KEDA CLEAN ENERGY CO., LTD.

annual report 2019

广东科达洁能股份有限公司KEDA CLEAN ENERGY CO., LTD.

CONTENTS

Section I Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Section II Profile and Main Financial Indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Section III Business Overview of the Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Section IV Discussion and Analysis of Operation . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Section V Important Matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Section VI Common Share Changes and Shareholders’ Information . . . . . . . . . . . . 30

Section VII Directors, Supervisors, Senior Managers and Employees . . . . . . . . . . . 33

Section VIII Financial Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

KEDASection I Definitions

1Annual Report 2019

I. DefinitionsIn the Report, unless otherwise designated literally, the following terms shall have the following meanings:

Definitions of common terms

Company, the Company,

Keda Clean Energyindicates KEDA Clean Energy Co ., Ltd .

KEDA (Anhui) Industrial indicates KEDA (Anhui) Industrial Co ., Ltd .

Anhui KEDA Clean Energy indicates Anhui KEDA Clean Energy Co ., Ltd .

KEDA Hong Kong indicates KEDA Industrial (Hong Kong) Limited

Henglitai Company indicates Foshan Henglitai Machinery Co ., Ltd .

Suremaker Company indicates Wuhu KEDA Suremaker Co ., Ltd .

KEDA Hydraulics indicates Foshan KEDA Hydraulic Machinery Co .,Ltd .

Anhui Xincheng Investment indicates Anhui Xincheng Investment Co ., Ltd .

Anhui Xingcheng Financial indicates Anhui Xincheng Financial And Leasing Co ., Ltd .

Guangdong Xincheng

Financialindicates Guangdong Xincheng Financial And Leasing Co ., Ltd .

Xincheng International indicates Xincheng International (Hong Kong) Co .,Limited

Changsha Aer indicates Changsha Aer Compressor Co ., Ltd .

Anhui Hudu KEDA indicates Anhui Hudu KEDA Fluid Machinery Co ., Ltd .

KEDA Dongda indicates Henan KDNEUInternational Engineering Co ., Ltd .

Dongda Science and

Technologyindicates

Northeast University Science & Technology Industrial Group

Co ., Ltd .

KEDA (Shenyang) Clean

Energyindicates KEDA (Shenyang) Clean Energy Gas Co ., Ltd .

Zhuolitai Company indicates Foshan Zhuolitai Machinery Co ., Ltd .

Jiangsu Kehang indicates Jiangsu Kehang Environmental Protection Technology Co ., Ltd .

Ningxia Kehang indicates Ningxia Kehang Environmental Protection Engineering Co ., Ltd .

Anhui New Material indicates Keda (Anhui) New Material Co ., Ltd .

Zhangzhou Grande indicates Zhangzhou GrandeGraphite Co ., Ltd .

Guangxing Lithium Battery indicates Sichuan Guangxing Lithium Battery Technology Co ., Ltd .

New Energy Automobile

Companyindicates KEDA (Anhui) New Energy Automobile Sales Co ., Ltd .

Huadong Travel indicatesKEDA (Anhui)Huadong New Energy Automobile Travel Service

Co ., Ltd .

Ceramic Technology indicates Foshan KEDA Ceramic Technology Co ., Ltd .

KEDA Electricity indicates Anhui KEDA Electricity Co ., Ltd .

Keneng Electricity indicates Anhui KEDA Keneng Electricity Co ., Ltd .

Anqing Binjiang Energy indicates Anqing Binjiang Energy Co ., Ltd .

DLT Company indicates Foshan DLT Technology Limited

Guangzhou Sunda indicates Guangzhou Sunda International Trading Co ., Ltd .

Qinghai KEDA Lithium Industry indicates Qinghai KEDA Lithium Industry Co ., Ltd .

Qinghai Weili indicates Qinghai Weili New Energy Material Co ., Ltd .

Lanke Lithium Industry indicates Qinghai Salt Lake Fozhao Lanke Lithium Industry Co ., Ltd .

Shunde KEDA Clean Energy indicates Guangdong Shunde KEDA Clean Energy Co ., Ltd .

Suqian Weidao indicates Suqian Weidao New Energy Technology Co ., Ltd .

KEDA Section I Definitions

Annual Report 20192

Definitions of common terms

Sichuan New Material indicates KEDA (Sichuan) New Material Co ., Ltd .

KEDA Trade indicates Foshan KEDA Trade Co ., Ltd

Guangdong KEDA Smart

Energyindicates Guangdong KEDA Smart Energy Technology Co ., Ltd

Anhui Keqing indicates Anhui Keqing Environmental Engineering Co ., Ltd .

Keda Holding indicates Keda Holding (Mauritius) Limited

Brightstar indicates Brightstar Investment Limited

Tilemaster indicates Tilemaster Investment Limited

Keda Turkey indicates Keda Turkey Makine Ticaret Limited Sirketi

Keda Kenya indicates Keda (Kenya) Ceramics Company Limited

Keda Ghana indicates Keda (Ghana) Ceramics Company Limited

Keda Tanzania indicates Keda (Tanzania) Ceramics Company Limited

Twyford Senegal indicates Twyford (SN) Ceramics Limited

Welko indicates I .C .F .& Welko S .p .A .

Keda Europe indicates Keda Europe S .r .l .

SRC, CSRC indicates China Securities Regulatory Commission

Zhongxi CPA Firm indicates Zhongxi CPA Firm (Special Ordinary Partnership)

Yuan, Ten Thousand Yuan,

100 Million Yuanindicates CNY Yuan, CNY Ten Thousand Yuan, CNY 100 Million Yuan

“Sincere Ahead, innovation supreme” 27th anniversary ceremony of KEDA Clean Energy Co .,Ltd .

KEDASection II Profile and Main Financial Indicators

3Annual Report 2019

I. Company Information

Chinese Name 广东科达洁能股份有限公司Abbreviated Chinese Name 科达洁能English Name Keda Clean Energy Co .,Ltd .

Abbreviated English Name KEDA

Legal Representative Yang Xuexian

II. Contacts and Contact Information

Secretary of the Board of Directors Securities Representative

Name Ekin Li Feng Xin

Contact AddressNo . 1, Huanzhen West Road, Guanglong Industrial Park, Chencun Town, Shunde District, Foshan City, Guangdong Province

No . 1, Huanzhen West Road, Guanglong Industrial Park, Chencun Town, Shunde District, Foshan City, Guangdong Province

Tel . 0757-23833869 0757-2383869

E-mail 600499@kedachina .com .cn 600499@kedachina .com .cn

III. Basic Information

Registered addressNo . 1, Huanzhen West Road, Guanglong Industrial Park, Chencun Town, Shunde District, Foshan City, Guangdong Province

Postal code of registered address 528313

Business addressNo . 1, Huanzhen West Road, Guanglong Industrial Park, Chencun Town, Shunde District, Foshan City, Guangdong Province

Postal code of business address 528313

Website http://www .kedachina .com .cn

E-mail 600499@kedachina .com .cn

IV. Information Disclosure and Storage Location

Selected Information Disclosure Media China Securities Journal, Securities Times, Shanghai Securities News

Website designated by CSRC for publishing the Annual Report

www .sse .com .cn

Storage location of the Annual Report The company, Shanghai Stock Exchange

V. Stock Overview of the Company

Stock Overview

Type of Stock

Listed stock exchange Abbreviated stock nameStock code

Abbreviated stock name before change

A-stock Shanghai Stock Exchange Keda Clean Energy 600499 KEDA Industrial

VI. Other Relevant Information

Accounting Firm Engaged by the Company (Domestic)

Name Zhongxi CPA Firm (Special Ordinary Partnership)

Business addressFloor 11, Block A, Xincheng Culture Building, No . 11 Chongwenmenwai Street, Beijing

Name of Signatory Accountant

Wang Huishuan, Song Zhigang

Sponsor institution performing continuous supervision during the reporting period

Name Zhong De Securities Company Limited

Business address22/F Germany Building, Huamao Center, No . 81 Jianguo Road, Chaoyang District, Beijing, China

Name of Signed sponsor representative

Song Wanrong, Pandeng

Supervision duration From November 30, 2017 to June 28, 2019

KEDA Section II Profile and Main Financial Indicators

4 Annual Report 2019

Sponsor institution performing continuous supervision during the reporting period

Name China Merchants Securities Co ., Ltd

Business addressNo . 111, Fuhuayi Road, Futian Street, Futian District, Shenzhen

Name of Signed sponsor representative

Sheng Peifeng, Du Yuancan

Supervision durationMay 13, 2019 to the completion of the use of funds raised from the non-public offering in 2017

VII. Main Accounting Data and Financial Indicators of Last Three Years(I) Main accounting data

Unit: Ten thousand Yuan, Currency: CNY

Main accounting data 2019 2018Year-on-year

increase or decrease (%)

2017

Operating revenue 642,242 .33 607,083 .82 5 .79 572,851 .36

Net profit attributed to shareholders of the listed company

11,933 .66 -58,857 .86 Not applicable 47,889 .13

Net profit attributed to shareholders of the listed company after deducing non-recurring gains and losses

6,615 .06 -69,819 .36 Not applicable 30,017 .13

Net cash flows from operating activities 59,383 .31 5,617 .07 957 .19 -25,596 .46

By end of 2019

By end of 2018

Year-on-year increase or

decrease (%)

By end of 2017


465,073 .69 465,841 .48 -0 .16 543,801 .60

Total Assets 1,288,126 .96 1,218,812 .14 5 .69 1,225,075 .77

(II) Main financial indicators

Main financial index 2019 2018Year-on-year

increase or decrease (%)

2017

Basic earnings per share (yuan/share) 0 .078 -0 .374 Not applicable 0 .336

Diluted earnings per share (yuan/share) 0 .078 -0 .374 Not applicable 0 .336

Basic earnings per share after deducing non-recurring gains and losses (yuan/share)

0 .043 -0 .443 Not applicable 0 .211

Weighted ROE (%) 2 .59 -11 .56 Not applicable 11 .27

Weighted ROE after deducing non-recurring gains and losses (%)

1 .44 -13 .72 Not applicable 7 .07

VIII. 2019 Main Financial Data by QuarterUnit: Ten thousand Yuan, Currency: CNY

Quarter 1 (January-

March)

Quarter 2(April-June)

Quarter 3(July-

September)

Quarter 4 (October-

December)

Operating revenue 173,237 .68 150,794 .93 145,612 .96 172,596 .76


11,741 .95 9,421 .20 3,649 .08 -12,878 .57

Net profit attributable to shareholders of the listed company after deducing non-recurring gains and losses .

10,323 .80 8,751 .57 1,913 .77 -14,374 .07

Net cash flows from operating activities 10,983 .05 9,628 .33 -9,264 .74 48,036 .67

KEDASection II Profile and Main Financial Indicators

5Annual Report 2019

IX. Item and amount of non-recurring profits and lossesCurrency: CNY Unit: Yuan

Non-recurring profits and losses itemsAmount in

2019

Notes(if

applicable)

Amount in 2018

Amount in 2017

Disposal gains and losses of non-current assets

-2,090,276 .58 -7,617,734 .87 4,495,093 .41

Governmental subsidy included in current profit and loss, except for those that are closely associated with normal business operations, in line with national policies and regulations, and that the company continues to enjoy under certain standards in terms of quotas or quantitative

63,218,357 .42 139,347,083 .23 86,309,651 .21

Return from receivables impairment reserve tested with impairment solely

1,868,130 .00

Other non-operating income and expenses than mentioned above

3,839,717 .55 9,505,596 .31 -1,257,023 .32

Revenue recognized by the fair value of the purchaserˇs equity held in a business combination not under the same control

108,390,756 .70

Impact of minority shareholders’ equity -1,800,009 .89 -5,107,381 .21 -4,355,512 .77

Impact of income tax -11,849,899 .28 -26,512,526 .81 -14,862,978 .50

Total 53,186,019.22 109,615,036.65 178,719,986.73

Global Footprint of KEDA

KEDA Section III Business Overview of the Company


I. Description of the Company’s main business, operation model and industry situation during the reporting period.The company mainly covers the production and sales of building materials machinery and overseas construction

ceramics, along with clean energy & environmental protection, lithium battery materials, hydraulic pumps, fluid machinery and other seed business .

(i) Building material machinery business.The business includes building ceramic

machinery, wall machinery, stone machinery, etc ., of which building ceramic machinery is the main part, and the core products include press machines, kilns, grinding equipment, etc .After 27 years of innovation and development, KEDA Clean Energy has achieved the goal of “localization of ceramic machinery and equipment” and “becoming a strong player in the world’s building materials and equipment industry” . It has grown into a leading company in China’s building materials and machinery equipment industry, and the market share is far ahead .In recent years, with the domestic economic growth rate slowing down, the Company seeks to transform from an equipment provider to an industrial service provider for new development, tap service potential around the manufacturing industry, and provide consumables and supporting services for maintenance and transformation . At the same time, with the rapid layout of the Company’s globalization strategy, during the reporting period, the Company completed the acquisition of 60% equity of Welko, an Italian ceramic machinery enterprise, and entered the world’s leading Italian market in the construction ceramics and equipment business . Through the integration of Chinese and Italian design and technology, the Company has built the core competitiveness of the middle and high-end market .In the future, the Company will continue to adhere to the development direction of globalization, technology leadership and efficiency improvement, maintain the leading position in the building ceramics machinery industry, and strive to be the first leading position in the global building ceramic machinery industry .

In recent years, the Company’s wall machinery business has developed steadily, and now it has become one of the first-class enterprises in the industry . Its products include aerated concrete plate/block production line, autoclaved brick production line, aerated concrete block/autoclaved brick mixing line, wall brick automatic hydraulic brick machine series, as well as core equipment such as pouring mixer, lifting pouring head and mould turning machine . In 2011, the Company

Bian Cheng, the Chairman of KEDA, talks about the development of

KEDA on CCTV

KEDA’s Large Format Ceramic Slab Press along with many other new products took part in Hannover MESSE

Keda’s Wall Material Machinery Whole Plant Solution make a great show during the exhibition event in BMW Munich,

Germany

KEDASection III Business Overview of the Company

7Annual Report 2019

independently developed the first fully automatic autoclaved aerated concrete plate production line in China, and gained good market reputation . After years of market expansion, the Company’s wall machinery products are present all over the world, covering Russia, India, Indonesia, Southeast Asia, South America and other parts of the world .

Business model: The Company’s building material machinery business adopts domestic direct marketing, foreign “direct marketing + agency” and “joint venture for plant+ complete plant sales” and other sales models, and the machinery and equipment category adopts the production and operation mode of “sales-based production”, while the subsidiary financial services are provided by the financial leasing company under the name of the Company

Industry situation: since the 1980s, China’s ceramic machinery and equipment industry has gradually expanded its market share from completely relying on imports, to simply imitating production, to independent R&D and innovation in the late 1990s .In the 21st century, China’s ceramic machinery market has not only basically realized full localization, but also has been continuously going abroad to promote the Chinese-standard ceramic machinery to the world, competing with the international giants with a history of one hundred years .

In terms of the downstream construction ceramic industry of the Company, in recent years, with China’s economy changing from a high-speed growth stage to a high-quality development stage, the construction ceramic industry is facing fierce changes including industry shuffling, strategic adjustment and elimination of backward production capacity . In 2019, strict environmental protection policies and environmental supervision eliminated a lot of backward and non-standard production capacity . Influenced by national real estate regulation policies, market demand saturation and other factors, the industry retail market declined, while the large-scale engineering market promoted the development of brand enterprises focusing on the construction of engineering channels . As a result, the industry concentration entered a rapid improvement stage, and ceramic enterprises gradually transformed into the high quality development stage of ripening, standardization, green manufacturing and intelligent manufacturing .Looking at the overseas market, Italian and Spanish brands are important suppliers of architectural ceramics in the world . Through a hundred years of historical sediment, these brands have accumulated rich experience in product technology and design level, and have a high market share in the high-end market . In recent years, due to global trade and political tensions, intensified international competition, and slowing consumption in many geographical regions, the sales of ceramics tiles all over the world showed weak performance .

In terms of wall machinery, in recent years, with the continuous increase in China’s prefabricated building policies, it has become a consensus of social development to encourage factory manufacturing and assembly construction to promote the comprehensive utilization of resources, develop industrial green buildings and ecological civilization construction, and promote the modernization of the prefabricated building industry . As an important part of assembly building, steel structure residence, combined with the assembly construction of aerated concrete slab, can greatly reduce the water and electricity consumption, reduce the waste discharge and dust pollution at the construction site . It has remarkable energy-saving effect, leading the development trend of the construction market .

(ii) Overseas building ceramics businessThis business is mainly engaged in the production and sales of building ceramics in the African market . Since

2016, the Company has further expanded overseas to the downstream construction ceramic industry, and laid out the ceramic tile market in developing countries . The Company has successively built and operated ceramic factories in Kenya, Ghana, Tanzania and Senegal in Africa with its strategic partner Guangzhou Senda, and has achieved a leap forward breakthrough from 0 to 66 million m2 annual production capacity . The Company has exported products to Uganda, Rwanda, Malawi, Zimbabwe and other countries in East Africa, Togo, Benin, Burkina Faso, Cote d’Ivoire and other countries in West Africa, and has covered 3500 sales outlets in Africa . Business model: The building ceramics business guarantees sales through the mature sales channels of joint ventures and strategic partners, realizing seamless connection of sales and production and comprehensive support of services .

Industry situation: In recent years, the rapid urbanization process and the growing population of African countries have become increasingly contradictory to their lack of infrastructure . In 2017, the total consumption of African ceramic tiles increased to 920 million square meters . Because the capacity of domestic building ceramics is difficult to meet the local demand, African ceramic tile imports account for 11% of the world’s total imports, becoming the third largest import area of ceramic tiles in the world . With the support of China’s “The Belt and Road” initiative, the potential of the African consumer market and the rich local mineral resources in Africa, in recent years, more and more Chinese enterprises have entered Africa to invest and build factories . The main investment destination countries include Ethiopia, Zambia, South Africa, Egypt, Tanzania, Nigeria and other countries . With the continuous investment and construction of African



ceramic factories, ceramic factories also continue to export ceramic products to neighboring countries while expanding the local market . The export business covers South Africa, Morocco, Tunisia, Kenya, Swaziland, Ghana, Uganda, Mauritius, Zimbabwe, Burkina Faso and other countries and regions . West Africa is also becoming a new manufacturing center of ceramic industry in the world .

(iii) Seed business(1) Clean energy environmental protection business

of the Company mainly includes clean coal gasification technology and equipment, flue gas treatment technology and equipment business . Among which, clean coal gasification technology and equipment business, through self-developed clean coal gasification system, provides downstream enterprises with clean coal gasification equipment and service of clean gas whose cleanliness is comparable to that of natural gas . At present, it has been promoted and applied in the industries of alumina, ceramics, carbon, coking and synthetic ammonia, and has been fully recognized by customers in terms of environmental protection effects and economic benefits .

(2) The business mainly includes the production and sale of lithium ion power battery anode material and lithium carbonate and the investment layout of cathode material business . In 2015, the Company began to enter the field of lithium battery anode material, mainly engaged in RD, production and sale of anode products such as graphitization processing, artificial graphite and silicon carbon composite . In 2017, on the basis of the original negative electrode material related business, the Company set foot in lithium carbonate deep processing and trade and other related businesses through equity participation in Lanke Lithium, and the lithium battery material business model took shape . During the reporting period, the Company’s graphite anode material has been mass-produced and sold, and the product performance level and manufacturing level have been improved; the 20,000-ton battery-grade lithium carbonate project of the Company’s shareholding company Lanke Lithium has officially started construction . After the completion of the construction of the production project, the product structure of not less than 20,000-ton battery-grade lithium carbonate and 10,000 ton industry-grade lithium carbonate will be formed .

(3) KEDA hydraulic pump business is mainly to design and manufacture energy-saving, high-end high-efficiency hydraulic pumps and hydraulic components, including hydraulic pumps, hydraulic motors, hydraulic power units, precision parts and other products . KEDA hydraulic pumps are used in KEDA press machines, and also widely used in building materials, steel, metallurgy, petrochemical, engineering machinery and other industries . At the beginning of the Company’s entry into the industry in 2011, related products in the domestic market were almost entirely dependent on imports . Through intensive research and development and market development in the past decade, market share has steadily increased . At present, the Company has realized batch replacement of high-end imported pumps in key industries of national economy and major national engineering projects, becoming the leading company of high-pressure plunger pump in China .

(4) The main products of the Company’s fluid machinery business are high-speed centrifugal blowers, air suspension centrifugal blowers and centrifugal compressors, which are widely used in chemical industry, metallurgy, electric power, papermaking, medicine, environmental protection, non-ferrous metal smelting and other industries and fields . In recent years, with the help of high-quality R&D team, the Company has independently developed and delivered energy-saving, efficient and stable fluid machinery products, gradually gaining market recognition and realizing partial import substitution .

President of Senegal Cuts Ribbon for KEDA Senegal Ceramics Factory

President of Ghana attended the Ground Breaking Ceremony of phase II of KEDA Ghana Ceramics factory

KEDASection III Business Overview of the Company

9Annual Report 2019

II. Analysis of the core competitiveness during the reporting period(i) Technological innovation leads the forward-looking developmentThe Company adheres to the core business concept that “innovation never ends”, adheres to the innovative

development path of “promoting enterprise prosperity with scientific and technological progress” and “reaching” from “science and technology”, and attaches great importance to the forward-looking and sustainable technology and product research and development . In recent years, with the development of the times and the demand of high-end products in the building ceramics market, the Company has developed the cutting-edge products such as KD33000 super large plate forming system, HT36000 super large specification ceramic plate intelligent press, super wide body intelligent energy-saving roller kiln, and has mastered advanced technologies such as permeable brick and foamed ceramics technology, intelligent storage and flexible billet storage technology, leading the iterative development of downstream industries . During the reporting period, the Company pioneered the eight layer dryer according to the needs of customers and put it into production smoothly . At the same time, the Company has built a modern intelligent production line of foamed ceramics, promoting the development level of energy conservation, environmental protection and automation in the downstream industry . With years of unremitting innovation and R&D, most of its product performance indicators are at the advanced level of the industry, greatly promoting the innovation and development of the downstream industry .

As the industry leader, the Company has multi-level R&D and cooperation platforms such as “National Certified Enterprise Technology Center”, “National Engineering Technology Center”, “Postdoctoral Research Station” and “Academician Studio”, which have accumulated significant technical reserves for the Company’s product R&D . At the same time, the Company attaches great importance to the protection of technology and patents, actively participating in the formulation of national and industry standards . By the end of the reporting period, the Company’s group had applied for 2,696 patents, 883 of which are invention patents, had been granted 1,916 patents, 325 of which are invention patents, had submitted 58 PCT applications totally, and had authorized 17 foreign patents; 85 scientific research achievements had passed the national and provincial appraisal of scientific and technological achievements, and the results had obtained 127 scientific and technological awards at all levels; and had presided over and participated in the preparation of 11 national standards and 44 industry standards, constantly leading the technological progress of the industry . In 2019, by virtue of its strong innovation and R&D capabilities, the Company won the honors such as the “Top 500 Chinese Enterprises in Patent”, “China Ceramic Technology Innovation Award”, and the “tribute and innovation enterprise” for 40 years of reform and opening up, demonstrating its professional strength .

(ii) Brand reputation strengthens international influenceAt present, the Company’s more than 50 subsidiaries have well-known brands such as KEDA, Henglitai, Welko,

Twyford (Africa) .As a benchmark enterprise of domestic building material machinery, Keda Clean Energy has a multi-level product system of ceramics machinery, stone machinery, wall machinery and so on . It is the only enterprise in China that can provide the whole factory and whole line equipment of building ceramics . It also provides EPC project general contracting management service and financial leasing business . Over the years, the Company has built a good reputation in the industry with its outstanding technical research and development capability, product performance, quality and cost control capability and comprehensive service support, has established long-term and stable cooperative relations with MONALISA, OCEANO, Hongyu, NewPearl, Marco Polo and other high-quality ceramics manufacturers in the industry, promoting the development of construction ceramics industry through cooperation in equipment research and development, standard setting and other aspects .

While strengthening the development of domestic market, the Company has been expanding its overseas market over recent years . It has established subsidiaries in India, Turkey and Italy in succession so as to radiate its “KEDA”, “Henglitai”, “DLT” and other brands to Southeast Asia and Europe through multinational localization, while for the “Twyford”-branded ceramics tiles, the Company has more than 3,500 sales outlets in many African countries . As the Company’s related products are widely recognized in the international market, the Company’s brand influence continues to increase .

(iii) Move forward in three lines to boost global businessIn recent years, under the influence of international trade barriers and other factors, the Company has changed the

development strategy of simply selling equipment in the “internationalization” strategy, looked at the industry from the perspective of the world, and striven to mobilize global resources to realize the comprehensive internationalization of global buying, global selling and global manufacturing, showing a positive development direction in the global emerging market, mature market and high-end market layout .



For global emerging markets, since 2016, by following the development strategy of “The Belt and Road” initiative and “international capacity cooperation”, the Company has seized the market opportunity of relatively backward economy and urgent improvement of infrastructure construction in developing countries, actively extending its business to the downstream construction ceramics field . According to the development model of “investment, construction, operation and export”, by investing along and operation of ceramic factories along along the east and west of Africa, the Company has set up and operated ceramic factories through joint venture to export the production mode of “Chinese Standard” building materials with small investment, large output, low cost and high return . At the same time, with the help of the huge marketing network of the joint venture, the Company has realized the wide coverage of the construction ceramic market .

In respond to the market where the development of building material industry is relatively mature, the Company constantly moves forward the production and service ends, improves the added value of services, and realizes the deep integration of business through localized operation . Since 2015, the Company has started to build local subsidiaries in India and Turkey to improve a series of supporting businesses in the local market, such as the whole line scheme, accessories and consumables sales, equipment maintenance and renovation, production raw material supply and after-sales service, bringing more timely, professional and comprehensive high-quality services .

In recent years, the Company has made breakthroughs in overseas high-end markets such as Europe and America, and gradually exported core products; at the same time, since 2018, the Company has gradually set foot in the European high-end construction machinery market by setting up subsidiaries in Luxembourg and acquiring 60% equity of Italian ceramic machinery enterprise Welko, so as to combine China’s cost advantage with European technology, and establish European design, and meanwhile, has set up a design center in Europe to realize European design and European manufacturing, bring the Company’s core products to the high-end market through the channels of high-end brands, and promote the upgrading of the overall technology and brand image .

We believe that the Company’s overseas business will further expand its influence and increase its market share in the global market through the use of different levels of international development strategies and three-line integrated advancing .

KEDA Europe was established

KEDASection IV Discussion and Analysis of Operation

11Annual Report 2019

I. Discussion and analysis of operationIn 2019, under the influence by the rise of unilateralism and protectionism, Sino-US trade frictions, international

anti-dumping policies and other political and economic factors, the growth rate of global economy and trade sped down significantly, the growth rate of major developed economies continued to decline, and the downward pressure of emerging economies increased . Similarly, domestic manufacturing growth slowed down due to policy factors such as structural reform, deleveraging and housing market control . At the same time, with the in-depth promotion of environmental protection policies and supervision, the construction ceramics industry downstream of the Company continued to face problems such as overcapacity, insufficient demand, insufficient operating rate, rising cost of raw materials, and fierce industry competition .

Under the complex economic situation at home and abroad, during the reporting period, the Company focused on main business with advantages . On the one hand, the Company focused on the development of overseas markets, developed the high-end construction machinery market in Europe and the United States, and completed the stage layout of African construction ceramics market . On the other hand, after studying and judging the industry trend, the Company vigorously developed high-end and intelligent building materials and machinery products such as large board and foamed ceramics, actively promoted service businesses such as repair and transformation and parts sales, and led the upgrading and transformation of domestic building ceramics stock market through the intelligent development of building ceramics machinery . In addition, the Company’s clean energy business and wall machinery business also achieved a large growth in the reporting period . In 2019, the overall sales scale continued to grow throughout the year, and the Company turned from deficits to profit .

(1) Ceramic mechanical products experiencing iterative optimization, and influence in overseas high-end market continuing to increase

In 2019, the Company closely focused on the “technology leading” and “product leading” strategies for development and transformation, and strengthened the effort in product technology research and development and innovation . During the reporting period, in terms of molding equipment, the subsidiary Henglitai’s HT36000 large-size ceramic plate intelligent press machine was successfully put into production at MONALISA, successfully pressing 1600 × 3600 (mm) super large size tiles, which has created a precedent for the production of over 3 m super large tiles with domestic equipment, and achieved a milestone leap in China’s ceramic equipment; in terms of deep processing and production equipment, the Company has concentrated its efforts on technical research and development of large-scale ceramic rock plate polishing equipment, CNC intelligent lighting equipment that can be centralized control, multi-functional cutting and grinding production line, and other products, further improving the level of equipment intelligence; in terms of firing equipment, in addition to consolidating the traditional wall and floor tile market, the Company’s kiln products have been successfully applied in foamed ceramics, refractories and lithium battery industries, further expanding the application field .By pushing forward the green, high-end and intelligent development of construction ceramics machinery, the Company continues to lead the upgrading and iterative optimization of domestic construction ceramics .

Coal gasification system for Kaiman Aluminum co ., ltd AAC block production line

KEDA Section IV Discussion and Analysis of Operation


Under the strategic guidance of the Company’s vigorous layout of “globalization”, the Company’s ceramic machinery has made new progress in the overseas market in 2019 .During the reporting period, under the output of the production mode of “Chinese Standard” building materials with small investment, large output, low cost and high return, with the excellent whole line project cases of African ceramic factory as the model, the Company successively undertook the ceramic whole line projects of customers in Zambia, Zimbabwe and other countries, and at the same time, undertook 20 YP series automatic hydraulic presses of Wangkang Group in three ceramic factories in Saudi Arabia, Ghana and Nigeria, further pulling the Company’s export of building material machinery . At present, from Algeria to South Africa, the Company’s building material machinery and equipment has radiated the whole Africa from north to south . At the same time, in high-end markets such as Europe and the United States, the Company signed a strategic cooperation agreement with Saxa Gres group, a famous Italian ceramic tile enterprise, for the R & D and supply of ceramic production equipment of Saxa Gres group, in addition to two procurement contracts for the whole production line of ultra thick brick . This is the first time that the whole line of Chinese ceramics enters the high-end ceramic market in Italy, so the Company has intended to subvert the European market’s perception of Chinese equipment through the construction of this sample factory and the cost of ultra-high cost performance, so as to improve the reputation and market influence of Chinese equipment .In addition, during the reporting period, the Company also signed a purchase order for centralized management and control of intelligent polishing and finishing line with Daltile factory of Mohawk Industrial Group, the largest ceramic manufacturer in the world . Moreover, the new wall and floor tile ceramic production line project cooperated with SAM YOUNG, a well-known ceramic enterprise in South Korea, was officially put into operation, realizing the zero breakthrough of Chinese press machine in the high-end market of South Korea, and gaining the recognition of overseas high-end market .

(2) The scale of African pottery construction projects taking shape, and lean management achieving remarkable results

With the successful operation of ceramic plants in Kenya, Tanzania and Ghana, during the reporting period, the Company continued to explore the African construction ceramic market, successfully put into production the second phase of Ghana project and the Senegal project, and planned to build the Zambia construction ceramic project . Thus, the Company has completed the first phase of the strategic layout in the African building materials blank area . At present, with the extensive sales outlets of the joint venture company, the Company’s construction ceramics business reached a sales revenue of CNY 1,062 million yuan in the reporting period, achieving a rapid growth of 31 .34% . During the course of operation, African ceramic factories, on the one hand, adopted centralized negotiation and strategic cooperation to reduce the cost of raw materials and energy supply through, on the other hand, comprehensively streamlined the internal management process and implemented lean production to reduce the damage rate and production cost of ceramic factories and improve the rate of superior products and the daily production of production lines . Benefiting from lean management, cost reduction and efficiency improvement, the overall gross profit margin of African ceramic factory increased by 3 .54 percentage points in the reporting period .

(3) Clean energy environmental protection expanding the application field, and wall material machinery consolidating the leading position

Under the multiple promotion of policy dividend and economic structure transformation, the Company’s clean coal gasification technology and equipment business and other businesses ushered in the development period . During the reporting period, KEDA (Anhui) Clean Energy, the controlled subsidiary of the Company, was invited to participate in the “2019 World Manufacturing Conference” jointly sponsored by the Ministry of Industry and Information Technology, the Ministry of Science and Technology, the People’s Government of Anhui Province and other ministries and associations . Its core product “modular cascade regenerative clean coal gasification system” won the conference’s “Gold Award for Innovative Products” by virtue of its technological innovation, design novelty, green environmental protection and other advantages, and at the same time, the product was also selected into the second batch of international “best energy saving technology and best energy saving practice” projects selected by the National Development and Reform Commission and International Energy Efficiency Partnership (IPEEC), obtaining the recognition by the industry and relevant departments . During the reporting period, the order volume of clean coal gasification technology and equipment business of the Company exceeded CNY 1,400 million yuan, a record high, and achieved continuous zero breakthroughs in coking and synthetic ammonia industry, further widening the application field and setting an industry model .



In terms of wall machinery and equipment, during the reporting period, “KQSAX autoclaved aerated concrete saddle cage cycle system”, “KQSGJ-01 cage space multi-point welder” and “KQSTD brick stamp full-automatic packing and bagging machine” independently developed by the Company’s wholly-owned subsidiary, KEDA (Anhui) Industrial successfully passed the provincial new product appraisal, and the technical level reached the domestic leading level, making positive efforts to improve the technical level of the industry; at the same time, KEDA (Anhui) Industrial was selected as “Outstanding Enterprise of Building Material Machinery Industry” by China Building Materials Machinery Industry Association, and awarded the honor of “First Prize of Science and Technology Award of Building Material Machinery Industry in 2019”, representing the full recognition by the industry . With the support of relevant policies such as the utilization of wall material waste and the collection of environmental protection tax, the Company’s wall machinery business achieved rapid development in the reporting period . The volume of orders received in the whole year doubled year over year, and the annual sales revenue reached nearly CNY 400 million yuan, further consolidating the leading position of Kodak’s Suremaker brand in the high-end field of autoclaved aerated concrete .

II. Main business situation during the reporting periodDuring the reporting period, the Company realized an operating income of CNY 6,422 .4233 million yuan, a year-

on-year increase of 5 .79%; realized a net profit of CNY 229 .3966 million yuan, a net profit of CNY 119 .3366 million yuan attributable to the listed company, and a net profit of CNY 66 .1506 million yuan attributable to the shareholders of the listed company after deducting non-recurring profit and loss, turning losses into profits .

(i) Main business analysis1. Analysis table of changes in the subjects related to the profit statement and cash flow statement

Unit: Ten thousand yuan Currency: CNY

SubjectBalance of the current

period

Balance of the same period in previous year

Proportion of change (%)

Operating revenue 642,242 .33 607,083 .82 5 .79

Operating cost 493,246 .05 482,203 .50 2 .29

Sales expenses 39,459 .43 35,133 .53 12 .31

Administration expenses 47,674 .16 49,576 .72 -3 .84

R&D expenses 16,632 .64 17,783 .00 -6 .47

Financial expenses 18,793 .17 14,578 .75 28 .91

Net cash flows from operating activities 59,383 .31 5,617 .07 957 .19

Net cash flow generated from investing activities -50,676 .36 -61,865 .02 18 .09

Net cash flow generated from financing activities -10,182 .88 40,848 .27 -124 .93

Reasons for change in net cash flow from operating activities: the net cash flow from operating activities increased by 957 .19% compared with the same period of last year, mainly due to the increase of cash received from selling goods and providing services in this period compared with the same period of last year .

Cellular ceramic production line in KEDA pilot plantDLT efficiency benchmark- kiln Alpha series



Reasons for changes in net cash flow from financing activities: the net cash flow from financing activities decreased by 124 .93% compared with the same period of last year, mainly due to the large amount of cash paid by the Company to repay debts in the current period .

2. Income and cost analysis√Applicable □Not applicableIn 2019, the Company achieved an operating income of CNY 6422 .4233 million yuan, an increase of 5 .79% year

over year . Among which, the main operating income was CNY 6,414 .0204 million yuan, a year-on-year increase of 5 .77%; the main operating expense was CNY 4,927 .2092 million yuan, a year-on-year increase of 2 .27%

(1)Description of main business by industry, product and regionUnit: Ten thousand yuan Currency: CNY

Main business by industry

By industryOperating

revenue

Operating

cost

Gross

profit

margin

(%)

Increase or

decrease in

operating

income over

the previous

year (%)

Increase or

decrease in

operating

cost over

the previous

year (%)

Increase

or decrease in gross

profit rate over the

previous year (%)

Machinery and

equipment industry297,693 .63 223,782 .34 24 .83 -17 .47 -23 .43 Increase by 5 .85%

Clean energy industry 147,744 .13 123,945 .23 16 .11 39 .02 36 .01 Increase by 1 .86%

Lithium battery

material industry46,610 .13 45,391 .48 2 .61 44 .58 54 .91 Decrease by 6 .49%

Lease service

industry7,328 .01 2,079 .89 71 .62 -21 .37 -8 .48 Decrease by 4 .00%

Building ceramics

industry106,111 .25 68,518 .41 35 .43 31 .27 24 .31 Increase by 3 .61%

Other industries 35,914 .89 29,003 .58 19 .24 111 .16 147 .29 Decrease by 11 .80%

Main business by product

By productOperating

revenue

Operating

cost

Gross

profit

margin

(%)

Increase or

decrease in

operating

income over

the previous

year (%)

Increase or

decrease in

operating

cost over

the previous

year (%)

Increase or

decrease in gross


previous year(%)

Building material

machinery and

equipment

290,452 .47 218,831 .83 24 .66 -18 .06 -24 .00 Increase by 5 .90%

Clean environmental

protection equipment147,744 .13 123,945 .23 16 .11 39 .02 36 .01 Increase by 1 .86%

Lithium battery

material46,610 .13 45,391 .48 2 .61 44 .58 54 .91 Decrease by 6 .49%

Financial leasing 7,328 .01 2,079 .89 71 .62 -21 .37 -8 .48 Decrease by 4 .00%

Building ceramics 106,111 .25 68,518 .41 35 .43 31 .27 24 .31 Increase by 3 .61%

Others 43,156 .06 33,954 .09 21 .32 85 .45 111 .86 Decrease by 9 .81%



Main business by region

By regionOperating

revenue

Operating

cost

Gross

profit

margin

(%)

Increase or

decrease in

operating

income over

the previous

year (%)

Increase or

decrease in

operating

cost over

the previous

year (%)

Increase or

decrease in gross


previous year (%)

Domestic 392,264 .90 309,954 .18 20 .98 3 .01 -0 .66 Increase by 2 .91%

Abroad 249,137 .14 182,766 .74 26 .64 10 .45 7 .65 Increase by 1 .91%

Description of main business by industry, product and region

1 . During the reporting period, the operating income of building material machinery and equipment reached CNY 2,905 million

yuan, a year-on-year decrease of 18 .06%, mainly due to the decline of sales revenue of domestic building material machinery

products of the Company due to the impact of the decline of prosperity index in downstream market .

2 . During the reporting period, the operating income of clean environmental protection equipment reached CNY 1,477 million

yuan, a year-on-year increase of 39 .02%, mainly due to the Company’s large increase in clean gas stove business .

3 . During the reporting period, the operating revenue of lithium battery materials business reached CNY 466 million yuan, a

year-on-year increase of 44 .58%, mainly due to the significant increase in the revenue realized by the subsidiary Sichuan

New Material .

4 . During the reporting period, financial leasing achieved an operating income of CNY 73 .2801 million yuan, a year-on-year

decrease of 21 .37%, mainly due to the decrease in interest income from financial leasing .

5 . During the reporting period, the building ceramics business achieved an operating income of CNY 1,061 million yuan, a year-

on-year increase of 31 .27%, mainly due to the full release of the second-phase capacity of the subsidiary Keda Kenya and

the launch of the subsidiary Twyford Senegal in this period .

6 . Other products achieved an operating income of CNY 432 million yuan during the reporting period, a year-on-year increase

of 85 .45%, mainly due to the substantial increase in operating income achieved by subsidiaries New Energy Automobile Co .

Ltd . and KEDA Electricity Selling in the current period .

(2) Analysis table of production and sales volumes√Applicable □Not applicable

Main products UnitProduction

volume

Sales

volume

Inventory

level

Increase or

decrease of

production

volume over

the previous

year (%)

Increase or

decrease of

sales volume

over the

previous

year (%)

Increase or

decrease of

inventory

level over

the previous

year (%)

Press machine Unit 273 290 105 -29 .64 -26 .77 -13 .93

Polishing machine Set 184 189 7 -17 .12 -12 .90 -41 .67

Kiln Set 83 83 0 -7 .78 -7 .78 0

Autoclaved aerated

concrete equipmentSet 26 24 4 36 .84 41 .18 100 .00

Building ceramics SQ KM 49 44 14 28 .78 29 .15 52 .30

Gas stove Set 7 7 0 0 0 0

Desulfurization

equipmentSet 70 70 0 14 .75 14 .75 0



(3) Cost analysis tableUnit: Ten thousand yuan

Situation by industry

By industryCost composition

item

Current

amount

Proportion

of current

amount to

total cost

(%)

Amount of the

same period

in the previous

year

Proportion of

amount of the

same period in

the previous

year to total

cost (%)

Proportion

of change in

current amount

over the same

period of last

year (%)

Description

Machinery and

equipment industry

Direct material 175,839 .34 78 .58 236,134 .58 80 .80 -25 .53

Direct labor 12,375 .92 5 .53 14,080 .87 4 .82 -12 .11

Manufacturing

expenses32,122 .74 14 .35 38,968 .74 13 .33 -17 .57

Depreciation 3,444 .35 1 .54 3,058 .05 1 .05 12 .63

Subtotal 223,782.34 100.00 292,242.24 100.00 -23.43

Clean energy

industry

Direct material 90,448 .71 72 .98 68,381 .85 75 .04 32 .27

Direct labor 3,759 .79 3 .03 3,624 .53 3 .98 3 .73

Manufacturing

expenses28,760 .68 23 .20 18,111 .09 19 .87 58 .80

Depreciation 976 .05 0 .79 1,011 .40 1 .11 -3 .50

Subtotal 123,945.23 100.00 91,128.86 100.00 36.01

Financial leasing Interest 2,079.89 100.00 2,272.63 100.00 -8.48

Lithium battery

material industry

Direct material 34,765 .51 76 .59 22,465 .98 76 .67 54 .75

Direct labor 571 .49 1 .26 527 .05 1 .80 8 .43

Manufacturing

expenses9,009 .43 19 .85 5,862 .31 20 .01 53 .68

Depreciation 1,045 .05 2 .30 446 .48 1 .52 134 .06

Subtotal 45,391.48 100.00 29,301.82 100.00 54.91

Building ceramics

industry

Direct material 40,297 .40 58 .81 33,461 .96 60 .71 20 .43

Direct labor 5,391 .88 7 .87 4,218 .59 7 .65 27 .81

Manufacturing

expenses12,832 .26 18 .73 10,363 .95 18 .80 23 .82

Depreciation 9,996 .87 14 .59 7,075 .09 12 .84 41 .30

Subtotal 68,518.41 100.00 55,119.58 100.00 24.31

Other industries

Direct material 20,756 .74 71 .57 7,033 .85 59 .97 195 .10

Direct labor 1,796 .87 6 .20 1,601 .00 13 .65 12 .23

Manufacturing

expenses5,787 .05 19 .94 2,507 .12 21 .38 130 .82

Depreciation 662 .93 2 .29 586 .65 5 .00 13 .00

Subtotal 29,003.58 100.00 11,728.62 100.00 147.29



By product

By productCost composition

item

Current

amount

Proportion

of current

amount to

total cost

(%)

Amount of the

same period

in the previous

year

Proportion of

amount of the

same period

in the previous

year to total

cost (%)

Proportion

of change in

current amount

over the same

period of last

year (%)

Description

Building material

machinery sector

Direct material 172,536 .12 78 .84 233,351 .96 81 .04 -26 .06

Direct labor 11,922 .00 5 .45 13,569 .20 4 .71 -12 .14

Manufacturing

expenses30,975 .38 14 .15 38,007 .41 13 .20 -18 .50

Depreciation 3,398 .34 1 .55 3,015 .27 1 .05 12 .70

Subtotal 218,831.83 100.00 287,943.83 100.00 -24.00

Clean

environmental

protection

equipment

Direct material 90,448 .71 72 .97 68,381 .85 75 .04 32 .27

Direct labor 3,759 .79 3 .03 3,624 .53 3 .98 3 .73

Manufacturing

expenses28,760 .68 23 .20 18,111 .09 19 .87 58 .80

Depreciation 976 .05 0 .79 1,011 .40 1 .11 -3 .50

Subtotal 123,945.23 100.00 91,128.86 100.00 36.01

Financial leasing Interest 2,079 .89 100 .00 2,272 .63 100 .00 -8 .48

Lithium battery

material

Direct material 34,765 .51 76 .59 22,465 .98 76 .67 54 .75

Direct labor 571 .49 1 .26 527 .05 1 .80 8 .43

Manufacturing

expenses9,009 .43 19 .85 5,862 .31 20 .01 53 .68

Depreciation 1,045 .05 2 .30 446 .48 1 .52 134 .06

Subtotal 45,391.48 100.00 29,301.82 100.00 54.91

Building ceramics

Direct material 40,297 .40 58 .81 33,461 .96 60 .71 20 .43

Direct labor 5,391 .88 7 .87 4,218 .59 7 .65 27 .81

Manufacturing

expenses12,832 .26 18 .73 10,363 .95 18 .80 23 .82

Depreciation 9,996 .87 14 .59 7,075 .09 12 .84 41 .30

Subtotal 68,518.41 100.00 55,119.58 100.00 24.31

Others

Direct material 24,059 .96 70 .86 9,816 .47 61 .25 145 .10

Direct labor 2,250 .79 6 .63 2,112 .67 13 .18 6 .54

Manufacturing

expenses6,934 .41 20 .42 3,468 .45 21 .64 99 .93

Depreciation 708 .94 2 .09 629 .43 3 .93 12 .63

Subtotal 33,954.09 100.00 16,027.03 100.00 111.86



(4) Main sales customers and main suppliersThe sales of the top five customers was CNY 1,083 .2287 million yuan, accounting for 16 .89% of the annual sales

total; of which the sales of related party in the sales of the top five customers was CNY 316 .4037 million yuan, accounting for 4 .93 % of the annual sales total .

The amount of purchases of the top five suppliers was CNY 607 .8672 million yuan, accounting for 10 .29% of the annual purchases total; of which the amount of purchases of related party in the purchases of the top five suppliers was CNY 338 .1179 million yuan, accounting for 5 .72% of the annual purchases total .

3. ExpensesUnit: Ten thousand Yuan, Currency: CNY

SubjectBalance of the current

period

Balance of the same period in

previous year

Proportion of change (%)

Sales expenses 39,459 .43 35,133 .53 12 .31

Administration expenses 47,674 .16 49,576 .72 -3 .84

Financial expenses 18,793 .17 14,578 .75 28 .91

4. R&D input(1) R&D Input Statement

Unit: Ten thousand yuan

Expensed R&D investment in the current period 27,488 .43

Capitalized R&D investment in the current period 0 .00

Total R&D investment 27,488.43

Proportion of total R&D investment to operating income (%) 4 .28

Number of the Company’s R&D personnel 648

Proportion of number of R&D personnel to the whole personnel (%) 13 .17

Proportion of capitalized R&D investment (%) 0 .00

5. Cash flowUnit: Ten thousand yuan Currency: CNY

Subject 2019 2018Increase or

decrease in amount

Increase or

decrease (%)

Tax refunds received 9,568 .31 19,273 .48 -9,705 .17 -50 .36

Cash received in investment recovery 147 .86 1,500 .00 -1,352 .14 -90 .14

Net cash received from disposal of subsidiaries and other business units

590 .21 590 .21

Other cash received from investment activities 53,327 .75 166,500 .00 -113,172 .25 -67 .97

Cash paid for investment 543 .10 17,603 .22 -17,060 .12 -96 .91

Net cash paid to acquire subsidiary companies and other operating units

9,045 .49 1,642 .33 7,403 .16 450 .77

Other cash paid in relation to investment activities 56,910 .00 168,847 .90 -111,937 .90 -66 .30

Cash received from absorbing investment 4,555 .69 2,777 .70 1,777 .99 64 .01

Cash paid for debt repayment 412,262 .36 291,546 .81 120,715 .55 41 .41

Additional description:

(1) The current-period occurring amount of tax refund received decreased by 50 .36% over the previous period, mainly due to

the decrease of export tax refund received by the Company in this period .

(2) The current-period occurring amount for cash received during the recovery of the investment decreased by 90 .14% over

the previous period, mainly because the parent company recovered CNY 15 million yuan of investment in Nanguo Taodu

(Zhaoqing) Green Ceramic Raw Materials Co ., Ltd . in the same period last year



(3) The net cash received from the disposal of

subsidiaries and other operating units was

CNY 5 .9021 million yuan, mainly due to

the net cash received by the Company in

the current period from the disposal of the

equity of subsidiaries Fujian Keda Electric

Power Co ., Ltd . and Maanshan KEDA Jinxin

Automobile Maintenance Service Co ., Ltd .

(4) Other cash received related to investment

activities decreased by 67 .97% over the

previous period, mainly due to the decrease

of financial products redeemed by the

Company in this period compared with the

same period of last year .

(5) The current-period occurring amount for

cash paid by investment in the current period

decreased by 96 .91% over the previous period, mainly because the Company paid more money in equity investment in the

same period of last year .

(6) The current-period occurring amount for net cash paid by subsidiaries and other business units increased by 450 .77% over

the previous period, mainly due to the net cash paid in the current period for the Company’s acquisition of 60% equity of the

subsidiary Welko .

(7) The current-period occurring amount for other cash payments related to investment activities decreased by 66 .30% over the

previous period, mainly due to the decrease in the wealth management products purchased by the Company in the current

period compared with the same period of the previous year .

(8) The current-period occurring amount for cash received from investment absorption decreased by 64 .01% over the previous

period, mainly due to the absorption by the subsidiary Brightstar of the capital increase from minority shareholders in the

current period .

(9) The current-period occurring amount for cash paid for debt repayment increased by 41 .41% over the previous period, mainly

because the Company repaid more bank loans in the current period .

KEDA 2019 new employee orientation training for college graduates

KEDA & DLT won the 15th China Ceramic Industry Emerging List “China Ceramic Science and Technology Innovation

Award”



(ii) Analysis of assets and liabilities1. Assets and liabilities

Unit: Ten thousand yuan

Item name

Amount at

the end of

current period

Proportion of

amount at

the end of

current period

to total assets

(%)

Amount at

the end of

previous

period

Proportion of

amount at

the end of

previous

period to

total assets

(%)

Proportion of

change in amount

at the end of

current period

compared with

that at the end of

previous period

(%)

Description

Monetary fund 130,459 .92 10 .13 147,565 .89 12 .11 -11 .59

Trading financial assets 306 .19 0 .02

Notes receivable 808 .64 0 .06 20,278 .75 1 .66 -96 .01

Accounts receivable 164,347 .82 12 .76 164,683 .19 13 .51 -0 .20

Accounts receivable financing 20,520 .17 1 .59

Advance payment 36,810 .64 2 .86 37,252 .93 3 .06 -1 .19

Other receivables 12,470 .48 0 .97 11,105 .86 0 .91 12 .29

Inventory 239,040 .87 18 .56 198,110 .71 16 .25 20 .66

Non-current assets due within

one year68,005 .82 5 .28 85,560 .48 7 .02 -20 .52

Other current assets 17,394 .96 1 .35 11,943 .99 0 .98 45 .64

Financial assets available for sale 1,926 .00 0 .16 -100 .00

Long-term accounts receivable 29,592 .45 2 .30 36,354 .10 2 .98 -18 .60

Long-term equity investment 115,998 .77 9 .01 113,406 .09 9 .30 2 .29

Other equity instrument investment 6,025 .14 0 .47

Fixed assets 263,480 .52 20 .45 213,424 .24 17 .51 23 .45

Projects under construction 21,521 .61 1 .67 18,345 .94 1 .51 17 .31

Intangible assets 44,744 .06 3 .47 45,667 .00 3 .75 -2 .02

Goodwill 97,179 .67 7 .54 95,467 .53 7 .83 1 .79

Long-term deferred expenses 622 .87 0 .05 693 .72 0 .06 -10 .21

Deferred income tax assets 16,003 .64 1 .24 14,719 .10 1 .21 8 .73

Other non-current assets 2,792 .72 0 .22 2,306 .63 0 .19 21 .07

Total assets 1,288,126.96 100.00 1,218,812.14 100.00 5.69

Short-term loan 218,196 .14 28 .62 216,640 .85 30 .10 0 .72

Notes payable 52,983 .03 6 .95 56,786 .84 7 .89 -6 .70

Accounts payable 172,073 .07 22 .57 145,929 .64 20 .28 17 .92

Accounts pre-received 69,835 .03 9 .16 54,088 .50 7 .52 29 .11

Payroll payable 12,888 .73 1 .69 10,350 .23 1 .44 24 .53

Tax payable 4,411 .31 0 .58 6,295 .29 0 .87 -29 .93

Other accounts payable 12,181 .13 1 .60 12,836 .47 1 .78 -5 .11

Non-current liabilities due in

one year107,227 .39 14 .07 66,963 .43 9 .30 60 .13

Long-term loan 98,311 .03 12 .90 128,000 .61 17 .79 -23 .19

Long-term accounts payable 10,000 .00 1 .39 -100 .00

Deferred income 2,090 .00 0 .27 2,540 .00 0 .35 -17 .72

Deferred income tax liabilities 1,860 .25 0 .24 1,327 .37 0 .18 40 .15

Other non-current liabilities 10,283 .01 1 .35 7,922 .47 1 .10 29 .80

Total liabilities 762,340.12 100.00 719,681.69 100.00 5.93


(1) The closing balance of notes receivable in the current period decreased by 96 .01% compared with the closing balance of the

previous period, mainly because, according to the relevant provisions of the new financial standards, the Company adjusted

part of the notes originally listed in the notes receivable to the receivables financing for listing .



(2) The closing balance of other current assets increased by 45 .64% compared with the closing balance of the previous period,

mainly due to the increase of input tax to be deducted from the Company’s value-added tax at the end of the current period .

(3) The closing balance of available-for-sale financial assets decreased by 100 .00% compared with the ending balance of the

previous period, mainly because the Company changed the available-for-sale financial assets of CNY 19 .26 million at the end

of the previous year to other equity instrument investment for listing .

(4) The closing balance of other equity instrument investment was CNY 60 .2514 million yuan, mainly because, according to

the relevant provisions of the new financial standards, the Company changed the available-for-sale financial assets of CNY

19 .26 million yuan at the end of the previous year to other equity instrument investment for listing and the merged unit Dehua

Investment was newly added .

(5) The closing balance of non-current liabilities due within one year increased by 60 .13% compared with the closing balance of the

previous period, mainly due to the increase in long-term loans due within one year and long-term payables due within one year .

(6) The closing balance of deferred income tax liabilities at the end of the current period increased by 40 .15% compared with

the closing balance at the end of the previous period, mainly because the Company’s acquisition of 60% of Welko’s equity

confirmed the corresponding deferred income tax liabilities in the current period

(iii) Analysis of investment situation1. Overall analysis of external equity investment√Applicable □Not applicable


Investment amount within the reporting period 31,436 .77

Variable number of increase or decrease in investment 13,830 .35

Investment amount of last period 17,606 .42

Range of increase or decrease in investment (%) 78 .55

(1) Significant equity investment① From January to August 2019, the subsidiary Keda Holding increased the capital of the subsidiary Brightstar

in the same proportion as the minority shareholders, of which the subsidiary Keda Holding increased its capital by USD12 .0833 million .

② In February 2019, the subsidiary Keda International invested EUR 16 .8 million to purchase 60% of the shares of I .C .F&WELKO S .P .A held by Italy’s Witaly Srl .

③ In March 2019, the subsidiary Anhui Xincheng Investment invested CNY 29 .8542 million yuan to purchase 81 .79% equity of Foshan Dehua Investment Co ., Ltd .

④ From April to June 2019, the subsidiary Anhui New Material increased the capital of Fujian Kehua Graphite in the same proportion as the minority shareholders, of which Anhui New Material increased its capital by CNY 12 million yuan .

HT36000 Smart press for Large Format Ceramic Slab KD33000 Super rock slab pressing system



(2) Significant non-equity investmentUnit: Ten thousand Yuan, Currency: CNY

Item nameProject

amount

Project

schedule

Amount

invested

during the

reporting

period

Accumulated

amount

actually

invested

Sources of financing

R&D and industrialization project of intelligent

manufacturing equipment for building ceramics

with annual production of 200 units (sets)

15,500 .00 100 .00 1,512 .69 15,243 .15 Raising+self-financing

Project of production relocation and technical

reform of digital ceramics machinery10,960 .00 100 .00 1,157 .82 10,908 .49 Raising+self-financing

Project of lithium battery series anode material

with annual production of 20,000 tons23,539 .00 96 .13 6,160 .20 22,629 .11 Raising+self-financing

Project of manufacturing base for digital ceramics

equipment35,000 .00 50 .26 11,331 .63 17,590 .34 Raising+self-financing

African ceramics factory project 92,951 .32 97 .64 48,078 .35 90,760 .70 Raising+self-financing

Total 197,950.32 68,240.69 157,131.98

(iv) Analysis of main holding and shareholding companiesUnit: Ten thousand Yuan, Currency: CNY

Company name Business natureRegistered

capital

Share-

holding

ratio of the

Company

(%)

Total

Assets

Net

assetsNet profit

Foshan Henglitai Machinery

Co ., Ltd .

Building ceramic

machinery

manufacturing and

sales

14,060 .00 100 .00 116,498 .02 70,726 .43 8,534 .82

Anhui Xincheng Financial

And Leasing Co ., Ltd .

Provision of supporting

financial leasing services

for company business

USD

3,500 .00100 .00 135,941 .71 27,701 .01 2,326 .80

Keda (Anhui) New Material

Co ., Ltd .

Production and sales of

anode material15,000 .00 100 .00 61,352 .07 7,673 .96 -2,157 .20

KEDA (Sichuan) New Material

Co ., Ltd .Lithium carbonate trade 5,000 .00 100 .00 30,369 .95 2,309 .01 -2,625 .61


Energy Gas Co ., Ltd .


gas40,000 .00 82 .50 15,084 .12 -87,504 .23 -1,190 .01

Anhui KEDA Clean Energy

Co ., Ltd .

Manufacturing

and sales of clean

energy environmental

protection equipment

4,460 .00 97 .37 96,621 .35 55,458 .47 2,662 .03

Qinghai KEDA Lithium

Industry Co ., Ltd .Investment platform 77,000 .00 100 .00 98,455 .00 96,892 .33 2,155 .36

Keda (Kenya) Ceramics

Company Limited


building ceramicsUSD100 .00 51 .00 50,569 .08 29,561 .90 8,134 .54

Keda (Ghana) Ceramics

Company Limited



Twyford (Tanzania) Ceramics

Company Limited





III. Discussion and analysis on the future development of the Company(i) Industrial pattern and trendBuilding material machinery and building ceramics industry:In 2019, China’s building material machinery industry actively implemented the development concept of “industrial

upgrading, equipment first”, and overcame difficulties in product innovation, service innovation, market expansion, etc ., bringing positive changes in industry transformation and upgrading .However, under the influence of endogenous growth momentum, insufficient high-end development and other factors, the industry still had the pressure of stable growth .According to the statistics of the National Bureau of Statistics, in 2019, there were 478 enterprises with annual main business income of CNY 20 million yuan and above in the national building material machinery industry, cumulatively realizing the main business income of CNY 65,743 million yuan, a year-on-year decrease of 0 .01% .

In terms of the downstream building material industry, according to the data of the Ministry of Industry and Information Technology, the added value of building material industry in 2019 increased by 8 .5% year over year, and the production of building materials products kept growing, among which the production of ceramic tiles and ceramic tiles increased by 7 .5% and 7 .4% year over year respectively . In 2019, under the background of slowing economic growth at home and abroad, Sino-U .S . trade friction, tightening of environmental protection policies, cross-border competition, China’s construction ceramics are facing increasingly fierce market competition and accelerated industry shuffling, while the two-way squeeze of industrial policy iteration and environmental protection standard raising has formed an anti-driving mechanism for the transformation and upgrading of China’s construction ceramics industry, accelerating the exit of backward production capacity and low-efficiency enterprises .According to the data of China Building Ceramics and Sanitaryware Association, in 2019, there were 1,522 building ceramics and sanitaryware enterprises with main business income of CNY 20 million yuan and above, a year-on-year reduction of 122 enterprises; The industry realized a total profit of CNY 26,611 million yuan in the whole year, a year-on-year increase of 12 .43%; the average sales profit margin of the industry was 6 .86%, a year-on-year increase of 0 .58% . At the same time of eliminating backward production capacity in the industry, the market share of the top ten brand enterprises in the industry has continued to soar, and the concentration of the construction ceramics industry has further improved . At the same time, the pace of intelligent and green development of the industry was accelerating . Green manufacturing and intelligent manufacturing became the main melody of the industry gradually entering a new era of high-quality development, and accelerating the promotion of intelligent manufacturing transformation and upgrading in the ceramic industry became the consensus of the current industry . In 2019, as the Guiding Catalogue of Industrial Structure Adjustment (2019 version) issued by the National Development and Reform Commission encouraged the development of ceramic panels and foamed ceramics, ceramic panels and ceramic rock panels became a powerful engine for technological innovation and green development of the industry .

In response to the transformation and upgrading needs of domestic downstream construction ceramic enterprises, on the one hand, with years of intensive efforts in energy conservation and emission reduction of building material machinery and intelligent manufacturing, the Company continued to update and upgrade energy conservation, environmental protection and intelligent equipment to improve product quality, production efficiency and reduce pollutant emissions . On the other hand, the Company actively promoted the maintenance and transformation and consumable parts sales and other businesses and provided faster and convenient services by improving the added value of the equipment, boosting the Company’s competitive strength .

In recent years, Chinese companies have actively gone abroad to seek development .According to the data of China Building Ceramics and Sanitaryware Association, with the continuous restriction of international anti-dumping and trade barriers and other trade policies, the 2019 annual export volume of China’s ceramic tiles reached 770 million square meters, down 8 .45% year-on-year . China’s ceramic enterprises began to expand overseas through the multinational localization strategy, directly building ceramic factories overseas to produce and sell building ceramics . As an enterprise taking the lead in exporting “Chinese Standard” building materials products overseas, the Company rapidly expanded overseas ceramic tile market by virtue of its first mover advantage, and seized the development opportunity by opening up the “corridor” of ceramic production and sales in East and West Africa, achieving a good investment income .

Lithium battery material industry:Driven by the rapid development of new energy automobile industry and the steady growth of consumer electronics

industry, the market of lithium battery and its upstream anode material and lithium carbonate has expanded rapidly in recent years . According to the research data of GGII, driven by the growth of the power battery terminal market and the



market’s further increase in the application of high rate and fast charging products, China’s lithium battery anode material market shipment in 2019 was 265,000 tons, a year-on-year increase of 38%, of which the artificial graphite shipment was 208,000 tons, a year-on-year increase of 61 .24%, accounting for 78 .5% of the total anode material shipment, a year-on-year increase of 9 .2% .

According to the statistics of Shanghai Nonferrous Metal Network (SMM), a well-known industry organization, in 2019, China’s lithium carbonate output was 159,000 tons, an increase of 31 .8% year-on-year; lithium hydroxide output was 76,000 tons, an increase of 29 .7% year-on-year .In 2019, due to the gradual release of the capacity of a great quantity of new lithium carbonate projects, there was a periodic oversupply of lithium carbonate material, leading to a large fluctuation in the price of lithium carbonate . At the same time, as the lithium carbonate industry began to clear in 2019, Australian mining companies stepped on the brakes, it is expected that global lithium supply pressure will ease in 2020 .With the continuing development of new energy vehicles in the future and the lasting demand of downstream customers for high-quality products, the price of lithium carbonate will gradually tend to be rational .

With the gradual maturity of the Company’s anode material related technology and the gradual release of the capacity of the 20,000 ton battery lithium carbonate project of the joint-stock subsidiary Lanke Lithium, the Company’s lithium battery material business is expected to see a gradual improvement in its competitiveness .

(ii) Development strategy of the CompanyIn 2019, under the severe domestic and foreign economic and political environment, the Company’s revenue

scale continued to grow, leading the steady development of building material machinery industry .In 2020, in the face of the increasing downward pressure on domestic and foreign economy, COVID-19 coronavirus pandemic and other complicated situations, the Company will, with the focus on the main business of building material machinery, take the following strategies: adhere to the strategic axis of “technology leading”, “global layout”, “cost reduction and efficiency improvement”, take high-end technology as the leading role, position in high-end equipment manufacturing industry, and improve the core competitiveness of products; adhere to the global development strategy, while deeply cultivating the overseas building material machinery market, support the development of overseas construction ceramics business, accelerate the realization of localized operation, and give full play to the synergy between overseas operation and domestic technology and service support; optimize the group’s equity structure and internal organizational structure, improve the professional ability of management and functional department personnel, improve organizational efficiency, and provide efficient service support for the company’s business development .

In view of the domestic building material machinery market, in the face of the acceleration of ceramic industry reshuffling and integration and the strict environmental protection policy, the Company will seize the demand of upgrading the production lines in the stock market, promote the intelligent and green transformation and upgrading of the downstream construction ceramics industry, and continue to expand and develop other building material machinery business on the basis of focusing on the construction ceramics machinery business, and explore cross field applications .

In view of the high-end market in Europe and America, the Company will, on the one hand, strengthen the integration of resources with Italian Welko, give full play to the synergy effect of both sides, improve the product structure of “Chinese Standard”, “Italian Standard” and “Sino-Italian-Standard”, and on the other hand, will be committed to improving the reputation and influence of our building material machinery in the European and American markets through the construction of Italian model factories and the cost-effective use of equipment .

In view of overseas emerging markets, the Company will continue to push forward the construction of ceramic factories in African countries, maintain the rapid growth of overseas construction ceramic business, drive the export of building material machinery through model projects; in view of overseas mature markets, the Company will strengthen the integration of local marketing network, management team and supply chain, and accelerate the localization of operation .

(iii) Business planIn 2020, the Company will focus on the core business of building material machinery, develop overseas architectural

ceramics and other important businesses, and continue to deepen the expansion of overseas markets around the transformation strategy of “technology leadership” and “product leadership”, and comprehensively enhance core competitiveness and brand influence . Achieve tax revenue of CNY 7,000 million yuan .



The key tasks in 2020 are:(1) Take forward-looking technology as leading factor to build high-end equipment manufacturing industryGuided by high-end technology, according to the upgrading and transformation of domestic intelligent production

line and the demand of building material machinery in overseas high-end market, the Company will focus on the technical research and development in the direction of intelligent and green, build the core competitiveness of the enterprise in the future market, and meanwhile, seek a further improvement in the quality management system and strictly test the production quality, comprehensively boosting the product strength . In addition, the Company will continue to open up new application areas around the core technology of the company, and explore new business growth points in the field of foamed ceramic line project, metal press machine and refractories press machine .

For the “Keda” and “Litai” brands, the Company will carry out layout according to the influence, product types and advantageous areas of different brands, and complete the division of brand and product matrix . At the same time, the Company will integrate the supply chain and sales system of double brands, and synchronize, consolidate and unify the standardized and modular supporting services of double brand background services, so as to optimize the production cost and improve the market sensitivity and service configuration ability .

(2) Boost the construction of overseas building ceramics projects and enhance the influence in the international market

Facing the favorable development situation of overseas market, the Company will continue to intensify the effort to carry out and implement its overseas development strategy . On the one hand, the Company will make use of the first mover advantage of African investment in building factories, further strengthen the expansion of overseas building ceramics market, follow up the strong demand of developing countries for building materials, fully tap and deepen the market space, so as to make the sales of building material machinery go hand in hand with overseas joint venture plants and improve operation effectiveness . On the other hand, the Company will be committed to improving the reputation and influence of the Company’s building material machinery in the European and American markets through the creation of Italian model factories and the cost-effective use of equipment, and furthermore promoting the Company’s core building material machinery products to enter the European and American high-end market .

(3) Optimize the organization management structure and strengthen the construction of manpower mechanismFacing the continuous turbulent external environment, on the one hand, the Company will streamline and optimize

the group’s equity structure and organizational structure, improve the professional ability of management personnel, enhance organizational efficiency, integrate the supply chain system, and boost organizational empowerment . On the other hand, the Company will strengthen internal control and audit, realize the full penetration of all business sectors and subsidiaries, strengthen post-investment assessment and management through the strengthening of internal control to improve the operation efficiency of the Company’s investment projects; at the same time, the Company will strengthen the construction of talent echelon and promotion channel, and carry out a more fair, competitive, incentive and adaptive incentive mechanism, so as to motivate the whole staff .

(4) Support the business development of Lanke Lithium, and fully assist in launching the production of new projects

In 2020, on the one hand, the Company will continue to carry out lithium carbonate trade business with Lanke Lithium through the wholly-owned subsidiary Sichuan KEDA Clean Energy to promote the expansion of the business of Lanke Lithium; on the other hand, the Company will fully support the construction of the 20,000-ton battery level lithium carbonate project of Lanke Lithium, assist Lanke Lithium in realizing the growth of battery level lithium carbonate capacity as soon as possible and raising the gross profit of products, so as to improve the Company’s income from investment .

The above business plan does not constitute the company’s performance commitment to investors . As the impact of the COVID-19 coronavirus pandemic on the global economy cannot be predicted, the plan is only based on the current market environment, and there is still uncertainty, so investors are invited to pay attention to investment risk .



(iv) Possible risks1. Impact risk of the COVID-19 coronavirus pandemic on the company’s businessThe global outbreak of the COVID-19 coronavirus pandemic has brought a significant impact on the Company’s

business . Due to the continuous fermentation of the overseas pandemic, the exit of the Company’s personnel and the import and export of goods are obviously restricted, and accordingly, the overseas business cannot be effectively carried out; at the same time, because the domestic pandemic still exists, the ceramic industry downstream of the company and the real estate industry are significantly affected, the Company’s business is faced with risks such as decline of market demand, increase of accounts receivable, and shortage of liquidity, while the overseas business is faced with risks such as delay of projects and weakening of investment willingness .

In response to the above risks, on the basis of pandemic prevention and control, the Company will, on the one hand, continue to track the development of the pandemic situation, strengthen communication with overseas customers through electronic means or overseas local agents and employees, and adjust the production plan according to the construction progress of customers; on the other hand, continue to strengthen capital control and risk control and optimize the product price system and production and operation costs, so as to minimize the adverse impact of the pandemic on the operation and development of the Company

2. Management and control risk brought by M&AThe Company’s traditional business is building material machinery business . Since 2007, the Company has entered

the business fields of environmental protection, cleaning energy, lithium battery material and other business fields, and has been transforming from a traditional building materials machinery and equipment supplier to a service provider . With the continuous expansion of the Company’s business scale and business field, the Company’s headquarters is facing great challenges in the business integration and control of merged and acquired subsidiaries . The geographical distance between companies, the huge internal organizational structure, the lack of cross industry knowledge and experience and other factors may make the Company exposed to certain management and control risk .

3. Goodwill impairment riskIn recent years, according to the needs of the Company’s business development, the Company has successively

acquired a number of companies through asset restructuring, capital increase, and equity transfer . However, in the situation of the overall macroeconomic downturn, the acquired companies have encountered the situation of making a provision for the impairment of the goodwill due to their lower-than-expected development . Moreover, there is still a risk of goodwill impairment in case of a sharp decline in the performance of future acquired subsidiaries .

4. Overseas investment and exchange rate fluctuation riskSince 2016, in line with the national “The Belt and Road” initiative, the Company has strengthened its layout in

overseas market by combining its own development advantages . In addition to the establishment of multiple overseas sales zones, it has successively invested in India, Turkey, Kenya, Ghana, Tanzania, Senegal, Italy, Luxembourg and other countries to set up subsidiaries, and gradually realized the localized operation . Due to the differences in culture, customs, politics and laws of different countries and regions, the Company may be exposed to certain operational and management risk for its overseas investment . In recent years, as the international trade situation is becoming more and more severe and the CNY exchange rate fluctuates greatly, the Company’s overseas subsidiaries may be exposed to the risk of profit and loss fluctuation and capital return caused by the exchange rate changes and other factors .

KEDASection V Important Matters


I. Scheme of common share dividends distribution or capitalization from capital reserve(i) Preparation, execution or adjustment of the cash dividend policyIn order to safeguard investors’ rights and interests, the Company has made clear stipulations on the principles

and requirements of profit distribution in the Articles of Association and Shareholders’ Return Planning, which meet the requirements of relevant normative documents such as “Guidelines for the Supervision of Listed Companies No . 3 — Cash Dividends of Listed Companies” (SRC [2013] No . 43) and “Guidelines for Cash Dividends of Listed Companies of Shanghai Stock Exchange” .

The audit of Zhongxi CPA Firm (Special Ordinary Partnership) confirms that the Company’s net profit attributable to the common shareholders of the parent company in 2019 is CNY 119,336,629 .81 yuan; the net profit in the statement of the parent company in 2019 is CNY 69,542,053 .84 yuan, and after deducting the statutory surplus reserve of CNY 6,954,205 .38 yuan withdrawn according to 10% of the said net profit in the current year, as of December 31, 2019, the distributable profit realized by the Company in 2019 is CNY 62,587,848 .46 yuan

According to Article 17 of “Guidelines for Cash Dividends of Listed Companies of Shanghai Stock Exchange”, “the cash paid by the listed company to repurchase its shares in the current year shall be deemed as cash dividend” . The company convened the board of directors and the shareholders’ conference on October 17, 2018 and November 7, 2018 respectively, deliberated and passed the Proposal on the Plan for Repurchasing the Company’s Shares, and used CNY 81,616,137 .27 yuan (excluding stamp duty, commission and other transaction expenses) to repurchase 17,904,245 shares by means of centralized bidding in the reporting period, with the transaction amount accounting for 130 .40% of the Company’s distributable profit in 2019 and 68 .39% of the net profit attributable to the common shareholders of the parent company in 2019, and such repurchase was in line with the relevant profit distribution policies .

Considering the actual situation of the Company, the Company will not make profit distribution or capitalization from capital reserve for the year 2019 . The plan shall be effective only after being reviewed and approved by the shareholders’ conference .

(ii) Scheme or plan of common share dividends distribution and capitalization from capital reserve in recent three years (including report period)

Unit: Yuan Currency: CNY

Dividend

Year

Distributed

bonuses per

10 shares

(shares)

Distributed

dividends

per 10

shares (Yuan)

(including tax)

Number of

capitalization

per 10 shares

(shares)

Amount of

cash dividends

(including tax)

Net profit in the annual

combined statements of

bonus that is attributable

to common shareholders

of the listed company

Net profit margin of

combined statements

that is attributable to

the common shareholders

of the listed company (%)

2019 0 0 0 0 119,336,629 .81 0 .00

2018 0 0 0 0 -588,578,574 .68 0 .00

2017 0 0 .5 0 78,860,285 .10 478,891,307 .30 16 .47

Note: The Company did not make cash dividends in 2018 and 2019, but has implemented share buyback .

II. Analysis and explanation on reasons and influences in accounting policies and accounting estimate changes, and corrections of significant accounting errors.(i) Analysis and explanation on reasons and influences in accounting policies and accounting estimate

changes1. Influences of the new financial instrument standards on the CompanyThe company has implemented the new financial instruments standard since January 1, 2019 . The standards

stipulate that on the implementation date of the standard, the enterprise shall classify and measure the financial instruments according to the regulations, and if the data of the previous comparative financial statements are inconsistent with the requirements of the standard, the enterprise does not need to adjust the information of the comparable period . The difference between the original book value of financial instruments and the new book value on the implementation date of these standards shall be included in retained earnings, other comprehensive earnings and other items in the financial statements on January 1, 2019 .

For the specific impact of the change of accounting policy, please refer to “the first implementation of the new financial standards, new income standards and new lease standards adjusts the relevant items of the financial statements at the beginning of the current year of the first implementation” .

KEDA Section V Important Matters


2. Influences of financial statement format adjustment on the CompanyOn April 30, 2019, the Ministry of Finance issued the “Notice on Revising and Printing the Format of Financial

Statements of General Enterprises for 2019” (hereinafter referred to as “CK [2019] No . 6”), which revised the format of financial statements of general enterprises . The mid-term financial statements and annual financial statements of non-financial enterprises in 2019 and the financial statements of subsequent periods that implement the accounting standards for business enterprises shall be prepared and implemented in accordance with the requirements of CK [2019] No . 6 .

According to the requirements of the notice of CK [2019] No . 6, the Company made the following adjustments to the format of financial statements:

(1) The originally listed item in the balance sheet, “notes receivable and accounts receivable”, was split into two items, “notes receivable” and “accounts receivable”; the originally listed item, “notes payable and accounts payable”, was split into two items, “notes payable” and “accounts payable”;

(2) The “minus: assets impairment loss” in the income statement was adjusted to “add: assets impairment loss (loss marked with “-”)”;

(3) The statement of cash flow specifies the criteria for filling in government subsidy . The government subsidy actually received by the enterprises, whether related to assets or income, is filled in the “Other cash received in relation to operating activities” item .

This change of accounting policy only affects the listing of the Company’s financial statement items, and has no material influence on the total assets, net assets and the Company’s profit and loss listed in the current and previous periods .

3. Influences of new non-monetary assets exchange and debt restructuring standards on the CompanySince June 10, 2019 and June 17, 2019, the Company has implemented the “Accounting Standards for Business

Enterprises No . 7 — Exchange of non-monetary assets” (CK [2019] No . 8) and the “Accounting Standards for Business Enterprises No . 12 — Debt restructuring” (CK [2019] No . 9) revised by the Ministry of Finance in 2019 . For the non-monetary asset exchange and debt restructuring that occurred before January 1, 2019, it is not necessary to trace back .

The company did not have major non-monetary asset exchanges or debt restructuring transactions in 2019, and the revision of the accounting standards for business enterprises had no significant influence on the Company’s financial statements during the reporting period .

III. Appointment and Dismissal of Accounting FirmUnit: Ten thousand Yuan, Currency: CNY

Currently appointed

Name of domestic accounting firm Zhongxi CPA Firm (Special Ordinary Partnership)

Remuneration of domestic accounting firm 80

Audit period of domestic accounting firm 19

Name Remuneration

Accounting firm of internal control audit Zhongxi CPA Firm (Special Ordinary Partnership) 40

Sponsor China Merchants Securities Co ., Ltd 1,000

IV. Major Litigation and Arbitration(1) The litigation and arbitration matters have been disclosed in the interim announcement and have no

follow-up progress√Applicable □Not applicable

Matter description and type Index for queryOn October 18, 2019, Jiangsu Kehang, the Company’s controlling subsidiary, received legal documents such as the “Subpoena” and “Notice of Response” [(2019) S 01 MC No . 2893] sent by the Nanjing Intermediate People’s Court of Jiangsu, through which, Jiangsu New Century Jiangnan Environmental Protection Ltd filed a lawsuit to Nanjing Intermediate People’s Court of Jiangsu Province for the infringement of technical secrets by the Company and its subsidiaries, Jiangsu Kehang and KEDA (Anhui) Clean Energy, with a claim amount of CNY 96 million yuan .At present, the case is still in the trial of the first instance .

For details, please refer to the Announcement of KEDA Clean Energy Co ., Ltd . Concerning Litigation disclosed by the Company in China Securities Journal, Securities Times and website of Shanghai Stock Exchange (www .sse .com .cn) on October 22, 2019 .

KEDASection V Important Matters


V. Material Contracts and Their Performances(i) Guarantee√Applicable □Not applicable

Unit: Ten thousand yuan Currency: CNYExternal guarantee (excluding the guarantee for the subsidiaries)

Guarantor

The

relationship

between the

guarantor

and the listed

company

Guaranteed

party

Amount of

guarantee

Date of

guarantee

(signing

day)

Guarantee

Guarantee

from

Guarantee

Guarantee

to

Guarantee

type

Whether

the

guarantee

has been

finished

Whether

the

guarantee

is overdue

Amount

override

Whether

there is

counter

guarantee

Whether it

is related-

party

guarantee

Related

Relationship

CompanyCompany

home office

Qinghai Salt

Lake Fozhao

Lanke Lithium

Industry Co .,

Ltd .

9,278 .78 2017/12/22 2017/12/22 2022/6/20

Joint and

several liability

guarantee

No No 0 No YesAssociated

company

KEDA (Anhui)

Industrial Co .,

Ltd .

Wholly-owned

subsidiary

Anhui Hudu

KEDA Fluid

Machinery

Co ., Ltd .

294 .00 2018/5/11 2019/5/15 2020/5/15

Joint and

several liability

guarantee


company

KEDA (Anhui)

Industrial Co .,

Ltd .

Wholly-owned

subsidiary

Anhui Hudu

KEDA Fluid

Machinery

Co ., Ltd .

160 .80 2018/5/11 2019/7/25 2020/6/19

Joint and

several liability

guarantee


company

Total guarantee amount incurred during the report period (excluding the guarantee for the subsidiaries) 454 .80

Total guarantee amount incurred during the report period (A) (excluding the guarantee for the subsidiaries) 9,733 .58

Guarantee of subsidiaries issued by the Company and themselves

Total guarantee amount of subsidiaries incurred during the reporting period 154,828 .16

Total guarantee balance amount of subsidiaries at the end of the reporting period (B) 198,660 .04

Total amount of the Company’s guarantee (including the guarantee of the subsidiaries)

Total Guarantee Amount (A + B) 208,393 .62

Ratio of total guarantee amount to net assert of the Company (%) 44 .81

Where:

Guarantee amount provided to shareholders, actual controllers and related parties (C)

Guarantee debt amount provided for the guaranteed directly or indirectly whose debt-to-assets ratio is more than 70% (D) 101,922 .75

Amount where the total amount guaranteed exceeds 50% of the net assets (E)

Total guarantee amount of three items mentioned above (C+D+E) 101,922 .75

Explanation of possible several and joint liability for undue guarantee

Description of guarantee

(ii) Cash assert management entrusted to others1. Entrusted investment(1) Overall Situation of Entrusted Investment


Type Sources of financing Amount Undue Balance Overdue amount uncovered

Bank financial products Owned fund 56,910 4,900 0

Other Situations

√Applicable □Not applicable

In 2019, the Company and its subsidiaries used their own funds to purchase and redeem the principal guaranteed floating income

and low-risk bank financial products for many times in a short period of time according to the use of funds . The accumulated amount

of purchase was CNY 569 .1 million yuan, and the rate of return varied according to the market interest rate . In 2019, the accumulated

financial income received was CNY 1 .4198 million yuan, and the single amount of purchased financial product did not exceed CNY 150

million yuan, and the amount invested in a single day did not exceed CNY 205 .5 million yuan .

KEDA Section VI Common Share Changes and Shareholders’ Information


I. Common share capital change(i) Table of common shareholding changes1. Table of common shareholding changesDuring the reporting period, there was no change either in the total number of common shares or the share capital

structure .

II. Shareholders and actual controllers(i) Total number of shareholders:

Total number of common shareholders at the end of the reporting period (household) 41,592

Total number of common shareholders by the month before the annual report disclosing day (household) 40,395

(ii) Table of top ten shareholdings and circulating shareholdings (or unrestricted sales shareholdings) by the end of the reporting period

Unit: share

Top ten shareholders’ shareholdings

Shareholder’s Name

(Full name)

Increase/

Decrease

in reporting

period

Shareholding

ratio at the

end

Proportion

(%)

Number of

shares held

with limited

sale condition

Pledged or frozen

condition Shareholders

propertyShares

StatusQuantity

Bian Cheng 0 173,999,598 11 .03 0 Pledge 116,580,000Domestic

natural person

Macround Shareholding

Co ., Ltd .0 143,719,652 9 .11 138,119,502 Pledge 143,719,502

Domestic non-

state-owned

legal person

Lu Qin 0 125,983,334 7 .99 0 None 0Domestic

natural person

Liang Tongcan 51,324,483 110,397,952 7 .00 0 Pledge 110,000,000Domestic

natural person

KEDA Clean Energy Co .,

Ltd . Repurchase Special

Securities Account

17,904,245 43,113,440 2 .73 0 None 0 Others

Shi Tingbo 2,007,500 43,019,724 2 .73 0 None 0Domestic

natural person

Wuhu Jishi Equity Investment

Fund (Limited Partnership)0 27,621,878 1 .75 27,621,878 None 0 Others

Foshan Yesheng Investment

Co ., Ltd .24,076,725 24,076,725 1 .53 0 None 0

Domestic non-

state-owned

legal person

Shi Liyun 512,000 21,190,445 1 .34 0 None 0Domestic

natural person

Guangzhou Xuanyuan

Investment Management Co .,

Ltd .-Xuanyuan Yuanfeng No .

1 Private Equity Investment

Fund

15,000,000 15,000,000 0 .95 0 None 0 Others

KEDASection VI Common Share Changes and Shareholders’ Information


Shareholding of top 10 shareholders without limited sale condition

Shareholder’s Name

Number of circulating

shareholdings without limited sale condition

Type and quantity of shares

Type Quantity

Bian Cheng 173,999,598 CNY common shares 173,999,598

Lu Qin 125,983,334 CNY common shares 125,983,334

Liang Tongcan 110,397,952 CNY common shares 110,397,952

KEDA Clean Energy Co ., Ltd . Repurchase Special Securities Account

43,113,440 CNY common shares 43,113,440

Shi Tingbo 43,019,724 CNY common shares 43,019,724

Foshan Yesheng Investment Co ., Ltd . 24,076,725 CNY common shares 24,076,725

Shi Liyun 21,190,445 CNY common shares 21,190,445

Guangzhou Xuanyuan Investment Management Co ., Ltd .-Xuanyuan Yuanfeng No . 1 Private Equity Investment Fund

15,000,000 CNY common shares 15,000,000

Hong Kong Securities Clearing Company Limited 14,911,326 CNY common shares 14,911,326

Li Xiaochun 14,806,371 CNY common shares 14,806,371

Note on related relationships or concerted action of shareholders mentioned above

Among the above shareholders, Bian Cheng, Lu Qin, Liang Tongcan and Foshan Yesheng Investment Co ., Ltd . do not have any related relationship or belong to persons acting in concert . The special securities account for repurchase of KEDA Clean Energy Co ., Ltd . is the account for the implementation of stock repurchase of KEDA Clean Energy .It is unknown whether other shareholders are related or belong to persons acting in concert .

Note on preferred shareholders with restored voting rights and the shareholding number

None

Number of top ten shareholdings with limited sales conditions and the restriction for sale√Applicable □Not applicable

Unit: share

No.Name of shareholder with limited sales conditions

Number of shares held with

limited sale condition

Transaction of shares held with limited sale condition on the

marketRestriction

Tradable time

Number of shares

available for trading

1Macround Shareholding Co ., Ltd .

138,119,502November 30, 2020

0

No transfer within 36 months from the day of share equity registration

2Wuhu Jishi Equity Investment Fund (Limited Partnership)

27,621,878November 30, 2020

0

No transfer within 36 months from the day of share equity registration

Note on related relationships or concerted action of shareholders mentioned above

There is no related relationship between shareholders above, or concerted action stipulated by the Methods for Takeover of Listed Companies .

KEDA Section VI Common Share Changes and Shareholders’ Information


III. Shareholders and actual controllers(i) Controlling shareholders1. Special note on the condition of no controlling shareholdersAs of December 31, 2019, the shareholders holding more than 5% of the Company’s shares are natural persons

Bian Cheng, Lu Qin and Liang Tongcan and legal person Macround Shareholding Co ., Ltd ., of which Bian Cheng holds 11 .03% of the Company’s shares, being the largest shareholder; Macround Shareholding Co ., Ltd . holds 9 .11% of the Company’s shares, Lu Qin holds 7 .99% of the Company’s shares, and Liang Tongcan holds 7% of the Company’s shares . The shares held by any shareholder of the Company are not enough to have a decisive influence on the resolution of the shareholders’ conference of the Company, while the Company does not have a shareholder controlling the majority of the board of directors and any other person actually controlling the Company’s behavior, and the shareholders holding more than 5% of the Company do not have a unanimous action agreement or arrangement .Therefore, there is no controlling shareholder or actual controller in the Company .

(ii) Actual controller1. Special note on the condition of no actual controllerAs of December 31, 2019, the shareholders holding more than 5% of the Company’s shares are natural persons

Bian Cheng, Lu Qin and Liang Tongcan and legal person Macround Shareholding Co ., Ltd ., of which Bian Cheng holds 11 .03% of the Company’s shares, being the largest shareholder; Macround Shareholding Co ., Ltd . holds 9 .11% of the Company’s shares, Lu Qin holds 7 .99% of the Company’s shares, and Liang Tongcan holds 7% of the Company’s shares . The shares held by any shareholder of the Company are not enough to have a decisive influence on the resolution of the shareholders’ conference of the Company, while the Company does not have a shareholder controlling the majority of the board of directors and any other person actually controlling the Company’s behavior, and the shareholders holding more than 5% of the Company do not have a unanimous action agreement or arrangement .Therefore, there is no controlling shareholder or actual controller in the Company .

KEDASection VII Directors, Supervisors, Senior Managers and Employees


I. Changes in shareholding and remuneration(i) Shareholding changes in the current and outgoing directors, supervisors and senior managers in the

reporting period and remuneration√Applicable □Not applicable

Unit: share

Name Post (Note) Gender AgePost Start

Date

Post End

Data

Shares

at the

beginning

of the year

Shares at

the end of

the year

Share

increase

or

decrease

in the

year

Reasons

for

increase/

decrease

Total

remuneration

before tax

received from

the Company in

reporting period

(Ten thousand

Yuan)

Whether the

remuneration

is obtained

from the

related party

Bian Cheng Chairman Male 56 2018/09/03 2021/09/02 173,999,598 173,999,598 0 150 No

Zhang Jian Vice Chairman Male 47 2018/09/03 2021/09/02 0 0 0 18 Yes

Wu MuhaiDirector,

PresidentMale 47 2018/09/03 2020/04/23 1,920,000 1,920,000 0 100 No

Jimmy Wu Director Male 58 2018/09/03 2020/04/23 1,348,812 1,268,812 80,000

Secondary

market

reduction

72 No

Jason

Zhong

Director,

Vice PresidentMale 56 2018/09/03 2021/09/02 40,000 40,000 0 100 No

Shen

YanchangDirector Male 47 2018/09/03 2021/09/02 0 0 0 0 Yes

Hao JimingIndependent

DirectorMale 74 2018/09/03 2021/09/02 0 0 0 12 No

Luo JianhuaIndependent

DirectorMale 56 2018/09/03 2021/09/02 0 0 0 12 No

Chen

Xiongyi

Independent

DirectorMale 67 2018/09/03 2021/09/02 0 0 0 12 No

Zeng Fei Vice President Male 44 2018/09/03 2021/09/02 277,600 277,600 0 80 No

Zhou Peng Vice President Male 57 2018/09/03 2021/09/02 2,733,122 2,733,122 0 80 No

Frank LiHead of

financeMale 37 2018/09/03 2021/09/02 0 0 0 65 No

Ekin Li

Secretary of

the Board of

Directors

Male 34 2018/09/03 2021/09/02 0 0 0 65 No

Jiao

ShenghongSupervisor Male 53 2018/09/03 2021/09/02 10,900 10,900 0 70 No

Xu Jianqing Supervisor Male 55 2018/09/03 2021/09/02 1,280,000 1,280,000 0 50 No

Zhang

ShuliangSupervisor Male 59 2018/09/03 2021/09/02 561,472 561,472 0 46 .3 No

Total / / / / / 182,171,504 182,091,504 80,000 / 932.30 /

KEDA Section VII Directors, Supervisors, Senior Managers and Employees


Name Main work experience

Bian Cheng

He joined the Company in 1998 and served as director and general manager of the Company until August 2012 . Since then he has served as chairman till now . He is also director of KEDA (Shenyang) Clean Energy, director of Lanke Lithium, and director of Foshan Zhongtao Alliance Technology Co ., Ltd . He is vice president of China Building Materials Federation, president of Guangdong Building Materials Industry Association, president of Foshan Enterprise Confederation, president of Foshan Entrepreneur Directors Association, and president of Maanshan Guangdong Chamber of Commerce and Industry .

Zhang Jian

Since April 2002, he has successively served as director of Strategic Investment, director of Securities Investment Department and director of Listed Company Department of Macround Group . He is currently vice-chairman of KEDA Clean Energy, director and senior vice president of Macround Group, and president of Ceramics and Equipment Department of Macround Group, and vice president of Macround Holdings Co ., Ltd . He is director of Macround Cultural Travel Development Co ., Ltd ., executive director of New Silk Road Cultural Travel Limited, executive director of Dongyue Group Limited, director of Hunan Hualian Ceramics Co ., Ltd ., director of Hengtian Jinshi Investment Management Co ., Ltd ., director of New Energy Capital Investment Co ., Ltd ., director of Beijing Macround Industry Investment Co ., Ltd ., director of Macround Development Investment Co ., Ltd ., execute director and general manager of Macround Investment Limited, director of Dongyue Fluorosilicone Technology Group Co ., Ltd ., director of Macround International Development Co ., Ltd ., executive director and general manager of Shenzhen Macround Industry and Trade Development Co ., Ltd ., director of Macround South Holding Co ., Ltd ., and director of Changshi Investment Co ., Ltd .

Wu Muhai

He joined the Company in 1995 . He served as general manager of Ceramic Machinery from October 2007 to May 2010 . He served as deputy general manager of the Company from August 2009 to May 2010 . He served as director of the Company from February 2010 to May 2010 . He served as director and deputy general manager of the Company from March 2011 to August 2012 . And he has been director and president of the Company from August 2012 to April 2020 . He is also executive director of Henglitai Company, director of Anhui Xincheng Investment, director of Guangdong Xincheng Financial, director of Anhui Xincheng Financial, director of Keda Holding, director of Brightstar, director of Keda Kenya, director of Keda Tanzania, director of Twyford Senegal, executive director of Ceramic Technology Company, director of Keda Zambia and chairman of Shunde KEDA Clean Energy .

Jimmy Wu

He joined the Company in 2004, once served as president of Keda Research and Development Institute, director and deputy general manager of the Company from August 2006 to May 2010, vice president of the Company from July 2013 to September 2018, director of the Company from March 2011 to April 2020 . He has been chief scientist and director of national certified enterprise technology center from September 2018 to now .

Jason Zhong

He used to be general manager of Export Department of Guangdong Xinzhongyuan Ceramics Co ., Ltd ., general manager of Eagle Brand Holding Co ., Ltd ., general manager of Operating Development of Shanghai Asia Ceramics Co ., Ltd . . He joined the Company on October 1, 2015, and is now director and vice president of the Company . He is also chairman of Xincheng International, director of KEDA Hong Kong, chairman of Guangdong Xincheng Financial, director of Keda Holding, director of Brightstar, director of Keda Kenya, director of Keda Tanzania, director of Keda Zambia, director of Twyford Senegal, executive director of KEDA Trade, director of Keyu International (Hong Kong) Co ., Ltd ., director of Keda Europe, and director of Welko .

Shen Yanchang

He used to be served in Heilongjiang National Defense Economic and Technological Development Center, Nigeria General Steel Co ., Ltd ., Guangzhou Aokeye Economic and Trade Co ., Ltd . He is currently director of the Company . He served as the legal representative and general manager of Guangzhou Sunda International Trading Co ., Ltd . from February 2004 to October 2019 . He is currently director of Sunda Group Co ., Ltd ., general manager of Africa Ceramics Business Management Center of the Company, director of Keda Kenya, director of Keda Tanzania, director of Twyford Senegal, director of Keda Zambia, and director of Keda Ghana .

KEDASection VII Directors, Supervisors, Senior Managers and Employees


Name Main work experience

Hao Jiming

He used to be a lecturer, an associate professor and a professor of Tsinghua University . From September 2011 to August 2017, he was the independent director of Zhejiang Tianlan Environmental Protection Technology Co ., Ltd . From September 2015 to now he has been independent director of the Company .

Luo Jianhua

From 2008 to 2016, he served as secretary-general of the Environmental Chamber of Commerce of the All-China Federation of Industry and Commerce, vice-president and chief policy expert of the China Environmental Chamber of Commerce Federation of Industry and Commerce from July 2016 to now, and independent director of the Company from September 2015 to now .

Chen Xiongyi

He used to be general manager of the Southern Headquarters of Lixin Accounting Firm (Special General Partnership), independent director of Guangdong Guangxin Holding Group Co ., Ltd . and independent director of WINONE Elevator Co ., Ltd . From April 2015 to now, he has been independent director of Guangdong Huakai Science and Technology Co ., Ltd . and from September 2015 to now, he has been independent director of the Company .

Zeng Fei

He joined the Company in 2002 and served as secretary of the board of directors of the Company . From August 2009 to September 2018, he was the head of finance of the Company . He has been vice president of the Company since May 2015 . He is now vice chairman of Guangdong Xincheng Financial, director of Xingchang International, director of Keda Turkey, execute director of Changsha Aer, execute director of Anhui Keda New Energy Automobile, supervisor of KEDA Dongda, chairman of Suremaker Company, director of Anhui KEDA Clean Energy, director of Guangdong KEDA Smart Energy, supervisor of KEDA (Shenyang) Clean Energy, supervisor of Henglitai Company, supervisor of KEDA Hydraulics, supervisor of Zhuolitai Company, supervisor of Ceramic Technology, supervisor of KEDA Trade and supervisor of Anhui Keqing .

Zhou Peng

He joined the Company in 2002 and has served as assistant to the Company’s chairman, general manager of the deep processing division, director and secretary of the board of directors . He is currently the vice president of the Company, concurrently serves as chairman and general manager of Anhui Xincheng Investment, chairman of KEDA (Anhui) Industrial, and chairman of Anhui Xincheng Financial, director of Anhui KEDA Clean Energy, director of Jiangsu Kehang, vice Chairman of Shunde KEDA Clean Energy, and director of Ma Steel (Shanghai) Financial Leasing Co ., Ltd .

Frank Li

He was a senior consultant of PricewaterhouseCoopers, senior manager of Internal Audit Department of Schneider Electric, director of internal audit of netqin . He joined the Company in 2016 as general manager of Xincheng International (Hong Kong) . Now he is the financial director and chief financial officer of the Company, and concurrently serves as director of KEDA Hong Kong, director of Keda Turkey, director of Keda Ghana, director of Shunde KEDA Clean Energy, director of Welko, and supervisor of Anhui Xincheng investment .

Ekin Li

He used to be a senior consultant and project manager of Alliance PKU Management Consultants Ltd, secretary of the board of directors and head of investment of Yashili International Holdings Co ., Ltd . He joined the Company in 2017, and is currently assistant to the chairman and secretary of the board of directors of the Company, as well as manager of the Investment and Development Department of the Company and supervisor of Anhui KEDA Clean Energy .

Jiao Shenghong

He used to be deputy general manager of Ningxia Modern Agriculture Investment Group . From 2016 to 2017, he served as deputy director of the Audit Department of Macround Group . He is currently chairman of the Company’s Supervisory Committee, director of Risk Control of the Company, and director of Jiangsu Kehang .

Xu JianqingHe joined the Company in 1998 as vice general manager, director of the Company . Now he is supervisor of the Company . He has been vice chairman of KEDA Hydraulics from May 2018 to now .

Zhang ShuliangHe joined the Company in April 2000 and served as general manager of the Company’s Machining Department . He is currently employee supervisor of the Company and deputy general manager of the Production Supply Center .

KEDA Section VII Directors, Supervisors, Senior Managers and Employees


II. Employees of the Parent Company and Its Main Subsidiaries(I) Employees

Current employees in the parent company 2,047

Current employees in the main subsidiaries 2,875

Total number of current employees 4,922

Number of retired employees whose costs shall be borne by the parent company and the main subsidiary companies

Specialty composition

Type of specialty composition Number of specialty composition

Production staff 2,016

Sale staff 247

Technical staff 1,481

Financial staff 103

Administrative staff 1,075

Total 4,922

Educational background

Type of educational background Quantity (persons)

Postgraduate or above 171

Bachelor degree 1,241

Junior College 1,039

Secondary vocational school education and below 2,471

Total 4,922

KEDASection VIII Financial Report


I. Audit Report

Audit ReportZXSZ [2020] No.00989

To all shareholders of KEDA Clean Energy Co., Ltd.:

I. Audit OpinionsWe have audited the financial statements of KEDA Clean Energy Co ., Ltd . (hereinafter referred to as KEDA Clean

Energy), including the consolidated and parent company’s asset balance sheet of December 31, 2019, the consolidated and parent company’s income statement, the consolidated and parent company’s cash flow statement, the consolidated and parent company’s statement of change in shareholder’s equity and annotations to financial statements of Year 2019 .

We hold the opinion that, the attached financial statements are prepared in accordance with corporate accounting codes in key aspects, fairly reflecting the consolidation of KEDA Clean Energy and the financial conditions of the parent company on December 31, 2019, as well as the consolidated and parent company’s business achievements and cash flow of the Year 2019 .

II. Basis of Forming Audit OpinionsWe have executed audit in accordance with rules and regulations of audit code of CPA of China . The “CPA’s

responsibility for the audit of the financial statements” herein further elaborates our responsibilities under these guidelines . In accordance with the occupational morality code of CPA of China, we are independent of KEDA Clean Energy and perform other duties in terms of occupational moralities . We believe that, the audit evidences acquired are sufficient and proper, and lay a foundation for issuing audit opinions .

III. Key Audit ItemsKey audit items are considered to be the most important items for the audit of current financial statements according

to our professional judgment . The response to these items is based on the audit of the financial statements as a whole and the formation of audit opinions . We do not comment on these items separately . We have confirmed the following key audit items that need to be communicated in the audit report .

(I) Revenue recognition of building material machinery and equipment1. Description of itemsIn 2019, KEDA Clean Energy attained the revenue of building material machinery and equipment of CNY 2,904 .5247

million yuan, accounting for 45 .22 % of the total operating income, which is the main revenue composition of KEDA Clean Energy . In 2019, it decreased by 18 .06% compared with that of last year . The relevant information is disclosed in financial statements . The revenue recognition policy is completed according to the contract, and the Company confirmed the revenue and issued an invoice . Due to the great impact of building material equipment revenue recognition on financial statements, the Management may face risk of key errors in revenue recognition and listing . Therefore, we confirm the revenue recognition of building material machinery and equipment as a key audit item .

2. Audit response:① Understand the key internal controls related to revenue recognition, evaluate the design of these controls,

determine whether they are implemented, and test the operation effectiveness of relevant internal controls;② Check the relevant clauses of the main customers’ contracts and evaluate whether the revenue recognition

method is appropriate;③ Perform analytical procedures on revenue, including: analyze monthly revenue by customer and product, gross

profit margin analysis, extract important business contracts for revenue and gross profit margin analysis, compare the current revenue and gross profit margin with the previous period to identify whether there is abnormal fluctuation, and find out the reason;

④ Sample the major items of this year to check the entry records, sales contracts, delivery documents and customer sign in records; for export business, obtain the customs declaration, packing list, bill of lading and foreign exchange collection settlement data and check with the tax system tax return exemption declaration form to confirm whether the revenue is realized;

⑤ In combination with the confirmation of accounts receivable, select the customers with large closing balance and large amount to confirm the sales volume of this year;

KEDA Section VIII Financial Report


⑥ Perform cut off tests on operating income to confirm whether the income is recorded in the correct accounting period;

⑦ Check whether the income-related information has been properly presented in the financial statements .

(II) Impairment of accounts receivable1. Description of itemsAs of December 31, 2019, the balance of KEDA Clean Energy’s accounts receivable was CNY 1,890 .7614 million

yuan, the balance of financial lease receivables was CNY 1,130 .3917 million yuan, the total amount of receivables was CNY 3,021 .1530 million yuan, and the provision for bad debts was CNY 342 .7336 million yuan . Relevant information is disclosed in the financial statements .Due to the inherent complexity of the expected credit loss model for the evaluation of receivables, and the model uses a number of indicators such as aging migration rate, historical loss rate, etc ., which involve the judgment of the Management, and its amount has a significant impact on the financial statements .Therefore, we confirm the impairment of accounts receivable as a key audit item .

2. Audit response:① Understand the Management’s key financial reporting internal controls related to credit control, account recovery

and assessment of receivables impairment provision, and evaluate the design and operation effectiveness of these internal controls;

② Understand the Company’s credit policy, industry characteristics and credit risk characteristics, obtain the data and relevant materials on which the Management evaluates whether the receivables are impaired and confirms the expected loss rate, check the aging migration of the Company’s receivables, the customer’s reputation and operation, the judgment of the expected credit loss, etc ., and evaluate whether the relevant accounting policies formulated by the Management meet the requirements of the accounting standards for business enterprises;

③ Understand the measurement model of the estimated credit loss of the Company’s receivables, evaluate the rationality of the major assumptions and key parameters in the model and the appropriateness of the credit risk portfolio division method;

④ Analyze and calculate the ratio between the amount of expected credit loss and the balance of receivables on the balance sheet date of the Company, compare the amount of bad debt provision in the early period and the actual amount, and analyze whether the estimated credit loss of accounts receivable is appropriate;

⑤ Select a single account receivable with significant amount, independently test its recoverability, and check the relevant supporting evidence, including subsequent collection, customer’s credit history, operating conditions and repayment ability .

⑥ Carry out the confirmation procedures accounts receivable and check the subsequent collection, and evaluate the reasonableness of bad debt provision of accounts receivable .

IV. Other InformationThe Management of KEDA Clean Energy (hereinafter referred to as the Management) is responsible for other

information .Other information includes information covered in the annual report, but does not include the financial statements and our audit reports .

Our audit opinions on the financial statements do not cover other information, nor do we publish any form of authentication conclusions on other information .

In combination with our audit of the financial statements, it is our responsibility to read other information and, in the process, consider whether other information is materially inconsistent with the financial statements or what we learned in the audit process or appears to be key errors .

Based on the work we have carried out, we should report the fact if we determine that there is a key error of other information .We have nothing to report in this regard .

V. The Management and Governance’s Responsibilities for the Financial StatementsThe management is responsible for preparing the financial statements in accordance with the corporate accounting

code, and making it reflect fairly to enable them to achieve fair reflection and for designing, executing and maintaining necessary internal control to make the financial statements free of key errors by embezzlement or errors .

In preparing the financial statements, the Management shall be responsible for assessing the going concern ability of KEDA Clean Energy and using the assumption of going concern, unless the Management plans to liquidate KEDA Clean Energy, terminate operations or has no other realistic alternative .

The Governance is responsible for overseeing KEDA Clean Energy’s financial reporting process .



VI. CPA’s Responsibility for the Audit of the Financial StatementsOur objective is to reasonably ensure that there are no key errors by embezzlement or errors in the financial

statement as a whole, and issue audit reports containing audit opinions . Reasonably assurance is a high level guarantee, but it does not guarantee that an audit carried out in accordance with the audit code can be found in the presence of a key error . The key errors may be caused by embezzlement or errors; and it is often assumed that the errors are key if it is reasonably expected that they may, individually or collectively, affect the economic decision made by the users of the financial statements in accordance with the financial statements .

In carrying out audit work in accordance with the audit code, we use professional judgment and maintain professional suspicion .At the same time, we also carry out the following tasks:

(1) Identify and assess the risk of key errors due to embezzlement or errors, design and implement audit procedures to address these risks and obtain adequate and appropriate audit evidence as the basis for the publication of audit opinions .Since the embezzlement may involve collusion, forgery, intentional omission, false statement or be above internal control, the risk of failure to find a key error due to embezzlement is higher than that due to error .

(2) Understand the internal control related to audit to design proper audit procedures .(3) Evaluate the properness of accounting policy selected by the Management and the rationality of accounting

estimate making as well as the related disclosure .(4) Draw a conclusion on the properness of the Management’s application of going concern assumption . At

the same time, according to the audit evidence obtained, it can be concluded whether there is significant uncertainty in matters or circumstances that may cause significant doubts about the going concern ability of KEDA Clean Energy . If we conclude that there are material uncertainties, the audit codes require us to draw the user’s attention to the relevant disclosures in financial statements in the audit report; if the disclosure is not adequate, we shall issue non-unqualified opinions . Our conclusions are based on the information available at the date of the audit report .However, future items or situations may result in the inability of KEDA Clean Energy for going concern .

(5) Evaluate the general listing, structure and contents of the financial statements (including disclosures) and evaluate whether financial statements fairly reflect relevant trades and items .

(6) Obtain sufficient and appropriate audit evidence on the financial information of entities or business activities in KEDA Clean Energy to issue audit opinions on financial statements . We are responsible for guiding, supervising and implementing the group audit and taking full responsibility for the audit opinions .

We communicate with the Governance on items such as audit coverage, timing and key audit finding, including communicating the noteworthy internal control weaknesses identified in our audit .

We also provide the Governance with a statement that we have complied with the professional ethics requirements related to our independence, and communicate with the Governance all relationships and other items that may reasonably be considered to affect our independence, as well as relevant preventive measures (if applicable) .

As the items communicated with the Governance, we determine which items are most important for the audit of the current financial statements, and therefore these items will constitute the key audit items . We describe these items in the audit report, unless public disclosure of these items is prohibited by laws and regulations, or in rare cases, if it is reasonably expected that the negative consequences of communicating a matter in the audit report outweigh the benefits in terms of the public interest, we determine that the item should not be communicated in the audit report .

Zhongxi CPA Firm (Special Ordinary Partnership) Chinese CPA:

Beijing, China Chinese CPA:

April 29, 2020



II. Financial StatementsConsolidated Balance Sheet

December 31, 2019Prepared by: KEDA Clean Energy Co., Ltd. Currency: CNY Unit: Yuan

Subject December 31, 2019 December 31, 2018Current assets:

Monetary fund 1,304,599,167 .48 1,475,658,889 .64Settlement fundLending fundTrading financial assets 3,061,893 .44Financial asset at fair value and changes through profit or lossDerivative financial assetsNotes receivable 8,086,415 .26 202,787,500 .67Accounts receivable 1,643,478,233 .84 1,646,831,871 .46Accounts receivable financing 205,201,738 .56Advance payment 368,106,447 .33 372,529,271 .03Premium receivableReinsurance accounts receivablesReinsurance contract provision receivableOther receivables 124,704,796 .66 111,058,573 .63Wherein: Interest receivable Dividends ReceivableBuy buyback financial assetsInventory 2,390,408,709 .44 1,981,107,145 .28Held-to-sale assetsNon-current assets due within one year 680,058,193 .79 855,604,750 .88Other current assets 173,949,568 .89 119,439,915 .28Current assets in total 6,901,655,164.69 6,765,017,917.87

Non-current assets:Issue loan and advanced paymentDebt investmentFinancial assets available for sale 19,260,000 .00Other debt investmentHeld-to-maturity investmentLong-term accounts receivable 295,924,460 .86 363,541,041 .30Long-term equity investment 1,159,987,650 .42 1,134,060,945 .99Other equity instrument investment 60,251,387 .84Other non-current financial assetsInvestment propertyFixed assets 2,634,805,163 .52 2,134,242,354 .79Projects under construction 215,216,098 .46 183,459,389 .57Production biological assetsOil and gas assetsRight to use assetsIntangible assets 447,440,586 .09 456,670,003 .98Development expensesGoodwill 971,796,726 .59 954,675,275 .74Long-term deferred expenses 6,228,746 .34 6,937,228 .80Deferred income tax assets 160,036,446 .88 147,190,982 .84Other non-current assets 27,927,216 .12 23,066,256 .05Non-current assets in total 5,979,614,483.12 5,423,103,479.06

Assets in total 12,881,269,647.81 12,188,121,396.93

Legal representative: Yang Xuexian Principal in charge of accounting: Li Qing Principal of accounting organization: Li Qing



Consolidated Balance Sheet (Continued)December 31, 2019

Prepared by: KEDA Clean Energy Co., Ltd. Currency: CNY Unit: Yuan

Subject December 31, 2019 December 31, 2018

Current liabilities:

Short-term loan 2,181,961,399 .17 2,166,408,490 .23

Loan from the Central Bank

Borrowing fund

Trading financial liabilities

Financial liabilities at fair value and changes through profit or loss

Derivative financial liabilities

Notes payable 529,830,316 .10 567,868,357 .96

Accounts payable 1,720,730,742 .72 1,459,296,376 .35

Accounts pre-received 698,350,256 .25 540,884,968 .24

Sell buyback financial assets

Deposit-taking and inter-bank deposit

Amount of selling and buying securities as agent

Amount of selling securities as agent

Payroll payable 128,887,250 .07 103,502,298 .77

Tax payable 44,113,096 .31 62,952,932 .99

Other accounts payable 121,811,309 .75 128,364,738 .77

Wherein: Interest payable

Dividends payable

Handling charges and commission payable

Reinsurance accounts payable

Held-for-sale liabilities

Non-current liabilities due in one year 1,072,273,888 .69 669,634,288 .31

Other non-current liabilities

Current liabilities in total 6,497,958,259.06 5,698,912,451.62

Non-current liabilities:

Insurance contract provision

Long-term loan 983,110,307 .06 1,280,006,066 .53

Bonds payable

Wherein: Priority share

Perpetual liabilities

Lease liability

Long-term accounts payable 100,000,000 .00

Long-term payroll payable

Estimated liabilities

Deferred income 20,900,000 .00 25,400,000 .00

Deferred income tax liabilities 18,602,538 .78 13,273,692 .28

Other non-current liabilities 102,830,072 .60 79,224,672 .49

Non-current liabilities in total 1,125,442,918.44 1,497,904,431.30

Total liabilities 7,623,401,177.50 7,196,816,882.92




Consolidated Balance Sheet (Continued)December 31, 2019



Owner’s (or shareholder’s) equity

Paid-up capital (or share capital) 1,577,205,702 .00 1,577,205,702 .00

Other equity instruments



Capital public reserve 1,140,749,339 .66 1,138,390,049 .87

Minus: treasury share 200,003,570 .71 118,377,637 .16

Other comprehensive earnings 8,943,394 .52 10,072,380 .25

Special provision

Surplus reserve 313,918,066 .56 306,963,861 .18

General risk provision

Undistributed profit 1,809,923,928 .25 1,744,160,483 .46

Total owner’s equity (or shareholder’s equity) attributed to parent company

4,650,736,860.28 4,658,414,839.60

Minority shareholders’ equity 607,131,610 .03 332,889,674 .41

Owner’s equity (or shareholder’s equity) in total 5,257,868,470.31 4,991,304,514.01

Liabilities and owner’s equity (or shareholder’s equity) 12,881,269,647.81 12,188,121,396.93




Balance Sheet of Parent CompanyDecember 31, 2019



Current assets:

Monetary fund 453,461,239 .95 480,521,481 .53

Trading financial assets

Financial asset at fair value and changes through profit or loss

Derivative financial assets

Notes receivable 7,585,523 .25 11,519,108 .12

Accounts receivable 778,121,041 .77 924,919,471 .53

Accounts receivable financing 39,655,357 .53

Advance payment 29,830,815 .54 67,680,280 .83

Other receivables 659,235,680 .43 531,431,765 .40

Wherein: Interest receivable

Dividends Receivable

Inventory 610,805,414 .21 606,023,173 .82

Held-to-sale assets

Non-current assets due within one year

Other current assets 2,165,606 .68 2,900,618 .32

Current assets in total 2,580,860,679.36 2,624,995,899.55

Non-current assets:

Debt investment

Financial assets available for sale 1,260,000 .00

Other debt investment

Held-to-maturity investment

Long-term accounts receivable

Long-term equity investment 5,135,872,048 .25 4,814,083,268 .16

Other equity instrument investment 1,980,000 .00

Other non-current financial assets

Investment property

Fixed assets 271,248,755 .17 291,759,208 .94

Projects under construction 11,661,959 .52 16,307,354 .32

Production biological assets

Oil and gas assets

Right to use assets

Intangible assets 37,492,832 .62 38,674,683 .49

Development expenses

Goodwill

Long-term deferred expenses

Deferred income tax assets 139,234,496 .05 133,407,003 .25

Other non-current assets

Non-current assets in total 5,597,490,091.61 5,295,491,518.16

Assets in total 8,178,350,770.97 7,920,487,417.71






Short-term loan 1,080,705,506 .07 1,212,974,743 .81




Notes payable 166,603,344 .13 217,380,000 .00

Accounts payable 457,359,160 .24 525,125,347 .55


Payroll payable 43,423,035 .60 36,358,729 .06

Tax payable 1,172,492 .04 1,681,659 .24



Dividends payable


Non-current liabilities due in one year 455,070,722 .38 247,666,666 .66




Long-term loan 552,917,188 .21 853,293,918 .30

Bonds payable



Lease liability

Long-term accounts payable



Deferred income

Deferred income tax liabilities


Non-current liabilities in total 595,699,888.21 894,617,138.19









Other comprehensive earnings

Special provision

Surplus reserve 306,911,023 .53 299,956,818 .15

Undistributed profit 1,138,377,654 .35 1,071,030,857 .31

Owner’s equity (or shareholder’s equity) in total 4,416,853,151.37 4,424,178,082.50

Liabilities and owner’s equity (or shareholder’s equity) 8,178,350,770.97 7,920,487,417.71

Balance Sheet of Parent Company (Continued)December 31, 2019





Consolidated Income StatementJanuary-December 2019


Subject Year 2019 Year 2018

I. Total operating income 6,422,423,250.49 6,070,838,164.12

Wherein: Operating income 6,422,423,250 .49 6,070,838,164 .12

Interest income

Premium earned

Handling charge and commission income

II. Total operating expense 6,206,340,841.48 6,040,842,792.09

Wherein: Operating expense 4,932,460,492 .58 4,822,034,979 .02

Interest expense

Handling charge and commission expense

Surrender value

Net amount of indemnity expense

Net amount of withdrawing insurance contract provision

Policy dividend expense

Reinsurance cost

Business taxes and extra 48,286,437 .15 48,087,741 .59

Sales expenses 394,594,277 .45 351,335,347 .66

Administration expenses 476,741,573 .95 495,767,227 .66

R&D expenses 166,326,380 .76 177,830,002 .46

Financial expenses 187,931,679 .59 145,787,493 .70

Wherein: Interest expense 181,563,188 .25 157,750,493 .95

Interest income 15,962,283 .83 17,783,465 .88

Add: Other earnings 82,335,240 .81 159,197,942 .83

Investment earnings (losses marked with “-”) 32,744,815 .12 110,740,864 .55

Wherein: Earnings from investment in joint ventures and

cooperative32,504,303 .58 110,406,440 .86

Derecognition of income for financial assets measured

at amortized cost

Earning from exchange and remittance (losses marked with “-”)

Net exposure hedging income (losses marked with “-”)

Earning from changes in fair value (losses marked with “-”) -1,548,405 .04 299,217 .75

Losses from credit impairment (losses marked with “-”) -37,644,184 .21

Losses from assets impairment (losses marked with “-”) -44,098,668 .61 -864,449,980 .43

Earning from disposal of assets (losses marked with “-”) -1,370,503 .93 844,304 .99

III. Operating profits (losses marked with “-”) 246,500,703.15 -563,372,278.28

Plus: non-operating income 11,984,875 .05 16,434,520 .62

Minus: Non-operating expenses 8,864,930 .15 15,390,964 .17

IV. Total profit (total losses marked with “-”) 249,620,648.05 -562,328,721.83

Minus: income tax costs 20,224,085 .5 -47,970,598 .65





V. Net profit (net losses marked with “-”) 229,396,562.55 -514,358,123.18

1 . Net profit of continuing operation (net losses marked with “-”) 241,296,620 .88 71,428,650 .86

2 . Net profit of discontinued operation (net losses marked with “-”) -11,900,058 .33 -585,786,774 .04

1 . Net profits attributed to parent company’s shareholder (net losses

marked with “-”)119,336,629 .81 -588,578,574 .68

2 . Minority shareholders’ profits and losses (net losses marked

with “-”)110,059,932 .74 74,220,451 .50

VI. After-tax net amount of other comprehensive earnings -1,846,992.54 4,944,852.39

(I) After-tax net amount of other comprehensive income attributed to

parent company’s owner-1,128,985 .73 2,709,627 .93

1 . Other comprehensive earnings not reclassified as profits or losses

(1) Changes from re-measuring or re-defining benefit plan

(2) Other Comprehensive earnings not transferred to profits and

losses under equity law

(3) Changes in fair value of other equity instrument investments

(4) Changes in fair value of the Company’s own credit risks

2 . Other comprehensive earnings reclassified as profits and losses -1,128,985 .73 2,709,627 .93

(1) Other Comprehensive earnings transferred to profits and

losses under equity law

(2) Changes in fair value of other debt investments

(3) Profits or losses from change of fair value of available-for-sale

financial assets

(4) Amount of financial assets reclassified into other

comprehensive earnings

(5) Profits and losses from held-to-maturity reclassified

available-for-sale financial assets

(6) Provisions for credit impairment of other debt investments

(7) Cash flow hedging reserve (effective part of profits and

losses from cash flow hedging)

(8) Difference from conversion of financial statements in

foreign currency-1,128,985 .73 2,709,627 .93

(9) Others

(II) After-tax net amount of other comprehensive earnings attributed to

minority shareholders-718,006 .81 2,235,224 .46

VII. Total comprehensive earnings 227,549,570.01 -509,413,270.79

(I) Total earnings attributed to parent company’s owners 118,207,644 .08 -585,868,946 .75

(II) Total earnings attributed to minority shareholders 109,341,925 .93 76,455,675 .96

VIII. Earnings per share

(I) Basic earnings per share (yuan/share) 0 .078 -0 .374

(II) Diluted earnings per share (yuan/share) 0 .078 -0 .374

Consolidated Income Statement (Continued)January-December 2019





Profit Statement of Parent CompanyJanuary-December 2019



I. Operating income 1,798,892,626.49 2,158,744,710.51

Minus: Operating expense 1,466,184,378 .27 1,813,101,663 .02

Business taxes and extra 14,363,768 .38 14,718,212 .87

Sales expenses 167,203,945 .30 170,274,612 .20

Administration expenses 99,862,774 .12 110,599,701 .57

R&D expenses 27,585,135 .72 24,369,002 .63

Financial expenses 96,459,638 .36 100,539,831 .35

Wherein: Interest expense 108,348,446 .49 107,359,758 .60

Interest income 9,462,705 .95 12,192,993 .21

Add: Other earnings 30,960,762 .17 36,229,132 .02

Investment earnings (losses marked with “-”) 116,282,634 .05 269,909,449 .04

Wherein: Earnings from investment in joint ventures and cooperative 990,786 .70 -1,571,692 .31

Derecognition of income for financial assets measured at amortized cost

Net exposure hedging income (losses marked with “-”)

Earning from changes in fair value (losses marked with “-”) 542,660 .00 119,200 .00

Losses from credit impairment (losses marked with “-”) -7,853,488 .98

Losses from assets impairment (losses marked with “-”) -820,006,297 .44

Earning from disposal of assets (losses marked with “-”) -1,106,196 .50 749,493 .57

II. Operating profit (losses marked with “-”) 66,059,357.08 -587,857,335.94

Plus: non-operating income 458,193 .47 2,094,663 .11

Minus: Non-operating expenses 1,897,239 .48 230,510 .01

III. Total profit (total losses marked with “-”) 64,620,311.07 -585,993,182.84

Minus: income tax costs -4,921,742 .77 -127,694,169 .51

IV. Net profit (net losses marked with “-”) 69,542,053.84 -458,299,013.33

(I) Net profit of continuing operations (net losses marked with “-”) 69,542,053 .84 -458,299,013 .33

(II) Net profit of discontinued operation (net losses marked with “-”)

V. After-tax net amount of other comprehensive earnings

(I) Other comprehensive earnings not reclassified as profits or losses

1 . Changes from re-measuring or re-defining benefit plan

2 . Other Comprehensive earnings not transferred to profits and losses under equity law

3 . Changes in fair value of other equity instrument investments

4 . Changes in fair value of the Company’s own credit risks

(II) Other comprehensive earnings reclassified as profits and losses

1 . Other Comprehensive earnings transferred to profits and losses under equity law

2 . Changes in fair value of other debt investments

3 . Profits or losses from change of fair value of available-for-sale financial assets

4 . Amount of financial assets reclassified into other comprehensive earnings

5 . Profits and losses from held-to-maturity reclassified available-for-sale financial assets

6 . Provisions for credit impairment of other debt investments

7 . Cash flow hedging reserve (effective part of profits and losses from cash flow hedging)

8 . Difference from conversion of financial statements in foreign currency

9 . Others

VI. Total comprehensive earnings

VII. Earnings per share:

(I) Basic earnings per share (yuan/share)

(II) Diluted earnings per share (yuan/share)




Consolidated Cash Flow statementJanuary-December 2019

Prepared by: KEDA Clean Energy Co., Ltd. Unit: Yuan Currency: CNY

Subject Year 2019 Year 2018I. Cash flow from operating activities Cash received from selling commodity and providing labors 5,949,752,189 .07 5,019,323,697 .15 Net increment from customer deposit and inter-bank deposit Net increment from loan of the central bank Net increment from borrowed funds of other financial institutions Cash received from premium of original insurance contracts Net cash amount received from reinsurance business Net increment from the insured’ deposit and investment Cash received from interest, handling charge and commission Net increment from borrowing funds Net increment from buyback business Net cash received by agents trading securities Tax refunds received 95,683,129 .56 192,734,826 .71 Other cash received related to operating activities 154,435,016 .55 184,137,765 .34 Operating activities cash inflow subtotal 6,199,870,335.18 5,396,196,289.20 Cash paid for buying commodity and receiving labor 4,113,963,397 .68 3,981,447,455 .79 Net increase of loan and advance of customers Net increment from depositing with the central bank and

inter-bank deposit Cash paid to indemnity of the original insurance contract Net increment from lending funds Cash paid for interest, handling charge and commissioning Cash paid for policy dividend Cash paid to and for the staff 723,094,692 .74 673,880,531 .87 Taxes paid 247,329,848 .42 220,759,211 .63 Other cash paid related to operating activities 521,649,271 .26 463,938,402 .67 Operating activities cash outflow subtotal 5,606,037,210.10 5,340,025,601.96 Net cash flows from operating activities 593,833,125.08 56,170,687.24II. Cash flow from investment activities Cash received from recovering investment 1,478,550 .00 15,000,000 .00 Cash received from acquiring investment earnings 1,514,034 .88 1,000,000 .00 Net cash amount from disposal of fixed assets, intangible assets

and other long-term assets642,645 .73 624,932 .60

Net cash amount from disposal of subsidiaries and other operators

5,902,119 .11

Other cash received related to investment activities 533,277,522 .51 1,665,000,000 .00 Investment activities cash inflow subtotal 542,814,872.23 1,681,624,932.60 Cash paid for procurement and construction of fixed assets,

intangible assets and other long-term assets

384,592,526 .01 419,340,621 .89

Cash paid for investment 5,431,010 .30 176,032,232 .61 Net increment from pledge loan Net cash paid to acquire subsidiary companies and

other operating units90,454,902 .40 16,423,311 .69

Other cash paid related to investment activities 569,100,000 .00 1,688,478,960 .72 Investment activities cash outflow subtotal 1,049,578,438.71 2,300,275,126.91 Net cash flow generated from investing activities -506,763,566.48 -618,650,194.31






III. Cash flow from financing activities:

Cash received from absorbing investment 45,556,920 .60 27,776,957 .11

Wherein: cash received from subsidiaries’ taking minority shareholders’ investment

45,556,920 .60 27,776,957 .11

Cash received from loan 4,081,326,222 .08 3,883,049,111 .94

Other cash received related to financing activities 366,701,009 .62 229,022,702 .44

Financing activities cash inflow subtotal 4,493,584,152.30 4,139,848,771.49

Cash paid for debt repayment 4,122,623,636 .88 2,915,468,092 .37

Cash paid for distributing dividend, profit or repaying interest 204,536,191 .02 243,956,005 .29

Wherein: dividend and profit paid to minority shareholders by subsidiaries

15,992,000 .00 7,844,310 .90

Other cash paid related to financing activities 268,253,161 .89 571,941,930 .27


Net cash flow generated from financing activities -101,828,837.49 408,482,743.56

IV. Influences on cash and cash equivalent by change of exchange rate

-1,788,554.32 -26,537.66

V. Net increment of cash and cash equivalent -16,547,833.21 -154,023,301.17

Add: cash and cash equivalent balance at the beginning of the period

1,090,425,818 .41 1,244,449,119 .58

VI. Cash and cash equivalent balance at the end of the period 1,073,877,985.20 1,090,425,818.41

Consolidated Cash Flow statement (Continued)January-December 2019

Prepared by: KEDA Clean Energy Co., Ltd. Unit: Yuan Currency: CNY



Cash Flow Statement of Parent CompanyJanuary-December 2019



I. Cash flow from operating activities

Cash received from selling commodity and providing labors 1,795,847,195 .62 2,107,656,651 .66

Tax refunds received 51,015,756 .50 98,309,937 .18

Other cash received related to operating activities 835,391,397 .10 544,437,728 .73

Operating activities cash inflow subtotal 2,682,254,349.22 2,750,404,317.57

Cash paid for buying commodity and receiving labor 1,364,966,904 .67 1,855,747,865 .83

Cash paid to and for the staff 249,801,927 .91 259,250,872 .41

Taxes paid 32,269,139 .87 39,356,487 .86

Other cash paid related to operating activities 416,589,558 .87 564,552,515 .36

Operating activities cash outflow subtotal 2,063,627,531.32 2,718,907,741.46

Net cash flows from operating activities 618,626,817.90 31,496,576.11

II. Cash flow from investment activities

Cash received from recovering investment 338,800 .00 17,310,000 .00

Cash received from acquiring investment earnings 116,809,817 .27 272,133,000 .00

Net cash amount from disposal of fixed assets, intangible assets and

other long-term assets71,400 .00 18,000 .00

Net cash amount from disposal of subsidiaries and other operators

Other cash received related to investment activities 345,000,000 .00 1,665,000,000 .00

Investment activities cash inflow subtotal 462,220,017.27 1,954,461,000.00

Cash paid for procurement and construction of fixed assets, intangible assets

and other long-term assets13,795,750 .13 97,378,274 .77

Cash paid for investment 323,023,146 .04 158,950,855 .50

Net cash paid to acquire subsidiary companies and other operating units

Other cash paid related to investment activities 345,000,000 .00 1,665,000,000 .00

Investment activities cash outflow subtotal 681,818,896.17 1,921,329,130.27

Net cash flow generated from investing activities -219,598,878.90 33,131,869.73

III. Cash flow from financing activities:

Cash received from absorbing investment

Cash received from loan 1,948,715,795 .88 1,945,045,197 .74

Other cash received related to financing activities 165,405,291 .79 84,699,865 .20


Cash paid for debt repayment 2,185,773,579 .39 1,414,275,548 .88

Cash paid for distributing dividend, profit or repaying interest 106,543,281 .06 184,916,376 .07

Other cash paid related to financing activities 206,780,435 .67 725,048,828 .85


Net cash flow generated from financing activities -384,976,208.45 -294,495,690.86

IV. Influences on cash and cash equivalent by change of exchange rate -861,182.46 -3,948,844.45

V. Net increment of cash and cash equivalent 13,190,548.09 -233,816,089.47

Add: cash and cash equivalent balance at the beginning of the period 387,529,021 .23 621,345,110 .70

VI. Cash and cash equivalent balance at the end of the period 400,719,569.32 387,529,021.23




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on of

prev

ious e

rrors

Enter

prise

merg

ing un

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trol

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rsII.

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lance

at th

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inning

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ar1,5

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III.

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eriod

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ked

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1,577

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l rep

rese

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zatio

n: L

i Qin

g



III. Corporate Profile1. Corporate profileDate of establishment of the Company: December 11, 1996; registered address: No .1, West Huanzhen Road,

Guanglong Industrial Park, Chencun Town, Shunde District, Foshan City, Guangdong Province . Headquarters Address: No .1, West Huanzhen Road, Guanglong Industrial Park, Chencun Town, Shunde District, Foshan City, Guangdong Province, and the Company’s legal representative: Yang Xuexian .Approved by China Securities Regulatory Commission (CSRC) on September 18, 2002, the Company issued RMB common share 20 million shares to the public for the first time, and was listed at Shanghai Stock Exchange on October 10, 2002 . At present, the registered capital is CNY 1,577,205,702 .00 yuan .

The Company’s business scope: manufacturing of building material machinery for ceramics, stone, wall material, energy saving and environmental protection materials, research, development and manufacturing of automation technology and outfit; sales of: electromechanical product parts, grinding wheel and grinding apparatus, grinding materials and ceramics products; research, development, manufacturing and sales of machinery and equipment and automation technology and outfit related to clean energy; manufacturing and sales of clean coal gas and steam; information and technology service, software development and sales, system integration, hardware equipment leasing and sales, and network technical consultation service; operating export and production for products and relevant technologies used by the enterprise and member enterprises, and raw and auxiliary materials, machinery and equipment, instrument and meters, parts and relevant technology import required for scientific research (except for commodities restricted or prevented from import or export by the state government); operating processing with incoming materials and “assembling with supplied parts, processing with supplied materials and samples, and compensation trade” (specifics in accordance with [2000] W .J .M .F .Z .S .H .Z . No .3250)

Industry of the Company: special equipment manufacturing industry .The Company’s main products: building materials machinery, clean coal gasification equipment, end flue gas

treatment equipment, high-end components and other equipment, building ceramics .

2. Scope of consolidated financial statement√Applicable □Not applicableThe scope of consolidation of the Company’s consolidated financial statement is determined based on control, all

controlled subsidiaries are accepted in the scope of consolidation of the consolidated financial statements, and newly accepted subsidiaries, structural entities or business entities formed in other forms are listed as follows:

Name Acquired viaSixian KEDA New Energy Technology Co ., Ltd . Newly-establishedFoshan KEDA Trade Co ., Ltd Newly-establishedKeda International Company S .a .r .l . Newly-establishedKeda Europe S .r .l . Newly-establishedGuangdong KEDA Smart Energy Technology Co ., Ltd Newly-establishedMaanshan Kehan New Energy Technology Co ., Ltd Newly-establishedAnhui Keqing Environmental Engineering Co ., Ltd . Newly-establishedFoshan Dehua Investment Co ., Ltd . Merging under different controlsI .C .F . & Welko S .p .A . Merging under different controlsWibe S .L . Merging under different controls

Refer to the Annotation “Equities in subsidiaries” for details of subsidiaries accepted in the consolidated financial statements; refer to “Change of scope of consolidation” for change of scope of consolidation .



3. The implementation of the new financial standards, new income standards and new lease standards from 2019 adjusts the relevant items of the financial statements at the beginning of the current year of the first implementation

√Applicable □Not applicableConsolidated Balance Sheet

Currency: CNY Unit: Yuan

Subject December 31, 2018 January 1, 2019 Adjustment

Current assets:Monetary fund 1,475,658,889 .64 1,475,658,889 .64Settlement fundLending fundTrading financial assetsFinancial asset at fair value and changes through profit or lossDerivative financial assetsNotes receivable 202,787,500 .67 2,891,019 .92 -199,896,480 .75Accounts receivable 1,646,831,871 .46 1,488,294,561 .52 -158,537,309 .94Accounts receivable financing 199,719,710 .67 199,719,710 .67Advance payment 372,529,271 .03 372,529,271 .03Premium receivableReinsurance accounts receivablesReinsurance contract provision receivableOther receivables 111,058,573 .63 108,647,276 .67 -2,411,296 .96Wherein: Interest receivable Dividends ReceivableBuy buyback financial assetsInventory 1,981,107,145 .28 1,981,107,145 .28Held-to-sale assetsNon-current assets due within one year 855,604,750 .88 983,364,021 .64 127,759,270 .76Other current assets 119,439,915 .28 119,439,915 .28Current assets in total 6,765,017,917.87 6,731,651,811.65 -33,366,106.22

Non-current assets:Issue loan and advanced paymentDebt investmentFinancial assets available for sale 19,260,000 .00 -19,260,000 .00Other debt investmentHeld-to-maturity investmentLong-term accounts receivable 363,541,041 .30 339,376,989 .01 -24,164,052 .29Long-term equity investment 1,134,060,945 .99 1,134,060,945 .99Other equity instrument investment 19,260,000 .00 19,260,000 .00Other non-current financial assetsInvestment propertyFixed assets 2,134,242,354 .79 2,134,242,354 .79Projects under construction 183,459,389 .57 183,459,389 .57Production biological assetsOil and gas assetsRight to use assetsIntangible assets 456,670,003 .98 456,670,003 .98Development expensesGoodwill 954,675,275 .74 954,675,275 .74Long-term deferred expenses 6,937,228 .80 6,937,228 .80Deferred income tax assets 147,190,982 .84 150,815,506 .41 3,624,523 .57Other non-current assets 23,066,256 .05 23,066,256 .05Non-current assets in total 5,423,103,479.06 5,402,563,950.34 -20,539,528.72

Assets in total 12,188,121,396.93 12,134,215,761.99 -53,905,634.94




Current liabilities:Short-term loan 2,166,408,490 .23 2,166,408,490 .23Loan from the Central BankBorrowing fundTrading financial liabilitiesFinancial liabilities at fair value and changes through profit or lossDerivative financial liabilitiesNotes payable 567,868,357 .96 567,868,357 .96Accounts payable 1,459,296,376 .35 1,459,296,376 .35Accounts pre-received 540,884,968 .24 540,884,968 .24Sell buyback financial assetsDeposit-taking and inter-bank depositAmount of selling and buying securities as agentAmount of selling securities as agentPayroll payable 103,502,298 .77 103,502,298 .77Tax payable 62,952,932 .99 62,952,932 .99Other accounts payable 128,364,738 .77 128,364,738 .77Wherein: Interest payable Dividends payableHandling charges and commission payableReinsurance accounts payableHeld-for-sale liabilitiesNon-current liabilities due in one year 669,634,288 .31 669,634,288 .31Other non-current liabilitiesCurrent liabilities in total 5,698,912,451.62 5,698,912,451.62

Non-current liabilities:Insurance contract provisionLong-term loan 1,280,006,066 .53 1,280,006,066 .53Bonds payableWherein: Priority share Perpetual liabilitiesLease liabilityLong-term accounts payable 100,000,000 .00 100,000,000 .00Long-term payroll payableEstimated liabilitiesDeferred income 25,400,000 .00 25,400,000 .00Deferred income tax liabilities 13,273,692 .28 13,273,692 .28Other non-current liabilities 79,224,672 .49 79,224,672 .49Non-current liabilities in total 1,497,904,431.30 1,497,904,431.30

Total liabilities 7,196,816,882.92 7,196,816,882.92Owner’s (or shareholder’s) equity

Paid-up capital (or share capital) 1,577,205,702 .00 1,577,205,702 .00Other equity instrumentsWherein: Priority share Perpetual liabilitiesCapital public reserve 1,138,390,049 .87 1,138,390,049 .87Minus: treasury share 118,377,637 .16 118,377,637 .16Other comprehensive earnings 10,072,380 .25 10,072,380 .25Special provisionSurplus reserve 306,963,861 .18 306,963,861 .18General risk provisionUndistributed profit 1,744,160,483 .46 1,697,541,503 .82 -46,618,979 .64Total owner’s equity (or shareholder’s equity) attributed to parent company

4,658,414,839.60 4,611,795,859.96 -46,618,979.64

Minority shareholders’ equity 332,889,674 .41 325,603,019 .11 -7,286,655 .30Owner’s equity (or shareholder’s equity) in total 4,991,304,514.01 4,937,398,879.07 -53,905,634.94

Liabilities and owner’s equity (or shareholder’s equity) 12,188,121,396.93 12,134,215,761.99 -53,905,634.94



Description of adjustment of each item:

√Applicable □Not applicable

① The company has implemented the new financial standards for the first time since January 1, 2019, and has made the

following adjustment to the classification and measurement of financial assets: for equity instrument investment that does

not have control, joint control or significant influence on the invested unit and has no quotation in the active market and

whose fair value cannot be reliably measured, its original classification as “available-for-sale financial assets” is adjusted to be

“financial assets measured at fair value and whose changes are included in other comprehensive income” according to the

provisions of the new financial standards, and the item listed in the statements is “other equity instrument investment” .

② The company adopts the simplified model of expected credit loss to measure the provision for impairment according to

the expected credit loss of the whole duration of receivables, and adjusts the opening balance of relevant items in 2019

accordingly . See the comparison table for the specific adjustment .

Balance Sheet of Parent CompanyCurrency: CNY Unit: Yuan


Current assets:Monetary fund 480,521,481 .53 480,521,481 .53Trading financial assetsFinancial asset at fair value and changes through profit or lossDerivative financial assetsNotes receivable 11,519,108 .12 -11,519,108 .12Accounts receivable 924,919,471 .53 929,792,592 .72 4,873,121 .19Accounts receivable financing 11,519,108 .12 11,519,108 .12Advance payment 67,680,280 .83 67,680,280 .83Other receivables 531,431,765 .40 532,162,704 .08 730,938 .68Wherein: Interest receivable Dividends ReceivableInventory 606,023,173 .82 606,023,173 .82Held-to-sale assetsNon-current assets due within one yearOther current assets 2,900,618 .32 2,900,618 .32Current assets in total 2,624,995,899.55 2,630,599,959.42 5,604,059.87

Non-current assets:Debt investmentFinancial assets available for sale 1,260,000 .00 -1,260,000 .00Other debt investmentHeld-to-maturity investmentLong-term accounts receivableLong-term equity investment 4,814,083,268 .16 4,814,083,268 .16Other equity instrument investment 1,260,000 .00 1,260,000 .00Other non-current financial assetsInvestment propertyFixed assets 291,759,208 .94 291,759,208 .94Projects under construction 16,307,354 .32 16,307,354 .32Production biological assetsOil and gas assetsRight to use assetsIntangible assets 38,674,683 .49 38,674,683 .49Development expensesGoodwillLong-term deferred expensesDeferred income tax assets 133,407,003 .25 132,561,891 .96 -845,111 .29Other non-current assetsNon-current assets in total 5,295,491,518.16 5,294,646,406.87 -845,111.29

Assets in total 7,920,487,417.71 7,925,246,366.29 4,758,948.58





Short-term loan 1,212,974,743 .81 1,212,974,743 .81




Notes payable 217,380,000 .00 217,380,000 .00

Accounts payable 525,125,347 .55 525,125,347 .55


Payroll payable 36,358,729 .06 36,358,729 .06

Tax payable 1,681,659 .24 1,681,659 .24



Dividends payable


Non-current liabilities due in one year 247,666,666 .66 247,666,666 .66




Long-term loan 853,293,918 .30 853,293,918 .30

Bonds payable



Lease liability

Long-term accounts payable



Deferred income

Deferred income tax liabilities


Non-current liabilities in total 894,617,138.19 894,617,138.19










Special provision

Surplus reserve 299,956,818 .15 299,956,818 .15

Undistributed profit 1,071,030,857 .31 1,075,789,805 .89 4,758,948 .58

Owner’s equity (or shareholder’s equity) in total 4,424,178,082.50 4,428,937,031.08 4,758,948.58

Liabilities and owner’s equity (or shareholder’s equity) 7,920,487,417.71 7,925,246,366.29 4,758,948.58



IV. Taxes1. Main tax types and tax rate:Main tax types and tax rate situation

Tax types Taxing basis Tax rate

VAT Taxable income3%, 5%, 6%, 9%, 10%, 11%, 12 .5%, 13%,

16%, 17%, 18%, 21%, 22%

Urban maintenance and construction

Taxable turnover tax 1%, 5%, 7%

Corporate income tax Taxable corporate income 12 .5%, 15%, 19 .26%, 22%, 25%, 27 .90%, 30%

Education fee extra Taxable turnover tax 3%

Local education fee extra Taxable turnover tax 2%

Where there is any taxpayer with different corporate income tax rates, details should be disclosed .

Taxpayer Tax rate (%)

Keda (Ghana) Ceramics Company Limited 12 .50

KEDA Clean Energy Co ., Ltd . 15 .00

KEDA (Anhui) Industrial Co ., Ltd . 15 .00

Anhui KEDA Clean Energy Co ., Ltd . 15 .00

Foshan KEDA Hydraulic Machinery Co .,Ltd . 15 .00

Foshan Henglitai Machinery Co ., Ltd . 15 .00

Henan KDNEU International Engineering Co ., Ltd . 15 .00

Foshan Zhuolitai Machinery Co ., Ltd . 15 .00

Jiangsu Kehang Environmental Protection Technology Co ., Ltd . 15 .00

Foshan DLT Technology Co ., Ltd . 15 .00

Keda International Company S .a .r .l . 19 .26

Keda Turkey Makine Ticaret Limited Sirketi 22 .00

KEDA (Shenyang) Clean Energy Gas Co ., Ltd . 25 .00

Anhui Xincheng Investment Co ., Ltd . 25 .00

Wuhu KEDA Suremaker Co ., Ltd . 25 .00

Changsha Aer Compressor Co ., Ltd . 25 .00

Henan Tailong Metallurgy Technology Co ., Ltd . 25 .00

Ningxia Kehang Environmental Protection Engineering Co ., Ltd . 25 .00

Keda (Anhui) New Material Co ., Ltd . 25 .00

Zhangzhou Grande Graphite Material Co ., Ltd . 25 .00

Anhui KEDA Purui Energy Technology Co ., Ltd 25 .00

KEDA (Anhui) New Energy Automobile Sales Co ., Ltd . 25 .00

KEDA (Anhui)Huadong New Energy Automobile Travel Service Co ., Ltd . 25 .00

Anhui KEDA Electricity Co ., Ltd . 25 .00

Anhui KEDA Keneng Electricity Co ., Ltd . 25 .00

Foshan KEDA Ceramic Technology Co ., Ltd . 25 .00

Qinghai Weili New Energy Material Co ., Ltd . 25 .00

Qinghai KEDA Lithium Industry Co ., Ltd . 25 .00

Jiangsu KEDA Electric Power Co ., Ltd . 25 .00

Guangdong Shunde KEDA Clean Energy Co ., Ltd . 25 .00

Fujian Kehua Graphite Technology Co ., Ltd . 25 .00

Changzhou KEDA Electricity Co ., Ltd . 25 .00

Anhui Huaxin Power Engineering Co ., Ltd . 25 .00

Maanshan KEDA Purui Energy Technology Co ., Ltd . 25 .00

Suqian Weidao New Energy Technology Co ., Ltd . 25 .00

KEDA (Sichuan) New Material Co ., Ltd . 25 .00



Taxpayer Tax rate (%)

Anhui KEDA Yuli Automobile Technology Co ., Ltd . 25 .00

Guangdong Xincheng Financial And Leasing Co ., Ltd . 25 .00

Anhui Xincheng Financial And Leasing Co ., Ltd . 25 .00

Sixian KEDA New Energy Technology Co ., Ltd . 25 .00

Foshan KEDA Trade Co ., Ltd 25 .00

Foshan Dehua Investment Co ., Ltd . 25 .00

Maanshan Kehan New Energy Technology Co ., Ltd 25 .00

Guangdong KEDA Smart Energy Technology Co ., Ltd 25 .00

Anhui Keqing Environmental Engineering Co ., Ltd . 25 .00

Wibe S .L . 25 .00

I .C .F . & Welko S .p .A . 27 .90

Keda Europe S .r .l . 27 .90

Keda (Kenya) Ceramics Company Limited 30 .00

Keda (Tanzania) Ceramics Company Limited 30 .00

Twyford (SN) Ceramics Limited 30 .00

Kami Colourcera Private Limited 30 .00

Keda Industrial(India) Limited 30 .00

V. Notes to items in consolidated financial statements1. Accounts receivable(1) Disclosure by aging


AgingClosing book

balance

Subtotal within 1 year 1,284,452,880 .41

1 to 2 years 363,754,415 .62

2 to 3 years 92,658,929 .54

More than 3 years 149,895,133 .34

Total 1,890,761,358.91

(2) Classified disclosure by bad debt provision methodUnit: Yuan Currency: CNY

Category

Closing balance Opening BalanceBook balance Bad debt provision

Book value

Book balance Bad debt provision

Book valueAmount

Proportion (%)

AmountAccrual

ration (%)

AmountProportion

(%)Amount

Accrual ration

(%)

Provision for bad debts by single item

45,695,864 .79 2 .42 40,245,500 .87 88 .07 5,450,363 .92 22,257,282 .06 1 .31 14,921,915 .26 67 .04 7,335,366 .80

Where:Accounts receivable with significant single amount and separate provision for bad debts

26,213,977 .58 1 .39 21,085,785 .06 80 .44 5,128,192 .52 12,027,579 .93 0 .71 6,488,505 .53 53 .95 5,539,074 .40

Accounts receivable with insignificant single amount but separate provision for bad debts

19,481,887 .21 1 .03 19,159,715 .81 98 .35 322,171 .40 10,229,702 .13 0 .60 8,433,409 .73 82 .44 1,796,292 .40

Accrue bad debt provision according to combination

1,845,065,494 .12 97 .58 207,037,624 .20 11 .22 1,638,027,869 .92 1,678,885,118 .00 98 .69 197,925,923 .28 11 .79 1,480,959,194 .72

Where:Accounts receivable with provision for bad debts based on aging combination

1,845,065,494 .12 97 .58 207,037,624 .20 11 .22 1,638,027,869 .92 1,678,885,118 .00 98 .69 197,925,923 .28 11 .79 1,480,959,194 .72

Total 1,890,761,358.91 / 247,283,125.07 / 1,643,478,233.84 1,701,142,400.06 / 212,847,838.54 / 1,488,294,561.52



2. Accounts prepaid(1) Listing of accounts prepaid according to debt age


AgingClosing balance Opening Balance

Amount Proportion (%) Amount Proportion (%)

Within 1 year 324,961,629 .42 88 .29 293,136,002 .33 78 .69

1 to 2 years 24,638,352 .09 6 .69 52,023,832 .21 13 .97

2 to 3 years 10,063,983 .34 2 .73 12,324,046 .91 3 .31

More than 3 years 8,442,482 .48 2 .29 15,045,389 .58 4 .03

Total 368,106,447.33 100.00 372,529,271.03 100.00

(2) Accounts prepaid of the top five prepaying entities for closing balanceUnit: Yuan Currency: CNY

DebtorRelation with the Company

Amount owedRate of total

accounts prepaid (%)

Reason for unsettled accounts

Supplier 1 Related parties 129,557,727 .46 35 .20 Within delivery period of the Contract

Supplier 2 Non-related party 24,218,500 .00 6 .58 Within delivery period of the Contract




Total 181,341,592.46 49.27

Remark: Supplier 1 is Qinghai Salt Lake Fozhao Lanke Lithium Industry Co ., Ltd ., a joint-stock company; closing balance of

accounts prepaid does not include balance due by shareholders with 5% or more voting shares of the Company .

3. Other receivablesList of items


Subject Closing balance Opening Balance

Interest receivable



Total 124,704,796.66 108,647,276.67

Other receivables(1) Disclosure by aging


Aging Closing book balance

Subtotal within 1 year 90,241,395 .35

1 to 2 years 20,279,590 .98

2 to 3 years 9,243,559 .39

More than 3 years 15,364,702 .15

Total 135,129,247.87

(2) Classification of fund natureUnit: Yuan Currency: CNY

Fund nature Closing book balance Opening book balance

Current accounts 63,693,412 .60 57,264,407 .20

Other current accounts 25,363,252 .00 22,720,370 .26

Export rebate 23,274,094 .88 12,063,713 .93

Security 22,798,488 .39 29,751,834 .16

Total 135,129,247.87 121,800,325.55



(3) Other receivables in the top five closing balances collected by debtorsUnit: Yuan Currency: CNY

Unit name Fund nature Closing balance Aging

Rate of total closing

balance of other

accounts receivable (%)

Bad debt

provision Closing

balance

Corresponding unit 1 Export rebate 12,213,361 .18 Within 1 year 9 .04

Corresponding unit 2 Export rebate 11,026,446 .15 Within 1 year 8 .16

Corresponding unit 3 Current accounts 9,818,470 .96 1 to 4 years 7 .27 3,499,630 .85

Corresponding unit 4 Security 2,436,840 .00 Within 2 years 1 .80

Corresponding unit 5 Security 2,280,000 .00 Within 2 years 1 .69

Total 37,775,118.29 27.96 3,499,630.85

4. Stock(1) Stock classification


SubjectClosing balance Opening Balance

Book balanceDepreciation

reserveBook value Book balance

Depreciation reserve

Book value

Raw materials 791,647,665 .50 8,462,130 .19 783,185,535 .31 679,376,330 .52 679,376,330 .52Goods in process 981,783,140 .32 981,783,140 .32 786,483,718 .27 786,483,718 .27Stock commodity 557,950,395 .10 557,950,395 .10 480,691,507 .69 480,691,507 .69Revolving materialsConsumptive biological assetsCompleted and outstanding assets from construction contractsCommodity shipped 67,489,638 .71 67,489,638 .71 34,555,588 .80 34,555,588 .80Total 2,398,870,839.63 8,462,130.19 2,390,408,709.44 1,981,107,145.28 1,981,107,145.28

5. Long-term receivablesUnit: Yuan Currency: CNY

SubjectClosing balance Opening Balance Range of

discounting rate

Book balanceBad debt provision

Book value Book balanceBad debt provision

Book value

Financing and leasing payment

298,455,071 .09 2,530,610 .23 295,924,460 .86 342,281,440 .55 2,904,451 .54 339,376,989 .01

Wherein: unrealized financial earnings

17,175,660 .55 17,175,660 .55 18,911,244 .71 18,911,244 .71

Sales of commodity on installmentSupply of labors on installmentsTotal 298,455,071.09 2,530,610.23 295,924,460.86 342,281,440.55 2,904,451.54 339,376,989.01 /



6. Long-term equity investmentUnit: Yuan Currency: CNY

Invested unit Opening Balance

Change from increasing or decreasing during the period

Closing balance

Closing balance of

depreciation reserve

Investment increased

Investment decreased

Gains and losses confirmed under

the equity law

Other comprehensive

earning adjustment

Other equity changes

Cash dividend or profit

declared or issued

Depreciation reserve

accruedOthers

II. Cooperative enterprises

Jiangsu Zhongchuang Qingyuan Technology Co ., Ltd .

7,166,799 .83 1,280,757 .17 8,447,557 .00

Sichuan Guangxing Lithium Power Technology Co ., Ltd .

16,709,976 .33 410,037 .25 1,000,000 .00 16,120,013 .58

Guangdong Taiwei Digital Ceramic Printing Co ., Ltd .

505,152 .65 505,152 .65 —

Anhui Hudu Keda Fluid Machinery Co ., Ltd .

11,004,562 .85 580,749 .45 11,585,312 .30

Anqing Binjiang Energy Co ., Ltd . 5,792,353 .87 5,867,931 .64 75,577 .77 — Maanshan Qingshan Electricity Co ., Ltd .

4,560,879 .67 510,000 .00 266,951 .38 5,337,831 .05

Qinghai Salt Lake Fozhao Lanke Lithium Industry Co ., Ltd .

1,086,181,474 .51 27,488,357 .35 1,629,158 .77 1,115,298,990 .63

Dongguan KEDA Weifu New Energy Technology Co ., Ltd .

2,139,746 .28 -700,802 .10 1,438,944 .18

Anhui Ganghua KEDA Smart Energy Co ., Ltd .

1,600,000 .00 -41,202 .30 1,558,797 .70

Maanshan KEDA Jinxin Automobile Maintenance Service Co ., Ltd .

210,000 .00 -9,796 .02 200,203 .98

Subtotal 1,134,060,945.99 2,320,000.00 6,373,084.29 29,350,629.95 1,629,158.77 1,000,000.00 1,159,987,650.42

Total 1,134,060,945.99 2,320,000.00 6,373,084.29 29,350,629.95 1,629,158.77 1,000,000.00 1,159,987,650.42

7. Other equity instrument investment(1) Other equity instrument investment



Foshan Zhongtao Alliance Technology Co ., Ltd . 1,260,000 .00 1,260,000 .00

Huizhou Avenue New Material Technology Co ., Ltd . 3,000,000 .00 3,000,000 .00

Ma Gang (Shanghai) Financial Leasing Co ., Ltd . 15,000,000 .00 15,000,000 .00

Fujian Keda Electric Power Co ., Ltd . 3,820,562 .02

Guangdong Modena Technology Co ., Ltd . 36,450,825 .82

Foshan Taolian Technology Development Co ., Ltd 720,000 .00

Total 60,251,387.84 19,260,000.00

(2) Non trading equity instrument investmentUnit: Yuan Currency: CNY

Subject

Dividend income

recognized in the current

period

Cumulative profits

Aggregate losses

The amount of other comprehensive

earnings transferred into retained

earnings

Reasons for designation to be measured at fair

value with changes included in other

comprehensive earnings

Reasons for other comprehensive

earnings transferred to

retained earnings

Ma Gang (Shanghai) Financial Leasing Co ., Ltd .

162,417 .61 162,417 .61According to

Management’s intention to hold


The closing balance of other equity instrument investment was CNY 60 .2514 million yuan, mainly due to the following reasons:

1 . According to the relevant provisions of the new financial standards, the Company changed the available-for-sale financial

assets of CNY 19 .26 million yuan at the end of the previous year to other equity instrument investments for listing;

2 . CNY 36 .4508 million yuan was brought in from new addition of the merged unit Dehua Investment;



3 . In the current period, due to the loss of control over Fujian Electric Power, KEDA Electricity, a subsidiary, changed its

equity investment accounting from cost method to “financial assets measured at fair value with changes included in other

comprehensive earnings”;

4 . In the current period, KEDA Clean Energy invested CNY 720,000 yuan to set up Foshan Taolian Technology Development

Co ., Ltd . with KEDA Clean Energy holding 18% of the company’s equity .

8. Fixed assetsUnit: Yuan Currency: CNY


Fixed assets 2,634,805,163 .52 2,134,242,354 .79

Fixed Asset Disposal

Total 2,634,805,163.52 2,134,242,354.79

(1) Fixed assetsUnit: Yuan Currency: CNY

SubjectLand

(overseas)

Building and

property

Machines

and equipment

Transporting

equipment

Electronic

equipment

and others

Total

I. Original book value:

1 . Opening balance 22,460,793 .58 1,773,624,173 .40 1,874,203,684 .75 65,819,865 .23 78,625,451 .28 3,814,733,968 .24

2 . Increment this period 38,889,893 .49 250,927,441 .69 479,309,188 .02 9,275,840 .82 18,643,266 .41 797,045,630 .43

(1) Purchasing 11,510,814 .99 7,919,283 .91 44,871,227 .07 9,232,060 .06 7,024,395 .46 80,557,781 .49

(2) Transfer from projects

under construction213,452,647 .90 422,999,101 .93 636,451,749 .83

(3) Increment from

enterprises merged27,379,078 .50 29,555,509 .88 11,438,859 .02 43,780 .76 11,618,870 .95 80,036,099 .11

3 . Decrement this period 19,650,542 .80 29,376,329 .71 3,516,117 .27 3,672,595 .43 56,215,585 .21

(1) Disposal or scrapping 29,376,329 .71 3,516,117 .27 3,672,595 .43 36,565,042 .41

(2) Transfer into projects

under construction19,650,542 .80 19,650,542 .80

4. Closing balance 61,350,687.07 2,004,901,072.29 2,324,136,543.06 71,579,588.78 93,596,122.26 4,555,564,013.46

II. Cumulative depreciation

1 . Opening balance 446,234,809 .89 672,142,920 .02 32,053,280 .58 50,010,846 .09 1,200,441,856 .58

2 . Increment this period 107,214,428 .14 143,319,998 .06 9,976,382 .49 20,186,681 .43 280,697,490 .12

(1) Accrual 90,459,729 .04 132,283,028 .00 9,976,382 .49 9,813,556 .22 242,532,695 .75

(2) Increment from

enterprises merged16,754,699 .10 11,036,970 .06 10,373,125 .21 38,164,794 .37

3 . Decrement this period 13,007,037 .34 21,061,154 .14 3,057,521 .41 3,304,540 .74 40,430,253 .63

(1) Disposal or scrapping 21,061,154 .14 3,057,521 .41 3,304,540 .74 27,423,216 .29

(2) Transfer into projects

under construction13,007,037 .34 13,007,037 .34

4. Closing balance 540,442,200.69 794,401,763.94 38,972,141.66 66,892,986.78 1,440,709,093.07

III. Depreciation reserve

1 . Opening balance 69,121,418 .78 410,928,338 .09 480,049,756 .87

2 . Increment this period

(1) Accrual

(2) Increment from

enterprises merged

3 . Decrement this period

(1) Disposal or scrapping

4. Closing balance 69,121,418.78 410,928,338.09 480,049,756.87

IV. Book value

1. Closing book value 63,889,799.69 1,395,337,452.80 1,116,267,328.42 32,607,447.13 26,703,135.48 2,634,805,163.52

2 . Opening book value 22,460,793 .58 1,258,267,944 .73 791,132,426 .64 33,766,584 .65 28,614,605 .19 2,134,242,354 .79



(2) Temporarily idle fixed assetsUnit: Yuan Currency: CNY

SubjectOriginal book

valueCumulative

depreciationDepreciation

reservesBook value Remark

Building and property 124,004,188 .71 33,788,025 .78 69,121,418 .78 21,094,744 .15

Machines and equipment 692,735,449 .48 211,207,986 .79 410,928,338 .09 70,599,124 .60

Electronic equipment and others

668,732 .17 587,041 .95 81,690 .22

Total 817,408,370.36 245,583,054.52 480,049,756.87 91,775,558.97

Note: The Company’s controlled subsidiary, KEDA (Shenyang) Clean Energy, has ceased production and business in 2018, and

related properties and equipment have been idle .

9. Projects under constructionUnit: Yuan Currency: CNY


Projects under construction 215,216,098 .46 183,459,389 .57

Total 215,216,098.46 183,459,389.57

(1) Projects under constructionUnit: Yuan Currency: CNY

Subject

Closing balance Opening Balance


reservesBook value Book balance

Depreciation

reservesBook value

Equipment and installation 14,075,166 .17 14,075,166 .17 29,740,900 .14 29,740,900 .14

Reconstruction of KEDA Clean

Energy’s workshop9,704,506 .17 9,704,506 .17

Reconstruction of KEDA Clean

Energy’s office7,006,196 .30 7,006,196 .30

KEDA (Anhui) Industrial

electromechanical plant3,163,139 .40 3,163,139 .40 3,207,222 .94 3,207,222 .94

Reconstruction of Anhui Xincheng

Mansion17,088,749 .37 17,088,749 .37

Kehua graphite project 17,588,941 .45 17,588,941 .45 7,722,356 .53 7,722,356 .53

Project of manufacturing base for

digital ceramics equipment107,623,833 .97 107,623,833 .97 3,287,934 .47 3,287,934 .47

Project of lithium battery series

anode material with annual

production of 20,000 tons

42,694,291 .49 42,694,291 .49 36,350,167 .59 36,350,167 .59

Phase II of Ghana Ceramics Plant

Project4,046,351 .30 4,046,351 .30 5,201,029 .17 5,201,029 .17

Phase II of Kenya Ceramics Plant

Project5,320,109 .73 5,320,109 .73 477,592 .45 477,592 .45

Comprehensive building

construction project of Tanzania8,585,831 .15 8,585,831 .15

Phase I of Senegal Ceramics

Plant Project5,092,760 .87 5,092,760 .87 56,113,037 .73 56,113,037 .73

Other sporadic projects 8,605,307 .78 8,605,307 .78 5,980,061 .86 5,980,061 .86

Total 215,216,098.46 215,216,098.46 183,459,389.57 183,459,389.57



(2) Changes of major projects under construction in the current periodUnit: Yuan Currency: CNY

Item name BudgetOpening

Balance

Increment

this period

Amount of

transfer into

fixed assets

this period

Other

decrement

this period

Closing

Balance

Proportion of

accumulated

project

investment in

budget (%)

Project

progress

Accumulated

amount of

interest

capitalization

Wherein:

Interest

capitalization

amount in the

current period

Capitalization

rate of interest

in the current

period (%)

Sources

of

financing

R&D and industrialization

project of intelligent

manufacturing equipment

for building ceramics with

annual production of 200

units (sets)

70,400,000 .00 13,460,036 .32 13,460,036 .32 99 .72 100 .00%

Project of production

relocation and technical

reform of digital ceramics

machinery

73,062,638 .55 11,576,284 .31 11,576,284 .31 99 .69 100 .00%

Project of lithium battery

series anode material with

annual production of 20,000

tons

180,428,355 .72 36,350,167 .59 51,275,208 .75 44,931,084 .85 42,694,291 .49 97 .12 97 .12%

Phase II of Ghana Ceramics

Plant Project153,648,267 .52 5,201,029 .17 138,078,033 .92 139,232,711 .79 4,046,351 .30 93 .25 93 .25%

Phase I of Senegal Ceramics

Plant Project405,864,900 .00 56,113,037 .73 342,705,437 .59 393,725,714 .45 5,092,760 .87 98 .26 98 .26% 8,207,441 .39 8,207,441 .39 83 .61

Self-

raised

Total 883,404,161.79 97,664,234.49 557,095,000.89 602,925,831.72 51,833,403.66 8,207,441.39 8,207,441.39 / /

10. Intangible assets(1) Intangible assets


Subject Land use rightApplication

softwarePatent right

Trademark

right

Non-patented

technologyTotal

I. Original book value

1 . Opening balance 497,091,309 .00 24,786,702 .82 66,590,372 .27 1,639,800 .00 4,500,000 .00 594,608,184 .09

2 . Increment this period 15,231,932 .05 2,134,643 .76 17,366,575 .81

(1) Purchasing 15,231,932 .05 1,967,937 .25 17,199,869 .30

(2) Internal research and development

(3) Increment from enterprises merged 166,706 .51 166,706 .51

3 . Decrement this period 7,248,800 .00 13,207 .55 7,262,007 .55

(1) Disposal 7,248,800 .00 13,207 .55 7,262,007 .55

4. Closing balance 505,074,441.05 26,908,139.03 66,590,372.27 1,639,800.00 4,500,000.00 604,712,752.35

II. Cumulative amortization

1 . Opening balance 71,306,998 .20 16,644,229 .67 43,952,380 .67 1,534,571 .57 4,500,000 .00 137,938,180 .11

2 . Increment this period 9,275,213 .79 1,575,612 .04 8,439,824 .40 105,228 .43 19,395,878 .66

(1) Accrual 9,275,213 .79 1,575,612 .04 8,439,824 .40 105,228 .43 19,395,878 .66

3 . Decrement this period 60,406 .70 1,485 .81 61,892 .51

(1) Disposal 60,406 .70 1,485 .81 61,892 .51

4. Closing balance 80,521,805.29 18,218,355.90 52,392,205.07 1,639,800.00 4,500,000.00 157,272,166.26

III. Depreciation reserve

1 . Opening balance

2 . Increment this period

(1) Accrual

3 . Decrement this period

(1) Disposal

4. Closing balance

IV. Book value

1. Closing book value 424,552,635.76 8,689,783.13 14,198,167.20 - 447,440,586.09

2 . Opening book value 425,784,310 .80 8,142,473 .15 22,637,991 .60 105,228 .43 456,670,003 .98



11. Goodwill(1) Original book value of goodwill


Invested party or goodwill description Opening Balance

Increment

this period

Decrement

this periodClosing balance

Enterprises

mergeddisposal

Foshan Henglitai Machinery Co ., Ltd . 202,726,972 .41 202,726,972 .41

Wuhu KEDA Suremaker Co ., Ltd . 189,095,543 .17 189,095,543 .17

Changsha Aer Compressor Co ., Ltd . 18,823,759 .31 18,823,759 .31

Henan KDNEU International Engineering

Co ., Ltd .232,664,477 .89 232,664,477 .89

Jiangsu Kehang Environmental Protection

Technology Co ., Ltd .75,596,829 .84 75,596,829 .84

Anhui KEDA Purui Energy Technology Co ., Ltd 4,160,100 .00 4,160,100 .00

Qinghai Weili New Energy Material Co ., Ltd . 144,082,157 .89 144,082,157 .89

Qinghai KEDA Lithium Industry Co ., Ltd . 261,315,685 .22 261,315,685 .22

Maanshan KEDA Jinxin Automobile

Maintenance Service Co ., Ltd .168,140 .89 168,140 .89 -

Brightstar Investment Limited 113,522,333 .97 113,522,333 .97

Keda (Ghana) Ceramics Company Limited 14,416,737 .23 14,416,737 .23

Keda (Tanzania) Ceramics Company Limited 10,259,143 .58 10,259,143 .58

Anhui Huaxin Power Engineering Co ., Ltd . 943,797 .49 943,797 .49

Maanshan KEDA Purui Energy Technology

Co ., Ltd .4,694,036 .50 4,694,036 .50

I .C . F&WELKO S .P .A 52,926,130 .16 52,926,130 .16

Total 1,272,469,715.39 52,926,130.16 168,140.89 1,325,227,704.66

(2) Impairment of goodwillUnit: Yuan Currency: CNY

Invested party or goodwill description Opening Balance

Increment

this period

Decrement

this period Closing balance

Accrual disposal




Henan KEDA Dongda International Engineering

Co ., Ltd .157,965,925 .52 35,636,538 .42 193,602,463 .94

Wuhu KEDA Suremaker Co ., Ltd . 65,407,924 .98 65,407,924 .98

Total 317,794,439.65 35,636,538.42 353,430,978.07

(3) Information about the asset group or asset group combination in which the goodwill is locatedDuring the reporting period, the Company integrated the internal business of each subsidiary of Litai, transferred the

personnel, main equipment and business of ZHUOLITAI and DLT as a whole to HENLITAI, and the relevant asset group changed accordingly . In addition, the asset groups of other goodwill are consistent with the asset groups selected during the impairment test on the date of purchase and the previous year .

(4) Describe the goodwill impairment test process, key parameters (such as the growth rate in the forecast period, the growth rate in the stable period, the profit rate, the discount rate, the forecast period, if applicable) and the recognition method of goodwill impairment loss .

The recoverable amount of goodwill is calculated according to the present value of the future cash flow of the asset group, and the expected future cash flow is determined according to the cash flow forecast based on the financial budget of the next five years approved by the Management . The key assumptions used in the impairment test include: sales growth rate, gross profit rate and discount rate . The Company determines the above key data based on historical



experience and market development forecast . The discount rate adopted by the Company is the pre-tax interest rate reflecting the time value of the current market currency and the specific risk of the relevant asset group .

Subject Key parameters RemarkForecast period 2020 to 2024 (the following is the stability period)

Growth rate in the forecast period

Based on industry practice, market change, business model, production capacity, production and marketing rate and combined with the Company’s comprehensive management judgment

Growth rate in the stability period Keep flatProfit rate Calculate based on predicted income, costs, expenses, etc .Discount rate (Weighted average cost of capital WACC)

12 .98%–15 .86%

(5) Influences of goodwill impairment testAt the end of 2019, the Company predicted the recoverable amount of the asset group in which the goodwill is

located . The recoverable amount of the asset group in which the goodwill is located is determined according to the present value of the expected recoverable cash flow in the future . The future cash flow is determined based on the Company’s Management’s prediction of the future business development and profit realization . At the same time, the Company hired Beijing Zhongheyi Asset Evaluation Co ., Ltd . (hereinafter referred to as “Zhongheyi”) has evaluated the impairment test of the Company’s main goodwill on the benchmark date of December 31, 2019, and issued the evaluation report .

Through the test, it was found that the(1) In the forecast, the Management of the asset group of KEDA Dongda, a wholly-owned subsidiary, took into

account the future development of the industry, national policies and the impact of cost changes such as raw materials and labor, and estimated that the cash inflow capacity of future business operations would decline, and the goodwill would be impaired by CNY 35,636,538 .42 yuan .

(2) Except for the impairment of the asset group of KEDA Dongda, the asset group of other goodwill had no signs of impairment after testing .

12. Short-term loan(1) Classification of short-term loan



Pledge loan 141,013,340 .66Mortgage loan 254,871,534 .14 53,056,638 .80

Warranted loan 815,132,515 .52 705,756,286 .52

Credit loan 1,090,469,631 .07 1,266,582,224 .25

Mortgage loan+warranted loan 21,487,718 .44

Total 2,181,961,399.17 2,166,408,490.23

Description of short-term loan classification:

Remark 1: Details of warranted loan are described as follows:

Borrower GuarantorGuarantee

ModeCurrency

Amount in original currency

Amount Converted into

CNY

KEDA (Anhui) Industrial Co ., Ltd . KEDA Clean Energy Co ., Ltd .Warranted guarantee

CNY 3,000,000 .00 3,000,000 .00

Zhangzhou Grande Graphite Material Co ., Ltd .

KEDA Clean Energy Co ., Ltd .Warranted guarantee

CNY 15,000,000 .00 15,000,000 .00

KEDA (Anhui)Huadong New Energy Automobile Travel Service Co ., Ltd .

KEDA (Anhui) Industrial Co ., Ltd ., Maanshan Huadong Travel Passenger Transportation Co ., Ltd .

Warranted guarantee

CNY 10,000,000 .00 10,000,000 .00



Borrower GuarantorGuarantee

ModeCurrency

Amount in original currency

Amount Converted into

CNY

Anhui KEDA Yuli Automobile Technology Co ., Ltd .

KEDA (Anhui) Industrial Co ., Ltd ., Anhui Yuli Holding Co ., Ltd .

Warranted guarantee

CNY 6,000,000 .00 6,000,000 .00

Anhui KEDA Clean Energy Co ., Ltd . KEDA Clean Energy Co ., Ltd .Warranted guarantee

CNY 100,000,000 .00 100,000,000 .00

Foshan Zhuolitai Machinery Co ., Ltd . KEDA Clean Energy Co ., Ltd .Warranted guarantee

CNY 20,000,000 .00 20,000,000 .00

Foshan Henglitai Machinery Co ., Ltd .Foshan Zhuolitai Machinery Co ., Ltd .

Warranted guarantee

CNY 40,000,000 .00 40,000,000 .00

Foshan Henglitai Machinery Co ., Ltd . KEDA Clean Energy Co ., Ltd .Warranted guarantee

CNY 126,352,878 .82 126,352,878 .82

Jiangsu Kehang Environmental Protection Technology Co ., Ltd .

KEDA Clean Energy Co ., Ltd ., Jiangsu Kehang Environmental Protection Engineering Technology Co ., Ltd .

Warranted guarantee

CNY 377,700,000 .00 377,700,000 .00

Xincheng International (Hong Kong) Co ., Ltd .

KEDA Clean Energy Co ., Ltd .Warranted guarantee

EUR 14,988,500 .00 117,079,636 .70

Total 815,132,515.52

Remark 2: Mortgage loan of CNY 254 .8715 million yuan applied by subsidiaries Keda Kenya, Keda Ghana, Keda Tanzania and

KEDA (Anhui) Industrial to the bank with real estate and machinery and equipment as collateral .

Remark 3: Mortgage loan + guaranteed loan of CNY 21 .4877 million yuan obtained by subsidiary Keda Kenya with the warranted

guarantee provided by KEDA Clean Energy Co ., Ltd . guarantee and its own equipment as collateral .

13. Notes payable(1) Listing of notes payable


Type Closing balance Opening Balance

Commercial acceptance draft 1,389,218 .00

Bank acceptance draft 528,441,098 .10 567,868,357 .96

Total 529,830,316.10 567,868,357.96

Remark 1: Amount of bank acceptance draft issued by parent company and subsidiary company at the end of the period:

Company nameAmount of bank acceptance draft

issued at the end of the period:

KEDA Clean Energy Co ., Ltd . 182,647,344 .13

Jiangsu Kehang Environmental Protection Technology Co ., Ltd . 107,726,718 .04

KEDA (Anhui) Industrial Co ., Ltd . 66,194,525 .44

Anhui Xincheng Financial And Leasing Co ., Ltd . 58,800,000 .00

Anhui KEDA Clean Energy Co ., Ltd . 56,888,543 .00

Henan KDNEU International Engineering Co ., Ltd . 33,233,967 .49

Zhangzhou Grande Graphite Material Co ., Ltd . 15,700,000 .00

Foshan Henglitai Machinery Co ., Ltd . 7,250,000 .00

Total 528,441,098.10

Remark 2: the commercial acceptance draft of CNY 1,389,218 .00 yuan is the commercial acceptance draft issued by Jiangsu

Kehang .



14. Accounts payable(1) List of accounts receivable



Within 1 year 1,451,728,356 .03 1,226,362,663 .73

1 to 2 years 141,373,350 .95 128,083,051 .40

2 to 3 years 43,509,623 .51 51,856,108 .33

More than 3 years 84,119,412 .23 52,994,552 .89

Total 1,720,730,742.72 1,459,296,376.35

(2) Important accounts payable with aging over 1 yearUnit: Yuan Currency: CNY

Subject Closing balance Reason for non-repayment or carry-over

Supplier 6 17,200,711 .00 Project disputes

Supplier 7 10,582,784 .82 Within the credit period



Suppliers 10 6,149,200 .00 Within the credit period

Total 51,043,704.10 /

15. Accounts pre-received(1) List of accounts pre-received



Within 1 year 565,830,859 .94 405,741,026 .23

1 to 2 years 64,573,284 .34 85,404,410 .01

2 to 3 years 24,284,473 .23 12,904,288 .74

More than 3 years 43,661,638 .74 36,835,243 .26

Total 698,350,256.25 540,884,968.24

(2) Important accounts pre-received with aging over 1 yearUnit: Yuan Currency: CNY

Subject Closing balance Reason for non-repayment or carry-over

Customer A 6,258,565 .40 Failure to meet settlement conditions

Customer B 5,055,500 .00 Failure to meet settlement conditions

Customer C 4,590,000 .00 Failure to meet settlement conditions

Customer D 3,316,300 .00 Failure to meet settlement conditions

Customer E 3,285,000 .00 Failure to meet settlement conditions

Total 22,505,365.40

16. Non-current liabilities due within 1 yearUnit: Yuan Currency: CNY


Long-term loan due within 1 year 972,273,888 .69 669,634,288 .31

Bonds payable due within 1 year

Long-term accounts payable due within 1 year 100,000,000 .00

Lease liabilities due within 1 year

Total 1,072,273,888.69 669,634,288.31




Remark 1: Details of long-term loans due within 1 year


Pledge loan 232,666,666 .71 Warranted loan 437,955,978 .89 394,525,221 .25Mortgage loan+warranted loan 27,797,247 .59 27,442,400 .40Credit loan 273,853,995 .50 247,666,666 .66Total 972,273,888.69 669,634,288.31

Remark 2: Pledge loan

Borrower Corresponding pledge CurrencyAmount in

original currency

Amount Converted

into CNY

KEDA Clean Energy Co ., Ltd .Qinghai Weili’s equity, KEDA Lithium

Industry’s equityCNY 105,000,000 .00 105,000,000 .00

KEDA Clean Energy Co ., Ltd . KEDA (Anhui) Clean Energy’s equity CNY 46,666,666 .71 46,666,666 .71

KEDA Clean Energy Co ., Ltd . Lanke Lithium’s equity CNY 81,000,000 .00 81,000,000 .00

Total 232,666,666.71 232,666,666.71

Remark 3: Details of warranted loan are described as follows:

Borrower GuarantorMode of

guaranteeCurrency

Amount

in original

currency

Amount

Converted

into CNY

Keda (Kenya) Ceramics Company Limited KEDA Clean Energy Co ., Ltd .Warranted

guaranteeEUR 7,000,000 .00 54,482,694 .74

Keda (Kenya) Ceramics Company Limited KEDA Clean Energy Co ., Ltd .Warranted

guaranteeUSD 7,500,000 .00 52,105,500 .00

Keda (Ghana) Ceramics Company Limited KEDA Clean Energy Co ., Ltd .Warranted

guaranteeEUR 4,100,000 .00 31,911,305 .94

Twyford (SN) Ceramics Company Limited KEDA Clean Energy Co ., Ltd .Warranted

guaranteeEUR 5,000,000 .00 38,915,474 .29

Anhui Xincheng Financial And Leasing

Co ., Ltd .KEDA Clean Energy Co ., Ltd .

Warranted

guaranteeCNY 260,541,003 .92 260,541,003 .92

Total 437,955,978.89

Remark 4: Mortgage loan + guaranteed loan of CNY 27 .7972 million yuan obtained by subsidiary Keda Tanzania with the

warranted guarantee provided by KEDA Clean Energy Co ., Ltd . and its own land and equipment as collateral .

Remark 5: The closing balance of long-term accounts payable due within one year of CNY 100 million yuan was the investment of

Yancheng Venture Capital in Jiangsu Kehang .

17. Long-term loan(1) Classification of long-term loan



Pledge loan 336,436,132 .00 751,769,465 .37

Mortgage loan

Warranted loan 344,707,974 .09 328,376,880 .02

Credit loan 230,184,045 .87 101,524,452 .93

Mortgage loan+warranted loan 71,782,155 .10 98,335,268 .21

Total 983,110,307.06 1,280,006,066.53

Description of long-term loan classification:

Remark 1: Details of pledge loan:

Borrower Pledge CurrencyAmount in

original currency

Amount Converted

into CNY

KEDA Clean Energy Co ., Ltd .Qinghai Weili’s equity, KEDA Lithium

Industry’s equityCNY 174,436,132 .00 174,436,132 .00

KEDA Clean Energy Co ., Ltd . Lanke Lithium’s equity CNY 162,000,000 .00 162,000,000 .00

Total 336,436,132.00



Remark 2: Details of warranted loan:

Borrower GuarantorMode of

guaranteeCurrency

Amount

in original

currency

Amount

Converted into

CNY

Keda (Ghana) Ceramics Company Limited KEDA Clean Energy Co ., Ltd .Warranted

guaranteeEUR 8,200,000 .00 63,822,611 .87

Twyford (SN) Ceramics Company Limited KEDA Clean Energy Co ., Ltd .Warranted

guaranteeEUR 25,000,000 .00 194,577,371 .43

Anhui Xincheng Financial And Leasing

Co ., Ltd .KEDA Clean Energy Co ., Ltd .

Warranted

guaranteeCNY 86,307,990 .79 86,307,990 .79

Total 344,707,974.09

Remark 3: Mortgage loan + warranted loan of CNY 71 .7821 million yuan obtained by subsidiary Keda Tanzania with the warranted

guarantee provided by KEDA Clean Energy Co ., Ltd . and its own land and equipment as collateral .

18. Long-term accounts payableUnit: Yuan Currency: CNY


Long-term accounts payable 100,000,000 .00

Special accounts payable

Total 100,000,000.00

Long-term accounts payable(1) Listing of long-term accounts payable by fund nature


Subject Opening Balance Closing balance

Other financing 100,000,000 .00


According to the equity investment agreement signed by Jiangsu Kehang Environmental Protection Co ., Ltd ., the Company’s

subsidiary, and Yancheng Innovation and Entrepreneurship Investor Co ., Ltd (hereinafter referred to as “Yancheng Venture Capital”),

Jiangsu Kehang Environmental Energy Development Co ., Ltd . (hereinafter referred to as “Kehang Environmental Energy”) and

Jiangsu Kehang Environmental Protection Engineering Technology Co ., Ltd . (hereinafter referred to as “Kehang Environmental

Engineering”),Yancheng Venture Capital invested CNY 100,000,000 .00 yuan in Jiangsu Kehang for a period of no more than three

years . The annual rate of earnings on investment is in accordance with the benchmark interest rate of bank loan in the same period of

each year . The floating rate (4 .35% in the first year) is paid by Jiangsu Kehang to Yancheng Venture Capital per annum . The agreement

defines that when the equity investment period of Yancheng Venture Capital in Jiangsu Kehang expires, KEDA Clean Energy, Kehang

Environmental Engineering and Kehang Environmental Energy . Jointly undertake to accept or designate a third party to accept 12%

equity of Jiangsu Kehang held by Yancheng Venture Capital on the premise of meeting the existing laws and regulations and the

regulatory requirements of listed companies, with the transfer price of CNY 100 million yuan . At the end of the investment period,

Yancheng Venture Capital retains no more than 20% of its stock .

19. Deferred earningsDeferred earnings


SubjectOpening Balance

Increment this period

Decrement this period

Closing balance

Cause

Government subsidy

25,400,000 .00 500,000 .00 5,000,000 .00 20,900,000 .00Special fund granted by

the government

Total 25,400,000.00 500,000.00 5,000,000.00 20,900,000.00 /



Projects involving government subsidy:Unit: Yuan Currency: CNY

Projects with liabilitiesOpening

Balance

Newly

increased

subsidy this

period

Amount

accounted into

non-operating

income this

period

Amount

accounted into

other earnings

this period

Other

changes

Closing

balance

Related

to assets/

related to

earnings

Supporting fund for construction of manufacturing base of clean coal gasification system of Newpower appropriated by Anhui Provincial Energy Administration

10,500,000 .00 3,500,000 .00 7,000,000 .00Related to

assets

Industrial support fund of Henglitai 14,900,000 .00 500,000 .00 1,500,000 .00 13,900,000 .00Related to

assets

Total 25,400,000.00 500,000.00 5,000,000.00 20,900,000.00 /

20. Undistributed profitUnit: Yuan Currency: CNY

Subject This period Last period

Undistributed profit at the end of last period before adjustment 1,744,160,483 .46 2,411,599,343 .24

Total undistributed profit at the opening period (increment marked with “+”, decrement marked with “-“)

-46,618,979 .64

Undistributed profit at the beginning of the period after adjustment 1,697,541,503 .82 2,411,599,343 .24

Add: net profit attributed to parent company’s owners in the period 119,336,629 .81 -588,578,574 .68

Minus: Withdraw statutory surplus reserve 6,954,205 .38

Withdraw discretionary surplus reserve

Withdraw general risk provision

Common stock dividends payable 78,860,285 .10

Dividend of ordinary shares payable converted into capital share

Undistributed profit at the end of the period 1,809,923,928.25 1,744,160,483.46

Details of adjustment of undistributed profit at the beginning of the period:

1 . Due to retroactive adjustment under the Accounting Standards for Business Enterprises and other relevant new regulations,

the undistributed profit at the beginning of the period is affected by CNY 0 yuan .

2 . Due to the change of accounting policy, the undistributed profit at the beginning of the period was affected by CNY

46,618,979 .64 yuan .

3 . Due to correction of significant accounting errors, the undistributed profit at the beginning of the period is affected by CNY 0

yuan .

4 . Due to changes in enterprise merging scope under the same control, the undistributed profit at the beginning of the period is

affected by CNY 0 yuan .

5 . The total amount of other adjustments affects the undistributed profit at the beginning of the period by CNY 0 yuan .

21. Operating income and operating expense(1) Operating income and operating expense


SubjectAmount occurred this period Amount occurred last period

Income Cost Income Cost

Main business 6,414,020,403 .99 4,927,209,232 .33 6,063,878,815 .85 4,817,937,431 .65

Other business 8,402,846 .50 5,251,260 .25 6,959,348 .27 4,097,547 .37

Total 6,422,423,250.49 4,932,460,492.58 6,070,838,164.12 4,822,034,979.02




Main business (by product)

Product descriptionAmount occurred this period Amount occurred last period

Operating revenue Operating cost Operating revenue Operating cost

Building material machinery sector

2,904,524,652 .76 2,188,318,292 .11 3,544,500,606 .67 2,879,438,321 .81

Clean environmental protection equipment

1,477,441,299 .34 1,239,452,294 .68 1,062,729,618 .19 911,288,618 .33

Financial leasing 73,280,069 .02 20,798,867 .83 93,195,105 .74 22,726,278 .99Lithium battery material 466,101,281 .67 453,914,796 .95 322,380,894 .23 293,018,157 .44Building ceramics 1,061,112,544 .18 685,184,068 .19 808,357,696 .40 551,195,775 .74Others 431,560,557 .02 339,540,912 .57 232,714,894 .62 160,270,279 .34Total 6,414,020,403.99 4,927,209,232.33 6,063,878,815.85 4,817,937,431.65

Main business (by region)

RegionAmount occurred this period Amount occurred last period

Operating revenue Operating cost Operating revenue Operating cost

Domestic 3,922,649,017 .40 3,099,541,797 .25 3,808,210,694 .69 3,120,108,384 .26

Abroad 2,491,371,386 .59 1,827,667,435 .08 2,255,668,121 .16 1,697,829,047 .39

Total 6,414,020,403.99 4,927,209,232.33 6,063,878,815.85 4,817,937,431.65

Remark: Total sales amount of the top five customers is CNY 1,083 .2287 million yuan (tax excluded), accounting for 16 .89% of

sales revenue .

22. Marketing expenseUnit: Yuan Currency: CNY

SubjectAmount occurred

this periodAmount occurred

last period

Staff remuneration 159,038,984 .37 151,353,169 .65

Travel expenses 42,405,002 .67 41,464,702 .01

Transport expenses 78,594,481 .20 53,763,172 .64

Entertainment expense 19,209,222 .26 13,502,425 .03

Expenses for advertising and business promotion 7,766,628 .24 4,861,179 .55

After-sales service fee 19,297,415 .17 19,256,350 .19

Others 68,282,543 .54 67,134,348 .59

Total 394,594,277.45 351,335,347.66

23. Administration expensesUnit: Yuan Currency: CNY



last period

Staff remuneration 208,560,988 .73 198,145,752 .82

Office expenses 27,887,362 .00 23,655,845 .58

Water and electricity charges 14,319,188 .31 11,597,299 .02

Travel expenses 19,051,452 .23 16,952,232 .98

Audit and consultancy fee 34,840,654 .53 32,676,220 .93

Depreciation and rent 75,653,515 .58 106,824,938 .88

Amortization of intangible assets 18,937,534 .30 19,847,370 .67

Property insurance premiums 11,421,855 .90 14,015,618 .13

Labor premiums 17,834,032 .17 17,243,026 .19

Others 48,234,990 .20 54,808,922 .46

Total 476,741,573.95 495,767,227.66



24. R&D expensesUnit: Yuan Currency: CNY



last period

Material expenses 62,091,401 .49 72,075,411 .47

Labor expenses 79,147,713 .42 81,730,231 .74

Depreciation and amortization 9,524,045 .05 6,716,259 .01

Other expenses 15,563,220 .80 17,308,100 .24

Total 166,326,380.76 177,830,002.46

25. Financial costsUnit: Yuan Currency: CNY



last period

Interest expense 181,563,188 .25 157,750,493 .95

Minus: Interest income -15,962,283 .83 -17,783,465 .88

Exchange gains and losses 2,609,758 .31 -10,195,252 .86

Handling charge 19,721,016 .86 16,015,718 .49

Total 187,931,679.59 145,787,493.70

26. Investment earningsUnit: Yuan Currency: CNY



last period

Earnings of long-term equity investment computed according to the equity method

32,504,303 .58 110,406,440 .86

Earnings of investment from disposal of long-term equity investment 78,093 .93 334,423 .69

Investment income of financial assets measured with fair value and changes accounted into current profits and losses during the holding period

Investment income from the disposal of financial assets measured with fair value and changes accounted into current profits and losses

Investment income of held-to-maturity investment during the holding period

Investment income from disposal of held-to-maturity investment

Investment income of available-for-sale financial assets during the holding period

Investment income from disposal of available-for-sale financial assets

Investment income of trading financial assets during the holding period

Dividend income from other equity instrument investment during the holding period

162,417 .61

Interest income from debt investment during the holding period

Interest income from other debt investment during the holding period

Investment income from disposal of trading financial assets

Investment income from disposal of other equity instrument investment

Investment income from disposal of debt investment

Investment income from disposal of other debt investment

Total 32,744,815.12 110,740,864.55




Remark 1: Earnings of long-term equity investment computed with the equity method:

Invested unitAmount occurred

this period

Amount occurred

last period

Dongguan KEDA Weifu New Energy Technology Co ., Ltd . -700,802 .10 -460,253 .72

Qinghai Salt Lake Fozhao Lanke Lithium Industry Co ., Ltd . 30,642,030 .98 113,276,553 .52

Sichuan Guangxing Lithium Battery Technology Co ., Ltd . 410,037 .25 1,814,773 .54

Anhui Hudu KEDA Fluid Machinery Co ., Ltd . 580,749 .45 -3,386,465 .85

Anqing Binjiang Energy Co ., Ltd . 75,577 .77 -175,846 .13

Jiangsu Zhongchuang Qingyuan Technology Co ., Ltd . 1,280,757 .17 -633,200 .17

Maanshan Qingshan Electricity Selling Co ., Ltd . 266,951 .38 -29,120 .33

Anhui Ganghua KEDA Smart Energy Co ., Ltd . -41,202 .30

Maanshan KEDA Jinxin Automobile Maintenance Service Co ., Ltd . -9,796 .02

Total 32,504,303.58 110,406,440.86

Remark 2: Investment earnings from disposal of long-term equity investment


this period

Amount occurred

last period

Fujian Keda Electric Power Co ., Ltd . -3,781 .74

Guangdong Taiwei Digital Ceramic Printing Co ., Ltd . -166,352 .65

Maanshan KEDA Jinxin Automobile Maintenance Service Co ., Ltd . -108,036 .04

Anqing Binjiang Energy Co ., Ltd . 356,264 .36 334,423 .69

Total 78,093.93 334,423.69

Remark 3: Dividend income obtained from other equity instrument investment during the holding period


this period

Amount occurred

last period

Ma Gang (Shanghai) Financial Leasing Co ., Ltd . 162,417 .61

Total 162,417.61

Remark 4: The amount of investment income incurred in this period decreased by 70 .43% compared with the amount in the same

period of the previous year, which was mainly due to the decrease in investment income of Lanke Lithium in the current period .

27. Credit impairment lossUnit: Yuan Currency: CNY



last period

Bad debt loss of other receivables 2,006,681 .12

Impairment loss of debt investment

Impairment loss of other debt investment

Bad debt loss of long-term receivables 373,841 .31

Bad debt loss of accounts receivables -22,855,607 .13

Bad debt loss of notes receivable -33,568 .17

Bad debt loss of non-current assets due within one year -17,135,531 .34

Total -37,644,184.21



28. Assets impairment lossUnit: Yuan Currency: CNY



last period

I . Non-performing debt losses -89,054,869 .46

II . Loss from falling prices of stock -8,462,130 .19

III Impairment loss of available-for-sale financial assets

IV . Impairment loss of held-to-maturity investment

V . Impairment loss of long-term equity investment

VI . Impairment loss of investment property

VII . Impairment loss of fixed assets -449,820,049 .87

VIII . Impairment loss of project materials

IX . Impairment loss of projects under construction

X . Impairment loss of production biological assets

XI . Impairment loss of oil and gas assets

XII . Impairment loss of intangible assets

XIII . Impairment loss goodwill -35,636,538 .42 -233,562,755 .36

XIV . Others -92,012,305 .74

Total -44,098,668.61 -864,449,980.43

29. Government subsidy(1) Basic situation of government subsidies


Type Amount Reporting item

Amount included

in the current

profits and losses

VAT levied immediately returned 13,268,890 .36 Other income 13,268,890 .36

Special Fund for Promoting Economic Development of Guangdong

Province in 2019 granted by Shunde Economy Promotion Bureau

(two-way investment direction project)

6,304,173 .69 Other income 6,304,173 .69

Provincial financial subsidy for enterprise research and development 3,999,050 .00 Other income 3,999,050 .00

Supporting fund for construction of manufacturing base of clean coal

gasification system of Newpower appropriated by Anhui Provincial

Energy Administration

3,500,000 .00 Other income 3,500,000 .00

Foshan foreign economic cooperation special fund project of Shunde

District Treasury Center3,500,000 .00 Other income 3,500,000 .00

Maanshan Economic and Information Commission’s Strong

Manufacturing Province construction funds3,260,000 .00 Other income 3,260,000 .00

Tax incentives granted by the Management Committee of Maanshan

Economic and Technological Development Zone3,020,000 .00 Other income 3,020,000 .00

Provincial special fund for promoting high-quality economic

development (first unit/set) in 2019 granted by Shunde District

Treasury of Foshan City

2,820,000 .00 Other income 2,820,000 .00

Financial incentives granted by the Management Committee of

Maanshan Economic and Technological Development Zone2,714,352 .00 Other income 2,714,352 .00

Tax preferences through credit for VAT input tax addition 2,493,642 .31 Other income 2,493,642 .31

2017 Special Fund for Industry and Information Technology

of Guangdong Province granted by Shunde District Bureau of

Economic and Technological Promotion of Foshan City

2,300,000 .00 Other income 2,300,000 .00

Funds for high quality economic development granted by Sanshui

District Bureau of Finance of Foshan City2,238,500 .00 Other income 2,238,500 .00

Special science and technology innovation platform subsidy granted

by Sanshui Economy Promotion Bureau2,070,000 .00 Other income 2,070,000 .00



Type Amount Reporting item

Amount included

in the current

profits and losses

Special subsidy for major emerging industries for key technology development and industrialization of new energy vehicle high performance graphene based composite electrode negative electrode material

2,035,990 .00 Other income 2,035,990 .00

Special fund for promoting foreign economic cooperation of Foshan City in 2019 (part of Foreign Economic Cooperation) granted by Foshan Municipal Bureau of Commerce

1,900,000 .00 Other income 1,900,000 .00

Special fund for promoting the development of export credit insurance in 2018

1,708,591 .90 Other income 1,708,591 .90

Industrial support fund of Henglitai 1,500,000 .00 Other income 1,500,000 .00

Special fund for provincial industrial and information transformation and upgrading in 2018 granted by Tinghu District Finance Bureau

1,500,000 .00 Other income 1,500,000 .00

Unemployment and job stabilization subsidy granted by Zhengzhou Social Insurance Bureau

1,413,600 .00 Other income 1,413,600 .00

Supplementary fund for independent innovation award of Zhengdong New Area awarded by Economic Development Bureau of Zhengdong New Area

1,200,000 .00 Other income 1,200,000 .00

Pearl River West Bank Advanced Equipment Manufacturing Industry Development Fund Award

1,150,000 .00 Other income 1,150,000 .00

Unemployment benefits and job stabilizing subsidies granted by Shunde Social Security Bureau

1,134,269 .60 Other income 1,134,269 .60

Infrastructure construction subsidy project of Ningxia Kehang 1,100,000 .00 Other income 1,100,000 .00

Subsidy granted by Science and Technology Bureau of Shunde District, Foshan City for top 50 benchmark high-tech enterprises in 2018

1,000,000 .00 Other income 1,000,000 .00

Subsidy granted by Shunde District Treasury for top 50 benchmark high-tech enterprises in 2018

1,000,000 .00 Other income 1,000,000 .00

Bus operation subsidy granted by the Management Committee of Maanshan Economic and Technological Development Zone

965,808 .00 Other income 965,808 .00

Tax revenue return 885,140 .43 Other income 885,140 .43

City level incentive for increasing production and efficiency in the first quarter of 2018 granted by the Treasury Payment Center of Nanjing County Finance Bureau

561,600 .00 Other income 561,600 .00

2019 municipal standardized strategic fund subsidy granted by Foshan Municipal Market Supervision and Administration Bureau of Guangdong Province

540,000 .00 Other income 540,000 .00

Subsidy of provincial platform talent introduction award granted by Organization Department of Dangtu County

500,000 .00 Other income 500,000 .00

Other rewards 10,751,632 .52 Other income 10,751,632 .52

Total 82,335,240.81 82,335,240.81

VI. Change of merging scope1.Merger of enterprises under different controls(1) Merger of enterprise under different controls occurred in this period


The purchased partyDate of equity

acquired

Cost of equity

acquired

Ratio of equity

acquired (%)

Equity acquired

via

Date of purchasing

Basis for determination of date of purchasing

Revenue of the purchased party from the date of

purchasing to the end of the period

Net profit of the purchased party from the date of

purchasing to the end of the period

I .C .F . & Welko S .p .A . 2019/2/28 12,788 .33 60 .00 Cash 2019/2/28Notarization by the notary office completed

20,833 .37 1,000 .88

Foshan Dehua Investment Co ., Ltd .

2019/3/31 2,985 .42 81 .79 Cash 2019/3/31Registration for change at the administration for industry and commerce completed

-0 .46



(2) Merging cost and goodwillUnit: Ten thousand Yuan, Currency: CNY

Merging costI.C.F. &

Welko S.p.A.Foshan Dehua

Investment Co., Ltd.

—Cash 12,788 .33 2,985 .42

—Fair value of non-cash assets

—Fair value of debts issued or undertaken

—Fair value of equity securities issued

—Fair value of contingent consideration

—Fair value of equity held before the acquisition date on the acquisition date

—Others

Total of merging cost 12,788.33 2,985.42

Minus: Share of fair value of the net identifiable assets acquired 7,495 .72 2,985 .42

The amount of which the goodwill/merging cost is less than the share of fair value of the net identifiable assets acquired

5,292.61 -

(3) Identifiable assets and liabilities of the acquireeUnit: Ten thousand Yuan, Currency: CNY

I.C.F. & Welko S.p.A. Foshan Dehua Investment Co., Ltd.Fair value on the acquisition date

Book value on the acquisition date

Fair value on the acquisition date

Book value on the acquisition date

Assets: 28,254.19 25,638.96 3,650.33 3,650.33

Monetary fund 5,038 .09 5,038 .09 4 .99 4 .99

Accounts receivable 12,030 .65 12,030 .65

Inventory 4,231 .92 4,231 .92

Other receivables 233 .08 233 .08

Other current assets 2,323 .87 2,323 .87 0 .26 0 .26

Other equity instrument investment

3,645 .08 3,645 .08

Fixed assets 4,187 .13 1,571 .90

Intangible assets 16 .67 16 .67

Deferred income tax assets 192 .78 192 .78

Liabilities: 15,761.33 15,031.68

Borrowings 7,173 .06 7,173 .06

Accounts payable 4,668 .70 4,668 .70

Deposit received 1,789 .82 1,789 .82

Payroll payable 703 .41 703 .41

Tax payable 696 .69 696 .69

Deferred income tax liabilities 729 .65

Net assets 12,492.86 10,607.28 3,650.33 3,650.33

Minus: Minority shareholders’ equity

4,997 .14 4,242 .91 664 .91 664 .91

Net assets acquired 7,495.72 6,364.37 2,985.42 2,985.42



2. Disposal of subsidiariesWhether there is a situation that single disposal of investment in subsidiaries leads to loss of controlling power

Unit: Ten thousand yuan Currency: CNY

Name of

Subsidiary

Equity

disposition

price

Proportion

of equity

disposition

(%)

Method

of equity

disposition

When to lose

control

Basis for

determining when

to lose control

The difference

between the

disposed price

and the net

asset share

enjoyed by the

subsidiary on

the consolidated

financial

statement

corresponding

to the disposed

investment

The

proportion

of

remaining

equity on

the date of

losing the

control (%)

The book

value of

remaining

equity

on the

date of

losing the

control

The fair

value of

remaining

equity

on the

date of

losing the

control

The

recalculation

of the profits

or losses

created

by the

remaining

equity

according to

the fair value

The

determination

methods

and main

assumptions

for the fair

value of the

remaining

equity on the

date of losing

control

The amount

caused by the

transfer-in of

the investment

profits

and losses

from other

comprehensive

income related

to the equity

investment of

the previous

subsidiary

Fujian Keda

Electric Power

Co ., Ltd .

643 .08 32 .00 Sell 2019-01-01

Agreement

combination

between the two

parties, collection,

and industrial and

commercial change

-0 .38 19 .00 382 .06 382 .06 — Net assets —

Maanshan KEDA

Jinxin Automobile

Maintenance

Service Co ., Ltd .

49 .00 70 .00 Sell 2019-11-30

Agreement

combination

between the two

parties, collection,

and industrial and

commercial change

-7 .56 30 .00 24 .24 21 .00 -3 .24Transaction

price —

3. Change of merging scope by other causesDescribe changes of merging scope by other causes (such as: newly established subsidiaries and liquidating

subsidiaries) and related conditions .

Name Acquired via

Sixian KEDA New Energy Technology Co ., Ltd . Newly-established

Foshan KEDA Trade Co ., Ltd Newly-established

Keda International Company S .a .r .l . Newly-established

Keda Europe S .r .l . Newly-established

Guangdong KEDA Smart Energy Technology Co ., Ltd Newly-established

Maanshan Kehan New Energy Technology Co ., Ltd Newly-established

Anhui Keqing Environmental Engineering Co ., Ltd . Newly-established

VII. Equities in other entities1. Equity in subsidiaries(1) Composition of enterprise group

Subsidiary Name Principal place of business Location of registrationBusiness

nature

Shareholding ratio

(%) Acquired Mode

Direct Indirect

KEDA (Anhui) Industrial Co ., Ltd .Maanshan Economic and Technological

Development Zone, Anhui Province

Maanshan Economic and Technological


Manufacturing

industry100 .00 Established

Anhui Keda New Materials Co ., Ltd .Dangtu Economic Development Zone,

Maanshan City, Anhui Province

Dangtu Economic Development Zone,


Manufacturing


Zhangzhou Juming Graphite Material Co .,

Ltd .

Chuanchang Town, Nanjing County,

Fujian Province

Chuanchang Town, Nanjing County,

Fujian Province

Manufacturing

industry100 .00

Merging under

different controls

Fujian Kehua Graphite Technology Co .,

Ltd .

Luofeng Industrial Park, Taihua Town,

Datian County, Sanming City, Fujian

Province

Luofeng Industrial Park, Taihua Town,

Datian County, Sanming City, Fujian

Province

Manufacturing


Anhui KEDA Purui Energy Technology

Co ., Ltd





Manufacturing

industry51 .00

Merging under

different controls




nature

Shareholding ratio

(%) Acquired Mode

Direct Indirect

Maanshan KEDA Purui Energy

Technology Co ., Ltd .





Manufacturing

industry51 .00

Merging under

different controls

Suqian Weidao New Energy Technology

Co ., Ltd .Siyang East Development Zone Siyang East Development Zone

Manufacturing

industry70 .00

Merging under

different controls

Sichuan KEDA Clean Energy New

Material Co ., Ltd .

Chengdu High-tech Zone of China

(Sichuan) Free Trade Pilot Zone

Chengdu High-tech Zone of China

(Sichuan) Free Trade Pilot Zone

Manufacturing


KEDA (Anhui) New Energy Automobile

Sales Co ., Ltd .





Business service


KEDA (Anhui)Huadong New Energy

Automobile Travel Service Co ., Ltd .





Business service


Anhui KEDA Yuli Automobile Technology

Co ., Ltd .





Business service


Anhui KEDA Electricity Co ., Ltd .Maanshan Economic and Technological




Business service


Jiangsu KEDA Electric Power Co ., Ltd .Jiangning District, Nanjing City, Jiangsu

Province

Jiangning District, Nanjing City, Jiangsu

Province

Business service


Changzhou KEDA Electricity Co ., Ltd .Changzhou Zhonglou Economic

Development Zone

Changzhou Zhonglou Economic

Development Zone

Business service


Anhui KEDA Keneng Electricity Co ., Ltd .Xuanzhou District, Xuancheng City,

Anhui Province

Xuanzhou District, Xuancheng City,

Anhui Province

Business service


Anhui Huaxin Power Engineering Co .,

Ltd .





Business service

industry80 .00

Merging under

different controls

Sixian KEDA New Energy Technology

Co ., Ltd .SiXian, Suzhou City, Anhui Province SiXian, Suzhou City, Anhui Province

Manufacturing


Maanshan Kehan New Energy

Technology Co ., Ltd

Hanshan Industrial Park, Lintou Town,

Hanshan County, Maanshan City, Anhui

Province

Hanshan Industrial Park, Lintou Town,

Hanshan County, Maanshan City, Anhui

Province

Business service


Wuhu KEDA Suremaker Co ., Ltd .Wuhu Machinery Industrial Park of Anhui

Province

Wuhu Machinery Industrial Park of Anhui

Province

Manufacturing

industry100 .00

Merging under

different controls

KEDA (Shenyang) Clean Energy Gas Co .,

Ltd .

Liaoning Faku Economic Development

Zone

Liaoning Faku Economic Development

Zone

Manufacturing


Guangdong KEDA Smart Energy

Technology Co ., LtdShunde District, Foshan City Shunde District, Foshan City

Business service


KEDA (Anhui) Clean Energy Co ., Ltd .Maanshan Economic and Technological




Manufacturing


Foshan KEDA Hydraulic Machinery

Co .,Ltd .Shunde District, Foshan City Shunde District, Foshan City

Manufacturing


Foshan Henglitai Machinery Co ., Ltd .Sanshui Central Science Technology

Park of Foshan City

Sanshui Central Science Technology

Park of Foshan City

Manufacturing

industry100 .00

Merging under

different controls

Foshan DLT Technology Co ., Ltd .Sanshui Central Science Technology

Park of Foshan City

Sanshui Central Science Technology

Park of Foshan City

Manufacturing


Foshan Zhuolitai Machinery Co ., Ltd . Sanshui District, Foshan City Sanshui District, Foshan CityManufacturing

industry100 .00

Merging under

different controls

Anhui Xincheng Investment Co ., Ltd .Maanshan Economic and Technological

Development Zone


Development Zone

Business service


Changsha Aer Compressor Co ., Ltd .Changsha Economic and Technological

Development Zone, Hunan Province

Changsha Economic and Technological

Development Zone, Hunan Province

Manufacturing

industry100 .00

Merging under

different controls

Henan KDNEU International Engineering

Co ., Ltd .

Commercial Outer Ring Road,

Zhengzhou Area (Zhengdong) of Henan

Pilot Free Trade Zone


Zhengzhou Area (Zhengdong) of Henan

Pilot Free Trade Zone

Manufacturing

industry100 .00

Merging under

different controls

Henan Tailong Metallurgy Technology

Co ., Ltd .Xiaoyao Town, Xihua County Xiaoyao Town, Xihua County

Manufacturing

industry100 .00

Merging under

different controls



Environmental Protection Industry Park,

Yancheng, Jiangsu

Environmental Protection Industry Park,

Yancheng, Jiangsu

Manufacturing

industry67 .92

Merging under

different controls

Ningxia Kehang Environmental Protection

Engineering Co ., Ltd .Pingluo, Ningxia Pingluo, Ningxia

Manufacturing

industry100 .00

Merging under

different controls

Anhui Keqing Environmental Engineering

Co ., Ltd .


Development Zone


Development Zone

Business service





nature

Shareholding ratio

(%) Acquired Mode

Direct Indirect

Foshan KEDA Ceramic Technology Co .,

Ltd .Shunde District, Foshan City Shunde District, Foshan City

Manufacturing


Qinghai Weili New Energy Material Co .,

Ltd .

Dongchuan Industrial Zone, Xining,

Qinghai Province

Dongchuan Industrial Zone, Xining,

Qinghai Province

Manufacturing

industry53 .62

Merging under

different controls

Qinghai KEDA Lithium Industry Co ., Ltd .Xining Economic and Technological

Development Zone

Xining Economic and Technological

Development Zone

Manufacturing

industry100 .00

Merging under

different controls

Guangdong Shunde KEDA Clean Energy

Co ., Ltd .Shunde District, Foshan City Shunde District, Foshan City

Manufacturing


Foshan KEDA Trade Co ., Ltd Shunde District, Foshan City Shunde District, Foshan CityImport and

export trade100 .00 Established

Foshan Dehua Investment Co ., Ltd . Nanhai District, Foshan City Nanhai District, Foshan CityBusiness service

industry81 .79

Merging under

different controls

KEDA Industrial (Hong Kong) Co ., Ltd . Hong Kong Hong KongImport and


Kami Colourcera Private Limited India IndiaManufacturing


Keda Industrial(India) Limited India IndiaManufacturing


Keda Turkey Makine Ticaret Limited Sirketi Turkey TurkeyImport and


Keda International Company S .a .r .l . Luxembourg LuxembourgBusiness service


Keda Europe S .r .l . Italy ItalyBusiness service


I .C .F . & Welko S .p .A . Italy ItalyManufacturing

industry60 .00

Merging under

different controls

Wibe S .L . Spain SpainManufacturing

industry100 .00

Merging under

different controls

Xincheng International (Hong Kong) Co .,

Ltd .Hong Kong Hong Kong

Import and


Guangdong Xincheng Financial And

Leasing Co ., Ltd .Shunde District, Foshan City Shunde District, Foshan City

Business service


Anhui Xincheng FinancialAnd Leasing

Co ., Ltd .





Business service


Keda Holding (Mauritius) Limited Mauritius MauritiusBusiness service


Brightstar Investment Limited Mauritius MauritiusBusiness service

industry51 .00

Merging under

different controls

Keda (Kenya) Ceramics Company Limited Kenya KenyaManufacturing

industry51 .00

Merging under

different controls

Keda (Ghana) Ceramics Company Limited Ghana GhanaManufacturing

industry51 .00

Merging under

different controls

Keda (Tanzania) Ceramics Company

LimitedTanzania Tanzania

Manufacturing

industry51 .00

Merging under

different controls

Twyford (SN) Ceramics Limited Senegal SenegalManufacturing


Keda Zambia Ceramics Company Limited Zambia ZambiaManufacturing




(2) Significant non-fully-owned subsidiariesUnit: Ten thousand yuan Currency: CNY

Name of Subsidiary

Shareholding ratio of

minority shareholders

Profits and losses attributed

to minority shareholders

this period

Dividend declared and issued to minority

shareholders in this period

Balance of minority

shareholders’ equity at the end

of the period

Keda (Kenya) Ceramics Company Limited

49 .00% 3,985 .93 1,586 .42 14,485 .33

Keda (Ghana) Ceramics Company Limited

49 .00% 3,880 .54 9,615 .65

(3) Main financial information of significant and non-fully-owned subsidiariesUnit: Ten thousand yuan Currency: CNY

Name of

Subsidiary


Current

assets

Non-current

assets

Total

assets

Current

liabilities

Non-current

liabilities

Total

liabilities

Current

assets

Non-current

assets

Total

assets

Current

liabilities

Non-current

liabilities

Total

liabilities

Keda (Kenya)

Ceramics

Company

Limited

24,884 .92 25,684 .16 50,569 .08 21,007 .18 - 21,007 .18 22,750 .85 27,878 .59 50,629 .44 33,085 .74 10,636 .51 43,722 .25

Keda (Ghana)

Ceramics

Company

Limited

17,761 .33 26,638 .80 44,400 .13 18,394 .09 6,382 .26 24,776 .35 9,309 .21 16,967 .41 26,276 .62 10,800 .60 9,648 .55 20,449 .15

Name of Subsidiary

Amount occurred this period Amount occurred last period

Operating

revenueNet profit

Total

amount of

earnings

Cash

flow of

operating

activities

Operating

revenueNet profit

Total

amount of

earnings

Cash

flow of

operating

activities

Keda (Kenya)

Ceramics Company

Limited

45,035 .28 8,134 .54 8,134 .54 10,076 .39 33,733 .39 5,421 .22 5,421 .22 9,588 .67

Keda (Ghana)

Ceramics Company

Limited

29,542 .98 7,919 .47 7,919 .47 -1,341 .11 25,668 .87 7,857 .26 7,857 .26 5,178 .73

2. Transactions in which the share of owner’s equity in a subsidiary changes and the subsidiary is still under control

(1) Description of the change of the owner’s equity share in the subsidiary① From April to October 2019, the subsidiary Henglitai Company invested CNY 12 .50 million yuan to purchase

18 .48% equity of Zhuolitai held by minority shareholders .After the completion of the purchasing, the proportion of shares held by the subsidiary Henglitai in Zhuolitai changed from 81 .52% to 100 .00%

② From May to June 2019, the Company acquired 49% of the shares in Ceramic Technology held by Cai Weiyong and others for CNY 7 .822 million yuan . After the completion of the equity transfer, the proportion of shares held by the Company in Ceramic Technology changed from 51 .00% to 100 .00%

③ In September 2019, the subsidiary KEDA Hong Kong acquired 21% of the shares in KEDA KAMI held by minority shareholders for USD8,643 .00 . After the completion of the equity transfer, the proportion of shares held by the subsidiary KEDA Hong Kong in KAMI changed from 51 .00% to 72 .00%

④ In September 2019, the subsidiary Jiangsu Kehang transferred 22% equity of Jiangsu Electric Power Company for CNY 10 .3656 million yuan . After the completion of the equity transfer, the proportion of shares held by the Company in Ceramic Technology changed from 73 .00% to 51 .00%



⑤ In December 2019, the subsidiary KEDA Electricity invested CNY 5 .0217 million yuan to purchase a minority shareholding of 24 .00% held by minority shareholders in Keneng Electricity . After the completion of the equity transfer, the proportion of shares held by the subsidiary KEDA Electricity in Keneng Electricity changed from 76 .00% to 100 .00%

(2) Influences of transactions on minority shareholders’ equity and owners’ equity attributable to the parent companyUnit: Ten thousand yuan Currency: CNY

Foshan Zhuolitai

Machinery Co., Ltd.

Foshan KEDA

Ceramic Technology

Co., Ltd.

Kami Colourcera

Private Limited

Anhui KEDA Keneng

Electricity Selling

Co., Ltd.

Jiangsu KEDA

Electric Power

Co., Ltd.

Purchase cost/disposal consideration 1,250 .00 782 .20 6 .11 502 .71 1,036 .56

– Cash 1,250 .00 782 .20 6 .11 502 .71 1,036 .56

– Fair value of non-cash assets

Purchase cost/disposal consideration in total

1,250.00 782.20 6.11 502.71 1,036.56

Minus: Share of net assets of subsidiaries calculated according to the proportion of equity acquired/ disposed of

1,168 .76 942 .37 15 .56 516 .76 1,042 .60

Difference 81 .24 -160 .17 -9 .45 -14 .05 -6 .04

Wherein: Adjustment of public reserve fund -81 .24 160 .17 9 .45 14 .05 -6 .04

Adjustment of surplus reserve

Adjustment of undistributed profit

3. Equity in joint venture or cooperative enterprise(1) Significant joint ventures or cooperative enterprises

Currency: CNY Unit: Yuan

Name of joint venture or cooperative

enterprise

Principal place

of business

Location of

registration

Business

nature

Shareholding ratio

(%)

Accounting process of

investment for joint venture

or cooperative enterpriseDirect Indirect

Qinghai Salt Lake Fozhao Lanke Lithium

Industry Co ., Ltd .Golmud, Qinghai

Golmud,

Qinghai

Manufacturing

industry43 .58 Equity law

A statement that the shareholding ratio of joint ventures or cooperative enterprises differs from that of the voting right:

The Company holds 100% equity in Qinghai KEDA Lithium Industry and 37 .8% equity in Lanke Lithium Industry through it; the Company holds 53 .62% equity in Qinghai Weili Industry and 10 .78% equity in Lanke Lithium Industry through it . Therefore, the Company has 48 .58% of the voting rights of Lanke Lithium, and indirectly holds 43 .58% of the shares of Lanke Lithium .

(2) Main financial information of important cooperative enterpriseUnit: Ten thousand Yuan, Currency: CNY

Closing balance/Amount this period Opening balance/Amount last period

Qinghai Salt Lake

Fozhao Lanke

Lithium Industry

Co., Ltd.

Qinghai Salt Lake

Fozhao Lanke

Lithium Industry

Co., Ltd.

Qinghai Salt Lake

Fozhao Lanke

Lithium Industry

Co., Ltd.

Qinghai Salt Lake

Fozhao Lanke

Lithium Industry

Co., Ltd.

Current assets 50,460 .97 75,639 .83

Non-current assets 153,794 .56 123,297 .33

Total assets 204,255 .53 198,937 .16

Current liabilities 67,692 .45 60,061 .81

Non-current liabilities 14,778 .44 23,084 .44

Total liabilities 82,470 .89 83,146 .25



Closing balance/Amount this period Opening balance/Amount last period

Qinghai Salt Lake

Fozhao Lanke

Lithium Industry

Co., Ltd.

Qinghai Salt Lake

Fozhao Lanke

Lithium Industry

Co., Ltd.

Qinghai Salt Lake

Fozhao Lanke

Lithium Industry

Co., Ltd.

Qinghai Salt Lake

Fozhao Lanke

Lithium Industry

Co., Ltd.

Minority shareholders’ equity

Shareholders’ equity attributable to

the parent company

Net assets computed in accordance with

the shareholding ratios53,073 .75 50,461 .68

Adjustments 58,456 .15 58,156 .47

—Goodwill 52,366 .92 52,366 .92

—Profits not realized in internal transactions

—Others 6,089 .23 5,789 .55

Book value of the investment for cooperative

enterprise111,529 .90 108,618 .15

Fair value of equity investment in cooperative

enterprise with public offer

Operating revenue 49,894 .61 69,386 .44

Net profit 5,658 .37 24,723 .02

Net profit of business termination


Total amount of earnings 5,658 .37 24,723 .02

Dividend received from cooperative enterprises

this year

VIII. Related parties and related transactions1. Subsidiaries of the CompanySee the notes for details of the Company’s subsidiaries


Full name of subsidiaryEnterprise

typeLocation of registration

Legal

representative

Business

nature

Registered

capital

Shareholding

ratio (%)

Proportion

of voting

rights (%)

Unified Social Credit

Code

KEDA Industrial (Anhui)

Co ., Ltd .

Company

limited

Maanshan Economic and

Technological Development

Zone, Anhui Province

Zhou PengManufacturing

industry80,000 .00 100 .00 100 .00 9134050067589409XX

Keda (Anhui) New

Materials Co ., Ltd .

Company

limited

Dangtu Economic Development

Zone, Maanshan City, Anhui

Province

Zhu YafengManufacturing

industry15,000 .00 100 .00 100 .00 91340521355187820D

Zhangzhou Grande

Graphite Material Co ., Ltd .

Company

limited

Chuanchang Town, Nanjing

County, Fujian ProvinceZhang Junjun

Manufacturing

industry5,000 .00 100 .00 100 .00 91350627717396444C

Fujian Kehua Graphite


Company

limited

Luofeng Industrial Park, Taihua

Town, Datian County, Sanming

City, Fujian Province

Wu LeyunManufacturing

industry10,000 .00 60 .00 60 .00 91350425MA2YNNXG0K

Anhui KEDA Purui Energy

Technology Co ., Ltd

Company

limited



Province


industry800 .00 51 .00 51 .00 91340521MA2N1EB218

Maanshan KEDA Purui

Energy Technology Co .,

Ltd .

Company

limited



Province


industry81 .63 51 .00 51 .00 91340521MA2RJLKP8P

Suqian Weidao New


Ltd .

Company

limitedSiyang East Development Zone Shen Wei

Manufacturing

industry1,000 .00 70 .00 70 .00 91321323MA1MXT1G5P

KEDA (Sichuan) New


Company

limited

Chengdu High-tech Zone of

China (Sichuan) Free Trade Pilot

Zone


industry5,000 .00 100 .00 100 .00 91510100MA6AFBR19Y

KEDA (Anhui) New Energy

Automobile Sales Co ., Ltd .

Company

limited




Zhang Feng

Business

service

industry

1,000 .00 100 .00 100 .00 91340500MA2MTEPE07





Legal

representative

Business

nature

Registered

capital

Shareholding

ratio (%)

Proportion

of voting

rights (%)


Code

KEDA (Anhui)Huadong

New Energy Automobile

Travel Service Co ., Ltd .

Company

limited




Zhu Hongjun

Business

service

industry

1,000 .00 51 .00 51 .00 91340500MA2MUTTP26

Anhui KEDA Yuli

Automobile Technology

Co ., Ltd .

Company

limited




Zhang Feng

Business

service

industry

1,000 .00 51 .00 51 .00 91340500MA2T7RCY3U

Anhui KEDA Electricity

Co ., Ltd .

Company

limited




Zhang Feng

Business

service

industry

20,001 .00 53 .00 53 .00 91340500MA2MT7G34X

Jiangsu KEDA Electric

Power Co ., Ltd .

Company

limited

Jiangning District, Nanjing City,

Jiangsu ProvinceZhang Feng

Business

service

industry

20,100 .00 51 .00 51 .00 91320115MA1P1QC122

Changzhou KEDA

Electricity Co ., Ltd .

Company

limited

Changzhou Zhonglou Economic

Development ZoneLiang Yaoxing

Business

service

industry

100 .00 54 .00 54 .00 91320411MA1R8ME22R

Anhui KEDA Keneng

Electricity Co ., Ltd .

Company

limited

Xuanzhou District, Xuancheng

City, Anhui ProvinceZhang Feng

Business

service

industry

2,100 .00 100 .00 100 .00 91340100MA2MXP9E0B

Anhui Huaxin Power

Engineering Co ., Ltd .

Company

limited




Zhang Feng

Business

service

industry

3,000 .00 80 .00 80 .00 91340500066503989D

Sixian KEDA New Energy


Company

limited

SiXian, Suzhou City, Anhui

ProvinceYan Jin

Manufacturing

industry1,000 .00 100 .00 100 .00 91341324MA2TGB741R

Maanshan Kehan New


Ltd

Company

limited

Hanshan Industrial Park,

Lintou Town, Hanshan County,


Li Quan

Business

service

industry

2,000 .00 60 .00 60 .00 91341202MA2NR4H91F

Wuhu KEDA Suremaker

Co ., Ltd .

Company

limited

Wuhu Machinery Industrial Park

of Anhui ProvinceChen Xinjiang

Manufacturing

industry5,000 .00 100 .00 100 .00 9134022166624276X0


Energy Gas Co ., Ltd .

Company

limited

Liaoning Faku Economic

Development ZoneMa Liang

Manufacturing

industry40,000 .00 82 .50 82 .50 91210124550792268N

Guangdong KEDA Smart


Ltd

Company

limitedShunde District, Foshan City Zhang Feng

Business

service

industry

20,001 .00 51 .00 51 .00 91440606MA53N01N91

Anhui KEDA Clean Energy

Co ., Ltd .

Joint-stock

company




Chen XinjiangManufacturing

industry4,460 .00 97 .37 97 .37 91340500661503967A

Foshan KEDA Hydraulic

Machinery Co .,Ltd .

Company

limitedShunde District, Foshan City Yang Jun

Manufacturing

industry3,850 .00 54 .85 54 .85 91440606568290581X

Foshan Henglitai

Machinery Co ., Ltd .

Company

limited

Sanshui Central Science

Technology Park of Foshan CityYang Xuexian

Manufacturing

industry14,060 .00 100 .00 100 .00 91440600712393666R

Foshan DLT Technology

Co ., Limited

Company

limited

Sanshui Central Science

Technology Park of Foshan CityChen Tian

Manufacturing

industry10,000 .00 100 .00 100 .00 91440607MA4UNRGA45

Foshan Zhuolitai


Company

limitedSanshui District, Foshan City Hu Jianguo

Manufacturing

industry396 .00 100 .00 100 .00 91440607664966596M

Anhui Xincheng Investment

Co ., Ltd .

Company

limited



Zone

Zhou Peng

Business

service

industry

25,000 .00 100 .00 100 .00 913405006986740300

Changsha Aer

Compressor Co ., Ltd .

Company

limited

Changsha Economic and


Zone, Hunan Province

Zeng FeiManufacturing

industry2,608 .00 100 .00 100 .00 91430100755827962Y

Henan KDNEU

International Engineering

Co ., Ltd .

Company

limited


Zhengzhou Area (Zhengdong) of

Henan Pilot Free Trade Zone

Zhao PengxiManufacturing

industry5,000 .00 100 .00 100 .00 914101007067856557

Henan Tailong Metallurgy


Company

limitedXiaoyao Town, Xihua County Zhao Pengxi

Manufacturing

industry1,359 .30 100 .00 100 .00 91411622661884077W

Jiangsu Kehang

Environmental Protection


Company

limited by

shares


Industry Park, Yancheng,

Jiangsu

Long YuzhouManufacturing

industry14,356 .36 67 .92 67 .92 913209026086112210

Ningxia Kehang


Engineering Co ., Ltd .

Company

limitedPingluo, Ningxia Yu Jinwang

Manufacturing

industry5,000 .00 100 .00 100 .00 91640221574868431X





Legal

representative

Business

nature

Registered

capital

Shareholding

ratio (%)

Proportion

of voting

rights (%)


Code

Anhui Keqing

Environmental Engineering

Co ., Ltd .

Company

limited



Zone

Long Yuzhou

Business

service

industry

5,000 .00 100 .00 100 .00 91340500MA2TN7CAXR

Foshan KEDA Ceramic


Company

limitedShunde District, Foshan City Chen Shuifu

Manufacturing

industry2,000 .00 100 .00 100 .00 91440606MA4UUWAC43

Qinghai Weili New Energy


Company

limited

Dongchuan Industrial Zone,

Xining, Qinghai ProvinceZhu Yafeng

Manufacturing

industry2,000 .00 53 .62 53 .62 91632900679184650E

Qinghai KEDA Lithium

Industry Co ., Ltd .

Company

limited

Xining Economic and


Zone


industry77,000 .00 100 .00 100 .00 916300006791880023

Guangdong Shunde KEDA

Clean Energy Co ., Ltd .

Company

limitedShunde District, Foshan City Chen Shuifu

Manufacturing

industry18,334 .00 100 .00 100 .00 91440606MA51BFQE8A

Foshan KEDA Trade

Co ., Ltd

Company

limitedShunde District, Foshan City Jason Zhong

Import and

export trade500 .00 100 .00 100 .00 91440606MA534JQK1E

Foshan Dehua Investment

Co ., Ltd .

Company

limitedNanhai District, Foshan City Zhang Yanggen

Business

service

industry

100 .00 81 .79 81 .79 91440605553665897A

Unit: Ten thousand Currency: USD

Full name of subsidiary Enterprise typeLocation of

registration

Legal

representative

Business

nature

Registered

capital

Shareholding

ratio (%)

Proportion

of voting

rights (%)

KEDA Industrial (Hong Kong) Co ., Ltd . Company limited Hong Kong Jason ZhongImport and

export trade1,381 .60 100 .00 100 .00

Xincheng International (Hong Kong) Co ., Limited Company limited Hong Kong Jason ZhongImport and

export trade2,000 .00 100 .00 100 .00

Guangdong Xincheng Financial And Leasing

Co ., Ltd .Company limited

Shunde District,

Foshan CityWang Gang

Business

service industry2,700 .00 100 .00 100 .00

Anhui Xincheng FinancialAnd Leasing Co ., Ltd . Company limited

Maanshan

Economic and

Technological

Development Zone

Wang GangBusiness


Keda Holding (Mauritius) Limited Company limited Mauritius Jason ZhongBusiness


Brightstar Investment Limited Company limited Mauritius /Business

service industry 4,030 .00 51 .00 51 .00

Keda (Kenya) Ceramics Company Limited Company limited Kenya /Manufacturing

industry100 .00 51 .00 51 .00

Keda (Ghana) Ceramics Company Limited Company limited Ghana /Manufacturing

industry100 .00 51 .00 51 .00

Keda (Tanzania) Ceramics Company Limited Company limited Tanzania /Manufacturing

industry100 .00 51 .00 51 .00

Twyford (SN) Ceramics Limited Company limited Senegal /Manufacturing

industry100 .00 51 .00 51 .00

Kami Colourcera Private Limited Company limited IndiaSAMEER

DIGGIKER

Manufacturing

industry4 .00 72 .00 72 .00

Unit: Ten thousand Currency: EUR


registration

Legal

representative

Business

nature

Registered

capital

Shareholding

ratio (%)

Proportion

of voting

rights (%)

Keda International Company S .a .r .l . Company limited Luxembourg Liu XiaodongBusiness

service industry 1 .20 100 .00 100 .00

Keda Europe S .r .l . Company limited Italy Jason ZhongBusiness

service industry 25 .00 100 .00 100 .00

I .C .F . & Welko S .p .A . Company limited Italy Jason ZhongManufacturing

industry 400 .00 60 .00 60 .00

Wibe S .L . Company limited Spain Zheng JiangManufacturing

industry 120 .00 100 .00 100 .00



Unit: Ten thousand Currency: Rupee


registration

Legal

representative

Business

nature

Registered

capital

Shareholding

ratio (%)

Proportion

of voting

rights (%)

Keda Industrial(India) Limited Company limited India Zou WeiyiManufacturing

industry6,500 .00 90 .00 90 .00

Unit: Ten thousand Currency: Kwacha


registration

Legal

representative

Business

nature

Registered

capital

Shareholding

ratio (%)

Proportion

of voting

rights (%)

Keda Zambia Ceramics Company Limited Company limited Zambia /Manufacturing

industry1 .5 51 .00 51 .00

Unit: Ten thousand Currency: Turkish Lira


registration

Legal

representative

Business

nature

Registered

capital

Shareholding

ratio (%)

Proportion

of voting

rights (%)

Keda Turkey Makine Ticaret Limited Sirketi Company limited Turkey Zeng FeiImport and

export trade30 .00 100 .00 100 .00

2. Details of joint venture and cooperative enterprise of the enterpiseRefer to annotation on key joint venture or cooperative enterprise of the enterprise .

Unit: Ten thousand Yuan Currency: CNY

Invested partyEnterprise

type

Location of

registration

Legal

representative

Business

nature

Registered

capital

Shareholding

ratio of the

enterprise

(%)

Voting

share ratio

of the

enterprise

at the

invested

party (%)


Code


Anhui Hudu KEDA Fluid


Company

limited

Maanshan

Economic and

Technological

Development Zone,

Anhui Province

Hou AnpingManufacturing

industry3,000 .00 49 .00 49 .00 913405000948292819

Jiangsu Zhongchuang

Qingyuan Technology

Co ., Ltd .

Company

limited

Yancheng City,

Jiangsu ProvinceLi Bing

Manufacturing

industry2,600 .00 30 .00 30 .00 91320902MA1T55U237

Sichuan Guangxing

Lithium Battery


Company

limited

Aba Prefecture,

Sichuan ProvinceFeng Yu

Manufacturing

industry5,000 .00 20 .00 20 .00 915132003145597129

Qinghai Salt Lake

Fozhao Lanke Lithium

Industry Co ., Ltd .

Company

limitedGolmud, Qinghai He Yongping

Manufacturing

industry34,332 .27 43 .58 48 .58 91630000781439859F

Maanshan Qingshan

Electricity Selling Co .,

Ltd .

Company

limited

Dangtu Economic

and Technological

Development Zone,

Anhui Province

Wu Qianbin

Business

service

industry

1,960 .00 26 .02 26 .02 91340521MA2RU8N74T

Dongguan KEDA

Weifu New Energy


Company

limited

Liaobu Town,

Dongguan CityHu Lijuan

Manufacturing

industry300 .00 35 .00 35 .00 91441900MA4W6BAQ2K

Anhui Ganghua KEDA

Smart Energy Co ., Ltd .

Company

limited

Maanshan

Economic and

Technological

Development Zone,

Anhui Province

Qiu Jianhang

Business

service

industry

20,001 .00 40 .00 40 .00 91340500MA2U6ERHX4

Maanshan KEDA

Jinxin Automobile

Maintenance Service

Co ., Ltd .

Company

limited

Maanshan

Economic and

Technological

Development Zone,

Anhui Province

Wang Zhi

Business

service

industry

200 .00 30 .00 30 .00 91340500343923587M



3. Other related parties

Name of other related parties Relation between other related parties and the enterprise

Guangzhou Sunda International Trade Co ., Ltd . Others

Additional description

Whereas Mr . Shen Yanchang, director of the Company, is the actual controller of Guangzhou Sunda International Trade Co ., Ltd .,

and Guangzhou Sunda Trade Co ., Limited . is an important strategic partner of the Company’s overseas building ceramics business,

and a minority shareholder of the Company’s African joint ventures Keda Kenya, Keda Ghana, Keda Tanzania and Twyford Senegal,

according to Article 4 of the Accounting Standards for Business Enterprises No . 36-Disclosure of related parties, Guangzhou Sunda and

its wholly-owned subsidiaries are recognized as related parties of the Company .

IX. Post balance sheet events1. Description of other post balance sheet events1 . The Company and Sunda Group Co ., Limited . (hereinafter referred to as “Sunda Group”) intend to make an

additional investment of US $17 million in the cooperative Zambia building ceramics production project, among which, shareholders invest US $6 .8 million with their own funds, and KEDA Clean Energy invests US $3 .468 million through its wholly-owned subsidiary Keda Holding according to 51% shareholding ratio . See the Company’s relevant announcement for details .

2 . In order to optimize the management system of the group, the Company and Sunda Group plan to adjust the equity structure of the African joint venture, increase the capital of the newly established joint venture Tilemaster and transfer the relevant equity with the equity and creditor’s rights of the African joint venture held respectively . After the completion of this equity change, the proportion of equity held by KEDA Clean Energy and Sunda Group to the African joint venture remains unchanged . Among them, KEDA Clean Energy holds 51% of Tilemaster’s equity through its wholly-owned subsidiary Keda Holding, thus indirectly holding 51% of the equity of each joint venture . See the Company’s relevant announcement for details .

3 . The Company convened the board of directors and the shareholders’ conference on April 10, 2019, and May 6, 2019 to consider and approve the relevant proposals on the non-public offering of shares . On February 24, 2020, the Company received the “Reply on Approving the Non-Public Issuance of Shares of KEDA Clean Energy Co ., Ltd” (ZJXK [2020] No . 295) issued by CSRS, which approved the Company’s non-public offering of no more than 311,214,227 new sharesAt present, the Company’s non-public offering of shares has not yet started .

4 . Affected by COVID-19 coronavirus pandemic and related prevention and control measures, some upstream and downstream enterprises of the Company are delayed in returning to work, which has a certain adverse impact on the Company’s delivery, order, material supply and the Company’s operation . The Company has taken a number of measures to gradually restore production capacity and has been actively coordinating production, supply, logistics and other aspects, so as to reduce the impact .However, with the gradual upgrading of the development of the overseas pandemic, the Company’s overseas subsidiaries and export businesses may be adversely affected . The Company expects that the coronavirus pandemic and the prevention and control measures will have a temporary impact on the Company’s business performance, and the degree of impact depends on the development, duration of pandemic prevention and control and the implementation of prevention and control policies . The Company will continue to keep a close eye on the development trend of the coronavirus pandemic, strengthen assessment and actively respond to it, so as to reduce the impact to the lowest level .

X. Other key events1. Business termination


Subject Income Expenses Total profitIncome

tax costsNet profit

Business termination attributed to the owner of the parent company

Clean energy services - 1,235 .50 -1,190 .00 - -1,190 .00 -1,190 .00



XI. Note to main items of financial statements of parent company1. Accounts receivable(1) Disclosure by aging




1 to 2 years 55,489,043 .11

2 to 3 years 13,962,165 .18

More than 3 years 7,673,914 .49

Total 808,943,802.31

(2) Classified disclosure by bad debt provision methodUnit: Yuan Currency: CNY

Category

Closing balance Opening BalanceBook balance Bad debt provision

Book value

Book balance Bad debt provision

Book valueAmount

Proportion (%)

AmountAccrual

ration (%)

AmountProportion

(%)Amount

Accrual ration

(%)

Provision for bad debts by single item

7,194,730 .01 0 .89 7,194,730 .01 100 .00 6,258,690 .73 0 .65 6,258,690 .73 100 .00

Where:Accounts receivable with significant single amount and separate provision for bad debtsAccounts receivable with insignificant single amount but separate provision for bad debts

7,194,730 .01 0 .89 7,194,730 .01 100 .00 6,258,690 .73 0 .65 6,258,690 .73 100 .00

Accrue bad debt provision according to combination

801,749,072 .30 99 .11 23,628,030 .53 2 .95 778,121,041 .77 947,978,004 .87 99 .35 18,185,412 .15 1 .92 929,792,592 .72

Where:Other receivables with bad debt provision made by portfolio with credit risk features

258,730,802 .68 31 .98 23,628,030 .53 9 .13 235,102,772 .15 389,190,178 .68 40 .79 18,185,412 .15 4 .67 371,004,766 .53

Payment for goods of subsidiaries

543,018,269 .62 67 .13 558,787,826 .19 58 .56 558,787,826 .19

Total 808,943,802.31 / 30,822,760.54 / 778,121,041.77 954,236,695.60 / 24,444,102.88 / 929,792,592.72

2. Other receivablesUnit: Yuan Currency: CNY


Interest receivable



Total 659,235,680.43 532,162,704.08

Disclosure by ageUnit: Yuan Currency: CNY


Within 1 year

Wherein: subitem within 1 year


1 to 2 years 452,707 .45

2 to 3 years 780,153 .64

More than 3 years 379,100 .00

3 to 4 years

4 to 5 years

More than 5 years

Total 878,023,076.78



3. Long-term equity investmentUnit: Yuan Currency: CNY

Subject



reservesBook value Book balance

Depreciation

reservesBook value

Investment in subsidiaries 5,109,014,402 .60 5,109,014,402 .60 4,786,711,256 .56 4,786,711,256 .56

Investment in joint venture

and cooperative enterprise26,857,645 .65 26,857,645 .65 27,372,011 .60 27,372,011 .60

Total 5,135,872,048.25 5,135,872,048.25 4,814,083,268.16 4,814,083,268.16

(1) Investment in subsidiariesUnit: Yuan Currency: CNY

Invested unit Opening BalanceIncrement this

period

Decrement

this periodClosing balance

Accrued

depreciation

reserve this

period

Closing

balance of

depreciation

reserve

KEDA Industrial (Hong Kong) Limited 92,285,408 .80 210,329,550 .00 302,614,958 .80

KEDA (Anhui) Industrial Co ., Ltd . 800,000,000 .00 800,000,000 .00

Anhui KEDAClean Energy Co ., Ltd . 624,323,378 .00 624,323,378 .00

Foshan KEDA Hydraulic Machinery Co ., Ltd . 26,906,891 .35 26,906,891 .35

Foshan Henglitai Machinery Co ., Ltd . 782,954,365 .00 15,000,000 .00 797,954,365 .00

Anhui Xincheng Investment Co ., Ltd . 265,954,830 .85 265,954,830 .85


Henan KDNEU International Engineering Co ., Ltd . 360,940,993 .00 360,940,993 .00

Jiangsu Kehang Environmental Protection Science


KEDA HOLDING (MAURITIUS) LIMITED 237,644,739 .87 84,151,596 .04 321,796,335 .91

Foshan Keda Ceramic Technology Co .,Ltd . 10,200,000 .00 7,822,000 .00 18,022,000 .00

Guangdong Shunde KEDA Clean Energy Co ., Ltd . 2,500,000 .00 2,500,000 .00

Qinghai Weili New Energy Material Co ., Ltd . 164,316,130 .72 164,316,130 .72

Qinghai KEDA Lithium Industry Co ., Ltd . 1,169,520,000 .00 1,169,520,000 .00

Foshan KEDA Trade Co ., Ltd 5,000,000 .00 5,000,000 .00

Total 4,786,711,256.56 322,303,146.04 5,109,014,402.60

Remarks: The Company’s new investment in KEDA Industrial (Hong Kong) Limited in the current period was mainly due to the

indirect purchase of 60% equity of Welko through its subsidiaries .



(2) Investment in joint venture and cooperative enterpriseUnit: Yuan Currency: CNY

Invested unitOpening

Balance

Change from increasing or decreasing during the period

Closing balance

Closing

balance of

depreciation

reserve

Investment

increased

Investment

decreased

Gains and losses

confirmed under

the equity law

Other

comprehensive

earning

adjustment

Other

equity

changes

Cash dividend

or profit

declared or

issued

Depreciation

reserve

accrued

Others


Sichuan Guangxing

Lithium Battery

Technology Co .,

Ltd .

16,709,976 .33 410,037 .25 1,000,000 .00 16,120,013 .58

Guangdong Taiwei

Digital Ceramic

Printing Co ., Ltd .

505,152 .65 505,152 .65

Anhui Hudu KEDA

Fluid Machinery

Co ., Ltd .

10,156,882 .62 580,749 .45 10,737,632 .07

Subtotal 27,372,011.60 505,152.65 990,786.70 1,000,000.00 26,857,645.65

Total 27,372,011.60 505,152.65 990,786.70 1,000,000.00 26,857,645.65

4. Operating income and operating expense(1) Operating income and operating expense


SubjectAmount occurred this period Amount occurred last period

Income Cost Income Cost

Main business 1,791,038,041 .72 1,462,749,024 .53 2,154,036,313 .78 1,809,796,799 .77

Other business 7,854,584 .77 3,435,353 .74 4,708,396 .73 3,304,863 .25

Total 1,798,892,626.49 1,466,184,378.27 2,158,744,710.51 1,813,101,663.02

5. Investment earningsUnit: Yuan Currency: CNY


this period

Amount occurred

last period

Earnings of long-term equity investment computed in accordance with the cost

method115,458,200 .00 271,133,000 .00

Earnings of long-term equity investment computed according to the equity method 990,786 .70 -1,571,692 .31

Earnings of investment from disposal of long-term equity investment -166,352 .65 348,141 .35

Investment income of financial assets measured with fair value and changes

accounted into current profits and losses during the holding period

Investment income from the disposal of financial assets measured with fair value and

changes accounted into current profits and losses

Investment income of held-to-maturity investment during the holding period

Investment income from disposal of held-to-maturity investment

Investment income of available-for-sale financial assets during the holding period

Investment income from disposal of available-for-sale financial assets

Investment income of trading financial assets during the holding period

Dividend income from other equity instrument investment during the holding period

Interest income from debt investment during the holding period

Interest income from other debt investment during the holding period

Investment income from disposal of trading financial assets

Investment income from disposal of other equity instrument investment

Investment income from disposal of debt investment

Investment income from disposal of other debt investment

Total 116,282,634.05 269,909,449.04




(1) Earnings of long-term equity investment computed according to the cost method:


this period

Amount occurred

last period

Foshan KEDA Hydraulic Machinery Co .,Ltd . 3,168,000 .00 1,133,000 .00

Foshan Henglitai Machinery Co ., Ltd . 50,000,000 .00 150,000,000 .00

Anhui Xincheng Investment Co ., Ltd . 50,000,000 .00

KEDA Industrial (Hong Kong) Limited 12,290,200 .00

Henan KDNEUInternational Engineering Co ., Ltd . 120,000,000 .00

Total 115,458,200.00 271,133,000.00

(2) Long-term equity investment earnings computed according to the equity law:



last period

Sichuan Guangxing Lithium Battery Technology Co ., Ltd . 410,037 .25 1,814,773 .54

Anhui Hudu KEDA Fluid Machinery Co ., Ltd . 580,749 .45 -3,386,465 .85

Total 990,786.70 -1,571,692.31

(3) Investment earnings from disposal of long-term equity investment:



last period

Guangdong Taiwei Digital Ceramic Printing Co ., Ltd . -166,352 .65

Foshan KEDA Hydraulic Machinery Co .,Ltd . 348,141 .35

Total -166,352.65 348,141.35

Chairman: Bian Cheng

Date of approval and submitted by the Board of Directors:April 29, 2020

KEDA CLEAN ENERGY CO., LTD.

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