TCL科技集团股份有限公司TCL Technology Group Corporation
FIRST QUARTERLY REPORT 2021
27 April 2021
Part I Important Notes, Table of Contents and DefinitionsThe Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,supervisors and senior management of TCL Technology Group Corporation (hereinafterreferred to as the “Company”) hereby guarantee the factuality, accuracy and completeness ofthe contents of this Report, and shall be jointly and severally liable for any misrepresentations,misleading statements or material omissions therein.All the Company’s directors have attended the Board meeting for the review of this Report,and all the Company’s supervisors have attended the meeting of the Supervisory Committeefor the review of this ReportMr. Li Dongsheng, the Chairman of the Board, Ms. Du Juan, the person-in-charge offinancial affairs (Chief Financial Officer), and Mr. Xi Wenbo, the person-in-charge of thefinancial department, hereby guarantee that the financial statements carried in this Reportare factual, accurate and complete.This Report has been prepared in both Chinese and English. Should there be anydiscrepancies or misunderstandings between the two versions, the Chinese version shallprevail.
Table of Contents
Part I Important Notes, Table of Contents and Definitions ...... 2
Part II Key Corporate Information ...... 4
Part III Directors’ Report ...... 9
Part IV Significant Events ...... 17
Part V Financial Statements ...... 26
Part II Key Corporate InformationI Key Financial Information
Indicate whether there is any retrospectively restated datum in the table below.
□ Yes ■ No
| Q1 2021 | Q1 2020 | Change (%) | |
| Revenue (RMB) | 32,143,561,563 | 13,742,129,162 | 133.91% |
| Net profit attributable to the company’s shareholders (RMB) | 2,403,729,935 | 408,125,802 | 488.97% |
| Net profit attributable to the company’s shareholders before non-recurring gains and losses (RMB) | 2,123,056,041 | -109,881,642 | 2032.13% |
| Net cash generated from/used in operating activities (RMB) | 8,003,201,979 | 2,299,183,493 | 248.09% |
| Basic earnings per share (RMB/share) | 0.1781 | 0.0316 | 463.61% |
| Diluted earnings per share (RMB/share) | 0.1713 | 0.0302 | 467.22% |
| Weighted average return on equity (%) | 7.07% | 1.35% | 5.72% |
| 31 March 2021 | 31 December 2020 | Change (%) | |
| Total assets (RMB) | 274,693,487,644 | 257,908,278,887 | 6.51% |
| Owners’ equity attributable to the company’s shareholders (RMB) | 35,224,374,002 | 34,107,795,454 | 3.27% |
The total share capital at the end of the last trading session before the disclosure of this Report:
| Total share capital at the end of the last trading session before the disclosure of this Report (share) | 14,030,788,362 |
| Fully diluted earnings per share based on the latest total share capital above (RMB/share) | 0.1713 |
Non-recurring gains and losses:
Unit: RMB
| Item | Q1 2021 | Note |
| Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) | -14,935,921 | Not applicable |
| Government subsidies charged to current profit or loss (exclusive of government subsidies given in the Company’s ordinary course of business at fixed quotas or amounts as per the government’s uniform standards) | 302,185,840 | Not applicable |
| Gain or loss on fair-value changes in held-for-trading and derivative financial assets and liabilities & investment income from disposal of held-for-trading and derivative financial assets and liabilities and other debt investments (exclusive of effective portion of hedges that arise in the Company’s ordinary course of business) | 25,600,678 | Not applicable |
| Non-operating income and expense other than the above | 113,649,860 | Not applicable |
| Less: Corporate income tax | 73,184,923 | Not applicable |
| Non-controlling interests (net of tax) | 72,641,640 | Not applicable |
| Total | 280,673,894 | -- |
Explanation of why the Company reclassifies as recurrent a non-recurring gain/loss item defined or listed in the ExplanatoryAnnouncement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Non-Recurring Gain/LossItems:
□ Applicable ■ Not applicable
II Total Number of Shareholders and Holdings of Top 10 Shareholders at the End of theReporting Period
1. Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well asHoldings of Top 10 Shareholders
Unit: share
| Number of ordinary shareholders at the period-end | 570,474 | Number of preference shareholders with resumed voting rights at the period-end (if any) | - | |||
| Top 10 shareholders | ||||||
| Name of shareholder | Nature of shareholder | Shareholding percentage | Total shares held | Restricted shares held | Shares in pledge or frozen | |
| Status | Shares | |||||
| Li Dongsheng and his acting-in-concert party | Domestic natural person/general legal person | 8.26% | 1,158,599,393 | 610,181,602 | Put in pledge by Li Dongsheng | 144,000,000 |
| Put in pledge by Jiutian Liancheng | 344,899,521 | |||||
| Huizhou Investment Holding Co., Ltd. | State-owned legal person | 5.30% | 743,139,840 | - | - | - |
| Wuhan Optics Valley Industrial Investment Co., Ltd. | State-owned legal person | 3.65% | 511,508,951 | 511,508,951 | - | - |
| Hong Kong Securities | Foreign legal person | 3.26% | 457,850,083 | - | - | - |
| Clearing Company Ltd. | ||||||
| China Securities Finance Corporation Limited | Domestic general legal person | 2.66% | 373,231,553 | - | - | - |
| Tibet Tianfeng Enterprise Management Co., Ltd. | Domestic general legal person | 1.76% | 247,284,337 | - | - | - |
| Fang Deji | Domestic natural person | 1.47% | 206,130,576 | |||
| Zhejiang Yiwu Tanzhen Investment Management Partnership (Limited Partnership)－Loyal Valley (Tanzhen) Value China Exclusive Private Securities Investment Fund | Fund, wealth management product, etc. | 1.03% | 145,169,128 | |||
| National Social Security Fund-Portfolio 601 | Fund, wealth management product, etc. | 0.93% | 129,785,014 | - | - | - |
| CITIC Securities－CITIC Bank－CITIC Securities Dividend Value One-Year Mixed Collective Asset Management Plan | Fund, wealth management product, etc. | 0.58% | 80,906,050 | - | - | - |
| Top 10 unrestricted shareholders | ||||||
| Name of shareholder | Unrestricted shares held at the period-end | Shares by type | ||||
| Type | Shares | |||||
| Huizhou Investment Holding Co., Ltd. | 743,139,840 | RMB-denominated ordinary stock | 743,139,840 | |||
| Li Dongsheng and his | 548,417,791 | RMB-denominate | 548,417,791 | |||
| acting-in-concert party | d ordinary stock | ||
| Hong Kong Securities Clearing Company Ltd. | 457,850,083 | RMB-denominated ordinary stock | 457,850,083 |
| China Securities Finance Corporation Limited | 373,231,553 | RMB-denominated ordinary stock | 373,231,553 |
| Tibet Tianfeng Enterprise Management Co., Ltd. | 247,284,337 | RMB-denominated ordinary stock | 247,284,337 |
| Fang Deji | 206,130,576 | RMB-denominated ordinary stock | 206,130,576 |
| Zhejiang Yiwu Tanzhen Investment Management Partnership (Limited Partnership)－Loyal Valley (Tanzhen) Value China Exclusive Private Securities Investment Fund | 145,169,128 | RMB-denominated ordinary stock | 145,169,128 |
| National Social Security Fund-Portfolio 601 | 129,785,014 | RMB-denominated ordinary stock | 129,785,014 |
| CITIC Securities－CITIC Bank－CITIC Securities Dividend Value One-Year Mixed Collective Asset Management Plan | 80,906,050 | RMB-denominated ordinary stock | 80,906,050 |
| Bank of Communications Co., Ltd.－China Southern Growth Pioneer Mixed Securities Investment Fund | 77,368,741 | RMB-denominated ordinary stock | 77,368,741 |
| Related or acting-in-concert parties among the shareholders above | Being acting-in-concert parties upon the signing of the Agreement on Acting in Concert, Mr. Li Dongsheng and Xinjiang Jiutian Liancheng Equity Investment Partnership (Limited Partnership) (hereinafter referred to as “Jiutian Liancheng”) are the biggest shareholder of the Company with a total of 1,158.5994 million shares. | ||
| Top 10 shareholders involved in securities margin trading (if any) | Shareholders Fang Deji and Zhejiang Yiwu Tanzhen Investment Management Partnership (Limited Partnership)－Loyal Valley (Tanzhen) Value China Exclusive Private Securities Investment Fund held shares in the Company in margin accounts. | ||
Note: The top 10 shareholders in the table above do not include “The Securities Account of TCL Technology Group Corporation forRepurchases”. As of the end of the Reporting Period, there were 484,206,763 shares in the account.Indicate whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the Company conductedany promissory repo during the Reporting Period.
□ Yes ■ No
No such cases in the Reporting Period.
2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable ■ Not applicable
Part III Directors’ ReportI. OverviewIn the Reporting Period, the rollout of the COVID-19 vaccine and the implementation ofrelaxed policies contributed to the recovery of the global economy. However, the adjustment ofrelations among major countries continued to disturb the trade order, increasing the instability of theindustrial chain, and accelerating the differentiation and restructuring of the global economicpattern. The manufacturing, as a source of China's economic competitiveness and comparativecompetitive advantage, will usher in a new stage of development. In the face of the challenges andopportunities, the Company continued its efforts in line with the spirit of “Ramping up, Catching upand Going all out to be A Global Leader”, the requirements of the "9205" strategic developmentplan and the operating strategy of “improving operating quality and profitability, consolidatingadvantages and improving disadvantages, accelerating global layout, and driving development viainnovation” to promote the two core businesses, namely the semi-conductor display business andthe semi-conductor photovoltaic and semi-conductor materials business, to be global leadingindustries.
In the first quarter of 2021, the Company recorded a revenue of RMB32.144 billion, up by
133.91% year-on-year; a net profit of RMB3.236 billion, up by 10.96 times year-on-year; a netprofit attributable to the Company’s shareholders of RMB2.404 billion, up by 488.97%year-on-year. TCL CSOT and Zhonghuan Semiconductor had great performance in these two coreindustries. The semi-conductor display industry had constant improvement in the competitionpattern and the supply and demand relationship, resulting in the price rise; the new production lineis raising its mass production, and the scale effect and market position are increasing, productportfolio in high-end market and medium-size products is expanded. TCL CSOT recorded a netprofit of RMB2.396 billion, up by RMB2.57 billion year-on-year and by 29.12% quarter-on-quarter,including a quarter-on-quarter net profit increase of 52.96% from large-size products, achievingcontinuously leading efficiency and profitability. The main raw materials in the photovoltaicindustry continued to increase in price, and the competition pattern tends to be more complex.
Zhonghuan Semiconductor redefined its corporate development strategy, and reduced the costs,increased the capacity of existing equipment, improved product quality and consistency, andreduced raw material consumption per unit of product through technological innovation andimproved manufacturing process. The total capacity of photovoltaic monocrystalline silicon productreached 60GW two months ahead of schedule, the market competitiveness, market share andprofitability improved month by month. With continued global semiconductor shortage, ZhonghuanSemiconductor had accelerated growth in the business of raw materials used for powersemiconductor products. The 8-12-inch large silicon wafers project ramped up smoothly, with arevenue increase of c. 80% year-on-year. Zhonghuan Semiconductor achieved a net profit ofRMB743 million, up by 100.0% year-over-year.
Looking into the rest of 2021, TCL CSOT and Zhonghuan Semiconductor will continue togrow robustly. Phase I of the t7 production line in Shenzhen will reach design capacity this year. 60%shares of Suzhou China Star Optoelectronics (t10) and 100% shares of Suzhou China Star Display(M10) were acquired, which will contribute to revenue of the Company from the second quarter of2021; Moka International Limited will be included in the consolidated statements of the Companyfrom the second quarter of 2021; t9 production line in Guangzhou will be a new driving force inmedium-size field as the Board of Directors has approved it. Zhonghuan Semiconductor acceleratedconstruction of phase V monocrystalline silicon project in Inner Mongolia, and Zhonghuan PhaseVI 50GW(G12) project in Yinchuan, Ningxia Province was commenced as planned. In a new roundof pattern reshaping driven by technological innovation, industrial ecosystem and ultimateefficiency in the PV industry, Zhonghuan Semiconductor stands out thanks to its accumulatedtechnological advantages. Through the G12 platform and overlapped-cell products’ technologicalstrength, the ecological resources of the fast-growing industrial alliance, and the first layout ofadvantageous production capacity, Zhonghuan Semiconductor is confident to complete the DoubleOperating Profit Plan in 2021.
TCL Tech. will seize the golden period of global economic pattern adjustment and China'smanufacturing development, and march forward to be a global industry leader with a strongerdriving force for development!
II. Core Business Analysis
The business structure of the Company primarily consists of the semi-conductor displaybusiness, the semi-conductor photovoltaic and semi-conductor materials business, the industrialfinance and investment business, as well as the other businesses. The Company will continue tooptimize its business structure and further focus its resources on the development of the two corebusinesses, and achieve the strategic goal of global leadership in the two core businesses, namelythe semi-conductor display and the semi-conductor photovoltaic and semi-conductor materials.
(I) Semi-conductor display business
The supply-demand relationship in the semi-conductor display industry was improved,industry consolidation was accelerated, product prices continued to rise, and the overall profitabilityof the industry was enhanced. TCL CSOT continued to adhere to established strategies andoperating strategy, held the business bottom line of maximizing cost efficiency, continuouslyimproved management capabilities and control systems to consolidate the global industryleadership in terms of efficiency and profitability. In the Reporting Period, TCL CSOT recordeda product sales area of 8.344 million square meters, up by 17.5% year-on-year; a revenue ofRMB17.373 billion, up by 90.0% year-on-year; and a net profit of RMB2.396 billion, up byRMB2.57 billion year-on-year or by 29.12% compared with Q4 2020.
The large-size panel business expanded its scale advantage, further promoted its marketposition and maintained leading efficiency and profitability in the world. t1, t2 and t6 plantscontinued to operate at full capacity for strong sales. The t7 plant raised production as scheduled.The shipment of large-size products reached 7.9453 million square meters, up by 15.5%
year-on-year. 12.8133 million pieces were shipped with a year-on-year increase of 7.57%. Salesrevenue was RMB12.072 billion, rising by 94.9% year-on-year. Globally, the Company rose tosecond place in the ranking of market share in TV panels. Besides, it was ranked first regarding themarket share in 55-inch products, second in 32-inch, 65-inch and 75-inch products. The shipment ofinteractive whiteboards jumped to the top across the world. Market shares in commercial displays,such as rail transit products and splicing screen, climbed swiftly.For the small-size panel business, close attention was paid to enhancement of technicalcapacity and optimization of product and customer structures. In terms of the t3 LTPSproduction line, technical capacity was continuously enhanced, product structure was diversified,and cooperation with strategic customers was deepened; the shipment of LTPS mobile panels tookfourth place globally, the shipment of LTPS notebook panels was ranked second in the world, withcontinuous robust growth. The t4 production line of flexible AMOLED displays produced at fullcapacity in Phase I. The flexible foldable screens grew due to the volume spike of new typeslaunched by brand customers. Breakthroughs in new customers will be made further as equipmentfor Phases II and III are being moved in. In the Reporting Period, due to the significant increase infixed costs driven by the expansion of new production lines and seasonal factors, the performanceof small-size panel business slightly declined quarter on quarter, and the Company activelyimproved its operational benefits through product structure optimization and maximizing costreduction. In the Reporting Period, the shipment of t3 and t4 reached 398,700 square meters, up by
81.2% year-on-year; 25.8972 million pieces were shipped with a year-on-year increase of 55.1%.The revenue from the small-size panel business amounted to RMB5.30 billion, increasing by 79.8%year-on-year.
The medium-sized panel business had fast improved comprehensive competitiveness andbecame a new driving force for the growth of TCL CSOT. To grasp the market opportunitiesbrought by emerging application scenarios and demand of performance upgrade, and to enhanceTCL CSOT's market share and competitive advantage in medium-sized displays, the Companyrapidly implemented its medium-sized panel business strategy and completed its reserve intechnology, product and customer, and as a result, successfully introduced multiple world famousbrands of high-end notebooks, tablets and vehicle displays. Based on the existing products, R&D
and customer base, the 8.6 generation oxide semiconductor new display device production line (t9plant) project was quickly built to expand capacity for the medium-sized product market andcustomers, further diversified the e-sports displays, high-end notebooks, tablets, and vehicledisplays and commercial displays. The Company accelerated the upgrade from a global leader inlarge-size display industry to a global leader in full-size display industry by leveraging itsadvantages in low-power consumption, high refresh rate, wide color gamut and other technologicalareas.
Looking into the future, the long-term prospects of the semi-conductor display industryare promising, TCL CSOT continued growth in scale and strengthened its efficiencyadvantages. The concentration of LCD industry is improved and leading enterprises havedeveloped a significant industry barrier. TCL CSOT’s market share and competitive advantage willcontinue to improve significantly over the next 12 quarters as the takeover of t10 plant is completed,the t7 plant continues its capacity ramp-up, phases II and III of the t4 plant are accelerated, andconstruction of t9 plant starts. The Company will continuously optimize product and revenuestructures, implement strategic layout of high-end products, and enhance the scale and overallcompetitiveness of full-size products to drive its sustainable and quality progress.
(II) Semi-conductor photovoltaic and semi-conductor materials
The year 2021 marks the start of ownership reform of Zhonghuan Semiconductor. Thecompany updated the "9205" development strategic plan, which clarifies the overall goal of"global leading strategy for new energy materials and catching up strategy for semiconductormaterials", and accelerated the renewal of opeartions and improved organizational vitality,optimized industrial layout, consolidated advantages and improved disadvantages, and improvedoperating quality and profitability. In the Reporting Period, Zhonghuan Semiconductor acceleratedthe
enhancement of G12 product technology and overlapped-cell modules technology barriersand industrialization process, expand the leading edge of silicon wafer for power semiconductorproducts, and accelerate the increase of the production capacity of silicon wafer for IC products. Itrecorded a revenue of RMB7.46 billion, up by 65.23% year-on-year; a net profit of RMB743
million, up by 100.0% year-on-year.
In terms of semi-conductor photovoltaic, Zhonghuan Semiconductor grasped the goldenopportunity of industry development and accelerated the expansion from technologyleadership to advanced capacity scale leadership and industrial chain ecology leadership.Focusing on the development and integration of two platform-level technologies, namely G12large-size silicon wafers and high-efficiency overlapped-cell modules, and leveraging Industry
4.0 and lean intelligent manufacturing, the company took advantage of product andtechnology to enhance industrial competitiveness.
In terms of photovoltaic materials, the company's G12 monocrystalline silicon and siliconwafers in the Reporting Period gradually highlighted its technical advantages, product sales andearnings grew month by month, and the company's advanced production capacity entered a periodof rapid growth. Phase V crystal production capacity in Inner Mongolia's is climbing as scheduled;following the start of operation of the DW-cut ultra-thin silicon wafer project in Tianjin, for theInner Mongolia Zhonghuan Solar Phase II 25GW(G12) wafer project, the first batch of processequipment arrived at the plant, and commissioning was completed at the end of February, and thisproject is expected to start production in April 2021 and reach design capacity within the year; theconstruction of the 50GW(G12) intelligent factory project launched in Yinchuan started. In addition,through a new round of technical reform and manufacturing methods improvement, ZhonghuanSemiconductor economically increased the theoretical unit capacity of existing equipment and theactual capacity during the Reporting Period, which jointly facilitated the total monocrystalline PVsilicon capacity to be more than 60GW 2 months ahead of the original plan and effectively reducedthe unit investment cost of the company's advanced capacity.
Moreover, the technical reform and manufacturing methods improvement have effectivelyimproved product quality and consistency, reduced raw material consumption per unit of product,and continuously reduced operating costs. As a result, profits on the manufacturing side increasedby more than RMB155 million in the first quarter, absorbing to some extent the impact of the priceincrease of raw and auxiliary material during the Reporting Period. Relevant technologicalinnovation and the continued application of Industry 4.0 in the company's operation scenarios andbusiness processes will bring sustained contributions to the production and sales scale and operating
results in the PV materials segment throughout the year.In terms of photovoltaic cells and modules, Zhonghuan Semiconductor continuouslyperformed R&D of module technology for the overlapped-cell 3.0 production line and PERC3.0cell technology, collaborated with domestically leading G12 PERC cell manufacturers in investingresources for new technology R&D to improve the cost performance of overlapped-cell moduleproducts and achieve the differentiating competitiveness of the final products. The capacity turned5GW/year at the end of the Reporting Period. In the Reporting Period, based on the intellectualproperty rights and R&D capacities of MAXEON in IBC cells and components and overlapped-cellmodules, the company further built up its manufacturing system of cells and components as well assurface and distributed power stations worldwide and improved overseas industrial layout andglobal supply chain system.
In terms of semi-conductor materials business, Zhonghuan Semi-conductor strengthenedproduct technology development and industrial capacity building, and improved productstructure to meet the differentiating needs of strategic customers.In the Reporting Period, benefiting from the inadequate supply in global and Chinesesemiconductor markets and the improvement of its competitiveness, Zhonghuan Semiconductorincreased revenue from silicon wafers by c. 80% year-on-year. Dominated by 5-inch, 6-inch and8-inch silicon wafers for power semiconductor products, the segment growth accelerated, it was at aleading position and had brand recognition in the domestic market in terms of production and salesscale, product diversity, product quality and product certification speed; the production and salesscale of the dominant 8-inch and 12-inch silicon wafers for IC products grew fast, and verificationof strategic customers at home and abroad accelerated. The 8-12-inch large silicon wafer project forintegrated circuits in Yixing, Jiangsu Province is raising capacity smoothly and a short supplysituation has occurred, laying the market foundation for continued capacity release in 2021. Byactively expanding global marketing and service capabilities, actively building market channelnetworks in Europe, Japan, Taiwan and other regions where the semiconductor businesses cluster,creating technical support platforms, and strengthening global system service capabilities,Zhonghuan Semiconductor achieved 30% overseas sales of materials business in the first quarter of2021.
Looking into the rest of 2021, Zhonghuan Semiconductor will increase investment and assetrestructuring of Inner Mongolia base, Tianjin base and Jiangsu base of Zhonghuan Advanced,orderly promote the coverage of the company’s products for power semiconductors chips andintegrated circuit chips of all kind; As the company maintains the domestic and global leadership ofZhonghuan Advanced in power semi-conductor chips of all kinds, it will further improve servicecapability for customers with the advanced production process and to raise further the market sharein this area.
(III) Industrial Finance and Investment Business
TCL Capital seeks investment opportunities in key fields of high-tech industries, includingnew display, semi-conductor industry chain, as well as key materials and process equipment. Theseinvestments took a balanced approach to promote technology development and derive economicbenefits. By the end of the Reporting Period, the AUM of TCL Capital exceeded RMB9 billion, and114 projects were invested cumulatively. Currently, it holds the stake of CATL, DKEM, Cambricon,Newtouch Software, Petro-king Oilfield, ZJBC, HyUnion Holding and other listed companies; asfor Admiralty Harbour Capital, the investment banking and asset management business grewsteadily and it has issued and underwritten 9 bonds and 2 debt management projects. ChinaInnovative focused on industrial chain investment opportunities related to the Company’s two corebusinesses, and has invested in more than 110 listed companies cumulatively with a steady growthin performance.
In the Reporting Period, the finance team focused on the funding needs of the Company’s keyprojects, strengthened the active management of liquidity and currency risk, and gradually satisfiedfinancial needs of business globalization to support the core businesses of the Company to achieveglobal leadership.
Part IV Significant EventsI Major Changes of Main Items in Financial Statements and Financial Indicators within theReporting Period, as well as the Reasons for the Changes
Unit: RMB
| Balance sheet items | 31 March 2021 | 31 December 2020 | Change (%) | Reasons for the Changes |
| Derivative financial assets | 219,179,859 | 453,578,245 | -51.7 | Decrease in derivatives investments |
| Notes receivable | 1,052,967,190 | 595,685,338 | 76.8 | Increase in revenue |
| Prepayments | 1,824,063,319 | 1,355,653,454 | 34.6 | Increase in prepayments to suppliers |
| Other receivables | 8,465,195,129 | 2,793,640,153 | 203.0 | Increase in receivables in relation to investments |
| Borrowings from central bank | 668,442,302 | 469,834,291 | 42.3 | Increase in borrowings received by TCL Tech Finance Co., Ltd. from the central bank |
| Held-for-trading financial liabilities | 1,368,835,184 | 527,901,041 | 159.3 | Increase in financial products |
| Derivative financial liabilities | 174,841,937 | 384,903,731 | -54.6 | Decrease in derivatives investments |
| Taxes and levies payable | 979,478,482 | 670,058,792 | 46.2 | Increase in earnings |
| Long-term payables | 565,351,943 | 1,280,299,665 | -55.8 | Effect of the new accounting standard governing leases |
| Other comprehensive income | -297,310,404 | -145,573,093 | -104.2 | Foreign currency translation differences |
| Income statement items | Q1 2021 | Q1 2020 | Change (%) | Reasons for the Changes |
| Revenue | 32,143,561,563 | 13,742,129,162 | 133.9 | Increase in revenue and consolidation of Zhonghuan Electronics |
| Cost of sales | 25,383,357,989 | 12,743,745,923 | 99.2 | Increase in revenue and consolidation of Zhonghuan Electronics |
| Taxes and levies | 106,853,638 | 38,902,775 | 174.7 | Increase in earnings and consolidation of Zhonghuan Electronics |
| Selling expense | 330,230,062 | 159,592,940 | 106.9 | Increase in revenue and consolidation of Zhonghuan Electronics |
| Administrative expense | 763,004,335 | 321,790,541 | 137.1 | Increase in business and consolidation of Zhonghuan Electronics |
| R&D expense | 1,540,240,528 | 837,453,524 | 83.9 | Increase in R&D investments and consolidation of Zhonghuan Electronics |
| Finance costs | 740,010,321 | 384,913,273 | 92.3 | Increase in financings and consolidation of Zhonghuan Electronics |
| Other income | 343,452,869 | 620,518,501 | -44.7 | Decrease in government subsidies |
| Gain on changes in fair value | -292,943,771 | -205,634,246 | -42.5 | Changes in the fair value of derivatives |
| Credit impairment loss ( “-” for loss) | -31,736,912 | -7,478,551 | 324.4 | Increase in impairment loss on loans and advances to customers |
| Income tax expense | 487,257,128 | 25,846,940 | 1,785.2 | Increase in operating profit and consolidation of Zhonghuan Electronics |
| Net profit attributable to non-controlling interests | 831,927,064 | -137,547,929 | 704.8 | Increase in net profit and consolidation of Zhonghuan Electronics |
| Cash flow statement items | Q1 2021 | Q1 2020 | Change (%) | Reasons for the Changes |
| Net cash generated from/used in operating activities | 8,003,201,979 | 2,299,183,493 | 248.1 | Increase in revenue and consolidation of Zhonghuan Electronics |
| Net cash generated from/used in financing activities | 2,657,860,614 | 7,670,463,871 | -65.3 | Loan repayment and increase in the interest in Zhonghuan Semiconductor in the Reporting Period |
II Progress, Influence and Solutions with regard to Significant Events
| Summary of the significant event | Disclosure date | Index to the related announcement |
| Announcement on the Completion of the Non-Deal Transfer under the Third Global Partner Plan | 22 January 2021 | http://www.cninfo.com |
| Voluntary Announcement on the Increase in the Interest in Tianjin Printronics Circuit | 4 February 2021 |
| Corporation | |
| Announcement on the Progress on the Acquisition of a 60% Interest in Samsung Suzhou LCD Co. Ltd. and the 100% Interest in Samsung Display Suzhou Co., Ltd. | 8 February 2021 |
| Voluntary Announcement on the Increase in the Interest in Tianjin Printronics Circuit Corporation | 17 March 2021 |
| Voluntary Announcement on the Increase in the Interest in Tianjin Zhonghuan Semiconductor Co., Ltd. | 18 March 2021 |
Progress of any share repurchase:
□ Applicable ■ Not applicable
Progress on reducing the repurchased shares by means of centralized bidding:
□ Applicable ■ Not applicable
III Commitments that the Company’s Actual Controller, Shareholders, Related Parties,Acquirers, the Company Itself or Other Parties, Failed to Fulfill on Time during theReporting Period
□ Applicable ■ Not applicable
IV Financial Investments
1. Securities Investments
Unit: RMB’0,000
| Security type | Security code | Security name | Initial investment cost | Measurement method | Beginning carrying amount | Gain/loss on fair-value changes in the Reporting Period | Cumulative fair-value changes recorded in equity | Purchased in the Reporting Period | Sold in the Reporting Period | Gain/loss in the Reporting Period | Ending carrying amount | Accounting title | Funding source |
| Bank’s wealth management product | Not applicable | Sea Gull Collective Capital Trust Plan No. 2 | 20,000 | Fair value | - | 260 | - | 20,000 | - | 260 | 20,260 | Held-for-trading financial assets | Self-funded |
| Convertible | Not appli | Convertible bonds of | 115,077 | Fair value | - | - | - | 115,077 | 103,005 | 1,046 | 12,072 | Held-for-trading | Self-funded |
| bonds | cable | Bank of Shanghai | financial assets | ||||||||||
| Stock | 0860.HK | Apollo | 24,336 | Fair value | 17,847 | - | -12,801 | - | - | - | 11,637 | Investments in other equity instruments | Self-funded |
| Tier 2 capital debt | Not applicable | 20 China CITIC Bank Tier 2 | 10,000 | Amortized cost | 10,148 | - | - | - | - | 95 | 10,244 | Debt investments | Self-funded |
| Asset management plan | Not applicable | Yuanheng FOF Single Asset Management Plan No. 1 | 10,000 | Fair value | 10,040 | 89 | - | - | - | 89 | 10,129 | Held-for-trading financial assets | Self-funded |
| Bonds | USG9T27HAD62 | Vedanta Resources | 8,337 | Fair value | - | -213 | - | 8,337 | - | -213 | 8,251 | Held-for-trading financial assets | Self-funded |
| Bonds | XS2293918285 | Easy Tactic Ltd | 7,890 | Fair value | - | 272 | - | 7,890 | - | 272 | 8,221 | Held-for-trading financial assets | Self-funded |
| Bonds | USG9328DAM23 | Vedanta Resources Ltd | 7,541 | Fair value | - | 45 | - | 7,541 | - | 302 | 7,641 | Held-for-trading financial assets | Self-funded |
| Bonds | US71654QCG55 | Petroleos Mexicanos | 6,677 | Fair value | 7,019 | -165 | - | - | - | 46 | 6,902 | Held-for-trading financial assets | Self-funded |
| Bonds | XS1642686676 | Softbank Group Corp | 6,969 | Fair value | 6,704 | 41 | - | - | - | 265 | 6,793 | Held-for-trading financial assets | Self-funded |
| Other securities investments held at the period-end | 585,818 | -- | 499,197 | -19,391 | 6,841 | 112,409 | 333,493 | 1,321 | 305,524 | - | -- | ||
| Total | 802,646 | -- | 550,954 | -19,060 | -549 | 271,254 | 436,498 | 3,484 | 407,673 | -- | -- | ||
| Disclosure date of the board announcement approving the securities | 12 December 2020 | ||||||||||||
| investments | |
| Disclosure date of the general meeting announcement approving the securities investments (if any) | 29 December 2020 |
2. Investments in Derivative Financial Instruments
| Funding source | Mostly foreign-currency revenue |
| Legal matters involved (if applicable) | Not applicable |
| Disclosure date of the board announcement approving the derivative investments (if any) | 28 April 2018 |
| Analysis of risks and control measures associated with derivative investments held in Reporting Period (including but not limited to market risk, liquidity risk, credit risk, operational risk, legal risk, etc.) | In order to effectively manage the exchange and interest rate risks of foreign currency assets, liabilities and cash flows, the Company, after fully analyzing the market trend and predicting the operation (including orders and capital plans), adopts forward foreign exchange contracts, options and interest rate swaps to avoid future exchange rate and interest rate risks. As its business scale changes subsequently, the Company will adjust the exchange rate risk management strategy according to the actual market conditions and business plans. Risk analysis: 1. Market risk: the financial derivatives business carried out by the Group belongs to hedging and trading business related to main business operations, and there is a market risk of loss due to the fluctuation of underlying interest and exchange rates, which lead to the fluctuation of prices of financial derivatives; 2. Liquidity risk: the derivatives business carried out by the Group is an over-the-counter transaction operated by a financial institution, and there is a risk of loss due to paying fees to the bank for the operations of evening up or selling the derivatives below the buying prices; 3. Performance risk: the Group conducts the derivative business based on rolling budgets for risk management, and there is a risk of performance failure due to deviation between the actual operating results and budgets; 4. Other risks: in the case of specific business operations, if the operator fails to finish the prescribed procedures for report or approval, or fails to record the financial derivative business information accurately, timely and completely, it may result in loss of derivative business or trading opportunities. Moreover, if the trading operator fails to fully understand the terms of transaction contracts or product information, the Group will face the legal risks and transaction losses therefrom. Measures taken for risk control: |
| 1. Basic management principles: the Group strictly follows the hedging principle and the main purpose of locking costs and avoiding risks. It is required that the financial derivatives business to be carried out matches the variety, size, direction and duration of spot goods, and no speculative trading should be involved. In the selection of hedging instruments, only simple financial derivatives that are closely related to the main business operation and meet the requirements of hedge accounting treatment should be selected, and avoid complex business that exceeds the prescribed business scope or is difficult to recognize in terms of risk and pricing; 2. The Group has formulated a special risk management system tailored to the risk characteristics of the financial derivatives business, covering all key aspects such as pre-emptive prevention, in-process monitoring and post-processing. Professional personnel are rationally arranged for investment decision-making, business operations and risk control. Investment participants are required to fully understand the risks of financial derivatives investment and strictly implement the business operations and risk management systems of derivatives. Before starting the derivatives business, the holding company must submit to the management department of the Group detailed business reports including its internal approval, main product terms, operational necessity, preparations, risk analysis, risk management strategy, fair value analysis and accounting methods, and special summary reports on business operated. Operations can be implemented only after getting opinions from the professional department of the Group; 3. Relevant departments should track the changes in the open market price or fair value of financial derivatives, timely assess the risk exposure changes of invested financial derivatives, and make reports to the board of directors on business development; 4. When the combined impairment of the fair value of derivatives and changes in the value of the assets (if any) used for risk hedging by the Group results in a total loss or floating loss amounting to 10% of the recently audited net assets of the Company, and the absolute amount exceeds RMB10 million, the Group will disclose it in a timely manner. | |
| Changes in market prices or fair value of derivative investments in Reporting Period (fair value analysis should include measurement method and related assumptions and parameters) | With the rapid expansion of overseas sales, the Company keeps following the above rules in the operation of forward foreign exchange contracts, interest rate swap contracts and futures contracts to avoid and hedge foreign exchange risks arising from operation and financing. It saw a net gain of RMB91.02 million for the Reporting Period. The fair value of derivatives is determined by real-time quoted price of the foreign exchange market, based on the difference between the contractual price and the forward exchange rate quoted immediately in the foreign exchange market on the balance sheet date. |
| Major changes in accounting policies and specific accounting principles adopted for derivative investments in Reporting Period compared to last reporting period | No significant change |
| Opinion of independent directors on derivative investments and risk control | In view of the fact that certain raw materials of the core business of the Company are purchased overseas, a wide range of settlement currencies is involved. The Company reduces exchange losses and locks transaction costs by reasonable financial derivatives, which helps to reduce risk |
Positions of derivative investments at the period-end:
Unit: RMB’0,000
control costs and improve company competitiveness. Risks are effectively controlled as theCompany has taken series of measures such as conducting a rigorous internal evaluation for theoperation of financial derivatives business, establishing a corresponding regulatory mechanism,formulating reasonable accounting policies and specific accounting principles, setting limits forrisk exposure management, and operating simple financial derivatives. The contracting agent forfinancial derivatives business of the Company is a sound financial agent with good creditstanding. The financial derivatives transactions carried out by the Company in Q1 2021 areclosely related to the daily operation needs of the Company with controllable risks. The businessis in line with the interests of minority shareholders of the company and the relevant laws andregulations.Type of contract
| Type of contract | Beginning amount | Ending amount | Gain/loss in Reporting Period | Ending contractual amount as % of the Company’s ending net assets | |||
| Contractual amount | Actual amount | Contractual amount | Actual amount | Contractual amount | Actual amount | ||
| 1. Forward forex contracts | 1,931,617 | 59,359 | 1,627,130 | 54,962 | 9,102 | 17.75 | 0.60 |
| 2. Interest rate swaps | 758,846 | 22,765 | 764,242 | 22,927 | 8.34 | 0.25 | |
| 3. Currency swaps | 310,520 | 15,526 | 98,570 | 4,928 | 1.08 | 0.05 | |
| Total | 3,000,983 | 97,650 | 2,489,942 | 82,818 | 9,102 | 27.17 | 0.90 |
V Progress of Projects Financed with Raised FundsIn 2020, the Company carried out a program of asset purchase via share and convertible corporatebonds offering and cash payment and matching funds raising, with the total raised funds amountingto RMB2.6 billion. The raised funds would be used to pay the cash consideration for the acquisitionof a 39.95% interest held by Wuhan Industrial Investment in Wuhan CSOT, repay debt andsupplement the working capital. As of 10 March 2021, the raised funds had been used up. Forfurther information, please refer to the Announcement on Using up of the Funds Raised via Shareand Convertible Corporate Bonds Offering for Asset Purchase and Raising the Matching Fundsdisclosed by the Company on the media designated for information disclosure.VI Operating Performance Forecast for H1 2021Warning of a forecast loss on or a forecast significant year-on-year change in the net profit of H1 2021, as well as explanation ofwhy:
□ Applicable ■ Not applicable
VII Significant Contracts Arising from the Company’s Ordinary Course of Business
□ Applicable ■ Not applicable
VIII Cash Entrusted for Wealth Management
Unit: RMB’0,000
| Type | Funding source | Amount | Undue amount | Unrecovered overdue amount |
| Bank’s wealth management product | Self-funded | 200,033.30 | 33.30 | - |
| Securities firm’s wealth management product | Self-funded | 26,000.00 | 16,000.00 | - |
| Trust plan | Self-funded | 20,000.00 | 20,000.00 | - |
| Other | Self-funded | 185,557.43 | 52,552.23 | - |
| Total | 431,590.73 | 88,585.53 | - | |
High-risk wealth management transactions with a significant single amount, low liquidity and no principal protection:
□ Applicable ■ Not applicable
Situation where the principal is expectedly irrecoverable or an impairment may be incurred:
□ Applicable ■ Not applicable
IX Irregularities in the Provision of Guarantees
□ Applicable ■ Not applicable
X Occupation of the Company’s Capital by the Controlling Shareholder or any of Its RelatedParties for Non-Operating Purposes
□ Applicable ■ Not applicable
XI Communications with the Investment Community such as Researches, Inquiries andInterviews Received during the Reporting Period
| Date | Place | Way of communication | Type of communication party | Communication party | Main discussions and materials provided | Index to main information communicated |
| 11 March 2021 | The Ritz-Carlton Beijing Financial Street | By visit and phone | Institution | JPMorgan, Morgan Stanley, Foresight Fund Management | Inquired about the 2020 performance and development | Log Sheet No. 2021-001 on Investor Relations Activities disclosed by the |
| Company, TruValue Asset Management, China Life Pension Company Limited, Tianhong Asset Management, Dajia Asset Management, Taikang Asset Management, TianAn Life, etc. | planning of TCL Tech. | Company on http://www.cninfo.com.cn dated 15 March 2021 |
Part V Financial StatementsI Financial Statements
1. Consolidated Balance Sheet
Prepared by TCL Technology Group Corporation
Unit: RMB
| Item | 31 March 2021 | 31 December 2020 |
| Current assets: | ||
| Monetary assets | 21,866,755,914.00 | 21,708,904,743.00 |
| Settlement reserve | ||
| Loans to other banks and financial institutions | ||
| Held-for-trading financial assets | 3,802,869,673.00 | 5,300,045,879.00 |
| Derivative financial assets | 219,179,859.00 | 453,578,245.00 |
| Notes receivable | 1,052,967,190.00 | 595,685,338.00 |
| Accounts receivable | 15,672,609,886.00 | 12,557,614,486.00 |
| Receivables financing | 1,608,178,118.00 | 2,176,743,646.00 |
| Prepayments | 1,824,063,319.00 | 1,355,653,454.00 |
| Premiums receivable | ||
| Reinsurance receivables | ||
| Receivable reinsurance contract reserve | ||
| Other receivables | 8,465,195,129.00 | 2,793,640,153.00 |
| Including: Interest receivable | ||
| Dividends receivable | ||
| Financial assets purchased under resale agreements | ||
| Inventories | 8,882,549,680.00 | 8,834,957,692.00 |
| Contract assets | 199,410,288.00 | 183,650,278.00 |
| Assets held for sale | 256,938,591.00 | 360,935,948.00 |
| Current portion of non-current assets | 63,050,115.00 | |
| Other current assets | 8,952,314,761.00 | 9,367,055,433.00 |
| Total current assets | 72,866,082,523.00 | 65,688,465,295.00 |
| Non-current assets: | ||
| Loans and advances to customers | 997,789,579.00 | 981,876,228.00 |
| Debt investments | 119,904,974.00 | 119,349,896.00 |
| Other debt investments | 154,543,851.00 | 152,062,601.00 |
| Long-term receivables | 699,379,064.00 | 778,889,309.00 |
| Long-term equity investments | 24,340,787,935.00 | 24,047,036,004.00 |
| Investments in other equity instruments | 1,267,383,678.00 | 1,333,675,630.00 |
| Other non-current financial assets | 3,014,285,378.00 | 3,055,595,097.00 |
| Investment property | 1,708,552,761.00 | 1,664,201,130.00 |
| Fixed assets | 94,224,678,564.00 | 92,829,901,894.00 |
| Construction in progress | 36,900,616,376.00 | 31,508,310,783.00 |
| Productive living assets | ||
| Oil and gas assets | ||
| Right-of-use assets | 1,836,520,444.00 | |
| Intangible assets | 11,559,900,467.00 | 10,054,045,032.00 |
| Development costs | 1,664,984,199.00 | 2,103,994,558.00 |
| Goodwill | 6,943,264,794.00 | 6,943,264,794.00 |
| Long-term prepaid expense | 2,380,306,309.00 | 2,536,670,015.00 |
| Deferred income tax assets | 1,387,256,553.00 | 1,578,087,991.00 |
| Other non-current assets | 12,627,250,195.00 | 12,532,852,630.00 |
| Total non-current assets | 201,827,405,121.00 | 192,219,813,592.00 |
| Total assets | 274,693,487,644.00 | 257,908,278,887.00 |
| Current liabilities: | ||
| Short-term borrowings | 13,915,672,147.00 | 12,263,713,979.00 |
| Borrowings from the central bank | 668,442,302.00 | 469,834,291.00 |
| Loans from other banks and financial institutions | ||
| Held-for-trading financial liabilities | 1,368,835,184.00 | 527,901,041.00 |
| Derivative financial liabilities | 174,841,937.00 | 384,903,731.00 |
| Notes payable | 6,053,247,077.00 | 4,725,611,752.00 |
| Accounts payable | 20,590,854,151.00 | 16,468,931,544.00 |
| Advances from customers | 62,773,331.00 | 78,597,459.00 |
| Contract liabilities | 2,113,158,334.00 | 2,004,004,181.00 |
| Financial assets sold under | 50,080,208.00 | 50,080,208.00 |
| repurchase agreements | ||
| Customer deposits and deposits from other banks and financial institutions | 3,583,649,744.00 | 2,850,138,744.00 |
| Payables for acting trading of securities | ||
| Payables for underwriting of securities | ||
| Employee benefits payable | 1,769,080,325.00 | 1,856,664,146.00 |
| Taxes and levies payable | 979,478,482.00 | 670,058,792.00 |
| Other payables | 17,390,694,070.00 | 14,869,433,359.00 |
| Including: Interest payable | ||
| Dividends payable | 1,293,099.00 | 1,293,097.00 |
| Fees and commissions payable | ||
| Reinsurance payables | ||
| Liabilities directly associated with assets held for sale | ||
| Current portion of non-current liabilities | 12,468,897,969.00 | 13,429,669,611.00 |
| Other current liabilities | 336,370,951.00 | 366,970,706.00 |
| Total current liabilities | 81,526,076,212.00 | 71,016,513,544.00 |
| Non-current liabilities: | ||
| Insurance contract reserve | ||
| Long-term borrowings | 78,353,685,147.00 | 73,589,403,308.00 |
| Bonds payable | 18,094,160,624.00 | 18,040,772,610.00 |
| Including: Preference shares | ||
| Perpetual bonds | ||
| Lease liabilities | 903,293,868.00 | |
| Long-term payables | 565,351,943.00 | 1,280,299,665.00 |
| Long-term employee benefits payable | 27,669,191.00 | 27,857,583.00 |
| Provisions | ||
| Deferred income | 1,208,873,737.00 | 1,509,867,357.00 |
| Deferred income tax liabilities | 2,364,772,001.00 | 2,386,496,733.00 |
| Other non-current liabilities | ||
| Total non-current liabilities | 101,517,806,511.00 | 96,834,697,256.00 |
| Total liabilities | 183,043,882,723.00 | 167,851,210,800.00 |
| Owners’ equity: | ||
| Share capital | 14,030,788,362.00 | 14,030,788,362.00 |
| Other equity instruments | 230,240,606.00 | 230,240,606.00 |
| Including: Preference shares | ||
| Perpetual bonds | ||
| Capital reserves | 4,201,713,830.00 | 5,442,384,608.00 |
| Less: Treasury stock | 1,799,696,760.00 | 1,913,028,859.00 |
| Other comprehensive income | -297,310,404.00 | -145,573,093.00 |
| Specific reserve | 309,346.00 | 211,932.00 |
| Surplus reserves | 2,452,892,102.00 | 2,452,892,102.00 |
| General reserve | 360,767.00 | 385,534.00 |
| Retained earnings | 16,405,076,153.00 | 14,009,494,262.00 |
| Total equity attributable to owners of the Company as the parent | 35,224,374,002.00 | 34,107,795,454.00 |
| Non-controlling interests | 56,425,230,919.00 | 55,949,272,633.00 |
| Total owners’ equity | 91,649,604,921.00 | 90,057,068,087.00 |
| Total liabilities and owners’ equity | 274,693,487,644.00 | 257,908,278,887.00 |
Legal representative: Li Dongsheng Person-in-charge of financial affairs: Du JuanPerson-in-charge of the financial department: Xi Wenbo
2. Balance Sheet of the Company as the Parent
Unit: RMB
| Item | 31 March 2021 | 31 December 2020 |
| Current assets: | ||
| Monetary assets | 4,673,557,233.00 | 2,208,790,335.00 |
| Held-for-trading financial assets | 494,026,692.00 | 1,221,656,698.00 |
| Derivative financial assets | 2,850,000.00 | |
| Notes receivable | 6,000,000.00 | 6,000,000.00 |
| Accounts receivable | 242,732,754.00 | 175,787,300.00 |
| Receivables financing | ||
| Prepayments | 6,814,091.00 | 97,962,630.00 |
| Other receivables | 25,785,861,592.00 | 25,555,923,615.00 |
| Including: Interest receivable | ||
| Dividends receivable | ||
| Inventories | 889,550.00 | 5,997,388.00 |
| Contract assets | ||
| Assets held for sale | ||
| Current portion of non-current assets | ||
| Other current assets | 2,332,646.00 | 2,332,646.00 |
| Total current assets | 31,215,064,558.00 | 29,274,450,612.00 |
| Non-current assets: | ||
| Debt investments | ||
| Other debt investments | ||
| Long-term receivables | ||
| Long-term equity investments | 65,369,362,149.00 | 65,094,459,376.00 |
| Investments in other equity instruments | 15,000,000.00 | 15,000,000.00 |
| Other non-current financial assets | 1,275,592,020.00 | 1,145,021,734.00 |
| Investment property | 87,699,827.00 | 88,686,986.00 |
| Fixed assets | 46,296,612.00 | 46,011,508.00 |
| Construction in progress | 5,957,827.00 | 11,440,567.00 |
| Productive living assets | ||
| Oil and gas assets | ||
| Right-of-use assets | 469,533,606.00 | |
| Intangible assets | 53,510,468.00 | 42,310,680.00 |
| Development costs | ||
| Goodwill | ||
| Long-term prepaid expense | 32,119,285.00 | 469,424,698.00 |
| Deferred income tax assets | 2,866.00 | 6,709.00 |
| Other non-current assets | ||
| Total non-current assets | 67,355,074,660.00 | 66,912,362,258.00 |
| Total assets | 98,570,139,218.00 | 96,186,812,870.00 |
| Current liabilities: | ||
| Short-term borrowings | 4,583,581,361.00 | 3,670,230,653.00 |
| Held-for-trading financial liabilities | ||
| Derivative financial liabilities | 16,513,000.00 | |
| Notes payable | ||
| Accounts payable | 242,589,681.00 | 129,703,459.00 |
| Advances from customers | 626,347.00 |
| Contract liabilities | 1,871,994.00 | |
| Employee benefits payable | 204,396,873.00 | 220,510,234.00 |
| Taxes and levies payable | 7,914,959.00 | 26,070,786.00 |
| Other payables | 27,194,760,921.00 | 26,377,023,713.00 |
| Including: Interest payable | ||
| Dividends payable | 1,292,429.00 | 1,292,429.00 |
| Liabilities directly associated with assets held for sale | ||
| Current portion of non-current liabilities | 5,216,364,309.00 | 6,141,029,463.00 |
| Other current liabilities | 1,323,541.00 | 315,970.00 |
| Total current liabilities | 37,451,557,992.00 | 36,583,269,272.00 |
| Non-current liabilities: | ||
| Long-term borrowings | 13,353,000,000.00 | 12,087,500,000.00 |
| Bonds payable | 14,130,272,528.00 | 14,092,345,084.00 |
| Including: Preference shares | ||
| Perpetual bonds | ||
| Lease liabilities | 22,890,284.00 | |
| Long-term payables | ||
| Long-term employee benefits payable | 21,801,770.00 | 21,991,372.00 |
| Provisions | ||
| Deferred income | 41,864,052.00 | 42,651,822.00 |
| Deferred income tax liabilities | ||
| Other non-current liabilities | ||
| Total non-current liabilities | 27,569,828,634.00 | 26,244,488,278.00 |
| Total liabilities | 65,021,386,626.00 | 62,827,757,550.00 |
| Owners’ equity: | ||
| Share capital | 14,030,788,362.00 | 14,030,788,362.00 |
| Other equity instruments | 230,240,606.00 | 230,240,606.00 |
| Including: Preference shares | ||
| Perpetual bonds | ||
| Capital reserves | 9,847,091,192.00 | 9,846,835,060.00 |
| Less: Treasury stock | 1,799,696,760.00 | 1,913,028,859.00 |
| Other comprehensive income | 141,998,219.00 | 141,998,219.00 |
| Specific reserve | ||
| Surplus reserves | 2,250,827,663.00 | 2,250,827,663.00 |
| Retained earnings | 8,847,503,310.00 | 8,771,394,269.00 |
| Total owners’ equity | 33,548,752,592.00 | 33,359,055,320.00 |
| Total liabilities and owners’ equity | 98,570,139,218.00 | 96,186,812,870.00 |
3. Consolidated Income Statement
Unit: RMB
| Item | Q1 2021 | Q1 2020 |
| 1. Total revenues | 32,173,945,858.00 | 13,789,536,228.00 |
| Including: Revenue | 32,143,561,563.00 | 13,742,129,162.00 |
| Interest income | 30,384,295.00 | 47,407,066.00 |
| Insurance premium income | ||
| Fee and commission income | ||
| 2. Costs and expenses | 28,868,451,833.00 | 14,493,594,692.00 |
| Including: Cost of sales | 25,383,357,989.00 | 12,743,745,923.00 |
| Interest expense | 4,754,960.00 | 7,195,716.00 |
| Fee and commission expense | ||
| Surrenders | ||
| Net insurance claims paid | ||
| Net amount provided as insurance contract reserve | ||
| Expenditure on policy dividends | ||
| Reinsurance premium expense | ||
| Taxes and levies | 106,853,638.00 | 38,902,775.00 |
| Selling expense | 330,230,062.00 | 159,592,940.00 |
| Administrative expense | 763,004,335.00 | 321,790,541.00 |
| R&D expense | 1,540,240,528.00 | 837,453,524.00 |
| Finance costs | 740,010,321.00 | 384,913,273.00 |
| Including: Interest expense | 966,852,847.00 | 553,121,614.00 |
| Interest income | 103,593,808.00 | 162,367,782.00 |
| Add: Other income | 343,452,869.00 | 620,518,501.00 |
| Return on investment (“-” for loss) | 493,372,758.00 | 694,268,712.00 |
| Including: Share of profit or loss of joint ventures and associates | 149,003,152.00 | 300,625,432.00 |
| Income from the derecognition of financial assets at amortized cost | ||
| Exchange gain (“-” for loss) | -14,384.00 | 182,919.00 |
| Net gain on exposure hedges (“-” for loss) | ||
| Gain on changes in fair value (“-” for loss) | -292,943,771.00 | -205,634,246.00 |
| Credit impairment loss (“-” for loss) | -31,736,912.00 | -7,478,551.00 |
| Asset impairment loss (“-” for loss) | -301,118,508.00 | -232,590,984.00 |
| Asset disposal income (“-” for loss) | 159,503.00 | 6,658.00 |
| 3. Operating profit (“-” for loss) | 3,516,665,580.00 | 165,214,545.00 |
| Add: Non-operating income | 210,942,953.00 | 141,925,394.00 |
| Less: Non-operating expense | 4,694,406.00 | 10,715,126.00 |
| 4. Gross profit (“-” for loss) | 3,722,914,127.00 | 296,424,813.00 |
| Less: Income tax expense | 487,257,128.00 | 25,846,940.00 |
| 5. Net profit (“-” for net loss) | 3,235,656,999.00 | 270,577,873.00 |
| 5.1 By operating continuity | ||
| 5.1.1 Net profit from continuing operations (“-” for net loss) | 3,235,656,999.00 | 270,577,873.00 |
| 5.1.2 Net profit from discontinued operations (“-” for net loss) | ||
| 5.2 By ownership | ||
| 5.2.1 Net profit attributable to owners of the Company as the parent | 2,403,729,935.00 | 408,125,802.00 |
| 5.2.1 Net profit attributable to non-controlling interests | 831,927,064.00 | -137,547,929.00 |
| 6. Other comprehensive income, net of tax | -180,087,886.00 | -201,191,608.00 |
| Attributable to owners of the Company as the parent | -151,737,311.00 | -135,977,236.00 |
| 6.1 Items that will not be reclassified to profit or loss | -65,621,285.00 | -24,540,407.00 |
| 6.1.1 Changes caused by remeasurements on defined benefit schemes | ||
| 6.1.2 Other comprehensive income that will not be reclassified to profit or loss under the equity method | ||
| 6.1.3 Changes in the fair value of investments in other equity instruments | -65,621,285.00 | -24,540,407.00 |
| 6.1.4 Changes in the fair value arising from changes in own credit risk | ||
| 6.1.5 Other | ||
| 6.2 Items that will be reclassified to profit or loss | -86,116,026.00 | -111,436,829.00 |
| 6.2.1 Other comprehensive income that will be reclassified to profit or loss under the equity method | 11,868.00 | 8,800,657.00 |
| 6.2.2 Changes in the fair value of other debt investments | ||
| 6.2.3 Other comprehensive income arising from the reclassification of financial assets | ||
| 6.2.4 Credit impairment allowance for other debt investments | ||
| 6.2.5 Reserve for cash flow hedges | -75,069,636.00 | -31,380,198.00 |
| 6.2.6 Differences arising from the translation of foreign currency-denominated financial statements | -11,058,258.00 | -88,857,288.00 |
| 6.2.7 Other | ||
| Attributable to non-controlling interests | -28,350,575.00 | -65,214,372.00 |
| 7. Total comprehensive income | 3,055,569,113.00 | 69,386,265.00 |
| Attributable to owners of the Company as the parent | 2,251,992,624.00 | 272,148,566.00 |
| Attributable to non-controlling interests | 803,576,489.00 | -202,762,301.00 |
| 8. Earnings per share | ||
| 8.1 Basic earnings per share | 0.1781 | 0.0316 |
| 8.2 Diluted earnings per share | 0.1713 | 0.0302 |
Legal representative: Li Dongsheng Person-in-charge of financial affairs: Du Juan
Person-in-charge of the financial department: Xi Wenbo
4. Income Statement of the Company as the Parent
Unit: RMB
| Item | Q1 2021 | Q1 2020 |
| 1. Revenue | 307,619,705.00 | 277,992,615.00 |
| Less: Cost of sales | 229,164,379.00 | 186,288,369.00 |
| Taxes and levies | 3,547,225.00 | 884,082.00 |
| Selling expense | 4,863,172.00 | 5,539,685.00 |
| Administrative expense | 71,791,383.00 | 44,402,485.00 |
| R&D expense | 32,899,759.00 | 22,086,746.00 |
| Finance costs | 401,851,331.00 | 269,483,384.00 |
| Including: Interest expense | 583,166,671.00 | 403,477,889.00 |
| Interest income | 205,588,588.00 | 134,103,744.00 |
| Add: Other income | 1,756,844.00 | 4,807,000.00 |
| Return on investment (“-” for loss) | 294,992,985.00 | 899,034,332.00 |
| Including: Share of profit or loss of joint ventures and associates | 270,571,871.00 | 265,646,202.00 |
| Income from the derecognition of financial assets at amortized cost (“-” for loss) | ||
| Net gain on exposure hedges (“-” for loss) | ||
| Gain on changes in fair value (“-” for loss) | 9,486,419.00 | 81,456,431.00 |
| Credit impairment loss (“-” for loss) | 15,695.00 | 995.00 |
| Asset impairment loss (“-” for loss) | ||
| Asset disposal income (“-” for loss) | ||
| 2. Operating profit (“-” for loss) | -130,245,601.00 | 734,606,622.00 |
| Add: Non-operating income | 206,621,894.00 | 139,294,872.00 |
| Less: Non-operating expense | 251,617.00 | 7,636.00 |
| 3. Gross profit (“-” for loss) | 76,124,676.00 | 873,893,858.00 |
| Less: Income tax expense | 3,843.00 |
| 4. Net profit (“-” for net loss) | 76,120,833.00 | 873,893,858.00 |
| 4.1 Net profit from continuing operations (“-” for net loss) | 76,120,833.00 | 873,893,858.00 |
| 4.2 Net profit from discontinued operations (“-” for net loss) | ||
| 5. Other comprehensive income, net of tax | ||
| 5.1 Items that will not be reclassified to profit or loss | ||
| 5.1.1 Changes caused by remeasurements on defined benefit schemes | ||
| 5.1.2 Other comprehensive income that will not be reclassified to profit or loss under the equity method | ||
| 5.1.3 Changes in the fair value of investments in other equity instruments | ||
| 5.1.4 Changes in the fair value arising from changes in own credit risk | ||
| 5.1.5 Other | ||
| 5.2 Items that will be reclassified to profit or loss | ||
| 5.2.1 Other comprehensive income that will be reclassified to profit or loss under the equity method | ||
| 5.2.2 Changes in the fair value of other debt investments | ||
| 5.2.3 Other comprehensive income arising from the reclassification of financial assets | ||
| 5.2.4 Credit impairment allowance for other debt investments | ||
| 5.2.5 Reserve for cash flow hedges | ||
| 5.2.6 Differences arising from the translation of foreign currency-denominated financial statements | ||
| 5.2.7 Other | ||
| 6. Total comprehensive income | 76,120,833.00 | 873,893,858.00 |
| 7. Earnings per share | ||
| 7.1 Basic earnings per share |
| 7.2 Diluted earnings per share |
5. Consolidated Cash Flow Statement
Unit: RMB
| Item | Q1 2021 | Q1 2020 |
| 1. Cash flows from operating activities: | ||
| Proceeds from sale of commodities and rendering of services | 27,034,723,608.00 | 14,850,100,323.00 |
| Net increase in customer deposits and deposits from other banks and financial institutions | 733,511,000.00 | -465,489,884.00 |
| Net increase in borrowings from the central bank | 198,608,011.00 | 168,685,969.00 |
| Net increase in loans from other financial institutions | ||
| Premiums received on original insurance contracts | ||
| Net proceeds from reinsurance | ||
| Net increase in deposits and investments of policy holders | ||
| Interest, fees and commissions received | 30,384,295.00 | 47,407,066.00 |
| Net increase in loans from other banks and financial institutions | ||
| Net increase in proceeds from repurchase transactions | ||
| Net proceeds from acting trading of securities | ||
| Tax and levy rebates | 1,394,337,857.00 | 608,001,845.00 |
| Cash generated from other operating activities | 1,171,334,830.00 | 467,981,716.00 |
| Subtotal of cash generated from operating activities | 30,562,899,601.00 | 15,676,687,035.00 |
| Payments for commodities and services | 17,145,704,624.00 | 11,369,283,220.00 |
| Net increase in loans and advances to customers | 1,013,946,603.00 | -1,555,006,243.00 |
| Net increase in deposits in the central bank and other banks and financial institutions | 68,720,062.00 | -202,132,448.00 |
| Payments for claims on original |
| insurance contracts | ||
| Net increase in loans to other banks and financial institutions | ||
| Interest, fees and commissions paid | ||
| Policy dividends paid | ||
| Cash paid to and for employees | 2,018,238,456.00 | 1,589,132,206.00 |
| Taxes and levies paid | 582,590,307.00 | 844,676,500.00 |
| Cash used in other operating activities | 1,730,497,570.00 | 1,331,550,307.00 |
| Subtotal of cash used in operating activities | 22,559,697,622.00 | 13,377,503,542.00 |
| Net cash generated from/used in operating activities | 8,003,201,979.00 | 2,299,183,493.00 |
| 2. Cash flows from investing activities: | ||
| Proceeds from disinvestment | 6,373,430,027.00 | 4,618,844,632.00 |
| Return on investment | 125,899,457.00 | 76,434,103.00 |
| Net proceeds from the disposal of fixed assets, intangible assets and other long-lived assets | 18,531,879.00 | 23,052.00 |
| Net proceeds from the disposal of subsidiaries and other business units | 197,487,161.00 | |
| Cash generated from other investing activities | 6,368,912.00 | |
| Subtotal of cash generated from investing activities | 6,524,230,275.00 | 4,892,788,948.00 |
| Payments for the acquisition of fixed assets, intangible assets and other long-lived assets | 7,543,249,643.00 | 4,982,864,051.00 |
| Payments for investments | 9,287,433,997.00 | 9,033,187,658.00 |
| Net increase in pledged loans granted | ||
| Net payments for the acquisition of subsidiaries and other business units | ||
| Cash used in other investing activities | 50,133,413.00 | |
| Subtotal of cash used in investing activities | 16,880,817,053.00 | 14,016,051,709.00 |
| Net cash generated from/used in investing activities | -10,356,586,778.00 | -9,123,262,761.00 |
| 3. Cash flows from financing activities: | ||
| Capital contributions received | 94,900,000.00 | 2,260,200,000.00 |
| Including: Capital contributions by non-controlling interests to subsidiaries | 94,900,000.00 | 2,260,200,000.00 |
| Borrowings received | 16,219,912,408.00 | 13,646,741,209.00 |
| Cash generated from other financing activities | 151,949,228.00 | |
| Subtotal of cash generated from financing activities | 16,466,761,636.00 | 15,906,941,209.00 |
| Repayment of borrowings | 10,706,121,604.00 | 7,266,785,974.00 |
| Interest and dividends paid | 1,209,556,374.00 | 640,411,211.00 |
| Including: Dividends paid by subsidiaries to non-controlling interests | 23,055,560.00 | 26,392,667.00 |
| Cash used in other financing activities | 1,893,223,044.00 | 329,280,153.00 |
| Subtotal of cash used in financing activities | 13,808,901,022.00 | 8,236,477,338.00 |
| Net cash generated from/used in financing activities | 2,657,860,614.00 | 7,670,463,871.00 |
| 4. Effect of foreign exchange rates changes on cash and cash equivalents | 57,381,895.00 | -26,758,509.00 |
| 5. Net increase in cash and cash equivalents | 361,857,710.00 | 819,626,094.00 |
| Add: Cash and cash equivalents, beginning of the period | 18,208,416,780.00 | 17,637,742,929.00 |
| 6. Cash and cash equivalents, end of the period | 18,570,274,490.00 | 18,457,369,023.00 |
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
| Item | Q1 2021 | Q1 2020 |
| 1. Cash flows from operating activities: | ||
| Proceeds from sale of commodities and rendering of services | 332,453,923.00 | 189,757,308.00 |
| Tax and levy rebates | ||
| Cash generated from other operating activities | 1,412,864,320.00 | 8,341,488,901.00 |
| Subtotal of cash generated from operating activities | 1,745,318,243.00 | 8,531,246,209.00 |
| Payments for commodities and services | 229,201,172.00 | 185,587,256.00 |
| Cash paid to and for employees | 52,067,664.00 | 56,588,057.00 |
| Taxes and levies paid | 30,416,907.00 | 8,220,063.00 |
| Cash used in other operating activities | 458,037,058.00 | 316,261,198.00 |
| Subtotal of cash used in operating activities | 769,722,801.00 | 566,656,574.00 |
| Net cash generated from/used in operating activities | 975,595,442.00 | 7,964,589,635.00 |
| 2. Cash flows from investing activities: | ||
| Proceeds from disinvestment | 1,937,957,138.00 | 1,365,307,500.00 |
| Return on investment | 45,986,638.00 | 11,669,831.00 |
| Net proceeds from the disposal of fixed assets, intangible assets and other long-lived assets | ||
| Net proceeds from the disposal of subsidiaries and other business units | ||
| Cash generated from other investing activities | ||
| Subtotal of cash generated from investing activities | 1,983,943,776.00 | 1,376,977,331.00 |
| Payments for the acquisition of fixed assets, intangible assets and other long-lived assets | 12,604,273.00 | 5,391,188.00 |
| Payments for investments | 1,376,585,400.00 | 1,969,900,000.00 |
| Net payments for the acquisition of subsidiaries and other business units | ||
| Cash used in other investing activities | ||
| Subtotal of cash used in investing activities | 1,389,189,673.00 | 1,975,291,188.00 |
| Net cash generated from/used in investing activities | 594,754,103.00 | -598,313,857.00 |
| 3. Cash flows from financing activities: | ||
| Capital contributions received | ||
| Borrowings received | 6,549,800,000.00 | 8,612,000,000.00 |
| Cash generated from other financing activities | ||
| Subtotal of cash generated from financing activities | 6,549,800,000.00 | 8,612,000,000.00 |
| Repayment of borrowings | 5,326,842,000.00 | 4,272,903,033.00 |
| Interest and dividends paid | 317,432,328.00 | 168,428,437.00 |
| Cash used in other financing | 13,813,143.00 | 1,332,082.00 |
| activities | ||
| Subtotal of cash used in financing activities | 5,658,087,471.00 | 4,442,663,552.00 |
| Net cash generated from/used in financing activities | 891,712,529.00 | 4,169,336,448.00 |
| 4. Effect of foreign exchange rates changes on cash and cash equivalents | -18,184,949.00 | -3,131,768.00 |
| 5. Net increase in cash and cash equivalents | 2,443,877,125.00 | 11,532,480,458.00 |
| Add: Cash and cash equivalents, beginning of the period | 2,196,283,414.00 | 3,941,090,221.00 |
| 6. Cash and cash equivalents, end of the period | 4,640,160,539.00 | 15,473,570,679.00 |
II Adjustments to the Financial Statements
1. Adjustments to the Financial Statements at the Beginning of the First Execution Year (2021) of the NewAccounting Standard Governing LeasesThe Company is required to fill the table below if it first adopted the new accounting standard governing leases in 2021, unless thereis no need to adjust the financial statements at the beginning of the year.
√ Applicable □ Not applicable
Indicate whether the financial statements at the beginning of the year were adjusted.
√ Yes □ No
Consolidated balance sheet:
Unit: RMB
| Item | 31 December 2020 | 1 January 2021 | Adjustment |
| Current assets: | |||
| Monetary assets | 21,708,904,743.00 | 21,708,904,743.00 | |
| Settlement reserve | |||
| Loans to other banks and financial institutions | |||
| Held-for-trading financial assets | 5,300,045,879.00 | 5,300,045,879.00 | |
| Derivative financial assets | 453,578,245.00 | 453,578,245.00 | |
| Notes receivable | 595,685,338.00 | 595,685,338.00 | |
| Accounts receivable | 12,557,614,486.00 | 12,557,614,486.00 | |
| Receivables financing | 2,176,743,646.00 | 2,176,743,646.00 | |
| Prepayments | 1,355,653,454.00 | 1,355,653,454.00 |
| Premiums receivable | |||
| Reinsurance receivables | |||
| Receivable reinsurance contract reserve | |||
| Other receivables | 2,793,640,153.00 | 2,793,640,153.00 | |
| Including: Interest receivable | |||
| Dividends receivable | |||
| Financial assets purchased under resale agreements | |||
| Inventories | 8,834,957,692.00 | 8,834,957,692.00 | |
| Contract assets | 183,650,278.00 | 183,650,278.00 | |
| Assets held for sale | 360,935,948.00 | 360,935,948.00 | |
| Current portion of non-current assets | |||
| Other current assets | 9,367,055,433.00 | 9,367,055,433.00 | |
| Total current assets | 65,688,465,295.00 | 65,688,465,295.00 | |
| Non-current assets: | |||
| Loans and advances to customers | 981,876,228.00 | 981,876,228.00 | |
| Debt investments | 119,349,896.00 | 119,349,896.00 | |
| Other debt investments | 152,062,601.00 | 152,062,601.00 | |
| Long-term receivables | 778,889,309.00 | 778,889,309.00 | |
| Long-term equity investments | 24,047,036,004.00 | 24,047,036,004.00 | |
| Investments in other equity instruments | 1,333,675,630.00 | 1,333,675,630.00 | |
| Other non-current financial assets | 3,055,595,097.00 | 3,055,595,097.00 | |
| Investment property | 1,664,201,130.00 | 1,664,201,130.00 | |
| Fixed assets | 92,829,901,894.00 | 91,515,595,994.00 | -1,314,305,900.00 |
| Construction in progress | 31,508,310,783.00 | 31,508,310,783.00 | |
| Productive living assets | |||
| Oil and gas assets | |||
| Right-of-use assets | 1,856,862,180.00 | 1,856,862,180.00 |
| Intangible assets | 10,054,045,032.00 | 10,054,045,032.00 | |
| Development costs | 2,103,994,558.00 | 2,103,994,558.00 | |
| Goodwill | 6,943,264,794.00 | 6,943,264,794.00 | |
| Long-term prepaid expense | 2,536,670,015.00 | 2,099,368,428.00 | -437,301,587.00 |
| Deferred income tax assets | 1,578,087,991.00 | 1,578,087,991.00 | |
| Other non-current assets | 12,532,852,630.00 | 12,532,852,630.00 | |
| Total non-current assets | 192,219,813,592.00 | 192,325,068,285.00 | 105,254,693.00 |
| Total assets | 257,908,278,887.00 | 258,013,533,580.00 | 105,254,693.00 |
| Current liabilities: | |||
| Short-term borrowings | 12,263,713,979.00 | 12,263,713,979.00 | |
| Borrowings from the central bank | 469,834,291.00 | 469,834,291.00 | |
| Loans from other banks and financial institutions | |||
| Held-for-trading financial liabilities | 527,901,041.00 | 527,901,041.00 | |
| Derivative financial liabilities | 384,903,731.00 | 384,903,731.00 | |
| Notes payable | 4,725,611,752.00 | 4,725,611,752.00 | |
| Accounts payable | 16,468,931,544.00 | 16,468,931,544.00 | |
| Advances from customers | 78,597,459.00 | 78,597,459.00 | |
| Contract liabilities | 2,004,004,181.00 | 2,004,004,181.00 | |
| Financial assets sold under repurchase agreements | 50,080,208.00 | 50,080,208.00 | |
| Customer deposits and deposits from other banks and financial institutions | 2,850,138,744.00 | 2,850,138,744.00 | |
| Payables for acting trading of securities | |||
| Payables for underwriting of securities | |||
| Employee benefits payable | 1,856,664,146.00 | 1,856,664,146.00 | |
| Taxes and levies payable | 670,058,792.00 | 670,058,792.00 | |
| Other payables | 14,869,433,359.00 | 14,869,433,359.00 | |
| Including: Interest payable |
| Dividends payable | 1,293,097.00 | 1,293,097.00 | |
| Fees and commissions payable | |||
| Reinsurance payables | |||
| Liabilities directly associated with assets held for sale | |||
| Current portion of non-current liabilities | 13,429,669,611.00 | 13,449,071,421.00 | 19,401,810.00 |
| Other current liabilities | 366,970,706.00 | 366,970,706.00 | |
| Total current liabilities | 71,016,513,544.00 | 71,035,915,354.00 | 19,401,810.00 |
| Non-current liabilities: | |||
| Insurance contract reserve | |||
| Long-term borrowings | 73,589,403,308.00 | 73,589,403,308.00 | |
| Bonds payable | 18,040,772,610.00 | 18,040,772,610.00 | |
| Including: Preference shares | |||
| Perpetual bonds | |||
| Lease liabilities | 912,550,980.00 | 912,550,980.00 | |
| Long-term payables | 1,280,299,665.00 | 453,601,568.00 | -826,698,097.00 |
| Long-term employee benefits payable | 27,857,583.00 | 27,857,583.00 | |
| Provisions | |||
| Deferred income | 1,509,867,357.00 | 1,509,867,357.00 | |
| Deferred income tax liabilities | 2,386,496,733.00 | 2,386,496,733.00 | |
| Other non-current liabilities | |||
| Total non-current liabilities | 96,834,697,256.00 | 96,920,550,139.00 | 85,852,883.00 |
| Total liabilities | 167,851,210,800.00 | 167,956,465,493.00 | 105,254,693.00 |
| Owners’ equity: | |||
| Share capital | 14,030,788,362.00 | 14,030,788,362.00 | |
| Other equity instruments | 230,240,606.00 | 230,240,606.00 | |
| Including: Preference shares |
| Perpetual bonds | |||
| Capital reserves | 5,442,384,608.00 | 5,442,384,608.00 | |
| Less: Treasury stock | 1,913,028,859.00 | 1,913,028,859.00 | |
| Other comprehensive income | -145,573,093.00 | -145,573,093.00 | |
| Specific reserve | 211,932.00 | 211,932.00 | |
| Surplus reserves | 2,452,892,102.00 | 2,452,892,102.00 | |
| General reserve | 385,534.00 | 385,534.00 | |
| Retained earnings | 14,009,494,262.00 | 14,009,494,262.00 | |
| Total equity attributable to owners of the Company as the parent | 34,107,795,454.00 | 34,107,795,454.00 | |
| Non-controlling interests | 55,949,272,633.00 | 55,949,272,633.00 | |
| Total owners’ equity | 90,057,068,087.00 | 90,057,068,087.00 | |
| Total liabilities and owners’ equity | 257,908,278,887.00 | 258,013,533,580.00 | 105,254,693.00 |
Balance sheet of the Company as the parent:
Unit: RMB
| Item | 31 December 2020 | 1 January 2021 | Adjustment |
| Current assets: | |||
| Monetary assets | 2,208,790,335.00 | 2,208,790,335.00 | |
| Held-for-trading financial assets | 1,221,656,698.00 | 1,221,656,698.00 | |
| Derivative financial assets | |||
| Notes receivable | 6,000,000.00 | 6,000,000.00 | |
| Accounts receivable | 175,787,300.00 | 175,787,300.00 | |
| Receivables financing | |||
| Prepayments | 97,962,630.00 | 97,962,630.00 | |
| Other receivables | 25,555,923,615.00 | 25,555,923,615.00 | |
| Including: Interest receivable | |||
| Dividends receivable | |||
| Inventories | 5,997,388.00 | 5,997,388.00 |
| Contract assets | |||
| Assets held for sale | |||
| Current portion of non-current assets | |||
| Other current assets | 2,332,646.00 | 2,332,646.00 | |
| Total current assets | 29,274,450,612.00 | 29,274,450,612.00 | |
| Non-current assets: | |||
| Debt investments | |||
| Other debt investments | |||
| Long-term receivables | |||
| Long-term equity investments | 65,094,459,376.00 | 65,094,459,376.00 | |
| Investments in other equity instruments | 15,000,000.00 | 15,000,000.00 | |
| Other non-current financial assets | 1,145,021,734.00 | 1,145,021,734.00 | |
| Investment property | 88,686,986.00 | 88,686,986.00 | |
| Fixed assets | 46,011,508.00 | 46,011,508.00 | |
| Construction in progress | 11,440,567.00 | 11,440,567.00 | |
| Productive living assets | |||
| Oil and gas assets | |||
| Right-of-use assets | 467,914,882.00 | 467,914,882.00 | |
| Intangible assets | 42,310,680.00 | 42,310,680.00 | |
| Development costs | |||
| Goodwill | |||
| Long-term prepaid expense | 469,424,698.00 | 32,123,111.00 | -437,301,587.00 |
| Deferred income tax assets | 6,709.00 | 6,709.00 | |
| Other non-current assets | |||
| Total non-current assets | 66,912,362,258.00 | 66,942,975,553.00 | 30,613,295.00 |
| Total assets | 96,186,812,870.00 | 96,217,426,165.00 | 30,613,295.00 |
| Current liabilities: | |||
| Short-term borrowings | 3,670,230,653.00 | 3,670,230,653.00 | |
| Held-for-trading financial liabilities | |||
| Derivative financial | 16,513,000.00 | 16,513,000.00 |
| liabilities | |||
| Notes payable | |||
| Accounts payable | 129,703,459.00 | 129,703,459.00 | |
| Advances from customers | |||
| Contract liabilities | 1,871,994.00 | 1,871,994.00 | |
| Employee benefits payable | 220,510,234.00 | 220,510,234.00 | |
| Taxes and levies payable | 26,070,786.00 | 26,070,786.00 | |
| Other payables | 26,377,023,713.00 | 26,377,023,713.00 | |
| Including: Interest payable | |||
| Dividends payable | 1,292,429.00 | 1,292,429.00 | |
| Liabilities directly associated with assets held for sale | |||
| Current portion of non-current liabilities | 6,141,029,463.00 | 6,150,305,562.00 | 9,276,099.00 |
| Other current liabilities | 315,970.00 | 315,970.00 | |
| Total current liabilities | 36,583,269,272.00 | 36,592,545,371.00 | 9,276,099.00 |
| Non-current liabilities: | |||
| Long-term borrowings | 12,087,500,000.00 | 12,087,500,000.00 | |
| Bonds payable | 14,092,345,084.00 | 14,092,345,084.00 | |
| Including: Preference shares | |||
| Perpetual bonds | |||
| Lease liabilities | 21,337,196.00 | 21,337,196.00 | |
| Long-term payables | |||
| Long-term employee benefits payable | 21,991,372.00 | 21,991,372.00 | |
| Provisions | |||
| Deferred income | 42,651,822.00 | 42,651,822.00 | |
| Deferred income tax liabilities | |||
| Other non-current liabilities | |||
| Total non-current liabilities | 26,244,488,278.00 | 26,265,825,474.00 | 21,337,196.00 |
| Total liabilities | 62,827,757,550.00 | 62,858,370,845.00 | 30,613,295.00 |
| Owners’ equity: | |||
| Share capital | 14,030,788,362.00 | 14,030,788,362.00 | |
| Other equity instruments | 230,240,606.00 | 230,240,606.00 | |
| Including: Preference shares | |||
| Perpetual bonds | |||
| Capital reserves | 9,846,835,060.00 | 9,846,835,060.00 | |
| Less: Treasury stock | 1,913,028,859.00 | 1,913,028,859.00 | |
| Other comprehensive income | 141,998,219.00 | 141,998,219.00 | |
| Specific reserve | |||
| Surplus reserves | 2,250,827,663.00 | 2,250,827,663.00 | |
| Retained earnings | 8,771,394,269.00 | 8,771,394,269.00 | |
| Total owners’ equity | 33,359,055,320.00 | 33,359,055,320.00 | |
| Total liabilities and owners’ equity | 96,186,812,870.00 | 96,217,426,165.00 | 30,613,295.00 |
Notes to the adjustments:
The Company has adopted since 1 January 2021 the Accounting Standard No. 21 for Business Enterprises-Leases revised by theMinistry of Finance in 2018.The Company adopted a simplified method of retrospective restatement. As required by the new lease standard, relevant financialstatement items at the beginning of the period when the new lease standard was first adopted (1 January 2021) were adjustedaccording to the cumulative effects arising from the first adoption of the new lease standard, and data of the comparable periods werenot adjusted.The effects of the adoption of the new lease standard on the presentation of the balance sheet items as at the beginning of the currentperiod are as follows:
| Item | 31 December 2020 | Adjustment | 1 January 2021 |
| Fixed assets | 92,829,901,894 | -1,314,305,900 | 91,515,595,994 |
| Right-of-use assets | 1,856,862,180 | 1,856,862,180 | |
| Long-term prepaid expense | 2,536,670,015 | -437,301,587 | 2,099,368,428 |
| Current portion of non-current liabilities | 13,429,669,611 | 19,401,810 | 13,449,071,421 |
| Lease liabilities | 912,550,980 | 912,550,980 |
| Long-term payables | 1,280,299,665 | -826,698,097 | 453,601,568 |
2. Retrospective Adjustments to the Comparative Data of Prior Periods due to the First Execution in 2021of the New Accounting Standard Governing Leases
□ Applicable √ Not applicable
III Independent Auditor’s ReportIndicate whether the financial statements above have been audited by an independent auditor.
□Yes √ No
These financial statements have not been audited by such an auditor.