporting period.
Closing increased than opening mainly because of the construction investment of Yuhua
Construction in progress
Park in the year
2. Main overseas assets
□ Applicable √ Not applicable
III. Core Competitiveness Analysis
As a subsidiary of Potevio a large-scale enterprise directly under the Central Government, the Company has
developed into a manufacturing enterprise of communication equipments with diversified product structures after
years of effort. The primary business of the Company falls within the fields to be developed and supported with
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Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
national focus and having greater market demand and promising development prospect. With a complete structure
of industry chains and good capacity in R&D, production and marketing, the Company has established good brand
power and influence in the industry market and operators market. With a complete nationwide sales network, the
wiring business has established a long-term cooperation with operators with multiple types of products and has
won awards several times. The integrated wiring products with secured and good pipeline resources focus on
independent innovation which has acquired sample projects invested by the government in recent years resulting
in the continuously increased brand awareness. Visual intercom product takes a front-end position in the industry
for many years and has a large number of high-quality client resources. The low-voltage apparatus has a higher
market occupant rate in the rail transportation market with a higher degree of professionalism and competitive
force. The remote health care of Southern Company, the smart community and smart education of Information
Company adhere to the national strategy of smart city with a vast market space in future.
With the goal of maintaining the leading position in the industry, the Company will strengthen the industrial
development with centralized resources and accelerate the integration of resources while shifting from
manufacturer of single product to supplier of integrated solutions to further ensure its industrial competitiveness
and upgrade its sustainable development ability.
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Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Section IV Discussion and Analysis by the Management Team
1. Introduction
In 2015, despite the severe domestic and overseas economic situation, the Company has adhered to the principle
of innovation, integration and capital while focusing on the annual business development goals. With effort made
in overcoming the intense competition in the market and the rising costs in labor, the Company has maintained
steady and healthy situation. The Company has realized an operating revenue of RMB1.893 billion, representing
105.18% of the annual estimate and a decline of 17.45% as compared to last year; a total profit of RMB10.1078
million representing 117.53% of the annual estimate and an increase of 24.08% as compared to last year, and a
minus net profit attributable to the parent company of RMB16.5908 million.
I. Business Development of the Industry in 2015
Over the past year, each industrial sector of the Company has earnestly implemented the business ideas and
development goals formulated by the Company. Based on its own features and management foundation, the
Company has placed a focus on major project management and strengthened the integration of resources and
expansion of the market to continuously broaden the lines of business, and has accomplished new achievements in
the industry development with clear orientation and specific goals.
(I) Actively promoting the transformation and upgrading of industrial management and consolidate the foundation
of steady development
While concentrating on the deep integration of informatization and industrialization, the wiring industry has
specialized in intelligent manufacturing and focused on the advancement of quality and benefit of development
and steadily developed the wiring market. While consolidating the constructional needs of operators’ network, the
Company has increased investment in the development of private network market and developed system
integration business based on the operators’ platform.
By using the idea of Internet Plus and segmentation of market, the multimedia application industry has gradually
expanded the multimedia application industry boundaries and actively explored the remote health care, education,
VTM and gold customers.
Following the construction of the smart city, the access application industry has steadily pushed forward the
comprehensive wiring project construction and actively participated in the construction of major projects from
national government and in subway, real estate and other areas.
While speeding up the innovative economy and the development of emerging industries, the intelligent electrical
industry has followed the development strategy of national smart grid and actively followed up the intelligent
electrical key projects. It has achieved comprehensive coverage of 24 cities and 84 lines in the field of rail
transportation. The complete set of electrical products has gradually gained recognition in the market.
(II) Actively developing emerging industries and cultivating new markets to promote new development
New opportunities in economic development have been actively captured and new technological products have
been introduced, cultivated and developed. Distributed cloud storage projects have been awarded certificates for
software copyright and gained funding support from government. Product solutions have made successful
presence in segmented markets such as operators’ market, departments directly under the state and large-sized
enterprises and initially established market recognition.
With an unprecedented surge in information requirements, the Company has actively explored and established a
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Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
research and development system, expanded the manufacture-learning-research cooperation while focusing on the
customer demand, carried out specialized researches in IODN with colleges and universities and actively put them
into practice to promote the industrialization of IODN technology development and the evolution of industry
market upgrading, and actively developed new technology and captured the new development opportunities to
boost the traditional industry transformation in the new period for the company development.
(III) Actively following up the national major strategy and take advantage of the new opportunities during the
development of macro economy
While speeding up the exporting of traditional industries, the Company has promoted mutual cooperation among
emerging industries. Under the major national strategies of “Internet Plus”, "Made in China 2025" and "One Belt
And One Road", the Company has closely linked enterprise development practice and actively strived for major
industrial projects and actively cultivated the smart community, smart home, intelligent manufacturing and new
energy industry to promote the sustainable development of the company by taking advantage of new opportunities
during the development of national macro economy.
II. Situation in Business Management
With the new normal economic development and the unprecedented severe challenge, the Company has properly
carried out the business management in accordance with the annual operational budget and based on the principles
of downsizing, high efficiency and specialization. While adhering to the principle of behavior with choices, the
Company has properly dealt with the problems left over by history and intensified the reform, transformation and
innovation to further push forward the sustainable and steady business development.
(I) Perfecting structure and configuration, and advancing quality and efficiency to promote transformation
While making an overall planning on the development of each sector and the overall development strategy of the
Company, rationalizing the existing industrial structure, and speeding up the industrial integration, the Company
has reallocated its resources, and implemented in stages to establish the industrial foundation for the sustainable
and healthy development under the new normal.
(II) Paying close attention to capital configuration and management quality, and endeavoring to tap the idle assets
to reduce the risks and boost returns
Firmly establish the idea of "cash is king", overall planning and coordination, unified allocation of resources to
guarantee the business development at the lowest cost and through fund raising in multiple ways. Vigorously
promotes the implementation of the "two gold" control special work, strengthen the accounts receivable from the
source and process recycling, reduce inventory scale, establish an early warning system for the accounts
receivable, inventory. Take strong measures to explore "three service integration", namely the financial, business
and legal, together with special cleaning mechanism, detailed measures and strict appraisal, ensure the reduced
percentage of "two gold" in revenue. Explore the assets management center, centralized purchasing platform such
as operation management mechanism, focus on the historical accumulation of intensive treatment, revitalize the
inefficient invalid stock and make effort to enhance business value and return on assets.
(III) Reducing losses and making up deficits to advance management, and achieving tangible results in special
treatment
The Company has made out implementation plans on special treatment and make-up of deficits to get rid of
difficulties according to the actual situation in the Company, and carried out business integration, restructuring of
institutions, personnel resettlement and optimization of the structure of assets management for loss-generating
enterprises with a view to achieving the massive loss reduction.
(IV) Optimizing the structure of strategic investment, and improving the efficiency of assets management
The Company has organized the implementation of the development strategy and planning for The 13th Five Year
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Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Plan Period by Nanjing Potevio to optimize the network system and strengthen the planning management of
development strategy, actively broaden the win-win situation and deepen the cooperation and implement the
reporting mechanism of important information.
(V) Promoting the standardization management and consolidating the foundation to strengthen endogenous
momentum
The Company has feasibly strengthened the supervision on budget to increase the efficiency of execution on
budget, enhanced the cost and expense management to standardize the accounting of costs and expenses and
strictly control three items of expenses. The Company has research thoroughly the method on putting into
operation and foreign cooperation of Yuhua Pioneer Park to accelerate the revitalization of assets inventory and
create operating value. The Company has continuously carried out the construction of quality system,
environment management system and occupational health and safety management system, made good
performance on the internal and external audit on comprehensive management system, and successfully obtained
the approval of the systems of quality, environment and occupational health and safety, and the re-certification of
32 certified products. With implementation of self-innovation based on the market orientation, 33 products have
been listed in the projects under technological development plan of Nanjing Municipal Committee. The
management and control over centralized bidding and tendering of materials has been reinforced to effectively
reduce the purchasing cost, and the configuration of inventory has been optimized to enhance the centralized
disposal of scrapped materials. The measures of safe production, energy saving and emission reduction have be
strictly implemented in order to avoid the loss caused by safety accident, thereby there are no safe production
accident occurred.
(VI) Strengthening the risk management, and further perfecting the internal control system
The Company has strengthened the internal control to strictly control management risk, and has feasibly carried
out special inspections on internal control risks to guarantee the sustainable, healthy and stable development. It
has also strengthened the fulfillment of responsibilities and laid stress on key jobs to report and check key points
and rationalize the prevention of risks and rectify the vulnerabilities in management. The tracking, supervision
and inspection of processes has been enhanced to accelerate the audit on projects, and the risk evaluation
mechanism has been introduced to guide the prevention of risks by management.
(VII) Promoting the construction of human resources system
The Company has strengthened the management and construction of cadre team to perfect the corresponding
management system. It has also reinforced the target management on cost estimation and the analysis on human
resource structure and organizational development of key sectors. The remuneration system based on performance
orientation has been continuously implemented and reform of institutional mechanisms is in place to increase the
effort put in industrial integration. The appraisal program of all operating entities has been perfected to clarify the
indicators of performance evaluation based on the idea of “one company one policy”. The Company has kept
given trainings on young core talents to expand its reserve of talents, advanced the pipeline construction of
training publicity and established a new pattern on all-round training publicity to push forward the launching of
company trainings.
II. Main business analysis
1. Introduction
See the “I-Introduction” in “Discussion and Analysis by the Management Team”
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Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
2. Revenue and cost
(1) Constitute of operation revenue
In RMB
2015 2014
Increase/decrease
Ratio in operation Ratio in operation
Amount Amount y-o-y
revenue revenue
Total of operation
1,893,212,218.81 100% 2,293,340,939.99 100% -17.45%
revenue
Industries
Communication
industry -Main 1,691,878,561.49 89.37% 2,111,881,896.79 92.09% -19.89%
business income
Communication
industry -Other 85,565,978.44 4.52% 60,039,519.05 2.62% 42.52%
business income
Electrical apparatus
industry -Main 114,664,234.43 6.06% 120,313,467.75 5.25% -4.70%
business income
Electrical apparatus
industry -Other 1,103,444.45 0.06% 1,106,056.40 0.05% -0.24%
business income
Products
Video conference pr
578,207,025.57 30.54% 634,299,772.85 27.66% -8.84%
oducts
Cabling products 316,044,283.49 16.69% 305,036,225.15 13.30% 3.61%
Electrical products 114,664,234.43 6.06% 120,313,467.75 5.25% -4.70%
Wiring and other
959,577,027.40 50.69% 1,399,226,347.31 61.01% -31.42%
products
Interior offset -161,949,774.97 -8.55% -226,680,448.52 -9.88% 28.56%
Other business 86,669,422.89 4.58% 61,145,575.45 2.67% 41.74%
Regions
Domestic area -Main
1,804,753,549.57 95.33% 2,209,027,085.17 96.32% -18.30%
business income
Domestic area
-Other business 86,669,422.89 4.58% 61,145,575.45 2.67% 41.74%
income
Abroad area -Main 1,789,246.35 0.09% 23,168,279.37 1.01% -92.28%
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Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
business income
(2) About the industries, products, or regions accounting for over 10% of the company’s operating income
or operating profit
√Applicable □ Not applicable
In RMB
Increase/decrease Increase/decrease Increase/decrease
Operating
Operating cost Gross profit ratio of operating of operating cost of gross profit
revenue
revenue y-o-y y-o-y ratio y-o-y
Industries
Communication
1,691,878,561. 1,404,660,216.
industry (Main 16.98% -19.89% -21.83% 2.07%
49 99
business income)
Communication
industry -Other 85,565,978.44 73,459,683.37 14.15% 42.52% 60.95% -9.83%
business income
Electrical
apparatus
114,664,234.43 82,309,499.28 28.22% -4.70% -8.54% 3.02%
industry -Main
business income
Electrical
apparatus
1,103,444.45 496,064.99 55.04% -0.24% -28.07% 17.40%
industry -Other
business income
Products
Video conference
578,207,025.57 475,727,402.54 17.72% -8.84% -9.95% 1.00%
products
Integrated wiring
316,044,283.49 249,759,680.29 20.97% 3.61% 2.05% 1.20%
products
Electrical
114,664,234.43 82,309,499.28 28.22% -4.70% -8.54% 3.02%
products
Wiring products
959,577,027.40 832,273,093.22 13.27% -31.42% -33.41% 2.60%
and other
-161,949,774.9 -161,949,774.9
Interior offset 0.00% 28.56% 28.35% 0.28%
7 7
Other business 86,669,422.89 73,955,748.36 14.67% 41.74% 59.62% -9.56%
Regions
Domestic -Main 1,804,753,549. 1,476,603,368. 18.18% -18.30% -20.81% 2.59%
17
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
business income 57 05
Domestic-Other
86,669,422.89 73,955,748.36 14.67% 41.74% 59.62% -9.56%
business income
Overseas -Main
1,789,246.35 1,516,532.31 15.24% -92.28% -93.18% 11.28%
business income
Note: During the Reporting Period, under the influence of the centralized purchasing of operators, intense competition in the market
and so on, the selling prices, quantity and gross margin of the wiring products of the Company have declined in varying degrees as
compared to last year. The major reason of the rising gross margin of the primary business in communication industry as shown in
the above table is that the increased effort put in the industrial restructuring by the Company during the Reporting Period resulted in
the reduced revenue from integration trading with extremely low gross margin as compared to last year. Due to the higher revenue
from integration trading last year and amortized overall gross margin last year, the gross margin of primary business during the
period is higher as compared to last year.
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main business based on
latest one year’s scope of period-end
□ Applicable √ Not applicable
(3) Income from physical sales larger than income from labors
√ Yes □ No
Increase/decrease
Industries Item Unit 2015 2014
y-o-y
Sales volume Yuan 1,777,444,539.93 2,171,921,415.84 -18.16%
Communication
Output Yuan 1,695,225,422.82 2,200,577,529.23 -22.96%
industry
Storage Yuan 360,237,519.14 442,456,636.25 -18.58%
Sales volume Yuan 115,767,678.88 121,419,524.15 -4.65%
Electrical apparatus
Output Yuan 133,456,392.22 116,783,879.36 14.28%
industry
Storage Yuan 30,263,942.02 12,575,228.68 140.66%
Reasons for y-o-y relevant data with over 30% changes
√Applicable □ Not applicable
The reason of the above-mentioned substantial increase in the inventory of electric appliance industry is that the centralized supplies
of goods by Nanjing Mennekes Electric Appliance Co., Ltd, a subsidiary, in December 2015 to the subway project in Shenzhen and
Qingdao disqualify the recognition of revenue resulting in the increased goods sold.
Note: Due to the great varieties of products of the Company, the units of measurement are difficult to be unified. Therefore, the
selling quantity, throughput and inventory are all stated in amount of money as shown in the above table.
(4) Fulfillment of the company’s signed significant sales contracts up to this reporting period
□ Applicable √ Not applicable
(5) Constitute of operation cost
Industry classification
18
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Industry classification
In RMB
2015 2014
Increase/decrease
Industries Item Ratio in operation Ratio in operation
Amount Amount y-o-y
cost cost
the cost of raw
Communication material 1,270,006,328. 1,681,672,686.
81.83% 86.99% -24.48%
industry (procurement 70 23
cost)
Communication
labor cost 53,213,957.22 3.43% 46,842,944.20 2.42% 13.60%
industry
Communication
depreciation cost 5,561,296.31 0.36% 5,484,250.58 0.28% 1.40%
industry
Communication other business
73,459,683.37 4.73% 45,642,633.25 2.36% 60.95%
industry cost
the cost of raw
Electrical
material
apparatus 73,323,505.76 4.72% 82,330,575.41 4.26% -10.94%
(procurement
industry
cost)
Electrical
apparatus labor cost 2,484,395.53 0.16% 2,323,878.48 0.12% 6.91%
industry
Electrical
apparatus depreciation cost 348,197.14 0.02% 405,275.11 0.02% -14.08%
industry
Electrical
other business
apparatus 496,064.99 0.03% 689,694.99 0.04% -28.07%
cost
industry
Explanation
(6) Whether the changes in the scope of consolidation in Reporting Period
□ Yes √ No
(7)Major changes or adjustment in business, product or service of the Company in Reporting Period
□ Applicable √ Not applicable
(8) Major sales and main suppliers
Major sales client of the Company
Total top five clients in sales (RMB) 725,163,963.60
19
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Proportion in total annual sales volume for top five clients 38.30%
Information of top five clients of the Company
Serial Name Sales (RMB) Proportion in total annual sales
China Telecom Corporation and the
1 317,102,928.11 16.75%
subordinate enterprises controlled
China United Network Communications
2 Group Co.,Ltd and the subordinate 173,780,239.91 9.18%
enterprises controlled
China Mobile Communication Corporation
3 121,221,807.16 6.40%
and the subordinate enterprises controlled
4 Beijing Transtrue Technology Inc. 60,312,458.12 3.19%
China Potevio Company Limited and other
5 52,746,530.30 2.79%
enterprises with the same controller
Total -- 725,163,963.60 38.30%
Other situation of main clients
√Applicable □ Not applicable
Connected Transaction between Top Five Customers and the Company:
Among the top five customers, China Potevio Information Industry Company Limited is the controlling shareholder of the Company
and the wholly-owned subsidiary of China Potevio Information Industry Group, the de facto controller of the Company.
Other than the above statement, directors, supervisors, senior management, core technology personnel, shareholders holding more
than 5% of shares, de facto controller and other related parties of the Company don’t have any direct or indirect interests in the major
customers.
Main suppliers of the Company
Total purchase amount from top five suppliers (RMB) 533,413,741.59
Proportion in total annual purchase amount for top five
39.77%
suppliers
Information of top five suppliers of the Company
Serial Name Sales (RMB) Proportion in total annual sales
Sainty Machinery Imp and Exp
1 277,281,456.62 20.68%
Corporation.
POLYCOM communications technology
2 114,969,098.49 8.57%
(Beijing) co., LTD
3 Hongan Group Co., Ltd. 56,727,385.28 4.23%
4 Chaozhou Tri-Ring (group) Co.,Ltd 45,358,034.19 3.38%
5 Jiangsu Dongqiang Co., Ltd. 39,077,767.01 2.91%
Total -- 533,413,741.59 39.77%
Other notes of main suppliers of the Company
√Applicable □ Not applicable
20
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Top five suppliers shows no incidence relation with the Company, the directors, supervisors, senior executives, core technician,
shareholders with over 5% shares held, actual controller and other related parties did not holds equity in main suppliers directly or
indirectly.
3. Expenses
In RMB
Increase/decrease
2015 2014 Note of major changes
y-o-y
Sales expense 168,540,825.93 171,178,560.06 -1.54% -
Management expense 144,528,865.31 139,587,907.98 3.54% -
Financial expense 26,967,451.32 33,425,667.22 -19.32% -
4. Investment in R&D
√Applicable □ Not applicable
During the Reporting Period, the main purpose of the investment in R&D by the Company is to take advantage of the informatization
construction and development and introduce, cultivate and breed new technology products and advance the engineering level of
products to meet the needs of users and promote the scale-up of the industry.
During the Reporting Period, with active effort put in R&D, the Company has obtained 5 patent rights among which 4 are invention
patent and one is utility model patent, and developed new products such as a optical fibre network intelligent management system
based on first-tier processor register, single point face processing and assembled-on-site optical fibre connector and environment
monitoring system used for communication equipments.
R&D investment of the Company
2015 2014 Change ratio
Number of R&D (people) 409 510 -19.80%
Ratio of number of R&D 24.54% 27.29% -2.75%
R&D investment (Yuan) 75,025,071.39 69,702,552.43 7.64%
R&D investment accounted for
3.96% 3.04% 0.92%
R&D income
R&D investment capitalization
0.00 0.00 0.00%
(Yuan)
Capitalization R&D investment
0.00% 0.00% 0.00%
accounted for R&D investment
The reason of great changes in the proportion of total R&D investment accounted for operation income than last year
□ Applicable √ Not applicable
Reason for the great change in R&D investment capitalization rate and rational description
□ Applicable √ Not applicable
21
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
5. Cash flow
In RMB
Item 2015 2014 Y-o-y changes
Subtotal of cash in-flow from
2,447,372,165.41 2,781,172,077.08 -12.00%
operation activity
Subtotal of cash out-flow from
2,431,399,736.78 2,710,153,040.75 -10.29%
operation activity
Net cash flow from operation
15,972,428.63 71,019,036.33 -77.51%
activity
Subtotal of cash in-flow from
1,477,497.74 15,714,855.99 -90.60%
investment activity
Subtotal of cash out-flow from
6,671,958.27 7,726,537.43 -13.65%
investment activity
Net cash flow from investment
-5,194,460.53 7,988,318.56 -165.03%
activity
Subtotal of cash in-flow from
481,000,000.00 443,000,000.00 8.58%
financing activity
Subtotal of cash out-flow from
461,338,879.15 548,605,232.92 -15.91%
financing activity
Net cash flow from financing
19,661,120.85 -105,605,232.92 118.62%
activity
Net increased amount of cash
30,548,003.74 -26,664,785.31 214.56%
and cash equivalent
Main reasons for y-o-y major changes in aspect of relevant data
√Applicable □ Not applicable
During the Reporting Period, the less net cash flow from operating activities compared to last year is primarily due to the declined
sales volume and reduced sales and accounts receivables as compared to last year.
The substantial reduction in cash inflow and net cash flow from investing activities as compared to last year is primarily due to the
receipt of balance as a result of equity transfer by shareholding companies last year, which is irrelevant of this year.
During the period, the substantial increase in the cash inflow from financing activities is due to less matured and repayable bank loan
as compared to last year.
The higher net increase in cash and cash equivalents as compared to the corresponding period last year is due to the increase in net
cash inflow from financing activities.
Reasons of major difference between the cash flow of operation activity in report period and net profit of the Company
□ Applicable √ Not applicable
III. Analysis of the non-main business
√Applicable □ Not applicable
22
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
In RMB
Amount Ratio in total profit Note Whether be sustainable
Profit contribution from joint
Investment income 1,593,083.59 15.76% N
stock company
Profits or losses of
0.00 0.00% - -
fair value
Loss of bad debt receivables,
Asset impairment 2,351,962.33 23.27% N
loss of inventory decline
Government subsidy
Non-operating
20,026,710.24 198.13% income, disposal of non N
income
current assets and etc.
Non-operating Loss of disposal of non
243,655.59 2.41% N
expense current assets and etc.
IV. Assets and liability
1. Major changes of assets composition
In RMB
End of 2015 End of 2014
Ratio
Ratio in total Ratio in total Notes of major changes
Amount Amount changes
assets assets
461,959,184.3
Monetary fund 22.06% 394,586,647.76 18.94% 3.12%
4
Account 778,052,456.8
37.16% 770,808,856.85 37.01% 0.15%
receivable 4
390,501,461.1
Inventory 18.65% 455,031,864.93 21.85% -3.20%
6
Investment
31,076,520.61 1.48% 32,351,447.02 1.55% -0.07%
property
Long-term equity 185,858,240.8
8.88% 184,932,925.28 8.88% 0.00%
investment 7
Fix assets 79,575,268.20 3.80% 85,925,183.82 4.13% -0.33%
Construction in
26,629,692.29 1.27% 20,079,624.08 0.96% 0.31%
process
458,000,000.0
Short-term loans 21.88% 403,000,000.00 19.35% 2.53%
0
Long-term loans 0.00% 0.00% 0.00%
23
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
2. Assets and liability measured by fair value
□ Applicable √ Not applicable
V. Investment
1. Overall situation
√Applicable □ Not applicable
Investment in the same period of last year
Investment in the reporting (RMB) Changes
( RMB)
10,758,955.59 6,182,860.29 74.01%
2. The major equity investment obtained in the reporting period
□ Applicable √ Not applicable
3. The major non-equity investment doing in the reporting period
√Applicable □ Not applicable
In RMB
Not
Accumul achieved
Accumu
Industry ative the
Whether Amount nlativ Date of Index of
involved amount planned
be fixed invested Progress revenue disclosur disclosur
Investme by actually Sources Expected progress
Project asset in the of achieved e (if e (if
nt way investme invested of funds return and
investme reporting project ended as applicabl applicabl
nt ended as reasons
nt period period-e e) e)
project period-e of
nd
nd expected
return
“Notice
of
Investme
Phase I communi nt of
of Putian cation eq Construc
Technolo self-esta uipment 7,089,17 32,404,5 Equity 2013-10- tion for
Y 57.02% 0.00 0.00 -
gy blished manufact 6.00 46.29 Fund 18 Phase I
Innovati ure of Putian
on Park industry Technolo
gy
Innovati
on
24
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Park”;
Notice
No.:
2013-02
5;
disclosed
at Juchao
Website(
www.cni
nfo.com.
cn)
7,089,17 32,404,5
Total -- -- -- -- -- 0.00 0.00 -- -- --
6.00 46.29
4. Financial assets investment
(1) Securities investment
□ Applicable √ Not applicable
The company had no securities investment in the reporting period.
(2) Derivative investment
□ Applicable √ Not applicable
The Company has no derivatives investment in the Period
5. Application of raised proceeds
□ Applicable √ Not applicable
The Company had no application of raised proceeds in the reporting period.
VI. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.
2. Sales of major equity
□ Applicable √ Not applicable
VII. Analysis of main holding company and stock-jointly companies
√Applicable □ Not applicable
25
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Particular about main subsidiaries and stock-jointly companies net profit over 10%
In RMB
Company Main Register Operating Operating
Type Total assets Net Assets Net profit
name business capital revenue profit
Nanjing
Manufacture
South
and sales of
Telecommun 34,205,147.8 415,328,134. 147,384,575. 578,557,025. 22,876,150.6 15,499,357.3
Subsidiary data
ications 3 13 86 57 8 0
communicati
Company
on equipment
Limited
Manufacture
Nanjing
and sales of
Putian 12,000,000.0 265,264,522. 94,194,334.0 320,131,154. 20,742,560.7 17,741,228.4
Subsidiary intelligent
Intelligent 0 27 4 29 1 7
building
Building Ltd.
system
Manufacture
and sales of
Nanjing
software of
Putian
telecommuni 10,000,000.0 51,637,315.2 26,142,614.1 48,338,723.8
Network Subsidiary -411,394.10 635,926.69
cations, 0 2 8 7
Company
network and
Ltd.
electronic
equipment
Out-door
patch,
sub-line
equipment,
Nanjing
network
Putian
box(cube)of
Changle
out-door and 10,000,000.0 100,694,952. 31,029,152.4 83,914,932.5
Telecommun Subsidiary -933,372.65 -207,792.85
machinery 0 19 1 5
ications
office,
Equipment
manufacture
Co., Ltd.
and sales of
communicati
on electrical
products
Nanjing Bada manufacture
Telecommun of
11,301,400.0 -11,941,240. 13,730,603.9 -6,054,635.9 -5,986,707.9
ications Subsidiary card-terminal 6,585,199.82
0 11 9 8 0
Equipment communicati
Co., Ltd. on equipment
Putian Subsidiary Export and HKD200000 4,302,187.71 -17,324,989. -138,986.33 -138,986.33
26
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Telecommun import of 0 49
ications telecommuni
(H.K.) Co., cation
Ltd. equipment,
Hi-tech R &
D and
transfer,
technology
trade
Nanjing
Production,
Postel
sales and
Wongzhi 90,190,000.0 42,494,006.6 39,934,233.6 16,734,332.3
Subsidiary processing of -76,720.05 74,250.82
Telecommun 0 2 7 4
electrical
ications Co.,
products
Ltd.
Nanjing Manufacture
Putian and sales of
Information electrical and 14,000,000.0 14,354,345.5 16,159,079.9
Subsidiary 5,540,499.21 380,160.25 197,530.38
Technology telecommuni 0 7 6
Company cation
Ltd. products
Electronic
components
Nanjing
assembly,
Putian
electronic
Telecommun
products, 39,163,740.4 21,712,634.5
ication Subsidiary 5,000,000.00 1,607,112.25 -321,650.60 38,721.92
telecommuni 1 9
Technology
cation
Company
equipment,
Ltd.
Hi-tech R &
D and sales
Manufacture
Nanjing and sales of
Mennekes plug & USD520000 158,163,410. 90,703,072.8 115,767,678.
Subsidiary 8,001,020.77 5,483,624.71
Electrics Co., socket of 0 30 6 88
Ltd. industrial-use
d
Development
Nanjing
, production,
Putian
sale,
Datang 10,000,000.0 41,489,367.4 24,551,213.5 39,203,281.0
Subsidiary engineering 2,646,300.85 4,553,605.70
Information 0 1 5 7
technical
Electronic
service of
Co., Ltd.
electronic
27
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
product;
processing
service of
surface
mounting and
welding
Development
and
manufacture
SEI-Nanjing of ODN
Putian Joint-stock products, 37,088,800.0 56,091,394.7 27,086,240.0 38,481,155.6
1,275,450.83 1,532,991.07
Optical company optical 0 4 1 1
Network communicati
on
components
and RFTS
R&D of
communicati
on
technology
products,
sales,
Potevio
network
Hi-tech Joint-stock 337,548,141. 350,282,718. 341,870,901. 21,849,571.2
system 1,965,315.92 1,345,921.16
Industry Co., company 29 83 21 8
integration,
Ltd.
rental of
industrial
park venue
and property
management
etc.
Particular about subsidiaries obtained or disposed in report period
□ Applicable √ Not applicable
Notes of holding and shareholding companies
Situation in single subsidiary or Shareholding Company that the change of its operating performance reaches over 30% and has
major influence on the consolidated operating performance of the Company:
Net profit of RMB15.50 million realized by Southern Company in 2015, representing a decline of 34.93% as compared to the
corresponding period last year, is primarily due to the decline of sales of products in 2015 under the influence of market environment.
Despite the fall of costs at the same time, it’s not as much as the reduction in sales volume.
VIII. Structured vehicle controlled by the Company
□ Applicable √ Not applicable
IX. Future Development Prospects
28
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
1. Pattern in Industry Competition and Analysis of Development Trend
From the point of national macro industrial policy, the communications industry faces a good industrial environment. In the national
implementation of the "Internet +" under the background of the action plan and strategy of big data, the investment proportion in the
field of informatization in future will gradually increase, new technology economy represented by the Internet will develop rapidly,
and will drive the related industrial reform and improve the overall economic activity. At the same time, the manufacturing industry
upgrading will become an important direction of China's economic structure adjustment, intelligent manufacture, the Internet, the
Internet of things, the new energy industry, the implementation of the strategic planning in strategic emerging industries will have a
positive impact on the manufacturing industry in China.
From the point of industry competition, centralized purchasing in the market has become increasingly common, and operators in the
industrial chain are in a strong position, therefore the prices of centralized purchasing keep dropping, and with continued expansion
of production capacity of domestic communication equipment manufacturing enterprises, there are increasingly more new
communication equipment manufacturers, businesses of upstream and downstream enterprises have gradually penetrated to each
other, therefore, the communication equipment manufacturing industry will face more intense market competition. Meanwhile, as the
labor cost and other operating cost keep rising, the industry as a whole showed a trend of decline in profitability.
2. Development Strategy of the Company
Based on the guiding concept of taking good advantage of construction and development opportunities brought by "One Belt And
One Road" and "Made in China 2025", the Company will take the initiative to adapt the macro new normal and actively follow up
the " Internet Plus" and development in the industry. While establishing itself as one of the companies that China Potevio has set up
in eastern China and one of the listed companies owned by China Potevio, the Company will adhere to the principle of seeking
improvement in stability and for the purpose of being earnest, strong and excellent, and focusing on the scientific enterprise
development, the Company will bring forth new ideas on business management and refine the guidance of two “Trinity” to perfect
the structure of corporate governance and speed up the reform and accelerate transformation, and enhance the party construction in
enterprises and the culture of “communication, execution and performance”. While carrying forward our cause and forging ahead
into the future, uniting and striving, the Company will keep advancing the quality of business management and its core
competitiveness and push Nanjing Potevio to a new stage and create a new chapter, thereby achieving the all-win of shareholders,
staff, enterprise and society.
Based on the overall idea of business planning of adhering to the principle of “Innovation, Integration and Capital”, the Company
will accelerate the industrial restructuring and transformation upgrading and perfect the fundamental management to achieve the
continued optimization of capital configuration and the continued advancement of business quality. The Company will bring forth
new ideas on system and mechanism to focus on the advancement of economic efficiency and management quality and adhere to the
value thinking and benefits orientation. The Company will actively discover and cultivate the new source of economic growth to
achieve increase, quality and efficiency in industrial restructuring. By adhering to the intensive and overall management of such three
types of resources as industrial development, release of parks and capital utilization, the Company will expand the reform of system
and mechanism and arouse vitality and unleash potential to innovate development. By sticking to the law of market economy and
scientific operation model, the Company will enhance the integration of business resources and tap the idle assets and maximize the
increase to achieve business performance and the continued advancement of comprehensive value. Based on the “Four Abilities”
requirement and performance oriented management, the Company will strengthen team construction and promote the value of human
resources to meet the new situation and support new development. By sticking to the party construction in enterprises and the
requirement of “Three Stricts and Three Steadies”, the Company will enhance positive energy and build good business environment.
With full play of brand effect and striving for supports from all parties, the Company will make concentrated effort and lunch
constant innovation to achieve new times, new image and new glory of Nanjing Potevio.
3. Business Plan for the Coming Year
Year 2016 is a year for the Company to start the implementation of “The 13 th Five Year” Plan and a crucial year for the Company to
adjust structure and promote transformation with sustainable development. By adhering to the principle of Seeking Improvement in
29
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Stability and vigorously promoting the implementation of measures, the Company will put more effort to reform and strengthen and
drive innovation to push forward the industrial restructuring and transformation and upgrading. The Company will optimize the work
style and build good environment to ensure the achievement of target on stabilizing growth and the good start of implementation of
“The 13th Five Year” Plan, thereby pushing all works to a new level.
The main business goal of the Company in 2016 is to make sure the advancement of key indicators such as the primary business as
compared to the revenue from primary business of the Company in 2015, the further optimization of industrial structure, the further
advancement of management quality and the further enhancement of asset efficiency. The above mentioned business goal doesn’t
represent the profit estimate of the listed company in 2015. Its achievement depends on various factors including the change of
market condition and the effort put by the management team. There are a lot of uncertainties to which investors’ special attention is
brought.
The proposed measures to accomplish operating targets:
I. General industrial development and improvement of operating efficiency. By adherence to the development strategy, the Company
reasonably plans the development targets in general, strengthens the leading, melting and innovation of internet in industrial
transformation and upgrade, thus to realize new growth.
(I) optimize market structure and improve competitiveness based on advantageous sectors
As the traditional supporting industry, wiring business segment requires motivation for transformation and upgrade. In addition to
consolidation of network of traditional operator markets, attention also needs to be paid to expansion of special network and
industries markets.
As for multimedia application business segment, the Company will continue to establish and consolidate the core capability as
“remote coordination application solve provider” and promote upgrade of multimedia application business, targeting for a thorough
transformation from production and selling of products to provision of integrated solutions and services.
As for comprehensive wiring business segment, the Company has been actively engaged in expansion of optic wiring and data center
markets; expansion of coverage of Tianji smart industrial market; increased market promotion of Tianji smart security brands to
improve customers’ recognition of Tianji security products.
(II) To coordinate with channels so as to maintain steady progress of major products and improve brand influence
The Company focuses on major projects, increases sales of products with high gross profit margin, highlights products with high
added-value, increases market sales and market share. In addition, efforts are also made on subway and airports projects. The
Company actively researched and developed new products such as VCS, to serve as supplement to industrial contract and profit.
Promotion strategy and sale policies have been prepared in respect of new products, thus to make further profit and value for the
Company. Industrial customer businesses are further explored to develop new selling channels.
(III)Keep expansion of new market and new business
Successful development of emerging market promises transformation of our Company. Therefore, we will carefully analyze market
requirements, investment of material resources and customer structure, striving to steadily promote transformation of new point of
growth to matured business under differential, featured and flexible operating ideas. The Company manages to enhance development
efficiency on IODN, to respond to users’ demands timely. Market layout of smart security products will be optimized, with
expansion of market coverage of Tianji smart products. Video application sector will be broadened with optimization of “cloud +
terminal” selling model. Cloud storage project will be dramatically promoted, expecting to record breakthrough in the significant
projects and form the new pioneer in the major industries as soon as possible.
II. Promote structural reform and enhance management efficiency
(I)Integrate quality resources and accelerate capital operation to drive forward the industrial structure adjustment of the Company
Under the guideline of its strategy, with the targets of driving forward industrial structure adjustment, promoting emerging industry
development and facilitating transformation of existing industries, the Company further carried out works relating to equity
investment provided that investment efficiency shall be improved. Capital assets operation has been increased. Through structure
30
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
adjustment and fully utilization of various resources, the Company succeeded to inspire innovation and activate stock resources.
(II)Optimize assets structure and improve assets quality
The Company plans to strengthen assets quality management, particularly including accelerating management on low-efficiency and
invalid assets, aiming to enhance development quality and efficiency through optimization of resources allocation. It also focuses on
capital recovery, particularly including further effective measures in respect of recovery of overdue trade receivables and activation
of stock assets, management of assets that are not involved in production and operation for a long time, and conduct of business
integration, debt reorganization and reduction of staff number for efficiency improvement in connection with those subsidiaries
which record relatively significant losses or consecutive losses, targeting to strictly control and prevention of formation of new bad
performance assets or potential loss.
(III)Promote refined management to improve management efficiency
It has been consolidating the overall budget management, expecting to improve profitability by increasing management and control
on cost expenses. Construction of centralized procurement system of bulk commodities is being improved, so as to fully capitalizing
the function of procurement in relation to cost saving and efficiency upgrade. Financial management has been also strengthened to
fully capitalize the function of capital settlement center. Capital concentration scope has been expanded, debt structure has been
enhanced to reduce capital costs. Resources of the Company in terms of certificates, capital, market and technology are integrated
with the target of promoting industry chain competitiveness, cultivating core technology, products and application. The advantage in
differential development has been established to facilitate industrial transformation.
(IV)To further improve capability of risk management. Improve construction of internal control system, increase capability of risk
management and operation level by laws.
(V)To further strengthen human resources management. Strengthen performance assessment, promote diversified middle and long
term incentive system pilots, perfect talent training system and realize win-win results of both enterprise and employees.
4. Maintain the existing business and satisfy capital requirements for the investment projects in progress
In 2016, the Company plans to satisfy the liquidity capital requirements for own operation and project construction mainly by
reasonable allocation of own capital and banking borrowings. According to the operation budget of the Company for 2016, it is
predicted that the banking financing throughout the year would be controlled within RMB500 million.
5. Potential risks in future development
Policy risk
The telecommunication industry where the Company operates is subject to macro economy condition, economic cycle and industry
policies. Based on the 12th Five-year Plan relating to telecommunication industry released by the Ministry of Industry and
Information Technology in May 2012, the nation will continue to accelerate construction of the next generation of national
information infrastructure during the 12th Five-year Plan. In case that our national economy experiences slowing growth or tightened
macro adjustment policies are implemented with respect to infrastructure construction investment, our operating condition would be
negatively affected.
Periodic risk of telecommunication industry
The Company is mainly engaged in manufacturing and selling of telecommunication products, being one of the suppliers for major
telecommunication operator network construction in China. Determination and adjustment of operator construction periodic and
investment planning may materially affect our operation, resulting in periodic risks to the industry.
Given the decreased demands for certain products due to operator investment structure adjustment in recent years, the Company will
further adjust industrial structure, speed up industrial optimization and upgrade, improve profitability and develop capability of
exploring into new business.
Technical R&D risk
Telecommunication is subject to fast change of technical development. If the Company fails to catch up with technical reform or its
31
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
R&D results fail to meet market demands, our operating composition will be adversely affected.
The Company will actively follow up the latest development trend. Based on market demands, it will increase technology
development and introduction, trying to keep the leading position in technology.
Market competition risk
The industry in which the Company operates is full of competition. Since the implementation of centralized procurement by
operators in recent years, the pressure of market competition becomes more obvious which limits our profitability.
In addition to consolidating the traditional market, the Company will also actively expands special network and industry markets.
Further, it will continue to increase cost control. Through scientific innovation, it continues to raise its ability of research and
development, crafts and production, which drives forward the rapid development of new products and enables the Company to
maintain and improve profitability.
Risk of rising financing costs
Along with the expansion of industry scale in recent years, the Company continues to require more operating capital, with relatively
high gearing ratio recently. Besides, the Company has recorded operating losses for the past two years, facing the difficulty of
potential increase of bank financing costs.
The Company will increase communication with banks, trying to obtain preferential loan interest rate. It also further strengthens
management on capital income and expense, and plans capital supply and demand in general, to ensure dynamic balance of cash
flow.
X. Reception of research, communication and interview
1. In the report period, reception of research, communication and interview
√Applicable □ Not applicable
Time Way Type Basic situation index of investigation
“Investor relations activity record on 1
2015-07-01 Field Research Organization July 2015”of the Company on Juchao
Website
“Investor relations activity record on 12
2015-12-11 Field Research Personage December 2015”of the Company on
Juchao Website
Reception (times) 2
Number of hospitality 1
Number of individual reception 1
Number of other reception 0
Disclosed, released or let out major undisclosed
N
information
2. From the end of reporting period to the disclosure date, reception of research, communication and
interview
□ Applicable √ Not applicable
The Company had no reception of research, communication or interview from the end of reporting period to the disclosure date
32
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Section V. Important Events
I. Profit distribution plan of common stock and capitalizing of common reserves plan
Formulation, Implementation and Adjustment of common stock Profit Distribution Policy Especially Cash Dividend policy during
the Reporting Period
□ Applicable √ Not applicable
Profit distribution plan (pre-plan) of common stock and capitalizing of common reserves plan (pre-plan) in latest three years
(including the reporting period)
The Company did not distribute profits or capital reserve in recent years.
Cash dividend of common stock in latest three years (including the reporting period)
In RMB
Net profit Ratio in net profit
attributable to attributable to
common stock common stock
Year for bonus Amount for cash shareholders of shareholders of Amount for cash Proportion for cash
shares bonus (tax included) listed company in listed company bonus by other ways bonus by other ways
consolidation contained in
statement for bonus consolidation
year statement
2015 0.00 -16,590,830.26 0.00% 0.00 0.00%
2014 0.00 -18,976,543.88 0.00% 0.00 0.00%
2013 0.00 4,898,647.91 0.00% 0.00 0.00%
The Company gains profits in reporting period and the retained profit of common stock shareholders provided by parent company is
positive but no plan of cash dividend proposed of common stock
□ Applicable √ Not applicable
II. Profit distribution plan and capitalizing of common reserves plan for the Period
□ Applicable √ Not applicable
The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve either for
the year.
III. Implementation of commitment
1. Commitments that the company, shareholders, actual controller, offeror, directors, supervisors, senior
management or other related parties have fulfilled during the reporting period and have not yet fulfilled by
the end of reporting period
√Applicable □ Not applicable
33
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Type of Content of Commitment Commitment Implementatio
Commitments Promise
commitments commitments date term n
Commitments for
Share Merger Reform
Commitments in report of
acquisition or equity change
Commitments in assets reorganization
Commitments make in initial public
offering or re-financing
Equity incentive commitment
In order to
protect legal
interests of
every investor,
China Potevio
Information
Industry
Company
Limited
(“China
Potevio”), as
the controlling
shareholder of
Ningtongxin
(stock code:
China Potevio 200468), Normal
Other commitments for medium and Other
Company hereby 2015-07-08 2016-01-08 Implementatio
small shareholders commitments
Limited undertakes as n
follows: (1)as
a responsible
controlling
shareholder,
China Potevio
will not
reduce
shareholding
of the Shares
of the
Company in
the following
six months
since 8 July
2015;
34
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
(2)currently,
Ningtongxin
is in stable
operation and
the main
business is in
normal
operation.
China Potevio
will continue
to promote
transformation
and structure
adjustment of
the Company
through assets
reorganization
and
optimization
of resources
allocation, so
as to greatly
improve the
quality of our
Company;
(III) China
Potevio will
speed up
establishment
of investor
return system
of the Listed
Company by
improving its
operating
quality and
profitability,
so as to
increase
investor’s
return on a
continuous
basis.
Completed on time(Y/N) Y
35
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
If the commitments is not fulfilled on
time, shall explain the specify reason Not applicable
and the next work plan
2. Concerning assts or project of the Company, which has profit forecast, and reporting period still in
forecasting period, explain reasons of reaching the original profit forecast
□ Applicable √ Not applicable
IV. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable √ Not applicable
No non-operational fund occupation from controlling shareholders and its related party in period.
V. Explanation from Board of Directors, Supervisory Committee and Independent Directors
(if applicable) for “Qualified Opinion” that issued by CPA
□ Applicable √ Not applicable
VI. Particulars about the changes in aspect of accounting policy, estimates and calculation
method compared with the financial report of last year
□ Applicable √ Not applicable
No particulars about the changes in aspect of accounting policy, estimates or calculation method in Period.
VII. Major accounting errors within reporting period that needs retrospective restatement
□ Applicable √ Not applicable
No major accounting errors within reporting period that needs retrospective restatement for the Company in the period.
VIII. Compare with last year’s financial report; explain changes in consolidation statement’s
scope
□ Applicable √ Not applicable
New established subsidiary: Sinopharm Holding Guangzhou Medical Management Co., Ltd.
IX. Appointment and non-reappointment (dismissal) of CPA
Accounting firm appointed
Name of domestic accounting firm Pan-China Certifier Public Accountants (Limited Liability Partnership)
Remuneration for domestic accounting firm (in 10
91
thousand Yuan)
Continuous life of auditing service for domestic
2
accounting firm
Name of domestic CPA He Jiangxing, Zhang Liyuan
Re-appointed accounting firms in this period
□ Yes √ No
36
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Appointment of internal control auditing accounting firm, financial consultant or sponsor
√Applicable □ Not applicable
Pan-China Certified Public Accountants (LLP) was engaged as audit institute of internal control for the Company in this year,
auditing fee for internal control was RMB 0.32 million.
X. Particular about suspended and delisting after annual report disclosed
□ Applicable √ Not applicable
XI. Bankruptcy reorganization
□ Applicable √ Not applicable
No bankruptcy reorganization for the Company in reporting period
XII. Significant lawsuits and arbitrations of the Company
□Applicable √Not applicable
No significant lawsuits and arbitrations occurred in the reporting period
The total amount involved in the nonmaterial proceedings of the Company was RMB 12,926,400 in 2015, without predicted liability.
XIII. Penalty and rectification
□ Applicable √ Not applicable
No penalty and rectification for the Company in reporting period.
XIV. Integrity of the company and its controlling shareholders and actual controllers
√Applicable □ Not applicable
China Potevio Information Industry Company Limited (the controlling shareholder of the Company) and the effective controller
China Potevio Information Industry Group has not been found for non-performance of any valid court judgment and failure to settle
any overdue debt subject to substantial amount.
XV. Implementation of the company’s stock incentive plan, employee stock ownership plan or
other employee incentives
□ Applicable √ Not applicable
During the reporting period, the company has no stock incentive plan, employee stock ownership plan or other employee incentives
that have not been implemented.
XVI. Major related transaction
1. Related transaction with routine operation concerned
√Applicable □ Not applicable
Related Related Related Related Pricing Trading Proporti Approv Whethe Means Market Date of Index
Dealing
trans relations transacti transacti principl amount on in the ed r to of price of disclosu of
37
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
action hip on on e price (in 10 amount transacti exceed paymen similar re disclos
parties type content thousan of the on the ts transacti ure
d Yuan) same amount approve on
transacti (in 10 d availabl
on thousan amount e
d yuan)
A
compan
y with
“Estima
shares
ted
owed by
Purchas Routine
the
e Related
SEI-Nanji Compan
product Transac
ng Putian y, Telecom Market 2,699.4 2,699.4 Bank 2015-03
and 0.00% 5,100 N - tions
Optical Director product price 2 2 transfer -31
receive for year
Network of the
labor of
Compan
services 2015”
y hold
Juchao
addition
website
al post
as
Director
“Increa
sing
Estimat
Nanjing Purchas ed
Controll
Putian e Routine
ing
Honyar product Related
sharehol Telecom Market Bank 2015-10
Electrical and 54.13 54.13 0.00% 50 Y - Transac
der’s product price transfer -30
Technolo receive tions
subsidia
gy Co., labor for year
ry
Ltd. services of
2015”
Juchao
website
“Increa
Controll Sales of sing
Potevio ing product Estimat
Technolo sharehol and Telecom Market 1,028.5 1,028.5 Bank 2015-10 ed
0.00% 900 Y -
gy Co., der’s provide product price 3 3 transfer -30 Routine
Ltd. subsidia labor Related
ry services Transac
tions
38
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
for year
of
2015”
Juchao
website
“Increa
sing
Estimat
ed
Sales of
Routine
China Controll product
Related
Potevio ing and Telecom Market 4,246.1 4,246.1 Bank 2015-10
0.00% 17,860 N - Transac
Company sharehol provide product price 3 3 transfer -30
tions
Limited der labor
for year
services
of
2015”
Juchao
website
A
compan
y with
shares
owed by “Estima
the ted
Compan Routine
y, Related
SEI-Nanji
Director Transac
ng Putian House Market Bank 2015-03
and Rent out 48.46 48.46 100 N - tions
Optical property price transfer -31
Executi for year
Network
ve of of
the 2015”
Compan Juchao
y hold website
addition
al post
as
Director
Controll “Estima
Potevio ing ted
Hi-Tech sharehol House Market 1,253.2 1,253.2 Bank 2015-03 Routine
Tenant 1,400 N -
Industry der’s property price 5 5 transfer -31 Related
Co., Ltd. subsidia Transac
ry tions
39
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
for year
of
2015”
Juchao
website
9,329.9
Total -- -- -- 25,410 -- -- -- -- --
2
Details of major sold-out order sent
Not applicable
back
The actual implementation of routine
The Company made a prediction about routine related transactions for year of 2015, total
related transactions that is about to
amount estimated less than RMB293.1 million, actually occurred was RMB 93.2992
occurred in the Period with total
million, no more than the amount estimated.
amount estimated by category (if any)
Reason for the great difference
between trade price and market Not applicable
reference price (if any)
2. Related transactions by assets acquisition and sold
□ Applicable √ Not applicable
No related transactions by assets acquisition and sold for the Company in reporting period
3. Main related transactions of mutual investment outside
□ Applicable √ Not applicable
No main related transactions of mutual investment outside for the Company in reporting period
4. Contact of related credit and debt
√Applicable □Not applicable
Whether the Company had non-operating contact of related credit and debt
□ Yes √ No
The Company had no non-operating contact of related credit and debt in the reporting period.
5. Other related transactions
√Applicable □ Not applicable
In reproting period, the Company offers a loan gurantee of RMB 4.74 million for SEI-Nanjing Putian Optical Network, a subordinate
joint venture of the Company.
Found more in Section V. - XVII-2. Guarantee.
Website for temporary disclosure of the major connected transaction
Announcement Date of disclosure Website for disclosure
“Notice of Guarantee Offer to Joint-stock
2015-07-15 Juchao Website
Company”
40
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
XVII. Significant contract and implementations
1. Trusteeship, contract and leasing
(1) Trusteeship
□ Applicable √ Not applicable
No trusteeship for the Company in reporting period
(2) Contract
□ Applicable √ Not applicable
No contract for the Company in reporting period
(3) Leasing
√Applicable □ Not applicable
Explanation on leasing
During the reporting period, the Company (including subsidiaries) hired properties of Potevio High-tech Industry Company for the
purpose of production and office. The annual rental for 2015 was RMB 10,358,700.
Our subsidiary Nanjing Putian Datang Information Electronic Co., Ltd. rented properties to third parties, recording annual rental of
RMB 484,600.
Our subsidiary Nanjing Mennekes Appliances Company Limited rented plants to third parties, recording annual rental of RMB
1,100,000.
Our subsidiary Nanjing Potevio Information Technology Company Limited rented plants to third parties, recording annual rental of
RMB 1,160,000.
Our subsidiary Nanjing South Telecommunication Co., Ltd. rented properties to third parties, recording annual rental of RMB
350,000.
Items generated over 10% gains/losses in total profit in reporting period for the Company
√Applicable □ Not applicable
Amount
involved Leasing
Determine Consist of
in profit (in Influence Related
Contract-o Assets Leasing Leasing basis for related
Lessee leasing(in 10 on the relationshi
ut party leasing date from end at leasing transaction
10 thousand Company p
profit or not
thousand Yuan)
Yuan)
The leased Controllin
property g
Nanjing was used shareholde
Potevio
Putian as the r’s
Hi-Tech House & 2015-01-0 2015-12-3 Market
Telecomm 3,667.14 -1,035.87 office and Y subsidiary;
Industry building 1 1 price
unications production senior
Co., Ltd.
Co., Ltd. location of executive
the of the
Company; Company
41
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
It benefits hold
to additional
guarantee post as
the normal Director(a
operation n
developme enterprise
nt of the with
Company. shares held
by the
Company)
2. Major guarantees
√Applicable □ Not applicable
(1) Guarantees
In 10 thousand Yuan
Particulars about the external guarantee of the Company (Barring the guarantee for subsidiaries)
Guarante
Related
Actual date of e for
Announce Actual Implemen
Name of the Company Guarantee happening (Date Guarantee Guarantee
ment guarantee related
guaranteed limit of signing type term ted (Y/N)
disclosure limit
agreement) party
date
(Y/N)
Jointly
SEI-Nanjing Putian 2015.8.5-201
2015-07-15 600 2015-08-05 10 liability N Y
Optical Network 6.2.4
guaranty
Jointly
SEI-Nanjing Putian 2015.8.10-20
2015-07-15 600 2015-08-10 364 liability N Y
Optical Network 16.2.10
guaranty
Jointly
SEI-Nanjing Putian 2015.8.27-20
2015-07-15 600 2015-08-27 90 liability N Y
Optical Network 16.2.26
guaranty
Jointly
SEI-Nanjing Putian 2015.9.29-20
2015-07-15 600 2015-09-29 10 liability N Y
Optical Network 16.3.28
guaranty
Total actual occurred
Total approving external guarantee
600 external guarantee in report 474
in report period (A1)
period (A2)
Total actual balance of
Total approved external guarantee
600 external guarantee at the 474
at the end of report period ( A3)
end of report period (A4)
Guarantee of the Company for the subsidiaries
Related Guarante
Actual date of
Announce Actual Implemen e for
Name of the Company Guarantee happening (Date Guarantee Guarantee
ment guarantee
guaranteed limit of signing type term ted (Y/N) related
disclosure limit
agreement)
date party
42
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
(Y/N)
Nanjing Southern Jointly
2015.1.20-20
Telecommunication 2014-03-11 6,000 2015-01-20 1,000 liability Y N
15.12.28
Co., Ltd. guaranty
Nanjing Southern Jointly
2015.4.1-201
Telecommunication 2014-03-11 6,000 2015-04-01 2,000 liability N N
6.4.1
Co., Ltd. guaranty
Nanjing Southern Jointly
2015.11.16-2
Telecommunication 2015-03-31 6,000 2015-11-16 2,000 liability N N
016.8.11
Co., Ltd. guaranty
Nanjing Southern Jointly
2015.8.13-20
Telecommunication 2015-03-31 6,000 201-08-13 800 liability N N
16.2.13
Co., Ltd. guaranty
Nanjing Putian Jointly
2015.3.25-20
Intelligent Building 2014-03-11 2,000 2015-03-25 1,000 liability Y N
15.11.25
Ltd. guaranty
Nanjing Putian Jointly
2015.8.31-20
Intelligent Building 2015-03-31 2,000 2015-08-31 500 liability N N
16.8.31
Ltd. guaranty
Nanjing Putian Jointly
2015.9.15-20
Intelligent Building 2015-03-31 2,000 2015-09-15 1,000 liability N N
16.9.15
Ltd. guaranty
Nanjing Putian Jointly
2015.11.6-20
Intelligent Building 2015-07-14 1,000 2015-11-06 1,000 liability N N
16.5.6
Ltd. guaranty
Total amount of actual
Total amount of approving
occurred guarantee for
guarantee for subsidiaries in report 9,000 9,300
subsidiaries in report period
period (B1)
(B2)
Total balance of actual
Total amount of approved
guarantee for subsidiaries at
guarantee for subsidiaries at the 9,000 7,300
the end of reporting period
end of reporting period (B3)
(B4)
Guarantee of the Company for the subsidiaries
Guarante
Related
Actual date of e for
Announce Actual Implemen
Name of the Company Guarantee happening (Date Guarantee Guarantee
ment guarantee related
guaranteed limit of signing type term ted (Y/N)
disclosure limit
agreement) party
date
(Y/N)
Total amount of guarantee of the Company( total of three abovementioned guarantee)
Total amount of approving Total amount of actual
guarantee in report period 9,600 occurred guarantee in report 9,774
(A1+B1+C1) period (A2+B2+C2)
43
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Total amount of approved Total balance of actual
guarantee at the end of report 9,600 guarantee at the end of 7,774
period (A3+B3+C3) report period (A4+B4+C4)
The proportion of the total amount of actually guarantee in the net
22.42%
assets of the Company (that is A4+ B4+C4)
Including:
The debts guarantee amount provided for the guaranteed parties
4,800
whose assets-liability ratio exceed 70% directly or indirectly(E)
Proportion of total amount of guarantee in net assets of the
0
Company exceed 50%(F)
Total amount of the aforesaid three guarantees(D+E+F) 4,800
Explanations on possibly bearing joint and several liquidating
Not applicable
responsibilities for undue guarantees (if applicable)
Explanations on external guarantee against regulated procedures
Not applicable
(if applicable)
Explanation on guarantee with composite way
(2)Guarantee outside against the regulation
□Applicable √Not applicable
No guarantee outside against the regulation in Period.
3. Entrust others to cash asset management
(1) Trust financing
□ Applicable √ Not applicable
The Company had no trust financing in the reporting period.
(2) Entrusted loans
□ Applicable √ Not applicable
The company had no entrusted loans in the reporting period.
4. Other material contracts
□ Applicable √ Not applicable
No other material contracts for the Company in reporting period
XVIII. Explanation on other significant events
√Applicable □ Not applicable
Index of the material events that disclosed in reporting period:
Event Disclosure date Index of information on appointed website
Annual Performance Forcast of 2014 2015.1.29 Juchao Website: www.cninfo.com.cn
th
Resolution of 24 Meeting of 6th Session of the Board 2015.3.31 Juchao Website: www.cninfo.com.cn
Resolution of 13th Meeting of 6th Session of 2015.3.31 Juchao Website: www.cninfo.com.cn
44
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Supervisory Committee
Summary of annual report of 2014 2015.3.31 Juchao Website: www.cninfo.com.cn
Notice of provision for the devaluation of assets for 2015.3.31 Juchao Website: www.cninfo.com.cn
year of 2014
Estimation of Routine Related Transaction for year of 2015.3.31 Juchao Website: www.cninfo.com.cn
2015
Guarantee offer to controlling subsidiary 2015.3.31 Juchao Website: www.cninfo.com.cn
Performance Forcast for 1Q of 2015 2015.4.10 Juchao Website: www.cninfo.com.cn
Quarterly report for 1Q of 2015 2015.4.28 Juchao Website: www.cninfo.com.cn
Notice of abnormal fluctuation of stock trading 2015.5.19 Juchao Website: www.cninfo.com.cn
Notice of abnormal fluctuation of stock trading 2015.6.3 Juchao Website: www.cninfo.com.cn
Resolution of 26th Meeting of 6th Session of the Board 2015.6.9 Juchao Website: www.cninfo.com.cn
Convening annual general meeting of 2014 2015.6.9 Juchao Website: www.cninfo.com.cn
Informed Notice of Convening general meeting of 2014 2015.6.20 Juchao Website: www.cninfo.com.cn
Resolution of general meeting of 2014 2015.7.1 Juchao Website: www.cninfo.com.cn
Suggestive announcement of deferrable general of 2015.7.3 Juchao Website: www.cninfo.com.cn
board of directors and board of supervisors
Notice of the controlling shareholder's undertaking 2015.7.10 Juchao Website: www.cninfo.com.cn
Supplementary Notice of the controlling shareholder's 2015.7.11 Juchao Website: www.cninfo.com.cn
undertaking
Performance Forcast for Semi-Annual of 2015 2015.7.14 Juchao Website: www.cninfo.com.cn
Resolution of 27th Meeting of 6th Session of the Board 2015.7.15 Juchao Website: www.cninfo.com.cn
Notice of company director and GM Resignation 2015.7.15 Juchao Website: www.cninfo.com.cn
Notice of the increase in security for the holding 2015.7.15 Juchao Website: www.cninfo.com.cn
subsidiary
Notice of Guarantee Offer to Joint-stock Company 2015.7.15 Juchao Website: www.cninfo.com.cn
Convening 1st extraordinary general meeting of 2015 2015.7.15 Juchao Website: www.cninfo.com.cn
Informed Notice of Convening 1st extraordinary 2015.7.25 Juchao Website: www.cninfo.com.cn
general meeting of 2015
Resolution of 1st extraordinary general meeting of 2015.8.1 Juchao Website: www.cninfo.com.cn
2015
Resolution of 28th Meeting of 6th Session of the Board 2015.8.25 Juchao Website: www.cninfo.com.cn
Summary of Semi-Annual Report 2015 2015.8.25 Juchao Website: www.cninfo.com.cn
Notice of receipt of government subsidies 2015.10.15 Juchao Website: www.cninfo.com.cn
Performance Forcast for 3Q of 2015 2015.10.15 Juchao Website: www.cninfo.com.cn
Resolution of 29th Meeting of 6th Session of the Board 2015.10.30 Juchao Website: www.cninfo.com.cn
Text of 3Q Report of 2015 2015.10.30 Juchao Website: www.cninfo.com.cn
Notice of increasing daily related transaction of 2015 2015.10.30 Juchao Website: www.cninfo.com.cn
45
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
XIX. Significant event of subsidiary of the Company
□ Applicable √ Not applicable
XX. Social responsibility
√Applicable □ Not applicable
The Company operates in telecommunication industry. By adherence to independent innovation, it promotes sustainable development,
and earnestly performs its responsibility and obligation to the society, shareholders, staff and other interest stakeholders.
The Company continues to perfect corporate governance. In strict accordance with the requirements of the articles of association and
ruling procedures of the general meeting, the Company standardizes convening, holding, voting procedures of general meeting, to
ensure shareholders are aware of, participate and vote on significant issues of the Company. It performs information disclosure
carefully to ensure the truthfulness, accuracy, on-time, complete and fairness of information disclosure, so as to protect the legal
interests of the entire shareholders, especially minority shareholders.
The Company highly focuses on management on quality, environment and occupational safety and health. It has obtained certificates
including GB/T19001-2000 quality system, GB/T24001-2004 environment management system and GB/T28001-1996 national
occupational safety and health management system, so as to continuously promote environment protection and sustainable
development. During the reporting period, the various environment indicators of the Company satisfy relevant standards in general.
The Company pays much attention to staff value. Thus, it adheres to the enterprise culture centralized by the idea of “communication,
execution and performance results”, strictly complies with Labor Law and other relevant laws and regulations, and establishes perfect
human resources management system and remuneration and benefits system. Since the Company emphasizes talent training, it
provides lots of staff trainings to improve their quality and finally realize growth of staff and the Company at the same time.
The Company has always viewed honesty as the operating principle. Based on legal operation, the Company has actively built
cooperation and partnership with suppliers, customers, banks and other stakeholders. During this, it shows respect to the legal
interests of stakeholders, emphasizes communication and negotiation with them, realize win-win for both the Company and
stakeholders, finally to promote sustainable and steady development.
The listed company and subsidiaries is in the range of heavy pollution industry that regulated by State environment protection
departments
□ Yes □ No √ Not applicable
XXI. Issuance of corporate bonds
Whether the company has corporate bonds that have been publicly issued and listed on the stock exchange, and not yet due or due but
not fully cashed on the approval date of annual report
No
46
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Section VI. Changes in Shares and Particulars about Shareholders
I. Changes in Share Capital
1. Changes in Share Capital
In Share
Before the Change Increase/Decrease in the Change (+, -) After the Change
Capitaliza
New
Bonus tion of Proportio
Amount Proportion shares Others Subtotal Amount
shares public n
issued
reserve
115,000,0 115,000,0
I. Unlisted shares 53.49% 53.49%
00 00
115,000,0 115,000,0
1. Sponsor’s shares 53.49% 53.49%
00 00
Including: state-owned 115,000,0 115,000,0
53.49% 53.49%
shares 00 00
100,000,0 100,000,0
II. Listed shares 46.51% 46.51%
00 00
2. Domestically listed 100,000,0 100,000,0
46.51% 46.51%
foreign shares 00 00
215,000,0 215,000,0
III. Total shares 100.00% 100.00%
00 00
Reasons for share changed
□ Applicable √ Not applicable
Approval of share changed
□ Applicable √ Not applicable
Ownership transfer of share changes
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common
shareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose or need to disclosed under requirement from security regulators
□ Applicable √ Not applicable
2. Changes of restricted shares
□ Applicable √ Not applicable
II. Securities issuance and listing
47
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
1. Security offering (without preferred stock) in Reporting Period
□ Applicable √ Not applicable
2. Changes of total shares and shareholders structure as well as explanation on changes of assets and
liability structure
□ Applicable √ Not applicable
3. Existing internal staff shares
□ Applicable √ Not applicable
III. Particulars about shareholder and actual controller of the Company
1. Amount of shareholders of the Company and particulars about shares holding
In Share
Total preference
Total preference shareholders
Total common shareholders with voting
Total common
stock with voting rights recovered
stock
shareholders at rights recovered at end of last
shareholders in 10,958 10,996 0 0
end of last month at end of month before
reporting
before annual reporting period annual report
period-end
report disclosed (if applicable) disclosed (if
(found in note8) applicable)
(found in note8)
Particulars about shares held above 5% by shareholders or top ten shareholders
Total Number of share pledged/frozen
Amount
sharehol Amount
Proportio Changes of
Full name of Nature of n of ders at of listed
in report un-listed
Shareholders shareholder shares the end shares State of share Amount
held period shares
of report held
held
period
State-owned 115,000, 115,000,
China Potevio 53.49% 0
corporation 000 000
Shen wan
hongyuan Foreign 8,020,02 3,985,37
3.73% 8,020,025
securities (Hong corporation 56
Kong) co., LTD
GUOTAI JUNAN
SECURITIES(H Foreign 3,642,20 -1,474,34
1.69% 3,642,204
ONGKONG) corporation 49
LIMITED
48
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Domestic nature 2,807,00
Zhang Huai’an 1.31% 407,000 2,807,000
person 0
Domestic nature 2,369,63 1,348,90
Zheng Enyue 1.10% 2,369,639
person 95
Domestic nature 2,007,11
Sun Huiming 0.93% 8,600 2,007,110
person 0
Domestic nature 1,782,87 1,051,25
Gu Jinhua 0.83% 1,782,871
person 16
LI LEON ZHAN Foreign nature 1,472,72
0.68% -125,969 1,472,720
WEI person 0
Domestic nature Unknow
Hu Xiaofeng 0.42% 898,800 898,800
person n
Domestic nature
Chen Ren 0.31% 658,200 348,200 658,200
person
Strategy investors or general legal
person becomes top 10 shareholders
N/A
due to rights issued (if applicable)
(see note3)
Explanation on associated Among the top ten shareholders, China Potevio is neither a related party nor a person acting
relationship among the aforesaid in concert with the others. It’s unknown by the Company whether there are related parties or
shareholders persons acting in concert among the other shareholders.
Top 10 shareholders with circulation shares held
Type of shares
Shareholders’ name Amount of listed shares held at end of the Period
Type Amount
Domestically
Shen wan hongyuan securities
8,020,025 listed foreign 8,020,025
(Hong Kong) co., LTD
shares
GUOTAI JUNAN Domestically
SECURITIES(HONGKONG) 3,642,204 listed foreign 3,642,204
LIMITED shares
Domestically
Zhang Huai’an 2,807,000 listed foreign 2,807,000
shares
Domestically
Zheng Enyue 2,369,639 listed foreign 2,369,639
shares
Domestically
Sun Huiming 2,007,110 listed foreign 2,007,110
shares
49
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Domestically
Gu Jinhua 1,782,871 listed foreign 1,782,871
shares
Domestically
LI LEON ZHAN WEI 1,472,720 listed foreign 1,472,720
shares
Domestically
Hu Xiaofeng 898,800 listed foreign 898,800
shares
Domestically
Chen Ren 658,200 listed foreign 658,200
shares
Domestically
Wang Feifei 604,408 listed foreign 604,408
shares
Expiation on associated relationship
or consistent actors within the top 10
The Company is unknown whether there exists associated relationship or belongs to
un-restrict shareholders and between
consistent actor among the above said shareholders.
top 10 un-restrict shareholders and
top 10 shareholders
Explanation on shareholders
involving margin business about top
ten common stock shareholders with N/A
un-restrict shares held(if applicable)
(see note4)
Whether top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held have a buy-back
agreement dealing in reporting period
□ Yes √ No
The top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held of the Company have no
buy-back agreement dealing in reporting period.
2. Controlling shareholder of the Company
Nature of controlling shareholders: central state-owned holding
Type of controlling shareholders: legal person
Legal person/person
Controlling shareholders Date of foundation Organization code Main operation business
in charge of the unit
China Potevio is a large
central enterprise under
China Potevio Xing Wei 2003-07-23 71093155-5 direct administration of
State-owned Assets
Supervision and
50
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Administration
Commission of the State
Council, focusing on
manufacture and trading of
information
telecommunication
products, relevant
technology research and
services. The operation
scope covers information
telecommunication,
broadcasting, industrial
information, financial
electrics and new energy.
Equity of other
Domestic and overseas listed companies directly controlled includes Shanghai Putian Youtong
domestic/oversea listed
Technology Co., Ltd., Nanjing Putian Telecommunications Co., Ltd., Chengdu Potevio Cable Co.,
company control by
Ltd.; Domestic and overseas listed companies indirectly controlled includes Eastern
controlling shareholder as
Communications Co., Ltd., Eastcompeace Smart Card Co., Ltd., the Company takes no stake in
well as stock-joint in report
domestic and overseas listed company.
period
Changes of controlling shareholders in reporting period
□ Applicable √ Not applicable
The Company had no changes of controlling shareholders in reporting period
3. Actual controller of the Company
Nature of actual controller: central state-owned assets management
Type of actual controller: legal person
Legal
Actual controlling shareholders person/person in Date of foundation Organization code Main operation business
charge of the unit
A large central enterprise under
direct administration of
State-owned Assets Supervision
and Administration Commission
of the State Council, focusing on
manufacture and trading of
China Putian Corporation Xing Wei 1980-03-29 10000157-X
information telecommunication
products, relevant technology
research and services. The
operation scope covers
information telecommunication,
broadcasting, industrial
51
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
information, financial electrics
and new energy.
No domestic and overseas listed company directly controlled and held by the company. Domestic
Equity of domestic/oversea and overseas listed company indirectly controlled by China Potevio Stock includes Shanghai
listed company control by Putian Youtong Technology Co., Ltd., Nanjing Putian Telecommunications Co., Ltd., Chengdu
actual controller in report period Putian Telecommunications Cable Co., Ltd, Eastern Communications Co., Ltd. and Eastcompeace
Smart Card Co., Ltd.
Changes of actual controller in reporting period
□ Applicable √ Not applicable
No changes of actual controllers for the Company in reporting period.
Property right and controlling relationship between the actual controller and the Company is as follow:
State-owned Assets Supervision and Administration Commission of the State Council
100%
China Putian Corporation
100%
China Potevio Company Limited
53.49%
Nanjing Putian Telecommunications Co., Ltd.
Actual controller controlling the Company by entrust or other assets management
□ Applicable √ Not applicable
4. Particulars about other legal person shareholders with over 10% shares held
□ Applicable √ Not applicable
5. Limitation and reducing the holdings of shares of controlling shareholders, actual controllers,
restructuring side and other commitment subjects
□ Applicable √ Not applicable
52
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Section VII. Preferred Stock
□ Applicable √ Not applicable
The Company had no preferred stock in the reporting.
53
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Section VIII. Particulars about Directors, Supervisors, Senior
Executives and Employees
I. Changes of shares held by directors, supervisors and senior executives
Amount Amount
Shares Shares
of shares of shares
Start held at Other held at
Working End date increased decreased
dated of
Title Sex Age of office period-be changes period-en
Name status office in this in this
term
term gin (share) d
period period
(Share) (Share)
(Share) (Share)
Director
Currently 2013-08-
Xu Qian (Chairma M 53 0 0 0 0 0
in office 23
n)
Currently 2006-05-
Li Tong Director M 45 0 0 0 0 0
in office 11
Currently 2009-05-
Han Shu Director M 52 0 0 0 0 0
in office 22
Currently 2011-06-
Li Ying Director F 49 0 0 0 0 0
in office 17
Huang Currently 2009-05-
Director M 42 0 0 0 0 0
Haodong in office 22
Independ
Zhang Currently 2009-05-
ent M 71 0 0 0 0 0
Shunyi in office 22
director
Independ
Zheng Currently 2009-05-
ent F 68 0 0 0 0 0
Aimei in office 22
director
Independ
Ding Currently 2009-08-
ent M 59 0 0 0 0 0
Haiyan in office 07
director
Superviso
r(Chairma
n of the
Yang Currently 2011-06-
Superviso M 63 0 0 0 0 0
Zhihe in office 17
ry
Committe
e)
54
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Superviso Currently 2012-05-
Tang Di F 39 0 0 0 0 0
r in office 17
Liu Superviso Currently 2009-05-
F 44 0 0 0 0 0
Xiaodong r in office 22
Li Deputy Currently 2014-10-
M 44 0 0 0 0 0
Linzhen GM in office 10
Zhang Deputy Currently 2011-12-
M 40 0 0 0 0 0
Shenwei GM in office 15
Secretary
Zhang Currently 2007-11-
of the M 40 0 0 0 0 0
Shenwei in office 30
Board
Chief
Currently 2008-09-
Shi Lian Accounta M 43 0 0 0 0 0
in office 25
nt
Director
Wang (Vice Office 2012-05- 2015-07-
F 49 0 0 0 0 0
Hong Chairman leaving 17 14
)
Wang Office 2011-12- 2015-07-
GM F 49 0 0 0 0 0
Hong leaving 15 14
Lu Deputy Office 2011-12- 2015-07-
M 55 0 0 0 0 0
Yongshu GM leaving 15 14
Total -- -- -- -- -- -- 0 0 0 0 0
II. Changes of directors, supervisors and senior executives
Name Title Type Date Reasons
Director ,Vice
Wang Hong Office leaving 2015-07-14 Resignation
Chairman
Director ,Vice
Wang Hong Getting Fired 2015-07-14 Resignation
Chairman, GM
Lu Yongshu Deputy GM Getting Fired 2015-07-14 Job changes
III. Post-holding
Professional background, major working experience and present main responsibilities in Company of directors, supervisors and
senior executive at the present
Directors:
Mr. Xu Qian, 53 years old, getting MBA, owes a graduate degree and joint the work in 1984. He has held position of engineer and
deputy GM of communication device department in China P&T Appliances respectively, GM and deputy GM of China P%T
55
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Appliances Beijing Company, vice-secretary (secondment for getting experience) of CPC Lankao County Committee, Henan
Province, GM assistant of China P&T Appliances, deputy GM of China P&T Appliances and deputy GM of China P&T Appliances
Group; he served as members of the party group and deputy GM in China P&T Appliances Group from June 2003 to April 2009; acts
as members of the party group and deputy GM in China Putian Corporation since April 2009, senior vice president (concurrently) of
China Potevio Company Limited and GM (concurrently) of communications industry business from June 2009 to Septenber 2014;
senior vice president (concurrently) of China Potevio from June 2009 to August 2014; executive vice president of China Potevio
since August 2014; and Party Secretary of the Company since May 2013.
Mr. Xu Qian holds concurrent posts of Director and President fo the Company since August 2013.
Mr. Li Tong, 45 years old, bachelor degree, major in foreign enterprise management, joined in work in 1993, once acted as the
division head of enterprise management department, vice-general manager, deputy director of enterprise restructuring office, vice
general manager of enterprise development department, and general manager of enterprise operation department I of China Putian
Corporation, and vice general manager of enterprise development department, and general manager of enterprise operation
department I of China Potevio Co, Ltd; held a post of the general manager of Nanjing Potevio Communication and Technology
Industrial Park from Dec., 2007 to Dec., 2011; held a post of the deputy secretary of party committee and secretary of discipline
inspection commission(August 2011) of the Company from May 2011 to December 2011; he has held a post of vice general manager
of the Company from May 2011 to June 2013; and serves as secretary of the party committee of the Company from December 2011
to May 2013; act as GM of legal department for audit supervision in China Potevio Co, Ltd from May 2013 to March 2015; holds a
post of GM of comprehensive affairs department in China Potevio Co, Ltd since March 2015, and office director of the company
since March 2015.
Mr. Li Tong serves as director of the Company since May 2006.
Mr. Han Shu, 52 years old, master degree, major in communication and electronic system, joined in work in 1983, once acted as the
technician of Xi'an Microwave Equipment Factory of Ministry of Posts and Telecommunications, engineer and deputy director of
chief engineer office of branch of Xi'an Post and Telecommunication Equipment Factory, deputy director, director and secretary of
the party committee of Xi'an Potevio Telecommunications Equipment Factory, and has held the post of vice general manager of
communication business department and general manager of marketing department I of China Potevio Co., Ltd. from January 2009
to September 2014, and serves as GM of business department I of the China Potevio in September 2014.
Mr. Han Shu holds concurrent post of Director of the Company since May 2009.
Ms. Li Ying, 49 years old, bachelor degree, major in computer communication, joined in work in 1989, once acted as engineer of
technology development center and deputy director of technology management department of China Posts and Telecommunications
Industry Corporation, deputy director and director of technology management department of China Potevio Information Industry
Group Co., Ltd., vice general manager and manager of industry development department of Potevio Institute of Technology Co., Ltd.,
and general manager of integrated management division of system business department and vice general manager of system business
department of China Potevio Co., Ltd., held a post of vice general manager of communication industry business department and
general manager of communication industry business division of integrated management department of China Potevio Co., Ltd. from
December 2007 to December 2010, she served as general manager of HR department of China Potevio Co., Ltd. since December
2010, and a manager of HR department of Chin a Potevio Corporation from December 2011 to May 2015. She served as operation
management senior supervisor of business management department of China Potevio Information Industry Group Co., Ltd. since
May 2015.
Ms. Li Ying serves as a director of the Company since June 2011.
Mr. Huang Haodong, 42 years old, doctor degree, major in automation, joined in work in 2001, once acted as project manager of
56
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
R&D department and industry development department of Potevio Institute of Technology Co., Ltd., manager of special project for
exchange of system business division and soft exchange of product department, and vice general manager of wide band product
department of China Potevio Co., Ltd., he has successively held a post of vice general manager of broadcasting and TV industry
business department in China Potevio Co., Ltd. and vice general manager of broadcasting and TV business division and GM of
marketing department, deputy GM of broadcasting and TV industry and GM of system integration department and GM of audio
system department from December 2007 to September 2014; and serves as GM of the Business division V department of China
Potevio since September 2014.
Mr. Huang Haodong serves as a director of the Company since May 2009.
Independent director:
Mr. Zhang Shunyi, 71 years old, bachelor degree, major in radio technology, joined in work in 1968. He acted as vice director of the
overall unit workshop and computer plant in Taiyuan Radio 6th Factory, a deputy director, director and deputy chief of science&
technology office of the image research (Dept. of Radio), comupter office ( communications engineering dept.) and comupter
principle section (Dept. of Computering) respectively in Nanjing Posts and Telecommunications College; and a director of
information network research institute of Nanjing Posts and Telecommunications College as well as GM of Dept. of Communication
Technology; he served as vice president of Nanjing University of Posts and Telecommunications from June 1996 to July 2006; acts
as a professor in the Nanjing University of Posts and Telecommunications and Doctoral tutor, a leading scientist in the institute of
information network technology of Nanjing University of Posts and Telecommunications and in the department of inforamtion
network ( doctoral and postgraduate), Nanjing University of Posts and Telecommunications, a director of Network &
Communication Technology ERC of Jiangsu Province.
Mr. Zhang Shunyi serves as an independent director of the Company since May 2009.
Ms. Zheng Aimei, 68 years old, bachelor degree, major in trade and economic, getting MBA, joined in work in 1970. She acted as
director of Taxation 2nd Office of Nanjing Taxation Bureau and deputy chief of Nanjiang Local Taxation Bureau; From April 2000 to
September 2006, she served as the deputy chairman in Jiangsu Yianye Tax Agent Office, a director of Nanjiang TianyeTax Agent
Office since September 2006.
Ms. Zheng Aime serves as an independent director of the Company since May 2009.
Mr. Ding Haiyan, 59 years old, doctor degree, major in film-television theory, joined in work in 1983, once acted as the doctorial
tutor in Communication University of China (former Beijing Broadcasting Institute); he serves as vice-president of CUCN and
doctorial tutor in Communication University of China from September 2004 to September 2014; serves as managing vice president
of Hebei Institute of Communication College since March 2014.
Mr. Ding Haiyan holds concurrent post of independent director of the Company since August 2009.
Supervisor:
Mr. Yang Zhihe, 63 years old, bachelor degree, major in economic management, joined in work in 1969, once acted as the principle
staff member of production division of machinery and electronics department, vice director of industry development division of
machinery and electronics department, director of economic operation division of electronic industry department, director of
information industry department, vice general manager of enterprise management department of China Potevio, general manager of
enterprise management department, director of information industry , deputy director of enterprise restructuring office, the secretary
of the party committee and agent of factory director of Guilin Potevio Telecom Equipment Factory; a deputy secretary of the party
committee, secretary of commission and chairman of the labor union of Potevio Capitel Telecommunication Equipment Factory
(Group) from May 2007 to March 2008; he has held the post of general manager of auditing department of China Potevio Co., Ltd.
since March2008; and deputy team leader of the leading party group and discipline inspection group of China Putian Corporation
57
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
since August 2011. He retired in May 2014.
Mr. Yang Zhihe holds concurrent post of supervisor and Chairman of the Supervisory Committee of the Company since June 2011.
Ms. Tang Li, 39 years old, doctor degree, major in International Law, joined in work in 2002, once acted as the legal specialist of the
president’s office, worked for China Potevio Information Industry Group Co., Ltd. from June 2006 to April 2008, presided over the
legal affairs office of integrated management department; held the post of deputy manager of legal affairs office of integrated
management department of China Potevio Co., Ltd. from May 2008 to May 2010; held the post of the manager of legal affairs office
of integrated management department of China Potevio Co., Ltd. from May 2010 to October 2011; and has held the post of general
manager assistant of audit department of China Potevio Co., Ltd. from November 2011 to May 2013; act as deputy GM of Legal
Dept. of Auditing & Supervisory of China Potevio Co., Ltd. from May 2013 to October 2015; acts as legal director of One Earth
Designs in September 2015.
Ms. Tang Li holds concurrent post of supervisor of the Company since May 2012.
Ms. Liu Xiaodong, 44 years old, bachelor degree, major in material management, joined in work in 1995, once acted as an account,
auditor, deputy minister of audit department, and deputy minister of audit and supervision department, held the post of minister of
audit and supervision department of the Company from April 2006 to March 2008, minister of audit department of the Company
since March 2008, and has held the post of deputy secretary of commission of the Company since July 2007.
Ms. Liu Xiaodong serves as a staff supervisor of the Company since May 2009.
Senior Executives:
Mr. Li Linzhen, 44 years old, graduate equivalency, major in international trade, worked in 1995, and has served as labor uion and
league account director of the party work dept. in China Potevio, senior account director of labor union and league, deputy director of
party work dept.; served as deputy chairman of labor union in China Potevio from June 2009 to September 2014; deputy secretary of
Party Committee in China Potevio from March 2011 to September 2014 and serves as deputy GM of the Company since October
2014.
Main responsibilities at present: act GM’s duties; overall chargr of the company’s administrative work.
Mr. Zhang Shenwei, 40 years old, bachelor degree, major in accountancy, joined in work in 1999, once acted as an accountant of
financial and securities department, director of president’s office, minister of integrated management department and general
manager of Nanjing Potevio Information and Technology Co., Ltd., and holds the post of secretary of the Board in the Company
since November 2007; acted as general manager of wiring system department from February 2008 to March 2013; and has held the
post of vice GM of the Company since December 2011.
Main responsibilities at present: Being responsible for the company's investment strategy; being in charge of the investment strategy
department; being access to the headquarters of application industry, intelligent electrical industry, and wireless industry.
Mr. Shi Lian, 43 years old, master degree, major in accountancy, joined in work in 1997, once acted as an accountant and vice
minister of financial and securities department of the Company, and holds the post of minister of financial and securities department
of the Company from May 2003 to April 2014; held the post of vice Chief accountant of the Company from December 2004 to
September 2008; and has held the post of Chief accountant of the Company since September 2008.
Main responsibilities at present: being responsible for the company's financial work; being in charge of financial securities.
Post-holding in shareholder’s unit
√Applicable □ Not applicable
Name Name of shareholder’s unit Position in Start dated of End date of Received
58
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
shareholder’s office term office term remuneration from
unit n shareholder’s unit
(Y/N)
Member of
Xu Qian China Putian Corporation party group, 2009-04-09 N
Deputy GM
Executive
Xu Qian China Potevio 2014-08-05 Y
vice-president
Director,
executive
Director,
Xu Qian China Potevio 2011-05-19 Y
member of
executive
committee
GM,office
Li Tong China Putian Corporation 2015-03-31 N
director
GM of
comprehensiv
Li Tong China Potevio 2015-03-31 Y
e affairs
department
GM of
Han Shu China Potevio Business 2014-09-22 Y
Dept. I
operation
management
senior
Li Ying China Potevio supervisor of 2015-05-01 Y
business
management
department
GM of
Huang
China Potevio Business 2014-09-22 Y
Haodong
Dept. V
Post-holding in other unit
√Applicable □ Not applicable
Received
Position in Start dated of End date of office remuneration
Name Name of other units
other unit n office term term from other unit
(Y/N)
Director,
Xu Qian Beijing Capitel Co., Ltd. 2010-09-22 N
President(lega
59
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
l
representative
)
President(lega
l
Xu Qian Potevio Guomai Networks Ltd. 2012-10-06 N
representative
)
Beijing PuTian TaiLi Telecommunications
Xu Qian President 2015-06-12 N
Technology Co.,Ltd.
Shanghai Putian Youtong Technology Co.,
Xu Qian President 2015-10-15 N
Ltd.
Li Tong Putian Peace Technology Co., Ltd. Director 2013-11-12 N
Li Ying Beijing Capitel Co., Ltd. Director 2008-01-08 N
Li Ying Potevio Guomai Networks Ltd. Director 2012-10-01 N
Li Ying Putian Peace Technology Co., Ltd. Director 2013-11-12 N
Huang Beijing National Engineering Lab. For
Director 2010-06-08 N
Haodong Digital TV Co.,Ltd.
Huang
Putian Peace Technology Co., Ltd. Director 2012-02-07 N
Haodong
Nanjing University of Posts and
Zhang Shunyi Professor 1995-07-15 Y
Telecommunications
Head of an
Zheng Aimei Tianye Tax Agent Office 2006-09-26 Y
institute
Managing
Ding Haiyan Hebei Institute of Communications 2014-03-06 Y
vice president
Tang Di HEYI GROUP legal director 2015-09-08 Y
Putian Yintong information technology Co.,
Tang Di Director 2010-03-24 N
Ltd
Supervisor、
Chairman of
Tang Di Putian Peace Technology Co., Ltd. the 2012-02-07 N
Supervisory
Committee
Supervisor、
Chairman of
Tang Di Hangzhou HONYAR Electrical Co., Ltd. the 2012-10-26 N
Supervisory
Committee
Tang Di Putian international trading Co., Ltd Supervisor 2015-09-01 N
60
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Chairman of
Shanghai Putian Youtong Technology Co., the
Li Linzhen 2015-10-15 N
Ltd. Supervisory
Committee
Li Linzhen Wuhan Putian Power Supply Co., Ltd. Director 2012-10-15 N
Punishment of securities regulatory authority in recent three years to the company’s current and outgoing directors, supervisors and
senior management during the reporting period
□ Applicable √ Not applicable
IV. Remuneration for directors, supervisors and senior executives
Decision-making procedures, recognition basis and payment for directors, supervisors and senior executives
The Company has not paid directors and supervisors, the directors and supervisors get paid as the Company's administrative duties.
The independent directors receive the allowance in the Company, while subsidiary standard is determined by the general meeting of
shareholders. Senior management personnel salary standard and assessment methods are decided by the board of directors.
The Company implements performance salary system on senior management, making evaluation and paying compensation according
to the completion of the production and operation as well as performance of the senior management personnel.
Remuneration for directors, supervisors and senior executives in reporting period
In 10 thousand Yuan
Total Whether
remuneration remuneration
Post-holding
Name Title Sex Age obtained from the obtained from
status
Company (before related party of
taxes) the Company
Director(Chairma Currently in
Xu Qian M 53 Y
n) office
Currently in
Li Tong Director M 45 Y
office
Currently in
Han Shu Director M 52 Y
office
Currently in
Li Ying Director F 49 Y
office
Currently in
Huang Haodong Director M 42 Y
office
Independent Currently in
Zhang Shunyi M 71 5N
director office
Independent Currently in
Zheng Aimei F 68 5N
director office
61
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Independent Currently in
Ding Haiyan M 59 5N
director office
Supervisor
(Chairman of the Currently in
Yang Zhihe M 63 Y
Supervisory office
Committee)
Currently in
Tang Di Supervisor F 39 Y
office
Currently in
Liu Xiaodong Supervisor F 44 24.58 N
office
Currently in
Li Linzhen Deputy GM M 44 31.13 N
office
Deputy GM 、
Currently in
Zhang Shenwei Secretary of the M 40 31.73 N
office
Board
Currently in
Shi Lian Chief Accountant M 43 25.99 N
office
Director(deputy
Wang Hong F 49 office leaving 36.09 N
Chairman), GM
Lu Yongshu Deputy GM M 55 office leaving 23.4 N
Total -- -- -- -- 187.92 --
Delegated equity incentive for directors, supervisors and senior executives in reporting period
□ Applicable √ Not applicable
V. Particulars of workforce
1. Number of staff, professional composition and education background
The number of On-the-job staff of the parent company (people) 724
The number of On-the-job staff of major subsidiaries (people) 943
The total number of On-the-job staff (people) 1,667
Total number of staff receiving remuneration in the current
2,417
period (people)
The number of the retired staff of the parent company and the
461
major subsidiaries bearing the expenses (people)
Professional composition
Category of professional composition Number of professional composition（people）
Production staff 437
Salesman 543
62
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Technical staff 409
Financial staff 44
Administrative staff 161
Logistics service 73
Total 1,667
Education background
Category of education Number（people）
Graduate 47
Undergraduate 645
Junior college 525
Secondary technical school (vocational high school), high school 367
Middle school and below 83
Total 1,667
2. Remuneration policy
The Company promotes a performance-oriented remuneration mechanism, formulate remuneration based on characteristics of the
position, respectively in form of job performance salary, the project commission, sales commission, timing piecework system, and
formulate different performance-evaluation method for different position. Employee’s salary mainly depends on factors of market
price, post coefficient, ability level, contribution and Company’s benefits etc, by means of completing jobs and work performance,
carried out qualitative and quantitative evaluation for salary determined. The Company paid a proportion of social insurance for the
staff pursuit to relevant regulations of the State at the same time.
3. Training programs
Staff training of the Company included new employee orientation training, special personnel training, job-transfer training and
traings for other positions and staff etc.
In 2015, the Company expanded construction of training and promotion channels, to establish overall new model of training and
promotion. Riding on fully utilization of information network channel, it integrated and shared training resources, increased
post-training communication and discussion among trainers, improved professionalism and effectiveness of training, and promoted
further development of internal training. During the year, it continued to carry out youth talent training program, expecting to
develop talent reserve and maintain sustainable development of talents.
4. Labor outsourcing
□ Applicable √ Not applicable
63
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Section IX. Corporate Governance
I. Corporate governance of the Company
By strictly followed requirement of laws, regulations of “Company Law”, “Securities Laws”, “Rules of Corporate Governance for
Listed Company”, “Rules of Stock Listing in Shenzhen Stock Exchange”, and combined with the practical situation of the company,
the Company constantly improve structure of the corporate governance, complete and perfected the internal control system, and
strengthen information disclosure in order to improving the operation standards. By the end of reporting period, the Company's
internal governance structure is perfect, overall generation of the Company is standard-operated, actual condition of the Company
meets the requirements of “Company Law”, “Articles of Association”, other laws, regulations and normative documents.
Is there any difference between the actual condition of corporate governance and relevant regulations about corporate governance for
listed company from CSRC?
□Yes √ No
There are no differences between the actual condition of corporate governance and relevant regulations about corporate governance
for listed company from CSRC.
II. Independency of the Company relative to controlling shareholders’ in aspect of businesses,
personnel, assets, organization and finance
The Company owes self-management ability with independence in aspect of business, personnel, assets, institute and finance relative
to its controlling shareholder.
III. Horizontal competition
□ Applicable √ Not applicable
IV. In the report period, the Company held annual shareholders’ general meeting and
extraordinary shareholders’ general meeting
1. Annual Shareholders’ General Meeting in the report period
Ratio of investor
Session of meeting Type Date Date of disclosure Index of disclosure
participation
“Resolution Notice
of Annual General
Meeting of 2014”
Annual General Annual General No.: 2015-015;
0.02% 2015-06-30 2015-07-01
Meeting of 2014 Meeting Published on: Juchao
Website
(www.cninfo.com.cn
)
）“Resolution Notice
First Extraordinary
Extraordinary of First
Shareholders
Shareholders 0.01% 2015-07-31 2015-08-01 Extraordinary
General Meeting of
General Meeting Shareholders
2015
General Meeting of
64
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
2015” No.:
2015-026;
Published on: Juchao
Website
(www.cninfo.com.cn
)
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √ Not applicable
V. Responsibility performance of independent directors
1. The attending of independent directors to Board meetings and general meeting
The attending of independent directors to Board Meeting
Times of Board
Absent the
meeting Times of Times of
Name of independent Times of Times of Meeting for the
supposed to attending by entrusted
director Presence Absence second time in a
attend in the communication presence
row (Y/N)
report period
Zhang Shunyi 6 2 4 0 0N
Zheng Aimei 6 1 4 1 0N
Ding Haiyan 6 0 4 2 0N
Times for attending general meeting
2
from independent directors
Explanation of absent the Board Meeting for the second time in a row
Not applicable
2. Objection for relevant events from independent directors
Independent directors come up with objection about Company’s relevant matters
□Yes √No
Independent directors has no objections for relevant events in reporting period
3. Other explanation about responsibility performance of independent directors
The opinions from independent directors have been adopted
√ Yes □ No
Explanation on advice that accepted/not accepted from independent directors
During the reporting period, the independent directors performed their duties earnestly according to relevant laws and regulations and
the articles of association, actively participated in the board meetings and general meetings, provided reasonable recommendation on
system improvement and daily operating decisions, paid close attention to the operating standardization, reviewed the self-appraisal
report relating to internal control system, external guarantee, occupation of capital by connected parties, provision for assets
impairment provision, engagement of auditor as well as connected transactions and issued independent directors’ opinions in
connection therewith, which effectively promised fairness and objectiveness of board decisions, protected legal interests of the
65
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Company and minority shareholders as a whole and facilitated standardized operation and healthy development of the Company.
VI. Duty performance of the special committees under the board during the reporting period
During the reporting period, the audit committee under the board of directors held five meetings, for the purpose of reviewing
material resolutions including periodic reports of the Company, engagement of auditor for financial reports, engagement of internal
control auditor, etc, and submitted their opinions to the Board. They performed their duties during the audit for our 2014 annual
report under the relevant provisions of Rules Governing Annual Reports Audit by the Audit Committee, issued audit opinions in
respect of financial statements, communicated with accountants, and urged the accountant firm to complete audit works within the
agreed timetable, summarized audit works done by the auditor and performed their duties as audit committee on a prudent basis.
The remuneration and examination committee under the board of directors reviewed remuneration of directors, supervisors, senior
management as disclosed in the annual report, and issued their reviewing opinions.
VII. Works from Supervisory Committee
The Company has risks in reporting period that found in supervisory activity from supervisory committee
□ Yes √ No
Supervisory committee has no objection about supervision events in reporting period
VIII. Examination and incentives of senior management
The Company exercise performance year-income system for senior executives carries on appraisals and paying remuneration to
senior executives based on operation target and performance of target implementation of senior executives.
IX. Internal Control
1. Details of major defects in IC appraisal report that found in reporting period
□Yes √ No
2. Appraisal Report of Internal Control
Disclosure date of full internal control
2016-03-29
evaluation report
Disclosure index of full internal control “Appraisal report of internal control for year of 2015 of Nanjing Putian
evaluation report Telecommunications Co., Ltd.” published on Juchao Website (www.cninfo.com.cn)
The ratio of the total assets of units
included in the scope of evaluation
accounting for the total assets on the 100.00%
company's consolidated financial
statements
The ratio of the operating income of units
included in the scope of evaluation
accounting for the operating income on the 100.00%
company's consolidated financial
statements
Defects Evaluation Standards
Category Financial Reports Non-financial Reports
66
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Indicators for material defect of internal Indicators for material defect of internal
control in financial report: invalid control control in non-financial report:
environment; fraud by our directors, decision-making procedures lead to
supervisors and senior management, which material faults; lack of system control or
brings significant loss and negative system void for major business, and lack
influences to the Company; external auditor of effective compensation control;
finds material misstatement which is not first serious loss of senior management and
found by the Company; the board of senior technicians; assessment results of
directors or the authorized body and internal internal control, especially material
audit department conduct invalid supervision defects, are not rectified; other situations
over our internal control. Indicators for that would materially and adversely
major defect of internal control in financial affect the Company. Indicators for major
report: not select and apply accounting defect of internal control in non-financial
Qualitative criteria policies under the generally accepted report: decision-making procedures lead
accounting principles; not establish to general fault; defects exist in major
anti-fraud procedures and controlling business systems; serous loss of key
measures; not establish corresponding staff; assessment results of internal
controlling system or not implement control, especially major defects, are not
corresponding compensation control in rectified; other situations that would
connection with accounting for abnormal or relatively materially and adversely affect
special transactions; one or more defects the Company. Indicators for general
exist in control of ending financial reports defect of internal control in non-financial
and there is no assurance that financial report: low efficiency of
statement prepared correspondingly is decision-making procedures; defects
truthful and accurate. General defect: other exist in general business systems; serious
internal control defects that do not constitute loss of general staff; general defects are
material or major defects. not rectified.
Any of the following situations may be
viewed as material defect: potential
misstatement of total profit ≥ 5% of total
profit; potential misstatement of total assets
≥ 1% of total assets; potential misstatement
of operating income ≥ 1% of total operating Major deficiencies: the amount of direct
income. Any of the following situation may property loss is or more than 10 million
be viewed as major defect: potential yuan; Significant deficiencies: the
Quantitative standard misstatement of total profit: 3% of total amount of direct property loss is between
profit ≤ misstatement ＜ 5% of total profit; 5 million and 10 million yuan; Common
potential misstatement of total assets: 0.5% deficiencies: the amount of direct
of total assets ≤ misstatement ＜ 1% of property loss is less than 5 million yuan.
total assets; potential misstatement of
operating income: 0.5% of total operating
income ≤ misstatement ＜ 1% of total
operating income. Any of the following
situation may be viewed as general defect:
67
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
potential misstatement of total profit＜3% of
total profit; potential misstatement of total
assets ＜ 0.5% of total assets; potential
misstatement of operating income ＜ 0.5%
of total operating income.
Amount of significant defects in financial
0
reports
Amount of significant defects in
0
non-financial reports
Amount of important defects in financial
0
reports
Amount of important defects in
0
non-financial reports
X. Auditing report of internal control
√Applicable □ Not applicable
Deliberations in Internal Control Audit Report
We believe that according to relevant regulations and “Basic Norms of Internal Control”, the Company maintained an efficiency
internal control of financial report dated December 31 st 2015, in all material aspects.
Disclosure details of audit report of
Disclosed
internal control
Disclosure date of audit report of
2016-03-29
internal control (full-text)
Index of audit report of internal “Audit report of internal control for year of 2015 of Nanjing Putian Telecommunications Co.,
control (full-text) Ltd.” published on Juchao Website (www.cninfo.com.cn)
Opinion type of auditing report of
Standard unqualified
IC
whether the non-financial report
No
had major defects
Carried out modified opinion for internal control audit report from CPA
□Yes √ No
The internal control audit report, issued by CPA, has concerted opinion with self-evaluation report, issued from the Board
√ Yes □ No
68
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Section X. Financial Report
I. Audit report
Type of audit opinion Standard unqualified
Signing date of audit report 2016-03-25
Name of audit institute Pan-China Certified Public Accountants (LLP)
Name of CPA He Jiangxing, Zhang Liyuan
Text of Report
Auditor’s Report
PCCPAAR[2016]1-59
To the Shareholders of Nanjing Putian Telecommunications Co., Ltd.:
We have audited the accompanying financial statements of Nanjing Putian Telecommunications Co., Ltd. (the
“Company”), which comprise the consolidated and parent company balance sheets as at December 31, 2015, the
consolidated and parent company income statements, the consolidated and parent company cash flow statements,
and the consolidated and parent company statements of changes in equity for the year then ended, as well as notes
to financial statements.
I. Management’s Responsibility for the Financial Statements
The preparation and fair presentation of these financial statements is the responsibility of the Company’s
management. This responsibility includes: (1) preparing and presenting fairly the financial statements in
accordance with China Accounting Standards for Business Enterprises; and (2) designing, implementing and
maintaining internal control relevant to the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
II. Certified Public Accountants’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our
audit in accordance with China Standards on Auditing. Those standards require that we comply with the China
Code of Ethics for Certified Public Accountants and plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the
risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk
assessments, the auditor consider internal control relevant to the Company’s preparation and fair presentation of
the financial statements in order to design appropriate audit procedures. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of accounting estimates made by management,
69
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
III. Audit Opinion
In our opinion, the financial statements present fairly, in all material respects the financial position of the Company
as at December 31, 2015, and of its financial performance and its cash flows for the year then ended in accordance
with China Accounting Standards for Business Enterprises.
Pan-China Certified Public Accountants LLP Certified Public Accountant He Jiangxing
Hangzhou China Certified Public Accountant Zhang Liyuan
Date of Report: March 25, 2016
II. Financial Statement
Units in Notes of Financial Statements is RMB (CNY)
Nanjing Putian Telecommunications Co., Ltd.
Consolidated balance sheet as at December 31, 2015
(Expressed in Renminbi Yuan)
Note
Assets Closing balance Opening balance
No.
Current assets:
Cash and bank balances 1 461,959,184.34 394,586,647.76
Settlement funds
Funds lent
Financial assets at fair value through profit or
loss
Derivative financial assets
Notes receivable 2 32,339,829.72 34,375,641.37
Accounts receivable 3 778,052,456.84 770,808,856.85
Advances paid 4 36,692,329.07 31,630,604.30
Insurance premiums receivable
70
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Cession premiums receivable
Provision of cession receivable
Interest receivable
Dividend receivable 5 1,000,000.00
Other receivables 6 32,234,571.22 32,392,793.23
Buying back the sale of financial assets
Inventories 7 390,501,461.16 455,031,864.93
Assets classified as held-for-sale
Non-current assets due within one year
Other current assets 8 8,738,631.96 9,577,770.69
Total current assets 1,740,518,464.31 1,729,404,179.13
Non-current assets:
Loans and advances paid
Available-for-sale financial assets 9 741,953.00 741,953.00
Held-to-maturity investments
Long-term receivable
Long-term equity investments 10 185,858,240.87 184,932,925.28
Investment property 11 31,076,520.61 32,351,447.02
Fixed assets 12 79,575,268.20 85,925,183.82
Construction in progress 13 26,629,692.29 20,079,624.08
Construction materials
Fixed assets disposal
Biological assets
Oil & gas assets
Intangible assets 14 27,199,062.05 28,150,303.44
Development expenditures
Goodwill
Long-term prepayments 15 2,070,918.32 1,274,592.46
Deferred tax assets
Other non-current assets
Total non-current assets 353,151,655.34 353,456,029.10
Total assets 2,093,670,119.65 2,082,860,208.23
71
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Nanjing Putian Telecommunications Co., Ltd.
Consolidated balance sheet as at December 31, 2015 (continued)
(Expressed in Renminbi Yuan)
Note
Liabilities & Equity Closing balance Opening balance
No.
Current liabilities:
Short-term borrowings 16 458,000,000.00 403,000,000.00
Central bank loans
Absorbing deposit and interbank deposit
Loans from other banks
Financial liabilities at fair value through profit or loss
Derivative financial liabilities
Notes payable 17 110,018,641.90 116,816,997.65
Accounts payable 18 922,132,610.96 920,559,456.30
Advances received 19 73,536,868.93 84,724,425.95
Proceeds from sale of repurchase financial assets
Handling fee and commission payable
Employee benefits payable 20 17,678,666.86 18,693,324.81
Taxes and rates payable 21 8,129,410.05 10,224,153.45
Interest payable 22 586,554.84 691,830.29
Dividend payable 23 7,115,513.38 1,946,045.39
Other payables 24 42,049,885.44 58,841,351.26
Cession premiums payable
Provision of cession reserve
Deposit for agency security transaction
Deposit for agency security underwriting
Liabilities classified as held-for-sale
Non-current liabilities due within one year
Other current liabilities
Total current liabilities 1,639,248,152.36 1,615,497,585.10
Non-current liabilities:
Long-term borrowings
72
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Bonds payable
preferred shares
Sustainable debt
Long-term payables 25 80,118.00 80,118.00
Long-term employee benefits payable
Special payables
Provisions
Deferred income 26 1,525,537.98
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 1,605,655.98 80,118.00
Total liabilities 1,640,853,808.34 1,615,577,703.10
Equity:
Share capital/Paid-in capital 27 215,000,000.00 215,000,000.00
Other equity instruments
preferred shares
Sustainable debt
Capital reserve 28 185,374,533.85 185,374,533.85
Less: treasury shares
Other comprehensive income 29 -4,223,184.69 -3,318,496.10
Special reserve
Surplus reserve 30 589,559.77 589,559.77
General risk reserve
Undistributed profit 31 -50,056,514.64 -33,465,684.38
Total equity attributable to the parent company 346,684,394.29 364,179,913.14
Non-controlling interest 106,131,917.02 103,102,591.99
Total equity 452,816,311.31 467,282,505.13
Total liabilities & equity 2,093,670,119.65 2,082,860,208.23
73
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Nanjing Putian Telecommunications Co., Ltd.
Parent company balance sheet as at December 31, 2015
(Expressed in Renminbi Yuan)
Assets Note No. Closing balance Opening balance
Current assets:
Cash and bank balances 211,695,287.97 184,370,348.86
Financial assets at fair value through profit or loss
Derivative financial assets
Notes receivable 5,662,078.50 17,384,160.90
Accounts receivable 1 425,991,743.86 447,307,478.27
Advances paid 18,699,725.04 14,363,554.54
Interest receivable
Dividend receivable 1,000,000.00
Other receivables 2 38,064,365.03 27,627,713.81
Inventories 205,855,446.34 220,138,759.05
Assets classified as held-for-sale
Non-current assets due within one year
Other current assets 2,413.04 25,588.19
Total current assets 905,971,059.78 912,217,603.62
Non-current assets:
Available-for-sale financial assets 741,953.00 741,953.00
Held-to-maturity investments
Long-term receivable
Long-term equity investments 3 355,124,586.01 353,997,743.21
Investment property
Fixed assets 23,878,833.23 25,901,856.49
Construction in progress 26,529,692.29 19,883,806.87
Construction materials
Fixed assets disposal
Biological assets
Oil & gas assets
74
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Intangible assets 8,254,244.95 8,798,271.64
Development expenditures
Goodwill
Long-term prepayments 1,671,454.32 1,274,592.46
Deferred tax assets
Other non-current assets
Total non-current assets 416,200,763.80 410,598,223.67
Total assets 1,322,171,823.58 1,322,815,827.29
Nanjing Putian Telecommunications Co., Ltd.
Parent company balance sheet as at December 31, 2015 (continued)
(Expressed in Renminbi Yuan)
Liabilities & Equity Note No. Closing balance Opening balance
Current liabilities:
Short-term borrowings 346,000,000.00 326,000,000.00
Financial liabilities at fair value through
profit or loss
Derivative financial liabilities
Notes payable 94,018,641.90 96,816,997.65
Accounts payable 491,366,632.18 448,950,237.16
Advances received 22,674,489.02 28,480,537.31
Employee benefits payable 6,333,680.57 7,530,723.41
Taxes and rates payable 1,360,211.09 122,888.33
Interest payable 410,251.36 558,219.18
Dividend payable
Other payables 173,240,989.14 193,500,982.32
Liabilities classified as held-for-sale
Non-current liabilities due within one year
Other current liabilities
Total current liabilities 1,135,404,895.26 1,101,960,585.36
Non-current liabilities:
Long-term borrowings
preferred shares
Sustainable debt
75
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Bonds payable
Long-term payables 80,118.00 80,118.00
Long-term employee benefits payable
Special payables
Provisions
Deferred income 1,525,537.98
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 1,605,655.98 80,118.00
Total liabilities 1,137,010,551.24 1,102,040,703.36
Equity:
Share capital/Paid-in capital 215,000,000.00 215,000,000.00
Other equity instruments
preferred shares
Sustainable debt
Capital reserve 172,417,299.81 172,417,299.81
Less: treasury shares
Other comprehensive income
Special reserve
Surplus reserve 589,559.76 589,559.76
Undistributed profit -202,845,587.23 -167,231,735.64
Total equity 185,161,272.34 220,775,123.93
Total liabilities & equity 1,322,171,823.58 1,322,815,827.29
76
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Nanjing Putian Telecommunications Co., Ltd.
Consolidated income statement for the year ending December 31, 2015
(Expressed in Renminbi Yuan)
Note Current period Preceding period
Items
No. cumulative comparative
I. Total operating revenue 1,893,212,218.81 2,293,340,939.99
Including: operating revenue 1 1,893,212,218.81 2,293,340,939.99
Interest proceeds
Premium earned
Revenue from handling charges and commission
II. Total operating cost 1,904,480,542.17 2,296,229,787.27
Including: operating cost 1 1,552,075,648.72 1,933,236,668.23
Interest expenses
Handling charges and commission expenditures
Surrender value
Net payment of insurance claims
Net provision of insurance reserve
Premium bonus expenditures
Reinsurance expenses
Taxes & surcharge for operations 2 10,015,788.56 8,595,448.80
Selling expenses 3 168,540,825.93 171,178,560.06
Administrative expenses 4 144,528,865.31 139,587,907.98
Financial expense 5 26,967,451.32 33,425,667.22
Assets impairment loss 6 2,351,962.33 10,205,534.98
Add: gains on changes of fair value(or less: losses)
Investment income (or less: losses) 7 1,593,083.59 4,533,601.95
Including: investment income from associates and joint ventures 1,593,083.59 1,082,078.12
Gains on foreign exchange (or less: losses)
III. Operating profit (or less: losses) -9,675,239.77 1,644,754.67
Add: Non-operating revenue 8 20,026,710.24 7,452,836.21
Including: Gains on disposal of non-current assets 154,861.95 191,589.32
77
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Less: Non-operating expenditures 9 243,655.59 951,652.57
Including: losses on disposal of fixed assets 62,316.08 125,998.81
IV. Profit before tax (or less: total loss) 10,107,814.88 8,145,938.31
Less: income tax 10 14,895,499.16 16,670,494.96
V.Net profit (or less: net loss) -4,787,684.28 -8,524,556.65
Net profit attributable to owners of parent company -16,590,830.26 -18,976,543.88
Non-controlling interest income 11,803,145.98 10,451,987.23
VI. Other comprehensive income after tax 11 -1,005,209.54 -54,063.20
Items after tax of other comprehensive income attributable to
-904,688.59 -54,063.20
owners of parent company
(I) Not reclassified subsequently to profit or loss
Including: Changes in remeasurement on the net defined benefit
liability/asset
Items attributable to investees under equity method that will not
reclassified to profit or loss
(II) To be reclassified subsequently to profit or loss -904,688.59 -54,063.20
Including: Items attributable to investees under equity method that
may be reclassified to profit or loss
Profit or loss from changes in fair value of available-for-sale
financial assets
Profit or loss from reclassification of held-to-maturity investments
as available-for-sale assets
Profit or loss on cash flow hedging
Translation difference of financial statements in foreign currencies -904,688.59 -54,063.20
Others
Items after tax of other comprehensive income attibutable to
-100,520.95
non-controlling interest
VII. Total comprehensive income -5,792,893.82 -8,578,619.85
Including: Items attributable to owners of parent company -17,495,518.85 -19,030,607.08
Items attributable to non-controlling interest 11,702,625.03 10,451,987.23
VIII. Earnings per share:
(I) Basic EPS -0.08 -0.09
(II) Diluted EPS -0.08 -0.09
78
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Nanjing Putian Telecommunications Co., Ltd.
Parent company income statement for the year ending December 31, 2015
(Expressed in Renminbi Yuan)
Current period Preceding period
Items Note No.
cumulative comparative
I. Operating revenue 1 819,551,333.14 1,152,701,958.64
Less: Operating cost 1 717,293,400.01 1,036,861,031.28
Taxes & surcharge for operations 3,117,480.23 2,542,897.38
Selling expenses 76,318,694.64 80,591,498.00
Administrative expenses 56,323,549.14 59,410,423.07
Financial expense 23,763,960.64 29,489,696.96
Assets impairment loss 815,641.00 10,110,081.45
Add: Gain on changes of fair value (or less:
losses)
Investment income (or less: losses) 2 8,761,310.80 6,367,089.38
Including: investment income from associates
1,434,610.80 865,629.69
and joint ventures
II. Operating profit(or less: losses) -49,320,081.72 -59,936,580.12
Add: Non-operating revenue 13,747,649.06 2,467,578.35
Including: Gains on disposal of non-current
980.58 19,452.18
assets
Less: Non-operating expenditures 41,418.93 636,256.22
Including: losses on disposal of non-current
24,591.47 81,261.54
assets
III. Profit before tax (or less: total loss) -35,613,851.59 -58,105,257.99
Less: income tax
IV. Net profit (or less: net loss) -35,613,851.59 -58,105,257.99
V. Other comprehensive income after tax
(I) Not reclassified subsequently to profit or loss
Including: Changes in remeasurement on the net
defined benefit liability/asset
Items attributable to investees under equity
method that will not reclassified to profit or
loss
(II) To be reclassified subsequently to profit or
loss
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Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Including: Items attributable to investees under
equity method that may be reclassified to
profit or loss
Profit or loss from changes in fair value of
available-for-sale financial assets
Profit or loss from reclassification of
held-to-maturity investments as
available-for-sale assets
Profit or loss on cash flow hedging
Translation difference of financial statements in
foreign currencies
Others
VI. Total comprehensive income -35,613,851.59 -58,105,257.99
VII. Earnings per share:
(I) Basic EPS -0.17 -0.27
(II) Diluted EPS -0.17 -0.27
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Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Nanjing Putian Telecommunications Co., Ltd.
Consolidated cash flow statement for the year ending December 31, 2015
(Expressed in Renminbi Yuan)
Note Current period Preceding period
Items
No. cumulative comparative
I.Cash flows from operating activities:
Cash receipts from sale of goods or rendering of services 2,370,733,498.01 2,690,862,319.01
Net increase of client deposit and interbank deposit
Net increase of central bank loans
Net increase of loans from other financial institutions
Cash receipts of original insurance contract premium
Net cash receipts from reinsurance
Net increase of policy-holder deposit and investment
Net increase of trading financial assets disposal
Cash receipts from interest, handling charges and commission
Net increase of loans from others
Net increase of repurchase
Receipts of tax refund 5,506,480.35 4,563,264.16
Other cash receipts related to operating activities 1 71,132,187.05 85,746,493.91
Subtotal of cash inflows from operating activities 2,447,372,165.41 2,781,172,077.08
Cash payments for goods purchased and services received 1,866,239,404.44 2,182,016,079.71
Net increase of loans and advances to clients
Net increase of central bank deposit and interbank deposit
Cash payment of insurance indemnities of original insurance contracts
Cash payment of interest, handling charges and commission
Cash payment of policy bonus
Cash paid to and on behalf of employees 247,543,580.13 228,730,174.80
Cash payments of taxes and rates 101,308,383.50 97,678,805.73
Other cash payments related to operating activities 2 216,308,368.71 201,727,980.51
Subtotal cash outflows from operating activities 2,431,399,736.78 2,710,153,040.75
Net cash flows from operating activities 15,972,428.63 71,019,036.33
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Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
II. Cash flows from investing activities:
Cash received from return of investments 11,272,828.61
Cash received from return on investments 1,307,768.00 297,840.00
Net cash received from the disposal of fixed assets, intangible assets 169,729.74 550,284.34
and other long-term assets
Net cash received from the disposal of subsidiaries & other business
units
Other cash receipts related to investing activities 3 3,593,903.04
Subtotal of cash inflows from investing activities 1,477,497.74 15,714,855.99
Cash paid for acquiring fixed assets, intangible assets and other 6,671,958.27 7,726,537.43
long-term assets
Cash paid for acquiring investments
Net increase of pledged loans
Net cash paid for acquiring subsidiaries & other business units
Other cash payments related to investing activities
Subtotal of cash outflows from investing activities 6,671,958.27 7,726,537.43
Net cash flows from investing activities -5,194,460.53 7,988,318.56
III. Cash flows from financing activities:
Cash received from investment by others
Including: cash received by subsidiaries from non-controlling owners
Cash received from borrowings 481,000,000.00 443,000,000.00
Cash received from issuing of bonds
Other cash receipts related to financing activities
Subtotal of cash inflows from financing activities 481,000,000.00 443,000,000.00
Cash repayments of borrowings 426,000,000.00 505,100,000.00
Cash paid for distribution of dividends or profits and for interest 35,338,879.15 43,505,232.92
expenses
Including: cash paid for distribution of dividends or profits by 3,503,832.01 5,673,300.00
subsidiaries to minority owners
Other cash payments related to financing activities
Subtotal of cash outflows from financing activities 461,338,879.15 548,605,232.92
Net cash flows from financing activities 19,661,120.85 -105,605,232.92
IV. Effect of foreign exchange rate changes on cash & cash equivalents 108,914.79 -66,907.28
V. Net increase in cash and cash equivalents 30,548,003.74 -26,664,785.31
Add: Opening balance of cash and cash equivalents 375,372,939.94 402,037,725.25
VI. Closing balance of cash and cash equivalents 405,920,943.68 375,372,939.94
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Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Nanjing Putian Telecommunications Co., Ltd.
Parent company cash flow statement for the year ending December 31, 2015
(Expressed in Renminbi Yuan)
Note Current period Preceding period
Items
No. cumulative comparative
I. Cash flows from operating activities:
Cash receipts from sale of goods and rendering of services 1,085,686,381.89 1,371,580,800.33
Receipts of tax refund 110,575.42
Other cash receipts related to operating activities 16,871,762.95 107,448,123.19
Subtotal of cash inflow from operating activities 1,102,558,144.84 1,479,139,498.94
Cash payments for goods purchased and services received 853,270,505.50 1,254,773,272.85
Cash payments to and on behalf of employees 109,277,347.22 112,328,925.24
Cash payments of taxes and rates 26,391,910.59 22,761,087.12
Other cash payments related to operating activities 103,096,303.86 74,823,434.11
Subtotal of cash outflows from operating activities 1,092,036,067.17 1,464,686,719.32
Net cash flows from operating activities 10,522,077.67 14,452,779.62
II. Cash flows from investing activities:
Cash received from return of investments 11,272,828.61
Cash received from investments gains 8,634,468.00 5,624,540.00
Net cash receipts from disposals of fixed assets, intangible assets and
12,288.66 31,873.89
other long-term assets
Net cash receipts from disposals of subsidiaries and other business units
Other cash receipts related to investing activities
Subtotal of cash inflow from investing activities 8,646,756.66 16,929,242.50
Cash payments to acquire fixed assets, intangible assets and other
5,205,584.54 5,233,176.13
long-term assets
Cash payments to acquire investments
Net cash payments for acquisitions of subsidiaries and other business
units
Other cash payments related to investing activities
Subtotal of cash outflows from investing activities 5,205,584.54 5,233,176.13
Net cash flows from investing activities 3,441,172.12 11,696,066.37
III. Cash flows from financing activities:
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Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Cash receipts from investment by others
Cash receipts from borrowings 346,000,000.00 346,000,000.00
Other cash receipts related to financing activities
Subtotal of cash inflows from financing activities 346,000,000.00 346,000,000.00
Cash repayments of borrowings 326,000,000.00 376,000,000.00
Cash payments for distribution of dividends or profit or interest expenses 25,462,036.78 29,704,456.90
Other cash payments related to financing activities
Subtotal of cash outflows from financing activities 351,462,036.78 405,704,456.90
Net cash flows from financing activities -5,462,036.78 -59,704,456.90
IV. Effect of foreign exchange rate changes on cash and cash equivalents 98,127.82 -63,388.29
V. Net increase in cash and cash equivalents 8,599,340.83 -33,618,999.20
Add: Opening balance of cash and cash equivalents 184,370,348.86 217,989,348.06
VI. Closing balance of cash and cash equivalents 192,969,689.69 184,370,348.86
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Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Nanjing Putian Telecommunications Co., Ltd.
Consolidated statement of changes in equity for the year ending December 31, 2015
(Expressed in Renminbi Yuan)
Current period cumulative
Equity attributable to parent company
Items Non-controll
Other equity instruments Other General
Share capital Capital Less: Special Surplus Undistributed Others ing Total equity
/Paid-in comprehensive risk interest
preferred Sustainable reserve treasury shares reserve reserve profit
capital Others income reserve
shares debt
I. Balance at the end of prior year 215,000,000.00 - - - 185,374,533.85 - -3,318,496.10 - 589,559.77 - -33,465,684.38 467,282,505.13
103,102,591.99
Add: cumulative changes of accounting
-
policies
Error correction of prior period -
Business combination under common
-
control
Others -
II. Balance at the beginning of current year 215,000,000.00 - - - 185,374,533.85 - -3,318,496.10 - 589,559.77 - -33,465,684.38 467,282,505.13
103,102,591.99
III. Current period increase (or less:
- - - - - - -904,688.59 - - - -16,590,830.26 3,029,325.03 -14,466,193.82
decrease)
(I) Other comprehensive income -904,688.59 -16,590,830.26 11,702,625.03 -5,792,893.82
(II) Capital contributed or withdrew by
- - - - - - - - - - -
owners
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Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
1. Capital contributed by owners -
2. Capital contributed by other equity
-
instruments’ owners
3. Amount of share-based payment included
-
in equity
4. Others
(III) Profit distribution - - - - - - - - - - - -8,673,300.00 -8,673,300.00
1. Appropriation of surplus reserve -
2. Appropriation of general risk reserve -
3. Appropriation of profit to owners -8,673,300.00 -8,673,300.00
4. Others -
(IV) Internal carry-over within equity -
1.Transfer of capital reserve to capital -
2.Transfer of surplus reserve to capital -
3.Surplus reserve to cover losses -
4.Others -
(V) Special reserve -
1. Appropriation of current period -
2. Application of current period -
(VI) Others -
IV. Balance at the end of current period 215,000,000.00 - - - 185,374,533.85 - -4,223,184.69 - 589,559.77 - -50,056,514.64 452,816,311.31
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Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
106,131,917.02
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Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Nanjing Putian Telecommunications Co., Ltd.
Consolidated statement of changes in equity for the year ending December 31, 2015 (continued)
(Expressed in Renminbi Yuan)
Preceding period cumulative
Equity attributable to parent company
Items Non-controll
Other equity instruments Other General
Share capital Capital Less: Special Surplus Undistributed ing Total equity
comprehensive risk Other
/Paid-in preferred Sustainable reserve interest
reserve treasury shares income reserve profit s
capital Others reserve
shares debt
I. Balance at the end of prior year 215,000,000.00 185,374,533.85 -3,264,432.90 589,559.77 -14,489,140.50 85,253,562.95 468,464,083.17
Add: cumulative changes of accounting
policies
Error correction of prior period
Business combination under common
control
Others
II. Balance at the beginning of current year 215,000,000.00 185,374,533.85 -3,264,432.90 589,559.77 -14,489,140.50 85,253,562.95 468,464,083.17
III. Current period increase (or less:
- - - - - - -54,063.20 - - - -18,976,543.88 17,849,029.04 -1,181,578.04
decrease)
(I) Other comprehensive income -54,063.20 - - - -18,976,543.88 10,451,987.23 -8,578,619.85
(II) Capital contributed or withdrew by
13,070,341.81 13,070,341.81
owners
1. Capital contributed by owners
2. Capital contributed by other equity
instruments’ owners
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Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
3. Amount of share-based payment included
in equity
4. Others 13,070,341.81 13,070,341.81
(III) Profit distribution - - - - - - - - - - - -5,673,300.00 -5,673,300.00
1. Appropriation of surplus reserve
2. Appropriation of general risk reserve
3. Appropriation of profit to owners -5,673,300.00 -5,673,300.00
4. Others
(IV) Internal carry-over within equity
1.Transfer of capital reserve to capital
2.Transfer of surplus reserve to capital
3.Surplus reserve to cover losses
4.Others
(V) Special reserve
1. Appropriation of current period
2. Application of current period
(VI) Others
IV. Balance at the end of current period 215,000,000.00 - - - 185,374,533.85 - -3,318,496.10 - 589,559.77 - -33,465,684.38 103,102,591.99 467,282,505.13
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Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Nanjing Putian Telecommunications Co., Ltd.
Parent company statement of changes in equity for the year ending December 31, 2015
(Expressed in Renminbi Yuan)
Current period cumulative
Other equity instruments Other
Items Share capital Capital Less: Surplus Undistributed
/Paid-in comprehensive Special reserve Total equity
preferred Sustainable reserve treasury shares reserve profit
capital Others income
shares debt
I. Balance at the end of prior year 215,000,000.00 172,417,299.81 589,559.76 -167,231,735.64 220,775,123.93
Add: cumulative changes of accounting policies
Error correction of prior period
Others
II. Balance at the beginning of current year 215,000,000.00 172,417,299.81 589,559.76 -167,231,735.64 220,775,123.93
III. Current period increase (or less: decrease) -35,613,851.59 -35,613,851.59
(I) Other comprehensive income -35,613,851.59 -35,613,851.59
(II) Capital contributed or withdrew by owners
1. Capital contributed by owners
2. Capital contributed by other equity instruments’
owners
3. Amount of share-based payment included in equity
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Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
4. Others
(III) Profit distribution
1. Appropriation of surplus reserve
2. Appropriation of profit to owners
3. Others
(IV) Internal carry-over within equity
1.Transfer of capital reserve to capital
2.Transfer of surplus reserve to capital
3.Surplus reserve to cover losses
4.Others
(V) Special reserve
1. Appropriation of current period
2. Application of current period
(VI) Others
IV. Balance at the end of current period 215,000,000.00 - - - 172,417,299.81 - - - 589,559.76 -202,845,587.23 185,161,272.34
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Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Nanjing Putian Telecommunications Co., Ltd.
Parent company statement of changes in equity for the year ending December 31, 2015(continued)
(Expressed in Renminbi Yuan)
Preceding period cumulative
Other equity instruments Other
Items Share capital Capital Less: Surplus Undistributed
/Paid-in comprehensive Special reserve Total equity
preferred Sustainable reserve treasury shares reserve profit
capital Others income
shares debt
I. Balance at the end of prior year 215,000,000.00 172,417,299.81 589,559.76 -109,126,477.65 278,880,381.92
Add: cumulative changes of accounting policies
Error correction of prior period
Others
II. Balance at the beginning of current year 215,000,000.00 172,417,299.81 589,559.76 -109,126,477.65 278,880,381.92
III. Current period increase (or less: decrease) -58,105,257.99 -58,105,257.99
(I) Other comprehensive income -58,105,257.99 -58,105,257.99
(II) Capital contributed or withdrew by owners
1. Capital contributed by owners
2. Capital contributed by other equity instruments’
owners
3. Amount of share-based payment included in
equity
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Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
4. Others
(III) Profit distribution
1. Appropriation of surplus reserve
2. Appropriation of profit to owners
3. Others
(IV) Internal carry-over within equity
1.Transfer of capital reserve to capital
2.Transfer of surplus reserve to capital
3.Surplus reserve to cover losses
4.Others
(V) Special reserve
1. Appropriation of current period
2. Application of current period
(VI) Others
IV. Balance at the end of current period 215,000,000.00 172,417,299.81 589,559.76 -167,231,735.64 220,775,123.93
Li Linzhen Shi Lian Qiu Huizhen
[Name] [Name] [Name]
[Principal of the Company] [Officer in charge of accounting] [Head of accounting department]
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Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
(Signature and stamp) (Signature and stamp) (Signature and stamp)
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Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
For the year ended December 31, 2015
Monetary unit: RMB Yuan
I. Company profile
Nanjing Putian Telecommunications Co., Ltd. (the “Company”) is the original Nanjing Telecommunication Facility Factory. It was
established as a limited company by raising money which is approved by National Economic Institutional Reform Commission
with its TGS (1997) No. 28 issued on 21 March 1997. The Company was listed in Shenzhen Stock Exchange on 22 May 1997. The
Company’s registration address is No. 1 Putian Road, Qinhuai District Nanjing, Jiangsu Province. The Company acquired a corporate
business license numbered 320000400000500, with registered capital of 215,000,000.00 yuan, total share of 215,000,000.00 shares
(each with par value of one yuan).
The Company belongs to telecommunication equipment manufacture industry and is mainly engaged in researching and
manufacturing the data, wire and wireless telecommunication equipment, distribution and allocation of layout of telecommunication
product, and in researching and manufacturing media computer, digital television and vehicle electronics. The research and sale of
video conference system with providing the related after-sales service ,including installation, maintenance and repairmen of
equipment. The design of telecommunication information net project and computer information systematic project, and provision of
related system combination and related consultancy service also are included in the Company’s business scope.
The financial report has been deliberated and approved by the 30th meeting of the 6th session of the Board of Directors
on 25 March 2016.
The Company's ‘corporation principles’ regulates that the general manager of the Company should be appointed as the
legal representative of the Company. The general manager of the Company – Wang Hong resigned her position in July
2015 which was agreed by the board of directors, and the board appointed deputy general manager – Li Linzhen to act
as the general manager during the period of the job vacancy, so the financial statements for this period were signed by
Li Linzhen.
The Company has brought 11 subsidiaries including Nanjing South Telecommunications Company Limited, Nanjing Putian
Intelligent Building Ltd. and Nanjing Mennekes Electrics Co., Ltd. etc. into the consolidated scope. Please refer to notes to changes
in the consolidated scope and equity in other entities for details.
II. Preparation basis of the financial statements
(I) Preparation basis
The financial statements have been prepared on the basis of going concern.
(II) Assessment of the ability to continue as a going concern
The Company has no events or conditions that may cast significant doubts upon the Company’s ability to continue as a going concern
within the 12 months after the balance sheet date.
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Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
III. Significant accounting policies and estimates
(I) Statement of compliance
The financial statements have been prepared in accordance with the requirements of China Accounting Standards for Business
Enterprises (CASBEs), and present truly and completely the financial position, results of operations and cash flows of the Company.
(II) Accounting period
The accounting year of the Company runs from January 1 to December 31 under the Gregorian calendar.
(III) Operating cycle
The Company has a relatively short operating cycle for its business, an asset or a liability is classified as current if it is expected to be
realized or due within 12 months.
(IV) Functional currency
The Company’s functional currency is Renminbi (RMB) Yuan.
(V) Accounting treatments of business combination under and not under common control
1. Accounting treatment of business combination under common control
Assets and liabilities arising from business combination are measured at carrying amount of the combined party included in the
consolidated financial statements of the ultimate controlling party at the combination date. Difference between carrying amount of
the equity of the combined party included in the consolidated financial statements of the ultimate controlling party and that of the
combination consideration or total par value of shares issued is adjusted to capital reserve, if the balance of capital reserve is
insufficient to offset, any excess is adjusted to retained earnings.
2. Accounting treatment of business combination not under common control
When combination cost is in excess of the fair value of identifiable net assets obtained from the acquiree at the acquisition date, the
excess is recognized as goodwill; otherwise, the fair value of identifiable assets, liabilities and contingent liabilities, and the
measurement of the combination cost are reviewed, then the difference is recognized in profit or loss.
(VI) Compilation method of consolidated financial statements
The parent company brings all its controlled subsidiaries into its consolidation scope. The consolidated financial
statements are compiled by the parent company according to “CASBE 33 - Consolidated Financial Statements”, based
on relevant information and the financial statements of the parent company and its subsidiaries.
(VII) Classification of joint arrangements and accounting treatment of joint operations
1. Joint arrangements include joint operations and joint ventures.
2. When the Company is a joint operator of a joint operation, it recognizes in relation to its interest in a joint operation:
(1) its assets, including its share of any assets held jointly;
(2) its liabilities, including its share of any liabilities incurred jointly;
(3) its revenue from the sale of its share of the output arising from the joint operation;
(4) its share of the revenue from the sales of the output by the joint operation; and
(5) its expenses, including its share of any expenses incurred jointly.
(VIII) Recognition criteria of cash and cash equivalents
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Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Cash as presented in cash flow statement refers to cash on hand and deposit on demand for payment. Cash equivalents
refer to short-term, highly liquid investments that can be readily converted to cash and that are subject to an
insignificant risk of changes in value.
(IX) Foreign currency translation
1. Translation of transactions denominated in foreign currency
Transactions denominated in foreign currency are translated into RMB yuan at the spot exchange rate at the transaction
date at initial recognition. At the balance sheet date, monetary items denominated in foreign currency are translated at
the spot exchange rate at the balance sheet date with difference, except for those arising from the principal and interest
of exclusive borrowings eligible for capitalization, included in profit or loss; non-cash items carried at historical costs
are translated at the spot exchange rate at the transaction date, with its RMB amount unchanged; non-cash items carried
at fair value in foreign currency are translated at the spot exchange rate at the date when the fair value was determined,
with difference included in profit or loss or other comprehensive income.
2. Translation of financial statements measured in foreign currency
The assets and liabilities in the balance sheet are translated into RMB at the spot rate at the balance sheet date; the
equity items, other than undistributed profit, are translated at the spot rate at the transaction date; the revenues and
expenses in the income statement are translated into RMB at the approximate exchange rate similar to the
systematically and rationally determined spot exchange rate at the transaction date. The difference arising from foreign
currency translation is included in other comprehensive income.
(X) Financial instruments
1. Classification of financial assets and financial liabilities
Financial assets are classified into the following four categories when initially recognized: financial assets at fair value
through profit or loss (including held-for-trading financial assets and financial assets designated at initial recognition as
at fair value through profit or loss), held-to-maturity investments, loans and receivables, and available-for-sale financial
assets.
Financial liabilities are classified into the following two categories when initially recognized: financial liabilities at fair
value through profit or loss (including held-for-trading financial liabilities and financial liabilities designated at initial
recognition as at fair value through profit or loss), and other financial liabilities.
2. Recognition criteria, measurement method and derecognition condition of financial assets and financial liabilities
When the Company becomes a party to a financial instrument, it is recognized as a financial asset or financial liability.
The financial assets and financial liabilities initially recognized by the Company are measured at fair value; for the
financial assets and liabilities at fair value through profit or loss, the transaction expenses thereof are directly included
in profit or loss; for other categories of financial assets and financial liabilities, the transaction expenses thereof are
included into the initially recognized amount.
The Company measures its financial assets at fair value subsequent to initial recognition, and does not deduct the
transaction expenses that may occur when it disposes of the said financial asset in the future. However, those under the
following circumstances are excluded: (1) the held-to-maturity investments, loans and receivables are measured at
amortized costs using effective interest method; (2) the equity instrument investments for which there is no quotation in
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Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
the active market and whose fair value cannot be measured reliably, and the derivative financial assets which are
connected with the said equity instrument and must be settled by the delivery of the said equity instrument are measured
at their costs.
The Company measures its financial liabilities at the amortized costs using effective interest method, with the exception
of those under the following circumstances: (1) for the financial liabilities at fair value through profit or loss, they are
measured at fair value, and none of the transaction expenses may be deducted, which may occur when the financial
liabilities are settled in the future; (2) for the derivative financial liabilities, which are connected to the equity
instrument for which there is no quotation in the active market and whose fair value cannot be reliably measured, and
which must be settled by the delivery of the equity instrument, they are measured at their costs; (3) for the financial
guarantee contracts which are not designated as a financial liability at fair value through profit or loss, and for the
commitments to grant loans which are not designated as at fair value through profit or loss and which will enjoy an
interest rate lower than that of the market, they are measured subsequent to initial recognition at the higher of the
following two items 1) The amount as determined according to “CASBE13 - Contingencies”; 2) the surplus after
accumulative amortization as determined according to “CASBE14 - Revenues”.
The gains or losses arising from changes in fair value of financial assets or financial liabilities, if not related to hedging,
are measured with the following methods: (1) Gains or losses, arising from the changes in fair value of financial asset or
liability at its fair value through profit or loss, is included in gains or losses on changes in fair value; interests or cash
dividends gained during the asset-holding period are recognized as investment income; when disposing of the assets,
investment income is recognized at the difference between the actual amount received and the initial recorded amount,
at the same time, gains or losses on changes in fair value are adjusted accordingly. (2) For available-for-sale financial
asset, changes in fair value are recorded as other comprehensive income during the holding period, interests measured at
effective interest method are recorded as investment income; cash dividends from available-for-sale equity instrument
investment are recognized as investment income at the date of dividend declaration; when disposing of the assets,
investment income is recognized at the difference between the actual amount received and the book value deducting the
accumulative amount of changes in fair value originally included in other comprehensive.
Financial assets are derecognized when the contractual rights for collecting the cash flow of the said financial assets expire or
substantially all risks and rewards related to the said financial assets have been transferred. Only when the underlying present
obligations of a financial liability are relieved totally or partly may the financial liability be derecognized accordingly.
3. Recognition criteria and measurement method of financial assets transfer
Where the Company has transferred substantially all of the risks and rewards related to the ownership of the financial
asset to the transferee, it derecognizes the financial asset. If it retained substantially all of the risks and rewards related
to the ownership of the financial asset, it continues recognizing the financial asset, and the consideration received is
recognized as a financial liability. Where the Company does not transfer or retain substantially all of the risks and
rewards related to the ownership of a financial asset, it is dealt with according to the circumstances as follows
respectively: (1) if the Company gives up its control over the financial asset, it derecognizes the financial asset; (2) if
the Company does not give up its control over the financial asset, according to the extent of its continuing involvement
in the transferred financial asset, it recognizes the related financial asset and recognizes the relevant liability
accordingly.
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Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
If the transfer of an entire financial asset satisfies the conditions for derecognition, the difference between the amounts
of the following two items are included in profit or loss: (1) the book value of the transferred financial asset; (2) the sum
of consideration received from the transfer, and the accumulative amount of the changes of the fair value originally
included in equity. If the transfer of financial asset partially satisfies the conditions to derecognition, the entire book
value of the transferred financial asset is, between the portion which is derecognized and the portion which is not,
apportioned according to their respective relative fair value, and the difference between the amounts of the following
two items are included into profit or loss: (1) the book value of the portion which is derecognized; (2) the sum of
consideration of the portion which is derecognized, and the portion of the accumulative amount of the changes in the
fair value originally included in equity which is corresponding to the portion which is derecognized.
4. Fair value determination method of financial assets and liabilities
The Company use valuation techniques that are appropriate in the circumstances and for which sufficient data are available to
measure fair value. The inputs to valuation techniques used to measure fair value are arranged in the following hierarchy and used
accordingly:
(1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at the
measurement date.
(2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly or indirectly. Level 2 inputs include: quoted prices for similar assets or liabilities in active markets; quoted prices for
identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset
or liability, for example, interest rates and yield curves observable at commonly quoted intervals; market-corroborated inputs;
(3) Level 3 inputs are unobservable inputs for the asset or liability. Level 3 inputs include interest rate that is not observable and
cannot be corroborated by observable market data at commonly quoted intervals, historical volatility, future cash flows to be paid to
fulfill the disposal obligation assumed in business combination, and financial forecast developed using the Company’s own data, etc.
5. Impairment test and provision for impairment loss of financial assets
(1) An impairment test is carried out at the balance sheet date on the financial assets other than those at fair value
through profit or loss, and provisions for impairment loss should be made if there is objective evidence indicating
impairment loss.
(2) An impairment test is made on an individual basis on financial assets of individually significant amount; with regard
to the financial assets of individually insignificant amount, they may be included in a portfolio of financial assets with
similar credit risk features so as to carry out an impairment-related test; where, upon the impairment test on an
individual basis, the financial asset (including those financial assets of individually significant amount and of
individually insignificant amount) in not impaired, it is included in a portfolio of financial assets with similar credit risk
features so as to conduct further impairment test.
(3) Available-for-sale financial assets
1) Objective evidence indicating that available-for-sale debt instrument investments may be impaired includes:
a. significant financial difficulties in the debtor;
b. breach of contract by the debtor, such as principal or interest past due or default;
c. concessions made to debtors with financial difficulties considering economic and legal factors;
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d. it is highly probable that the debtor is going to dissolve or going through other terms of financial restructuring;
e. owing to significant financial difficulties occurred to the debtor, the debt instrument is discontinued to trade in
active market; or
f. Other circumstances indicating that available-for-sale debt instrument may be impaired.
2) Evidence indicating that available-for-sale equity instrument investment may be impaired includes the fair value of equity
instrument investment is suffered from significant or non-temporary decline, and the invested company operation occurs in which the
technological, market, economic or legal environment in significant adverse changes the Company may not be able to recover the
investment cost.
The Company performs review on available-for-sale equity instrument investment on an individual basis at the balance sheet date, if
the balance sheet date fair value is 50% or above lower than the cost, or the balance sheet date fair value has been lower than the cost
for a consecutive of 12 months or longer, it is determined that such equity instrument investment is impaired; if the balance sheet date
fair value is 20% or above but not exceeding 50% lower than the cost, or the balance sheet date fair value has been lower than the
cost for a consecutive of 6 months or longer but not exceeding 12 months, the Company may take other factors such as price
volatility into consideration in determining whether such equity instrument investment is impaired. For equity instrument investment
measured in cost, the Company considers whether the invested company’s technological, market, economic or legal environment
changed adversely significantly, in order to determine whether the equity instrument investment is impaired.
When available-for-sale financial asset is impaired, the cumulative loss arising from decline in fair value that has been recognized
directly in equity is reclassified to impairment loss. If, after an impairment loss has been recognized on available-for-sale debt
instrument investment, there is objective evidence of a recovery in value of the financial asset which can be related objectively to an
event occurring after the impairment was recognized, the previously recognized impairment loss is reversed through profit or loss.
Subsequent fair value increase in available-for-sale debt instrument investment whose impairment loss has been recognized is
directly recognized in equity.
(XI) Receivables
1. Receivables of individually significant amount and with provision made on an individual basis
Judgment basis or amount criteria of
Receivables amounting to more than 10 million yuan
individually significant amount
Provision method for receivables of Provisions are made on the difference between the lower of
individually significant amount and with present value of future cash flow and their carrying amount
provision made on an individual basis based on impairment testing on an individual basis.
2. Receivables with provision made on a collective basis using portfolios with similar credit risk features
(1) Specific portfolios and provision method
Provision method of provision being made on collective basis using portfolios with similar credit risk
features:
grouped with related party balances within the consolidation
Portfolio 1
scope
Portfolio 2 grouped with age
Portfolios and provision method
Portfolio 1 No provision
Portfolio 2 Age analysis method
(2) Age analysis method
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Ages Proportion of provision for Proportion of provision for other
accounts receivable (%) receivables (%)
Within 1 year (inclusive, the
0 0
same hereinafter)
1-2 years 0 0
2-3 years 10 10
3-4 years 30 30
4-5 years 40 40
5-6 years 80 80
Over 6 years 100 100
3. Receivables of individually insignificant amount but with provision made on an individual basis
An impairment test for an individual basis with objective
Reasons for provision made on an
individual basis evidence showing it become impaired
Provision method provision method made on an individual basis
For other receivables such as notes receivable, interest receivable and long-term receivable, etc., provision for bad debts
is made at the difference between the present value of future cash flow and the carrying amount.
(XII) Inventories
1. Classification of inventories
Inventories include finished goods or goods held for sale in the ordinary course of business, work in process in the process of
production, and materials or suppliers etc. to be consumed in the production process or in the rendering of services.
2. Accounting method for dispatching inventories:
Inventories dispatched from storage are accounted for with moving average method.
3. Basis for determining net realizable value
At the balance sheet date, inventories are measured at the lower of cost or net realizable value; provisions for inventory write-down
are made on the excess of its cost over the net realizable value. The net realizable value of inventories held for sale is determined
based on the amount of the estimated selling price less the estimated selling expenses and relevant taxes and surcharges in the
ordinary course of business; the net realizable value of materials to be processed is determined based on the amount of the estimated
selling price less the estimated costs of completion, selling expenses and relevant taxes and surcharges in the ordinary course of
business; at the balance sheet date, when only part of the same item of inventories have agreed price, their net realizable value is
determined separately and is compared with their costs to set the provision for inventory write-down to be made or reversed.
4.Inventory system
Perpetual inventory method is adopted.
5. Amortization method of low-value consumables and packages
(1) Low-value consumables
Low-value consumables are amortized with one-off method.
(2) Packages
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Packages are amortized with one-off method.
(XIII) Assets classified as held-for-sale
Non-current assets (excluding financial assets) are accounted for as held-for-sale when the following conditions are all met: a. the
component must be available for immediate sale in its present condition subject only to terms that are usual and customary for sales
of such component; b. the Company has made a decision on the disposal of the component; c. the Company has signed an irrevocable
transfer agreement with the transferee; and d. the transfer is expected to be completed within one year.
(XIV) Long-term equity investments
1. Judgment of joint control and significant influence
Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant
activities require the unanimous consent of the parties sharing control. Significant influence is the power to participate in the
financial and operating policy decisions of the investee but is not control or joint control of these policies.
2. Determination of investment cost
(1) For business combination under common control, if the consideration of the combining party is that it makes payment in cash,
transfers non-cash assets, assumes its liabilities or issues equity securities, on the date of combination, it regards the share of the
carrying amount of the equity of the combined party included the consolidated financial statements of the ultimate controlling party
as the initial cost of the investment. The difference between the initial cost of the long-term equity investment and the carrying value
of the combination consideration paid or the par value of shares issued offsets capital reserve; if the balance of capital reserve is
insufficient to offset, any excess is adjusted to retained earnings.
When long-term equity investments are obtained through business combination under common control achieved in stages, the
Company determines whether it is a “package deal”.
If it is a “package deal”, stages as a whole are considered as one transaction in accounting treatment. If it is not a “package deal”,
investment cost is initially recognized at the share of the carrying amount of net assets of the combined party included the
consolidated financial statements of the ultimate controlling party. The difference between the acquisition-date investment cost of
long-term equity investments and the carrying amount of the previously held long-term equity investments plus the carrying amount
of the consideration paid for the newly acquired equity is adjusted to capital reserve; if the balance of capital reserve is insufficient to
offset, any excess is adjusted to retained earnings.
(2) For business combination not under common control, investment cost is initially recognized at the acquisition-date fair value of
considerations paid.
When long-term equity investments are obtained through business combination not under common control achieved in stages, the
Company determined whether they are stand-alone financial statements or consolidated financial statements in accounting treatment:
1) In the case of stand-alone financial statements, investment cost is initially recognized at the carrying amount of the previously held
long-term equity investments plus the carrying amount of the consideration paid for the newly acquired equity.
2) In the case of consolidated financial statements, the Company determines whether it is a “package deal”.
If it is a “package deal”, stages as a whole are considered as one transaction in accounting treatment. If it is not a “package deal”, the
carrying value of the acquirer’s previously held equity interest in the acquire is remeasured at the acquisition-date fair value, and the
difference between the fair value and the carrying amount is recognized in investment income; when the acquirer’s previously held
equity interest in the acquire involves other comprehensive income under equity method, the related other comprehensive income is
reclassified as income for the acquisition period, excluding other comprehensive income arising from changes in net liabilities or
assets from remeasurement of defined benefit plan of the acquiree.
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(3) Long-term equity investment obtained through ways other than business combination: the initial cost of a long-term equity
investment obtained by making payment in cash is the purchase cost which is actually paid; that obtained on the basis of issuing
equity securities is the fair value of the equity securities issued; that obtained through debt restructuring is determined according to
“CASBE12 - Debt Restructuring”; and that obtained through non-cash assets exchange is determined according to “CASBE7 -
Non-cash Assets Exchange”.
3. Subsequent measurement and recognition method of gain or loss
For long-term equity investment with control relationship, it is accounted for with cost method; for long-term equity investment with
joint control or significant influence relationship, it is accounted for with equity method.
4. Disposal of a subsidiary in stages resulting in the Company’s loss of control
(1) Stand-alone financial statements
The difference between the carrying amount of the disposed equity and the consideration obtained thereof is recognized in profit or
loss. If the disposal does not result in the Company’s loss of significant influence or joint control, the remained equity is accounted
for with equity method; however, if the disposal results in the Company’s loss of control, joint control, or significant influence, the
remained equity is reclassified as available-for-sale financial assets at fair value.
(2) Consolidated financial statements
1) Disposal of a subsidiary in stages not qualified as “package deal” resulting in the Company’s loss of control
Before the Company’s loss of control, the difference between the disposal consideration and the proportionate share of net assets in
the disposed subsidiary from acquisition date or combination date to the disposal date is adjusted to capital reserve (capital premium),
if the balance of capital reserve is insufficient to offset, any excess is adjusted to retained earnings.
When the Company loses control, the remained equity is remeasured at the loss-of-control-date fair value. The aggregated value of
disposal consideration and the fair value of the remained equity, less the share of net assets in the disposed subsidiary held before the
disposal from the acquisition date or combination date to the disposal date is recognized in investment income in the period when the
Company loses control over such subsidiary, and meanwhile goodwill is offset correspondingly. Other comprehensive income related
to equity investments in former subsidiary is reclassified as investment income upon the Company’s loss of control.
2) Disposal of a subsidiary in stages qualified as “package deal” resulting in the Company’s loss of control
In case of “package deal”, stages as a whole are considered as one transaction resulting in loss of control in accounting treatment.
Before the Company loses control, the difference between the disposal consideration at each stage and the proportionate share of net
assets in the disposed subsidiary is recognized as other comprehensive income at the consolidated financial statements and
reclassified as profit or loss in the period when the Company loses control over such subsidiary.
(XV) Investment property
1. Investment property includes land use right of rent-out property and of property held for capital appreciation and buildings that
have been leased out.
2. The initial measurement of investment property is based on its cost, and subsequent measurement is made using the cost model,
the depreciation or amortization method is the same as that of fixed assets and intangible assets.
(XVI) Fixed assets
1. Recognition principles of fixed assets
Fixed assets are tangible assets held for use in the production or supply of goods or services, for rental to others, or for administrative
purposes, and expected to be used during more than one accounting year. Fixed assets are recognized if, and only if, it is probable
that future economic benefits associated with the assets will flow to the Company and the cost of the assets can be measured reliably.
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2. Depreciation method of different categories of fixed assets
Estimated Annual
Useful life
Categories Depreciation method1 residual value depreciation
(years)
proportion (%) rate (%)
Buildings and structures straight-line method 15-35 3.00 2.77-6.47
Mechanical equipment straight-line method 10-15 3.00 6.47-9.70
Transport facilities straight-line method 6-8 3.00 12.13-16.17
Electronic equipment straight-line method 4-11 3.00 2.2-24.25
Office equipment and others straight-line method 4-11 3.00 2.2-24.25
(XVII) Construction in progress
1. Construction in progress is recognized if ,and only if, it is probable that future economic benefits associated with the item will flow
to the Company, and the cost of the item can be measured reliably. Construction in progress is measured at the actual cost incurred to
reach its designed usable conditions.
2. Construction in progress is transferred into fixed assets at its actual cost when it reaches its designed usable conditions. When the
construction completion cost reaches final estimating and auditing of the construction in progress was not finished while it reaching
the designed usable conditions, it is transferred to fixed assets using estimated value first, and then adjusted accordingly when the
actual cost is settled, but the accumulated depreciation is not to be adjusted retrospectively.
(XVIII) Borrowing costs
1. Recognition principle of borrowing costs capitalization
Where the borrowing costs incurred to the Company can be directly attributable to the acquisition and construction or
production of assets eligible for capitalization, it is capitalized and included in the costs of relevant assets; other
borrowing costs are recognized as expenses on the basis of the actual amount incurred, and are included in profit or
loss.
2. Borrowing costs capitalization period
(1) The borrowing costs are not capitalized unless they following requirements are all met: 1) the asset disbursements
have already incurred; 2) the borrowing costs have already incurred; and 3) the acquisition and construction or
production activities which are necessary to prepare the asset for its intended use or sale have already started.
(2) Suspension of capitalization: where the acquisition and construction or production of a qualified asset is interrupted
abnormally and the interruption period lasts for more than 3 months, the capitalization of the borrowing costs is
suspended; the borrowing costs incurred during such period are recognized as expenses, and are included in profit or
loss, till the acquisition and construction or production of the asset restarts.
(3) Ceasing of capitalization: when the qualified asset under acquisition and construction or production is ready for the
intended use or sale, the capitalization of the borrowing costs is ceased.
3. Capitalization rate and capitalized amount of borrowing costs
For borrowings exclusively for the acquisition and construction or production of assets eligible for capitalization, the
1
Methods include straight-line method, unit-of-production method, double-declining-balance method, sum-of-the-years-digits
method, as well as other methods.
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Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
to-be-capitalized amount of interests is determined in light of the actual interest expenses incurred (including
amortization of premium or discount based on effective interest method) of the special borrowings at the present period
minus the income of interests earned on the unused borrowings as a deposit in the bank or as a temporary investment;
where a general borrowing is used for the acquisition and construction or production of assets eligible for capitalization,
the Company calculates and determines the to-be-capitalized amount of interests on the general borrowing by
multiplying the weighted average asset disbursement of the part of the accumulative asset disbursements minus the
general borrowing by the capitalization rate of the general borrowing used.
(XIX) Intangible assets
1. Intangible asset includes land use right, patent right and non-patented technology etc. The initial measurement of intangible asset is
based its cost.
2. For intangible assets with finite useful lives, its amortization amount is amortized within its useful lives systematically and
reasonably, if it is unable to determine the expected realization pattern reliably, intangible assets are amortized by the straight-line
method.
Items Depreciation years
Software 3-10 years
Patent right and non-patent right 5-10 years
Land use right 40-50 years
3. Expenditures on the research phase of an internal project are recognized as profit or loss when it is incurred. An intangible asset
arising from the development phase of an internal project is recognized if the Company can demonstrate all of the following: (1) the
technical feasibility of completing the intangible asset so that it will be available for use or sale; (2) its intention to complete the
intangible asset and use or sell it; (3) how the intangible asset will generate probable future economic benefits. Among other things,
the Company can demonstrate the existence of a market for the output of the intangible asset or the intangible asset itself or, if it is to
be used internally, the usefulness of the intangible asset; (4) the availability of adequate technical, financial and other resources to
complete the development and to use or sell the intangible asset; and (5) its ability to measure reliably the expenditure attributable to
the intangible asset during its development.
(XX) Impairment of part of non-current assets
For non-current assets such as long-term equity investments, investment property at cost model, fixed assets,
construction in progress, intangible assets with finite useful life, etc., if at the balance sheet date there is indication of
impairment, the recoverable amount is estimated. For goodwill recognized in business combination and intangible
assets with indefinite useful life, no matter whether there is indication of impairment, impairment test is performed
annually. Impairment test on goodwill is performed on related group of assets or a portfolio of groups of assets.
When the measurement result indicates that the recoverable amount of such non-current assets is lower than their carrying amount,
the carrying amount is reduced to the recoverable amount, and the difference is recognized as assets impairment loss through profit
or loss, and provision for assets impairment loss is made accordingly.
(XXI) Long-term prepayments
Long-term prepayments are expenses that have been recognized but with amortization period over one year (excluding one year).
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Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
They are recorded with actual cost, and evenly amortized within its beneficiary period or stipulated period. If items of long-term
prepayments fail to be beneficial to the following accounting periods, residual values of such items are included in profit or loss.
(XXII) Employee benefits
1. Employee benefits include short-term employee benefits, post-employment benefits, termination benefits and other long-term
employee benefits.
2. Short-term employee benefits
The Company recognizes, in the accounting period in which an employee provides service, short-term employee benefits actually
incurred as liabilities, with a corresponding charge to profit or loss or the cost of a relevant asset.
3. Post-employment benefits
The Company classifies post-employment benefit plans as either defined contribution plans or defined benefit plans.
(1) The Company recognizes in the accounting period in which an employee provides service the contribution payable to a defined
contribution plan as a liability, with a corresponding charge to profit or loss or the cost of a relevant asset.
(2) Accounting treatment by the Company for defined benefit plan usually involves the following steps:
1) In accordance with the projected unit credit method, using unbiased and mutually compatible actuarial assumptions to estimate
related demographic variables and financial variables, measure the obligations under the defined benefit plan, and determine the
periods to which the obligations are attributed. The Company discounts obligations under the defined benefit plan using the discount
rate to determine the present value of the defined benefit plan obligations and the current service cost;
2) When a defined benefit plan has assets, the Company recognizes the deficit or surplus by deducting the present value of the
defined benefit plan obligation from the fair value of defined benefit plan assets as a net defined benefit plan liability or net defined
benefit plan asset. When a defined benefit plan has a surplus, the Company measures the net defined benefit plan asset at the lower of
the surplus in the defined benefit plan and the asset ceiling;
3) At the end of reporting period, the Company recognizes the following components of employee benefits cost arising from defined
benefit plan: a. service cost; b. net interest on the net defined benefit plan liability (asset); and c. Changes as a result of
remeasurement of the net defined benefit liability (asset). Item a and item b are recognized in profit or loss or the cost of a relevant
asset. Item c is recognized in other comprehensive income and is not to be reclassified subsequently to profit or loss. However, the
Company may transfer those amounts recognized in other comprehensive income within equity.
4. Termination benefits
Termination benefits provided to employees are recognized as an employee benefit liability for termination benefits, with a
corresponding charge to profit or loss at the earlier of the following dates: a. when the Company cannot unilaterally withdraw the
offer of termination benefits because of an employment termination plan or a curtailment proposal; or b. when the Company
recognizes cost or expenses related to a restructuring that involves the payment of termination benefits.
5. Other long-term employee benefits
When other long-term employee benefits provided by the Company to the employees satisfied the conditions for classifying as a
defined contribution plan, those benefits are accounted for in accordance with the requirements relating to defined contribution plan.
The Company recognizes and measures the net liability or net asset of other long-term employee benefits in accordance with the
requirements relation to defined benefit plan. At the end of the reporting period, the Company recognizes the components of cost of
employee benefits arising from other long-term employee benefits as the followings: a. service cost; b. net interest on the net liability
or net assets of other long-term employee benefits; and c. changes as a result of remeasurement of the net liability or net assets of
other long-term employee benefits. As a practical expedient, the net total of the aforesaid amounts are recognized in profit or loss or
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Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
included in the cost of a relevant asset.
(XXIII) Provisions
1. Provisions are recognized when fulfilling the present obligations arising from contingencies such as providing
guarantee for other parties, litigation, products quality guarantee, onerous contract, etc., may cause the outflow of the
economic benefit and such obligations can be reliably measured.
2. The initial measurement of provisions is based on the best estimated expenditures required in fulfilling the present
obligations, and its carrying amount is reviewed at the balance sheet date.
(XXIV) Revenue
1. Revenue recognition principles
(1) Sale of goods
Revenue from sale of goods is recognized if, and only if, the following conditions are all satisfied: a) significant risks
and rewards of ownership of the goods is transferred to the buyer; b) the Company retains neither continuing
managerial involvement of ownership nor effective control over the goods sold; c) the amount of revenue can be
measured reliably; d) it is probable that the economic benefits of the transaction will flow to the Company; and e) the
costs of the transaction incurred and to be incurred can be measured reliably.
(2) Rendering of services
When the outcome of the transaction can be estimated reliably (the amount of revenue can be measured reliably, it is
probable that the economic benefits will flow to the Company, the percentage of completion of the transaction can be
determined reliably, and the costs of the transaction incurred and to be incurred can be measured reliably), revenue from
rendering of services is recognized using the percentage of completion method, and the stage of completion is
determined at the proportion of service rendered to the total service. When the outcome of the transaction cannot be
estimated reliably at the balance sheet date, revenue is recognized based on the amount of the costs incurred and the
costs incurred are charged off at the same amount when the costs incurred are expected to be recoverable; and no
revenue is recognized and the costs incurred are charged off as an expense of the period when the costs incurred are not
expected to be recovered.
(3) Revenue arising from use by others of assets
Revenue arising from use by others of assets is recognized if,and only if, it is probable that economic benefits
associated with the transaction will flow to the Company and the amount of the revenue can be measured reliably.
Interest income is recognized based on the length of time for which the Company’s cash is used by others and the
effective interest rate; and royalties are recognized according to the period and method of charging as specified in
relevant contract or agreement.
2. Revenue recognition method adopted by the Company
The Company’s main product is the telecommunication product. Revenue from domestic sales is recognized if, and
only if, the following conditions are all met: the Company has delivered goods to the purchaser based on contractual
agreements; sales revenue is determined; goods payment has been collected or the Company has obtained receipts
invoices and it is probable that economic benefits associated with the transaction will flow to the Company; and the
costs of the transaction incurred and to be incurred can be measured reliably.
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(XXV) Government grants
1. Government grants related to assets
Government grants related to assets are government grants, with which the Company purchase, construct or otherwise acquire
non-current assets. They are recognized as deferred income, and amortized on a straight-line method over the useful lives of the
relevant assets, and included in profit or loss. However, those measured at notional amount is directly included into profit or loss.
2. Government grants related to income
Government grants related to income are government grants other than those related to assets. Government grants related to income if
used for compensating the related future expenses or losses of the Company are recognized as deferred income and are included in
profit or loss during the period when the relevant expenses are recognized; if used for compensating the related expenses or losses
incurred to the Company are directly included in profit or loss.
(XXVI) Leases
When the Company is the lessee, lease payments are recognized as cost or profit or loss with straight-line method over
the lease term. Initial expenses are recognized directly into profit or loss. Contingent rents are charged as profit or loss
in the periods in which they are incurred.
When the Company is the lessor, lease income is recognized as profit or loss with straight-line method over the lease
term. Initial expenses, other than those with material amount and eligible for capitalization which are recognized as
profit or loss by installments, are recognized directly as profit or loss. Contingent rents are charged into profit or loss in
the periods in which they are incurred.
IV. Taxes
(I) Main taxes and tax rates
Taxes Tax bases Tax rates
Value-added tax (VAT)
The taxable revenue from sales of goods or 17%
rendering of services
Business tax The taxable business turnover 3%-5%
Urban maintenance and Turnover tax payable 7%
construction tax
Education surcharge Turnover tax payable 3%
Local education surcharge Turnover tax payable 2%
Enterprise income tax Taxable income 15%-25%
Different enterprise income tax rates applicable to different taxpayers:
Taxpayers Income tax rate
Nanjing Putian Intelligent Building Ltd. 15%
Nanjing Putian Changle Telecommunications Equipment Co., Ltd. 15%
Nanjing Putian Datang Information Electronic Co., Ltd. 15%
Nanjing Putian Network Company Ltd. 15%
Putian Telecommunications (H.K.) Co., Ltd. 16.5%
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Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Taxpayers other than the above-mentioned 25%
Putian Telecommunications (Hong Kong) Co., Ltd. was established in Hong Kong on 1 December 2000, and is subject
to the Enterprise Income Tax at a rate of 16.5%, according to relevant rules in Hong Kong.
(II) Tax preferential policies
The subsidiaries, Nanjing Putian Intelligent Building Co., Ltd., Nanjing Putian Changle Telecommunications
Equipment Co., Ltd., Nanjing Putian Network Company Ltd. and Nanjing Putian Datang Information Electronic Co.,
Ltd. as high-tech enterprises, pay the enterprise income tax at a reduced rate of 15 %.
The subsidiary, Nanjing Telecommunication Equipment Factory- The Seventh Branch, is a social welfare enterprise.
Therefore, it is in accordance with the provisions of GSF (2007) No. 067 and enjoys the preferential tax policy of
value-added tax levied immediately returned and the disabled people’s wage deduction.
The subsidiary, Nanjing South Telecommunications Company Limited, Nanjing Putian Datang Information Electronic
Co., Ltd., Nanjing Putian Network Company Ltd. and Nanjing Putian Telecommunication Technology Company Ltd. is
software enterprises and enjoy the preferential tax policy of value-added tax levied immediately returned with the
provisions of CS(2011) No. 100.
V. Notes to items of consolidated financial statements
(I) Notes to items of the consolidated balance sheet
1. Cash and bank balances
(1) Details
Items Closing balance Opening balance
Cash on hand 2,554.25 18,655.93
Cash in bank 405,918,389.43 339,354,284.01
Other cash and bank balances 56,038,240.66 55,213,707.82
Total 461,959,184.34 394,586,647.76
(2) Other remarks
Other cash and bank balances are including the acceptance deposit and the letter of guarantee deposit. The acceptance
deposit amounts to 38,000,000.00 yuan and the letter of guarantee deposit amounts to 18,038,240.66 yuan.
2. Notes receivable
(1) Details
Closing balance Opening balance
Pro
visi
Provisio
on
Items n for
Book balance for Carrying amount Book balance Carrying amount
bad
bad
debts
debt
s
Bank
26,318,796.40 26,318,796.40 13,645,568.43 13,645,568.43
acceptance
Trade
6,021,033.32 6,021,033.32 20,730,072.94 20,730,072.94
acceptance
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Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Total 32,339,829.72 32,339,829.72 34,375,641.37 34,375,641.37
(2) Endorsed or discounted but undue notes at the balance sheet date
Closing balance not yet
Items Closing balance derecognized
derecognized
Bank acceptance 7,967,225.01
Trade acceptance 14,405,263.03
Subtotal 22,372,488.04
The acceptor of bank acceptance is commercial bank, since commercial banks have high credit, bank acceptance is less
likely not due to be paid, so the Company derecognized the endorsed or discounted bank acceptance. But if such mature
acceptance is not eligible for payment, according to Laws of “Negotiable Instruments”, the Company will remain
jointly liable to the holder.
3. Accounts receivable
(1) Details
1) Details of different categories of accounts receivable
Closing balance
Book balance Provision for bad debts
Categories Provisio
Proportion n Carrying amount
Amount Amount
(%) proporti
on (%)
Receivables of individually
significant amount and with
provision made on an
individual basis
Receivables with provision
made on a collective basis
800,746,638.81 98.84 22,694,181.97 2.83 778,052,456.84
using portfolios with similar
credit risk features
Portfolio 1
Portfolio 2 800,746,638.81 98.84 22,694,181.97 2.83 778,052,456.84
Receivable of individually
insignificant amount but with 100.0
9,360,326.66 1.16 9,360,326.66
provision made on an 0
individual basis
Total 810,106,965.47 100.00 32,054,508.63 3.96 778,052,456.84
(Continued)
Opening balance
Book balance Provision for bad debts
Categories
Provision Carrying amount
Proportion
Amount Amount proportion
(%)
(%)
110
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Receivables of individually
significant amount and with
provision made on an
individual basis
Receivables with provision
made on a collective basis
787,469,667.43 98.89 16,660,810.58 2.12 770,808,856.85
using portfolios with
similar credit risk features
Portfolio 1
Portfolio 2 787,469,667.43 98.89 16,660,810.58 2.12 770,808,856.85
Receivable of individually
insignificant amount but
8,835,895.48 1.11 8,835,895.48 100.00
with provision made on an
individual basis
Total 796,305,562.91 100.00 25,496,706.06 3.20 770,808,856.85
2) In portfolios, accounts receivable with provision made on a collective basis with age analysis method
Closing balance
Ages
Book balance Provision for bad debts Provision proportion (%)
Within 1 year 657,528,486.54
1-2 years 77,336,030.27
2-3 years 24,911,500.54 2,491,150.06 10.00
3-4 years 24,584,122.03 7,375,236.62 30.00
4-5 years 5,149,945.19 2,059,978.06 40.00
5-6 years 2,343,685.15 1,874,948.14 80.00
Over 6 years 8,892,869.09 8,892,869.09 100.00
Subtotal 800,746,638.81 22,694,181.97 2.83
(2) Provisions made, collected or reversed in current period
Provision for bad debts made in current period totaled 6,855,961.07 yuan, and reversed in current period totaled
592,237.73 yuan., and the amount of provision for bad debts resulting from the fluctuations in exchange is
294,079.23 yuan.
(3) Details of the top 5 debtors with largest balances
Proportion to
the total balance Provision for bad
Debtors Book balance
of accounts debts
receivable (%)
China Putian Information industry Co. Ltd. 30,268,243.47 3.74 188,685.58
Nanjing Hehao Telecommunications Technology
27,311,817.20 3.37
Co., Ltd.
China Telecom Co., Ltd. Jiangsu Branch 24,278,882.66 3.00 951.20
China Telecom Co., Ltd. ShanXi Branch 17,251,975.78 2.13
111
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Agricultural Bank of China 13,577,923.61 1.68
Subtotal 112,688,842.72 13.92 189,636.78
4. Advances paid
(1) Age analysis
1) Details of ages
Closing balance
Ages Provision for bad
Book balance Proportion (%) Carrying amount
debts
Within 1 year 27,593,783.68 75.20 27,593,783.68
1-2 years 2,549,193.53 6.95 2,549,193.53
2-3 years 2,540,818.11 6.92 2,540,818.11
Over 3 years 4,008,533.75 10.93 4,008,533.75
Total 36,692,329.07 100.00 36,692,329.07
(Continued)
Opening balance
Ages Provision for bad
Book balance Proportion (%) Carrying amount
debts
Within 1 year 20,249,817.55 64.02 20,249,817.55
1-2 years 5,700,897.26 18.02 5,700,897.26
2-3 years 1,835,834.69 5.80 1,835,834.69
Over 3 years 3,844,054.80 12.16 3,844,054.80
Total 31,630,604.30 100.00 31,630,604.30
2) Reasons for unsettlement on advances paid with age over one year and significant amount
Debtors Closing balance Reasons for unsettlement
Beijing Hongbo Tengda science and Technology
881,505.00 The contract is not fulfilled.
Development Co., Ltd.
Gansu Ruitong Network Technology Co., Ltd. 500,000.00 The settlement is not complete.
Beijing ZhongHaiJinCheng International Logistics
520,558.68 The contract is not fulfilled.
Co., Ltd.
Shanghai YuChi Trade development Co., Ltd. 300,000.00 The contract is not fulfilled.
Changzhou Power Supply Company of Jiangsu The project is not completed.
150,000.00
Electric Power Company
Subtotal 2,352,063.68
(2) Details of the top 5 debtors with largest balances
Debtors Book balance Proportion to the
total balance of
112
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
advances paid (%)
Guangzhou Yuewang Information Technology Co., Ltd. 1,911,466.00 5.21
SONY(China) Co., Ltd. 1,893,765.00 5.16
Jiangxi Shiwei Engineering Consultation and Supervision Co., Ltd. 1,802,700.00 4.91
Anhui Antong Machinery Co., Ltd 1,442,800.00 3.93
Beijing Zhonghai Jincheng International Logistics Co., Ltd. 1,188,242.82 3.24
Subtotal 8,238,973.82 22.45
5. Dividend receivable
Items Closing balance Opening balance
Nanjing Prachanda Live Optical Network Co., Ltd 1,000,000.00
Total 1,000,000.00
6. Other receivables
(1) Details
1) Details on categories
Closing balance
Book balance Provision for bad debts
Categories
Provision Carrying amount
Proportion
Amount Amount proportion
(%)
(%)
Receivables of
individually significant
amount and with provision 28,912,122.71 43.68 28,912,122.71 100.00
made on an individual
basis
Receivables with
provision made on a
collective basis using 37,273,475.89 56.32 5,038,904.67 13.52 32,234,571.22
portfolios with similar
credit risk features
Portfolio 1
Portfolio 2 37,273,475.89 56.32 5,038,904.67 13.52 32,234,571.22
Receivable of individually
insignificant amount but
with provision made on an
individual basis
Total 66,185,598.60 100.00 33,951,027.38 51.30 32,234,571.22
(Continued)
Opening balance
Book balance Provision for bad debts
Categories
Provision Carrying amount
Proportion
Amount Amount proportion
(%)
(%)
113
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Opening balance
Book balance Provision for bad debts
Categories
Provision Carrying amount
Proportion
Amount Amount proportion
(%)
(%)
Receivables of
individually significant
amount and with provision 28,912,122.71 38.83 28,912,122.71 100.00
made on an individual
basis
Receivables with
provision made on a
collective basis using 45,547,277.77 61.17 13,154,484.54 28.88 32,392,793.23
portfolios with similar
credit risk features
Portfolio 1
Portfolio 2 45,547,277.77 61.17 13,154,484.54 28.88 32,392,793.23
Receivable of individually
insignificant amount but
with provision made on an
individual basis
Total 74,459,400.48 100.00 42,066,607.25 56.50 32,392,793.23
2) Other receivables of individually significant amount and with provision made on an individual basis
Provision for bad Provision Reasons for
Debtors Book balance
debts proportion (%) provision made
Beijing Picom Aging longer
Telecommunications 28,912,122.71 28,912,122.71 100.00 cannot be
Equipment Ltd recalled
Subtotal 28,912,122.71 28,912,122.71 100.00
3) In portfolios, other receivables with provision made on a collective basis with age analysis method
Closing balance
Ages
Book balance Provision for bad debts Provision proportion (%)
Within 1 year 20,839,915.25
1-2 years 8,143,184.14
2-3 years 1,187,956.72 118,795.67 10.00
3-4 years 2,405,712.05 721,713.62 30.00
4-5 years 411,049.32 164,419.73 40.00
5-6 years 1,258,413.80 1,006,731.04 80.00
Over 6 years 3,027,244.61 3,027,244.61 100.00
Subtotal 37,273,475.89 5,038,904.67 13.52
(2) Provisions made, collected or reversed in current period
1) Provisions for bad debts made in current period totaled 623,953.25 yuan, and reversed in current period totaled 8,741,893.55
yuan. and the amount of provision for bad debts resulting from the fluctuations in exchange is 2,360.43 yuan.
114
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
2) Provisions collected or reversed in current period
collected or reversed
Debtors Collected type
amount
The Yuhua People's Government Nanning Office
8,000,000.00 Bank transfer
Subtotal 8,000,000.00
(3) Other receivables categorized by nature
Nature of receivables Closing balance Opening balance
Fund of disbursement for travel expenses 3,909,096.00 3,390,197.18
Deposit as security 23,595,945.99 10,523,324.58
Temporary advance payment receivable 35,096,707.76 58,519,421.71
3,583,848.85 2,026,457.01
Others
66,185,598.60 74,459,400.48
Total
(4) Details of the top 5 debtors with largest balances
Proportion to
the total
Nature of balance of Provision for bad
Debtors Book balance Age
receivables other debts
receivables
(%)
Beijing Picom Temporary Over 6
Telecommunications payments 28,912,122.71 43.68 28,912,122.71
Equipment Ltd receivable years
China Mobile
Communications Deposit as
3,150,000.00 1-3 years 4.76 5,000.00
Corporation Jiangsu security
Branch
China Putian
Deposit as
Information Industry 1,530,000.00 1-2 years 2.31
security
Co., Ltd
Henan Zhongguang Temporary Over 6
Information Network payments 1,000,000.00 1.51 1,000,000.00
Co., Ltd. receivable years
China Railway Group Within 1
Deposit as
Ltd. 600,000.00 0.91
security year
Total
35,192,122.71 53.17 29,917,122.71
7. Inventories
115
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
(1) Details
Closing balance
Items Provision for
Book balance Carrying amount
write-down
Raw materials 32,490,746.73 2,076,580.88 30,414,165.85
Work in process 16,876,174.05 16,876,174.05
Goods on hand 350,154,616.50 6,943,495.24 343,211,121.26
Total
399,521,537.28 9,020,076.12 390,501,461.16
(Continued)
Opening balance
Items
Provision for
Book balance Carrying amount
write-down
Raw materials 34,249,423.11 2,439,972.73 31,809,450.38
Work in process 17,844,362.54 17,844,362.54
Goods on hand 414,325,369.42 8,947,317.41 405,378,052.01
Total 466,419,155.07 11,387,290.14 455,031,864.93
(2) Provision for inventory write-down
1) Details
Increase Decrease
Items Opening balance Reversal or Closing balance
Provision Others Others
written-off
Raw materials 2,439,972.73 -363,391.85 2,076,580.88
Goods on
8,947,317.41 4,569,571.14 6,573,393.31 6,943,495.24
hand
Subtotal 11,387,290.14 4,206,179.29 6,573,393.31 9,020,076.12
2) Determination basis of net realizable value and reasons for the reversal or written-off of provision for inventory write-down
The detailed basis of net realizable value refers to the Notes XII of financial statements, the written-off of provision for inventory is
the amount of 6,573,393.31 which is reversed by the parent Nanjing Putian Telecommunications Co., Ltd., as the goods on hand
related to the written-off is sold in the current period.
8. Other current assets
116
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Items Closing balance Opening balance
Input tax to be deducted 8,738,631.96 9,577,770.69
Total
8,738,631.96 9,577,770.69
9. Available-for-sale financial assets
(1) Details
Closing balance Opening balance
Items Provision for Carrying Provision for Carrying
Book balance Book balance
impairment amount impairment amount
Available-
for-sale
equity
instrument
Including: 2,596,863. 741,953.
at fair 2,596,863.00 1,854,910.00 741,953.00 1,854,910.00
value 00 00
2,596,863. 741,953.
Total 2,596,863.00 1,854,910.00 741,953.00 1,854,910.00
00 00
(2) Available-for-sale financial assets at cost
Book balance
Investees
Opening balance Increase Decrease Closing balance
Nanjing Yuhua Galvanization
420,915.00 420,915.00
Factory
Hangzhou Hongyan Electric
Appliance Co., Ltd. 321,038.00 321,038.00
Beijing Picom
Telecommunications Equipment 1,854,910.00 1,854,910.00
Ltd.
Subtotal 2,596,863.00 2,596,863.00
(Continued)
Provision for impairment Cash
Holding
Investees dividend in
proportion in
Opening balance Increase Decrease Closing balance investees (%) current
period
Nanjing Yuhua
Galvanization Factory 10.00
Hangzhou Hongyan
Electric Appliance Co., 2.26
Ltd.
Beijing Picom
Telecommunication 1,854,910.00 1,854,910.00 51.00
Equipment Ltd.
117
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Provision for impairment Cash
Holding
Investees dividend in
proportion in
Opening balance Increase Decrease Closing balance investees (%) current
period
Subtotal 1,854,910.00 1,854,910.00
10. Long-term equity investments
(1) Categories
Closing balance Opening balance
Provisio Provisio
Items n for Carrying n for Carrying
Book balance Book balance
impairm amount impairm amount
ent ent
Investments
in associates 172,315,120.86 172,315,120.86 172,156,300.81 172,156,300.81
Investments
in joint 13,543,120.01 13,543,120.01 12,776,624.47 12,776,624.47
ventures
Total 185,858,240.87 185,858,240.87 184,932,925.28 184,932,925.28
(2) Details
Increase/decrease
Adjustment in
Investees Opening balance Investment income
Investments Investments other
recognized under
increased decreased comprehensive
equity method
income
Joint ventures
Nanjing Prachanda
Live Optical Network 12,776,624.47 766,495.54
Co., Ltd.
Subtotal 12,776,624.47 766,495.54
Associates
Nanjing Putian
Cable 2,811,932.71 158,472.79
Co., Ltd.
Putian High
Technology 169,344,368.10 668,115.26
Industry Co., Ltd.
172,156,300.81 826,588.05
Subtotal
184,932,925.28 1,593,083.59
Total
(Continued)
Investees Increase/decrease Closing balance Closing
118
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Cash balance of
Changes provision for
dividend/profit Provision for
in other Others impairment
declared for impairment
equity
distribution
Joint ventures
Nanjing Prachanda
Live Optical Network 13,543,120.01
Co., Ltd.
13,543,120.01
Subtotal
Associates
Nanjing Putian Cable
360,000.00 2,610,405.50
Co., Ltd.
Putian High
Technology 307,768.00 169,704,715.36
Industry Co., Ltd.
667,768.00 172,315,120.86
Subtotal
667,768.00 185,858,240.87
Total
11. Investment property
Items Buildings and structures Land use right Total
Cost
Opening balance 43,969,211.75 3,642,147.87 47,611,359.62
Increase
Decrease
Closing balance 43,969,211.75 3,642,147.87 47,611,359.62
Accumulated depreciation and
amortization
Opening balance 12,012,802.65 1,404,691.95 13,417,494.60
Increase 1,154,965.77 119,960.64 1,274,926.41
1)Accrual or Amortization 1,154,965.77 119,960.64 1,274,926.41
Decrease
Closing balance 13,167,768.42 1,524,652.59 14,692,421.01
Provision for impairment
119
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Items Buildings and structures Land use right Total
Opening balance 1,842,418.00 1,842,418.00
Increase
Decrease
Closing balance 1,842,418.00 1,842,418.00
Carrying amount
Closing balance 28,959,025.33 2,117,495.28 31,076,520.61
Opening balance 30,113,991.10 2,237,455.92 32,351,447.02
12. Fixed assets
(1) Details
Buildings and Machinery
Items Transport facilities
structures equipment
Cost
Opening balance 101,163,240.29 80,203,305.95 14,928,622.06
Increase 440,844.74 1,510,485.78 1,282.05
1) Acquisition 896,195.20 1,282.05
2) Transferred in from
440,844.74 614,290.58
construction in progress
Decrease 1,574,800.00 71,850.08 120,000.00
1) Disposal/scrap 1,574,800.00 71,850.08 120,000.00
Closing balance 100,029,285.03 81,641,941.65 14,809,904.11
Accumulated depreciation
Opening balance 38,966,003.77 66,614,341.95 11,454,088.15
Increase 3,205,634.85 2,740,094.31 1,076,262.88
1) Accrual 3,205,634.85 2,740,094.31 1,076,262.88
Decrease 1,574,800.00 62,662.31 116,400.00
1) Disposal/scrap 1,574,800.00 62,662.31 116,400.00
Closing balance 40,596,838.62 69,291,773.95 12,413,951.03
Provision for impairment
Opening balance 539,124.00 573,461.78
Increase
120
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Buildings and Machinery
Items Transport facilities
structures equipment
Decrease
Closing balance 539,124.00 573,461.78
Carrying amount
Closing balance 58,893,322.41 11,776,705.92 2,395,953.08
Opening balance 61,658,112.52 13,015,502.22 3,474,533.91
(Continued)
Electronic
Items Office facilities Other equipment Total
equipment
Cost
Opening balance 6,968,825.83 11,047,648.12 37,616,344.39 251,927,986.64
Increase 263,289.71 179,322.96 728,810.30 3,124,035.54
1) Acquisition 263,289.71 179,322.96 728,810.30 2,068,900.22
2) Transferred in from
1,055,135.32
construction in progress
Decrease 721,341.39 650,548.06 501,960.00 3,640,499.53
1) Disposal/scrap 721,341.39 650,548.06 501,960.00 3,640,499.53
Closing balance 6,510,774.15 10,576,423.02 37,843,194.69 251,411,522.65
Accumulated depreciation
Opening balance 5,807,809.45 8,925,680.67 31,875,226.17 163,643,150.16
Increase 274,965.67 718,239.84 1,373,442.64 9,388,640.19
1) Accrual 274,965.67 718,239.84 1,373,442.64 9,388,640.19
Decrease 699,701.14 611,424.41 490,200.70 3,555,188.56
1) Disposal/scrap 699,701.14 611,424.41 490,200.70 3,555,188.56
Closing balance 5,383,073.98 9,032,496.10 32,758,468.11 169,476,601.79
Provision for impairment
Opening balance 847,107.16 92,064.43 307,895.29 2,359,652.66
Increase
Decrease
Closing balance 847,107.16 92,064.43 307,895.29 2,359,652.66
Carrying amount
Closing balance 280,593.01 1,451,862.49 4,776,831.29 79,575,268.20
Opening balance 313,909.22 2,029,903.02 5,433,222.93 85,925,183.82
(2) Fixed assets temporarily idle
121
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Items Accumulated Provision for Carrying Note
Cost
depreciation impairment amount
Equipment 2,656,590.39 1,712,884.34 930,089.05 13,617.00
Other equipment 601,241.55 286,357.39 296,846.94 18,037.22
Subtotal 3,257,831.94 1,999,241.73 1,226,935.99 31,654.22
(3) Fixed assets with certificate of titles being unsettled
Items Carrying amount Reasons for unsettlement
14,184,381.40
Production houses No certification of land use right
813,306.79
Structures No certification of land use right
1,184,757.46
Non-production houses No certification of land use right
16,182,445.65
Subtotal
13. Construction in progress
(1) Details
Closing balance Opening balance
Projects Carrying
Book balance Carrying amount Book balance
amount
Yuhua Venture park 25,725,972.29 25,725,972.29 19,210,716.29
Cable production line 614,290.58
Cable air condition
58,800.00 58,800.00 58,800.00
wiring
Cable building
470,000.00 470,000.00
renovation
Yuhuatai Road Station
274,920.00 274,920.00
Road connection fee
Intelligent Building the
100,000.00 100,000.00 195,817.21
East Gate
Total 26,629,692.29 26,629,692.29 20,079,624.08
(2) Changes in significant projects
1) Details
Transferred to Other
Projects Budgets Opening balance Increase Closing balance
fixed assets decrease
Yuhua
Venture park 56,835,000.00 19,210,716.29 6,515,256.00 25,725,972.29
Cable
production 700,000.00 614,290.58 614,290.58
line
122
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Cable air
condition 500,000.00 470,000.00 470,000.00
wiring
Cable
building 274,920.00 274,920.00
renovation
Yuhuatai
Road Station
Road 228,000.00 195,817.21 273,551.78 369,368.99 100,000.00
connection
fee
Subtotal 58,263,000.00 20,020,824.08 7,533,727.78 983,659.57 26,570,892.29
(Continued)
Amount of
Completion Accumulated Annual
Accumulated borrowing cost
percentage amount of capitaliz
Projects investment to capitalization Fund source
borrowing cost ation
budget（%） (%) in current
capitalization rate (%)
period
Yuhua
Venture 45.26 45.00 Self-owned
park
Cable
production 87.76 88.00 Self-owned
line
Cable air
condition 94.00 94.00 Self-owned
wiring
Cable
building Self-owned
renovation
Yuhuatai
Road
Station
Self-owned
Road 205.86 95.00
connection
fee
Subtotal
14. Intangible assets
Items Software Land use right Patent right Non-patent right Total
Cost
Opening
balance 9,295,281.03 29,924,994.74 607,500.00 4,560,000.00 44,387,775.77
Increase 582,407.59 582,407.59
1)
Acquisitio 582,407.59 582,407.59
n
Decrease
Closing
balance 9,877,688.62 29,924,994.74 607,500.00 4,560,000.00 44,970,183.36
123
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Items Software Land use right Patent right Non-patent right Total
Accumulated
amortization
Opening
balance 7,138,899.47 3,931,072.86 607,500.00 4,560,000.00 16,237,472.33
Increase 835,005.65 698,643.33 1,533,648.98
1) Accrual 835,005.65 698,643.33 1,533,648.98
Decrease
Closing
balance 7,973,905.12 4,629,716.19 607,500.00 4,560,000.00 17,771,121.31
Carrying
amount
Closing
balance 1,903,783.50 25,295,278.55 27,199,062.05
Opening
balance 2,156,381.56 25,993,921.88 28,150,303.44
15. Long-term prepayments
Other Closing
Items Opening balance Increase Amortization
decreases balance
Canteen
724,283.99 73,656.00 650,627.99
renovation
Office
550,308.47 1,032,528.98 252,955.92 1,329,881.53
renovation
Others 108,490.56 18,081.76 90,408.80
Total 1,274,592.46 1,141,019.54 344,693.68 2,070,918.32
16. Short-term borrowings
Items Closing balance Opening balance
Mortgage borrowings 79,000,000.00 79,000,000.00
Secured borrowings 379,000,000.00 324,000,000.00
Total 458,000,000.00 403,000,000.00
17. Notes payable
Items Closing balance Opening balance
Trade acceptance 34,018,641.90 16,816,997.65
Bank acceptance 76,000,000.00 100,000,000.00
Total 110,018,641.90 116,816,997.65
124
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
18. Accounts payable
(1) Details
Items Closing balance Opening balance
Material purchase fund 922,001,954.57 920,283,825.95
Project fund 130,656.39 275,630.35
Total 922,132,610.96 920,559,456.30
(2) Significant accounts payable with age over one year
Items Closing balance Reasons for unsettlement
China Putian Information Industry Co., Ltd.
12,112,160.00 The settlement is not complete
Nanjing Prachanda Live Optical Network Co.,
Ltd. 10,902,776.61 The settlement is not complete
Guangzhou Zhanxing Computer Technology
Co., Ltd. 2,911,874.00 The settlement is not complete
Yueqing Yuqiao Communication Electronic
Co.,Ltd. 1,425,353.15 The settlement is not complete
Nanjing Ruanxun Technology Co., Ltd. The settlement is not complete
1,022,419.50
Nanjing Aipusi Electric Control Equipment The settlement is not complete
Co., Ltd. 1,067,340.85
Beijing NuoXinHengTong Technology Co., The settlement is not complete
Ltd. 1,030,000.00
Subtotal
30,471,924.11
19. Advances received
(1) Details
Items Closing balance Opening balance
73,536,868.93 84,724,425.95
Payment for goods
Total 73,536,868.93 84,724,425.95
(2) Significant advances received with age over one year
Items Closing balance Reasons for unsettlement
China Putian Information Industry Co.,
Ltd. 8,158,434.00 The contract is still executing.
China Railway Electrification Bureau
Group Co., Ltd. 3,063,713.14 The contract is still executing.
Subtotal
11,222,147.14
20. Employee benefits payable
(1) Details
Items Opening balance Increase Decrease Closing balance
125
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Short-term employee benefits 18,693,324.81 219,509,802.00 220,524,459.95 17,678,666.86
Post-employment benefits -
26,850,680.69 26,850,680.69
defined benefit plan
Termination benefits 309,407.00 309,407.00
Total 18,693,324.81 246,669,889.69 247,684,547.64 17,678,666.86
(2) Details of short-term employee benefits
Items Opening balance Increase Decrease Closing balance
Wage, bonus, allowance and
11,417,381.49 128,782,990.16 128,366,140.06 11,834,231.59
subsidy
Employee welfare fund 14,972,029.17 14,972,029.17
Social insurance premium
14,915,598.64 14,915,598.64
Including: Medicare
premium 13,892,311.91 13,892,311.91
Occupational injuries
premium 503,221.54 503,221.54
Maternity premium
520,065.19 520,065.19
Housing accumulation funds
77,654.69 10,170,435.72 10,167,911.12 80,179.29
Trade union fund and
employee education fund 7,198,288.63 1,749,419.43 3,183,452.08 5,764,255.98
Others 48,919,328.88 48,919,328.88
Subtotal 18,693,324.81 219,509,802.00 220,524,459.95 17,678,666.86
(3) Details of defined benefit plan
Items Opening balance Increase Decrease Closing balance
Basic endowment insurance
22,960,493.00 22,960,493.00
premium
Unemployment insurance
2,048,081.05 2,048,081.05
premium
Company annuity payment 1,842,106.64 1,842,106.64
Subtotal 26,850,680.69 26,850,680.69
21. Taxes and rates payable
Items Closing balance Opening balance
126
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
VAT 2,781,222.23 4,359,048.21
Business tax 44,241.06 4,241.06
Enterprise income tax 4,096,180.66 4,776,137.86
Urban maintenance and construction
365,683.11 382,816.93
tax
Housing property tax 118,574.52 104,371.54
Land use tax 81,754.17 81,755.52
Individual income tax 380,107.55 239,140.04
Education surcharge 199,868.00 230,611.20
Local education surcharge 56,585.25 40,189.39
Other tax 5,193.50 5,841.70
Total 8,129,410.05 10,224,153.45
22. Interest payable
Items Closing balance Opening balance
Short-term borrowings interest 586,554.84 691,830.29
Total 586,554.84 691,830.29
23. Dividend payable
(1) Details
Items
Closing balance Opening balance
Dividend of ordinary shares 7,115,513.38 1,946,045.39
Total 7,115,513.38 1,946,045.39
(2) Significant dividend payable with age over one year
Items Closing balance Opening balance Reasons for being unpaid
Jiangsu Huabang Mechanical and
electrical 253,832.01
equipment engineering Co., Ltd.
Ningbo Fengshien Plastic
253,832.01 253,832.01 Temporary inability to pay
Co., Ltd.
Yuyao Guochang Electronic Co., Temporary inability to pay
Ltd. 423,053.34 423,053.34
Nanjing Yongxin Electrical Temporary inability to pay
Appliance Matching Co., Ltd. 253,832.01 253,832.01
Jingjiang Huasheng Communication Temporary inability to pay
Equipment Co., Ltd. 84,610.67 84,610.67
127
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Jiangdu Yate Communications Temporary inability to pay
Plastic Products Co,. Ltd. (Jiangdu 423,053.34 423,053.34
Branch)
Zhenjiang Shengtang Photoelectric Temporary inability to pay
Device 253,832.01 253,832.01
Co,. Ltd.
Subtotal 1,692,213.38 1,946,045.39
24. Other payables
Items Closing balance Opening balance
Deposits 5,013,016.73 3,742,703.59
Temporary receipts payable 10,954,121.54 20,135,992.26
Unsettled installation cost 21,041,211.65 29,443,834.85
Operating expense 2,914,977.40 3,964,370.78
Others 2,126,558.12 1,554,449.78
Total 42,049,885.44 58,841,351.26
25. Long-term payable
Items Closing balance Opening balance
Turnover fund 80,118.00 80,118.00
Total
80,118.00 80,118.00
26. Deferred income
(1) Details
Items Opening
Increase Decrease Closing balance Causes
balance
Government Grant 3,000,000.00 1,474,462.02 1,525,537.98
Total 3,000,000.00 1,474,462.02 1,525,537.98
(2) Details of Government Grant
128
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Opening Amount included Other Related to
Items Increased Grant in non-operation Closing balance asset/related
balance income changes to revenue
Qinhuai District,
Nanjing Science
and Technology related to
3,000,000.00 1,474,462.02 1,525,537.98
Bureau of High-end revenue
talent project
funding subsidies
Subtotal 3,000,000.00 1,474,462.02 1,525,537.98
(3) Other descriptions
The balance amount of Government Grant related to revenue will be carried forward to non-operation income when it actually
occurs.
27. Share capital
Movements
Items Opening balance Reserve Closing balance
Issue of new Bonus
transferred to Others Subtotal
shares shares
shares
Total shares 215,000,000.00 215,000,000.00
28. Capital reserve
Items Opening balance Increase Decrease Closing balance
Share/capital premium 139,592,332.04 139,592,332.04
Other capital reserve 45,782,201.81 45,782,201.81
Total 185,374,533.85 185,374,533.85
29. Other comprehensive income (OCI)
Current period cumulative
Less: Attributable Closing
Items Opening balance Current period OCI Less: Attributabl
to balance
cumulative before carried income e to parent
non-control
income tax forward tax company
ling interest
transferr
129
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
ed to
profit or
loss
Items not to be
reclassified
subsequently
to profit or loss
Items to be
reclassified
-3,318,496.10 -1,005,209.54 -904,688.59 -100,520.95 -4,223,184.69
subsequently
to profit or loss
Transla
tion difference
of financial
-3,318,496.10 -1,005,209.54 -904,688.59 -100,520.95 -4,223,184.69
statements in
foreign
currencies
Total -3,318,496.10 -1,005,209.54 -904,688.59 -100,520.95 -4,223,184.69
30. Surplus reserve
Items Opening balance Increase Decrease Closing balance
Statutory surplus reserve 589,559.77 589,559.77
Total 589,559.77 589,559.77
31. Undistributed profit
(1) Details
Current period Preceding period
Items
cumulative comparative
Balance before adjustment at the end of preceding period -33,465,684.38 -14,489,140.50
Add: Increase due to adjustment (or less: decrease)
Opening balance after adjustment -33,465,684.38 -14,489,140.50
Add: Net profit attributable to owners of the parent
-16,590,830.26 -18,976,543.88
company
Closing balance -50,056,514.64 -33,465,684.38
(II) Notes to items of the consolidated income statement
1. Operating revenue/cost
Current period cumulative Preceding period comparative
Items
Income Cost Income Cost
Revenue from main
operation 1,806,542,795.92 1,478,119,900.36 2,232,195,364.54 1,886,904,339.99
130
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Revenue from other
operation 86,669,422.89 73,955,748.36 61,145,575.45 46,332,328.24
Total
1,893,212,218.81 1,552,075,648.72 2,293,340,939.99 1,933,236,668.23
2. Taxes and surcharge for operations
Items Current period cumulative Preceding period comparative
Business tax 745,218.75 675,164.03
Education surcharge 3,771,274.73 3,268,451.93
Urban maintenance and construction tax 5,286,160.86 4,572,383.70
Others 213,134.22 79,449.14
Total 10,015,788.56 8,595,448.80
3. Selling expenses
Items Current period cumulative Preceding period comparative
Salary
75,088,503.36 72,761,961.39
Business entertainment
21,221,871.76 21,759,827.82
Travel expenses
19,425,267.29 21,887,134.91
Transport fees and transport damages
22,109,153.43 19,618,790.95
Office expenses
17,073,991.23 16,947,000.29
Conference expenses
3,073,382.04 3,414,766.96
Sales service charge
1,446,093.27 2,337,617.91
Business publicity fees
2,722,892.67 2,388,000.11
Equipment maintain fees
472,053.04 2,949,049.52
Others
5,907,617.84 7,114,410.20
Total
168,540,825.93 171,178,560.06
4. Administrative expenses
Items Current period cumulative Preceding period comparative
Salary expenses
39,147,400.70 51,246,408.91
131
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Technology development
69,647,725.18 50,876,689.60
Lease expense
9,202,856.62 8,983,294.76
Depreciation and amortization
4,726,077.20 5,050,644.29
Office expenses
4,197,192.57 5,036,872.27
Traveling expense
1,967,947.69 2,888,698.68
Business entertainment
2,218,703.82 2,594,805.62
Consulting, intermediary, legal fees
2,795,462.53 2,127,094.60
Taxation
2,733,235.99 1,923,969.00
Others
7,892,263.01 8,859,430.25
Total
144,528,865.31 139,587,907.98
5. Financial expenses
Items Current period cumulative Preceding period comparative
Interest expenditures
31,729,771.69 37,579,590.86
Less: Interest income
5,037,381.90 4,584,548.21
Exchange loss
6,468.42 66,907.28
Less: Exchange gain
112,503.07
Bank charges
381,096.18 363,717.29
Total
26,967,451.32 33,425,667.22
6. Assets impairment loss
Items Current period cumulative Preceding period comparative
Bad debts
-1,854,216.96 7,101,221.36
Inventory write-down loss
4,206,179.29 3,104,313.62
Total
2,351,962.33 10,205,534.98
132
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
7. Investment income
Items Current period cumulative Preceding period comparative
Investment income from
long-term equity investments 1,593,083.59 1,082,078.12
under equity method
Gains on disposal of long-term
174,759.69
equity investments
Gains on the difference between
long-term equity investments at
3,276,764.14
book value and at fair value
when getting control by steps
Total
1,593,083.59 4,533,601.95
8. Non-operating revenue
(1) Details
Amount included in
Current period Preceding period
Items non-recurring profit or
cumulative comparative loss
Gains on disposal of
154,861.95 191,589.32 154,861.95
non-current assets
Including: Gains on disposal of
154,861.95 191,589.32 154,861.95
fixed assets
Government grants 18,151,392.37 6,772,127.16 12,644,912.02
Accepted donations 1,260,000.00 1,260,000.00
Others 460,455.92 489,119.73 460,455.92
Total
20,026,710.24 7,452,836.21 14,520,229.89
(2) Government grants
Current period Preceding period
Items Related to assets/income
cumulative comparative
Refund of VAT
5,506,480.35 4,563,264.16 Related to income
Service outsourcing rewards Related to income
1,400,000.00 1,200,000.00
Enterprise Incentive payments Related to income
1,230,700.00 817,500.00
Subsidy income Related to income
173,950.00 81,463.00
A special fund to support small Related to income
109,900.00
businesses
A special fund for enterprise Related to income
innovation and achievement 6,500,000.00
transformation
133
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
A special fund for introduction of Related to income
high-end talent team plan in 1,474,462.02
Nanjing
A special fund for provincial Related to income
1,365,800.00
business development
A special fund for software and Related to income
information service industry 500,000.00
development in Nanjing
Subtotal 18,151,392.37 6,772,127.16
9. Non-operating expenditures
Current period Preceding period Amount included in
Items
cumulative comparative non-recurring profit or loss
Losses on disposal of
62,316.08 125,998.81 62,316.08
non-current assets
Including: Losses on disposal
62,316.08 125,998.81 62,316.08
of fixed assets
External donation
27,101.69 12,000.00 27,101.69
Penalty expenditure 48,499.84 183,991.85 48,499.84
Others 105,737.98 629,661.91 105,737.98
Total
243,655.59 951,652.57 243,655.59
10. Income tax expenses
(1) Details
Items Current period cumulative Preceding period comparative
Current period income tax
14,895,499.16 16,670,494.96
expenses
Deferred income tax expenses
Total
14,895,499.16 16,670,494.96
(2) Reconciliation of accounting profit to income tax expenses
Items Current period cumulative
Profit before tax
10,107,814.88
Income tax expenses based on statutory tax rate
2,526,953.72
Effect of different tax rate applicable to subsidiaries
-2,682,219.45
134
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Effect of prior income tax reconciliation
1,114,644.34
Effect of non-deductible costs, expenses and losses
3,755,235.28
Utilization of deductible losses not previously
recognized -71,272.91
Effect of deducible temporary differences or deductible
losses not recognized 11,024,961.17
Evaluation of value added adjustment
124,662.54
Deduction of R&D expenditure
-897,465.53
Income tax expenses
14,895,499.16
11. Other comprehensive income, net of income tax
Please refer to notes to other comprehensive income for details.
(III) Notes to items of the consolidated cash flow statement
1. Other cash receipts related to operating activities
Items Current period cumulative Preceding period comparative
Government Grant 14,170,450.00 2,208,863.00
Interest income 5,037,381.90 4,584,548.21
Temporary receipts and the
49,343,048.52 77,007,648.67
recovering of temporary payment
Others 2,581,306.63 1,945,434.03
Total 71,132,187.05 85,746,493.91
2. Other cash payments related to operating activities
Items Current period cumulative Preceding period comparative
Temporary payment and
79,391,894.62 55,737,280.25
repayment of temporary receipts
Out of pocket expense 136,229,914.21 141,909,507.54
Others 686,559.88 4,081,192.72
Total 216,308,368.71 201,727,980.51
3. Other cash receipts related to investing activities
135
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Items Current period cumulative Preceding period comparative
Cash and cash equivalents held by
3,593,903.04
the subsidiary on the purchase date
Total 3,593,903.04
4. Supplement information to the cash flow statement
(1) Supplement information to the cash flow statement
Current period Preceding period
Supplement information
cumulative comparative
1) Reconciliation of net profit to cash flow from operating
activities:
Net profit -4,787,684.28 -8,524,556.65
Add: Provision for assets impairment loss 2,648,401.99 10,205,534.98
Depreciation of fixed assets, oil and gas assets,productive
10,663,566.60 11,209,947.98
biological assets
Amortization of intangible assets 1,533,648.98 1,333,318.96
Amortization of long-term prepayments 344,693.68 84,958.19
Loss on disposal of fixed assets, intangible assets and
-92,545.87 -65,590.51
other non-current assets (Less: gains)
Fixed assets retirement loss (Less: gains)
Losses on changes in fair value (Less: gains)
Financial expenses (Less: gains) 31,623,737.04 37,646,498.14
Investments losses (Less: gains) -1,593,083.59 -4,533,601.95
Decrease of deferred tax assets (Less: increase)
Increase of deferred tax liabilities (Less: decrease)
Decrease in inventories (Less: increase) 60,324,224.48 -27,042,395.14
Decrease in operating receivables (Less: increase) -49,897,115.50 44,414,473.65
Increase of operating payables (Less: decrease) -34,795,414.90 6,290,448.68
Others
Net cash flow from operating activities 15,972,428.63 71,019,036.33
2) Significant investing and financing activities not related to
cash receipts and payments:
Conversion of debt into share capital
Convertible bonds due within one year
Fixed assets rented in under finance leases
3) Net changes in cash and cash equivalents:
Cash at the end of the period 405,920,943.68 375,372,939.94
136
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Current period Preceding period
Supplement information
cumulative comparative
Less: Cash at the beginning of the period 375,372,939.94 402,037,725.25
Add: Cash equivalents at the end of the period
Less: Cash equivalents at the beginning of the period
Net increase of cash and cash equivalents 30,548,003.74 -26,664,785.31
(2) Cash and cash equivalents
Items Closing balance Opening balance
1) Cash 405,920,943.68 375,372,939.94
Including: Cash on hand 2,554.25 18,655.93
Cash in bank on demand for payment 405,918,389.43 375,354,284.01
Other cash and bank balances on demand for
payment
2) Cash equivalents
Including: Bond investments maturing within three months
3) Cash and cash equivalents at the end of the period 405,920,943.68 375,372,939.94
Including: Cash and cash equivalents of parent company or
subsidiaries with use restrictions
(3) Description of supplement information to the cash flow statement
Cash and cash equivalents don’t contain deposit of acceptances and letters with use restrictions, closing balance is 56,038,240.66
yuan, opening balance is 45,213,707.82 yuan.
(IV) Others
1. Assets with title or use right restrictions
Items Closing carrying amount Reasons for restrictions
Cash and bank balances acceptance deposit and letter of
56,207,757.53
guarantee deposit
Investment property 16,811,091.51 To provide guarantee for loans
Fixed assets 43,339,836.32 To provide guarantee for loans
Intangible assets 8,070,714.30 To provide guarantee for loans
Total 124,429,399.66
2. Monetary items in foreign currencies
Items Closing balance in Exchange rate RMB equivalent
foreign currencies
Cash and bank balances
1,557,308.01 6,302,220.17
137
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Including: USD
881,453.22 6.4936 5,723,804.63
HKD
673,991.70 0.8378 564,670.25
EUR
1,654.30 7.0952 11,737.59
GBP
208.79 9.6159 2,007.70
Accounts receivable
19,936.48 129,459.53
Including: USD
19,936.48 6.4936 129,459.53
Accounts payable
1,647,642.38 1,380,394.79
Including: HKD
1,647,642.38 0.8378 1,380,394.79
VI. Equity in other entities
(I) Equity in significant subsidiaries
1. The consistent of significant subsidiaries
(1) Basis information
Main Holding proportion
Place of Acquisition
Subsidiaries operating Business nature (%)
registration method
place Direct Indirect
Nanjing Southern
Telecommunications Nanjing Nanjing Manufacture 96.99 1.38 found
Company Limited
Nanjing Mennekes
Nanjing Nanjing Manufacture 75.00 found
Electrics Co., Ltd.
Nanjing Putian Intelligent
Nanjing Nanjing Manufacture 45.767 found
Building Ltd.
Nanjing Putian Changle
Telecommunications Nanjing Nanjing Manufacture 50.70 found
Equipment Co., Ltd.
Nanjing Putian Datang
Information Electronic Nanjing Nanjing Manufacture 40.00 found
Co., Ltd.
(2) Other remarks
1) Remarks on inconsistency between holding proportion owned and voting rights proportion owned in subsidiaries
The Company holds 40% of shares in Nanjing Putian Datang Information Electronic Co., Ltd.. The Company signed an
agreement with the shareholder of Nanjing Putian Datang - Yan Yaoming to exercise his 21% right to vote on behalf of
him in May, 2014. The agreement is valid during the period of the existence of Nanjing Putian Datang Information
Electronic Co., Ltd. . The Company has 61% of voting right in Nanjing Putian Datang Information Electronic Co., Ltd. .
2) Basis for the control of an investee while holding its half or less than half voting rights, and the non-control of an
investee while holding its more than half voting rights
The Company holds 45.767% of voting rights in Nanjing Putian Intelligent Building Ltd., the proportion of the
138
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
remaining voting rights are held by other people which are dispersive. The Company has over the half number of board
of directors with the invested party right and enjoys variable returns by taking part in the invested party’s related
activity in Nanjing Putian Intelligent Building Ltd. The Company has the power in the invested party to influence the
returned amount and controls it.
2. Significant not wholly-owned subsidiaries
(1) Details
Profit or loss
Holding proportion Dividend declared to Closing balance of
attributable to
Subsidiaries of non-controlling non-controlling non-controlling
non-controlling
interest interest interest
interest
Nanjing South
Telecommunications Co., 1.630% 252,639.52 2,402,368.58
Ltd.
Nanjing Mennekes
Electrics Co., Ltd.
25.00% 1,370,906.18 250,000.00 22,675,768.22
Nanjing Putian
Intelligent Building Ltd.
54.233% 9,621,600.44 5,423,300.00 51,084,413.18
Nanjing Putian Changle
Telecommunications 49.30% -102,441.88 15,297,372.13
Equipment Co., Ltd.
Nanjing Putian Datang
Information Electronic 60.00% 2,732,163.42 3,000,000.00 14,730,728.13
Co., Ltd.
3. Main financial information of significant not wholly-owned subsidiaries
(1) Assets and liabilities
Closing balance
Subsidiaries Current Non-current Current Non-current Total
Total assets
assets assets liabilities liabilities liabilities
Nanjing South
Telecommuni
402,215,712.54 13,112,421.59 415,328,134.13 267,943,558.27 267,943,558.27
cations Co.,
Ltd.
Nanjing
Mennekes
122,428,460.08 35,734,950.22 158,163,410.30 67,460,337.44 67,460,337.44
Electrics Co.,
Ltd.
Nanjing
Putian
222,512,145.08 42,752,377.19 265,264,522.27 171,070,188.23 171,070,188.23
Intelligent
Building Ltd.
Nanjing
Putian
Changle
Telecommuni 100,009,756.08 685,196.11 100,694,952.19 69,665,799.78 69,665,799.78
cations
Equipment
Co., Ltd.
Nanjing
Putian Datang 23,524,932.76 17,964,434.65 41,489,367.41 16,938,153.86 16,938,153.86
Information
Electronic
139
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Co., Ltd.
(Continued)
Opening balance
Subsidiaries Current Non-current Current Non-current Total
Total assets
assets assets liabilities liabilities liabilities
Nanjing
South
Telecommuni 415,445,394.73 13,158,641.79 428,604,036.52 296,718,817.95 296,718,817.95
cations Co.,
Ltd.
Nanjing
Mennekes
90,560,105.88 37,650,384.06 128,210,489.94 41,991,041.79 41,991,041.79
Electrics Co.,
Ltd.
Nanjing
Putian
234,334,234.49 44,498,703.51 278,832,938.00 192,379,832.43 192,379,832.43
Intelligent
Building Ltd.
Nanjing
Putian
Changle
Telecommuni 128,720,398.00 762,801.43 129,483,199.43 98,246,254.17 98,246,254.17
cations
Equipment
Co., Ltd.
Nanjing
Putian
Datang
16,987,067.78 18,980,694.68 35,967,762.46 10,970,154.61 10,970,154.61
Information
Electronic
Co., Ltd.
(2) Profit or loss and cash flows
Current period cumulative
Subsidiaries Operating Total comprehensive Cash flows from
Net profit
revenue income operating activities
Nanjing South
Telecommunications 578,557,025.57 15,499,357.30 15,499,357.30 3,865,578.41
Co., Ltd.
Nanjing Mennekes
115,767,678.88 5,483,624.71 5,483,624.71 7,769,288.31
Electrics Co., Ltd.
Nanjing Putian
320,131,154.29 17,741,228.47 17,741,228.47 4,123,464.17
Intelligent Building Ltd.
Nanjing Putian Changle
Telecommunications 83,914,932.55 -207,792.85 -207,792.85 944,291.95
Equipment Co., Ltd.
Nanjing Putian Datang
Information Electronic 39,203,281.07 4,553,605.70 4,553,605.70 10,317,172.64
Co., Ltd.
(Continued)
Preceding period comparative
Subsidiaries Operating Total comprehensive Cash flows from
Net profit
revenue income operating activities
Nanjing South
634,649,772.85 23,274,123.19 23,274,123.19 27,867,134.01
Telecommunications
140
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Preceding period comparative
Subsidiaries Operating Total comprehensive Cash flows from
Net profit
revenue income operating activities
Co., Ltd.
Nanjing Mennekes
121,419,524.15 4,522,408.75 4,522,408.75 -7,092,104.26
Electrics Co., Ltd.
Nanjing Putian
308,797,267.30 14,235,510.42 14,235,510.42 44,843,815.48
Intelligent Building Ltd.
Nanjing Putian Changle
Telecommunications 125,175,052.19 6,696,301.16 6,696,301.16 -915,321.02
Equipment Co., Ltd.
Nanjing Putian Datang
Information Electronic 37,211,930.68 5,812,519.32 5,812,519.32 3,842,778.01
Co., Ltd.
(II) Equity in joint venture or associates
1. Significant joint ventures or associates
(1) Basic information
Main Holding proportion
Joint ventures or Place of Accounting
operating Business nature (%)
associates registration treatment
place Direct Indirect
Nanjing Prachanda Optical
Equity
Live Optical Nanjing Nanjing communication 50.00
method
Network Co., Ltd. of production
Putian High Industrial park
Equity
Technology Nanjing Nanjing venue rental 49.64
method
Industry Co., Ltd. management etc
2. Main financial information of significant joint ventures
Closing balance/current period Opening balance/last period
Items cumulative cumulative
Nanjing Prachanda Live Optical Network Co., Ltd
Current assets 54,377,811.69 47,887,390.76
Including: Cash and cash
5,420,417.11 2,120,617.06
equivalents
Non-current assets 1,713,583.05 2,149,009.45
Total assets 56,091,394.74 50,036,400.21
Current liabilities 29,005,154.73 24,483,151.27
Non-current liabilities
Total liabilities 29,005,154.73 24,483,151.27
Non-controlling interest
Equity attributable to owners of
27,086,240.01 25,553,248.94
parent company
Proportionate share in net assets 13,543,120.01 12,776,624.47
Adjustments
Goodwill
Unrealized profit in internal
trading
141
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Closing balance/current period Opening balance/last period
Items cumulative cumulative
Nanjing Prachanda Live Optical Network Co., Ltd
Others
Carrying amount of investments
13,543,120.01 12,776,624.47
in joint ventures
Fair value of equity investments
in joint ventures in association
with quoted price
Operating revenue 38,481,155.61 32,196,787.32
Financial expenses -1,026,151.76 -123,383.91
Income tax expenses
Net profit 1,532,991.07 -1,928,470.87
Net profit of discontinued
operations
Other comprehensive income
Total comprehensive income 1,532,991.07 -1,928,470.87
Dividend from joint ventures
received in current period
3. Main financial information of significant associates
Closing balance/current period Opening balance/last period
Items cumulative cumulative
Putian High Technology Industry Co., Ltd.
Current assets 218,604,345.39 206,849,649.56
Non-current assets 131,678,373.44 137,272,735.26
Total assets 350,282,718.83 344,122,384.82
Current liabilities 8,411,817.62 2,977,404.77
Non-current liabilities
Total liabilities 8,411,817.62 2,977,404.77
Non-controlling interest
Equity attributable to owners of
341,870,901.21 341,144,980.05
parent company
Proportionate share in net assets 169,704,715.36 169,344,368.10
Adjustments
Goodwill
Unrealized profit in internal
trading
Others
Carrying amount of investments
in joint ventures 169,704,715.36 169,344,368.10
Fair value of equity investments
in joint ventures in association
with quoted price
Operating revenue 21,849,571.28 18,981,308.51
Net profit 1,345,921.16 1,047,489.37
Net profit of discontinued
operations
Other comprehensive income
142
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Total comprehensive income 1,345,921.16 1,047,489.37
Dividend from joint ventures
307,768.00 297,840.00
received in current period
4. Aggregated financial information of insignificant joint ventures and associates
Closing balance/current Opening balance/preceding
Items
period cumulative period comparative
Joint ventures
Total carrying amount of investments 2,610,405.50 2,811,932.71
Proportionate shares in the following
items
Net profit 158,472.79 216,448.43
Other comprehensive income
Total comprehensive income 158,472.79 216,448.43
VII. Risks related to financial instruments
The Company aims to seek the appropriate balance between the risks and benefits from its use of financial instruments and to
mitigate the adverse effects that the risks of financial instruments have on the Company’s financial performance and make the
shareholders and other stakeholders’ benefit maximization. Based on such objectives, the Company’s risk management policies are
established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks
and adherence to limits.
The Company has exposure to the following risks from its use of financial instruments, which mainly include: credit risk, liquidity
risk, and market risk. Management have deliberated and approved policies concerning such risks, and details are:
(I) Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an
obligation.
The Company’s credit risk is primarily attributable to cash in bank and receivables. In order to control such risks, the Company has
taken the following measures:
1. Cash in bank
The Company’s cash in bank is kept in the high-credit-rating financial institution, therefore the credit risk is low.
2. Receivables
The Company assesses customers which are trade with them in credit trading by credit evaluation regularly. The Company will select
the customers which are approbatory and have a good credit record to trade with on the base of the result of the evaluation, and
monitor the customers’ trade receivable accounts to ensure the Company will not to suffer in the risk of material misstatement.
As the Company’s risk of account receivable is distributed to multiple partners and clients, as of December 31, 2015, 13.92%
(December 31, 2014: 15.65 %) of the total accounts receivable was due from the five largest customers of the Company. The
Company held no collateral or other credit enhancement on balance of receivables.
(1) Analysis of receivables not past due but impaired and receivables past due but not impaired are as follows:
143
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Closing balance
Past due but not impaired
Items Neither past due
Within one Total
nor impaired 1-2 years Over 2 years
year
Notes receivable
32,339,829.72 32,339,829.72
Accounts
receivable 657,528,486.54 77,336,030.27 734,864,516.81
Other
receivables 20,839,915.25 8,143,184.14 28,983,099.39
Subtotal
710,708,231.51 85,479,214.41 796,187,445.92
(Continued)
Opening balance
Past due but not impaired
Items Neither past due
Within one Total
nor impaired 1-2 years Over 2 years
year
Notes
receivable 34,375,641.37 34,375,641.37
Accounts
receivable 653,605,556.40 75,472,435.95 729,077,992.35
Other
receivables 21,657,023.03 3,298,238.94 24,955,261.97
Subtotal
709,638,220.80 78,770,674.89 788,408,895.69
(2) Please refer to notes to account receivable for details of individually impaired account receivable.
(II) Liquidity risk
Liquidity risk is the risk that the Company may encounter deficiency of funds in meeting obligations associated with financial
liabilities, which is possibly attributable to failure in selling financial assets at fair value on a timely basis, or failure in collecting
liabilities from counterparts of contracts, or early redemption of debts, or failure in achieving estimated cash flows.
In order to control such risk, the Company utilized financing tools such as notes settlement, bank borrowings, etc. and adopts long
and short financing methods to optimizing financing structures, and finally maintains a balance between financing sustainability and
flexibility. The Company has obtained credit limit from several commercial banks to meet working capital requirements and
expenditures.
Financial instruments classified based on remaining time period till maturity
Closing balance
Items Carrying amount Contract amount Within one year
Over 3
not yet 1-3 years
years
discounted
Bank borrowings 458,000,000.00 465,993,345.88 466,579,900.72
Notes payable 110,018,641.90 110,018,641.90 110,018,641.90
144
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Closing balance
Items Carrying amount Contract amount Within one year
Over 3
not yet 1-3 years
years
discounted
Accounts payable 922,132,610.96 951,018,098.91 951,018,098.91
Interest payable 586,554.84 586,554.84 586,554.84
Dividend
7,115,513.38 7,115,513.38 5,423,300.00 1,692,213.38
payable
Long-term payable 80,118.00 80,118.00 80,118.00
Subtotal
1,526,818,927.03 1,534,812,272.91 1,533,626,496.3 1,692,213.38 80,118.00
7
(Continued)
Opening balance
Items Carrying amount Contract amount Within one year
Over 3
not yet 1-3 years
years
discounted
Bank borrowings 403,000,000.00 413,727,139.73 413,727,139.73
Notes payable 116,816,997.65 116,816,997.65 116,816,997.65
Accounts payable 920,559,456.30 920,559,456.30 920,559,456.30
Interest payable 691,830.29 691,830.29 691,830.29
Dividend
1,946,045.39 1,946,045.39 1,946,045.39
payable
Long-term payable 80,118.00 80,118.00 80,118.00
Subtotal 1,443,094,447.63 1,453,821,587.36 1,453,741,469.36 80,118.00
(III) Market risk
Market risk is the risk that the Company may encounter fluctuation in fair value of financial instruments or future cash
flows due to changes in market price. Market risk including mainly interest risk and foreign risk.
1. Interest risk
Interest risk is the risk that an enterprise may encounter fluctuation in fair value of financial instruments or future cash flows due to
changes in market interest. The Company’s interest risk relates mainly to borrowings with floating interest rate.
As of December 31, 2015, balance of borrowings with interest accrued at certain basis point higher from statutory benchmark interest
rate totaled 458,000，000.00 yuan (December 31, 2014: 403,000,000.00 yuan). If interest rates had been 10 basis points higher or
lower and all other variables were held constant, the Company’s equity of shareholders will reduce or increase about 3,000,000.00
yuan (December 31, 2014: reduce/increase about 2,600,000.00 yuan), and the net profit will reduce or increase about 3,000,000.00
yuan (December 31, 2014: reduce/increase about 2,600,000.00 yuan).
2. Foreign currency risk
Foreign currency risk is the risk arising from changes in exchange rate. The Company is mainly operated in mainland China with a
145
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
small amount of imports and exports, whose main activities are denominated in RMB, hence, the Company bears insignificant
market risk arising from foreign exchange changes.
Please refer to notes to foreign currency monetary items for details in foreign currency financial assets and liabilities at the end of the
period.
VIII. Related party relationships and transactions
(I) Related party relationships
1. Circumstance of Parent company
(1) Parent company
Registered Holding Voting right
Business capital proportion proportion
Parent company Place of registration
nature (unit:RMB’ over the over the
0000) Company (%) Company (%)
No. 2 Tudi 2 Road,
China Putian Zhongguan village
Information
Information economy zone, 190,305.00 53.49 53.49
Industry Co., Ltd. industry
Haidian district,
Beijing
The ultimate controlling party of the Company is China Putian Information Industry Co, Ltd.
2. Please refer notes to equity in other entities for details on the Company’s subsidiaries.
3. Circumstance of Joint ventures and associates of the Company
Please refer to notes to equity in other entities for details on the Company’s significant joint ventures and associates. Details of other
joint ventures or associates carrying out related party transactions with the Company in current period or in preceding period but with
balance in current period are as follows:
Joint ventures or associates Relationships with the Company
Putian High Technology Industry Co., Ltd. Joint ventures
Nanjing Putian Cable Co., Ltd. Joint ventures
Nanjing Prachanda Live Optical Network Co., Ltd. Associates
4. Other related parties of the Company
Related parties Relationships with the Company
Nanjing Putian Swanking Electrical Co., Ltd. Controlled by the parent company
Shanghai Putian Post And Telecommunications
Controlled by the parent company
Technology Co., Ltd.
Beijing Great Gragon Information Technology
Controlled by the parent company
International Co.,Ltd.
Hangzhou Hongyan Dongbei Photoelectric Technology Co.,
Controlled by the parent company
Ltd.
Shanghai Putian Network Technology Co., Ltd. Controlled by the parent company
PUTIAN Telecommunications Co., Ltd. Controlled by the parent company
Putian Institute of Technology Co., Ltd. Controlled by the parent company
Beijing Picom Telecommunications Equipment Co., Ltd. An auxiliary unit
146
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
(II) Related party transactions
1. Purchase and sale of goods, rendering and receiving services
(1) Purchase of goods and receiving of services
Related parties Current period Preceding period
Content of transaction
cumulative comparative
Nanjing Prachanda Live
Telecommunications 26,994,180.34 25,786,962.29
Optical Network Co., Ltd.
Nanjing Putian Cable Co., Ltd. Telecommunications 21,866,639.32
Nanjing Putian Swanking
Telecommunications 541,282.14 1,085,481.44
Electrical Co., Ltd.
2) Sale of goods and rendering of services
Related parties Preceding period
Content of transaction Current period cumulative
comparative
Putian Information
Technology Company Telecommunications 10,285,252.99 4,158,609.40
Ltd.
China Putian Information
Telecommunications 42,461,277.31 33,155,902.25
Industry Co., Ltd.
Beijing Great Gragon
Information Technology Telecommunications 701,647.86
International Co.,Ltd.
Putian
Telecommunications Co., Telecommunications 361,147.44
Ltd.
Hangzhou Hongyan
Dongbei Photoelectric Telecommunications 26,299.15
Technology Co., Ltd.
Shanghai Putian Post and
Telecommunications Telecommunications 237,688.03
Technology Co., Ltd.
2. Related party leases
(1) The Company as the lessor
Lease income for Lease income for the
Lessees Types of asset leased
current period preceding period
Nanjing Prachanda Live Optical Building and
484,565.76 550,000.00
Network Co., Ltd. structure
(2) The Company as the lessee
Property
Types of Lease expenses
Lease expenses for Property services services for
Lessors asset for the preceding
current period for current period preceding
leased period
period
Putian High
Building
Technology
and 10,358,672.62 10,315,960.00 2,173,825.00 2,357,039.00
Industry Co., structure
Ltd.
3. Related party guarantees
(1) The Company and its subsidiaries as guaranteed parties
147
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Whether the
Commencement
Guarantors Amount guaranteed Maturity date guarantee is
date
mature
China Putian
Information 20,000,000.00 2015/2/3 2018/2/1 No
Industry Group Co., Ltd.
China Putian
Information 30,000,000.00 2015/9/6 2018/9/6 No
Industry Group Co., Ltd.
China Putian
Information 30,000,000.00 2015/5/29 2018/5/29 No
Industry Group Co., Ltd.
China Putian
Information 30,000,000.00 2015/2/6 2018/2/5 No
Industry Group Co., Ltd.
China Putian
Information 20,000,000.00 2015/3/11 2018/3/2 No
Industry Group Co., Ltd.
China Putian
Information 20,000,000.00 2015/8/31 2018/3/18 No
Industry Group Co., Ltd.
China Putian
Information 44,000,000.00 2015/5/7 2018/5/7 No
Industry Group Co., Ltd.
China Putian
Information 30,000,000.00 2015/6/5 2018/6/5 No
Industry Group Co., Ltd.
China Putian
Information 20,000,000.00 2015/12/3 2018/12/3 No
Industry Group Co., Ltd.
China Putian
Information 30,000,000.00 2015/1/26 2018/1/20 No
Industry Group Co., Ltd.
China Putian
Information 20,000,000.00 2015/5/29 2018/5/26 No
Industry Group Co., Ltd.
China Putian
Information 10,000,000.00 2015/3/27 2018/3/24 No
Industry Group Co., Ltd.
China Putian
Information 10,000,000.00 2015/3/27 2018/3/24 No
Industry Group Co., Ltd.
4. Key management’s emoluments
Items Current period cumulative Preceding period comparative
Key management’s emoluments 1,879,200.00 1,208,000.00
(III) Balance due to or from related parties
1. Balance due from related parties
Items Related parties Closing balance Opening balance
148
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Provision for Provision for
Book balance Book balance
bad debts bad debts
Accounts China Putian Information
30,268,243.47 188,685.58 17,160,807.69 146,988.82
receivable Industry Co., Ltd.
Accounts Putian Information
1,300,868.75 2,937,684.00
receivable Technology Company Ltd.
Accounts Shanghai Putian Network
536,399.40 84,771.32 598,079.70 47,698.47
receivable Technology Co., Ltd.
Accounts Shanghai Putian Youtong
12,978,934.00 3,893,680.20 12,978,934.00 1,297,893.40
receivable Technology Co., Ltd.
PUTIAN
Accounts
Telecommunications Co., 222,173.00 338,034.00
receivable
Ltd.
Subtotal 45,306,618.62 4,167,137.10 34,013,539.39 1,492,580.69
Other China Putian Information
1,530,000.00 1,380,000.00
receivables Industry Co., Ltd.
Beijing Picom
Other
Telecommunications 28,912,122.71 28,912,122.71 28,912,122.71 28,912,122.71
receivables
Equipment Co., Ltd.
Subtotal 30,442,122.71 28,912,122.71 30,292,122.71 28,912,122.71
2. Balance due to related parties
Items Related parties Closing balance Opening balance
Accounts Nanjing Prachanda Live
43,431,228.05 36,564,775.61
payable Optical Network Co., Ltd.
Accounts China Putian Information
12,201,518.10 17,110,160.00
payable Industry Co., Ltd.
Accounts Putian High Technology
3,528,553.00 219,850.68
payable Industry Co., Ltd.
Accounts Nanjing Putian Cable Co.,
1,091,108.20
payable Ltd.
Accounts Nanjing Putian Swanking
468,580.89 744,613.02
payable Electrical Co., Ltd.
Accounts Shanghai Putian Network
11,685.00 11,685.00
payable Technology Co., Ltd.
Accounts PUTIAN Telecommunications
22,520.00
payable Co., Ltd.
Subtotal 60,755,193.24 54,651,084.31
Advances China Putian Information
15,787,746.49 8,158,434.00
received Industry Co., Ltd.
Advances China Putian Information
12,590.00
received Industry Group
Subtotal 15,787,746.49 8,171,024.00
Other Putian High Technology
1,761,247.04 1,991,947.51
payables Industry Co., Ltd.
149
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Items Related parties Closing balance Opening balance
Other Nanjing Prachanda Live
1,372,064.01
payables Optical Network Co., Ltd.
Subtotal 1,761,247.04 3,364,011.52
IX. Commitments and contingencies
Off the balance sheet date, there are no significant commitment matters to reveal.
X. Other significant events
Segment information
1. Identification basis and accounting policies for reportable segments
Reportable segments are identified based on operating segments which are determined based on the structure of the Company’s
internal organization, management requirements and internal reporting system. An operating segment is a component of the
Company that:
(1) Engages in business activities from which it may earn revenues and incur expenses;
(2) Whose financial performance are regularly reviewed by Management to make decisions about resource to be allocated to the
segment and assess its performance; and
(3) For which financial information regarding financial position, financial performance and cash flows is available.
The Company identified reportable segments based on products. Assets and liabilities shared by different segments are allocated
between segments proportionate to their respective size.
2. Financial information of reportable segments
Products segment
Video Generic Electrical Wiring Inter-segment
Items Total
conferencing cable products products offsetting
Revenue
from main 578,207,025.57 316,044,283.49 114,664,234.43 959,577,027.40 161,949,774.97 1,806,542,795.92
operations
Cost of
main 475,727,402.54 249,759,680.29 82,309,499.28 832,273,093.22 161,949,774.97 1,478,119,900.36
operations
Total assets 415,328,134.13 265,264,522.27 158,163,410.30 1,622,892,938.53 367,978,885.58 2,093,670,119.65
Total
267,943,558.27 171,070,188.23 67,460,337.44 1,338,193,070.52 203,813,346.12 1,640,853,808.34
liabilities
XI. Notes to items of parent company financial statements
(I) Notes to items of parent company balance sheet
1. Accounts receivable
(1) Details
1) Details on categories
150
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Closing balance
Book balance Provision for bad debts
Categories
Provision Carrying amount
Proportion
Amount Amount proportion
(%)
(%)
Receivables of individually
significant amount and with
provision made on an
individual basis
Receivables with provision
made on a collective basis
442,433,780.84 99.58 16,442,036.98 3.72 425,991,743.86
using portfolios with similar
credit risk features
Portfolio 1
Portfolio 2 442,433,780.84 99.58 16,442,036.98 3.72 425,991,743.86
Receivable of individually
insignificant amount but with
1,881,238.51 0.42 1,881,238.51 100.00
provision made on an
individual basis
Total 444,315,019.35 100.00 18,323,275.49 4.12 425,991,743.86
(Continued)
Opening balance
Book balance Provision for bad debts
Categories
Provision Carrying amount
Proportion
Amount Amount proportion
(%)
(%)
Receivables of individually
significant amount and with
provision made on an
individual basis
Receivables with provision
made on a collective basis
459,359,209.84 99.60 12,051,731.57 2.62 447,307,478.27
using portfolios with similar
credit risk features
Portfolio 1
Portfolio 2 459,359,209.84 99.60 12,051,731.57 2.62 447,307,478.27
Receivable of individually
insignificant amount but with
1,837,610.12 0.40 1,837,610.12 100.00
provision made on an
individual basis
Total 461,196,819.96 100.00 13,889,341.69 3.01 447,307,478.27
2) In portfolios, accounts receivable with provision made on a collective basis with age analysis method
Closing balance
Ages
Book balance Provision for bad debts Provision proportion (%)
Within 1 year 361,532,565.56
1-2 years 36,491,469.10
151
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
2-3 years 15,815,141.60 1,581,514.16 10.00
3-4 years 16,141,443.10 4,842,432.93 30.00
4-5 years 3,505,596.10 1,402,238.43 40.00
5-6 years 1,658,569.63 1,326,855.71 80.00
Over 6 years 7,288,995.75 7,288,995.75 100.00
Subtotal 442,433,780.84 16,442,036.98 3.72
(2) Provisions made, collected or reversed in current period
Provision for bad debts made in current period totaled 4,433,933.80 yuan.
(3) Details of the top 5 debtors with largest balances
Proportion to the total
Provision for bad
Debtors Book balance balance of accounts
debts
receivable (%)
China Putian Information
29,140,372.07 6.56 132,336.00
Industry Co., Ltd.
China Telecom Co., Ltd. Jiangsu Branch
24,278,882.66 5.46 951.20
China Telecom Co., Ltd. Shanxi Branch
17,251,975.78 3.88
Agricultural Bank of China
13,577,923.61 3.06
Shanghai Putian Youtong
12,978,934.00 2.92 3,893,680.20
Technology Co., Ltd.
Subtotal
97,228,088.12 21.88 4,026,967.40
2. Other receivables
(1) Details
1) Details on categories of other receivables
Closing balance
Categories Book balance Provision for bad debts
Proportion Provision Carrying amount
Amount Amount
(%) proportion (%)
Receivables of individually
significant amount and with
32,997,289.04 43.92 32,997,289.04 100.00
provision made on an individual
basis
Receivables with provision
made on a collective basis using
42,131,015.27 56.08 4,066,650.24 9.65 38,064,365.03
portfolios with similar credit
risk features
152
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Portfolio 1 18,300,643.50 24.36 18,300,643.50
Portfolio 2 23,830,371.77 31.72 4,066,650.24 17.06 19,763,721.53
Receivable of individually
insignificant amount but with
provision made on an individual
basis
Total 75,128,304.31 100.00 37,063,939.28 49.33 38,064,365.03
(Continued)
Opening balance
Categories Book balance Provision for bad debts
Proportion Provision Carrying amount
Amount Amount
(%) proportion (%)
Receivables of individually
significant amount and with
32,997,289.04 45.71 32,997,289.04 100.00
provision made on an
individual basis
Receivables with provision
made on a collective basis
39,188,076.35 54.29 11,560,362.54 33.54 27,627,713.81
using portfolios with similar
credit risk features
Portfolio 1 4,720,257.57 6.54 4,720,257.57
Portfolio 2 34,467,818.78 47.75 11,560,362.54 33.54 22,907,456.24
Receivable of individually
insignificant amount but with
provision made on an
individual basis
Total 72,185,365.39 100.00 44,557,651.58 61.73 27,627,713.81
2) Other receivables of individually significant amount and with provision made on an individual basis
Provision for bad Provision Reasons for provision
Debtors Book balance
debts proportion (%) made
Putian
Aging longer difficult
Telecommunications 4,085,166.33 4,085,166.33 100.00
to recover
(H.K.) Co., Ltd.
Beijing Picom
Aging longer difficult
Telecommunications 28,912,122.71 28,912,122.71 100.00
to recover
Equipment Co., Ltd.
Subtotal 32,997,289.04 32,997,289.04
3) In portfolios, other receivables with provision made on a collective basis with age analysis method
Closing balance
Ages
Book balance Provision for bad debts Provision proportion (%)
Within 1 year 10,748,299.94
1-2 years 6,352,317.39
2-3 years 867,956.72 86,795.67 10.00
153
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
3-4 years 2,007,005.46 602,101.64 30.00
4-5 years 405,049.32 162,019.73 40.00
5-6 years 1,170,048.68 936,038.94 80.00
Over 6 years 2,279,694.26 2,279,694.26 100.00
Subtotal 23,830,371.77 4,066,650.24 17.06
(2) Provisions made, collected or reversed in current period
Provisions for bad debts made in current period totaled 506,287.70 yuan, and reversed in current period totaled
8,000,000.00 Yuan. It’s reversed from the Yuhua Peoples’ Government Nanning Office.
(3) Other receivables categorized by nature
Nature of receivables Closing balance Opening balance
Fund for travelling 958,788.13 1,083,920.29
Deposit as security 18,499,715.99 7,141,319.73
Temporary advance payment
54,294,881.82 63,324,673.04
receivable
Others
1,374,918.37 635,452.33
Total
75,128,304.31 72,185,365.39
(4) Details of the top 5 debtors with largest balances
Proportion to the
total balance of Provision for
Debtors Nature of receivables Book balance Age
other receivables bad debts
(%)
Beijing Picom
Temporary advance
Telecommunications 28,912,122.71 Over 6 years 38.48 28,912,122.71
payment receivable
Equipment Ltd.
Nanjing Putian
Telecommunication Temporary advance
Technology 9,563,418.20 Within 1 year 12.73
payment receivable
Co., Ltd.
Nanjing Bada
Temporary advance
Telecommunications 8,736,665.30 Within 1 year 11.63
payment receivable
Equipment Co., Ltd.
Putian
Temporary advance
Telecommunications 4,085,166.33 Over 6 years 5.44 4,085,166.33
payment receivable
(H.K.) Co., Ltd.
China Mobile
Communication Co., Deposit as security 3,150,000.00 1-3 years 4.19 5,000.00
Ltd. Jiangsu Branch
Subtotal
54,447,372.54 72.47 33,002,289.04
154
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
3. Long-term equity investments
(1) Categories
Closing balance Opening balance
Items Provision Provision
Carrying Carrying
Book balance for Book balance for
amount amount
impairment impairment
Investments in
173,787,270.64 1,910,520.00 171,876,750.64 173,787,270.64 1,910,520.00 171,876,750.64
subsidiaries
Investments in
associates and 183,247,835.37 183,247,835.37
182,120,992.57 182,120,992.57
joint ventures
Total 357,035,106.01 1,910,520.00 355,124,586.01 355,908,263.21 1,910,520.00 353,997,743.21
(2) Investments in subsidiaries
Provision for Closing
impairment balance of
Investees Opening balance Increase Decrease Closing balance
made in current provision for
period impairment
Nanjing Mennekes
57,831,011.71 57,831,011.71
Electrics Co., Ltd.
Nanjing Bada
Telecommunication
5,610,000.00 5,610,000.00
s Equipment Co.,
Ltd.
Nanjing Putian
Changle
Telecommunication 2,610,457.00 2,610,457.00
s Equipment Co.,
Ltd.
Nanjing Putian
Telecommunication
1,294,510.00 1,294,510.00
Technology
Company Ltd.
Nanjing Putian
Information
13,860,000.00 13,860,000.00
Technology
Company Ltd.
Nanjing Putian
Intelligent Building 3,320,003.45 3,320,003.45
Ltd.
Putian
Telecommunication 1,910,520.00 1,910,520.00 1,910,520.00 1,910,520.00
s (H.K.) Co., Ltd.
Nanjing Putian
Network Company 7,741,140.41 7,741,140.41
Ltd.
Nanjing Postel
Wongzhi
40,997,683.00 40,997,683.00
Telecommunication
s Co., Ltd.
Nanjing South
Telecommunication 33,175,148.00 33,175,148.00
s Co., Ltd.
155
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Provision for Closing
impairment balance of
Investees Opening balance Increase Decrease Closing balance
made in current provision for
period impairment
Nanjing Putian
Datang Information 5,436,797.07 5,436,797.07
Electronic Co., Ltd.
Subtotal 173,787,270.64 173,787,270.64 1,910,520.00 1,910,520.00
(3) Investments in associates and joint ventures
Increase/decrease
Adjustment in
Investees Opening balance Investment income
Investments Investments other
recognized under
increased decreased comprehensive
equity method
income
Joint ventures
Nanjing
Prachanda Live
12,776,624.47 766,495.54
Optical Network
Co., Ltd.
Subtotal
12,776,624.47 766,495.54
Associates
Putian High
Technology 169,344,368.10 668,115.26
Industry Co., Ltd.
Subtotal
169,344,368.10 668,115.26
Total
182,120,992.57 1,434,610.80
(Continued)
Increase/decrease
Closing
Cash balance of
Investees Changes in dividend/profit Provision for Closing balance
Others provision for
other equity declared for impairment impairment
distribution
Joint ventures
Nanjing Prachanda
Live Optical 13,543,120.01
Network Co., Ltd.
Subtotal
13,543,120.01
Associates
Putian High
Technology 307,768.00 169,704,715.36
Industry Co., Ltd.
Subtotal
307,768.00 169,704,715.36
Total
307,768.00 183,247,835.37
156
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
(II) Notes to items of the parent company income statement
1. Operating revenue/cost
Current period cumulative Preceding period comparative
Items
Revenue Cost Revenue Cost
Revenue from main
operations 736,501,708.95 643,265,771.77 1,081,338,447.22 974,895,023.69
Revenue from other
operations 83,049,624.19 74,027,628.24 71,363,511.42 61,966,007.59
Total
819,551,333.14 717,293,400.01 1,152,701,958.64 1,036,861,031.28
28
2. Investment income
Items Current period cumulative Preceding period comparative
Long-term equity investment income
by cost method 7,326,700.00 5,326,700.00
Long-term equity investment income
by equity method 1,434,610.80 865,629.69
Income from disposal of long-term
equity investment 174,759.69
Total 8,761,310.80 6,367,089.38
XII. Other supplementary information
(I) Non-recurring profit or loss
1. Schedule of non-recurring profit or loss of current period
Items Amount Remarks
Gains on disposal of non-current assets, including written-off of
provision for impairment
92,545.87
Tax refund, credit or exemption approved beyond the power of
authorities, without formal documents, or with occasionally
Government grant included in profit or loss (excluding those closely
related to operating activities, or regular government grants)
12,644,912.02
Fund possession charge from non-financial entities and included in
profit or loss
Gains on acquisition of subsidiaries, joint ventures and associates due
to the surplus of acquisition-date fair value of net identifiable assets
in acquire over the acquisition cost
Gains on non-cash assets exchange
Gains on assets consigned to the third party for investment or
management
Assets impairment loss incurred due to force majeure such as natural
disasters
Gains on debt restructuring
Entity restructuring expenses, such as staffing and integrating
expenses
157
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Items Amount Remarks
Gains on transactions with unfair value
Net profit gains on subsidiaries acquired through business
combination under common control from the beginning of the
period to the combination date
Contingent gains on non-operating activities
Gains on changes in fair value of held-for-trading financial assets and
liabilities and investment income from disposal of held-for-trading
financial assets and liabilities, and available-for-sale financial
assets, excluding those arising from hedging business related to
operating activities
The reversed provision for impairment of receivables based on
impairment testing on an individual basis
Gains on designated loans
Gains on changes in fair value of investment properties with
subsequent measurement at the fair value mode
Gains on reconciliation of current period profit or loss following
legal and regulative requirements
Management charges for consigned operations
Other non-operating revenue or expenditures 1,539,116.41
Other profit or loss satisfying the definition of non-recurring profit or
loss
Subtotal 14,276,574.30
Less: enterprise income tax affected 379,452.44
Non-controlling interest affected (after tax) 58,561.24
Net non-recurring profit or loss attributable to shareholders of the
parent company
13,838,560.62
(II) RONA and EPS
1. Details
EPS (yuan/share)
Weighted average
Profit of the reporting period
RONA (%)
Basic EPS Diluted EPS
Net profit attributable to
shareholders of ordinary shares -4.67 -0.08 -0.08
Net profit attributable to
shareholders of ordinary shares after
deducting non-recurring profit or -8.56 -0.14 -0.14
loss
2. Calculation process of weighted average RONA
158
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Current period
Items Symbols
cumulative
Net profit attributable to shareholders of ordinary shares A -16,590,830.26
Non-recurring profit or loss B 13,838,560.62
Net profit attributable to shareholders of ordinary shares
C=A-B -30,429,390.88
after deducting non-recurring profit or loss
Opening balance of net assets attributable to shareholders
D 364,179,913.14
of ordinary shares
Net assets attributable to shareholders of ordinary shares
increased due to offering of new shares or conversion of E
debts into shares
Number of months counting from the next month when the
F
net assets were increased to the end of the reporting period
Net assets attributable to shareholders of ordinary shares
decreased due to share repurchase or cash dividends G
appropriation
Number of months counting from the next month when the
H
net assets were decreased to the end of the reporting period
The currency translation reserve increased in
I -904,688.59
current period
Other Number of months counting from the next
month when the net assets were
J
increased/decreased to the end of the
reporting period 6
Number of months in the reporting period K 12
Weighted average net assets L= D+A/2
+ E×F/K-G×H/K 355,432,153.72
Weighted average RONA M=A/L -4.67%
Weighted average RONA after deducting non-recurring
N=C/L -8.56%
profit or loss
3. Calculation process of basic EPS and diluted EPS
(1) Calculation process of basic EPS
Current period
Items Symbols
cumulative
Net profit attributable to shareholders of ordinary shares A -16,590,830.26
Non-recurring profit or loss B 13,838,560.62
Net profit attributable to shareholders of ordinary shares
C=A-B -30,429,390.88
after deducting non-recurring profit or loss
Opening balance of total shares D 215,000,000.00
Number of shares increased due to conversion of reserve to
E
share capital or share dividend appropriation
Number of shares increased due to offering of new shares
F
or conversion of debts into shares
Number of months counting from the next month when the
G
share was increased to the end of the reporting period
Number of shares decreased due to share repurchase H
Number of months counting from the next month when the
I
share was decreased to the end of the reporting period
Number of shares decreased in the reporting period J
159
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Number of months in the reporting period K 12
Weighted average of outstanding ordinary shares L=D+E+F×G/K-H×I/K-J 215,000,000.00
Basic EPS M=A/L -0.08
Basic EPS after deducting non-recurring profit or loss N=C/L -0.14
(2) The diluted EPS and the basic EPS have the same calculation process.
160
Nanjing Putian Telecommunications Co., Ltd.2015 Annual Report
Section XI. Documents available for Reference
(I) Accounting statement bearing signature and seal of the principal of the company, person in charge of accounting works and person
in charge of accounting institution of the Company
(II) Original auditing report bearing seal of CPAs and signature and seal of CPA.
(III) Text of notice and original draft that public on website appointed by CSRC within report period.
Board of Director of
Nanjing Putian Telecommunications Co., Ltd.
29 March 2016
161
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