Subsequent to the filing of Form 20F for the financial year ended December 31, 2017, management identified the following accounting errors:

1. The Group had over accrued certain interest expenses of RMB4,349,000 which should have been recorded in the year of 2018. This error understated the net profit of RMB4,349,000 in 2017, overstated other payable of RMB3,618,000 and overstated interest payable of RMB731,000 as of December 31, 2017.

2. There was a total of RMB14,604,000 payable for expenses related to the reverse merger and equity transaction should have been accrued for as of December 31, 2017. RMB8,175,000 was determined to be related to the reverse merger while RMB6,429,000 was determined to be related to the equity transaction. These errors caused an overstatement of net profit in the amount of RMB8,175,000, understatement of other payable of RMB14,604,000 and overstatement of shareholders’ equity of RMB6,429,000 (or RMB5,143,000 after accounted for non-controlling interests).

3. Income tax impact for the errors stated in 1 and 2 above totaled RMB269,000 which understated the net profit for the year ended December 31, 2017.

4. The Group overstated deferred tax assets of RMB645,000 of December 31, 2017. As a result, such deferred tax asset was being reversed. This error overstated net profit by RMB645,000 for the year ended December 31, 2017.

5. The Group incorrectly computed earnings per share using net profit, instead of using net profit attributable to equity holders of the Company. Basic and diluted earnings per share impact for errors stated in 1, 2, 3, 4 and 5 was RMB0.04 per share.

6. The Group incorrectly classified a deposit of RMB14,928,000 to purchase certain floors of an office building as prepaid expenses – current. Due to non-current nature of property and equipment to be acquired, such deposit should be classified as non-current as of December 31, 2017.

7. The Group incorrectly accrued the statutory reserve and general risk reserve in accordance with the PRC regulatory requirements. As a result, under the equity section, the statutory reserve was understated by RMB7,017,000 (or RMB5,614,000 after accounted for non-controlling interests), general risk reserve was understated by RMB4,908,000 (or RMB3,926,000 after accounted for non-controlling interests) and retained earnings were overstated by RMB11,925,000 (or RMB9,540,000 after accounted for non-controlling interests).

8. The Group classified loan receivables in cash flow from investing activities as originated loan disbursement and repayments of loans from customers. However, since the Group’s principal business activities is to provide loan to customers to earn interest income, such activities should be considered as operating activities. As a result, cash flows generated by operating activities was overstated by RMB121,040,000 and RMB213,138,000 for the year ended December 31, 2017 and 2016, respectively. While cash flows used in investing activities was overstated by RMB121,040,000 and RMB213,138,000 for the year ended December 31, 2017 and 2016, respectively.

9. The Group understated proceeds received from shareholders’ loans by RMB38,600,000 and repayment of shareholders’ loans by RMB38,600,000 for the year ended December 31, 2017. The net result of both items was nil. There was no impact to the net cash generated by financing activities.

10. The Group understated proceeds received from shareholders’ loans by RMB48,000,000 and repayments of shareholders’ loans by RMB58,000,000 for the year ended December 31, 2016. There was no impact to the net cash generated by financing activities

As a result, the financial statements for the years ended December 31, 2017 and 2016 have been restated, respectively, as follows:

	December 31, 2017
Statement of profit and other comprehensive income (extract)	As previously reported			Adjustments			As currently reported
	RMB’000			RMB’000			RMB’000

Interest expense (note 29.1)		(38,140	)		4,349			(33,791	)
Total interest expense		(38,814	)		4,349			(34,465	)

General and administrative (note 29.2)		(26,720	)		(8,175	)		(34,895	)
Total operating costs and expenses		(29,858	)		(8,175	)		(38,033	)

Profit before income taxes (notes 29.1 and 29.2)		48,202			(3,826	)		44,376
Income tax expense (notes 29.3 and 29.4)		(14,636	)		(914	)		(15,550	)
Net profit		33,566			(4,740	)		28,826
Basic and diluted earnings per share (note 29.5)		0.14			(0.04	)		0.10

Balance sheet (extract)	As of December 31, 2017
			Restatement Adjustments
	As previously reported		Adjustments			Other impacts			As currently reported
	RMB’000		RMB’000			RMB’000			RMB’000
Current assets
Prepaid expenses and others (note 29.6)		15,411		-			(14,928	)		483
Total current assets		868,146		-			(14,928	)		853,218

Non-current assets
Prepayment for a property (note 29.6)		-		-			14,928			14,928
Deferred tax asset (note 29.5)		645		(645	)		-			-
Total non-current assets		983		(645	)		14,928			15,266

Total assets		869,129		(645	)		-			868,484

Current liabilities
Income taxes payable (note 29.3)		14,851		269			-			15,120
Interest payable (note 29.1)		4,560		(731	)		-			3,829
Other payable (notes 29.1 and 29.2)		15,730		10,986			-			26,716
Total current liabilities		265,076		10,524			-			275,600
Shareholders’ equity
Additional paid-in capital (note 29.2)		388,317		(5,143	)		-			383,174
Statutory reserve (note 29.7)		7,751		-			5,614			13,365
General risk reserve (note 29.7)		5,891		-			3,926			9,817
Retained earnings		80,958		(3,792	)		(9,540	)		67,626
Non-controlling interests in equity		120,811		(2,234	)		-			118,577
Total shareholders’ equity		604,053		(11,169	)		-			592,884

Total equity and liabilities		869,129		(645	)		-			868,484

	December 31, 2017
Cash flow Statement (extract)	As previously reported			Adjustments			Other impacts			As currently reported
	RMB’000			RMB’000			RMB’000			RMB’000

Cash flow from operating activities
Profit before income taxes (notes 29.1 and 29.2)		48,202			(3,826	)		-			44,376
Credit impairment losses		6,402			-			(2,822	)		3,580
Operating profit before changes in working capital		55,045			(3,826	)		(2,822	)		48,397
Interest receivables		(22,309	)		-			2,822			(19,487	)
Loans receivable (note 29.8)		-			-			(121,040	)		(121,040	)
Interest payable (note 29.1)		1,333			(731	)		-			602
Other payable (notes 29.1 and 29.2)		13,046			10,986			-			24,032
Net cash generated/(used) by operating activities		58,585			6,429			(121,040	)		(56,026	)
Net cash generated/(used) by operating activities		44,192			6,429			(121,040	)		(70,419	)

Cash flow from investing activities
Originated loan disbursements (note 29.8)		(397,190	)		-			397,190			-
Repayments of loans from customers (note 29.8)		276,150			-			(276,150	)		-
Net cash used in investing activities (note 29.8)		(135,968	)		-			121,040			(14,928	)

Cash flow from financing activities
Share issuance expenses (note 29.2)		(9,198	)		(6,429	)		-			(15,627	)
Proceeds received from shareholders’ loans (note 29.9)		14,000			-			38,600			52,600
Repayment of shareholders’ loans (note 29.9)		(4,000	)		-			(38,600	)		(42,600	)
Proceeds received from loans payable (note 29.9)		402,300			-			(38,600	)		363,700
Repayment of loans payable (note 29.9)		(386,400	)		-			38,600			(347,800	)
Net cash generated by financing activities		16,702			(6,429	)		-			10,273

	December 31, 2016
Cash flow Statement (extract)	As previously reported			Other impacts			As currently reported
	RMB’000			RMB’000			RMB’000

Cash flow from operating activities
Loans receivable (note 29.8)		-			(213,138	)		(213,138	)
Net cash generated/(used) by operating activities		38,167			(213,138	)		(174,971	)
Net cash generated/(used) by operating activities		16,708			(213,138	)		(196,430	)

Cash flow from investing activities
Originated loan disbursements (note 29.8)		(446,264	)		446,264			-
Repayments of loans from customers (note 29.8)		233,126			(233,126	)		-
Net cash used in investing activities (note 29.8)		(213,138	)		213,138			-

Cash flow from financing activities
Proceeds received from shareholders’ loans (note 29.10)		2,000			48,000			50,000
Repayments of shareholders’ loans (note 29.10)		(2,000	)		(58,000	)		(60,000	)
Proceeds received from loans payable (note 29.10)		384,240			(48,000	)		336,240
Repayments of loans payable (note 29.10)		(332,990	)		58,000			(274,990	)