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神州长城(000018)公告正文

中冠B:2015年第三季度报告全文(英文版)

公告日期:2015-10-31

Shenzhen Victor Onward Textile Industrial Co., Ltd. The Third Quarterly Report 2015.




                   Shenzhen Victor Onward Textile Industrial Co., Ltd.
                                    The Third Quarterly Report 2015




                                                   October 2015




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Shenzhen Victor Onward Textile Industrial Co., Ltd. The Third Quarterly Report 2015.




                                                   1. Important Notes

The Board of Directors,the Supervisory Committee, the directors, the supervisors, and executives of the
Company guarantee that there are no significant omissions, fictitious or misleading statements carried in the
Quarterly Report and we will accept individual and joint responsibilities for the truthfulness, accuracy and
completeness of the Quarterly Report.



All of the directors presented the board meeting at which this Quarterly Report was examined.

Mr. Chen Lue, The Company leader, Mr. Cui Hongli, Chief financial officer and the Mr.Ren Aping, the person in
charge of the accounting department (the person in charge of the accounting )declare: the financial report carried
in this report is authentic and completed.




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Shenzhen Victor Onward Textile Industrial Co., Ltd. The Third Quarterly Report 2015.



II. Main financial data and changes of shareholders

(I)Main accounting data and financial Index

Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed
and accounting error correction or not.



□ Yes √ No




                                             End of the report period               End of last year                  Year-on –year change

         Gross assets(RMB)                             3,797,403,844.03                2,390,121,877.16                                58.88%

      Net assets attributable to the
       shareholders of the listed                         861,745,820.00                     761,471,188.44                              13.17%
            company(RMB)

                                                                                                Between beginning
                                                                                                                            Change from the
                                                                    Year-on           year       of the year to the
                                            This report period                                                              same period last
                                                                    change9%)                    end of the report
                                                                                                                                  year
                                                                                                       period

    Operating income(RMB)                    835,406,170.68                      16.44%         2,916,615,389.84                       44.38%

    Net profit attributable to the
    shareholders     of      the   listed        77,186,010.32                     62.82%           242,528,351.45                       85.81%
    company(RMB)

    Net profit after deducting of
    non-recurring              gain/loss
                                                 77,869,941.81                     64.69%           242,952,797.56                       86.31%
    attributable to the shareholders
    of listed company(RMB)

    Cash flow generated by business
                                                    --                        --                   -327,571,330.51                   749.21%
        operation, net(RMB)

    Basic           earning          per
                                                             0.46                  64.29%                       1.43                     85.71%
    share(RMB/Share)

    Diluted          gains           per
                                                             0.46                  64.29%                       1.43                     85.71%
    share(RMB/Share)(RMB/Share)

    Weighted average income/asset
                                                           8.69%                   28.93%                     29.88%                     51.06%
    ratio(%)

Items and amount of non-current gains and losses
√Applicable □Not applicable
                                                                                                                                         In RMB




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Shenzhen Victor Onward Textile Industrial Co., Ltd. The Third Quarterly Report 2015.


                                                                      Amount from beginning of
                                  Items                               the year to the end of the   Notes
                                                                            report period

    Govemment subsidy recognized in current gain and
    loss(excluding those closely related to the Company’s business                  342,246.00
    and granted under the state’s policies)

    Other non-business income and expenditures other than the
                                                                                    -908,174.15
    above

    Less:Amount of influence of income tax                                         -141,482.04

    Total                                                                            -424,446.11    --

For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses and
its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure
for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as
recurring gains and losses, it is necessary to explain the reason.
□ Applicable√ Not applicable
None of Non-recurring gain /loss items recognized as recurring gain /loss/items as defined by the information
disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period.




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Shenzhen Victor Onward Textile Industrial Co., Ltd. The Third Quarterly Report 2015.


(II) Total number of shareholders and shareholding of top 10 shareholders by the end of the report period

(1) Total number of common shareholders and shareholding of top 10 common shareholders by the end of the
report period

                                                                                                                              In shares

    Total number of shareholders at
                                                                                                                               11,528
    the end of report period

                                            Particular about shares held by top ten shareholders

                                                                                          Amount of
                                                           Share                           tradable
                                      Properties of
       Pledging or freezing                              proportio       Quantity         shares with       Status of the
                                      shareholder                                                                           Quantity
                                                           n%                            Conditional           shares
                                                                                             held

                                 Domestic Non-
    Union Holdings Co., Ltd.     State-owned legal         25.51%        43,141,032                     0
                                 person

    STYLE-SUCCESS                Foreign Legal
                                                           14.46%        24,466,029                     0
    LIMITED                      person

    Rich Crown Investment        Foreign Legal
                                                            3.62%          6,114,556                    0
    Co., Ltd.                    person

                                 Domestic Non-
    Union Development
                                 State-owned legal          3.36%          5,681,089                    0
    Group Co., Ltd.
                                 person

                                 Domestic Non-
    Liuzhou Jiali Real estate
                                 State-owned legal          2.13%          3,600,000                    0
    Development Co., ltd.
                                 person

    Agricultural Bank of
    China-Changxin
    Domestic demand growth       Other                      1.66%          2,809,914                    0
    Securities Investment
    Fund

                                 Foreign Legal
    KGI ASIA LIMITED                                        1.19%          2,016,260                    0
                                 person

    Bank of China-
    Huatai-PineBridge
    Flourishing China Stock      Other                      1.18%          1,996,293                    0
    Open-end securities
    investment fund

    ICBC-South Innovation
                                 Other                      1.09%          1,839,802                    0
     Economy Mixed


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Shenzhen Victor Onward Textile Industrial Co., Ltd. The Third Quarterly Report 2015.


     securities Investment
     fund

    Zeng Ying                                               1.03%         1,750,000                  0

                                        Shareholding of top 10 shareholders of unrestricted shares

                                          Quantity of unrestricted shares held at the                    Share type
           Name of the shareholder
                                                 end of the reporting period                    Share type              Quantity

    Union Holdings Co., Ltd.                                             43,141,032     RMB Common shares

                                                                                        Foreign shares placed in
    STYLE-SUCCESS LIMITED                                                24,466,029
                                                                                        domestic exchange

                                                                                        Foreign shares placed in
    Rich Crown Investment Co., Ltd.                                        6,114,556
                                                                                        domestic exchange

    Union Development Group Co.,
                                                                          5,681,089     RMB Common shares
    Ltd.

    Liuzhou Jiali Real estate
                                                                          3,600,000     RMB Common shares
    Development Co., ltd.

    Agricultural Bank of China-
    Changxin Domestic demand
                                                                          2,809,914     RMB Common shares
    growth Securities Investment
    Fund

                                                                                        Foreign shares placed in
    KGI ASIA LIMITED                                                      2,016,260
                                                                                        domestic exchange

    Bank of China-
    Huatai-PineBridge Flourishing
                                                                          1,996,293     RMB Common shares
    China Stock Open-end securities
    investment fund

    ICBC-South Innovation
     Economy Mixed securities                                             1,839,802     RMB Common shares
     Investment fund

                                                                                        Foreign shares placed in
    Zeng Ying                                                             1,750,000
                                                                                        domestic exchange

                                          Union Development Group Ltd. is the controlling shareholder of the above-mentioned
    Explanation on associated
                                          largest shareholder Shenzhen Union Holdings Ltd. and third shareholder Rich Crown
    relationship
                                          Investment Co., Ltd. The other tradable shareholders neither knew whether there exists
    among the aforesaid shareholders
                                          associated relationship between them.

    Participation of top 10
                                          Among the shareholders above, Liuzhou Jiali Real estate Development Co., ltd. holds
    unconditional common share
                                          3,600,000 shares of the Company through stock account with credit transaction and
    shareholders in securities margin
                                          guarantee of Guohai Securities Co., Ltd.
    trading (if any)

Agreed re-purchasing by the Company’s top 10 shareholders of common shares and top 10 shareholders of
unconditional common shares in the report period

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Shenzhen Victor Onward Textile Industrial Co., Ltd. The Third Quarterly Report 2015.


□ Yes √ No
No agreed re-purchasing is performed by the Company’s shareholders in the report period.

(2) Total number of preferred shareholders and shareholding of top 10 preferred shareholders by the end of the
report period

□ Applicable√ Not applicable




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Shenzhen Victor Onward Textile Industrial Co., Ltd. The Third Quarterly Report 2015.



III. Significant Events

I. Major changes of main accounting statement items and financial indicators in the reporting period, as well as
reasons for the changes
√ Applicable □ Not applicable
1.Analysis of the reason for big change of the items of balance sheet of the Company as of the end of the report
period.
                             End of term           Beginning of term      Scale of change             Remarks on the change
Items


                                                                                            Caused by the increase of the note
Bills receivable          36,733,636.27         3,175,226.00             1,056.88%          receivable adopted with clearing at
                                                                                            the current period

                                                                                            Mainly caused by the successful
                                                                                            progress of the ongoing big project,
Account receivable        3,096,090,832.14      1,784,235,686.61         73.52%             which brought in creases in project
                                                                                            income and no payment has been
                                                                                            received during the reporting period

                                                                                            Caused by the increase in advance
Prepayments               57,972,293.66         34,811,508.11            66.53%
                                                                                            payment for engineering project

                                                                                            Caused by the increase of cash
Other account receivable 209,536,537.00         143,622,679.85           45.89%
                                                                                            deposit

                                                                                            Mainly caused by the tower crane
    Fixed assets          37,565,937.18         10,346,069.91            263.09%
                                                                                            purchase of the overseas project

Long-germ expenses to                                                                       Mainly caused by the increase of the
                          27,042,878.35         10,498,658.53            157.58%
be amortized                                                                                overseas guarantee fee

                                                                                            Caused by payment amount of house
Other non-current asset   6,960,493.07          5,104,235.91             36.37%
                                                                                            purchase

                                                                                            Caused by the increase of the current
Short-term loans          392,657,285.27        225,000,000.00           74.51%
                                                                                            bank loan

                                                                                            Mainly caused by the superior
    Bill payable          159,941,731.69        88,862,834.52            79.99%             clearing adopted in the method of
                                                                                            settlement for the current suppliers

                                                                                            Caused by the expansion of the
    Account payable       1,534,198,224.56      1,048,283,935.01         46.35%
                                                                                            Company’s scale.

                                                                                            Caused by the expansion of the
Tax payable               317,638,230.74        157,790,765.34           101.30%
                                                                                            Company

                                                                                            Caused by the increase in business
Other account payable     455,286,895.18        32,683,538.73            1,293.02%
                                                                                            unit’s inter-bank lending


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Shenzhen Victor Onward Textile Industrial Co., Ltd. The Third Quarterly Report 2015.


                                                                                               Caused by the increase of the
    Long-term loan          19,779,949.05                                   100.00%
                                                                                               long-term bank loan

2. Analysis of the reason for big change of the items of profit statement


                        The beginning of the year Same period of the         Scale of change           Remarks on the change
Items
                     to end of the report period previous year

                                                                                                Caused by the expansion of the
Business income         2,916,615,389.84           2,020,135,677.89         44.38%
                                                                                                Company’s business scale

                                                                                                Caused by the expansion of the
                                                                                                Company’s business scale, which
Business cost           2,344,122,874.48           1,666,771,847.04         40.64%
                                                                                                brought in increases in operation
                                                                                                income.

                                                                                                Mainly caused by the decrease of
Sales expense           10,539,011.91              16,460,789.92            -35.98%
                                                                                                marketing staff

Administrative                                                                                  Caused by the expansion of the
                        107,924,317.65             46,286,727.96            133.16%
expense                                                                                         Company’s business scale

                                                                                                Caused by the increase in the
                                                                                                short-term borrowing and the
                                                                                                long-term borrowing of the
Financial expenses      24,205,661.13              11,859,349.14            104.11%
                                                                                                Company, and the increase in
                                                                                                amortization of overseas guarantee
                                                                                                fee

Asset impairment                                                                                Caused by in the increase of the
                        48,824,874.34              35,036,914.99            39.35%
loss                                                                                            Company’s bad-debt provision

3.Analysis of the reason for big change of the items of cash flow statement of the Company.
                            The beginning of the                              Scale of change             Remarks on the change
                                                       Same period of the
Items                      year to end of the report
                                                       previous year
                           period

                                                                                                  Mainly caused by the short credit
Net Cash flow generated
                            -327,571,330.51             -38,573,821.92       749.21%              payment term of the suppliers for
by business operation
                                                                                                  overseas project

Net cash flow generated                                                                           Caused by the purchase of the
                            -35,910,259.45              -22,717,808.73       58.07%
by investment                                                                                     current overseas project equipment

Net cash flow generated                                                                           Caused by the increase of the
                            235,414,152.87              60,517,730.20        289.00%
by financing                                                                                      current bank loan


II. The progress of significant events and influence, as well as the analysis and explanation on resolving proposal

√ Applicable □ Not applicable

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Shenzhen Victor Onward Textile Industrial Co., Ltd. The Third Quarterly Report 2015.


1. Partial Factories of the Company Levied by the Government. “The Announcement on a part of Shenzhen Victor

Onward Textile Industrial Co., Ltd. Factory Buildings Collected by the Government”, the Management

Committee of Shenzhen Dapeng District released “The Decision Announcement on the Management Committee

of Shenzhen Dapeng New District Collecting Houses” which says, the committee decided to collect the related

housing estates located in Kuixin community for the need to build a people’s hospital in Dapeng new district. The

housing estates which would be collected this time include Kuichong Company’s part of the buildings which

haven’t got estate right certificate, and the area of these buildings is 18,000 square meters. The matters mentioned

above were announced in Securities Times, Hong Kong Commercial Daily and www.cninfo.com.cn. on June 24,

2014, the Announcement No.: 2014-0673. No compensation scheme or arrangement for this item has been issued

yet.

 2.Reorganization of the Comapny’s Significant Asset. On June 16, 2014, the Company started the arrangement

for significant asset reorganization. By means of significant asset replacement and issue shares to buy asset and

raise matching funds and related transactions, the Company utilized the original total assets and liabilities as

place-out asset, replacing asset with partial equivalence of Sino Great Wall International Engineering Co., Ltd.’s

shares held by all shareholders, of which the differential section would be issued to all shareholders of Sino Great

Wall    International Engineering Co., Ltd. to buy by listed company. Meanwhile, the matching funds of issue

shares to Chen Lue and Hui Tong No.2 for raising the reorganization was RMB 255 million.

At present, significant asset replacement and issue shares to buy asset and raise matching funds and related
transactions have been partially completed, of which the partial asset delivery and share registration have been
fully completed. As for the part of raising matching funds and issuing shares are being carried out actively.For
relevant matters, please refer to “The Announcement on the Reorganization and Suspension of Major Assets in
Shenzhen Victor Onward Textile Industrial Co., Ltd ”, “The Announcement on the Progress of Major Assets’
Reorganization in Shenzhen Victor Onward Textile Industrial Co., Ltd ”, “The Announcement on the Application
for Continuous Suspension of Major Assets after the Expiration of Last Suspension in Shenzhen Victor Onward
Textile                              Industrial                             Co.,                             Ltd”,
“The Proposal of the Major Assets’ Reorganization and issued shares to buy assets and raise matching funds
 in Shenzhen Victor Onward Textile Industrial Co., Ltd ”,“The Proposal of the Major Assets’ Reorganization and i
ssued shares to buy assets and raise matching funds in Shenzhen Victor Onward Textile Industrial Co., Ltd ”“Th
e Proposal of the Major Assets’ Reorganization and issued shares to buy assets and raise matching funds in Shen
zhen Victor Onward Textile Industrial Co., Ltd.” ( draft ) ”,“The Announcement of CSRC’s Administrative
Permissive Application and Acceptance of Shenzhen Victor Onward Textile Industrial Co., Ltd. on Significant
Asset Replacement And Issuing Shares to Buy Assets And The Related Transaction And Raising Matching
Funds”, “The Announcement of Resolutions of the First provisional shareholders' general meeting of
Shenzhen Victor Onward Textile Industrial Co., Ltd.”
 “The Announcement of The Scenario of East Asia Co.,Ltd on Changing Significant Asset Replacement And


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Shenzhen Victor Onward Textile Industrial Co., Ltd. The Third Quarterly Report 2015.


Issuing Shares to Buy Assets And Raising Matching Funds”, “The Reply of Shenzhen Victor Onward Textile
Industrial Co., Ltd. on A Feedback Notice(No.150551) of CSRC’s Administrative Permissive Projects Audits”,
“The Announcement of Shenzhen Victor Onward Textile Industrial Co., Ltd. on Significant Asset Replacement
And Issuing Shares to Buy Assets And The Related Transaction And Raising Matching Funds conditionally
passing the audits of The Merger And Reorganization Audit Committee for Listed Companies of CRSC And The
Resumption of Trade for The Corporate Stock”, “The Announcement of Shenzhen Victor Onward Textile
Industrial Co., Ltd. on Significant Asset Replacement And Issuing Shares to Buy Assets And The Related
Transaction approved by CRSC”, “The Revised Announcement of The Report of Shenzhen Victor Onward
Textile Industrial Co., Ltd. on Significant Asset Replacement And Issuing Shares to Buy Assets And The Related
Transaction And Raising Matching Funds”,“The Announcement of The Delivered Transfer with Placing Asset of
Shenzhen Victor Onward Textile Industrial Co., Ltd. on Significant Asset Replacement And Issuing Shares to
Buy Assets And The Related Transaction And Raising Matching Funds”, “The Announcement of The Delivered
Transfer with Placing Asset of Shenzhen Victor Onward Textile Industrial Co., Ltd. on Significant Asset
Replacement And Issuing Shares to set out Assets And The Related Transaction And Raising Matching
Funds”and “Newly Added Share Changes and Listing Announcement of Shenzhen Victor Onward Textile
Industrial Co., Ltd.”. which were released in Securities Times,Hong Kong Commercial Daily and
www.cninfo.com.cn on June 16, 2014, June 23,2014, June 30, 2014, July7, 2014, July 14, 2014, July 21,2014,
July 28, 2014, August 4, 2014, August 11, 2014, August 15, 2014, August 22, 2014,August 29, 2014, September
5,2014, September 12, 2014, September 19, 2014, September 26, 2014, October 10, 2014, October 15, 2014,
November 14, 2014, December 15, 2014, January 14, 2015, February 13, 2015, March 27, 2015, April 25, 2015,
May 12, 2015, May 28, 2015, June 4, 2015, June 26, 2015, July 28, 2015 , August 4,2015, September 24,2015 and
October 13,2015 . The above asset reorganizations and related work have been underway.

After this asset reorganization, textile printing and dyeing, the company’s main business, has been changed into

engineering design and construction ,which apparently increased the profitability.

                                                                      Description of the website for disclosing provisional
 Overview of material matters                Date of disclosing
                                                                                        announcements

 The      Announcement         on     the
 Reorganization and Suspension of                                 Announcement No. 2014-0665,Securities Times,Hong Kong
                                            June 16,2014
 Major Assets in Shenzhen Victor                                           Commercial Daily and www.cninfo.com.cn
 Onward Textile Industrial Co., Ltd

 On October 13,2014 , The 18th
 (Provisional) Meeting of the Seventh
                                                                    The Proposal of The Report of Shenzhen Victor Onward
 Board    of   Directors   adopted    the
                                                                  Textile Industrial Co., Ltd. on Significant Asset Replacement
 Proposal of The Report of Shenzhen
                                                                       And Issuing Shares to Buy Assets And The Related
 Victor Onward Textile Industrial Co.,      October 15,2014
                                                                          Transaction And Raising Matching Funds on
 Ltd. on Significant Asset Replacement
                                                                  Announcement .No. 2015-0686,Securities Times,Hong Kong
 And Issuing Shares to Buy Assets And
                                                                           Commercial Daily and www.cninfo.com.cn
 The Related Transaction And Raising
 Matching Funds

  The Major Assets’ Reorganization and                           The Major Assets’ Reorganization and issued shares to buy a
  issued shares to buy assets and raise     February 13,2015      ssets and raise matching funds in Shenzhen Victor Onward
 matching funds in Shenzhen Victor O                              Textile Industrial Co., Ltd.(draft)and Summary . Securities


11
Shenzhen Victor Onward Textile Industrial Co., Ltd. The Third Quarterly Report 2015.


 nward Textile Industrial Co., Ltd.                                          Times,Hong Kong Commercial Daily and
 (draft)                                                                             www.cninfo.com.cn



 The                           Announcement
 of the Major Assets’ Reorganization an
 d issued shares to buy assets and raise
 matching       funds     by        the    China                       Announcement No. 2015-06108,Securities Times,Hong
                                                    March 27,2015
 Securities Regulatory Commission ad                                     Kong Commercial Daily and www.cninfo.com.cn.
 ministrative license application accepta
 nce in Shenzhen Victor                   Onward
 Textile Industrial Co., Ltd

 The      Announcement         of     Shenzhen
 Victor Onward Textile Industrial Co.,
 Ltd. on Significant Asset Replacement                                 Announcement No. 2015-06129,Securities Times,Hong
                                                    July 28,2015
 And Issuing Shares to Buy Assets And                                    Kong Commercial Daily and www.cninfo.com.cn.
 The Related Transaction approved by
 CRSC”

 The Revised Announcement of The
 Report of Shenzhen Victor Onward
 Textile     Industrial      Co.,     Ltd.    on
                                                                       Announcement No. 2015-06130,Securities Times,Hong
 Significant Asset Replacement And                  July 28,2015
                                                                         Kong Commercial Daily and www.cninfo.com.cn.
 Issuing Shares to Buy Assets And The
 Related      Transaction      And        Raising
 Matching Funds.

 The Announcement of The Delivered
 Transfer      with     Placing      Asset     of
 Shenzhen       Victor    Onward          Textile
 Industrial Co., Ltd. on Significant                                   Announcement No. 2015-06131,Securities Times,Hong
                                                    August 4,2015
 Asset Replacement And Issuing Shares                                    Kong Commercial Daily and www.cninfo.com.cn.
 to Buy Assets And The Related
 Transaction And Raising Matching
 Funds.

  The Newly Added Share Changes and
     Listing Announcement of Shenzhen                                  Announcement No. 2015-06137,Securities Times,Hong
                                                    October 13,2015
     Victor Onward Textile Industrial Co.,                               Kong Commercial Daily and www.cninfo.com.cn.
                      Ltd.


III.The commitments of the Company and its shareholders hold over 5% of the Company’s total shares in the
report year of extending to the report year from previous year.

√ Applicable □ Not applicable
          Commitment                      Commitment                  Contents                    Time of    Perio   Fulfill


12
Shenzhen Victor Onward Textile Industrial Co., Ltd. The Third Quarterly Report 2015.


                                   maker                                                                         making     d of     ment
                                                                                                                commitme   comm
                                                                                                                   nt      itmen
                                                                                                                                t

 Commitment on share         No                  No                                                                        No       No
 reform                      No                  No                                                                        No       No

 Commitment in the
 acquisition report or the   No                  No                                                                        No       No
 report on equity changes

                                                 Shares acquired by purchases of assets
                                                 through issuing shares: “I will not transfer the
                                                 new shares of Victor Onward Holdings
                                                 acquired through this restructuring, including
                                                 but not limited to the public transfer through
                                                 the stock market or by agreement, and I will
                                                 not entrust anybody else to manage my shares
                                                 of Victor Onward Holdings, within 36 months
                                                 from the date new shares list and before the
                                                 date I’ve carried out my obligations of
                                                 performance      compensation            under          this
                                                 restructuring(subject to whatever is early,
                                                 hereinafter referred to as “lock-up periods”).

                                                 If the closing price of shares of Victor Onward
                                                 Holdings were lower than this issue price for                             36       Strict
 Commitment made upon        Chen Lue, He                                                                       March
                                                 20 continuous trading days in 6 months after                              mont     perfor
 the assets replacement      Feiyan                                                                             19,2015
                                                 the   restructuring        transaction     has      been                  hs       ming

                                                 completed, or the final closing price were
                                                 lower than this issue price 6 months after the
                                                 transaction has been completed, the lock-up
                                                 periods of my shares of Victor Onward
                                                 Holdings are automatically prolonged for 6
                                                 months. (The above-mentioned issue price
                                                 will be calculated according to the price after
                                                 the   adjustment      of     ex-dividend,        etc.     if
                                                 ex-dividend    behaviors        of   the    company,
                                                 including distribution of dividends, giving
                                                 bonus, conversion of share capital, rationing
                                                 shares, and etc., were happened during the
                                                 above-mentioned periods.

                                                 If    the   restructuring       transaction         were


13
Shenzhen Victor Onward Textile Industrial Co., Ltd. The Third Quarterly Report 2015.


                                                 investigated by judicial authorities or China
                                                 Securities Regulatory Commission due to
                                                 false record, misleading statement or major
                                                 omission of the information provided or
                                                 disclosed, I will not transfer my shares of the
                                                 company before the conclusion of the case has
                                                 been made clear.
                                                 After the above-mentioned lock-up periods, I
                                                 will sell or transfer the new shares of the
                                                 company acquired from this restructuring
                                                 following relevant regulations of China
                                                 Securities Regulatory commission and
                                                 Shenzhen Stock Exchange.

                                                 Shares acquired by matching funds raised: “I
                                                 will not transfer the new shares of Victor
                                                 Onward Holdings acquired through this
                                                 issuing by any way, including but not limited                         Strict
                                                                                                               36
                                                 to the public transfer through the stock market   March                perfo
                             Chen Lue                                                                          mont
                                                 or by agreement, within 36 months from the        19,2015              rmin
                                                                                                               hs
                                                                                                                        g
                                                 date new shares list.
                                                 If regulation rules or regulators have longer
                                                 requirements for lock-up periods, it should be
                                                 executed accordingly.

                                                 Up to the issue day of the letter, I and other
                                                 corporations controlled by me haven’t
                                                 possessed funds of Sino Great Wall; After the
                                                 transaction is completed, I and other
                                                 companies controlled by me (if any), except
                                                 for listed companies and their holding
                                                 subsidiaries, will not possess the funds of
                                                 listed companies or Sino Great Wall by any
                                                 way, including cash in advance, other                                 Strict
                                                                                                   September   Long-
                             Chen Lue            expenses, direct or indirect loans, assumption,                       perfor
                                                                                                    19,2015    term
                                                 etc. and try our best to avoid fund intercourse                       ming
                                                 with listed companies or Sino Great Wall,
                                                 which has nothing to do with normal
                                                 operations. If Sino Great Wall got penalized
                                                 by government administration departments
                                                 due to the money lending which was
                                                 happened before the transaction, I will bear
                                                 the total compensation for the company’s loss
                                                 resulting from it by cash in order to guarantee


14
Shenzhen Victor Onward Textile Industrial Co., Ltd. The Third Quarterly Report 2015.


                                                 Sino Great Wall won’t suffer any loss.
                                                 Meanwhile, I will actively urge Sino Great
                                                 Wall to establish complete inner control
                                                 system and funds management system within
                                                 lawful authority.

                                                 In view of the fact that the houses rented by
                                                 Sino Great Wall and it’s son subsidiaries,
                                                 subsidiaries, haven’t rental registration, I
                                                 promise, if Sino Great Wall and its son                                  Strict
                                                                                                        March     Long-
                             Chen Lue            subsidiaries, subsidiaries, were penalized by                            perfor
                                                                                                        19,2015   term
                                                 real     estate        management    department   or                     ming

                                                 suffered other losses resulting from it, I agree
                                                 to compensate the loss of the company by
                                                 cash.

                                                 During the reporting period, the project which
                                                 Sino Great Wall is involved in is the
                                                 decoration engineering construction project of
                                                 Libo Grand Hotel (hereinafter referred to as
                                                 “Libo project”) which the company contracted
                                                 before the bidding process. Sino Great Wall is
                                                 not involved in any other projects except for
                                                 Libo project before bidding process. As to the
                                                 violating issues existed in the Libo project, I
                                                                                                                          Strict
                                                 promise as follows: if Sino Great Wall got             March     Long-
                             Chen Lue                                                                                     perfor
                                                 penalized         by    government    administration   19,2015   term
                                                                                                                          ming
                                                 departments or suffered any economic loss
                                                 resulted from it, I will compensate the
                                                 company by cash; Meanwhile, I, within lawful
                                                 authority, will also promise to urge the
                                                 company to undertake related construction
                                                 projects legally so as to avoid violating issues
                                                 happened before implementation of bidding
                                                 process, i.e., at the time for construction again.



                                                 “1. Up to October 13th,2014, the related
                                                 expenses of the litigation and arbitration
                                                                                                                          Strict
                                                 cases,      including        the     actual   price,   March     Long-
                             Chen Lue                                                                                     perfor
                                                 compensation, penalty, ligation costs, etc.            19,2015   term
                                                                                                                          ming
                                                 which the parent-subsidiary companies of
                                                 Sino Great Wall needs to pay caused by the


15
Shenzhen Victor Onward Textile Industrial Co., Ltd. The Third Quarterly Report 2015.


                                                 final results of ligation and arbitration cases,
                                                 exceed the amount of liabilities which
                                                 recognized in the “Audit Report” made for
                                                 Sino Great Wall by Ruihua CPA (Special
                                                 Ordinary Partnership) on the basis of the audit
                                                 base day of July 31st, 2014, I promise to bear
                                                 the balance by cash unconditionally so as to
                                                 guarantee the parent-subsidiaries of Sino
                                                 Great Wall won’t suffer any loss.

                                                 2. This commitment letter is irrevocable.
                                                 ”

                                                 1. On condition that ownership defect exists in
                                                 the lease of house property of
                                                 parent-subsidiary companies of Sino Great
                                                 Wall and its subsidiary corporation, which
                                                 resulted in inability for parent-subsidiary
                                                 companies of Sino Great Wall and its
                                                 subsidiary corporation to continue leasing this
                                                 house property but having to relocate, or
                                                 parent-subsidiary companies of Sino Great
                                                 Wall and its subsidiary corporation can’t
                                                 timely find suitable workplace for lawful
                                                 operation in related area, I will undertake to
                                                 compensate by cash for parent-subsidiary
                                                                                                                      Strict
                                                 companies of Sino Great Wall’s losses which       March     Long-
                             Chen Lue                                                                                 perfor
                                                 are caused by operation and finance due to the     19,2015   term
                                                                                                                      ming
                                                 above-mentioned matters.
                                                 2. I undertake to unconditionally bear the
                                                 relevant fines by cash for parent-subsidiary
                                                 companies of Sino Great Wall on condition
                                                 that the rental house property of
                                                 parent-subsidiary companies of Sino Great
                                                 Wall and its subsidiary corporation is in
                                                 absence of handling procedures for filing
                                                 house leasing ,which resulted in that
                                                 parent-subsidiary companies of Sino Great
                                                 Wall and its subsidiary corporation are fined
                                                 by property administrative department.
                                                 3.The commitment letter is irrevocable.

                                                 “In condition that parent-subsidiary                                Strict
                                                                                                    March     Long-
                             Chen Lue            companies of Sino Great Wall or its son                              perfor
                                                                                                    19,2015   term
                                                 subsidiary haven’t paid social security or                          ming


16
Shenzhen Victor Onward Textile Industrial Co., Ltd. The Third Quarterly Report 2015.


                                                 housing fund for staff according to law, which
                                                 resulted in any losses to Sino Great Wall ,
                                                 including the competent authorities’
                                                 requirement for Sino Great Wall or its
                                                 subsidiary to make supplementary payment, to
                                                 be punished and resourced, I will bear by
                                                 full-amount cash for the fee of supplemental
                                                 payment and the expense and fee for being
                                                 punished or resourced, which is to guarantee
                                                 Sino Great Wall and its subsidiary to avoid
                                                 suffering from any loss    ”

                                                 “At present, Suzhou Lvbang has possessed
                                                 one state-own land use right, of which the
                                                 land certificate is Suzhou Guo Yong(2014)
                                                 No.Y2014086”, locates in Danan Village,
                                                 Dadian Town, Yongqiao District, Suzhou City
                                                 with 32,966 square meters of area and the
                                                 purpose for industry. Suzhou Lvbang
                                                 possesses its own factory with 9,843.87
                                                 square meters of area above-mentioned, which
                                                 is the building reserved on the former selling
                                                 land. Suzhou Lvbang is carrying out
                                                 refurnishing and reconstruction for this
                                                 factory and has acquired “License of
                                                 Construction Land Planning ”with
                                                 No.2014-08-001 approved and issued by
                                                 Yongqiao District, Suzhou City’s housing and                      Strict
                                                                                                  March     Long-
                             Chen Lue            rural construction bureau, of which other                          perfor
                                                                                                  19,2015   term
                                                 examination and approval procedures of                             ming
                                                 construction are in the process of handling
                                                 “I undertake to actively supervise and urge
                                                 Suzhou Lvbang on handling procedures of the
                                                 approval process involved with factor
                                                 refurnishing and reconstruction, and which is
                                                 suffered from administrative punishment by
                                                 relevant competent authorities in reason of
                                                 claiming certificate of title, or in which any
                                                 dispute or controversy exist in construction
                                                 and ownership, which shall be my
                                                 responsibility to carry out solution, and I
                                                 undertake to compensate by cash for Suzhou
                                                 Lvbang’s losses which are due to this matter,
                                                 guaranteeing no losses occur to Sino Great
                                                 Wall and Suzhou Lvbang for this matter.


17
Shenzhen Victor Onward Textile Industrial Co., Ltd. The Third Quarterly Report 2015.


                                                 ”

                                                 “According to the “Agreement of Significant
                                                 Asset Replacement and Issue of Share to Buy
                                                 Asset”(hereinafter referred to as
                                                 “Agreement”) signed among Victor Onward
                                                 Holdings, all shareholders of Sino Great Wall
                                                 and Union Development Group Co., Ltd
                                                 (hereinafter referred to as“ Union Group”) on
                                                 October 13, 2014, all the creditor’s rights and
                                                 liabilities related to place-out asset before the
                                                 delivery date of Victor Onward Holdings shall
                                                 be Union Group’s responsibility to carry out
                                                 solution; After the asset delivery date, if any
                                                 losses occur to Victor Onward Holdings in
                                                 reason of the liability transfer of asset
                                                                                                                       Strict
                                                 delivery, personnel placement, unsettled            March     Long-
                             Chen Lue                                                                                  perfor
                                                 dispute or controversy and other                    19,2015   term
                                                                                                                       ming
                                                 compensation related to place-out asset,
                                                 payment obligation and punishment, Union
                                                 Group or the specified third party shall
                                                 sufficiently compensate all losses for Victor
                                                 Onward Holdings for the above matters.
                                                 I undertake, if Union Group and the specified
                                                 third party refuse to compensate the losses
                                                 caused by the above mentioned matters for
                                                 Victor Onward Holdings according to
                                                 the“ Agreement”, I will compensate by cash
                                                 for the Victor Onward Company within 5
                                                 working day in advance. Meanwhile, I will
                                                 reserve the resource rights for Union Group
                                                 and the specified third party.

                                                 According to“ Agreement of Shenzhen Victor
                                                 Onward Textile Industrial Co., Ltd., Chen Lue
                                                 and He Feiyan Concerning on Performance
                                                 Compensation” and its supplemental
                                                 agreement , Chen Lue’s promised Sino Great
                                                                                                                       Strict
                             Chen Lue, He        Wall   that the net profit deducted by              May 11,   Long-
                                                                                                                       perfor
                             Feiyan              incidental losses and attributable to the parent    2015      term
                                                                                                                       ming
                                                 companies’ owners after audition of 2015,
                                                 2016 and 2017 shall be respectively more than
                                                 RMB 345.8 million, RMB 438.5 million and
                                                 RMB 538.2 million. If the net profit of Sino
                                                 Great Wall is less than the promised net profit



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Shenzhen Victor Onward Textile Industrial Co., Ltd. The Third Quarterly Report 2015.


                                                 mentioned above , Chen Lue and He Feiyan
                                                 will compensate for listed company in
                                                 accordance with “Performance Compensation
                                                 Agreement” and its supplemental agreement.

                                                 1. This reorganization is planned to place in
                                                 asset. At present, complete separation has
                                                 existed between me or other enterprises under
                                                 my possession (if any) and the listed company
                                                 in staff, asset, finance, institution and business
                                                 of Sino Great Wall. Independence exists in
                                                 both staff, asset, finance, institution and
                                                 business and no confusion exists.
                                                 2. I undertake, after this reorganization, to
                             Chen Lue; He        ensure the continued complete separation
                             Feiyan, Wuxi        between me or other enterprises under my
                             Hengtai Jiuding     possession(if any) and the listed company in
                             Assets              staff, asset, finance, institution and business,
                             Management          sustaining the independence in the listed
                             Centre              company’s staff, asset, finance, institution and
                             (LP);Yantai       business, as follows:
                             Zhaoxuan
                                                 (1).The Ensurance of Independence for Listed
                             Yuantai Jiuding
                                                 Company’s Personnel
                             Venture
                                                 Ensure that the general manager, the                                     Strict
                             Investment                                                               September   Long-
                                                 vice-general manger, the chief financial                                 perfor
                             Centre                                                                    30,2015    term
                                                 officer, the board secretary and the senior                              ming
                             (LP);Suzhou
                                                 executives of the Company only accept salary
                             Taiyao
                                                 in listed company, including no holding of any
                             Zhongshan
                                                 post except director and supervisor in my
                             Jiuding
                                                 enterprise or other enterprises under my
                             Investment
                                                 possession.
                             Centre
                                                 2.Ensure the complete independence exists
                             (LP);Jiaxing
                                                 among the listed company’s labor, personnel,
                             Jiahe Jiuding
                                                 and salary management and me.
                             Investment
                             Centre(LP)        3. The director, supervisor, general manager
                                                 and other senior executives recommended by
                                                 me have all been through the legal procedures,
                                                 and I will not intervene the company’s board
                                                 and the shareholder’s decision for appointing
                                                 and dismissing personnel by exercising
                                                 official power.
                                                   (2)The Ensurance of the Asset Independence
                                                 of Listed Company
                                                 1.Ensure that the listed company possesses


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Shenzhen Victor Onward Textile Industrial Co., Ltd. The Third Quarterly Report 2015.


                                                 business system related to operation and the
                                                 relevant completely-independent asset.
                                                 2.Ensure that no occupation of mine exists in
                                                 capitals and assets of the listed company.
                                                 3.The Ensurance of the Financial
                                                 Independence of Listed Company
                                                 1.Ensure that the independent finance
                                                 department and the independent financial
                                                 calculating system set up by the listed
                                                 company, which possess normative and
                                                 independent financial and accounting rules.
                                                 2. Ensure that the listed company
                                                 independently opens a bank account, not
                                                 sharing the same bank account with me.
                                                 3.Ensure that the financial staff of the listed
                                                 company holds no part-time post in my
                                                 enterprise and other enterprises under my
                                                 possession.
                                                 4. Ensure that the listed company pays taxes
                                                 according to law.
                                                 5. Ensure that the listed company makes the
                                                 financial decision-making independently, I
                                                 will not intervene the utilization of the listed
                                                 company’s capital.
                                                 (4)The Ensurance of the Institutional
                                                 Independence of Listed Company
                                                 1.Ensure that the listed company sets up
                                                 perfect governance structure for the share
                                                 company’s legal person, which possesses
                                                 independent and complete institutional
                                                 framework
                                                 2.Ensure that the shareholder’s meeting, the
                                                 board of director, the independent director, the
                                                 supervisor and the general managers exercise
                                                 official powers according to laws, regulations
                                                 and articles of incorporation
                                                 (5)The Ensurance of the Business
                                                 Independence of Listed Company
                                                 1. Ensure that the listed company possesses
                                                 the asset, staff, qualification and ability for
                                                 independently holding business activities,
                                                 which possesses the independent, autonomous
                                                 and sustain operation ability catering to the

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Shenzhen Victor Onward Textile Industrial Co., Ltd. The Third Quarterly Report 2015.


                                                 market.
                                                 2. Ensure that I will not intervene the listed
                                                 company’s business activities except
                                                 exercising shareholder’s rights.
                                                 3.Ensure that I or other enterprises under my
                                                 possession will avoid working on the listed
                                                 company’s main business which possesses
                                                 substantial competition.
                                                 4. Ensure to reduce the related transaction
                                                 between me and the listed company or
                                                 between other enterprises under my
                                                 possession and the listed company as much as
                                                 possible; When confirming necessary but
                                                 unavoidable related transaction, I will ensure
                                                 the fair operation according to the principle of
                                                 market culture and the fair price, and fulfill
                                                 the transaction procedures and the obligation
                                                 of disclosing information according to
                                                 relevant laws and regulations and normative
                                                 document.

                             Wuxi Hengtai
                             Jiuding Assets
                             Management
                                                 “Once I or our unit acquire the newly-added
                             Centre(LP);
                                                 share of Victor Onward Company        through
                             Yantai Zhaoxuan
                                                 this transaction, no transfers will occur in any
                             Yuantai Jiuding
                                                 way within 12 months from the listing date,
                             Venture
                                                 including but not limited to public transfer by
                             Investment
                                                 securities market or transfer by agreement,
                             Centre                                                                           12      Strict
                                                 and no entrusting for others to manage my          March
                             (LP);Suzhou                                                                    mont    perfor
                                                 holding share of Victor Onward Holdings .          19,2015
                             Tianyao                                                                          hs      ming
                                                 Once the above-mentioned lockup period
                             Zhongshan
                                                 expires, I will implement the selling or
                             Jiuding
                                                 transferring of the newly-added share of
                             Investment
                                                 Victor Onward Holdings according to the
                             Centre(LP);
                                                 relevant provision of CSRC and SZSE.
                             Jiaxing Jiahe
                             Jiuding
                             Investment
                             Centre(LP)

                             Chen Lue; He        “1.Before this reorganization, the fairness and
                                                                                                                      Strict
                             Feiyan,Wuxi         reasonableness of pricing and the legitimacy       March     Long-
                                                                                                                      perfor
                             Hengtai Jiuding     and effectiveness of decision-making               19,2015   term
                                                                                                                      ming
                             Assets              procedure exist in the transaction(if any)


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Shenzhen Victor Onward Textile Industrial Co., Ltd. The Third Quarterly Report 2015.


                             Management          between me or the enterprise under my
                             Centre(LP);       possession(if any) and Sino Great Wall which
                             Yantai Zhaoxuan     is planned to place asset in, no related
                             Yuantai Jiuding     transaction with obvious unfairness exists ;
                             Venture              2.After this reorganization, I or the enterprise
                             Investment          under my possession will avoid and reduce the
                             Centre              related transaction with listed company as
                             (LP);Suzhou       much as possible. As for any unavoidable or
                             Tianyao             reasonable related transaction, I or the
                             Zhongshan           enterprise under my possession will sign the
                             Jiuding             agreement according to laws and fulfill the
                             Investment          lawful procedure, and fulfill relevant approval
                             Centre(LP);       procedure for internal decision-making and
                             Jiaxing Jiahe       timely fulfill the obligation of disclosing
                             Jiuding             information according to law, following
                             Investment          relevant laws, regulations, other normative
                             Centre(LP)        documents and articles of listed company,
                                                 which is to guarantee the fairness and
                                                 reasonableness in related transaction pricing,
                                                 to guarantee the fairness of transaction
                                                 condition and to guarantee not to utilize the
                                                 related transaction to illegally transfer the
                                                 capital and profit of listed company, and not to
                                                 utilize this transaction to engage in any
                                                 behaviors which will cause any losses to listed
                                                 company or other shareholder’s legitimate
                                                 rights. Once I violate the above promises and
                                                 cause losses to the listed company, I will
                                                 compensate the listed company for the losses
                                                 caused by the this matter.

                                                 During the assets reorganization, the house
                                                 property and land without property certificate
                                                 in the disposed assets within the plant area of
                                                 Kuixin Community of Kuichong Street of
                                                 Longgang District and the expected
                                                 compensations, as well as the expected
                             Union                                                                                     Strict
                                                 compensations concerning to the regaining of        March     Long-
                             Development                                                                               perfor
                                                 plots planned as schools within the right of        19,2015   term
                             Group Co., Ltd.                                                                           ming
                                                 land use of Nanyou Industrial Park of
                                                 Nanshan District have not been recorded in
                                                 the assessment. Therefore, Union Group
                                                 promises that after the reorganization, if
                                                 Union or a third party appointed by Union
                                                 receives compensations or incomes related to


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Shenzhen Victor Onward Textile Industrial Co., Ltd. The Third Quarterly Report 2015.


                                                 above-mentioned disposed assets which are
                                                 house property and land without property
                                                 certificate as well as regaining of plots
                                                 planned as schools, Union will return the
                                                 benefits to Victor Onward Holdings, in 10
                                                 working days since the collection. The actual
                                                 costs and fees during the possession of the
                                                 house property and land and the paid as well
                                                 as the unpaid but necessary costs and fees for
                                                 the reception of the above-mentioned benefits
                                                 for Union Group or its third party will be
                                                 deducted from the income. The specific
                                                 benefits and payable costs and fees should be
                                                 confirmed jointly by Union Group and Victor
                                                 Onward Holdings based on the actual
                                                 situations. (Notes:On June 25, 2015,All
                                                 shareholders of Victor Onward Holdings,
                                                 Union Group and Sino Great Wall Signed
                                                 supplementary agreement, and specified that
                                                 the land and houses without ownership
                                                 certificate of Victor Onward Holdings located
                                                 at the factory area of Kuixin community of
                                                 Kuichong street office of Longgang district
                                                 (the land area is about 50,000 square meters,
                                                 the built-up area of houses is about 25,000
                                                 square meters, among them about 18,000
                                                 square meters of buildings at built-up area are
                                                 within the plan of removal and collection of
                                                 government,hereinafter referred as
                                                 “undocumented property) still belongs to
                                                 Victor Onward Holdings. And the benefits and
                                                 risks of the real estate without certificate are
                                                 enjoyed and assumed by Victor Onward
                                                 Holdings.

                                                 According to the Term 5.5.3 of Agreement on

                                                 Major Asset Replacement and Asset Purchase

                                                 Through Issuing Shares (hereinafter referred
                             Union                                                                                    Strict
                                                 to as Agreement) signed on October 13, 2014        March     Long-
                             Development                                                                              perfor
                                                                                                    19,2015   term
                             Group Co., Ltd.     by the company and all shareholders of Victor                        ming

                                                 Onward Co. Ltd.. and Sino Great Wall, Victor

                                                 Onward Holdings should obtain the letter of

                                                 approval concerning the transferred debts of

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Shenzhen Victor Onward Textile Industrial Co., Ltd. The Third Quarterly Report 2015.


                                                 the   disposed    assets      from   the   creditor

                                                 (including the guarantee, similarly hereinafter)

                                                 before the date of assets delivery. In the

                                                 situation of debts on Victor Onward Holdings

                                                 due to the absence of creditor’s consent, the

                                                 company or the third party appointed by the

                                                 company is in charge of paying off debts or

                                                 reaching agreement on the solution with the

                                                 creditor. When there are losses caused by

                                                 improper solutions of the company or the third

                                                 party appointed by the company, the company

                                                 or the third party appointed by the company

                                                 will fully compensate for the caused losses of

                                                 Victor Onward Holdings in 5 working days

                                                 after receiving the notice.

                                                 According to the Term 5.5.4 of Agreement,

                                                 after the date of assets delivery, any

                                                 compensations, obligations of payment and

                                                 penalties caused by disposed assets as well as

                                                 unsettled disputes in Victor Onward Holdings

                                                 will be undertaken and solved by the company

                                                 or the third party appointed by the company,

                                                 and Victor Onward Holdings assumes no

                                                 responsibility. When there are losses caused

                                                 by it, the company or the third party appointed

                                                 by the company will fully compensate for the

                                                 caused losses of Victor Onward Holdings in 5

                                                 working days after receiving the notice.
                                                 According to the Term 5.6.1 of Agreement and
                                                 based on the principle of “staff arrangement
                                                 according to the assets”, the labor relations,
                                                 social insurance relations including pension,
                                                 medical treatment, unemployment, working
                                                 injury and maternity, and other liable welfare
                                                 and salary of all the staff in Victor Onward
                                                 Holdings. (including but not limited to on-post


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Shenzhen Victor Onward Textile Industrial Co., Ltd. The Third Quarterly Report 2015.


                                                 employees, employees awaiting job
                                                 assignments, retired employees, retained
                                                 employees with suspend salary, transferred
                                                 employees, and temporary employees, etc)
                                                 will be transferred to the company or the third
                                                 party appointed by the company.
                                                 Compensations or related matters (if any) due
                                                 to the termination of labor relationship in
                                                 advance with Victor Onward Holdings, the
                                                 company or the third party appointed by the
                                                 company will be in charge of the payment.
                                                 The company promises that for the losses
                                                 caused by matters such as the
                                                 above-mentioned debt transfers of disposed
                                                 assets, personnel arrangement, unsettled
                                                 disputes, potential debts, payment obligations
                                                 and penalties, the company or the third party
                                                 appointed by the company will fully
                                                 compensate for the losses of Victor Onward
                                                 Holdings due to the above-mentioned matters
                                                 based on the Agreement in cash.

 Commitments made upon
                             No                  No                                                No   No   No
 issuance

 Other commitments made
                             No                  No                                                No   No   No
 to minority shareholders

 Executed timely or not?     Yes


IV.Prediction of Business performance for 2015

Estimation of accumulative net profit from the beginning of the year to the end of next report period to be loss
 probably or the warning of its material change compared with the corresponding period of the last year and
 explanation of reason.

V. Securities investment

□ Applicable √ Not applicable
There is no securities investment during the report period.

VI. Equity interests held in other listed companies

□ Applicable √Not applicable
The Company did not hold any equity interests in other listed companies as at the end of the reporting period.



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Shenzhen Victor Onward Textile Industrial Co., Ltd. The Third Quarterly Report 2015.


VII. Derivative investment

□ Applicable √ Not applicable
There is no derivative investment during the report period.

VIII. The registration form of acceptance of investigation, communication and interview in the report period for
future reference

√Applicable    □ Not applicable
The Period has no research, communication and written inquiry from the investors in the report period.

                                                                                                   Content of discussion and
         Date                  Place           Mode                Type                 Visitor
                                                                                                       materials provided

                                                                                                   After this asset
                                                                                                   reorganization, textile
                                                                                                   printing and dyeing, the
                                                                                                   company’s main
                                                                                 Industrial
                         The                                                                       business, has been
 July 15,2015                            Field research      Institution         Securities Co.,
                         Company                                                                   changed into engineering
                                                                                 Ltd.
                                                                                                   design and
                                                                                                   construction ,which
                                                                                                   apparently increased the
                                                                                                   profitability.

                                                                                                   After this asset
                                                                                                   reorganization, textile
                                                                                                   printing and dyeing, the
                                                                                                   company’s main
                                                                                 China Galaxy
                         The                                                                       business, has been
 July 21,2015                            Field research      Institution         Securities Co.,
                         Company                                                                   changed into engineering
                                                                                 Ltd.
                                                                                                   design and
                                                                                                   construction ,which
                                                                                                   apparently increased the
                                                                                                   profitability.




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Shenzhen Victor Onward Textile Industrial Co., Ltd. The Third Quarterly Report 2015.




                                                   IV. Financial statement



1. Financial statement


1.Consolidated Balance sheet


Prepared by: Shenzhen Victor Onward Textile Industrial Co., Ltd.
                                                       September 30,2015
                                                                                                                In RMB

                       Items                          Year-end balance                 Year-beginning balance

 Current asset:

      Monetary fund                                                 202,703,006.69                     290,949,160.76

        Settlement provision

      Outgoing call loan

 Financial assets measured at fair
 value with variations accounted into                                  1,092,342.14                      1,060,407.78
 current income account

        Derivative financial assets

     Bill receivable                                                 36,733,636.27                       3,175,226.00

     Account receivable                                            3,096,090,832.14                  1,784,235,686.61

      Prepayments                                                    57,972,293.66                      34,811,508.11

     Insurance receivable

 Reinsurance receivable

 Provisions of Reinsurance contracts
 receivable

      Interest receivable

      Dividend receivable

     Other account receivable                                       209,536,537.00                     143,622,679.85

     Repurchasing of financial assets

     Inventories                                                     40,907,466.98                      34,960,199.93

      Assets held for sales

      Non-current asset due in 1 year

      Other current asset                                                                                1,541,206.01

 Total of current assets                                           3,645,036,114.88                  2,294,356,075.05

 Non-current assets:


27
Shenzhen Victor Onward Textile Industrial Co., Ltd. The Third Quarterly Report 2015.


 Loans and payment on other’s behalf

 disbursed

      Disposable financial asset
     Expired investment in possess

     Long-term receivable

     Long term share equity investment

     Property investment

      Fixed assets                                                  37,565,937.18        10,346,069.91

      Construction in progress                                        9,354,972.37       11,856,578.49

 Engineering material

      Fixed asset disposal

      Production physical assets

     Gas & petrol

     Intangible assets                                                9,546,526.64         8,269,556.32

     R & D petrol

     Goodwill

 Long-germ expenses to be amortized                                 27,042,878.35        10,498,658.53

 Differed income tax asset                                          61,896,921.54        49,690,702.95

     Other non-current asset                                          6,960,493.07         5,104,235.91

 Total of non-current assets                                       152,367,729.15        95,765,802.11

 Total of assets                                                 3,797,403,844.03      2,390,121,877.16

 Current liabilities

      Short-term loans                                             392,657,285.27       225,000,000.00

     Loan from Central Bank

     Deposit received and hold for others

     Call loan received

 Financial liabilities measured at fair
 value with variations accounted into
 current income account

        Derivative financial liabilities

      Bill payable                                                 159,941,731.69        88,862,834.52

      Account payable                                            1,534,198,224.56      1,048,283,935.01

     Advance payment                                                33,537,921.70        55,401,092.63

     Selling of repurchased financial
 assets



28
Shenzhen Victor Onward Textile Industrial Co., Ltd. The Third Quarterly Report 2015.


 Fees and commissions receivable

     Employees’ wage payable                                       12,620,476.52          9,992,309.43

     Tax payable                                                   317,638,230.74       157,790,765.34

     Interest payable                                                                       621,111.11

     Dividend payable

      Other account payable                                        455,286,895.18        32,683,538.73

 Non-current liability due in 1 year

 Other current liability                                            10,000,000.00        10,000,000.00

 Total of current liability                                      2,915,880,765.66      1,628,635,586.77

 Non-current liabilities:

      Long-term loan                                                19,779,949.05

     Bond payable

      Long-term payable

 Long-term payable employees’s
 remuneration

     Special payable

     Expected liabilities

        Differed income

      Differed income tax liability                                      15,101.95           15,101.95

 Other non-current liabilities

 Total non-current liabilities                                      19,795,051.00            15,101.95

 Total of liability                                              2,935,675,816.66      1,628,650,688.72

 Owners’ equity

      Share capital                                                117,239,550.25        70,136,099.00

 Other equity instrument

     Capital reserves                                                -2,551,673.16      176,467,549.00

      Less:Shares in stock

 Other comprehensive income                                              18,781.82               -85.60

 Special reserves                                                   11,456,383.70        21,813,200.10

      Surplus reserves                                              49,347,406.23        49,347,406.23

     Common risk provision

 Undistributed profit                                              686,235,371.16       443,707,019.71

 Total of owner’s equity belong to the
                                                                   861,745,820.00       761,471,188.44
 parent company

 Minority shareholders’ equity                                         -17,792.63


29
Shenzhen Victor Onward Textile Industrial Co., Ltd. The Third Quarterly Report 2015.


 Total of owners’ equity                                          861,728,027.37                   761,471,188.44

 Total of liabilities and owners’ equity                        3,797,403,844.03                  2,390,121,877.16


Legal representative :Chen Lue

Person-in-charge of the accounting work:Cui Hongli

Person-in -charge of the accounting organ:Ren Aping

2.Parent Company Balance Sheet


                                                                                         In RMB

                       Items                         At the end of term                Beginning of term

 Current asset:

 Monetary fund                                                            8,150.41                    23,480,977.11

 Financial assets measured at fair
 value with variations accounted into
 current income account

 Derivative financial assets

     Bill receivable

     Account receivable

      Prepayments

      Interest receivable

      Dividend receivable

 Other account receivable                                                                             81,098,214.84

      Inventories

 Assets held for sales

      Non-current asset due in 1 year

 Other current asset

 Total of current assets                                                  8,150.41                  104,579,191.95

 Non-current assets:

      Disposable financial asset

 Expired investment in possess

     Long-term receivable

     Long term share equity investment                           3,079,451,536.66                     36,788,952.97

     Property investment                                                                               7,738,085.22

      Fixed assets                                                                                         818,770.23



30
Shenzhen Victor Onward Textile Industrial Co., Ltd. The Third Quarterly Report 2015.


      Construction in progress

 Engineering material

      Fixed asset disposal

      Production physical assets

     Gas & petrol

 Intangible assets                                                                       1,780,153.13

     R & D petrol

     Goodwill

 Long-germ expenses to be amortized

 Differed income tax asset

     Other non-current asset

 Total of non-current assets                                     3,079,451,536.66       47,125,961.55

 Total of assets                                                 3,079,459,687.07      151,705,153.50

 Current liabilities

      Short-term loans

 Financial liabilities measured at fair
 value with variations accounted into
 current income account
      Derivative financial liabilities

      Bill payable

      Account payable                                                                      113,336.51

     Advance payment                                                                      302,539.92

     Employees’ wage payable                                                             627,180.69

     Tax payable                                                   131,915,770.91         844,599.62

     Interest payable

     Dividend payable

      Other account payable                                            260,000.00       16,235,868.11

      Liabilities held for sales

 Non-current liability due in 1 year

 Other current liability                                                                 2,069,249.00

 Total of current liability                                        132,175,770.91       20,192,773.85

 Non-current liabilities:

      Long-term loan

 Bond payable

      Long-term payable


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Shenzhen Victor Onward Textile Industrial Co., Ltd. The Third Quarterly Report 2015.


   Employees’ wage Long-term
 payable

        Special payable

     Expected liabilities

 Differed income                                                                          836,792.38

 Differed income tax liability                                                           4,180,138.12

      Other non-current liabilities

 Total of Non-current liabilities                                                        5,016,930.50

 Total of liability                                                132,175,770.91       25,209,704.35

 Owners’ equity

           Share capital                                           420,991,949.00      169,142,356.00

 Other equity instrument

     Capital reserves                                            2,257,997,084.77       31,606,598.00

      Less:Shares in stock

 Other comprehensive income                                          -4,398,235.10      -4,398,235.10

 Special reserves

 Surplus reserves                                                   26,309,287.00       26,309,287.00

 Undistributed profit                                              246,383,830.49      -96,164,556.75

 Total of owners’ equity                                        2,947,283,916.16      126,495,449.15

 Total of liabilities and owners’ equity                        3,079,459,687.07      151,705,153.50


Legal representative :Chen Lue


Person-in-charge of the accounting work:Cui Hongli


Person-in -charge of the accounting organ:Ren Aping




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Shenzhen Victor Onward Textile Industrial Co., Ltd. The Third Quarterly Report 2015.



3.Consolidated Profit statement of the Report period




                                                                                                                     In RMB

                       Item                                 Report period                Same period of the previous year

 I. Income from the key business                                      835,406,170.68                         717,439,356.89

 Incl:Business income                                                835,406,170.68                         717,439,356.89

 Interest income

 Insurance fee earned

 Fee and commission received

 II. Total business cost                                              737,452,024.90                         653,973,256.24

 Incl:Business cost                                                  653,438,691.27                         595,304,123.02

 Interest expense

 Fee and commission paid

 Insurance discharge payment

 Net claim amount paid

 Insurance policy dividend paid

 Insurance policy dividend paid

     Reinsurance expenses

       Business tax and surcharge                                       12,308,366.66                         26,998,330.78

      Sales expense                                                      3,036,106.61                          7,273,754.95

 Administrative expense                                                 43,085,998.98                         14,061,292.75

 Financial expenses                                                      6,297,639.29                          3,911,187.00

 Asset impairment loss                                                  19,285,222.09                          6,424,567.74

 Add:Gains from change of fir value (“-”for
                                                                              6,785.75
 loss)

 Investment gain(“-”for loss)

 Incl: investment gains from affiliates

 Gains from currency exchange(“-”for loss)

 III. Operational profit(“-”for loss                                 97,960,931.53                         63,466,100.65

 Add:Non-business income                                                    26,319.77                           167,642.81

 Incl:Gains from disposal of non-current

 assets

       Less:Non business expenses                                          938,228.42



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Shenzhen Victor Onward Textile Industrial Co., Ltd. The Third Quarterly Report 2015.



 Incl:Loss from disposal of non-current

 assets

 IV.Total profit(“-”for loss)                                         97,049,022.88   63,633,743.46

     Less:Income tax expenses                                          19,880,805.19   16,226,604.58

 V. Net profit(“-”for net loss                                       77,168,217.69   47,407,138.88

 Net profit attributable to the owners of parent
                                                                        77,186,010.32   47,407,138.88
 company

      Minority shareholders’ equity                                       -17,792.63

 VI. Net after-tax of Other comprehensive
                                                                             6,742.31          -32.50
 income

 Net                                     after-tax
 of other comprehensive income attributable
 to owners of the parent company.

 (I)Other comprehensive income items that
 will not be reclassified into gains/losses in
 the subsequent accounting period

 1.Re-measurement of defined benefit plans
 of changes in net debt or net assets

 2.Other comprehensive income under the eq
 uity method investee can not be reclassified
 into profit or loss.

 (II)
 Other comprehensive income that will be re                                  6,742.31          -32.50
 classified into profit or loss.

 1.Other comprehensive income under the eq
 uity method investee can be reclassified into
  profit or loss.

 2.Gains and losses from changes in fair valu
 e available for sale financial assets

 3.Held-to-maturity investments reclassified t
 o gains and losses of available for sale finan
 cial assets

 4.The effective portion of cash flow hedges
 and losses

 5.Translation differences in currency financi
                                                                             6,742.31          -32.50
 al statements

 6.Other

 Net


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Shenzhen Victor Onward Textile Industrial Co., Ltd. The Third Quarterly Report 2015.


 after-tax of other comprehensive income attr

 ibutable to Minority shareholders’ equity

 VII. Total comprehensive income                                           77,174,960.00                         47,407,106.38

 Total comprehensive income attributable to
                                                                           77,192,752.63                         47,407,106.38
 the owner of the parent company

     Total comprehensive income attributable
                                                                              -17,792.63
 minority shareholders

 VIII. Earnings per share

 (I)Basic earnings per share                                                      0.46                                      0.28

     (II)Diluted earnings per share                                                 0.46                                      0.28


Legal representative :Chen Lue


Person-in-charge of the accounting work:Cui Hongli


Person-in -charge of the accounting organ:Ren Aping


4. Profit statement of the Parent Company of the Report period


                                                                                                                         In RMB

                     Items                              Report period                      Same period of the previous year

 I. Income from the key business                                          329,131.00                                946,830.00

 Incl:Business cost                                                       28,098.18                                  84,294.00

 Business tax and surcharge                                                  1,115.28                                 33,459.00

 Sales expense

 Administrative expense                                                   580,403.79                               1,190,456.00

 Financial expenses                                                        -87,300.56                               -453,871.00

 Asset impairment loss                                                     -14,568.79

 Add:Gains from change of fir value
 (“-”for loss)

 Investment gain(“-”for loss)                                   383,969,705.11

 Incl: investment gains from affiliates

 II. Operational profit(“-”for loss                             383,791,088.21                                     92,492.00

 Add:Non-business income                                               68,036,587.28

 Incl:Gains from disposal of
 non-current assets

 Less:Non business expenses                                                                                           5,000.00

 Incl:Loss from disposal of


35
Shenzhen Victor Onward Textile Industrial Co., Ltd. The Third Quarterly Report 2015.


 non-current assets

 III.Total profit(“-”for loss)                                   451,827,675.49      87,492.00

     Less:Income tax expenses                                     108,609,278.25

 IV. Net profit(“-”for net loss)                               343,218,397.24      87,492.00

 V. Net after-tax of Other
                                                                        -40,084.00
 comprehensive income

 (I)Other comprehensive income
 items that will not be reclassified into
                                                                        -40,084.00
 gains/losses in the subsequent
 accounting period

 1.Re-measurement of defined benefit
 plans of changes in net debt or net ass                                -40,084.00
 ets

 2.Other comprehensive income under
  the equity method investee can not b
 e reclassified into profit or loss.

 (II)
 Other comprehensive income that wil
 l be reclassified into profit or loss.

 1.Other comprehensive income under
  the equity method investee can be re
 classified into profit or loss.

 2.Gains and losses from changes in fa
 ir value available for sale financial as
 sets

 3.Held-to-maturity investments reclas
 sified to gains and losses of available
 for sale financial assets

 4.The effective portion of cash flow h
 edges and losses

 5.Translation differences in currency
 financial statements

 6.Other

 VI. Total comprehensive income                                    343,178,313.24      87,492.00

 VII. Earnings per share:

 (I)Basic earnings per share

     (II)Diluted earnings per share


Legal representative :Chen Lue

36
Shenzhen Victor Onward Textile Industrial Co., Ltd. The Third Quarterly Report 2015.


Person-in-charge of the accounting work:Cui Hongli


Person-in -charge of the accounting organ:Ren Aping




37
Shenzhen Victor Onward Textile Industrial Co., Ltd. The Third Quarterly Report 2015.



5. Consolidated Profit statement between the beginning of the year and end of the report period


                                                                                                                In RMB

                      Items                                  Report period                    Same period of the previous year

 I. Total operating income                                             2,916,615,389.84                         2,020,135,677.89

 Including:Operating income                                           2,916,615,389.84                         2,020,135,677.89

          Interest income

           Insurance gained

 Commission charge and commission
 income

 II. Total operating cost                                              2,592,522,742.77                         1,845,100,242.10

 Including:Operating cost                                             2,344,122,874.48                         1,666,771,847.04

 Interest expense

 Commission chare and commission expense

 Cash surrender value

 Net amount of expense of compensation

 Net amount of withdrawal of insurance

 contract reserve

 Bonus expense of guarantee slip

     Reinsurance expense

 Operating tax and extras                                                 56,906,003.26                            68,684,613.05

 Sales expenses                                                           10,539,011.91                            16,460,789.92

 Administration expenses                                                107,924,317.65                             46,286,727.96

 Financial expenses                                                       24,205,661.13                            11,859,349.14

 Losses of devaluation of assets                                          48,824,874.34                            35,036,914.99

 Add :Changing income of fair value                                          31,934.36

     Investment income

 Including:Investment income on affiliate
     company and joint venture

 Exchange income

 III. Operating profit                                                  324,124,581.43                            175,035,435.79

        Add :Non-operating income                                           405,739.61                               167,642.81

 Including :Disposal Gains of non-current

 assets



38
Shenzhen Victor Onward Textile Industrial Co., Ltd. The Third Quarterly Report 2015.



 Less:Non-operating expense                                              971,667.76

 Including :Disposal loss of non-current
                                                                            31,839.34
 assets

 IV. Total profit                                                     323,558,653.28    175,203,078.60

 Less:Income tax                                                      81,048,094.46     44,676,785.04

 V. Net profit(“-”for net loss                                     242,510,558.82    130,526,293.56

 Net profit attributable to the owners of parent
                                                                      242,528,351.45    130,526,293.56
 company

 Minority shareholders’ equity                                            -17,792.63

 VI. Net after-tax of Other comprehensive
                                                                            18,867.42           -85.60
 income

 Net                    after-tax                of
 other comprehensive income attributable to                                 18,867.42           -85.60
 owners of the parent company.

 (I)Other comprehensive income items that
 will not be reclassified into gains/losses in
 the subsequent accounting period

 1.Re-measurement of defined benefit plans
 of changes in net debt or net assets

 2.Other comprehensive income under the eq
 uity method investee can not be reclassified
 into profit or loss.

 (II)
 Other comprehensive income that will be re                                 18,867.42           -85.60
 classified into profit or loss.

 1.Other comprehensive income under the eq
 uity method investee can be reclassified into
  profit or loss.

 2.Gains and losses from changes in fair valu
 e available for sale financial assets

 3.Held-to-maturity investments reclassified
 to gains and losses of available for sale fina
 ncial assets

 4.The effective portion of cash flow hedges
 and losses

 5.Translation differences in currency financi
                                                                            18,867.42           -85.60
 al statements

 6.Other


39
Shenzhen Victor Onward Textile Industrial Co., Ltd. The Third Quarterly Report 2015.


 Net after-tax of
 other comprehensive income attributable to
 Minority shareholders’ equity

 VII. Total comprehensive income                                        242,529,426.24                          130,526,207.96

 Total comprehensive income attributable to
                                                                        242,547,218.87                          130,526,207.96
 the owner of the parent company

     Total comprehensive income attributable
                                                                             -17,792.63
 minority shareholders

 VIII. Earnings per share

 (I)Basic earnings per share                                                    1.43                                        0.77

     (II)Diluted earnings per share                                               1.43                                        0.77


Legal representative :Chen Lue


Person-in-charge of the accounting work:Cui Hongli


Person-in -charge of the accounting organ:Ren Aping


6.Profit Statement of the Parent Between the Beginning of the Year and End of the Report Period


                                                                                                                         In RMB

                     Items                             Report period                       Same period of the previous year

 I. Business income                                                     2,246,511.00                               1,988,275.00

 Less:Business cost                                                     196,684.18                                 252,880.00

 Business tax and surcharge                                              150,843.28                                 105,214.00

 Sales expense

 Administrative expense                                                 3,716,096.79                               3,370,708.00

 Financial expenses                                                      -953,917.56                              -1,315,071.00

 Asset impairment loss                                                    -14,568.79

 Add:Gains from change of fir value
 (“-”for loss)

 Investment gain(“-”for loss)                                   383,969,705.11

 Incl: investment gains from affiliates

 II. Operational profit                                             383,121,078.21                                  -425,456.00

 Add:Non-business income                                              68,036,587.28

 Incl:Gains from disposal of
 non-current assets

 Less:Non business expenses                                                                                           5,000.00


40
Shenzhen Victor Onward Textile Industrial Co., Ltd. The Third Quarterly Report 2015.


 Incl:Loss from disposal of
 non-current assets

 III.Total profit                                                  451,157,665.49      -430,456.00

 Less:Income tax expenses                                         108,609,278.25

 IV. Net profit)                                                  342,548,387.24      -430,456.00

 V. Net after-tax of Other
 comprehensive income

 (I)Other comprehensive income
 items that will not be reclassified into
 gains/losses in the subsequent
 accounting period

 1.Re-measurement of defined benefit
 plans of changes in net debt or net ass
 ets

 2.Other comprehensive income under
  the equity method investee can not b
 e reclassified into profit or loss.

 (II)
 Other comprehensive income that wil
 l be reclassified into profit or loss.

 1.Other comprehensive income under
  the equity method investee can be re
 classified into profit or loss.

 2.Gains and losses from changes in fa
 ir value available for sale financial as
 sets

 3.Held-to-maturity investments reclas
 sified to gains and losses of available
 for sale financial assets

 4.The effective portion of cash flow h
 edges and losses

 5.Translation differences in currency
 financial statements

 6.Other

 VI. Total comprehensive income                                    342,548,387.24      -430,456.00

 VII. Earnings per share

 (I)Basic earnings per share

     (II)Diluted earnings per share



41
Shenzhen Victor Onward Textile Industrial Co., Ltd. The Third Quarterly Report 2015.


Legal representative :Chen Lue


Person-in-charge of the accounting work:Cui Hongli


Person-in -charge of the accounting organ:Ren Aping




42
Shenzhen Victor Onward Textile Industrial Co., Ltd. The Third Quarterly Report 2015.



7. Consolidated Cash Flow Statement Between the Beginning of the Year and End of the Report Period


                                                                                                                       In RMB

                       Items                               Report period                  Same period of the previous year

 I.Cash flows from operating activities

 Cash received from sales of goods or
                                                                     1,379,577,878.41                      1,415,247,902.16
 rending of services

      Net increase of customer deposits and
 capital kept for brother company

 Net increase of loans from central bank

 Net increase of inter-bank loans from other
 financial bodies

 Cash received against original insurance
 contract

 Net cash received from reinsurance
 business

 Net increase of disposal of financial assets
 measured at fair value of which changes
 are recorded into current gains and losses.

 Cash received as interest, processing fee
 and commission

 Net increase of inter-bank fund received

 Net increase of repurchasing business

     Tax returned

 Other cash received from business
                                                                       349,234,449.67                         95,989,514.20
 operation

 Sub-total of cash inflow                                            1,728,812,328.08                      1,511,237,416.36

 Cash paid for purchasing of merchandise
                                                                     1,566,480,512.18                      1,215,670,073.72
 and services

 Net increase of client trade and advance

 Net increase of savings n central bank and
 brother company

 Cash paid for original contract claim

 Cash paid for interest, processing fee and
 commission

 Cash paid for policy dividend

 Cash paid to staffs or paid for staffs                                156,672,144.42                         71,753,209.25


43
Shenzhen Victor Onward Textile Industrial Co., Ltd. The Third Quarterly Report 2015.


  Taxes paid                                                           120,883,336.29      99,806,627.88

 Other cash paid for business activities                               212,347,665.70     162,581,327.43

 Sub-total of cash outflow from business
                                                                     2,056,383,658.59    1,549,811,238.28
     activities

 Cash flow generated by business operation,
                                                                      -327,571,330.51      -38,573,821.92
 net

 II.Cash flow generated by investing

 Cash received from investment retrieving

 Cash received as investment gains

 Net cash retrieved from disposal of fixed
 assets, intangible assets, and other                                       89,678.00         105,388.10
 long-term assets

 Net cash received from disposal of
 subsidiaries or other operational units

 Other investment-related cash received

 Sub-total of cash inflow due to investment
                                                                            89,678.00         105,388.10
 activities

 Cash paid for construction of
 fixed assets, intangible assets                                        35,996,053.16      22,823,196.83
 and other long-term assets

 Cash paid as investment

 Net increase of loan against pledge

 Net cash received from subsidiaries and
 other operational units

 Other cash paid for investment activities                                    3,884.29

 Sub-total of cash outflow due to
                                                                        35,999,937.45      22,823,196.83
 investment activities

 Net cash flow generated by investment                                 -35,910,259.45      -22,717,808.73

 III.Cash flow generated by financing

 Cash received as investment

 Incl: Cash received as investment from
 minor shareholders

 Cash received as loans                                                572,000,000.00     195,000,000.00

 Cash received from bond placing

 Other financing –related ash received                                168,190,000.00     129,033,904.10

 Sub-total of cash inflow from financing
                                                                       740,190,000.00     324,033,904.10
 activities


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Shenzhen Victor Onward Textile Industrial Co., Ltd. The Third Quarterly Report 2015.


 Cash to repay debts                                                   387,220,050.95                         150,000,000.00

 Cash paid as dividend, profit, or interests                            22,094,169.18                           9,961,777.77

 Incl: Dividend and profit paid by
 subsidiaries to minor shareholder

 Other cash paid for financing activities                               95,461,627.00                         103,554,396.13

 Sub-total of cash outflow due to financing
                                                                       504,775,847.13                         263,516,173.90
 activities

 Net cash flow generated by financing                                  235,414,152.87                          60,517,730.20

 IV. Influence of exchange rate alternation
                                                                         -2,820,849.71                            792,532.48
 on cash and cash equivalents

 V.Net increase of cash and cash equivalents                          -130,888,286.80                              18,632.03

 Add: balance of cash and cash equivalents
                                                                       243,759,954.90                          67,525,829.38
 at the beginning of term

 VI ..Balance of cash and cash equivalents at
                                                                       112,871,668.10                          67,544,461.41
 the end of term


Legal representative :Chen Lue


Person-in-charge of the accounting work:Cui Hongli


Person-in -charge of the accounting organ:Ren Aping


8. Cash Flow Statement of the Parent Between the Beginning of the Year and End of the Report Period


                                                                                                                        In RMB

                     Items                             Amount in this period                    Amount in last period

 I.Cash flows from operating activities

 Cash received from sales of goods or
                                                                         2,246,511.00                           3,411,993.00
 rending of services

 Tax returned

 Other cash received from business
                                                                         2,287,234.95                           1,571,917.00
 operation

 Sub-total of cash inflow                                                4,533,745.95                           4,983,910.00

 Cash paid for purchasing of merchandise
 and services

 Cash paid to staffs or paid for staffs                                  1,026,970.10                           1,131,507.00

 Taxes paid                                                                908,947.67                             810,942.00

 Other cash paid for business activities                                 4,031,645.42                           2,435,063.00


45
Shenzhen Victor Onward Textile Industrial Co., Ltd. The Third Quarterly Report 2015.


 Sub-total of cash outflow from business
                                                                         5,967,563.19   4,377,512.00
      activities

 Cash flow generated by business operation,
                                                                        -1,433,817.24    606,398.00
 net

 II.Cash flow generated by investing

 Cash received from investment retrieving

 Cash received as investment gains

 Net cash retrieved from disposal of fixed
 assets, intangible assets, and other
 long-term assets

 Net cash received from disposal of
 subsidiaries or other operational units

 Other investment-related cash received                                     40,084.65

     Sub-total of cash inflow due to investment
                                                                            40,084.65
 activities

 Cash paid for construction of
 fixed assets, intangible assets
 and other long-term assets

        Cash paid as investment

 Net cash received from subsidiaries and
 other operational units

 Other cash paid for investment activities                               7,079,094.11

 Sub-total of cash outflow due to investment
                                                                         7,079,094.11
 activities

 Net cash flow generated by investment                                  -7,039,009.46

 III.Cash flow generated by financing

      Cash received as investment

        Cash received as loans

     Cash received from bond placing

 Other financing –related ash received

     Sub-total of cash inflow from financing
 activities

      Cash to repay debts

 Cash paid as dividend, profit, or interests

 Other cash paid for financing activities

     Sub-total of cash outflow due to financing
 activities


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Shenzhen Victor Onward Textile Industrial Co., Ltd. The Third Quarterly Report 2015.


 Net cash flow generated by financing

 IV. Influence of exchange rate alternation
 on cash and cash equivalents

 V.Net increase of cash and cash equivalents                            -8,472,826.70                 606,398.00

 Add: balance of cash and cash equivalents
                                                                         8,480,977.11               10,557,501.00
 at the beginning of term

 VI ..Balance of cash and cash equivalents at
                                                                             8,150.41               11,163,899.00
 the end of term


Legal representative :Chen Lue


Person-in-charge of the accounting work:Cui Hongli


Person-in -charge of the accounting organ:Ren Aping


II. Auditor‘s report
Whether the Q3 report is audited
□ Yes √ No
The Q3 Report is not audited.


        The Board of Directors Shenzhen Victor Onward Textile Industrial Co., Ltd.

                                                                                 October 31, 2015




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