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个股公告正文

特 力B:2016年年度报告(英文版)

日期:2017-04-08附件下载

                      深圳市特力(集团)股份有限公司 2016 年年度报告全文




SHENZHEN TELLUS HOLDING CO., LTD


         Annual Report 2016




             April 2017




                 1
                                               深圳市特力(集团)股份有限公司 2016 年年度报告全文




         Section I. Important Notice, Contents and Paraphrase

Board of Directors, Supervisory Committee, all directors, supervisors and senior
executives of Shenzhen Tellus Holding Co., Ltd. (hereinafter referred to as the
Company) hereby confirm that there are no any fictitious statements, misleading
statements, or important omissions carried in this report, and shall take all
responsibilities, individual and/or joint, for the reality, accuracy and completion
of the whole contents.
Lv Hang, Principal of the Company, Yang Jianping, person in charge of
accounting works and Liu Yuhong, person in charge of accounting organ
(accounting principal) hereby confirm that the Financial Report of 2016 Annual
Report is authentic, accurate and complete.
All directors are attended the Board Meeting for report deliberation.
China Securities Journal, Hong Kong Commercial Daily and Juchao Website
(www.cninfo.com.cn) are the media for information disclosure appointed by the
Company, all information under the name of the Company disclosed on the
above said media shall prevail. Concerning the forward-looking statements with
future planning involved in the Report, they do not constitute a substantial
commitment for investors, and investors are advised to exercise caution of
investment risks.
The Company has no plan of cash dividends carried out, bonus issued and
capitalizing of common reserves either.




                                          2
                                                                              深圳市特力(集团)股份有限公司 2016 年年度报告全文




                                                           Contents




Section I Important Notice, Contents and Paraphrase ................................................................. 2

Section II Company Profile and Main Finnaical Indexes ............................................................. 5

Section III Summary of Company Business ................................................................................ 11

Section IV Discussion and Analysis of the Operation                             ............................................................... 14

Section V Important Events .......................................................................................................... 34

Section VI Changes in shares and particular about shareholders............................................... 54

Section VII Preferred Stock……………………………………………………………………….61

Section VIII Particulars about Directors, Supervisors,Senior Executives and Employees ...... 62

Section IX Corporate Governance ................................................................................................. 69

Section X Corporate Bonds ............................................................................................................. 76

Section XI Financial Report ............................................................................................................ 87

Section XII Documents available for reference ........................................................................... 192




                                                                    3
                                                                         深圳市特力(集团)股份有限公司 2016 年年度报告全文




                                                     Paraphrase


                      Items                     Refers to                                Contents

CSRC                                            Refers to China Securities Regulatory Commission

SZ Exchange                                     Refers to Shenzhen Stock Exchange

                                                            Shenzhen Branch of China Securities Depository & Clearing
Shenzhen Branch of SD&C                         Refers to
                                                            Corporation Limited

Company, the Company, our Company, Tellus
                                                Refers to Shenzhen Tellus Holding Co., Ltd.
Group

Reporting period, this reporting period, this
                                                Refers to Year of 2016
year

Auto Industry and Trade Co.,                    Refers to Shenzhen Auto Industry and Trade Corporation

Zhongtian Company                               Refers to Shenzhen Zhongtian Industrial Co,. Ltd.

GAC                                             Refers to Gems & Jewelry Trade Association of China




                                                                4
                                                                            深圳市特力(集团)股份有限公司 2016 年年度报告全文




               Section II Company Profile and Main Finnaical Indexes

I. Company information

Short form of the stock        Tellus-A, Tellus-B                        Stock code                   000025, 200025

Stock exchange for listing     Shenzhen Stock Exchange

Name of the Company (in
                               深圳市特力(集团)股份有限公司
Chinese)

Short form of the Company
                               特力 A
(in Chinese)

Foreign name of the Company
                               Shenzhen Tellus Holding Co.,Ltd
(if applicable)

Legal representative           Lv Hang

Registrations add.             3/F, Tellus Building, Shui Bei Er Road, Luohu District, Shenzhen

Code for registrations add     518020

Offices add.                   15/F, CNNC Building, Shennan Middle Road, Futian District, Shenzhen

Codes for office add.          518031

Company’s Internet Web Site www.tellus.cn

E-mail                         ir@tellus.cn


II. Person/Way to contact

                                                        Secretary of the Board                     Rep. of security affairs

Name                                          Qi Peng                                   Sun Bolun

                                              15/F, CNNC Building, Shennan Middle       15/F, CNNC Building, Shennan Middle
Contact add.
                                              Road, Futian District, Shenzhen           Road, Futian District, Shenzhen

Tel.                                          (0755) 83989378                           (0755)83989339

Fax.                                          (0755)83989386                            (0755) 83989386

E-mail                                        ir@tellus.cn                              sunbl@tellus.cn


III. Information disclosure and preparation place

Newspaper appointed for information disclosure          Securities Times (Shenzhen) and Hong Kong Commercial Daily(H.K.)

Website for annual report publish appointed by CSRC http://www.cninfo.com.cn

Preparation place for annual report                     Secretariat of the Board of Directors of Shenzhen Tellus Holding Co., Ltd.




                                                                  5
                                                                           深圳市特力(集团)股份有限公司 2016 年年度报告全文


IV. Registration changes of the Company

Organization code                            19219221-0

                                             Before 26 May 1993, business scope of the Company: engaged in metal working
                                             machinery, general equipment, general component, abrasive tools, abrasive materials,
                                             instrument, micro motor, home appliances, electronic component, electronic device,
                                             electronic computer and accessories, auto parts, rubber products and construction
                                             materials. Self-operated products manufacture by the Company and owned enterprises
                                             such as self-used production raw materials, metal working machinery and general
                                             equipment; import & export of general component. Business scope of the Company
                                             changed dated 26 May 1993 as: engaged in metal working machinery, general
                                             equipment, general component, abrasive tools, abrasive materials, instrument, micro
                                             motor, home appliances, electronic component, electronic device, electronic computer
                                             and accessories, auto parts, rubber products, construction materials, metal materials,
                                             chemical materials and products, plastic products, hardware tools, warehousing &
                                             transportation and general equipment; self-operated products manufacture by the
                                             Company and owned enterprises such as self-used production raw materials and metal
                                             working machinery; import & export of general component; import and export
                                             business complies with the approval certificate (Shen Mao Guan Shen Zheng Zi
                                             No.098). Business scope of the Company changed dated 22 January 1997 as: develop
                                             enterprises (specific projects needs application); warehousing & transportation,
                                             processing on giving materials for machinery component and mechanic assembly.
                                             Domestic business and supply & marketing industry of materials (excluding
Changes of main business since listing (if
                                             monopolized commodity and commodity under special government control).
applicable)
                                             Self-operated products manufacture by the Company and owned enterprises such as
                                             self-used production raw materials and metal working machinery; import & export of
                                             general component; import and export business complies with the approval certificate
                                             (Shen Mao Guan Shen Zheng Zi No.098). Business scope of the Company changed
                                             dated 3 December 2009 as: develop enterprises (specific projects needs application);
                                             develop and operate the real estate business on the land with usage rights obtained
                                             legally; domestic business and supply & marketing industry of materials (excluding
                                             monopolized commodity and commodity under special government control); rental and
                                             management for self-owned property. Self-operated products manufacture by the
                                             Company and owned enterprises such as self-used production raw materials and metal
                                             working machinery; import & export of general component; import and export
                                             business complies with the approval certificate (Shen Mao Guan Shen Zheng Zi
                                             No.098). On 2 July 2014, business scope changed as: investment industrial projects
                                             (specific project shall be declared upon separately); domestic commerce, supply and
                                             marketing of material (monopolized commodities, commodity under special
                                             government control and licensed commodity excluded ;) self-owned property lease and
                                             management. Self-running the home-grown products of the Company and owned
                                             enterprise, personal productive material, metal working machinery, import and export
                                             business of the parts common; import and export are handle in line with the
                                             Accreditation Certificate of Foreign Trade: Shen Mao Guan Zheng Zi No. 098


                                                                  6
                                                                                    深圳市特力(集团)股份有限公司 2016 年年度报告全文


                                                   1. On 31 March 1997, the 159,588,000 state shares held by Shenzhen Investment
                                                   Management Co., Ltd., the only non-circulation shareholder, were transfer to SDG;
                                                   total share capital of the Company was 220,281,600 shares while 159,588,000 state
                                                   shares held by SDG, a 72.45% in total share capital. 2. On 4 January 2006, the
Previous        changes     for      controlling 13,717,440 shares, as the consideration of share merger reform, were transfer to
shareholders (if applicable)                       account of A-shareholders from SDG. After share merger reform, SDG holds 66.22%
                                                   of the total share capital of the Company. 3. On March 27, 2015, the Company has
                                                   completed the non-public offering of A shares of 77,000,000, of which 6,000,000
                                                   shares are issued to the controlling shareholder - SDG, and SDG holds 51.09% of the
                                                   Company's total shares after the issuance.


V. Other relevant information

CPA engaged by the Company



Name of CPA                                 Ruihua Certified Public Accountants (LLP)

                                            3-9/F, West Tower, China Oversea Property Plaza,7# Building, 8# Yard, Yongdingmen West
Offices add. for CPA
                                            Binhe Rd., Dongcheng District, Beijing

Signing Accountants                         Yuan Longping, Zhou Xuechun
Sponsor engaged by the Company for performing continuous supervision duties in reporting period

√Applicable □Not applicable

      Name of the sponsor               Offices add. for the sponsor     Name of sponsor representative Continuous supervision period

HUAXI Securities Co,. Ltd                                                Yu Chenguang, Huang Bin           Until 31 December 2016
Financial consultant engaged by the Company for performing continuous supervision duties in reporting period
□ Applicable     √ Not applicable


VI. Main accounting data and financial indexes

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


□ Yes √ No


                                                    2016                     2015            Changes over last year        2014

Operating income (RMB)                            324,240,841.90            303,726,790.57                   6.75%       464,987,527.80

Net     profit      attributable      to
shareholders       of     the      listed           27,193,562.63            42,768,789.52                 -36.42%         10,345,217.67
Company(RMB)

Net     profit      attributable      to
shareholders of the listed Company                  24,233,716.21            28,588,480.42                 -15.23%          8,775,007.16
after deducting non-recurring gains


                                                                        7
                                                                              深圳市特力(集团)股份有限公司 2016 年年度报告全文


and losses(RMB)

Net     cash       flow   arising    from
                                                57,874,934.32         80,682,627.33                    -28.27%        6,214,706.85
operating activities(RMB)

Basic       earnings       per       share
                                                        0.0915                 0.1538                  -40.51%               0.0470
(RMB/Share)

Diluted        earnings     per      share
                                                        0.0915                 0.1538                  -40.51%               0.0470
(RMB/Share)

Weighted average ROE                                    3.08%                  6.21%                     -3.13%              5.53%

                                                                                        Changes over end of
                                             End of 2016          End of 2015                                     End of 2014
                                                                                             last year

Total assets (RMB)                           1,189,001,074.98     1,168,667,927.49                       1.74%      806,324,777.80

Net       assets      attributable      to
shareholder of listed Company                 895,362,614.95         868,169,052.32                      3.13%      191,880,262.80
(RMB)


VII. Difference of the accounting data under accounting rules in and out of China

1. Difference of the net profit and net assets disclosed in financial report, under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)

□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either IAS (International
Accounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the period.


2. Difference of the net profit and net assets disclosed in financial report, under both foreign accounting
rules and Chinese GAAP (Generally Accepted Accounting Principles)

□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules or
Chinese GAAP (Generally Accepted Accounting Principles) in the period.


VIII. Quarterly main financial index

                                                                                                                             In RMB

                                                1st Q                 2nd Q                    3rd Q                 4th Q

Operating income                                79,720,863.02         77,426,303.46            83,602,167.07         83,491,508.35

Net       profit      attributable      to
                                                 6,162,157.52         11,585,795.11             8,467,387.22            978,222.78
shareholders of the listed Company

Net profit attributable to
shareholders of the listed Company               5,078,709.90         10,371,062.11             7,630,829.51          1,153,114.69
after deducting non-recurring gains


                                                                 8
                                                                              深圳市特力(集团)股份有限公司 2016 年年度报告全文


and losses

Net cash flow arising from
                                                     3,260,759.65        20,710,746.71       10,569,442.75          23,333,985.21
operating activities

Whether there are significant differences between the above-mentioned financial index or its total number and the relevant financial
index disclosed in the Company’s quarterly report and semi-annual report
□Yes   √ No


IX. Items and amounts of extraordinary profit (gains)/loss

√Applicable     □ Not applicable
                                                                                                                           In RMB

                        Item                               2016              2015             2014                  Note

Gains/losses         from   the     disposal   of
non-current asset (including the write-off                  -51,690.07         -34,345.09       148,486.49
that accrued for impairment of assets)

Governmental subsidy reckoned into current
gains/losses (not including the subsidy
enjoyed in quota or ration according to                                       371,850.00
national      standards,    which    are   closely
relevant to enterprise’s business)

Gains/losses from entrust investment or
                                                          3,916,317.84       5,740,301.35
assets management

Gains/losses from contingency without
                                                         -1,192,618.90         -61,965.00       438,195.19
routine business concerned

Held transaction financial asset, gains/losses
of changes of fair values from transaction
financial liabilities, and investment gains
from disposal of transaction financial asset,
                                                                                              1,226,127.75
transaction financial liabilities and financial
asset available for sales, exclude the
effective hedging business relevant with
normal operations of the Company

Restoring       of     receivable     impairment
                                                                               31,980.00         47,282.17
provision that tested individually

Other non-operating income and expenditure
                                                            -70,940.53        118,638.89        248,824.36
except for the aforementioned items

Other items (gain/loss) conformed to the
definition of the extraordinary profit                                       9,722,688.86
(gain)/loss

Less: Impact on income tax                                 -170,101.35       1,576,392.95       506,161.39



                                                                     9
                                                                             深圳市特力(集团)股份有限公司 2016 年年度报告全文


Impact on minority shareholders’ equity
                                                        -188,676.73           132,446.96             32,544.06
(post-tax)

Total                                                  2,959,846.42        14,180,309.10         1,570,210.51              --

Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for Companies
Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to
the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their
Securities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable    √ Not applicable
In reporting period, the Company has no particular about items defined as recurring profit (gain)/loss according to the lists of
extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to
the Public --- Extraordinary Profit/loss




                                                                   10
                                                                         深圳市特力(集团)股份有限公司 2016 年年度报告全文




                         Section III Summary of Company Business

I. Main businesses of the Company in the reporting period
Does the Company need to comply with the disclosure requirements of the special industry
No

The Company's main business is car sales; car testing, maintenance and accessories sale during the reporting
periods; property leasing and service business. During the reporting period, the Company has been unswervingly
following the strategic planning to promote the Company's strategic transformation, taking the innovation-driven
development as a guiding principle, actively promoting the healthy development of existing main business, and
exploring the implementation of new business model to the jewelry business Transition. The Company's main
business and market conditions are as follows:
1, Car sales; car testing, maintenance and accessories sales: in 2016, facing the macroeconomic downward
pressure and the auto market in Shenzhen being affected by the promotion of new energy and purchase policy, car
sales are still greatly being affected. The destocking adjustment of auto enterprises and the state purchase tax
preferential policies have brought a certain living space to the car dealers, but the vehicle price fall and
intensifying of sales promotion continue to deepen the competition among car enterprises. During the reporting
period, the Company has implemented the fine data management, detailed the capital budget arrangements,
scientifically controlled the vehicle inventory, improved quality to promote sales, and explored benefits by sales
promotion. On the other hand, the Company has strictly controlled costs, committed to improving the single
production efficiency, and reduced the purchasing costs and management costs. The Company has achieved
annual car sales revenue of 138.7 million yuan, an increase of 2.81% over the same period of last year. At the
same time, taking use of the Company’s brand advantages in the automotive aftermarket to provide professional
car testing and maintenance services and enhance profitability. During the reporting period, the operating income
and gross margin of the Company's automobile inspection and maintenance and accessories sales businesses have
increased on a year-on-year basis, and car sales business has turned from deficits to profit.
2, Property leasing and services: with the extension of economic situation at the end of 2015, the jewelry industry
business had great fluctuations in 2016, the rental prices at the main markets in Shuibei and Buxin areas which
take the jewelers as lease objects showed a downward trend. The Company has promoted the assets management
efficiency by strengthening management, integrating resources, reducing self-use area, and improving rental price;
at the same time, the Company has handled the undue contracts with obviously low price or undated contracts by
legal approaches, restored the market price, and enhanced the property operating income. During the reporting
period, the property rental income has increased by 12.70% on a year-on-year basis.Property management
business: as a typical labor-intensive service industry, the labor costs of property service industry take a large
share in the total costs, in 2016, under the pressure of the rigid growth of human resource costs, the profit margins
of traditional property service industry have been reduced. With the advent of large data age, the property industry
starts turning to more scientific and refined management whether in management or customer relationship
handing. In the new situation, the Company increases income and reduces expenditure, increases management
fees and improves operating efficiency through the implementation of market-oriented reforms, strict control of
costs, loopholes blocking and other measures. Although the property management business has been profitable in
the reporting period,but by the company's property business is small、 low profit margins、labor costs continue
to grow and other factors, our profit growth will have some bottlenecks in the future.


                                                               11
                                                                           深圳市特力(集团)股份有限公司 2016 年年度报告全文




3, Jewelry service: During the reporting period, the company transform the strategic to the jewelry industry
integrated service operators. Our company has invested in Anhui Tellus Starlight Jewelry Investment Co., Ltd. ,
and Anhui Tellus Starlight Jewelry Investment Co., Ltd. cooperation with Anhui Jinzun Jewelry Co., Ltd.
Co-founded Anhui Tellus Starlight Jinzun Jewelry Co., Ltd..This is a substantial step for the transform the
strategic to the jewelry industry integrated service operators.

II. Major changes in main assets

1. Major changes in main assets


                Major assets                                               Note of major changes


Equity assets                            No major change

Fixed assets                             No major change

Intangible assets                        No major change

                                         Book value of the construction in progress till end of 31 st December 2016 amounting to
Construction in progress                 RMB 343.3653 million, an increase of RMB64.3087 million from a year earlier with
                                         23.05% up. Mainly due to the continuous input on Shuibei Jewelry Building

                                         Book value of other current assets till end of 31st December 2016 amounting to RMB
Other current assets                     90.1239 million, a decrease of RMB75.4415 million from a year earlier mainly due to the
                                         declined in financial products.


2. Main overseas assets

□ Applicable √ Not applicable

III. Core Competitiveness Analysis
Does the Company need to comply with the disclosure requirements of the special industry
No


1. Rich resources accumulation: Shenzhen jewelry market shares account for over 70% of the national jewelry
industry, Shuibei area is the core gathering area of Shenzhen jewelry industry and forms a huge domestic gold
jewelry enterprises cluster which covers the entire industry chain, including raw materials purchase, production
and processing, and wholesale sales, and has established good cooperation relationships with many jewelry
enterprises by providing various stable services for many leading enterprises in jewelry industry in Shenzhen over
the years. Therefore, with the help of resources at the leading jewelry enterprises with whom the company has
established strategic partnership, the company can gather jewelry enterprises and attract talents to enter Shuibei
industry park project.
2. Low-cost funds access:The macro economy has continued the downturn these years, the macroeconomic
downturn has caused a certain impact on the jewelry wholesale and retail industry, and the bank credit tightening
has caused continuous tension to the capital chain of jewelry wholesaler and retailer. As a listed company, the

                                                                12
                                                                 深圳市特力(集团)股份有限公司 2016 年年度报告全文


company has diversified and low-cost financing channels; as a state-owned listed company with lower
asset-liability ratio, the company has low bank loan costs. Smooth financing channels and lower capital costs
provide strong financial supports for the company's transformation development and platform layout.
3. Clear strategic blueprint for third-party service providers: stay out of the competition among jewelers, drop out
of the third-party service positioning of specific management jewelry products, avoid the conflicts of interest
between the company and jewelry enterprises, which is helpful for the company to give full play to its own
advantages, establish in-depth relations with numerous jewelry brands and operators, integrate the entire industry
chain resources, and provide full services.




                                                        13
                                                                              深圳市特力(集团)股份有限公司 2016 年年度报告全文



                  Section IV Discussion and Analysis of the Operation
1. Introduction
In 2016, the world economy showed a profound adjustment, the global economic growth rate slowed down
compared with 2015, the growth pattern of developed economies generated differentiation, the overall growth rate
of emerging markets and developing economies gradually stabilized. During this year, the international trade
growth continued to slump, and global capital flows intensified. The domestic economic operation adjustment was
carried out in the downturn, the traditional industries declined while the emerging industries began to rise, the
overall national economy operation remained in a reasonable range, in 2016, the gross domestic product reached
74412.7 billion yuan, an increase of 6.7% on a year-on-year basis. The international and domestic economic
environment was still intricate, the fundamentals for stable and good economy were not solid. In the face of
complex external environment, the company unswervingly followed the strategic planning to promote the
company's strategic transformation, took innovation-driven development as a guiding principle, actively promoted
the healthy development of existing business, and explored the landing and implementation for new business
model under the leadership of the Board of Directors.

During the reporting period, the Company has achieved operating income of RMB 324.24 million, increased by
RMB 20.51 million compared with RMB 303.73 million in the same period of last year, an increase of 6.75%,
which is mainly due to the increase of income from property leasing and management. Total profits amounting to
RMB 30.49 million, a decrease of RMB 16.8 million compared with RMB 47.29 million in the same period of last
year, the net profit belonging to parent Company is RMB27.19 million, a decrease of RMB 15.58 million
compared with RMB 42.77 million in the same period of last year. After excluding the non-comparable factors
(During the reporting period, due to the termination of relevant employee retirement benefit plan and the release
of long-term employee pay payable and period expenses of RMB 9.72 million), the total profit has decreased
RMB 7.08 million, and the net profit belonging to shareholders of listed Company has a decrease of RMB 7.09
million.The main reason for the decrease in total profit over the previous year      that was our stock company
(Shenzhen Dongfeng Motor Co., Ltd.)investment income fell sharply by 18.54 million yuan. Our holding compan
y operating profit has increased by 6.97 million yuan over the previous year.The net profit attributable to
shareholders of listed Company after deducting non-recurring gains/losses was RMB 24.23 million, a RMB 4.36
million declined on a y-o-y basis.

II. Main business analysis
1. Introduction

See the “I-Introduction” in “Discussion and Analysis of the Operation”


2. Revenue and cost

(1) Constitute of operation revenue

                                                                                                                         In RMB

                                           2016                                       2015
                                                                                                               y-o-y changes
                              Amount            Ratio in operation           Amount       Ratio in operation



                                                                     14
                                                                              深圳市特力(集团)股份有限公司 2016 年年度报告全文


                                                  revenue                                       revenue

Total operation
                             324,240,841.90                 100%        303,726,790.57                    100%                6.75%
revenue

According to industries

Auto sales                   138,702,514.96              42.78%         134,916,197.98                44.42%                  2.81%

Auto inspection and
maintenance and               51,777,605.75              15.97%          48,256,203.33                15.89%                  7.30%
accessories sales

Property rental and
                             125,924,602.28        52,712,918.74                 58.14%               17.10%                13.45%
service

According to products

Auto sales                   138,702,514.96              42.78%         134,916,197.98                44.42%                  2.81%

Auto inspection and
maintenance and               51,777,605.75              15.97%          48,256,203.33                15.89%                  7.30%
accessories sales

Property rental and
                             125,924,602.28        52,712,918.74                 58.14%               17.10%                13.45%
service

According to region

Shenzhen                     316,404,722.99      226,210,269.82                  28.51%                   8.84%               6.00%


(2) About the industries, products, or regions accounting for over 10% of the Company’s operating income
or operating profit

√Applicable   □ Not applicable
Does the Company need to comply with the disclosure requirements of the special industry
No
                                                                                                                             In RMB

                                                                              Increase/decrease Increase/decrease Increase/decrease
                        Operating
                                        Operating cost   Gross profit ratio     of operating    of operating cost   of gross profit
                          revenue
                                                                                revenue y-o-y        y-o-y           ratio y-o-y

According to industries

Auto sales            138,702,514.96    133,056,820.98                4.07%             2.81%               3.60%            -0.73%

Auto inspection
and maintenance
                        51,777,605.75    40,440,530.10             21.90%               7.30%               5.03%             1.69%
and accessories
sales

Property rental
                      133,760,721.19     55,545,498.55             58.47%              10.95%               8.81%             1.68%
and service

According to products


                                                                 15
                                                                                深圳市特力(集团)股份有限公司 2016 年年度报告全文


Auto sales              138,702,514.96    133,056,820.98                4.07%             2.81%                   3.60%               -0.73%

Auto inspection
and maintenance
                         51,777,605.75     40,440,530.10             21.90%               7.30%                   5.03%               1.69%
and accessories
sales

Property rental
                        133,760,721.19     55,545,498.55             58.47%              10.95%                   8.81%               1.68%
and service

According to region

Shenzhen                324,240,841.90    229,042,849.63             29.36%               6.75%                   5.07%               1.13%

Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main business based on
latest one year’s scope of period-end
□ Applicable √ Not applicable


(3) Income from physical sales larger than income from labors
√ Yes □ No

                                                                                                                        Increase/decrease
        Industries                 Item                Unit                 2016                    2015
                                                                                                                              y-o-y

                        Sales volume         vehicle                                   815                        882                 -7.60%
Auto sales (vehicle)
                        Storage              vehicle                                    54                         87              -37.93%

Reasons for y-o-y relevant data with over 30% changes
√Applicable     □ Not applicable
Storage reduced mainly due to the implementation of defined sales management. We measure and calculate the vehicles for sales at
beginning of the year, and revised according to the market situation for purpose of reducing the storage time, and control the storage
in reason.


(4) Fulfillment of the Company’s signed significant sales contracts up to this reporting period

□ Applicable √ Not applicable


(5) Constitute of operation cost

Classification of industries
                                                                                                                                      In RMB

                                                        2016                                  2015
                                                                                                                          Increase/decrease
    Industries              Item                           Ratio in operation                      Ratio in operation
                                            Amount                                  Amount                                     y-o-y
                                                                 cost                                      cost

Auto sales           Auto                 133,056,820.98             58.09%       128,438,474.70              58.92%                  3.60%

Auto inspection
                     Accessory,
and maintenance                            40,440,530.10             17.66%        38,505,305.64              17.66%                  5.03%
                     maintenance and
and accessories

                                                                   16
                                                                              深圳市特力(集团)股份有限公司 2016 年年度报告全文


sales                 detection

                      Lease, property
Property rental
                      management and        55,545,498.55            24.25%       51,048,435.86             23.42%               8.81%
and service
                      other

Total                                     229,042,849.63                        217,992,216.20                                   5.07%

Note


 (6) Whether the changes in the scope of consolidation in Reporting Period

√Yes        □ No
Totally 16 enterprises included in consolidate statement for year of 2016, comparing with last year, there are 2 susbidairis inclued:
Anhui Tellus Starlight Jewelry Investment Co., Ltd. and Anhui Tellus Starlight Jinzun Jewelry Co., Ltd.


 (7) Major changes or adjustment in business, product or service of the Company in Reporting Period

□ Applicable √ Not applicable



(8) Major sales and main suppliers
Major sales client of the Company

Total top five clients in sales (RMB)                                                                                    19,214,313.73

Proportion in total annual sales volume for top five clients                                                                     5.93%

Ratio of the sales from related parties in total annual sales
                                                                                                                                 1.56%
among the top five clients

Information of top five clients of the Company

    Serial                         Name                            Sales (RMB)                    Proportion in total annual sales

               Shenzhen Zung Fu Tellus Automobile
1                                                                             5,047,618.84                                       1.56%
               Service Co., Ltd.

               Shenzhen Jiafengcheng Industrial
2                                                                             4,656,263.25                                       1.44%
               Development Co., Ltd.

               Shenzhen Yiquan Investment Consulting
3                                                                             3,854,375.00                                       1.19%
               Co., Ltd.

4              Shenzhen Hongjiayi Investment Co., Ltd.                        3,532,190.48                                       1.09%

               Zhuhai Junxiangyuan Restaurant
5                                                                             2,123,866.16                                       0.66%
               Management Co., Ltd.

Total                               --                                     19,214,313.73                                         5.93%

Other situation of main clients
□ Applicable √ Not applicable
Main suppliers of the Company




                                                                  17
                                                                               深圳市特力(集团)股份有限公司 2016 年年度报告全文


Total purchase amount from top five suppliers (RMB)                                                                       169,519,318.71

Proportion in total annual purchase amount for top five
                                                                                                                                    99.59%
suppliers

Ratio of the purchase from related parties in total annual
                                                                                                                                     0.00%
purchase among the top five suppliers



Information of top five suppliers of the Company

    Serial                        Name                               Sales (RMB)                    Proportion in total annual sales

1            FAW TOYOTA Motor Sales Co., Ltd.                                143,753,589.52                                         84.45%

             Guangzhou Huatong Toyota Automobile
2                                                                             20,395,909.51                                         11.98%
             Service Co., Ltd.

             TOYOTA Motor (China) Investment Co.,
3                                                                              3,191,380.00                                          1.87%
             Ltd.

             Guangzhou Xinju Enterprise Development
4                                                                              1,142,198.68                                          0.67%
             Co., Ltd.

5            Shenzhen Fengtong Auto Parts Co., Ltd.                            1,036,241.00                                          0.61%

Total                              --                                        169,519,318.71                                         99.59%

Other notes of main suppliers of the Company
□ Applicable √ Not applicable


3. Expenses

                                                                                                                                    In RMB

                                                                             Increase/decrease
                                    2016                     2015                                           Note of major changes
                                                                                  y-o-y

Sales expense                      16,656,674.49             14,718,877.28             13.17%

                                                                                                 Termination of the retiree benefits
Management expense                 42,446,751.49             32,881,868.90             29.09% plans, write-down the management
                                                                                                 cost of last year's

                                                                                                 Mainly due to the decline of loan
Financial expense                       -505,960.97           4,343,688.83           -111.65%
                                                                                                 interest


4. R&D investment

□ Applicable √ Not applicable


5. Cash flow

                                                                                                                                    In RMB



                                                                    18
                                                                         深圳市特力(集团)股份有限公司 2016 年年度报告全文


               Item                             2016                         2015                        Y-o-y changes

Subtotal of cash in-flow from
                                                  382,254,957.22                354,088,861.88                               7.95%
operation activity

Subtotal of cash out-flow from
                                                  324,380,022.90                273,406,234.55                              18.64%
operation activity

Net cash flow from operation
                                                   57,874,934.32                 80,682,627.33                           -28.27%
activity

Subtotal of cash in-flow from
                                                  413,663,270.79                372,580,441.92                              11.03%
investment activity

Subtotal of cash out-flow from
                                                  374,327,206.62                732,978,461.70                           -48.93%
investment activity

Net cash flow from investment
                                                   39,336,064.17                -360,398,019.78
activity

Subtotal of cash in-flow from
                                                   64,330,000.00                660,198,215.03                           -90.26%
financing activity

Subtotal of cash out-flow from
                                                   82,228,479.17                361,209,488.42                           -77.24%
financing activity

Net cash flow from financing
                                                  -17,898,479.17                298,988,726.61
activity

Net increased amount of cash
                                                   79,312,929.17                 19,139,041.28                           314.40%
and cash equivalent

Main reasons for y-o-y major changes in aspect of relevant data
√Applicable   □ Not applicable



               Item                      2016                 2015           Y-o-y changes                  Note

Subtotal of cash out-flow from        374,327,206.62        732,978,461.70          -48.93% The financial products investment
investment activity                                                                          and constuction in prcess of
                                                                                             Zhongtain Company are nearly to
                                                                                             close, the project investment
                                                                                             declined

Net cash flow from investment           39,336,064.17      -360,398,019.78                   Mainly because the cash flow
activity                                                                                     increased for redemption of the
                                                                                             financial products and y-o-y
                                                                                             decline in project investment

Subtotal of cash in-flow from           64,330,000.00       660,198,215.03          -90.26% The bank loans increased in the
financing activity                                                                           Peirod, while the cash in-flow
                                                                                             from a year earlier due to the the
                                                                                             privately placement

Subtotal of cash out-flow from          82,228,479.17       361,209,488.42          -77.24% The loans payment declined,


                                                                  19
                                                                             深圳市特力(集团)股份有限公司 2016 年年度报告全文


financing activity                                                                             mainly repay the loan principal
                                                                                               and interest for SDG, while repay
                                                                                               the loan principal and interst for
                                                                                               banks from a year earlier

Net cash flow from financing              -17,898,479.17    298,988,726.61                     At same period of last yera, cash
activity                                                                                       in-flow increased due to the
                                                                                               private placement and loans repaid
                                                                                               declined



Reasons of major difference between the cash flow of operation activity in report period and net profit of the Company
□Applicable   √Not applicable


III. Analysis of the non-main business

□ Applicable √ Not applicable


IV. Assets and liability

1. Major changes of assets composition

                                                                                                                              In RMB

                             End of 2016                   End of 2015
                                                                                      Ratio
                                      Ratio in total                Ratio in total                 Notes of major changes
                       Amount                          Amount                        changes
                                         assets                        assets

                     218,497,640.1
Monetary fund                               18.38% 159,184,710.93         13.62%       4.76%
                                  0

Account
                        113,736.64           0.01%     562,051.31          0.05%      -0.04%
receivable

Inventory            11,038,915.69           0.93% 16,151,336.61           1.38%      -0.45%

Investment
                     77,602,248.53           6.53% 82,100,133.48           7.03%      -0.50%
property

Long-term equity 203,633,308.0
                                            17.13% 220,180,721.29         18.84%      -1.71%
investment                        6

                     129,226,236.1
Fix assets                                  10.87% 136,583,565.00         11.69%      -0.82%
                                  6

Construction in      343,365,313.4
                                            28.88% 279,056,650.35         23.88%       5.00%
process                           6

Short-term loans     50,000,000.00           4.21%                                     4.21%

Long-term loans      12,000,000.00           1.01%                                     1.01%




                                                                 20
                                                                    深圳市特力(集团)股份有限公司 2016 年年度报告全文


2. Assets and liability measured by fair value

□ Applicable √ Not applicable


3. Right of the assets restrained till end of the Period

Ended as 31st December 2016, the intangible assets with ownership or use right concerned are restrained found
more in Section XI Financial Report- Note 6-46



V. Investment

1. Overall situation

□ Applicable √ Not applicable


2. The major equity investment obtained in the reporting period

□ Applicable √ Not applicable


3. The major non-equity investment doing in the reporting period

□ Applicable √ Not applicable


4. Financial assets investment

(1) Securities investment
□ Applicable √ Not applicable
The Company had no securities investment in the reporting period.


(2) Derivative investment

□ Applicable √ Not applicable
The Company has no derivatives investment in the Period


5. Application of raised proceeds

√Applicable □Not applicable


(1) Overall application of raised proceeds

√Applicable □Not applicable
                                                                                                  In 10 thousand Yuan




                                                               21
                                                                                        深圳市特力(集团)股份有限公司 2016 年年度报告全文


                                                                                  Cumulativ             Ratio of
                                                                   Total                                                               Usage of the
                                                                                       e raised       cumulative
                                       Total         Total        raised                                                 Total        retained raised
                                                                                       capitals          raised                                                Raised
                           Total       raised     accumulati capital has                                               accumulati       capitals and
                                                                                         has            capitals                                          capitals idle
   Year        Way         raised      capital     ve raised purpose of                                                ve raised             what is
                                                                                  purpose of              has                                             for more than
                          capitals      used       capitals        uses                                                 capitals        expected to
                                                                                        uses           purpose of                                          two years
                                     in Period       used      changed in                                               unused         invested with
                                                                                  changed in             uses
                                                                  Period                                                               those capitals
                                                                                        total           changed

                                                                                                                                      The Company
                                                                                                                                      used
                                                                                                                                      temporarily idle
                                                                                                                                      funds to
                                                                                                                                      purchase
                                                                                                                                      guaranteed
             Non -                                                                                                                    financial
2015        Public          63,352     4,765.03 44,488.47                     0                   0        0.00% 18,863.53 products 140                                   0
            Offering                                                                                                                  million Yuan,
                                                                                                                                      raise funds
                                                                                                                                      account
                                                                                                                                      balances
                                                                                                                                      amounting to
                                                                                                                                      61,570,531.13
                                                                                                                                      Yuan

Total            --         63,352     4,765.03 44,488.47                     0                   0        0.00% 18,863.53                     --                         0

                                                 Explanation on General usage of raised capital

According to the “Proposal of the Company’s plan for non-public offering of shares” and other related proposals deliberated and approved
by the Company’s 19th extraordinary meeting of the seventh board of directors and the 4th extraordinary general meeting of 2014, and the
“Approval for non-public offering of shares of Shenzhen Tellus(Group) Co., Ltd.” (CSRC license No. [2015]173) approved by China
Securities Regulatory Commission, the Company has adopted non-public offering of shares to issue RMB ordinary shares (A shares) of 77
million shares, and the issue price is 8.40 Yuan /Share. The total raised funds of this issuance are 646,800,000 Yuan; the net amount of raised
funds is 633,520,000 Yuan after deducting the issuance costs of 13,280,000 Yuan. On March 12, 2015, Ruihua Certified Public Accountants
(special general partnership) has verified the capital of this issuance and issued "Capital Verification Report" RHYZ No. [2015]48330003.
During the reporting period, the Company has totally put into raised funds of 47,650,300 Yuan, and accumulated to put into raised funds of
444,884,700 Yuan, including 47,650,300 Yuan used for Tellus Shuibei Jewelry Building in the reporting period..


(2) Situation of committed project of raised proceeds

√Applicable □Not applicable
                                                                                                                                          In 10 thousand Yuan
                                                  Total       Amount
                          Projects    Total                                  Amount Investme Predicted                      Profit      Reach the Project
Committed investment                             investme invested
                         changed committe                                         of              nt       serviceab realized predicted feasibility
 projects &investment                            nt after     in this
                           or not       d                                    accumula program                     le        in this     interest or      was
     of raised fund
                         (includin investme adjustme          period


                                                                        22
                                                                                    深圳市特力(集团)股份有限公司 2016 年年度报告全文


                                                    nt (1)                   ted        till the   condition   year        not    changed
                               g         nt of
                           changed      raised                            investme period-en        date of                      hugely or

                           partially) capitals                            nt till the      d        project                          not
                                                                          period-en (3)=(2)/(1
                                                                            d (2)          )


Investment project commitment

Tellus Shuibei Jewelry                                                                             2017-07-
                           N             26,000                4,765.03 25,338.47       97.46%                        0N         N
Building                                                                                           31

Liquid assets
                           N             37,352                       0      19,150     51.27%                        0N         Y
supplementation

Subtotal of
                               --        63,352              0 4,765.03 44,488.47         --            --            0    --        --
commitment projects

Investment orientation for over raised fund

N/A

Total                          --        63,352              0 4,765.03 44,488.47         --            --            0    --        --

                           1. Tellus Shuibei Jewelry Building has currently completed the main construction, but is not ready for
                           inspection of acceptance, and temporarily unable to put into use. The project expected to accept earliest in
                           July 2017, exactly date come into service still unidentified.
                           2. In the investment projects of raised funds for supplementing the Company's working capital:
                           (1) Repayment of bank loans of 191,500,000 Yuan has been completed in the reporting period.
                           (2) The newly increased renovation costs of Tellus Shuibei project will be put into use according to the
                           project implementation progress.
                           (3) Jewelry e-commerce business: the jewelry e-commerce business market is highly competitive, payback
                           period is long, the Company needs to bear some business risks and long-playing losses, which may bring
                           adverse effects on the Company’s overall performance if investing the jewelry e-commerce platform
Situation about not according to the original plan under the current market situation, so the Company has decided to suspend
coming up to schemed the plan to use raised funds to invest in this project. The raised funds in the original plan shall be used for
progress or expected other projects.
revenue       and   the
                           (4)Jewelry retail market business:since 2015, by Jewelry industry consumption decline,rising property
reason(In       specific
                           costs and other effects,large jewelry retail market was happens for running-down of business,revenue and p
project)
                           rofit, If the company continues to use the original plan to raise funds in order to set up a regional center for
                           medium-sized jewelry stores and 4 small professional jewelry store, this mode will use larger funds into je
                           welry retail market business. This mode is large of business risk, so the company decided to cancel the use
                           of funds to the project plan,and continue to research and explore the mode of jewelry retail market.
                           (5) Jewelry training business: this project has not yet been put into use. The Company has started to
                           investigate some schools in early 2015 and found that there are already many jewelry training schools in
                           Shenzhen Shuibei area and the market competition is rather intense; at the same time, affected by the
                           decline of prosperity in jewelry industry, the demand for training business has substantially reduced. If the
                           Company invests in the construction of jewelry training schools, the return on investment is relatively low
                           and the payback period is long, so the Company has decided to suspend the investment plan for this
                           project, and wait to argue until the business of jewelry service industry goes smoothly and enough


                                                                     23
                                                                               深圳市特力(集团)股份有限公司 2016 年年度报告全文


                          resources are accumulated. The raised funds in the original plan shall be used for other projects.
                          (6) Automobile leasing business supporting the jewelry market: the project has not yet been put into use.
                          One main reason is that Shenzhen Municipal Government announced the implementation of car-purchase
                          restriction policy on December 29, 2014, the car purchase takes two methods, i.e. lottery and bidding, this
                          policy made the Company unable to carry out this business as planned; another reason is that the prosperity
                          of jewelry industry has declined, the demand for automobile leasing has greatly reduced in jewelry
                          industry of Shuibei, and the business prospects are influenced, so the Company has decided to cancel the
                          investment in this project. The raised funds in the original plan shall be used for other projects.

                          (1) Jewelry E-business:    Jewelry e-commerce business: the jewelry e-commerce business market is highly
                          competitive, payback period is long, the Company needs to bear some business risks and long-playing
                          losses, which may bring adverse effects on the Company’s overall performance if investing the jewelry
                          e-commerce platform according to the original plan under the current market situation, so the Company
                          has decided to suspend the plan to use raised funds to invest in this project. The raised funds in the original
                          plan shall be used for other projects.
                          (2)Jewelry retail market business:since 2015, by Jewelry industry consumption decline,rising property
                          costs and other effects,large jewelry retail market was happens for running-down of business,revenue and p
                          rofit, If the company continues to use the original plan to raise funds in order to set up a regional center for
                          medium-sized jewelry stores and 4 small professional jewelry store, this mode will use larger funds into je
                          welry retail market business. This mode is large of business risk, so the company decided to cancel the use
                          of funds to the project plan,and continue to research and explore the mode of jewelry retail market.
Explanation on great (3) Jewelry training business: this project has not yet been put into use. The Company has started to
changes of feasibility investigate some schools in early 2015 and found that there are already many jewelry training schools in
of project                Shenzhen Shuibei area and the market competition is rather intense; at the same time, affected by the
                          decline of prosperity in jewelry industry, the demand for training business has substantially reduced. If the
                          Company invests in the construction of jewelry training schools, the return on investment is relatively low
                          and the payback period is long, so the Company has decided to suspend the investment plan for this
                          project, and wait to argue until the business of jewelry service industry goes smoothly and enough
                          resources are accumulated. The raised funds in the original plan shall be used for other projects.
                           (4) Automobile leasing business supporting the jewelry market: the project has not yet been put into use.
                          One main reason is that Shenzhen Municipal Government announced the implementation of car-purchase
                          restriction policy on December 29, 2014, the car purchase takes two methods, i.e. lottery and bidding, this
                          policy made the Company unable to carry out this business as planned; another reason is that the prosperity
                          of jewelry industry has declined, the demand for automobile leasing has greatly reduced in jewelry
                          industry of Shuibei, and the business prospects are influenced, so the Company has decided to cancel the
                          investment in this project. The raised funds in the original plan shall be used for other projects.

Amount, usage and         Not applicable
progress of using for
fund raising out of the
plan
Change of                 Not applicable
implementation place
of investment project
of raised capitals


                                                                    24
                                                                              深圳市特力(集团)股份有限公司 2016 年年度报告全文


Adjustment of              Not applicable
implementation way
for investment project
of raised capitals

                           Applicable

                           On April 27, 2015, the Company held the thirtieth interim meeting of the seventh board of directors which
                           deliberated and approved the motion about replacing the self-raised funds beforehand invested in
Particular    about    the fundraising project with the raise funds, and agreed the Company to replace the self-raised funds of
advanced      input    and 114,162,000 Yuan invested in fundraising project with the raise funds, of which 15.6 million Yuan was
replacement                used to replace and supplement the beforehand invested self-raised funds of the Company’s circulating
                           funds and 98,562,000 Yuan was used to replace and supplement the beforehand invested self-raised funds
                           of Tellus Shuibei Jewelry Building project. The Company’s independent director and sponsor institution
                           have expresses their agreement on this matter.

Temporarily                Not applicable
supplement for the
current capitals with
idle raised capitals

Balance of the amount Not applicable
for raised-fund
investment project after
implementation and
reasons

                           The reserved raised-fund was saving in specific account in regulation of the Management System for
                           Raising Funds; the fund will contribute for the follow-up construction of the raised-fund projects. On 28
                           April 2016, the 4th session of 8th BOD and the AGM 2015, held on 20 May 2016 for deliberating and
                           approved the proposal of Purchasing Financial Products with Part of the Raised-Funds and Self-owned
Use    of    funds     and Capital, that is, in the premise of guarantee no impact on construction process of the raised-fund projects,
allocation for reserved in one year since the AGM resolution agreed, use the accumulate idle raised-fund up to 800 million Yuan
raised capital             for purchasing short-term guaranteed financial products; cumulative amount of the idle raised-fund up to
                           200 million Yuan use for purchasing low-risk and highly liquid financial products. Among the above said
                           limit, the funds can be scroll to used; during the implementation, the investment balance will not over 300
                           million Yuan at any point of time. Till end of 31 st December 2016, the balance of cash management used
                           from idle raised-fund amounting to 140 million Yuan.

Issues or other
conditions found in use
                           N/A
of fund raised and
disclosure


 (3)The changed project of raised proceeds

□ Applicable √ Not applicable
The Company has no project of raised proceeds changed in the Period


                                                                    25
                                                                              深圳市特力(集团)股份有限公司 2016 年年度报告全文


VI. Sales of major assets and equity

1. Sales of major assets

□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.


2. Sales of major equity

□ Applicable √ Not applicable


VII. Analysis of main holding Company and stock-jointly companies

√Applicable □ Not applicable
Particular about main subsidiaries and stock-jointly companies net profit over 10%
                                                                                                                                     In RMB

  Company                               Main        Register                                    Operating        Operating
                     Type                                      Total assets   Net Assets                                         Net profit
    name                            business         capital                                    revenue            profit

Shenzhen
Auto                              Sales of auto
                                                  RMB 58.96    287,712,864. 247,402,952. 18,857,837.5 -1,483,065.9 -3,329,532.9
Industry and Subsidiary           and
                                                  million                45            60                   9                2                2
Trade                             accessories
Corporation

                                  Auto
Shenzhen SD
                                  maintenance
Huari
                                  and             US$ 5        74,514,337.9 28,746,274.2 37,018,805.7 -1,498,738.5 -1,780,393.9
Automobile      Subsidiary
                                  production      million                 4                2                7                1                2
Enterprise
                                  and sales of
Co.Limited
                                  accessories

Shenzhen
Zhongtian                         Property        RMB 267.25 413,109,786. 283,399,834.
                Subsidiary                                                                     5,338,322.79 -653,030.87 -652,386.13
Industrial                        rental          million                76            61
Co., Ltd

Shenzhen
Huari Toyota                      Sales of        RMB 2        42,469,730.8 -4,335,246.8 192,287,794.
                Subsidiary                                                                                      2,611,675.12 2,573,764.62
Automobile                        automobile      million                 1                8              93
Sales Co. Ltd

Shenzhen                          Manufacture
Xinyongtong                       of inspection
                                                  RMB 19.61
Auto Vehicle Subsidiary           equipment                    9,793,955.41 3,146,488.40 4,592,187.92            857,662.37      619,708.24
                                                  million
Inspection                        for motor
Equipment                         vehicle



                                                                   26
                                                                       深圳市特力(集团)股份有限公司 2016 年年度报告全文


Co., Ltd.

Shenzhen
Tellus                       Inspection
Xinyongtong                  and repair of RMB 32.90    87,834,474.7 47,631,351.7 12,397,827.8
               Subsidiary                                                                            3,250,202.45 2,360,168.92
Automobile                   motor            million             2              8              6
Development                  vehicle
Co. Ltd

Shenzhen SD                  Real estate
Tellus Real                  developmen RMB 31.15       28,487,667.8                                 -3,259,467.0 -3,259,467.0
               Subsidiary                                              8,775,446.23
Estate Co.,                  t and            million             4                                            1            1
Ltd                          operation

Shenzhen SD
Tellus
                             Property         RMB       29,506,313.0                  47,104,203.4
Property       Subsidiary                                              8,858,143.98                  2,664,500.45 1,814,171.16
                             management 7.05million               6                             9
Management
Co., Ltd

Shenzhen
Tellus Real                  Trading
                                              RMB 2
Estate         Subsidiary    agency of                  2,575,407.25 2,448,272.00                       -1,933.81    -1,933.81
                                              million
Exchange                     real estate
Co. Ltd

Anhui Tellus
Starlight                    Jewelry
                                              RMB 9.8
Jewelry        Subsidiary    sales, jewelry             3,051,496.24 3,051,476.24                    -278,523.76 -278,523.76
                                              million
Investment                   investment
Co.,Ltd.

Anhui Tellus
Starlight                    Jewelry
                                              RMB 13
Jinzun         Subsidiary    sales, jewelry             3,051,437.91 3,051,417.91                    -278,582.09 -278,582.09
                                              million
Jewelry Co.,                 investment
Ltd.

Shenzhen
Zung Fu
Tellus         Joint stock   Car sales and RMB 30       403,060,023. 216,329,945. 1,096,050,12 33,458,798.0 26,479,750.0
Automobile     Company       maintenance million                 00             00            4.00             0            0
Service Co.,
Ltd.

                             Manufacture
Shenzhen
                             and
Dongfeng       Joint stock                    RMB 100   588,021,675. 142,933,278. 573,229,481. -30,923,813. -22,704,239.
                             maintenance
Automobile     Company                        million            56             22             00             40           56
                             of
Co., Ltd.
                             automobile


                                                           27
                                                                                深圳市特力(集团)股份有限公司 2016 年年度报告全文


                                  Investment in
Shenzhen
                                  industry,
Tellus Gman Joint stock                           RMB            451,046,092. 114,361,826.                     -5,237,564.8 -5,237,564.8
                                  property                                                      5,059,107.47
Investment     Company                            123,704,960              71             63                               0                 0
                                  management
Co., Ltd.
                                  and leasing

Particular about subsidiaries obtained or disposed in report period
√Applicable   □Not applicable

                                                                                                    Impact on overall operation and
                   Name                           Way to obtained and dispose in the Period
                                                                                                               performance

                                                                                               The enterprise is not official open yet and
Anhui Tellus Starlight Jewelry Investment
                                                Newly established subsidiary                   has minor impact on the performance in
Co.,Ltd.
                                                                                               the Period

                                                                                               The enterprise is not official open yet and
Anhui Tellus Starlight Jinzun Jewelry Co.,
                                                Newly established subsidiary                   has minor impact on the performance in
Ltd.
                                                                                               the Period
Notes of holding and shareholding companies

VIII. Structured vehicle controlled by the Company

□ Applicable √ Not applicable

IX. Future Development Prospects


I Industry structure and trends
In recent years, the high-speed development of jewelry industry has encountered bottlenecks and continued
downturn, in 2016, excess processing capacity, over-supply of jewelry market, and surplus jewelry products still
restricted the development of jewelry industry. Low raw materials prices and increasingly fierce competition in
the market made the entire jewelry industry face reform and innovation, structural adjustment and transformation
and upgrading.
In 2016, the jewelry industry and market have shown some bright spots. According to the preliminary statistics of
Gems & Jewelry Trade Association of China, in 2016, the terminal market sales of China's jewelry industry has
remained 500 billion Yuan or more, and is still one of the world's largest and most important jewelry markets, the
consumption of multiple jewelry categories rank top in the world. Among them, the product sales of gold, silver,
platinum, jade, and pearl rank first in the world, diamond consumption ranks second in the world, the
consumption of color gemstones and semi-precious stones is also the world's leading level; product sales of
various categories in domestic jewelry market take turns to grow and reduce, the product sales of some categories
decline while some grow on a year-on-year basis, which indicates the purchasing power of consumers to jewelry
has no decline, and also means that the diversification trend of jewelry market has been further strengthened; at
the same time, along with the sharp rise of young middle class and consumption upgrades, the consumption
patterns also gradually change from the marketing era to the essence of products.


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Benefiting from the stable growth of disposable income and the steady improvement of cultural life level, the
medium and high-end consumer markets have entered a stage of rapid development, as a jewelry market with
materials, finance and cultures, it will have more profound material and cultural bases, the growth space of the
industry's future market is huge. The company will use the opportunity of industry transformation, closely focus
on the strategic objectives, actively lay out jewelry market, promote resources integration of various business
areas, and build industrial ecosphere.


II The company's future development strategy
Since the establishment of strategic development direction, the company has formed the planning ideas that take
physical platform of Tellus Shuibei jewelry industry park as the base, build design creativity and weimob wechat
business platform; establish regional channel platform and regional retail terminal platform, and build the whole
industry chain trading services platform; take financial services as a link to achieve the interconnection of all
platforms, build large data center for jewelry industry, focus on creating Tellus jewelry industry ecosphere.
During the reporting period, in the absence of industry accumulation, the company has profoundly investigated
and surveyed all areas, links, elements of    industrial chain, based on the positioning of their own third-party
operating service platform, on the one hand, deeply explored the upstream characteristics of Shuibei industry, on
the other hand, deepened into different areas, jeweler inside, departed from the core link of industrial chain,
started from the pain points of industry and enterprise, looked for potential opportunities, and further formed the
overall development strategy of the company's jewelry industry ecosphere.
(i) Physical platform: Physical platform is the core of the company's overall strategy
1, At present, the phase I project of Tellus Shuibei Jewelry Building in Shuibei jewelry industry park has entered
the final stage of completion, the initial acceptance quality has basically met requirements, it’s expected to
complete the planning and completion acceptance in July 2017. Shuibei Jinzuo Building, mainly constructed by
the joint venture - Shenzhen Tellus Gman Investment Co., Ltd., has passed the planning acceptance in October
2016, obtained the construction project acceptance certificate, and its office building and commercial podium
building have been put into operation. Xinglong Gold Jewelry Building (formerly known as "Shenzhen Shuibei
Xinglong R & D Center Building") project, mainly constructed by joint stock company Shenzhen Xinglong
Machinery Co., Ltd., has completed acceptance in June 2016, and should proceed with the planning acceptance
after the public roads in industrial park achieving the delivery and use standards. In 2017, the company will
promote the Tellus Shuibei Jewelry Building(Phase II) at Tellus Gman Industrial Park and try to startup project.
2, Shenzhen jewelry mainly concentrated in Shenzhen Luohu Shuibei - Buxin areas.Since the second half of 2016,
the government of Luohu District has formulated Shuibei - Buxin jewelry industry supply side strategy of
structural reforms, Luohu's jewelry industry towards "a base, four centers". The formation of the three area(Buxin
ecological innovation industrial community、North Shuibei jewelry industry gathering area and South Shuibei
ecological livable community)of the overall planning structure. The company is the largest owner of Tellus Gman
Gold Jewelry Industrial Park in North Shuibei jewelry industry gathering area,and has completed planning of two
sub units (04.05) in the project(Luohu District,Dongxiao Street,Buxin Industrial area,Urban renewal unit
planning project). Have a number of properties in Buxin Industrial area, and the company transformation of

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strategy accord with the reform strategy of the government of Luohu District. The company will use Shuibei -
Buxin industrial upgrading and enhance the comprehensive environment,the transformation of the company
strategy in accordance with the Luohu District government reform strategy, the company will use water Pui - cloth
heart kilometer industrial upgrading and enhance the comprehensive environment, for the upgrading project
started in 2017 on cloth heart kilometer related property, and vigorously promote the transformation and
upgrading of the company's property, and improve the development of Bentley jewelry the physical platform of
industry. try to started in 2017 for the upgrade project on Buxin related property, promote the upgrading of the
company's property, to improve and develop the physical platform of Tellus jewelry industry.
(ii) Regional channel platform
During the reporting period, the company has initially comprehend and grasped the characteristics of every link of
the industry chain through the accumulation at an earlier stage and by combing the core links of jewelry industry
chain and deeply investigating and surveying key areas and key merchants. On this basis, the company has put
forward the innovative regional channel platform business model in the industry, planned to unite the local
channel partners with strong power in all key areas across the country, gathered their wholesale business and
channels, combined with jewelry financial services, industrial chain supporting services, large data services and
design innovation services, and established the jewelry ecosphere with regional voice. Regional channel platform
is the entry point and an important part of the company's overall strategy, which plays a decisive role in the
landing and implementation of       strategies. The implementation plans to promote regional channel platform
project in 2017, breakthrough a specific areas, operation the platform, and on the basis of a single regional
channel platform running smoothly, the regional platform to a number of key areas of the country to replicate and
extend, finally formation of a national channel platform, through the national network of jewelry industry
upstream and downstream to produce a preliminary market influence.
(iii) Regional retail terminal platform
During the reporting period, Our company has invested in Anhui Tellus Starlight Jewelry Investment Co., Ltd. ,
and Anhui Tellus Starlight Jewelry Investment Co., Ltd. cooperation with Anhui Jinzun Jewelry Co., Ltd.
Co-founded Anhui Tellus Starlight Jinzun Jewelry Co., Ltd.. This is a substantial step that the company made for
the strategic goal of transforming to be the integrated operation service provider in jewelry industry according to
the strategic development plan, taking Anhui Tellus Starlight Jinzun Jewelry Co., Ltd. as a window to enter
jewelry industry, arranging and investing and establishing regional jewelry retail shopping malls in suitable areas
at the right time by cooperating with excellent jewelry dealers and with the help of high-quality channel resources
and industry resources so as to grasp the jewelry terminal operating mode, obtain consumption data, and enhance
the company's profitability and sustainable development capacity, which has a positive meaning to the company's
future development. The company plans to carry out the first regional jewelry retail mall official operation in 2017,
with the high-quality channel resources and industry resources, we can expand in key areas. When the business
model to be successful,after the project has been verified,using a variety of ways,copy and expand the jewelry
retail market in a number of regions across the country. By then, the retail terminal platform can provide terminal
supports and industry environment tentacles for Shuibei jewelry industry park physical platform and provide
downstream supports for the company's industrial chain business.


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(iv) Design and entrepreneurial platform
In view of the current product low-end homogeneous competition, the lack of intellectual property protection and
the low production efficiency formed by the long-term extensive development in the domestic jewelry industry,
the company plans to start from the design side, promotes the consumption concept upgrade of jewelries, create
innovative projects with boutique brands and designer brands by discovering and exploring the value of jewelry
design originality, while builds basic environment even more in favour of entrepreneurship and innovation by
promoting the R & D upgrade of intellectual property protection and intelligent manufacturing equipment, and
achieves the construction of jewelry industry full-chain service system.
(v) Jewelry financial services
According to the company's strategic structure and the company's physical platform construction progress, the
company plans to establish industry credit customer system by providing targeted financial services in the
industry upstream, midstream and downstream, and penetrates the jewelry financial services throughout the
industry chain. In the future, take use of online and offline channels to launch financial products and financing
solutions, and gradually establish the finance industry closed loop of supply chain finance, commercial factoring,
guarantee business, finance leasing, internet finance and other services. As a link, the financial services platform
will deeply integrate into Shuibei jewelry industry park physical platform, regional channel platform and regional
retail terminal platform business, and become an important support for the company's future business.
(vi) Jewelry industry ecosphere
Finally, through the landing and implementation of above planning, the company takes the physical platform and
the regional platform located in Shuibei industry park as the entry points and the regional channel platform and
retail terminal platform as the grasps to build the comprehensive jewelry financial services for the whole industry
chain, transaction services, design and entrepreneur services for the whole industry chain, one side links with
industries, capital, and business partners, and another side links with the mutual supports and interconnection
between designers, products, users, platforms, sections and services so as to jointly build the third - party service
platform for jewelry industry and create jewelry industry ecosphere.


III The company’s business plan
(i) Review and summary
In the previous year, the company established the development strategy and 2016 business plan. During the
reporting period, in the aspect of transformation business, the company has had a better understanding about the
characteristics of jewelry industry, the core links of industrial chain and pain points of enterprises, and tried the
implementation and landing of transformation business in accordance with the development strategy, closely
centered on the strategic thinking of transforming to be integrated service operators in jewelry industry, fully
promoted the transformation, adopted various means to drive the implementation of business model, and made
some progress in various platform projects; in the aspect of internal management,
the company has strengthened internal control, intensified budget enforcement, controlled costs, reduced costs,
improved the control and management capabilities to existing business, and the annual business tasks have been
successfully completed.


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(ii) Business plan in 2017
1, Steadily improve the existing business profitability
In 2017, the stock business shall still be an important part of the company's business scale and profit guarantee. As
for the car business, the company will strictly control various costs and expenses, strengthen the controls to
enterprise and operating departments, optimize the car sales structure, multidimensionally develop income
projects, and seek profit growth; as for the property leasing and services, the company will optimize the structure
and vitalize the resources, enhance the property leasing grade, fully tap the potential utilization of self-use housing
so as to enhance the profitability and increase rental income. For effective use and improve efficiency of resources,
the company to plan and deploy the company's existing properties in 2017. According to the current situation of
the property upgrading program, provide support to the company to transform the jewelry industry and a
physical platform.
2, Rapidly promote the implementation of transformation business
The company will steadily and rapidly promote the transformation work in accordance with the established
strategic direction: on the one hand, achieve the opening and operation of Tellus Shuibei Jewelry Building as soon
as possible, timely promote the development and construction of No. 3 block at Tellus Gman Industrial Park
(Phase II); On the other hand, promote the implementation of regional channel platform and retail terminal
platform, and refine the implementation program and path for design, entrepreneurial platform and financial
services. With the opportunity of strategic transformation, strive to expand businesses, improve the company’s
efficiency, and reward the investors.
3, Establish mechanism for reserve of talents
Improve the talent, assessment incentives and other supporting measures and the training mechanism for reserve
management personnel, implement the talent training of key positions, strengthen the training and management
effects, and promote the rational allocation of human resources; reserve the professionals for transformation in
advance according to the needs so as to meet the needs of the company’s business transformation and projects
landing.
4, Strengthen the cultural construction
Strengthen the party building, continue to deeply carry out "two studies and one do" and anti-corruption work,
lead the corporate culture construction by party building, create positive, courageous work atmosphere full of
positive energy, and promote the healthy development of the enterprise.
(iii) Funds required for the company’s future development
The company has completed the non-public offering of shares in March 2015, and the raised funds have all been
in the account. The company will strictly follow the placement supervision methods to regulate the arrangements
for the expenditure of funds so as to maximize the effectiveness of raised funds. At the same time, the company
will maximize the use of temporary idle funds, actively carry out cash management and improve the use
efficiency of funds.
In the future, in order to enhance the business development capability, the company will make full use of the
various financial instruments in the domestic and overseas markets through the pooling of funds, reduce the cost
of capital use, further expand the financing channels, and innovate the financing methods so as to meet the capital


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needs for development.
(iv) Possible risks and response measures
1, Construction in progress: the project construction and development plans and completion plans may be affected
by the following force majeure factors:
       (1) Changes in laws and regulations may have an impact on the project development;
       (2) The license procedures processing of the audit institutions to the development project may have an
impact on the development progress of the project;
       (3) The demolition progress of the project involving demolition may have an impact on the project
progress;
       (4) Significant weather changes may have an impact on the project progress;
       (5) Other unpredictable major events may have impacts on the project progress.
2, Existing business: the current situation of jewelry industry is grim, although the company’s operating
performance is in an opposite trend and has turned losses into gains, the relevant industry has not yet formed core
competitiveness, before the jewelry project producing benefits, the company still needs to rely on the existing
business to maintain profitability, and faces greater operating pressure. The company will be market-oriented,
optimize and adjust the main business structure, fully revitalize its own resources, improve business management
and cost control level, and enhance the profitability of existing main businesses.
3, Transformational business: through the repeated market researches in the past two years, the company has a
more clear understanding about the characteristics of jewelry industry, the core links of industrial chain and the
corporate pain point, and begins to try to implement the transformational business. But the market research still
has some limitations, there are large uncertainties whether the platform can graft the jewelry financial services to
leverage the entire supply chain. From the external environment, 2016 is a serious year of the jewelry industry
shuffling, there are still uncertainties whether the industry can bottom out. In this regard, the company will
strengthen the transformation faith, carefully lay out, seek the industry value depression at the low-tide period,
strengthen the risk control, build operation teams and regulatory agencies based on the company's own staff, and
ensure that the landed projects are efficient and controllable.




X. Reception of research, communication and interview
1. In the report period, reception of research, communication and interview
□ Applicable   √Not applicable
No reception of research, communication and interview in the Period




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                                        Section V. Iimportant Events

I. Profit distribution plan of common stock and capitalizing of common reserves plan

Formulation, Implementation and Adjustment of common stock Profit Distribution Policy Especially Cash Dividend policy during
the Reporting Period
√Applicable □ Not applicable

The company attaches great importance to the reasonable returns for investors, the Articles of Association clearly
defines the standards and proportions of cash dividends, the decision-making procedures and mechanisms, and the
form of profit distribution. The company strictly complies with the Articles of Association and the resolutions of
the shareholders' general meeting, the dividends standards and proportions are clear, relevant decision-making
procedures and mechanisms are complete, the independent directors are responsible and give play to their duties,
the medium and small shareholders have the opportunities to express their opinions and demands, and the
legitimate rights and interests of medium and small shareholders are fully maintained. During the reporting period,
the company has not implemented profit distribution.


                                              Special description on cash dividend policy

Whether it meets the requirements of the Article of Association
                                                                    Y
or the Resolution of the General Meeting (Y/N):

Whether the bonus standards and proportion is clear and
                                                                    Y
well-defined (Y/N):

Whether has a completed relevant decision-making procedures
                                                                    Y
and mechanism (Y/N):

Whether independent directors fulfill duties and play a due role
                                                                    Y
(Y/N):

Minority shareholders whether has opportunity of full expression
and appeals, the legal interest of the minority are being protected Y
totally (Y/N):

As for the adjustment and change of cash bonus policy, the
condition and procedures whether meets regulations and              Y
transparent (Y/N):

Distribution plan (pre-pan) for common stock dividends, capitalization scheme of capital reserve (pre-plan) in latest three years
(including this period)
The parent Company’s retained profit ended as 2014 and 2015 was -109673700 Yuan and -91388900 Yuan respectively, which is no
profit distribution and cash bonus carried out for fails to meet the condition of dividends; the net profit attributable to shareholder of
parent Company in consoldiation statement for year of 2016 was 27,193,562.63, the retained profit in consoliate statement ended as
31st December 2016 was 30,935,823.12 Yuan, retaiend profit of the parent Company amounting to -55,254,452.82 Yuan, the year of
2016 has no plan of profit distribution and capitalization scheme due to the negotive retained profit from parent Company.


Cash dividend of common stock in latest three years (including the reporting period)



                                                                   34
                                                                                        深圳市特力(集团)股份有限公司 2016 年年度报告全文


                                                                                                                                                In RMB

                                                         Net profit              Ratio in net profit
                                                       attributable to             attributable to
                                                       common stock               common stock
   Year for bonus              Amount for cash         shareholders of            shareholders of          Amount for cash      Proportion for cash
           shares             bonus (tax included)   listed Company in            listed Company         bonus by other ways bonus by other ways
                                                        consolidation              contained in
                                                     statement for bonus           consolidation
                                                              year                   statement

2016                                          0.00           27,193,562.63                     0.00%                     0.00                   0.00%

2015                                          0.00           42,768,789.52                     0.00%                     0.00                   0.00%

2014                                          0.00           10,345,217.67                     0.00%                     0.00                   0.00%

The Company gains profits in reporting period and the retained profit of common stock shareholders provided by parent Company is
positive but no plan of cash dividend proposed of common stock
□ Applicable √ Not applicable


II. Profit distribution plan and capitalizing of common reserves plan for the Period

□ Applicable √ Not applicable
The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve either for
the year


III. Implementation of commitment

1. Commitments that the Company, shareholders, actual controller, offeror, directors, supervisors, senior
management or other related parties have fulfilled during the reporting period and have not yet fulfilled by
the end of reporting period
√Applicable        □ Not applicable



                                   Type of
                                                                                                                                Commit
Commitm                                                                                                            Commitmen           Implementa
                    Promise      commitment                     Content of commitments                                           ment
  ents                                                                                                               t date               tion
                                                                                                                                 term
                                        s
                                              (I) Commitments during the work of Share Merger                                           Other
                                              Reform of the Company:                                                                    commitmen
                                              1. Commitments on Lock-up period                                                          t has
                                              (1) In accordance with the Measures for the                            completed,
Commitm
                                Commitmen
ents   for                                   Administration of the Share Merger Reform of Listed            Long-ter the special
                                ts for share
share      SDG                                                                                   2005-12-25
                                merger       Companies, SDG would abide by the various laws,                m        commitmen
merger
                                reform
reform                                       regulations and rules, and perform its statutory                        t of
                                             commitment duty.                                                        incentive
                                              (2)    Apart    from    the    above-mentioned           statutory                        mechanism
                                              commitment, SDG also made the following special                                           has


                                                                            35
                                     深圳市特力(集团)股份有限公司 2016 年年度报告全文


commitment: with 36 months since the day the reform                      exempted
plan starts to take effect, SDG would not list at
Shenzhen Stock Exchange and sell the shares of Tellus
it held (except for the shares used to promote the
administration level of Tellus).
(3) The administration level would abide by the laws,
regulations and rules, and perform its statutory
commitment duty.
(4) SDG made the commitment: “The Promiser hereby
promises that, if the Promiser failed to fulfill its
commitment or not fully fulfill its commitment, it
would compensate other shareholders for their losses
suffered thereafter”.
(5) SDG declared: “The Promiser would dutifully fulfill
its commitments and shoulder corresponding legal
responsibilities. The Promiser would transfer the shares
held by it only if the assignee agree and have the ability
to shoulder the commitment responsibility.”
2. Special commitment concerning the incentive
mechanism
In order to effectively boost the core management level
and business backbones for long, SDG would take out
its shares, not exceeding 10% in total number after the
Share Merger Reform, and apply them to the boost of
the administration level. The shares would be sold to
the Company’s administrative level over 3 years, with
the selling price being the net asset value per share
audited during the period nearest to the implementation.
Before the implementation of the promoting plan by
share selling each year, the administration level must
prepay the Company a risk responsibility fund, i.e. 20%
of the planned selling price; Should the work of the
performance examination set by the Board failed to be
finished, the paid risk responsibility fund would not be
refunded and shall be owned by the Company. Detailed
rules concerning the limitations on the administration
level, such as the subscription conditions and risk
responsibility fund, and boost plans would be set by the
Board and submitted to relevant departments for
approval. The implementation of the shares for
promoting would be conducted strictly according to
relevant laws and regulations, and the circulation
conditions of these shares would be in conformity with
relevant regulations set by the Shenzhen Stock



                          36
                                                                           深圳市特力(集团)股份有限公司 2016 年年度报告全文


                                        Exchange.

                                        3. Relevant expenses of this Share Merger Reform of
                                        Tellus would be paid by SDG.

                                        SDG, the controlling shareholder of the Company,
                                        made a special commitment of incentive mechanism in
                                        Share Merger Reform. After that SASAC and Ministry
                                        of Finance jointly issued a “Trial Approach of Equity
                                        Incentive for State-Owned Listed Companies”, and
                                        CSRC issued the “Incentive Management on Shares of
                                        Listed Companies (Trial)”, after comparison, the above
                                       mentioned commitments made by SDG are out of the
                             Commitmen
                             ts for    relevant regulations and requirement, relevant
                                                                                                                         Exempted
                             Share     commitments are not implemented as a result. On 26                      2016-6-
              SDG                                                                                 2014-06-26             performanc
                             Merger     June 2014, the Company actively communicating with                     30
                                                                                                                           e
                             Reform     SDG, and promised that on the premise of subjecting to
                                        applicable laws and regulations and supervision
                                        requirements, continues to support the Company
                                        promote a long-term incentive plan as soon as possible
                                        in stead of the commitments made in share merger
                                        reform, and complete the long-term incentive plan
                                        before 30 June 2016. At that time, the long-term
                                        incentive plan shall be implemented after submit for
                                        deliberation in General Meeting.

Commitm
ents in
report of
acquisition
or equity
change

Commitm
ents in
assets
reorganiza
tion

                                        The commitments to the fulfillment of information
Commitm                                 disclosure about the Company business development
ents make                               are as follows: except for the information has been
              Shenzhen
in initial                              disclosed publicly, the Company has not had the
              Tellus                                                                                           Long-ter Implementi
public                       Other      disclosed information about asset acquisition and 2014-10-17
              Holding Co.,                                                                                     m         ng
offering or                             business development that has not been disclosed
              Ltd.
re-financin                             within one year. In the future, the Company shall
g                                       timely, accurately and adequately disclose the relevant
                                        information according to the progress of new business


                                                                 37
                                                                             深圳市特力(集团)股份有限公司 2016 年年度报告全文


                                      and the related requirements.

Equity
incentive
commitme
nt

                                      In order to avoid the horizontal competition, the
                                      Company’s controlling shareholder, Shenzhen SDG
                                      Co., Ltd., has issued the “commitment letter about the
                                      avoidance of horizontal competition” on May 26, 2014.
                         Horizontal   The full commitment letter is as follows: 1. The                          Long-ter Implementi
             SDG                                                                                   2014-05-26
                         Competition Company and other enterprises controlled by the                            m         ng
                                      Company except Tellus Group haven’t occupied in any
                                      business that could substantially compete with the main
                                      businesses of Tellus Group, and have no horizontal
                                      competition relationship with Tellus Group.

                                      From 2014 to 2016, the Company’s profits will first be
                                      used to cover the losses of previous years; after making
                                      up for losses of previous years, in the premise that the
                                      Company’s profits and cash flow can meet the
                                      Company's      normal     operations     and   long-term
                                      development, reward shareholders, the Company will
Other
                                      implement positive profit distribution approaches to
commitme
                                      reward the shareholders, details are as follows: 1. The
nts for
                                      Company’s profit distribution can adopt cash, stock or
medium
                                      the combination of cash and stock or other methods
and small
                                      permitted by law. The foreign currency conversion rates
shareholde
                                      of domestically listed foreign shares dividend are
rs
             Shenzhen                 calculated according to the standard price of HK dollar
             Tellus      Dividend     against RMB announced by People's Bank of China on                        2016-12
                                                                                                   2014-06-03             Completed
             Holding Co., commitment the first working day after the resolution date of the                     -31
             Ltd.                     shareholders' meeting. The Company prefers to adopt
                                      the cash dividends to distribute profits. In order to
                                      maintain the adaptability between capital expansion and
                                      performance growth, in the premise of ensuring the full
                                      cash dividend distributions and the rationality of equity
                                      scale and equity structure, the Company can adopt the
                                      stock dividend methods to distribute profits. 2.
                                      According to the "Company Law" and other relevant
                                      laws and the provisions of the Company’s "Articles of
                                      Association", following conditions should be satisfied
                                      when the Company implements cash dividends: (1) the
                                      Company's annual distributable profits (i.e. the after-tax
                                      profits after making up for losses and withdrawing



                                                                38
                                        深圳市特力(集团)股份有限公司 2016 年年度报告全文


accumulation       funds)   are   positive      value,   the
implementation of cash dividends will not affect the
Company's subsequent continuing operations; (2) the
audit institution issues the standard audit report with
clean opinion to the Company's annual financial report;
(3) the Company has no significant investment plans or
significant   cash     outlay (except     for   fund-raising
projects). Major investment plans or significant cash
outlay refer to: the accumulated expenditures the
Company plans to used for investments abroad,
acquisition of assets, or purchase of equipments within
the next 12 months reach or exceed 30% of the net
assets audited in the latest period. 3. In the premise of
meeting the conditions of cash dividends and ensuring
the Company’s normal operation and long-term
development, the Company makes cash dividends once
a year in principle, the Company’s board of directors
can propose the Company to make interim cash
dividends     in     accordance   with    the    Company's
profitability and capital demand conditions. The
proportion of cash dividends in profits available for
distribution and in distribution of profits should meet
the following requirements: (1) in principle, the
Company’s profits distributed in cash every year should
not be less than 10% of profit available for distribution
realized in the same year, and the Company’s profits
accumulatively distributed in cash in the last three years
should not be less than 30% of the annual average profit
available for distribution realized in the last three years.
(2) if the Company’s development stage belongs to
mature stage and there is no significant capital
expenditure arrangement, when distributing profits, the
minimum proportion of cash dividends in this profit
distribution should be 80%; (3) if the Company’s
development stage belongs to mature stage and there
are significant capital expenditure arrangements, when
distributing profits, the minimum proportion of cash
dividends in this profit distribution should be 40%; (4)
if the Company’s development stage belongs to growth
stage and there are significant capital expenditure
arrangements, when distributing profits, the minimum
proportion of cash dividends in this profit distribution
should be 20%; when the Company's development
stage is not easy to be differed but there are significant


                            39
                                                                             深圳市特力(集团)股份有限公司 2016 年年度报告全文


                                       capital   expenditure    arrangements,     please   handle
                                       according to the preceding provisions. 4. On the
                                       condition of meeting the cash dividend distribution, if
                                       the Company's operation revenue and net profit grow
                                       fast, and the board of directors considers that the
                                       Company’s equity scale and equity structure are
                                       reasonable, the Company can propose and implement
                                       the dividend distribution plans except proposing the
                                       cash dividend distribution plans. When allocating stock
                                       dividend every time, the stock dividend per 10 shares
                                       should be no less than 1 share. Stock allocation can be
                                       implemented individually or in combination of cash
                                       dividends. When confirming the exact amount of profit
                                       distribution by stock, the Company should fully
                                       consider if the general capital after profit distribution by
                                       stock matches with the Company’s current operation
                                       scale and profit growth rate and consider the impact on
                                       future financing so as to make sure the allocation plans
                                       meet the overall interests of all shareholders.

Completed
on            Y
time(Y/N)

As for the
commitme
nt out of
the
commitme
nt time,      Not applicable
explain the
specific
reasons
and further
plans


2. Concerning assts or project of the Company, which has profit forecast, and reporting period still in
forecasting period, explain reasons of reaching the original profit forecast

□ Applicable √ Not applicable

IV. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable √ Not applicable
No non-operational fund occupation from controlling shareholders and its related party in period.

V. Explanation from Board of Directors, Supervisory Committee and Independent Directors
(if applicable) for “Qualified Opinion” that issued by CPA

                                                                  40
                                                                             深圳市特力(集团)股份有限公司 2016 年年度报告全文


□ Applicable √ Not applicable

VI. Particulars about the changes in aspect of accounting policy, estimates and calculation
method compared with the financial report of last year
□ Applicable     √ Not applicable
No particulars about the changes in aspect of accounting policy, estimates or calculation method in Period.


VII. Major accounting errors within reporting period that needs retrospective restatement

□ Applicable     √ Not applicable
No major accounting errors within reporting period that needs retrospective restatement for the Company in the period.


VIII. Compare with last year’s financial report; explain changes in consolidation statement’s
scope

√Applicable     □Not applicable
Totally 16 enterprises included in consolidate statement for year of 2016, comparing with last year, there are 2 susbidairis inclued:
Anhui Tellus Starlight Jewelry Investment Co., Ltd. and Anhui Tellus Starlight Jinzun Jewelry Co., Ltd.


IX. Appointment and non-reappointment (dismissal) of CPA

Accounting firm appointed

Name of domestic accounting firm                       Ruihua Certified Public Accountants (LLP)

Remuneration for domestic accounting firm (in 10
                                                       55
thousand Yuan)

Continuous life of auditing service for domestic
                                                       3
accounting firm

Name of domestic CPA                                   Yuan Longping, Zhou Xuechun
Re-appointed accounting firms in this period

□Yes     √No
Appointment of internal control auditing accounting firm, financial consultant or sponsor

√Applicable □ Not applicable

In reporting period, Ruihua Certified Public Accountants (LLP) was engaged by the Company as audit institute
for internal control, remuneration amounting as RMB 240,000.



X. Particular about suspended and delisting after annual report disclosed

□ Applicable √ Not applicable


XI. Bankruptcy reorganization

□ Applicable     √ Not applicable

                                                                  41
                                                                               深圳市特力(集团)股份有限公司 2016 年年度报告全文


No bankruptcy reorganization for the Company in reporting period


XII. Significant lawsuits and arbitrations of the Company

□Applicable        √Not applicable
No significant lawsuits and arbitrations occurred in the reporting period


XIII. Penalty and rectification

□ Applicable √ Not applicable
No penalty and rectification for the Company in reporting period.


XIV. Integrity of the Company and its controlling shareholders and actual controllers

□ Applicable √ Not applicable


XV. Implementation of the Company’s stock incentive plan, employee stock ownership plan
or other employee incentives

□ Applicable √ Not applicable
During the reporting period, the Company has no stock incentive plan, employee stock ownership plan or other employee incentives
that have not been implemented.

XVI. Major related transaction
1. Related transaction with routine operation concerned
√Applicable    □Not applicable

                                                                                          Whethe
                                                                                  Trading r over
                                                       Related                                               Availabl
                                                                                                    Clearin
                          Content                     transacti          Proporti limit     the                               Index
                  Type of                                                                           g form      e     Date of
                              of    Pricing Related       on               on in approve approve                                of
 Related Relation related                                                                             for
                           related principl transacti amount              similar                            similar disclosu
  party   ship transacti                                                                            related
                          transacti    e    on price (in 10              transacti d (in 10  d                                disclos
                    on                                                                             transacti market     re
                             on                        thousan           ons (%) thousan limited                                ure
                                                                                                      on
                                                       d Yuan)                                                price
                                                                                  d Yuan) or not
                                                                                          (Y/N)

           Director
           ,
Shenzhen supervis                                                                                  Agreed
Zung Fu    or and     Routine             Referen                                                  by
Tellus     senior     related     House   ce                                                       contract
                                                    530         530       5.97%      530 N                    530
Automobi executiv transacti leasing       market                                                   or
le Service es of the on                   pricing                                                  agreeme
Co., Ltd. Compan                                                                                   nt
           y serves
           director


                                                                    42
                                                                                           深圳市特力(集团)股份有限公司 2016 年年度报告全文


            of the
            enterpri
            se

Total                                            --          --            530       --          530       --          --         --         --         --

Detail of sales return with major
                                            N/A
amount involved

Report the actual implementation of
the daily related transactions which
were projected about their total            N/A
amount by types during the reporting
period (if applicable)

Reasons for major differences
between trading price and market            N/A
reference price

2. Related transactions by assets acquisition and sold
□ Applicable      √ Not applicable
No related transactions by assets acquisition and sold for the Company in reporting period

3. Main related transactions of mutual investment outside
□ Applicable      √ Not applicable
No main related transactions of mutual investment outside for the Company in reporting period

4. Contact of related credit and debt
√Applicable □Not applicable
Whether the Company had non-operating contact of related credit and debt
√ Yes   □ No
Claim receivable from related party:

                                                Whether                           Current
                                                              Balance at                        Current                           Current
                                                  has                             newly                                                           Balance at
                                                             period-begi                        recovery                          interest
  Related        Relationshi               non-busines                            added                                                           period-end
                                 Causes                            n (10                          (10           Interest rate          (10
    party            p                          s capital                            (10                                                      (10 thousand
                                                                  thousand                      thousand                         thousand
                                            occupying                            thousand                                                           Yuan)
                                                                   Yuan)                         Yuan)                             Yuan)
                                                 or not                           Yuan)

Influence on operation
results and financial
                               Not applicable
status from related credit
and debts

Debts payable to related party:

                                                       Balance at          Current          Current                             Current       Balance at
                                                      period-begin newly added              recovery                            interest      period-end
 Related party Relationship            Causes                                                             Interest rate
                                                      (10 thousand (10 thousand (10 thousand                                (10 thousand (10 thousand
                                                          Yuan)            Yuan)             Yuan)                              Yuan)              Yuan)



                                                                             43
                                                                               深圳市特力(集团)股份有限公司 2016 年年度报告全文


                                 Loan
                Majority
SDG                              principal for         6,300                         6,300                          268                   0
                shareholder
                                 the HQ

                                 Intercourse
                Majority
SDG                              funds and             4,794             321         1,929                                        3,186
                shareholder
                                 loan interest

                                 Loan
                                 principal of
                Majority         Hurari
SDG                                                    1,887                             8                           53           1,879
                shareholder      Company
                                 and other
                                 emperies

Impact on operation results
                                 Total profit decreased 3.21 million Yuan due to the interest expenses increased in the Year
and financial status


5. Other related transactions

□ Applicable   √ Not applicable
The Company had no other significant related transactions in reporting period.


XVII. Significant contract and implementations

1. Trusteeship, contract and leasing

(1) Trusteeship
□ Applicable   √ Not applicable
No trusteeship for the Company in reporting period

(2) Contract
□ Applicable   √ Not applicable
No contract for the Company in reporting period

(3) Leasing
□ Applicable   √ Not applicable
No leasing for the Company in reporting period
2. Major guarantees
√Applicable □ Not applicable
(1) Guarantees
                                                                                                                    In 10 thousand Yuan

                  Particulars about the external guarantee of the Company (Barring the guarantee for subsidiaries)
                     Related
                                                     Actual date of                                                            Guarante
                    Announce                                              Actual                                  Implemen
Name of the Company                       Guarantee happening (Date                    Guarantee     Guarantee
                       ment                                              guarantee                                               e for
    guaranteed                              limit      of signing                        type          term        ted (Y/N)
                    disclosure                                             limit
                                                      agreement)                                                                related
                       date


                                                                    44
                                                                            深圳市特力(集团)股份有限公司 2016 年年度报告全文


                                                                                                                                      party
                                                                                                                                      (Y/N)

                                                                                                      To the expire
Shenzhen Zung Fu
                                                                                                      date of joint
Tellus Automobile      2014-09-30          3,500 2007-04-17                 3,500 Pledged                             N           Y
                                                                                                      venture
Service Co., Ltd.
                                                                                                      contract
                                                                   Total    actual    occurred
Total approving external guarantee
                                                                 0 external guarantee in report                                         3,500
in report period (A1)
                                                                   period (A2)
                                                                   Total actual balance of
Total approved external guarantee
                                                             3,500 external guarantee at the                                            3,500
at the end of report period ( A3)
                                                                   end of report period (A4)
                                           Guarantee of the Company and the subsidiaries

                                                                                                                                  Guarante
                     Related
                                                  Actual date of                                                                      e for
                    Announce                                            Actual                                        Implemen
Name of the Company                    Guarantee happening (Date                     Guarantee         Guarantee
                       ment                                            guarantee                                                   related
    guaranteed                           limit      of signing                         type              term         ted (Y/N)
                    disclosure                                           limit
                                                   agreement)                                                                         party
                       date
                                                                                                                                      (Y/N)

                                                                                                      24 June 2014
Shenzhen Zhongtian                                                                  Joint liability
                       2014-05-07         30,000 2014-06-24                30,000                     to 23 June      N           Y
Industrial Co., Ltd                                                                 guaranty
                                                                                                      2024

Shenzhen Zhongtian                                                                  General           To 25 June
                       2014-03-17          4,140 2014-03-17                 4,140                                     Y           Y
Industrial Co., Ltd                                                                 guarantee         2016
                                                                   Total amount of actual
Total amount of approving
                                                                   occurred guarantee for
guarantee for subsidiaries in report                             0                                                                     34,140
                                                                   subsidiaries in report period
period (B1)
                                                                   (B2)
                                                                   Total balance of actual
Total    amount      of   approved
                                                                   guarantee for subsidiaries at
guarantee for subsidiaries at the                           30,000                                                                     30,000
                                                                   the end of reporting period
end of reporting period (B3)
                                                                   (B4)
                                          Guarantee of the subsidiaries and the subsidiaries

                                                                                                                                  Guarante
                     Related
                                          Actual date of                                                                              e for
                    Announce                                            Actual                                        Implemen
Name of the Company            Guarantee happening (Date                             Guarantee         Guarantee
                       ment                                            guarantee                                                   related
    guaranteed                   limit      of signing                                 type              term         ted (Y/N)
                    disclosure                                           limit
                                           agreement)                                                                                 party
                       date
                                                                                                                                      (Y/N)
                                                                    Total amount of actual
Total amount of approving
                                                                    occurred guarantee for
guarantee for subsidiaries in report                              0                                                                           0
                                                                    subsidiaries in report period
period (C1)
                                                                    (C2)
                                                                    Total balance of actual
Total    amount      of   approved
                                                                    guarantee for subsidiaries at
guarantee for subsidiaries at the                                 0                                                                           0
                                                                    the end of reporting period
end of reporting period (C3)
                                                                    (C4)
                       Total amount of guarantee of the Company( total of three abovementioned guarantee)
Total amount of approving                                           Total amount of actual
guarantee in report period                                        0 occurred guarantee in report                                       37,640
(A1+B1+C1)                                                          period (A2+B2+C2)



                                                                  45
                                                                                深圳市特力(集团)股份有限公司 2016 年年度报告全文


Total amount of approved                                              Total balance of actual
guarantee at the end of report                                 33,500 guarantee at the end of                                         33,500
period (A3+B3+C3)                                                     report period (A4+B4+C4)
The proportion of the total amount of actually guarantee in the net
                                                                                                                                      37.42%
assets of the Company (that is A4+ B4+C4)

Including:

Amount of guarantee for shareholders, actual controller and its
                                                                                                                                               0
related parties(D)

Proportion of total amount of guarantee in net assets of the
                                                                                                                                               0
Company exceed 50%(F)

Explanations on possibly bearing joint and several liquidating
                                                                       N/A
responsibilities for undue guarantees (if applicable)

Explanations on external guarantee against regulated procedures
                                                                       N/A
(if applicable)
Explanation on guarantee with composite way


 (2)Guarantee outside against the regulation


□Applicable √Not applicable
No guarantee outside against the regulation in Period.


3. Entrust others to cash asset management

(1) Trust financing

√Applicable       □Not applicable
                                                                                                                         In 10 thousand Yuan

                                                                                                 Amount
                                                                                                of reserve                            Gains/l
                                                                                    Principal      for                                osses
               Whether                                                                                                     Actual
                                        Trust                            Criteria   actually    devaluati                             actuall
                 related                                                                                     Anticipat gains/loss
  Name                       Type      financing Start date End date for fixing collected         on of                                 y
               trade or                                                                                      ed income      es in
                                       amount                            reward      in the     withdrawi                             collect
                  not                                                                                                      period
                                                                                     Period      ng (if                                ed in
                                                                                                applicable                            period
                                                                                                    )

                                                                        Repayme
Shenzhen
                                                                        nt of
Huali
                                                                        principal
Branch of                  Guarantee               2016-01- 2016-04-
             N                             3,000                        and             3,000                    23.65        23.65    23.65
Everbrigh                  d income                18       18
                                                                        interest
t Bank
                                                                        payment
Co., Ltd.
                                                                        at


                                                                   46
                                                                  深圳市特力(集团)股份有限公司 2016 年年度报告全文


                                                          maturity

                                                          Repayme
                                                          nt of
Shenzhen
                                                          principal
Branch of        Guarantee
                                      2016-02- 2016-05- and
Everbrigh N      d floating   3,000                                      3,000              23.65    23.65   23.65
                                      15       15         interest
t Bank           income
                                                          payment
Co., Ltd.
                                                          at
                                                          maturity

                                                          Repayme
                                                          nt of
Shenzhen
                                                          principal
Branch of        Guarantee
                                      2016-02- 2016-06- and
China        N   d floating   3,000                                      3,000              24.32    24.32   24.32
                                      26       02         interest
CITIC            income
                                                          payment
Bank
                                                          at
                                                          maturity

                                                          Repayme
Shenzhen                                                  nt of
Tian An                                                   principal
                 Guarantee
Branch of                             2016-03- 2016-09- and
             N   d floating   3,000                                      3,000               50.6     50.6   50.60
Industrial                            31       14         interest
                 income
Bank Co.,                                                 payment
Ltd.                                                      at
                                                          maturity

                                                          Repayme
Shenzhen                                                  nt of
Huali                                                     principal
Branch of        Guarantee            2016-05- 2016-08- and
             N                2,000                                      2,000              15.78    15.78   15.78
Everbrigh        d income             20       20         interest
t Bank                                                    payment
Co., Ltd.                                                 at
                                                          maturity

                                                          Repayme
Shenzhen                                                  nt of
Huali                                                     principal
Branch of        Guarantee            2016-05- 2016-07- and
             N                2,000                                      2,000              10.02    10.02   10.02
Everbrigh        d income             20       20         interest
t Bank                                                    payment
Co., Ltd.                                                 at
                                                          maturity

Shenzhen N       Guarantee    2,000 2016-05- 2016-06- Repayme            2,000               4.58     4.58    4.58



                                                     47
                                                                    深圳市特力(集团)股份有限公司 2016 年年度报告全文


Huali            d income             20         20         nt of
Branch of                                                   principal
Everbrigh                                                   and
t Bank                                                      interest
Co., Ltd.                                                   payment
                                                            at
                                                            maturity

                                                            Repayme
Shenzhen                                                    nt of
Tian An                                                     principal
                 Guarantee
Branch of                             2016-05- 2016-07- and
             N   d floating   3,000                                        3,000              14.05    14.05   14.05
Industrial                            20         20         interest
                 income
Bank Co.,                                                   payment
Ltd.                                                        at
                                                            maturity

                                                            Repayme
Business
                                                            nt of
departme
                                                            principal
nt of            Guarantee
                                      2016-05-              and
Shenzhen N       d floating   2,000              T+0                           0                                  0
                                      23                    interest
Branch of        income
                                                            payment
Jiangsu
                                                            at
Bank
                                                            maturity

                                                            Repayme
Shenzhen                                                    nt of
Jingtian                                                    principal
Branch of        Guarantee            2016-06- 2016-09- and
             N                3,000                                        3,000              24.16    12.29   24.16
China            d income             17         23         interest
CITIC                                                       payment
Bank                                                        at
                                                            maturity

Business                                                    Repayme
departme                                                    nt of
nt of                                                       principal
Shenzhen         Guarantee            2016-06- 2016-09- and
             N                1,000                                        1,000               8.05    12.29    8.05
Branch of        d income             17         23         interest
China                                                       payment
CITIC                                                       at
Bank                                                        maturity

Shenzhen                                                    Repayme
Huali            Guarantee            2016-07- 2016-10- nt of
             N                2,000                                        2,000              15.38    12.29   15.38
Branch of        d income             01         01         principal
Everbrigh                                                   and


                                                       48
                                                                  深圳市特力(集团)股份有限公司 2016 年年度报告全文


t Bank                                                    interest
Co., Ltd.                                                 payment
                                                          at
                                                          maturity

                                                          Repayme
Shenzhen                                                  nt of
Huali                                                     principal
Branch of        Guarantee            2016-07- 2016-09- and
             N                2,000                                      2,000                9.5    12.29     9.5
Everbrigh        d income             22       22         interest
t Bank                                                    payment
Co., Ltd.                                                 at
                                                          maturity

                                                          Repayme
Shenzhen                                                  nt of
Tian An                                                   principal
                 Guarantee
Branch of                             2016-08- 2016-11-1 and
             N   d floating   2,000                                      2,000              13.32    12.29   13.32
Industrial                            18       6          interest
                 income
Bank Co.,                                                 payment
Ltd.                                                      at
                                                          maturity

                                                          Repayme
Shenzhen                                                  nt of
Huali                                                     principal
Branch of        Guarantee            2016-08- 2016-11-3 and
             N                2,000                                      2,000                15     12.29   15.00
Everbrigh        d income             31       0          interest
t Bank                                                    payment
Co., Ltd.                                                 at
                                                          maturity

                                                          Repayme
Shenzhen                                                  nt of
Tian An                                                   principal
                 Guarantee
Branch of                             2016-08- 2016-11-1 and
             N   d floating   2,000                                      2,000              13.32    12.29   13.32
Industrial                            18       6          interest
                 income
Bank Co.,                                                 payment
Ltd.                                                      at
                                                          maturity

                                                          Repayme
Shenzhen                                                  nt of
Branch of        Guarantee                                principal
                                      2016-08- 2016-12-
China        N   d floating   1,000                       and            1,000               8.26    12.29    8.26
                                      19       01
CITIC            income                                   interest
Bank                                                      payment
                                                          at


                                                     49
                                                                 深圳市特力(集团)股份有限公司 2016 年年度报告全文


                                                         maturity

                                                         Repayme
                                                         nt of
Shenzhen
                                                         principal
Branch of       Guarantee
                                     2016-09- 2016-12- and
China       N   d floating   2,000                                      2,000              15.25    12.29   15.25
                                     23       28         interest
CITIC           income
                                                         payment
Bank
                                                         at
                                                         maturity

                                                         Repayme
                                                         nt of
Shenzhen
                                                         principal
Branch of       Guarantee
                                     2016-09- 2016-12- and
China       N   d floating   3,000                                      3,000              22.88    12.29   22.88
                                     23       28         interest
CITIC           income
                                                         payment
Bank
                                                         at
                                                         maturity

                                                         Repayme
                                                         nt of
Shenzhen
                                                         principal
Branch of       Guarantee
                                     2016-09- 2016-12- and
China       N   d floating   3,000                                      3,000              21.69    12.29   21.69
                                     30       30         interest
CITIC           income
                                                         payment
Bank
                                                         at
                                                         maturity

                                                         Repayme
                                                         nt of
Shenzhen
                                                         principal
Branch of       Guarantee
                                     2016-09- 2016-12- and
China       N   d floating   1,000                                      1,000               7.23    12.29    7.23
                                     30       30         interest
CITIC           income
                                                         payment
Bank
                                                         at
                                                         maturity

                                                         Repayme
Shenzhen                                                 nt of
Huali                                                    principal
Branch of       Guarantee            2016-10- 2017-01- and
            N                2,000                                          0              14.03    12.29      0
Everbrigh       d income             14       14         interest
t Bank                                                   payment
Co., Ltd.                                                at
                                                         maturity

Shenzhen N      Guarantee    4,000 2016-11-2 2017-02- Repayme               0              33.04       00



                                                    50
                                                                                      深圳市特力(集团)股份有限公司 2016 年年度报告全文


Branch of               d floating                4         22             nt of
Industrial              income                                             principal
Bank                                                                       and
                                                                           interest
                                                                           payment
                                                                           at
                                                                           maturity

                                                                           Repayme
Shenzhen                                                                   nt of
Huali                                                                      principal
Branch of               Guarantee                 2016-12- 2017-03- and
             N                            2,000                                                  0              14.75     4.92 0
Everbrigh               d income                  02        02             interest
t Bank                                                                     payment
Co., Ltd.                                                                  at
                                                                           maturity

                                                                           Repayme
Shenzhen                                                                   nt of
Jingtian                                                                   principal
                        Guarantee
Branch of                                         2016-12- 2017-03- and
             N          d floating        1,000                                                  0               7.48       00
China                                             07        08             interest
                        income
CITIC                                                                      payment
Bank                                                                       at
                                                                           maturity

Total                                    56,000        --        --              --         45,000             409.99    357.9     --

Capital resource                     Idle fund-raising and self-owned fund

Principal uncollected for overdue
                                                                                                                                        0
and accumulated earnings

Lawsuit involved (if applicable) Not applicable

Disclosure date for approval
from the Board for trust             2016-04-29
financing (if applicable)

Disclosure date for approval
from board of shareholders for       2016-05-21
trust financing (if applicable)

                                     Yes, the decision-making process that the Company uses idle raised funds and part of the
                                     self-owned fund to purchase financial products meets the "Articles of Association", "Raised
                                     Funds Management System" and other relevant provisions. Using idle raised funds to purchase
Trust financing plan in the future
                                     financial products is implemented in the premise of not affecting the main business. A certain
                                     amount of investment income can be obtained by properly investing in the low-risk financial
                                     products so as to improve the Company's capital usage efficiency.

 (2) Entrusted loans


                                                                      51
                                                                            深圳市特力(集团)股份有限公司 2016 年年度报告全文


□ Applicable    √ Not applicable
The Company had no entrusted loans in the reporting period.

4. Other material contracts
□ Applicable    √ Not applicable
No other material contracts for the Company in reporting period


XVIII. Social responsibility

1. Performance of taking targeted measures in poverty alleviation

√Applicable    □Not applicable


(1) Annual poverty alleviation in the Year

During the period, the Company particilpate in the targeted measures in poverty alleviation for Libai Villege, Shangguang Town,
Dongyuan County, Heyuan City, Guangdong Province. We have staioned in the villege, and completed the identification, verification
and file-building works through visting the poverty family. Preparing for the formulation of pverty alleviation plan and industry of
alleviation by visiting villegaes and towns around the county.


(2) Poverty alleviation in last Year


                      Target                       Measurement unit                     Numbers/ implementation

i. Overall                                                ——                                     ——

ii. Invested by specific project                          ——                                     ——

  1. Industrial development poverty                       ——                                     ——

  2. Transfer employment                                  ——                                     ——

  3.Relocation the poor                                   ——                                     ——

  4.Education poverty                                     ——                                     ——

  5.Health poverty alleviation                            ——                                     ——

  6.Ecological protection and poverty
                                                          ——                                     ——
alleviation

  7.Fallback protection                                   ——                                     ——

  8.Social poverty alleviation                            ——                                     ——

  9. Other                                                ——                                     ——

iii. Awards (content and grade)                           ——                                     ——


(3) Follow-up of targeted poverty alleviation

In 2017, the Company plans to formulated a target poverty alleviation scheme, participate in improving the facility in helping
villegae, changed the enviornment of the villegae to promote the economic progress in those helping areas.



                                                                  52
                                                                          深圳市特力(集团)股份有限公司 2016 年年度报告全文


2. Performance of other social responsibility

The Company always takes returning shareholders, staff achievements, and repaying society as its own duties. In
line with the fair and just principle, the company actively maintains the legitimate rights and interests of
shareholders; positively promotes the realization of corporate value, achieves self-value, creates a working
atmosphere that enterprises loves employees and employees love enterprises, and realizes harmonious
development together; positively returns to the society and the public, strives to achieve the harmony and
sustainable development of company and society.


The listed Company and its subsidiary whether belongs to the key sewage units released from environmental protection department

N

Issued social responsibility report
□Y    √N


XIX. Explanation on other significant events

□ Applicable √ Not applicable
The Company had no explanation on other significant events in the reporting period.


XX. Significant event of subsidiary of the Company

□ Applicable √ Not applicable




                                                                53
                                                                                    深圳市特力(集团)股份有限公司 2016 年年度报告全文



    Section VI. Changes in Shares and Particulars about Shareholders
I. Changes in Share Capital
1. Changes in Share Capital
                                                                                                                                      In Share

                                        Before change              Increase/decrease in this time (+ , - )                   After change

                                                                                     Capitaliza
                                                                        Bonus         tion of
                                       Amount    Ratio     New issue                               Other       Subtotal   Amount       Ratio
                                                                            share     public
                                                                                      reserve

                                   91,587,05                                                      -14,587,0 -14,587,0 77,000,00
I. Restricted shares                             30.81%                                                                                25.90%
                                             6                                                          56           56          0

2. State-owned corporation         20,587,05                                                      -14,587,0 -14,587,0
                                                  6.93%                                                                   6,000,000     2.02%
shares                                       6                                                          56           56

                                   71,000,00                                                                              71,000,00
3. Other domestic shares                         23.88%                                                                                23.88%
                                             0                                                                                   0

Including: domestic legal          71,000,00                                                                              71,000,00
                                                 23.88%                                                                                23.88%
person’s shares                             0                                                                                   0

                                   205,694,5                                                      14,587,05 14,587,05 220,281,6
II. Un-restricted shares                         69.19%                                                                                74.10%
                                            44                                                             6          6         00

                                   179,294,5                                                      14,587,05 14,587,05 193,881,6
1. RMB ordinary shares                           60.31%                                                                                65.22%
                                            44                                                             6          6         00

2. Domestically listed foreign 26,400,00                                                                                  26,400,00
                                                  8.88%                                                                                 8.88%
shares                                       0                                                                                   0

                                   297,281,6                                                                              297,281,6
III. Total shares                                100.00%                                                                              100.00%
                                            00                                                                                  00

Reasons for share changed
√ Applicable □ Not applicable

In reporting period, totally 14,587,056 shares are relased for trading from majority shareholders SDG, presenting
4.91% of the total shares.
Approval of share changed
√ Applicable □ Not applicable

On 15 August 2016, according to the commitment made by majority shareholders SDG in non-tradable shares
reform, the shares held by SDG are due for trading, totally 14,587,056 shares are released for trading, with 4.91%
in total share capital of the Company. Found more in Suggestive Announcement of Restricted Shares Released
published on Securities Times, Hong Kong Commercial Daily and Juchao Website
Ownership transfer of share changes
□Applicable        √Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common
shareholders of Company in latest year and period


                                                                       54
                                                                                  深圳市特力(集团)股份有限公司 2016 年年度报告全文


□ Applicable     √Not applicable


Other information necessary to disclose for the Company or need to disclosed under requirement from security regulators
□Applicable    √ Not applicable


2. Changes of restricted shares

√ Applicable □ Not applicable
                                                                                                                                    In Share

                                                                 Restricted
                                                                   Shares
                       Opening shares        Shares released      Increased         Ending shares      Restricted
   Shareholders                                                                                                             Date for released
                          restricted            in Period            In               restricted        reasons
                                                                     the
                                                                   Period

SDG                         20,587,056           -14,587,056                  0           6,000,000 Additional issue 2016-8-15

Total                       20,587,056           -14,587,056                  0           6,000,000          --                    --


II. Securities issuance and listing

1. Security offering (without preferred stock) in Reporting Period

□Applicable    √ Not applicable


2. Changes of total shares and shareholders structure as well as explanation on changes of assets and
liability structure

□Applicable    √ Not applicable


3. Existing internal staff shares

□ Applicable √ Not applicable

III. Particulars about shareholder and actual controller of the Company
1. Amount of shareholders of the Company and particulars about shares holding
                                                                                                                                    In Share

                                                                                                           Total preference
                                                                      Total preference
                                     Total common                                                          shareholders
Total common                                                          shareholders with
                                     stock                                                                 with voting
stock                                                                 voting rights
                                     shareholders at                                                       rights recovered
shareholders in            66,362                              60,327 recovered at end of              0                                    0
                                     end of last month                                                     at end of last
reporting                                                             reporting period (if
                                     before annual                                                         month before
period-end                                                            applicable) (found
                                     report disclosed                                                      annual report
                                                                      in note8)
                                                                                                           disclosed (if

                                                                     55
                                                                                   深圳市特力(集团)股份有限公司 2016 年年度报告全文


                                                                                                             applicable)
                                                                                                             (found in note8)

                            Particulars about shares held above 5% by shareholders or top ten shareholders

                                                        Total                                            Number of share pledged/frozen
                                                                                 Amount      Amount
                                                     sharehold
                                           Proportio           Changes       of         of
   Full name of           Nature of          n of      ers at
                                                               in report restricted un-restrict
   Shareholders          shareholder        shares the end of
                                                                                                         State of share         Amount
                                             held               period     shares ed shares
                                                       report
                                                                            held       held
                                                       period

                      State-owned                     145,925,2 -5,945,30                    139,925,2
SDG                                          49.09%                              6,000,000
                      corporation                               56 4                               56

Shenzhen Capital
Fortune Jewelry
                      Domestic non
Industry                                              71,000,00                  71,000,00
                      state-owned            23.88%
Investment                                                       0                      0
                      corporate
Enterprise (limited
partnership)

KGI ASIA              Foreign                                        +3,174,05
                                              1.34% 3,991,269                                3,991,269
LIMITED               corporation                                    8

GUOTAI JUNAN
SECURITIES(HO Foreign
                                              0.36% 1,088,204 -85028                         1,088,204
NGKONG)               corporation
LIMITED

                      Foreign nature
Weng Zhengwen                                 0.20%    579,028 +16,028                        579,028
                      person

                      Domestic nature
Li Guangxin                                   0.11%    322,558 +322,558                       322,558
                      person

                      Domestic nature
He Xing                                       0.10%    300,000 +25,000                        300,000
                      person

                      Domestic nature
Zeng Huiming                                  0.09%    270,000 -130,000                       270,000
                      person

                      Domestic nature
Huang Chuyun                                  0.09%    266,500                                266,500
                      person

                      Domestic nature
Zhang Gengshu                                 0.06%    185,523 -38,127                        185,523
                      person

Strategy investors or general
corporation comes top 10 shareholders
                                           N/A
due to rights issue (if applicable) (see
note3)

Explanation on associated relationship Among the top ten shareholders, there exists no associated relationship between the


                                                                         56
                                                                          深圳市特力(集团)股份有限公司 2016 年年度报告全文


among the top ten shareholders or state-owned legal person’s shareholders SDG, Ltd and other shareholders, and they do not
consistent action                     belong to the consistent actionist regulated by the Management Measure of Information
                                      Disclosure on Change of Shareholding for Listed Companies. For the other shareholders of
                                      circulation share, the Company is unknown whether they belong to the consistent actionist.

                                Particular about top ten shareholders with un-restrict shares held

                                                                                                           Type of shares
          Shareholders’ name             Amount of un-restrict shares held at Period-end
                                                                                                        Type           Amount

                                                                                               RMB ordinary
SDG                                                                              139,925,256                           139,925,256
                                                                                               shares

                                                                                               Domestically
KGI ASIA LIMITED                                                                    3,991,269 listed foreign                3,991,269
                                                                                               shares

GUOTAI JUNAN                                                                                   Domestically
SECURITIES(HONGKONG)                                                                1,088,204 listed foreign                1,088,204
LIMITED                                                                                        shares

                                                                                               Domestically
Weng Zhengwen                                                                        579,028 listed foreign                  579,028
                                                                                               shares

                                                                                               Domestically
Li Guangxin                                                                          322,558 listed foreign                  322,558
                                                                                               shares

                                                                                               Domestically
He Xing                                                                              300,000 listed foreign                  300,000
                                                                                               shares

                                                                                               Domestically
Zeng Huiming                                                                         270,000 listed foreign                  270,000
                                                                                               shares

                                                                                               Domestically
Huang Chuyun                                                                         266,500 listed foreign                  266,500
                                                                                               shares

                                                                                               Domestically
Zhang Gengshu                                                                        185,523 listed foreign                  185,523
                                                                                               shares

                                                                                               Domestically
Yang Qiuling                                                                         168,300 listed foreign                  168,300
                                                                                               shares

Expiation on associated relationship or Among the top ten shareholders, there exists no associated relationship between the
consistent actors within the top 10 state-owned legal person’s shareholders SDG and other shareholders, and they do not
un-restrict shareholders and between belong to the consistent actionist regulated by the Management Measure of Information
top 10 un-restrict shareholders and top Disclosure on Change of Shareholding for Listed Companies. For the other shareholders of


                                                                57
                                                                                深圳市特力(集团)股份有限公司 2016 年年度报告全文


10 shareholders                           circulation share, the Company is unknown whether they belong to the consistent actionist.

Explanation on shareholders involving
margin business about top ten common
                                          N/A
shareholders with un-restrict shares
held(if applicable) (see note4)

Whether top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held have a buy-back
agreement dealing in reporting period
□ Yes √ No
The top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held of the Company have no
buy-back agreement dealing in reporting period.


2. Controlling shareholder of the Company

Nature of controlling shareholders: local state-owned holding
Type of controlling shareholders: legal person
                                  Legal person/person
     Majority shareholder                                  Date of foundation       Organization code     Main operation business
                                  in charge of the unit

                                                                                                         Investment    in     industry

                                                                                                         (specific item should be

                                                                                                         declaration); investment in

                                                                                                         tourism             industry;

                                                                                                         development and operation

                                                                                                         of the real estate; domestic

                                                                                                         business, material supply

SDG                               Zhang Junlin            1982-06-20             192194195               and    marketing     industry

                                                                                                         (excluding     monopolized

                                                                                                         commodity and commodity

                                                                                                         under special government

                                                                                                         control);           economic

                                                                                                         information(excluding

                                                                                                         restricted projects); import

                                                                                                         & export business

Equity of listed Company in Except the shares of the Company held by SDG, SDG still holds 39.18% equity of Shenzhen SDG

and out of China control and Information Co., Ltd. (Stock name: SDGI, Stock code: 000070); holds 1.31% equity of Sichuan




                                                                   58
                                                                             深圳市特力(集团)股份有限公司 2016 年年度报告全文


hold      by    the    majority Jinlu Group Co., Ltd. (Stock name: Jinlu Group, Stock code: 000510)

shareholder in the Period

Changes of controlling shareholders in reporting period
□ Applicable √ Not applicable
The Company had no changes of controlling shareholders in reporting period



3. Actual controller of the Company

Nature of actual controller: local state-owned assets management
Type of actual controller: legal person
                                     Legal
Actual controlling shareholders person/person in Date of foundation              Organization code        Main operation business
                                charge of the unit
Shenzhen Municipal People’s
Government State-owned
                                     Peng Haibin       2003-07-20           K31728067                Not applicable
Assets Supervision and
Administration Commission

Equity     of   domestic/oversea
listed    Company     control     by Not applicable
actual controller in report period

Changes of actual controller in reporting period
□ Applicable √ Not applicable
No changes of actual controllers for the Company in reporting period.
Property right and controlling relationship between the actual controller and the Company is as follow:



         Shenzhen Municipal People’s Government State-owned Assets Supervision and Administration Commission


                            100%


                 Shenzhen Investment Holdings Co., Ltd.

                                                                         43.3%
                            19.49%



                                                   Shenzhen SDG Co., Ltd.


                                                   49.09%


                                             Shenzhen Tellus Holding Co., Ltd.




                                                                    59
                                                                        深圳市特力(集团)股份有限公司 2016 年年度报告全文




Actual controller controlling the Company by entrust or other assets management

□ Applicable √ Not applicable


4. Particulars about other legal person shareholders with over 10% shares held
√ Applicable   □Not applicable

                                    Legal rep./person in                                              Main business or
      Corporate shareholders                                Dated founded     Register capital
                                       charge of unit                                               management activity

Shenzhen Capital Fortune Jewelry
Industry Investment Enterprise     Cheng Houbo             2014-04-18       620 million Yuan     Equity investment
(limited partnership)


5. Limitation and reducing the holdings of shares of controlling shareholders, actual controllers,
restructuring side and other commitment subjects

□ Applicable √ Not applicable




                                                              60
                                                         深圳市特力(集团)股份有限公司 2016 年年度报告全文




                                      Section VII. Preferred Stock

□ Applicable   √ Not applicable
The Company had no preferred stock in the Period.




                                                    61
                                                                              深圳市特力(集团)股份有限公司 2016 年年度报告全文



          Section VIII. Particulars about Directors, Supervisors, Senior
                                              Executives and Employees

I. Changes of shares held by directors, supervisors and senior executives

                                                                                          Amount    Amount
                                                                                 Shares                                 Shares
                                                                                          of shares of shares
                                                            Start                 held at                       Other   held at
                        Working                                        End date            increased decreased
                                                           dated of
                Title                   Sex     Age                    of office period-be                     changes period-en
  Name                    status                            office                           in this  in this
                                                                         term
                                                            term                    gin                        (share)     d
                                                                                             period   period
                                                                                  (Share)                               (Share)
                                                                                            (Share) (Share)

                        Currently                          2015-05- 2018-05-
Lv Hang Chairman                    M                 56
                        in office                          20         19

                        Currently                          2015-05- 2018-05-
Yu Lei     Director                 F                 49
                        in office                          20         19

Zhang                   Currently                          2015-05- 2018-05-
           Director                 M                 44
Quanxun                 in office                          20         19

Chen                    Currently                          2015-05- 2018-05-
           Director                 M                 45
Gengsen                 in office                          20         19

           Director, Currently                             2015-05- 2018-05-
Ding Hui                            M                 44
           GM           in office                          20         19

Yang       Director, Currently                             2015-05- 2018-05-
                                    F                 45
Jianping   CFO          in office                          20         19

           Independ
Wei                     Currently                          2015-05- 2018-05-
           ent                      M                 45
Shaohui                 in office                          20         19
           Director

           Independ
                        Currently                          2015-05- 2018-05-
Ji Huibin ent                       M                 47
                        in office                          20         19
           Director

           Independ
Li                      Currently                          2015-05- 2018-05-
           ent                      M                 55
Xiangjun                in office                          20         19
           Director

           Chairman
           of
           Superviso Currently                             2015-05- 2018-05-
Chen Hua                            F                 53
           ry           in office                          20         19
           Committe
           e

Li Miao    Superviso Currently M                      44 2015-05- 2018-05-


                                                                      62
                                                                                      深圳市特力(集团)股份有限公司 2016 年年度报告全文


           r             in office                             20           19

Fu         Superviso Currently                                 2015-05- 2018-05-
                                     M                    44
Chunlong r               in office                             20           19

Ke
           Superviso Currently                                 2015-05- 2017-04-
Wenshen                              F                    49
           r             in office                             20           01
g

Li         Superviso Currently                                 2015-05- 2018-05-
                                     F                    49
Xiaohong r               in office                             20           19

Ren        Deputy        Currently                             2015-05- 2018-05-
                                     M                    54
Yongjian GM              in office                             20           19

           Deputy        Currently                             2015-05- 2018-05-
Feng Yu                              M                    50
           GM            in office                             20           19

           Deputy        Currently                             2015-05- 2018-05-
Li Ming                              M                    55
           GM            in office                             20           19

           Secretary
                         Currently                             2015-12- 2018-05-
Qi Peng    of the                    M                    44
                         in office                             28           19
           Board

Total           --           --          --          --             --           --            0        0          0        0          0


II. Changes of directors, supervisors and senior executives

        Name                Title             Type                       Date                            Reasons


III. Post-holding

Professional background, major working experience and present main responsibilities in Company of directors, supervisors and
senior executive

Name                                                       Main work experience and holding the post
                     Master degree, a senior political division. He successively served as chairman, GM and deputy secretary of the
Lv Hang              general branch in Shenzhen SDG Xiaomeisha Tourism Center; Director and GM of Shenzhen Tellus Holding Co.,
                     Ltd.; GM of Shenzhen SDG Property Management Co., Ltd.; now he serves as chairman of the Company.
                     Master degree, a certified real estate appraiser and real estate economist. She successively served as secretary of the
                     international project cooperation department of Beijing Chaoyan Vocation Education Training Center, deputy chief,
                     chief and deputy director of Luohu Branch, the Bureau of Planning and Land of Shenzhen Municipality, the deputy
Yu Lei
                     director and director of State-owned Assets Supervision and Administration Commission of the People’s
                     Governmetn of Shenzhen Municipality. Now she serves as deputy GM of the majority shareholder of the Company-
                     SDG and director of the Company
                     Master degree, he successively served as auditor and project manager in auditing department of Shenzhen Zhixing
                     CPA Office; the GM assistant of Xiamen Xingdao Feilu Investment Co., Ltd., secretary of the Board, GM assistant
Zhang Quanxun
                     and staff director of Fujian Logistics Investment Financing Co., Ltd.; deputy director of Xiamen Productivity
                     Promotion Centerl; director of the plastic busienss department and strategy development department of Shenzhen



                                                                           63
                                                                         深圳市特力(集团)股份有限公司 2016 年年度报告全文


                Tongchan Package Group and the director of strategy research and merger department of SZ Capial. Now he serves
                as deputy president of CMAF and director of the Company
                Bachelor degree, an intermediate economist and accountant. He successively served as account in financial
                department of the Guangdong Shanjian International Industrial (Group) Co., Ltd.; the manager, CFO and director of
Chen Gengsen    settle center in Guangdong Shanjian International Industrial (Group) Co., Ltd.; CFO of Longshan Enviornment;
                director and GM of the Shenzhen Qibang Investment Holding Co., Ltd. now he serves as chairman of Shenzhen
                Shengbang Trading Co., Ltd. and director of the Company
                Master degree, a senior political division. He successively served as GM and deputy chairman of Huali Company;
Ding Hui
                chief of office of SDG and serves as director and GM of the Company currently.
                Postgraduate and CPA. Served as the manager in finance and accounting department of Shenzhen SDG Information
                Co., Ltd., financial manager in Taike Branch, financial manager in Optical Cable Branch, deputy manager in finance
Yang Jianping
                and accounting department, manager in finance and accounting department, etc., and serves as director and chief
                financial officer of the Company.
                Master degree. He ever took post of law assistant and full-time attorney of Guangdong Shu Jun Law Firm. Now he
Wei Shaohui     serves as senior partner of Guangdong Shu Jun Law Firm, and independent director of the Company; meanwhile
                serves as independent director of Longhao Tiandi Co., Ltd. and Shenzhen Click Technology Co., Ltd. respectively.
                Master degree, senior engineer. He ever took the post of project manager, director of engineering dept. deputy GM
                and GM of Shenzhen Jianyi Municipal Engineering Co., Ltd; director of engineering dept. and director of operation
Ji Huibin       dept. of Shenzhen Jianyi Industrial Co., Ltd. and deputy GM of Pang Yuan Real Estate Development Co., Ltd. Now
                he works in Shenzhen International Logistic Development Co., Ltd. and serves as independent director of the
                Company
                Master’s degree, economist, CPA, CTA. Served as the leader in Shenzhen Auditing Bureau, and serves as the senior
Li Xiangjun     partner of Zhongqin Wanxin Certified Public Accountants (special general partnership), and the independent
                directors of the Company.
                Bachelor's degree, economist. Served as deputy director in credit investment department of Guangdong International
                Trust and Investment Co., Ltd., Shenzhen Branch; deputy general manager of Guangdong International Trust and
                Investment (Hong Kong) Co., Ltd.; director in customer service center of Shenzhen Changjiang Xingye
Chen Hua
                Development Co., Ltd.; director in human resources department of Shenzhen Shipping Corporation; office director
                of Shenzhen SDG Co., Ltd.; director and general manger of Shenzhen SDG Information Co., Ltd.; and serves as the
                chairman of the board of supervisors of the Company.
                Graduate, senior accountant. Served as chief in audit office of Shenzhen Nanyou (Holdings) Ltd., deputy manager in
                finance department of Shenzhen Jujian Co., Ltd.; accounting manager in headquarters and director in financial center
Li Miao         of Shenzhen Press Group, and chief financial officer in Shenzhen Jin Feng Fan Property Development Co., Ltd;
                director of the Company; director and CFO of the SDG, supervisor of the Company and supervisor of Shenzhen
                Investment Holdings Limited.
                Master degree. He ever took the Business Deputy General Manage of HR Department of Shenzhen SDG Co., Ltd.,
                Deputy Team Leader in Work Team of Shenzhen Tefa Huatong Packaging Co., Ltd. and Deputy Minister of HR
Fu Chunlong
                Department of Shenzhen SDG Co., Ltd. Now, he is the Deputy Minister of HR Department of Shenzhen SDG Co.,
                Ltd. and Supervisor of the Company.
                Bachelor degree, an accountant. He ever acts as the teacher in School of Guangdong Foreign Trade, major
Ke Wensheng     accountant of Shenzhen SDG Co., Ltd. and deputy GM and GM of the Accounting and Financial Dept. of the
                Company, the GM of Accounting and Financial Dept. and staff supervisor of the Company.
Li Xiaohong     Bachelor, economists, enterprise human resource manager. Served as a section member in foreign-related business



                                                              64
                                                                              深圳市特力(集团)股份有限公司 2016 年年度报告全文


                  office of Hunan Computer Factory; manger in import and export department and marketing department of Shenzhen
                  Changdao Computer Graphics United Co., Ltd.; staff and director in secretariat of the board of directors, office, the
                  party and the masses personnel department of the Company; deputy manager of the Company’s automobile business
                  division and integration division; deputy manager of the Company’s human resources department; and serves as the
                  manger and employee supervisor of the Company’s human resources (the party and the masses) department;
                  Bachelor degree, an accountant. He ever took the posts of Deputy Manager of Planning & Financial Dept. and
Ren Yongjian      Manager of Auditing Dept. in Shenzhen Special Economic Zone Development (Group) Company; Director and CFO
                  of the Company. He now acts as Deputy General Manager of the Company.
                  Bachelor degree. He ever took the Deputy General Manger of Shenzhen Xianke Real-estate Co., Ltd., Manager of
Feng Yu           Investment Department of China Sports Group Industry Co., Ltd.; Director to the Office of General Manger of
                  Shenzhen SDG Co., Ltd; and Supervisor of the Company. Now, he acts as Deputy General Manager of the Company.
                  Bachelor degree, engineer. Served as a teacher in Guangzhou Nonferrous Metals Industry School; director of
                  engineering and deputy general manager of Shenzhen South Tongfa Real Estate Development Co., Ltd.; director of
                  development department and property management department of Shenzhen South Tongfa Industry Co., Ltd.; deputy
Li Ming
                  general manager, director and chief engineer in enterprise development department of Shenzhen Jintong Property
                  Management Co., Ltd.,; manager in Swan project department and deputy general manger of Shenzhen SDG
                  Properties Co., Ltd., and serves as the deputy general manager of the Company.
                  Master's degree, economist. Served as the secretary to the president and director in information center of Shenzhen
                  Special Economic Zone Development (Group) Co., Ltd.; deputy director in secretariat of the board, and deputy
                  manger in enterprise development department, and manager in automobile business department and management
Qi Peng
                  department of Shenzhen Tellus(Group) Co., Ltd.; general manager of Shenzhen Tellus Automobile Service Chain
                  Co., Ltd.; general manager of Shenzhen Tellus New Yongtong Automobile Development Co., Ltd.; director
                  secretariat of the board of Shenzhen Tellus(Group) Co., Ltd.; and serves as secretary of the board of the Company


Post-holding in shareholder’s unit

√Applicable   □ Not applicable

                                                                                                                     Received
                                                                Position in
                                                                                Start dated of   End date of    remuneration from
     Name                    Name of shareholder’s unit       shareholder’s
                                                                                 office term     office term     shareholder’s unit
                                                                   unit n
                                                                                                                       (Y/N)

Yu Lei           SDG                                           Deputy GM                                        Y

Li Miao          SDG                                           CFO                                              Y

                                                               Director of
Fu Chunlong      SDG                                           H&R                                              Y
                                                               department

Zhang            Shenzhen Capital Fortune Jewelry Industry
                                                                                                                Y
Quanxun          Investment Enterprise (limited partnership)

                 Shenzhen Capital Fortune Jewelry Industry
Chen Gengsen                                                                                                    N
                 Investment Enterprise (limited partnership)

Post-holding in other unit
√Applicable   □ Not applicable



                                                                  65
                                                                              深圳市特力(集团)股份有限公司 2016 年年度报告全文


                                                                                                                           Received
                                                                Position in       Start dated of End date of office remuneration
     Name                      Name of other units
                                                                other unit n       office term         term         from other unit
                                                                                                                            (Y/N)

Wei Shaohui      Guangdong Shu Jun Law Firm                   Senior partner                                         Y

                 Shenzhen International Logistic
Ji Huibin                                                                                                            Y
                 Development Co., Ltd.

                 Zhong Qin Wanxin Certified Public
Li Xiangjun                                                   Senior partner                                         Y
                 Accountants (LLP)

Punishment of securities regulatory authority in recent three years to the Company’s current and outgoing directors, supervisors and
senior management during the reporting period
□ Applicable √ Not applicable


IV. Remuneration for directors, supervisors and senior executives

Decision-making procedures, recognition basis and payment for directors, supervisors and senior executives

The Company executes in strict accordance with the "Salary Management System for Headquarters of Shenzhen
Tellus(Group) Co., Ltd. ", "Staff Performance Management System for Headquarters of Shenzhen Tellus (Group)
Co., Ltd. ", "Implementing Rules of Remuneration and Appraisal Committee of the Board of Shenzhen
Tellus(Group) Co., Ltd.", "Annual Performance Management Approaches for Leading Group Members of
Shenzhen Tellus(Group) Co., Ltd." and other relevant system regulations, strictly implements the performance
appraisal, and pay the remuneration in accordance with the assessment results.


Remuneration for directors, supervisors and senior executives in reporting period
                                                                                                                     In 10 thousand Yuan

                                                                                                       Total               Whether
                                                                                                   remuneration          remuneration
                                                                                 Post-holding
      Name                Title              Sex                Age                              obtained from the       obtained from
                                                                                        status
                                                                                                 Company (before       related party of
                                                                                                      taxes)             the Company

                   Chairman, Party                                             Currently in
Lv Hang                                M                                56                                     85.82 N
                   secretary                                                   office

                                                                               Currently in
Ding Hui           GM                  M                                44                                     73.24 N
                                                                               office

                   Chairman of
                                                                               Currently in
Chen Hua           Supervisory         F                                53                                     39.65 N
                                                                               office
                   Committee

                                                                               Currently in
Ren Yongjian       Deputy GM           M                                54                                     66.65 N
                                                                               office

Yang Jianping      CFO                 F                                45 Currently in                        65.87 N



                                                                 66
                                                                              深圳市特力(集团)股份有限公司 2016 年年度报告全文


                                                                              office

                                                                              Currently in
Feng Yu            Deputy GM          M                                  50                                68.35 N
                                                                              office

                                                                              Currently in
Li Ming            Deputy GM          M                                  55                                58.02 N
                                                                              office

                   Director of
                                                                              Currently in
Qi Peng            secretary of the   M                                  44                                42.26 N
                                                                              office
                   Board Office

                                                                              Currently in
Ke Wensheng        Supervisor         F                                  49                                  37.7 N
                                                                              office

                                                                              Currently in
Li Xiaohong        Supervisor         F                                  49                                  37.7 N
                                                                              office

                   Independent                                                Currently in
Wei Shaohui                           M                                  45                                    5N
                   Director                                                   office

                   Independent                                                Currently in
Ji Huibin                             M                                  47                                    5N
                   Director                                                   office

                   Independent                                                Currently in
Li Xiangjun                           M                                  55                                    5N
                   Director                                                   office

Total                        --                --                 --                   --                 590.26         --

Delegated equity incentive for directors and senior executives in reporting period
□ Applicable √ Not applicable


V. Particulars of workforce

1. Number of Employees, Professional composition, Education background


Employee in-post of the parent Company (people)                                                                                52

Employee in-post of main Subsidiaries (people)                                                                                442

The total number of current employees (people)                                                                                494

The total number of current employees to receive pay (people)                                                                 494

Retired employee’ s expenses borne by the parent Company and
                                                                                                                               0
main Subsidiaries (people)

                                                      Professional composition
              Category of professional composition                            Numbers of professional composition (people)
Production personnel                                                                                                           33

Sales personnel                                                                                                                26

Technician                                                                                                                    103

Financial staff                                                                                                                52



                                                                  67
                                                                  深圳市特力(集团)股份有限公司 2016 年年度报告全文


Administration staff                                                                                             98

Other                                                                                                           182

Total                                                                                                           494

Education background
                  Type of education background                                 Numbers (people)
Master                                                                                                           16

Bachelor degree                                                                                                  91

Junior college                                                                                                  103

Technical secondary school                                                                                       60

Other                                                                                                           224

Total                                                                                                           494




2. Remuneration Policy

The Company executes in strict accordance with the "Salary Management System for Headquarters of Shenzhen
Tellus (Group) Co., Ltd. ", "Staff Performance Management System for Headquarters of Shenzhen Tellus (Group)
Co., Ltd. " and other relevant system regulations strictly implement.



3. Training programs

The Company always attaches importance to the training and development work for employees; create innovation
into part of the long-term development strategy of the Company. Combine with current situation of the Company,
and take annual planning, position requirement and responsibility as well as enterprise’s development needs into
consideration, the Company formulated a systematic training plans and talent cultivation projects; strengthen
training works in aspect of multi-tiered, multi-channel, multi-field and multi-form, including induction training for
new employees, business training for on-job employees, operation skill training for workers at the production line,
upgrade training for manager, project development and risk control training, continues to improve general quality
for employees in order to achieve a win-win situation for the Company and employees.

4. Labor outsourcing

□ Applicable√ Not applicable




                                                         68
                                                                深圳市特力(集团)股份有限公司 2016 年年度报告全文



                            Section IX. Corporate Governance
I. Corporate governance of the Company
During the reporting period, the Company has been observing the Company Law, Securities Law and relevant
rules issued by the CSRC, for the purpose of improving its legal person governance structure, setting
up and improving the internal control system, and standardizing its operation level. According to the Articles of
Association, Procedure Rules of General Meeting, Procedure Rules of Board of Directors, Procedure Rules of
Supervisory Committee, Working Rules of Independent Directors, Working Rules of General Manager and a
series of rules and regulations, the Company maintained formal procedures, clearly duties and obligations of its
general meeting, board of directors, supervisory committee, each specialized committee of the board and senior
manager. Each of its directors, supervisors and senior managers can perform their duties earnestly. Its corporate
governance conformed to the requirements of certain regulation documents issued by the CSRC concerning
corporate governance of listed Company until the end of reporting period


During the reporting period, in order to improve the Company’s governance with well-defined responsibility
among the Company, we has revised the "Articles of Association", “ Rules of Shareholders General Meeting”,
“Rules of the Directors” and “Mechanism of Information Disclosure”, and formulated the “Implementation of
Network Voting for Shareholders General Meeting”, which has been deliberate and approved by the shareholders
general meeting. We also formulated the Rules of Chairman Office and revised the Mechanism of Strategy and
Planning Management, Management of Subsidiary and Management Mechanism for Inside Information and
Insiders, and the above mentioned are deliberated and approved by the Board.


Is there any difference between the actual condition of corporate governance and relevant regulations about
corporate governance for listed Company from CSRC?
□Yes √ No
There are no differences between the actual condition of corporate governance and relevant regulations about
corporate governance for listed Company from CSRC.
II. Independency of the Company relative to controlling shareholders’ in aspect of businesses,
personnel, assets, organization and finance
The Company has been independent from the controlling shareholders in terms of business, personnel, asset,
institution and finance. The Company has independent and complete business and is able to operate
independently.
(I) Business: the Company belongs to independent legal person entity. Being completely independent from
controlling shareholders, it has independent and complete business system and is able to operate independently.
The Company has independent production, sales and service systems and its major business. There is no
inter-competition between the Company and its controlling shareholders and related parties.
(II) Personnel: the Company establishes complete labor, human resources and salary management systems. All the
senior management of the Company receives remuneration from the Company since they are employed by the
Company, and no one takes position in the enterprises owned by shareholders.
(III) Assets: the Company is completely independent from the controlling shareholder in terms of assets; each of
them is able to operate independently. The Company has complete and separate purchase system, production
system, sales system and relevant service system. Intangible assets including industry property, trademark and
non-proprietary technology are owned by the Company on separate basis.

                                                       69
                                                                 深圳市特力(集团)股份有限公司 2016 年年度报告全文


(IV) Finance: the Company has independent financial accounting department which set independent accounting
calculation system and finance management system. No controlling shareholder intervenes in the capital
application of the Company. The Company opens separate bank accounts. No capital is saved in the financial
Company or settlement center account controlled by substantial shareholder or other related parties. The Company
pays taxes by law independently.
(V) Institution: the board, the supervisory committee and other internal institutions of the Company operate
independently. All the institutions of the Company are set according to the standards requirements applicable to
listed Company and actual business natures of the Company. It has independent office location.

III. Horizontal competition

□ Applicable    √ Not applicable

IV. In the report period, the Company held annual shareholders’ general meeting and
extraordinary shareholders’ general meeting
1. Annual Shareholders’ General Meeting in the report period
                                        Ratio of investor
 Session of meeting            Type                              Date        Date of disclosure       Index of disclosure
                                          participation

                                                                                                  “Resolution Notice
                                                                                                  of Annual General
                                                                                                  Meeting of 2015”
                                                                                                  (No.: 2016-036)
                                                                                                  published on
Annual General        Annual General
                                                   74.15% 2016-05-20       2016-05-21             Securities Times,
Meeting of 2015       Meeting
                                                                                                  Hong Kong
                                                                                                  Commercial Daily
                                                                                                  and Juchao Website
                                                                                                  (www.cninfo.com.cn
                                                                                                  )

                                                                                                      “Resolution Notice
                                                                                                  of First
                                                                                                  Extraordinary
                                                                                                  General Meeting of
                                                                                                  2016” (No.:
First Extraordinary
                      Extraordinary                                                               2016-016) published
General Meeting of                                 74.97% 2016-02-24       2016-02-25
                      General Meeting                                                             on Securities Times,
2016
                                                                                                  Hong Kong
                                                                                                  Commercial Daily
                                                                                                  and Juchao Website
                                                                                                  (www.cninfo.com.cn
                                                                                                  )

Second                                                                                                “Resolution Notice
                      Extraordinary
Extraordinary                                      73.98% 2016-06-30       2016-07-01             of Second
                      General Meeting
General Meeting of                                                                                Extraordinary


                                                            70
                                                                                  深圳市特力(集团)股份有限公司 2016 年年度报告全文


2016                                                                                                              General Meeting of
                                                                                                                  2016” (No.:
                                                                                                                  2016-051) published
                                                                                                                  on Securities Times,
                                                                                                                  Hong Kong
                                                                                                                  Commercial Daily
                                                                                                                  and Juchao Website
                                                                                                                  (www.cninfo.com.cn
                                                                                                                  )


2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore

□ Applicable     √ Not applicable

V. Responsibility performance of independent directors
1. The attending of independent directors to Board meetings and general meeting
                                           The attending of independent directors to Board Meeting

                         Times of Board
                                                                                                                           Absent the
                             meeting                                Times of           Times of
Name of independent                               Times of                                             Times of        Meeting for the
                           supposed to                             attending by        entrusted
       director                                   Presence                                             Absence         second time in a
                           attend in the                          communication        presence
                                                                                                                           row (Y/N)
                          report period

Li Xiangjun                                 8                 1                   7                0                  0N

Ji Huibin                                   8                 1                   7                0                  0N

Wei Shaohui                                 8                 1                   7                0                  0N

Times for attending general meeting
                                                                                                                                        3
from independent directors

Explanation of absent the Board Meeting for the second time in a row


2. Objection for relevant events from independent directors

Independent directors come up with objection about Company’s relevant matters
□Yes √No
Independent directors has no objections for relevant events in reporting period

3. Other explanation about responsibility performance of independent directors
The opinions from independent directors have been adopted

√ Yes □ No
Explanation on advice that accepted/not accepted from independent directors

In accordance with relevant laws and regulation of “Company Law”, “Securities Laws”, “Listing Rules for Stocks”
and “System of Independent Directors”, independent directors focus on the normative of Company’s operation,
performed responsibility independently and carry out their duties diligently; issued independent and fair-ness
independent opinions on the audit institution, appointed in reporting period for financial report and internal


                                                                      71
                                                                深圳市特力(集团)股份有限公司 2016 年年度报告全文


control of the Company, related transactions, capital contact with related parties and external guarantee, profit
distribution as well as other events needs independent opinions issued, which perfected supervision mechanism
for the Company and play a corresponding role in protecting legal interest of the Company and whole
shareholders.


VI. Duty performance of the special committees under the board during the reporting period
1. Duty performance of the strategic committee

The strategic committee of the board is specially set according to general meeting resolution and the Articles of
Association, responsible for study on the long term development strategy and material investment decisions and
raising its recommendations. The committee comprised of 5 directors, and the committee is chaired by chairman
of the board. During the reporting period, the committee performed its duties according to the Working Rules of
the Strategic Committee, with each of its members doing their best to perform the respective duties. The
Committee takes part in the discussion on the operation development planning and related investment projects. On
23 August 2016, the Committee holds a meeting for deliberating the Proposal of “Investment of the Tellus
Starlight Jinzun Jewerly Co., Ltd.”, iindividual opinions and recommendations are encouraged. It emphasizes on
legal person governance and standardized operation. By raising measures to prevent operation risks, the
committee plays an important role in increasing the core competitiveness, strengthening scientific decisions and
enhancing efficiency of material investment decision as well as the quality of decisions.


2. The audit committee
During the reporting period, the committee performed its duties according to the Articles of Association and
Working Procedures of the Audit Committee. The committee pays close attention to the operation, finance and
implementation of standard internal control. It strengthens communications with the relevant responsible
departments within the Company, and reviews the effective appraisal on the internal control and corporate risk
management by means of telecommunication, investigation and reporting. It reviews that whether the operation,
finance and accounting policy of the Company follows relevant laws and rules, and provides management and
audit opinions.

During the annual audit, the audit committee took active attitude in relevant works. Prior to the official
involvement of Ruihua Certified Public Accountants (LLP) (hereinafter referred to as Ruihua) in the
annual audit, on 22 January 2017, the audit committee held meeting and determined the working arrangement for
2016 annual audit after negotiation with Ruihua, reviewed the financial statements prepared by the Company and
agreed to submit the financial statements and related information to Ruihua for audit.



After the official audit by Ruihua, members of the audit committee made calls to enquire the audit progress, and
urged the accounting firm to complete audit as scheduled according to the working arrangement, so as to ensure
prompt disclosure of its annual report. Meanwhile, the committee conducted communications with the
accountants in respect of the issues found in audit works.

After the issuance of initial audit opinions by the accountants, the audit committee held meeting on 7 April 2017
to re-review the financial statements, and formed written opinions and resolutions in respect of the annual
financial statements and audit work summary report.



                                                       72
                                                                               深圳市特力(集团)股份有限公司 2016 年年度报告全文




3. Duty performance of the remuneration and examination committee

During the reporting period, the remuneration and examination committee hold two meetings for reviewing the
remuneration of directors, supervisors and senior management of the Company and “Management Measures on
Annual Performance for Senior Executives”, The entire members of the committee believed that the remuneration
payment in the reporting period complied with the Company’s performance examination system. The
remuneration of directors, supervisors and senior management were determined according to the relevant systems
of the Company.


VII. Works from Supervisory Committee
The Company has risks in reporting period that found in supervisory activity from supervisory committee
□ Yes √ No
Supervisory committee has no objection about supervision events in reporting period



VIII. Examination and incentives of senior management
Board of the Company evaluated senior executives based on relevant regulations at end of this reporting period.


IX. Internal Control

1. Details of major defects in IC appraisal report that found in reporting period

□Yes √ No


2. Appraisal Report of Internal Control


Disclosure date of full internal control
                                             2017-04-08
evaluation report

Disclosure index of full internal control http://www.cninfo.com.cn Juchao website http://www.cninfo.com.cn, the website for
evaluation report                            information disclosure appointed by Shenzhen Stock Exchange

Ratio of the total assets from enterprise
included in the appraisal range in total                                                                                     98.70%
assets in consolidate statement

Ratio of the operation revenue from
enterprise included in the appraisal range                                                                                   98.58%
in total revenue in consolidate statement

                                                   Defects Evaluation Standards

                    Category                              Financial Reports                          Non-financial Reports

                                             1.   Major   deficiencies:   a.    Fraud   of 1. Major deficiencies: a. Great decisions
                                             management       leading     to      material violate   the   Company’s   established
Qualitative criteria
                                             misstatements of financial results or false procedure, resulting in significant losses
                                             financial reports, which mislead users of to the Company; b. Serious violation of

                                                                 73
                                                                   深圳市特力(集团)股份有限公司 2016 年年度报告全文


                        financial     statements         and           result    in laws      and     regulations      results     in
                        decision-making mistakes and litigation; b. significant losses to the Company; c.
                        Ineffective control environment; c. Major Important businesses are lack of system
                        internal control deficiencies found and control or system control fails; d.
                        reported to the management but haven’t Serious brain drain of core management
                        been corrected after a reasonable time; d. or core technical staff; e. Significant
                        The decision-making of the Company’s deficiencies in the internal evaluation
                        major    matters       has      not        fulfilled    the results have not been corrected.
                        corresponding decision-making                     process,
                        resulting in significant losses of the 2. Significant deficiencies: a. The
                        Company;     e.  Important    businesses Company violates the enterprise
                        involving the Company’s production and internal         regulations     and    causes
                        management are lack of effective control; f. significant losses; b. Serious brain drain
                        Other correct judgments to the statement of business personnel in the Company’s
                        users.                                   key positions; c. The Company’s
                                                                                     significant     business     systems        have
                        2. Significant deficiencies: a. The selection deficiencies;                    d.       The     significant
                        and application of accounting policies do deficiencies in the internal control of
                        not     follow      the      generally           accepted the Company have not been corrected.
                        accounting        principles;         b.       Anti-fraud
                        programs and control measures have been
                                                                                     3. General deficiencies: Deficiencies
                        not established; c. Corresponding control
                                                                                     except    for    major      and    significant
                        mechanism        for   accounts            handling     of
                                                                                     deficiencies.
                        unconventional or special transactions has
                        not been established or implemented and
                        has     no    there        is       no         appropriate
                        compensatory controls; d. The controls to
                        the period-end financial reporting process
                        have one or more defects and cannot
                        reasonably       ensure      that        the     financial
                        statements prepared are true and accurate.


                        3. General deficiencies: Deficiencies except
                        for major and significant deficiencies.

                        1.    Major       deficiencies:            misstatement 1. Major deficiencies: loss amount >
                        amount > 10% of total profit, and absolute 1.5% of owner's equity attributable to
                        amount        >        2         million            Yuan; parent        Company,         and      absolute
                        2. Significant deficiencies: 5% of total amount > 5 million Yuan;
Quantitative standard   profit < misstatement amount ≤10% of total 2. Significant deficiencies: 0.5% of
                        profit, and absolute amount > 1 million owner's equity attributable to parent
                        Yuan; or 1 million Yuan < absolute amount Company < loss amount ≤ 1.5% of
                        ≤ 2 million Yuan, and misstatement owner's equity attributable to parent
                        amount > 5% of total profit.                                 Company, or 1 million Yuan < absolute



                                                   74
                                                                                   深圳市特力(集团)股份有限公司 2016 年年度报告全文


                                                    3.   General   deficiencies:   misstatement amount ≤ 5 million Yuan;
                                                    amount ≤ 5% of total profit, or absolute
                                                    amount ≤ 1 million Yuan                     3. General deficiencies: loss amount   ≤
                                                                                                 0.5% of owner's equity attributable to
                                                                                                 parent Company, or absolute amount ≤
                                                                                                 1 million Yuan

Amount of significant defects in financial
                                                                                                                                         0
reports

Amount         of     significant   defects    in
                                                                                                                                         0
non-financial reports

Amount of important defects in financial
                                                                                                                                         0
reports

Amount         of      important    defects    in
                                                                                                                                         0
non-financial reports


X. Auditing report of internal control

√Applicable        □ Not applicable

                                                Deliberations in Internal Control Audit Report

We consider that, according to relevant regulations and “Basic Rules of Internal Control for Enterprise”, Shenzhen Tellus Holding
Co., Ltd. maintained an efficiency internal control of financial report dated 31 December 2016, in all material aspects.

Disclosure details of audit report of
                                          Disclosure
internal control

Disclosure date of audit report of
                                          2017-04-08
internal control (full-text)

Index of audit report of internal Juchao website http://www.cninfo.com.cn, the website for information disclosure appointed by
control (full-text)                       Shenzhen Stock Exchange

Opinion type of auditing report of
                                          standard without reserved reports
IC

whether the non-financial report
                                          No
had major defects

Carried out modified opinion for internal control audit report from CPA
□Yes √ No
The internal control audit report, issued by CPA, has concerted opinion with self-evaluation report, issued from the Board
√ Yes □ No




                                                                        75
                                                                          深圳市特力(集团)股份有限公司 2016 年年度报告全文




                                           Section X Corporate Bond

Whether the Company has a corporation bonds that issuance publicly and listed on stock exchange and without due on the date when
annual report approved for released or fail to cash in full on due

□Yes   √No




                                                                     76
                                                            深圳市特力(集团)股份有限公司 2016 年年度报告全文




                               Section XI Financial Report



I. Audit Report

Type of audit opinion                                       Standard unqualified auditor’s report
Date of audit report signing                                2017-04-07
Audit authority                                             Ruihua CPA (LLP)
Auditing file No.                                           Ruihua Shen Zi【2017】 No.: 48330003
CPA’s name                                                 Yuan Longping, Zhou Xuechun
                                            Text of auditing report


To the Shareholders of Shenzhen Tellus Holding Co., Ltd.


We have audited the Companying consolidated and parent Company’s financial statements of Shenzhen
Tellus Holding Co., Ltd. (“the Company”), including balance sheet of 31 December 2016 and profit
statement, and cash flow statement, and statement on changes of shareholders’ equity for the year ended,
and notes to the financial statements for the year ended.


I. Management’s responsibility for the financial statements
Management of the Company is responsible for prepare and present financial statement of the Company,
which including: (1) Prepare financial statements with fair presentation in line with Accounting Standards
for Business Enterprises; (2) Designing, executed and maintaining necessary internal control in order to
prevent fundamental miscarrying in financial statement from fraudulent or errors.


II. Auditor's responsibility
Our responsibility is to express an audit opinion on these financial statements based on our audit. We
performed our audit in accordance with Chinese Certified Public Accountants' Auditing Standards. Those
standards require us to comply with professional ethics, and to plan and perform our audit so as to obtain
reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures of
the financial statements. The selective audit procedures depend on auditor's judgment, including the
evaluation of the risk of material misstatement of the consolidated financial statements due to frauds or
errors. When evaluating risk, we consider internal control related to financial statements, in order to
design auditing procedures, but not for the purpose of expressing an opinion on the internal control's
effectiveness. An audit also includes assessing the appropriateness of the accounting policies adopted and
the reasonableness of the accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that we have obtained sufficient and appropriate audit evidences to provide a basis for our


                                                      77
                                                    深圳市特力(集团)股份有限公司 2016 年年度报告全文



audit opinion.


III. Auditing opinion
In our opinion, the Company’s financial statements have been prepared in accordance with the
Enterprises Accounting Standards and Enterprises Accounting System, and they fairly present the
financial status of the Company and of its parent Company as of 31 December 2016 and its operation
results and cash flows for the year ended.




                                               78
                                                       深圳市特力(集团)股份有限公司 2016 年年度报告全文




                               Consolidated Balance Sheet
                                      As at 31 December 2016
Prepared by:Shenzhen Tellus Holding Co.,Ltd.                                    Currency: RMB Yuan
                      Item                  Note VI.        Closing balance        Opening balance
Current Assets:
  Monetary funds                                1               218,497,640.10          159,184,710.93
  Financial assets held-for-trading
  Note receivables
  Account receivables                           2                   113,736.64              562,051.31
  Prepayments                                   3                 8,436,668.35            6,454,769.40
  Premiums account receivable                   4                   172,055.56              348,833.33
  Dividends receivable
  Other receivables                             5                16,586,387.45           11,128,001.89
  Inventories                                   6                11,038,915.69           16,151,336.61
  Non-current asset due within one year
  Other current assets                          7                90,123,901.32          165,565,445.21
             Total current assets                               344,969,305.11          359,395,148.68
Non-current Assets:

  Financial assets held-for-trade               8                10,478,985.77           10,478,985.77

  Held-to-maturity investments                  9
  Long-term receivables                         10
  Long-term equity investments                  11              203,633,308.06          220,180,721.29
  Investment properties                         12               77,602,248.53           82,100,133.48
  Fixed assets                                  13              129,226,236.16          136,583,565.00
  Construction in progress                      14              343,365,313.46          279,056,650.35
  Materials for construction
  Disposal of fixed assets
  Bio-assets in production
  Oil and gas assets
  Intangible assets                             15               53,739,118.72           52,985,273.37
  Development expenditure
  Goodwill
  Long-term deferred expenses                   16                1,437,761.31            1,499,006.24
  Deferred tax assets                           17               24,448,797.86           24,488,443.31
  Other non-current assets                      18                  100,000.00            1,900,000.00
         Total non-current assets                               844,031,769.87          809,272,778.81
                 Total Assets                                 1,189,001,074.98        1,168,667,927.49




                                                 79
                                                                 深圳市特力(集团)股份有限公司 2016 年年度报告全文



                      Consolidated Balance Sheet(Continued)
                                                As at 31 December 2016
Prepared by:Shenzhen Tellus Holding Co.,Ltd.                                                Currency: RMB Yuan
                          Item                       Note VI.         Closing balance        Opening balance
Current liabilities:
  Short-term loans                                     20                   50,000,000.00
  Financial liabilities held-for-trade
  Notes payable
  Accounts payable                                     21                   23,599,227.33           27,417,068.61
  Advance from customers                               22                   11,930,493.02           11,460,807.66
  Employee benefits payable                            23                   27,144,631.18           19,639,738.81
  Taxes and due payable                                24                   10,081,678.60           10,043,901.26
  Premiums payables                                                             77,826.33
   Dividends payable
  Other payables                                       25                  126,045,854.54          193,797,786.68
  Non-current liabilities due within one year          26
  Other current liabilities
             Total current liabilities                                     248,879,711.00          262,359,303.02
Non-current liabilities:
  Long-term loans                                      27                   12,000,000.00
  Bonds payable
  Long-term payables                                   28                    3,920,160.36           13,972,779.67
  Long-term employee benefits payable
  Special payables
  Accrued liabilities                                  29                    1,192,618.90
  Deferred tax liabilities                             17                      232,711.06             478,085.12
  Other non-current liabilities                        30                   14,239,537.48           13,269,356.04
          Total non-current liabilities                                     31,585,027.80           27,720,220.83
                    Total liabilities                                      280,464,738.80          290,079,523.85
Owners' equity:
  Paid-in capital                                      31                  297,281,600.00          297,281,600.00
  Capital reserve                                      32                  564,192,605.51          564,192,605.51
  Less: treasury shares
  other comprehensive income
  Special reserve
  Surplus reserves                                     33                    2,952,586.32            2,952,586.32
  General risk reserve
  Undistributed profit                                 34                   30,935,823.12            3,742,260.49
  Foreign exchange translation difference
Total owners' equity attributable to parent
                                                                           895,362,614.95          868,169,052.32
company
  Minority interests                                                        13,173,721.23           10,419,351.32
              Total owners’equity                                         908,536,336.18          878,588,403.64
     Total liabilities and owners’equity                                1,189,001,074.98        1,168,667,927.49




                                                            80
                                                             深圳市特力(集团)股份有限公司 2016 年年度报告全文




                           Consolidated Income Statement
                                   For the Year Ended 31 December 2016
Prepared by:Shenzhen Tellus Holding Co.,Ltd.                                              Currency: RMB Yuan
                        Item                           Note VI.      Closing balance         Opening balance
Ⅰ.Total operating income                                                324,240,841.90         303,726,790.57
 Including: Operating income                                35           324,240,841.90         303,726,790.57
Ⅱ.Total operating Costs                                                 297,539,255.62         277,820,186.88
 Including: Operating costs                                 35           229,042,849.63         217,992,216.20
            Business tax and extra charges                  36              8,772,047.77          6,189,409.10
            Selling expenses                                37            16,656,674.49          14,718,877.28
            General and administrative expense              38            42,446,751.49          32,881,868.90
            Financial expense                               39               -505,960.97          4,343,688.83
            Impairment losses of assets                     40              1,126,893.21          1,694,126.57
   Add: Gains from changes in fair value ("-"
means loss)
          Investment income ("-" means loss)                41              5,098,993.57         20,992,313.67
         Including: Investment income from
                                                                            1,182,675.73         15,252,012.32
associates and joint venture
Ⅲ.Operating profit ("-" means loss)                                      31,800,579.85          46,898,917.36
     Add: Non-operating income                              42               100,551.57             533,675.86
           Including:Gain from disposal of non-
                                                                              68,314.27              39,278.33
current assets
     Less: Non-operating expenses                           43              1,415,801.07            139,497.06
          Including: Loss on disposal of non-current
                                                                             120,004.34              73,623.42
assets
Ⅳ.Total profit ("-" means loss)                                          30,485,330.35          47,293,096.16
    Less: Income tax expenses                               44              2,867,397.81          4,555,052.61
Ⅴ.Net profit ("-" means loss)                                            27,617,932.54          42,738,043.55
   Net attributable to owners of parent company                           27,193,562.63          42,768,789.52
   Minority interests                                                        424,369.91             -30,745.97
Ⅵ.Earnings per share
   Basic Earnings per share                                                      0.0915                0.1028
   Diluted Earnings per share                                                    0.0915                0.1028
Ⅶ.Net value of other comprehensive income
after tax
    Net value of other comprehensive income after
tax to owners of parent company
    Other comprehensive income that can be
reclassified into profit and loss
    The gains and losses on fair value changes of
financial assets held-for-trade
Ⅷ.Total comprehensive income                                             27,617,932.54          42,738,043.55
  Total comprehensive income attributable to
                                                                          27,193,562.63          42,768,789.52
owners of parent company
  Total comprehensive income attributable to
                                                                             424,369.91             -30,745.97
minority interests




                                                       81
                                                                        深圳市特力(集团)股份有限公司 2016 年年度报告全文



                           Consolidated Statement of Cash Flows
                                         For the Year Ended 31 December 2016
Prepared by:Shenzhen Tellus Holding Co.,Ltd.                                                         Currency: RMB Yuan
                                                                                   Amount for the      Amount for the
                             Item                                      Note VI.
                                                                                   current period       prior period
Ⅰ. Cash Flow from Operating Activities:
    Cash received from sales of goods or rendering of
                                                                                     370,098,515.70        336,791,620.45
services
    Refund of taxes and levies
    Cash received relating to other operating activities                 45           12,156,441.52         17,297,241.43
    Sub-total of Cash Inflows                                                        382,254,957.22        354,088,861.88
     Cash paid for goods and services                                                209,258,447.95        160,383,590.90
     Cash paid to and on behalf of employees                                          60,984,493.75         58,345,635.86
     Cash paid on taxes and levies                                                    20,335,212.12         19,126,200.02
    Cash paid relating to other operating activities                     45           33,801,869.08         35,550,807.77
    Sub-total of Cash Outflows                                                       324,380,022.90        273,406,234.55
    Net Cash Flows from Operating Activities                                          57,874,934.32         80,682,627.33
Ⅱ. Cash Flows from Investing Activities:
     Cash received from return of investments                                        401,300,000.00        360,000,000.00
     Cash received investing income                                                   12,363,270.79         12,040,301.35
    Net cash received from disposal of fixed assets,
                                                                                                               540,140.57
    intangible assets and other long assets
    Net cash flows from disposal subsidiary and other
operating unite
     Other cash received relating to investing activities
     Sub-total of Cash Inflows                                                       413,663,270.79        372,580,441.92
     Cash paid to acquire fixed assets, intangible assets
                                                                                      67,736,915.76        147,978,461.70
and other long assets
     Cash paid on investments                                                        306,590,290.86        585,000,000.00
     Net cash paid on obtain subsidiary and other operating
unite
     Cash paid on other investing activities
    Sub-total of Cash Outflows                                                       374,327,206.62        732,978,461.70
    Net Cash Flows from Investing Activities                                          39,336,064.17       -360,398,019.78
Ⅲ. Cash flow from Financing Activities
     Cash received from investments                                                    2,330,000.00        635,500,000.00
      Including: Cash received from investments by minority
interests of subsidiaries
     Cash received from borrowing                                                     62,000,000.00         24,698,215.03
     Cash received from issuing bonds
     Cash received from other financing activities                       45
     Sub-total of Cash Inflows                                                        64,330,000.00        660,198,215.03
     Cash repayments on borrowed amounts                                              63,000,000.00        327,595,765.58
     Cash payments for distribution of dividends or profits                           19,228,479.17         11,785,448.58
      Including: Dividends or profit paid to minority interests
of subsidiaries
     Cash payments on other financing activities                         45                                 21,828,274.26
    Sub-total of cash Outflows                                                        82,228,479.17        361,209,488.42
    Net cash flows from financing activities                                         -17,898,479.17        298,988,726.61
Ⅳ. Effect of foreign exchange rate on cash                                                  409.85           -134,292.88
Ⅴ. Net increase in cash and cash equivalents                                         79,312,929.17         19,139,041.28
     Add: cash equivalents at the beginning of the period                             99,184,710.93         80,045,669.65
Ⅵ. Cash equivalents at the end of the period                                        178,497,640.10         99,184,710.93




                                                                  82
                                                                                                                                                                                                                                                                深圳市特力(集团)股份有限公司 2016 年年度报告全文




                                                                                                                                     CONSOLIDATED STATEMENT OF CHANGE IN OWNER'S EQUITY
                                                                                                                                                                  For the Year Ended 31 December 2016
Prepared by:Shenzhen Tellus Holding Co.,Ltd.                                                                                                                                                                                                                                                                                                      Currency: RMB Yuan
                                                                                                                 Amount for the current year                                                                                                                                 Amount for the prior year

                                                                                         Attribute to the equity of parent company                                                                                                                  Attribute to the equity of parent company
                     Item
                                                                                                                                                                            Minority         Total owners'                                                                                                                             Minority         Total owners'
                                                                                         Less:              other                                                                                              Paid-in capital                   Less:      other
                                                   Paid-in capital (or                          Special                               General   Undistributed               interests           equity                                                               Special       Surplus       General                               interests           equity
                                                                       Capital reserve Treasury         comprehensive Surplus reserve                             Others                                         (or Share     Capital reserve Treasury comprehensiv                                     Undistributed profit Others
                                                    Share capital)                              reserve                               reserve      profit                                                                                                            reserve       reserve       reserve
                                                                                        shares             income                                                                                                 capital)                      shares    e income

1.Balance at the End of Last Period                   297,281,600.00   564,192,605.51                                        2,952,586.32          3,742,260.49            10,419,351.32     878,588,403.64    220,281,600.00     7,672,605.51                                    2,952,586.32                 -39,026,529.03          10,450,097.29     202,330,360.09

   Add: Changes of accounting policies

           Prior year adjustments

           Others

2. Balance at the Beginning of the Year               297,281,600.00   564,192,605.51                                        2,952,586.32          3,742,260.49            10,419,351.32     878,588,403.64    220,281,600.00     7,672,605.51                                    2,952,586.32                 -39,026,529.03          10,450,097.29     202,330,360.09

 3. Increase/Decrease movements in
                                                                                                                                                  27,193,562.63             2,754,369.91       29,947,932.54    77,000,000.00   556,520,000.00                                                                  42,768,789.52             -30,745.97     676,258,043.55
this Year ("-" means loss)

(I)Total comprehensive income                                                                                                                     27,193,562.63              424,369.91        27,617,932.54                                                                                                    42,768,789.52             -30,745.97      42,738,043.55

(II) Gain/Loss to Owners' Equity Directly

(III) Capital Injected and Reduced by Owners                                                                                                                                2,330,000.00        2,330,000.00    77,000,000.00   556,520,000.00                                                                                                           633,520,000.00

a. Capital injected by owners                                                                                                                                               2,330,000.00        2,330,000.00    77,000,000.00   556,520,000.00                                                                                                           633,520,000.00

b. Payment for shares included in owners' equity


c. Others

(IV) Profit Distribution

a. Withdrawal surplus reserve

b. Provisions withdrawn for general risk

c. Distribution to owners (or shareholders)

d. Others

(V) Internal transfers of owners' equity

 a. Capitalisation of Additional paid-in
capital; (or share capital)
 b. Capitalization of surplus reserve (or
share capital)
 c. Making up losses of surplus
reserve
d. Others

(VI) Special Reserve

a. Withdrawal of special reserve

b. Use of special reserve

(VII) Others

4. Balance at the end of the period                   297,281,600.00   564,192,605.51                                        2,952,586.32         30,935,823.12            13,173,721.23     908,536,336.18    297,281,600.00   564,192,605.51                                    2,952,586.32                   3,742,260.49          10,419,351.32     878,588,403.64




                                                                                                                                                                                        83
                                                          深圳市特力(集团)股份有限公司 2016 年年度报告全文




                                         Balance Sheet
                                        As at 31 December 2016
Prepared by:Shenzhen Tellus Holding Co.,Ltd.                                      Currency: RMB Yuan

                     Item                    Note XIII.       Closing balance        Opening balance

Current Assets:
  Monetary funds                                                 150,800,890.39            80,301,551.68

  Financial assets held-for-trade

  Notes receivable

  Accounts receivable                            1

  Prepayments                                                          32,280.00              101,280.00

  Premiums receivable                                                 172,055.56              348,833.33

  Dividends receivable

  Other receivables                              2                 98,999,650.03           93,744,827.52

  Inventories

  Non-current asset due within one year

  Other current assets                                             90,000,000.00          145,000,000.00

          Total current assets                                   340,004,875.98           319,496,492.53

Non-current Assets:

  Financial assets available-for-sale                              10,176,617.20           10,176,617.20

  Held-to-maturity&