Compare and contrast the presentation of Financial Statement (2019) with Company A and Company B, analyse its financial performance and operation results with recommendation.

Cash flows iron-t operating activities Cash generated from/[used in) operations Income tax paid Net cash flows generated from/{used in) operating activities Cash flows from investing activities Purchase of property. plant and equipment Proceeds from disposals of property. plant and equipment Purchase of intangible assets Proceeds from disposals of intangible assets Payments for business combinations. net of cash acquired Purchase of investments of term deposits with initial term over three months and wealth management products Proceeds from disposals of term deposits with initial term over three months and wealth management products Acquisition ot investments accounted for using the equity method Proceeds from disposal of equity investments and reiund of prepayment for investments Acquisition oi investments measured at lair value Cash inow arising from disposal of subsidiaries, net of cash disposed Gains received from investments of term deposits with initial term over three months and wealth management products Dividends received Loan to related party Increase in prepayment for investments Net cash flows used in investing activities Meiluan Dianping 2019 Annual Fleport Company B - Cash Flow Year ended December 31, 201 9 Note FIMB' 000 35 6,037,524 (463.304) 5,574,220 (2.934.973) 62.334 (16,?60) 1.933 (1.335.975) (177,154,553) 170243.473 (141 .925) 323.377 (455.937) 35.808 1.315.333 13.731 (35.335) (29.954) (10.174.018) 2013 HMB'UOO (3.931.139) (1 93.829) (9.179.313) (2.21 0.2 49) 24.693 (99,? 1 2) 3.397 (7.230.037) (91.205.155) 75.235.650 (1 83,875) 3.453.913 (1.599.549) 231 533.063 65.954 (247,673) (23.438586) Company A - Balance Sheet (Continue) CONSOLIDATED BALANCE SHEET As of December 31, 2019 (Expressed in RMB] As of December 31, Note 2019 2018 RMB'000 RMB'000 Liabilities Non-current liabilities Borrowings 33 4,786,856 7,856, 143 Deferred income tax liabilities 34 579,902 777,645 Warranty provision 667,857 559,016 Other non-current liabilities 29 3,756,211 2,844,859 9,790,826 12,037,663 Current liabilities Trade payables 30 59,527,940 46,287,271 Other payables and accruals 31 9,101,343 6,312,770 Advance from customers 32 8,237, 119 4,479,522 Borrowings 33 12,836,555 3,075, 194 Income tax liabilities 479,350 661,816 Warranty provision 1,998,398 1, 123,585 92,180,705 61,940, 158 Total liabilities 101,971,531 73,977,821 Total equity and liabilities 183,629,207 145,227,950 The notes on pages 191 to 325 are an integral part of these consolidated financial statements. The consolidated financial statements on pages 183 to 325 were approved by the Board of Directors on March 31, 2020 and were signed on its behalf: Lei Jun Lin BinCompany B - Income Statement CONSOLIDATED INCOME STATEMENT Year ended December 31, 2019 2018 Note RMB' 000 RMB' 000 Revenues Commission 65,525,997 47,012,249 Online marketing services 15,840,078 9,391,406 Interest revenue 786,032 456,077 Other services and sales 15,376,424 8,367,546 97,528,531 65,227,278 Cost of revenues (65,208,143) (50, 122,320) Gross profit 32,320,388 15,104,958 Selling and marketing expenses (18,819,067) (15,871,901) Research and development expenses (8,445,664) (7,071,900) General and administrative expenses (4,338,954) (5,546,037) Net provision for impairment losses on financial assets (645,685) (285,655) Fair value changes on investments measured at fair value through profit or loss 19 77,699 1,836,382 Other gains, net 2,531,143 748,356 Operating profit/(loss) 2,679,860 (11,085,797) Finance income 10 166,217 294,047 Finance costs 10 (191,042) (44,732) Fair value changes of convertible redeemable preferred shares 28 (104,606,058) Share of gains/(losses) of investments accounted for using equity method 12 107,353 (48,267) Profit/(loss) before income tax 2,762,388 (115,490,807) Income tax expenses 13 (526,223) 1,888) Profit/(loss) for the year 2,236,165 (115,492,695) Profit/(loss) for the year attributable to: Equity holders of the Company 2,238,769 (115,477,171) Non-controlling interests (2,604) (15,524) 2,236,165 (115,492,695) Earnings/(loss) per share for profit/(loss) for the year attributable to the equity holders of the Company Basic earnings/(loss) per share (RMB) 14 0.39 (42.40) Diluted earnings/(loss) per share (RMB) 14 0.38 (42.40) The notes on pages 158 to 272 are an integral part of these consolidated financial statements. 150 Meituan Dianping 2019 Annual ReportCompany B - Cash Flow(Continue) CONSOLIDATED STATEMENT OF CASH FLOWS Year ended December 31, 2019 2018 Note RMB' 000 RMB' 000 Cash flows from financing activities Proceeds from borrowings, excluding asset-backed securities ("ABS") 3,640,000 2,305,000 Repayments of borrowings, excluding ABS (2,250,000) (1,057,000) Proceeds from ABS, net 467,000 470,000 Repayments of ABS (107,969) Finance costs paid (218,692) (62,043) Proceeds from issuance of ordinary shares, net 28,516,174 Proceeds from exercise of option and RSU vesting 444,915 158,054 Repurchase of ordinary shares (854,630) Payment for acquisitions of non-controlling interests (75,162) (176,261) Lease payments (785,825) Dividends paid to non-controlling interests (4,000) Net cash flows generated from financing activities 1,114,267 29,295,294 Net decrease in cash and cash equivalents (3,485,531) (3,323,210) Cash and cash equivalents at the beginning of the year 17,043,692 19,408,839 Exchange (loss)/gain on cash and cash equivalents (173,442) 1,009,587 Cash and cash equivalents reclassified from the assets classified as held for sale/(included in the assets classified as held for sale) 11,466 (51,524) Cash and cash equivalents at the end of the year 24 13,396,185 17,043,692 2019 Annual Report Meituan Dianping 1572019 ANNUAL REPORT 189 Company A - Cash Flow CONSOLIDATED STATEMENT OF CASH FLOWS For the year ended December 31. 2019 [Expressed in EMS] Year ended December 31. Note 2019 2818 RMB'OOU RM B'UOO Cash flows from operating activities Cash generated from operations 36laI 255752.231I 122.171 Income tax paid [2,141,885] [1536.742] Net cash generated from/[used II'II operating activities 23,310,354 [1.414.571] Cash flows from investing activities Capital expenditures [3.405.163] [3.785.259] Proceeds from disposal of property and equipment Bolbi 67.735 27.367 Placement of short-term bank deposits [25,728,849] (2,060.??91 Withdrawal of short-term bank deposits 5.525.382 903.504 Placement of tong-term bank deposits [590.157] Purchase of short-term investments measured at fair value through profit or loss [134,409,027] [140355.400] Receipt from maturity of short-term investments measured at fair value through profit or toss 124.632.553 139,154.171 Purchase of short-term investments measured at amortized cost [3.500.500] Receipt from maturity of short-term investments measured at amortized cost 4,300.500 Interest income received 864.226 489.8l6 Investment income received 386.461 335.675 Purchase of long-term investments measured at fair value through profit or loss [3.937.225] [1399.752] Proceeds from disposal of long-term investments measured at fair value through profit or toss 4.346.175 304.??? Purchase of investments accounted for using the equity method [200.000] I7?3.5?5] Proceeds from disposal of investments accounted for using the equity method 80.048 Disposat of a subsidiary [25.655] Acquisition of a subsidiary. net ol cash acquired - [34.936] Dividends received 347.205 131.804 Net cash used in investing activities [31 570.136] [7.508.540] Company A - Cash Flow Continue) CONSOLIDATED STATEMENT OF CASH FLOWS For the year ended December 31,2019 [Expressed in RMB] Year ended December 31. Note 2019 2018 RMB'DOD RM 8000 Cash flows from nancing activities Proceeds From borrowings 117.036.3724 10,269,415 Repayment of borrowings [10.411025] 110.505.6371 Finance expenses paid 1218.994] 1243.966] Placement of restricted cash [4.152.365] Withdrawal of restricted cash 75.??3 5.059.265 Payment tor acquisition of nonecontrolling interests in a non-wholly owned subsidiary 118?.000] 1165.000] Proceeds From tund investors 2.781.000 Net proceeds From issuance of ordinary shares relating to the initial public offering 232438.620 Net proceeds from exercise of share options 186.838 7 Payments tor shares repurchase [2.932.111] Payment of Lease liabilities 1578.863] Capital contribution from noncontrolling interests 1551.96 Proceeds from release of ordinary shares from Share Scheme Trust 91.96? Others 190.8?3 Net cash generated from financing activities 3.121.238 26.5%.\"? Net tdecreasei/increase in cash and cash equivalents [6.638.544] 17,651.56] Cash and cash equivalents at the beginning of the year Edie] 30,230.14? 11,563.28? Effects of exchange rate changes on cash and cash equivalents 328.258 1.015.304 Cash and cash eguivalenls at the end at the year 241a] 25.911861 30,230.14'.1r The notes on pages 191 to 325 are an integral part of these consolidated nancial statements. Company A - Income Statement CONSOLIDATED INCOME STATEMENT For the year ended December 31, 2019 (Expressed in Renminbi ["RMB"]] Year ended December 31, Note 2019 2018 RMB'000 RMB '000 Revenue 205,838,682 174,915,425 Cost of sales (177,284,649) (152,723,486) Gross profit 28,554,033 22, 191,939 Selling and marketing expenses (10,378,073) [7,993,072) Administrative expenses (3, 103,901) (12,099,078) Research and development expenses (7,492,554) (5,776,826) Fair value changes on investments measured at fair value through profit or loss 19(iv) 3,813,012 4,430,359 Share of losses of investments accounted for using the equity method 11 (b) (671,822) (614,920) Other income 1,265,921 844,789 Other (losses)/gains, net (226,399 213,281 Operating profit 11,760,217 1, 196,472 Finance income, net 10 402,429 216,373 Fair value changes of convertible redeemable preferred shares 35 12,514,279 Profit before income tax 12, 162,646 13,927,124 Income tax expenses 12 (2, 059,696) (449,377) Profit for the year 10, 102,950 13,477,747 Attributable to: - Owners of the Company 10,044, 164 13,553,886 - Non-controlling interests 58,786 [76,139) 10, 102,950 13,477,747 Earnings per share (expressed in RMB per share): 13 Basic 0.423 0.843 Diluted 0.410 0.044 The notes on pages 191 to 325 are an integral part of these consolidated financial statements.Company B - Balance Sheet CONSOLIDATED STATEMENT OF FINANCIAL POSITION As of December 31, 2019 2018 Note RMB' 000 RMB' 000 ASSETS Non-current assets Property, plant and equipment 15 5,376,217 3,978,815 Intangible assets 16 32,699,575 33,876,004 Deferred tax assets 18 590,054 445,041 Investments accounted for using the equity method 12 2,283,590 2,103,403 Financial assets at fair value through profit or loss 19 7,166,122 6,241,972 Prepayments, deposits and other assets 21 1,762,312 866,884 49,877,870 47,512, 119 Current assets Inventories 22 275,227 400,244 Trade receivables 23 676,762 466,340 Prepayments, deposits and other assets 21 9,591,157 9,064,945 Short-term investments 20 49,435,599 41,829,964 Restricted cash 24 8,760,115 4,256, 120 Cash and cash equivalents 24 13,396,185 17,043,692 Assets classified as held for sale 88,087 82,135,045 73,149,392 Total assets 132,012,915 120,661,511 EQUITY Share capital 25 389 384 Share premium 25 260,359,929 258,284,687 Other reserves 26 (4,447,252) (5,741,347) Accumulated losses (163,800,621) (166,039,390) Equity attributable to equity holders of the Company 92,112,445 86,504,334 Non-controlling interests 58,051) 5.438 Total equity 92,054,394 86,509,772 152 Meituan Dianping 2019 Annual ReportCompany A - Balance Sheet CONSOLIDATED BALANCE SHEET As of December 31, 2019 (Expressed in RMB] As of December 31, Note 2019 2018 RMB'000 RMB'000 Assets Non-current assets Land use rights 3,402,968 Property and equipment 14 6,992,331 5,068,053 Intangible assets 15 1,672,002 2,061,192 Investments accounted for using the equity method 11 (b) 9,300, 507 8,639,238 Long-term investments measured at fair value through profit or loss 19 20,679,363 18,636,208 Deferred income tax assets 34 1,283,415 1,312,245 Other non-current assets 17 6,162,503 95,485 46,090, 121 39,215,389 Current assets Inventories 23 32,585,438 29,480,685 Trade receivables 21 6,948,567 5,598,443 Loan receivables 20 12,723,503 10,293,645 Prepayments and other receivables 22 19,837,018 20,914,946 Short-term investments measured at fair value through profit or loss 19 16,463,390 6,648,526 Short-term bank deposits 24(c) 21,523,043 1,365,991 Restricted cash 24 (b ) 1,538,266 1,480, 178 Cash and cash equivalents 24(a) 25,919,861 30,230, 147 137,539,086 106,012,561 Total assets 183,629,207 145,227,950 Equity and liabilities Equity attributable to owners of the Company Share capital 25 388 377 Reserves 81,330, 186 71,322,608 81,330,574 71.322,985 Non-controlling interests 327, 102 (72,856) Total equity 81,657,676 71,250, 129Company B - Balance Sheet (Continue) As of December 31, 2019 2013 Note RM 3' 000 RMB' 000 LIABILITIES Non-current liabilities Deferred tax liabilities 13 1.333.469 1.195.369 Deferred revenues 27 339.023 624.999 Borrowings 31 466.676 470.056 Lease liabilities 2.29 992.233 * Other non~current liabilities 129.552 35.759 3.365.953 2.326.633 Current liabilities Trade payabies 29 6.766.253 5.340.963 Payables to merchants 7.495.262 7.596.333 Advances from transacting users 3.355.559 3.226.407 Deposits from transacting users 2.14 2.491.947 3.341.276 Other payables and accruals 30 7.237.412 7.303.407 Borrowings 31 3.552.537 1 300.000 Deferred revenues 27 4.567.171 3.102.332 Lease liabilities 2.29 534.566 Income tax liabilities 91.306 53.223 Liabilities directly associated with assets classified as held for sale 55.510 36.592.563 31 325.056 Total liabilities 39.953.521 34.151 .739 Total equity and liabilities 132.012.915 120.661.511 The notes on pages 153 to 272 are an integral part of these consolidated financial statements. The consolidated financial statements on pages 150 to 272 were approved by the Board of Directors on March 30. 2020 and were signed on its behalf: Wang Xing Mu Fiongiun Director Director 2019 Annual Report Meituan Dianping