Stock Code: 688007 Stock Short Name: Appotronics
Appotronics Corporation Limited
2021 Semiannual Report
本报告为深圳光峰科技股份有限公司自愿披露的《2021年半年度报告(英文版)》,对本报告的中英文版本理解上发生歧义时,以中文版本为准。
2021 Semiannual Report is voluntarily disclosed by Appotronics CorporationLimited, and if the meaning of the translated version is different than the Chineseversion, the Chinese version will control.
Important NoteI. The Board of Directors, the Board of Supervisors, directors, supervisors and senior officers ofthe Company hereby warrant that the information contained in this Semiannual Report is true,accurate and complete and this Semiannual Report is free from any misrepresentation,misleading statement or material omission, and agree to assume joint and several liability forthis Semiannual Report.II. Alert of significant risksThe Company has described in detail the risks that may exist in the production and operation of theCompany in this Report. Refer to “Section III Discussion and Analysis of the Management – V. Riskfactors” for the relevant risks. We draw the attention of investors to such risks in making investments.III. All directors of the Company attended the meeting of the Board of Directors.IV. This Semiannual Report has not been audited.V. BO Lianming, Principal of the Company, WANG Yingxia, Chief Accountant and LIU Jie,
Person in Charge of the Accounting Body (Accounting Officer) hereby represent that: thefinancial statements contained in this Semiannual Report are true, accurate and complete.VI. Profit distribution proposal or proposal for capitalization of capital reserve approved by theresolutions of the Board of Directors during the reporting periodNoneVII. Is there any material event concerning any special arrangement of corporate governance?
□ Applicable√ N/A
VIII. Risk statement regarding forward-looking statements
√ Applicable□ N/A
The forward-looking statements contained herein regarding the future plans, development strategiesor other matters of the Company do not constitute any substantive covenant made by the Company to theinvestors. The investors should be aware of the risk of investment.IX. Is there any non-operational occupation of funds by the controlling shareholder or its affiliates?NoX. Is there any external guarantee provided in contravention of the stipulated decision-making
procedure?NoXI. Are the majority of the directors unable to guarantee the truthfulness, accuracy and
completeness of the Semiannual Report disclosed by the Company?NoXII. Others
□ Applicable√ N/A
Table of Contents
Section I Definitions ...... 4
Section II Company Profile and Financial Highlights ...... 5
Section III Discussion and Analysis of the Management ...... 9
Section IV Corporate Governance ...... 33
Section V Environment and Social Responsibilities ...... 37
Section VI Significant Matters ...... 40
Section VII Changes in Shares and Shareholders ...... 644
Section VIII Preferred Shares ...... 699
Section IX Bonds ...... 699
Section X Financial Report ...... 699
List of Documents Available for Inspection | Financial Statements with seals and signatures of Principal of the Company, Chief Accountant and Person in charge of the Accounting Body (Chief Officer) |
All original documents and announcements of the Company publicly disclosed in the websites designated by the Company as of the reporting period |
Section I Definitions
For purpose of this report, unless the context otherwise requires, the following terms shall have themeanings indicated below:
Terms | ||
Company or Appotronics | means | Appotronics Corporation Limited |
Appotronics Ltd. | means | Appotronics Corporation Ltd., the former name of the Company |
CINEAPPO | means | CINEAPPO Laser Cinema Technology (Beijing) Co., Ltd. |
Fengmi | means | collectively, Chongqing Fengmi and its subsidiary Beijing Fengmi |
Beijing Fengmi | means | Fengmi (Beijing) Technology Co., Ltd. |
Chongqing Fengmi | means | Fengmi (Chongqing) Innovative Technology Co., Ltd. |
Appotronics HK | means | Appotronics Hong Kong Limited |
Appotronics Daye | means | Shenzhen Appotronics Daye Investment Partnership (LP) |
Appotronics Deye | means | Shenzhen Appotronics Deye Consulting Partnership (LP) |
Appotronics Hongye | means | Shenzhen Appotronics Hongye Investment Partnership (LP) |
Blackpine | means | Blackpine Investment Corp. Ltd. |
Jinleijing | means | Shenzhen Jinleijing Investment Limited Partnership (LP) |
Appotronics Chengye | means | Shenzhen Appotronics Chengye Consulting Partnership (LP) |
Dangbei | means | Hangzhou Dangbei Network Technology Co., Ltd. |
Delta Electronics or Delta | means | Delta Electronics, Inc. |
CINIONIC | means | Cinionic Limited (previously known as Barco Cineappo Limited) |
GDC BVI | means | GDC Technology Limited (British Virgin Islands) |
GDC Cayman | means | GDC Technology Limited (Cayman Islands) |
FDP | means | Feng Dynamic Page, dynamic page architecture developed independently by Appotronics |
DCI | means | Digital Cinema Initiatives of the United States |
AR | means | Augmented Reality |
DLP | means | Digital Light Processing |
PCT | means | Patent Cooperation Treaty |
Section II Company Profile and Financial HighlightsI. Company profile
Chinese name | 深圳光峰科技股份有限公司 |
Short name in Chinese | 光峰科技 |
English name | Appotronics Corporation Limited |
Short name in English | Appotronics |
Legal representative | BO Lianming |
Registered address | 20-22/F, Hi-tech Zone Union Tower, No. 63 Xuefu Road, Yuehai Street, Nanshan District, Shenzhen |
Historic changes of registered address of the Company | 1. On October 24, 2006: Room 10, F/14, Fangda Building, Keji South 12 Road, South Area, High-tech Zone, Nanshan District, Shenzhen 2. On September 6, 2007: No. 03, 17/F, Overseas Students Venture Building, South Area, Nanshan District, Shenzhen 3. On June 7, 2011: Area A, 1/F, Xili Wenguang Industrial Zone, Nanshan District, Shenzhen 4. On October 24, 2012: Room 401, Shenzhen Integrated Circuit Design and Application Industrial Park, South Side of Chaguang Road, Xili Town, Nanshan District, Shenzhen 5. On December 14, 2017: 21-22/F, Hi-tech Zone Union Tower, No. 63 Xuefu Road, Yuehai Street, Nanshan District, Shenzhen 6. On August 1, 2018: 20-22/F, Hi-tech Zone Union Tower, No. 63 Xuefu Road, Yuehai Street, Nanshan District, Shenzhen |
Office address | 20-22/F, Hi-tech Zone Union Tower, No. 63 Xuefu Road, Yuehai Street, Nanshan District, Shenzhen |
Postal code of office address | 518052 |
Website | http://www.appotronics.com |
ir@appotronics.cn | |
Reference to changes during the reporting period | N/A |
Board Secretary (Domestic representative for information disclosure) | Securities affairs representative | |
Name | YAN Li | CHEN Yasha |
Address | 20-22/F, Hi-tech Zone Union Tower, No. 63 Xuefu Road, Yuehai Street, Nanshan District, Shenzhen | 20-22/F, Hi-tech Zone Union Tower, No. 63 Xuefu Road, Yuehai Street, Nanshan District, Shenzhen |
Telephone | 0755-32950536 | 0755-32950536 |
Facsimile | 0755-86186299 | 0755-86186299 |
ir@appotronics.cn | ir@appotronics.cn |
Designated newspaper for information disclosure | China Securities Journal, Shanghai Securities News, Securities Times, Securities Daily |
Websites for publishing the semiannual reports | www.sse.com.cn |
Place for keeping the semiannual reports | Office of the Board of Directors |
Reference to changes during the reporting period | N/A |
IV. Stock and depository receipts of the Company(I) Stock of the Company
√ Applicable□ N/A
Stock of the Company | ||||
Type of stock | Stock exchange and board | Stock short name | Stock code | Former stock short name |
A-shares | Shanghai Stock Exchange, STAR Market | Appotronics | 688007 | N/A |
Main accounting data | During the reporting period (Jan. - Jun.) | Prior period | Change over the prior period (%) |
Operating income | 1,104,689,243.59 | 716,025,207.34 | 54.28 |
Net profit attributable to shareholders of the listed company | 151,413,920.79 | 14,327,442.96 | 956.81 |
Net profit attributable to shareholders of the listed company after deduction of non-recurring profit or loss | 66,961,936.08 | -30,232,495.13 | N/A |
Net cash flow from operating activities | 170,659,313.90 | 63,006,061.80 | 170.86 |
At the end of the reporting period | At the end of the prior year | Changes at the end of the reporting period from the end of the prior year (%) | |
Net assets attributable to shareholders of the listed company | 2,324,476,282.79 | 2,091,599,671.75 | 11.13 |
Total assets | 3,651,135,378.47 | 3,226,204,326.69 | 13.17 |
Financial highlights | During the reporting period (Jan. - Jun.) | Prior period | Change over the prior period (%) |
Basic earnings per share (RMB/share) | 0.33 | 0.03 | 1,000.00 |
Diluted earnings per share (RMB/share) | 0.33 | 0.03 | 1,000.00 |
Basic earnings per share after deduction of non-recurring profit or loss (RMB/share) | 0.15 | -0.07 | N/A |
Weighted average return on net assets (%) | 6.89 | 0.72 | +6.17 percentage points |
Weighted average return on net assets after deduction of non-recurring profit or loss (%) | 3.05 | -1.52 | +4.57 percentage points |
Proportion of R&D investments to | 8.61 | 12.19 | -3.58 percentage |
operating income (%) | points |
Item of non-recurring profit or loss | Amount | Note (if applicable) |
Gain or loss on disposal of non-current assets | 2,048,154.10 | |
Government grants recognized in profit or loss for the current period (excluding government grants that are closely related to the business of the Company and are provided in fixed amount or quantity continuously according to the applicable polices and standards of the country) | 71,808,211.32 | VII. 84 of Section X |
Profit or loss on entrusted investments or assets management | 2,145,923.39 | |
Net profit or loss of subsidiaries from the beginning of the period up to the business combination date recognized as a result of business combination of enterprises involving enterprises under common control | 11,386,216.47 | |
Profit or loss on changes in the fair value of | 38,175,900.00 | VII. 70 of Section X |
held-for-trading financial assets, derivative financial assets, held-for-trading financial liabilities and derivative financial liabilities and investment income on disposal of held-for-trading financial assets, derivative financial assets, held-for-trading financial liabilities, derivative financial liabilities and other debt investments, other than those used in the effective hedging activities relating to normal operating business | ||
Other non-operating income and expenses | 501,309.74 | |
Other gains or losses meeting the definition of non-recurring profit or loss | 571,819.78 | |
Effect of minority interests | -24,952,896.18 | |
Effect of income taxes | -17,232,653.91 | |
Total | 84,451,984.71 |
Section III Discussion and Analysis of the Management
I. Industry and main business during the reporting period
1. Main business
As a leading laser display technology enterprise in the world, the Company mainly engages in theresearch, development, production and sales of laser display core devices and complete equipment andapplication of laser display technology to different scenarios based on ALPD? laser display technologyand architecture, and provides laser cinema projection services.Since its innovative invention of the ALPD? technology in 2007, the Company has created new laserdisplay architecture, built core intellectual properties, and mastered the designing and manufacturing ofcore devices. It has upgraded the ALPD? technology continuously, and relying on the advanced ALPD?technology, promoted the industrial applications of laser display, and gradually extended the applicationof laser display from laser cinema projection and other high-end applications to large venue, businesseducation, household market and other display applications.
Figure 1: ALPD? laser display technology and its application and development
2. Main products and services
The Company engages in sales of products and provision of laser cinema projection services, etc. Its
ALPD? laser display technology furthers the growth of display applicationsLaser cinema projection device20000+ units installed around the world
Laser cinema projection device20000+ units installed around the worldC5 passed the DCI certification, making Chinathe fourth country in the world capable ofdeveloping and manufacturing digital cinemaprojectors that comply with DCI specifications
C5 passed the DCI certification, making Chinathe fourth country in the world capable ofdeveloping and manufacturing digital cinemaprojectors that comply with DCI specificationsLaser venue projector60000 lumens disruptive product
Laser venue projector60000 lumens disruptive product60000lmThe brightness of completeequipment suppresses the industry
60000lmThe brightness of completeequipment suppresses the industry
Laser TV2020 IFdesignaward
Laser TV2020 IFdesignaward
Outdoor venue solutions
Appearing on CCTV Spring Festival Gala,and lighting up the night of the ForbiddenCity on Chinese Lantern Festival
Outdoor venue solutions
Appearing on CCTV Spring Festival Gala,and lighting up the night of the ForbiddenCity on Chinese Lantern FestivalLaser education projector
Laser education projectorLaser smart mini projector
diversified products may be classified into core laser display devices and complete laser display equipment.Wherein the core devices can be further classified into laser light source (cinema light source and largevenue light source), laser TV light generator, laser mini projection light generator and flexible laser displayscreen, and complete laser display equipment can be further classified into laser cinema projector, largevenue laser projector, laser video wall, laser education projector, laser TV and smart mini projector.
2.1 Products of core devices
The Company’s core devices, including the laser light source, light generator and flexible screen,reflect various advantages and characteristics of ALPD? technology, such as high brightness, wide colorgamut, high contrast and low cost. The quality and performance of such products have receivedrecognition of downstream customers, which helps the Company establish its position as a core supplieron the industry chain of laser display.
Figure 2: Laser light source and laser light generator
2.2 Products of complete equipment
On the basis of laser light source and light generators, the Company has further developed completeequipment, which has been widely used in household and other commercial applications.
2.2.1 Products for the household market
In recent years, laser TV, smart mini projector and other household projector products have beendeveloping rapidly, due to the ever increasing acceptance of the new mode of movie watching by theconsumers, and rapid decrease of the costs and prices and better performance of products. The Company’shousehold products have a leading market share, and the household business has grown rapidly.
Figure 3: Cinema 2, the New Product of Fengmi Laser TV
2.2.2 Products for the commercial market
- In the field of cinema projection, the Company has created a product portfolio of laser cinema lightsources covering multiple ranges of lumens from 5,000 lumens to 55,000 lumens, which are compatiblewith many projection equipment brands on the market for wide application in large-, medium- and small-sized cinemas. Thanks to the low operating power, the laser cinema light source reduces electricityconsumption by 50% compared with the xenon lamp; moreover, since no bulb replacement is required, ithelps cinemas to minimize their operating costs. As of the date when this Report is released, the Companyhas over 23,000 laser cinema light sources installed throughout China.- In the field of large venue display market, Appotronics’s large venue projector series covers therange of 5,000-60,000 lumens, hence suitable for outdoor lighting, cultural and tourism lighting, themeexhibition halls, corporate exhibition rooms, theater performance, 4D dining hall, conference control, railtransit, and other scenarios, and has such advantages as no damage to the landscape, convenient installationand disassembly, and the repeated use in different places.
- In the field of business education, the Company’s laser business education projector series coversultra short, short and long throws and a range of 3,300-6,000 lumens, hence broadly suitable for education,business display and other scenarios. The Company has developed a series of solutions for smartclassrooms and business display, including laser smart all-in-one teaching device, laser synchronousclassroom solution, laser interconnected dual-board solution, high-definition high-brightness conferencesystem, etc.
2.3 Laser cinema projection services
CINEAPPO, a controlled subsidiary of the Company, provides laser cinema projection services todownstream cinema customers (“laser as a service”), and charges service fees according to the length ofuse of light source by the cinemas (the fees are charged by the hour or a certain period of time), while thecinemas do not need to purchase light source equipment, thereby effectively easing their capital pressureand reducing their labor and maintenance costs.
3. Industry in which the Company operates
3.1 Development stage, basic characteristics and main technical barriers of the industry
The laser display is emerging and in the early stage of rapid growth; the application of laser displaytechnology in household products is a wholly new creation with huge market potential.
Currently, picture display technologies are mostly implemented by using DLP, 3LCD, and LCOSdisplay chips as the picture modulator, achieving greatly different actual display effects depending on thelight source. In 2007, the ALPD? technology created by Appotronics’s R&D team made a breakthroughin the application of core devices and imaging solutions of laser display, hence becoming the mainstreamtechnical route for the laser projector industry and widely used in movie, TV, business education, and largevenue fields.
In terms of core technologies, certain companies in the industry may face the problems of lack ofR&D capability and core technology, and reliance on supply chain for core patents and core devices,
rendering them unable to compete with leading domestic or international companies that have theirproprietary IP or core technologies and core devices.
In terms of specific applications, the technical barriers for To C market are high efficiency, small sizeand low cost, and the technical barriers for To B market are continuous upgrading of performance.
3.2 Analysis of the position of the Company in the industry and changes therein
As a new generation of display technology, the laser display technology has a wide range of marketapplications by virtue of high brightness, long life, wide color gamut, and energy saving and environmentalprotection. In addition to being used in the traditional display field, it can also be applied in other fieldssuch as aviation, automotive and AR, with an increasingly important position in the display field.
At the beginning of the industrialization of laser display technology, as one of the leading companiesin the field of laser display, Appotronics has mastered core technologies. After multiple iterations, theALPD? technology has gained relatively solid technical advantages in terms of performance, cost,efficiency and size. The Company has not only created the fundamental key architecture for laser phosphordisplay technology, but also built a proprietary IP protection system through patent layout in China, theUnited States, Japan, Europe and other countries.
According to the Research Report on Chinese Laser Projector Market 2020 issued by AVC, blue laser+ phosphor powder technology architecture, represented by ALPD?, is the mainstream light sourcetechnical route for the laser display industry at present. On the principle of being open for cooperation andstriving for win-win development, Appotronics has become a leading supplier of core devices in the laserdisplay industry based on its intellectual property rights and core devices, hence driving the developmentof the entire industry and ecology.
II. Core technologies and progress in R&D of technologies
1. Core technologies and their advancement, and changes during the reporting period
The Company has been committed in the breakthroughs, innovations, expansion of applicationscenarios and industrialization of laser display technology, and created technology reserves and patentportfolios covering the whole technology chain of laser display from key system architecture, core devicesto key algorithm. With the ALPD?4.0 technology matured and the ALPD? 5.0 and 6.0 technology underdevelopment and trial operation at the same time, the Company constantly maintains its leadingadvantages compared with followers and competitors in the industry. As a Leader Level Member of theLaser Illuminated Projector Association (LIPA), the Company has participated in and led the preparationof the international laser display standard.
The Company has poured substantial R&D resources in micro- & nano- optical structure technology,light source architecture, complete equipment structure, machine perception and the preparation andprocessing of thin film materials. The big data, algorithm and design solutions accumulated by theCompany over the years will enable it to rapidly develop products and solutions meeting the requirementsof different application scenarios, such as cinema projection, home entertainment, outdoor exhibition, ultralarge-sized display, and immersive display.
In terms of cutting-edge technologies, the ALPD 5.0 technology will make use of the characteristicsof laser with reference to the creation of content to achieve high dynamic range display and improve visualexperience. The ALPD 6.0 is planned to make breakthrough in the existing display architecture to furtherreduce the cost of laser display systems. ALPD?5.0 principle prototype has been successfully developed,and by now, the Company is conducting further optimization. This technology has the prospect of enteringthe stage of product development.
2. R&D achievements during the reporting period
During the reporting period, the Company made the following achievements in technology andproduct innovation:
1. Core devices
During the reporting period, the Company completed the development and mass productionintroduction of a full range of products based on ALPD 4.0, including the laser cinema light sourceplatform covering 10,000-50,000 lumens and the compatible three-color, two-color and monochromaticlaser TV light generator platform, hence providing more abundant and more competitive solutions of coredevices for the cinema industry and the laser TV industry. Meanwhile, in terms of smart mini projectors,the Company developed various laser mini projection light generators suitable for different product formsand different performance parameters, which greatly upgrade the brightness and energy efficiency whileimproving color effects. During the reporting period, the Company introduced many new customersincluding Dangbei, and provided them with core devices of the laser mini projection light generator.
The Company made further breakthroughs and innovations in flexible laser display screen andsuccessfully developed three products: (1) ultra short throw diaphragms for speckle reduction used inthree-color laser projectors, achieving speckle reduction contrast below 10%, taking the lead in theindustry; (2) ultra short throw diaphragms with high contract, with an opacity of more than 95%, superiorto 85% of competitive products in the industry, which can greatly reduce the effect of ambient light; (3)high-gain direct projection anti-light screens with the smart mini projector, achieving the 2.5x high-gainfactor and the ambient light obscuring rate of 80%, which supports the projection effect of the projectiondevice to increase the brightness by 2.5 times, and achieves a viewing angle close to 180 degrees ascompared to projecting on a white wall.
2. Complete equipment
The Company developed high-, medium-, and low-end laser TV products to cater for different userdemands on the household market. Having the highest brightness of 4,000 lumens, covering the REC.709,DCI, and REC.2020 color gamuts, and with the maximum color gamut area of 158% NTSC, its productsare at the highest level in the industry. During the reporting period, Fengmi as the subsidiary launched anew laser TV product, Cinema 2, which has a 10% increase in screen brightness compared to the previousgeneration, has a 4K resolution and can project 80-150 inches of super-large screens.
In the business field, the Company newly developed S4 product with less than 10cm of a slim bodyand a light weight of less than 9.2kg, can produce 5,000-6,000 lumens of brightness and 4K resolution,
and also present high-quality projection images in bright environment and project 300 inches of super-large screen at largest. This product is cost-effective. Based on the compact modular body of S4 platformand in conjunction with the one-button automatic stacking system, this product can achieve morebrightness, larger screen and more free application.As the first Chinese enterprise independently researching and developing 3DLP high-lumen largevenue projectors, during the reporting period, the Company launched the T series of high-brightness largevenue projectors adopting a high-efficiency liquid cooling system and 3DLP imaging technology toachieve 33,000 lumens of high brightness. At present, this is the world’s smallest and lightest large venueprojector with the same brightness range. The multi-picture splicing and fusion system is embedded in it.In addition, it has 120Hz refresh rate to support constant brightness mode, can be configured with morethan 6 motorized lenses and support 360-degree installation, easy to use.
3. Software
During the reporting period, the Company’s Feng OS system completed a total of 7 iterations,achieving an extremely fast boot in 6 seconds. Currently, its 12 mass-produced household products areequipped with this system, and complete FDP dynamic engine upgrade. During the reporting period, FengOS system completed the broadcast of large-scale programs such as the European Cup. At present, itspenetration rate of paid members takes the lead in the industry, and the Company has completed in-depthprocessing of 20,000 film and television works and 20,000+ film and television characters in aggregate,providing strong support for improving effect of large-screen display.The Company implemented an omnidirectional automatic correction algorithm, which is suitable fora variety of models such as the projector Vogue Pro, and adds intelligent auxiliary functions such asautomatic obstacle avoidance and screen alignment to the Vogue Pro model. The Feng OS system addsmachine recommendation algorithms to more pages, making it easier for users to discover theirpersonalized preferences faster and more accurately.
List of intellectual property rights acquired during the reporting period
Increase | Total | |||
Applications (pcs) | Granted (pcs) | Applications (pcs) | Granted (pcs) | |
Patent for invention | 79 | 82 | 1,397 | 684 |
Patent for utility model | 46 | 23 | 470 | 413 |
Patent for design | 10 | 10 | 161 | 147 |
Software copyright | 6 | 12 | 100 | 99 |
Others | 77 | 73 | 914 | 725 |
Total | 218 | 200 | 3,042 | 2,068 |
Current period | Previous period | Change (%) | |
R&D investments expensed | 95,128,483.66 | 87,295,450.75 | 8.97 |
R&D investments capitalized | 0.00 | 0.00 | N/A |
Total R&D investments | 95,128,483.66 | 87,295,450.75 | 8.97 |
Proportion of R&D investments to operating income (%) | 8.61 | 12.19 | -3.58 percentage points |
Proportion of R&D investments capitalized (%) | 0.00 | 0.00 | N/A |
4. R&D projects
√ Applicable□ N/A
Unit: Yuan
No. | Item | Estimated total investment | Investment in the current period | Aggregate investment | Progress or interim results | Goals | Technological level | Application scenario |
1 | Key Enterprise Laboratory for Laser Display in Guangdong Province | 34,000,000.00 | 17,641,241.08 | 33,682,138.89 | Mass production | Development of laser phosphor display optical engine, high-performance fluorescent materials and fluorescent components, portable laser display technology, and laser display technology with high contrast and high color reproduction. | The development of key laser display technology and devices based on laser phosphor technology takes the lead in the industry. | Through transformation of lab R&D results, develop multiple laser display terminal products, and promote the development of the entire display industry chain. |
2 | Light source and light generator as core devices | 65,700,000.00 | 14,934,483.41 | 14,934,483.41 | Some products have completed mass production, and new products are being updated | Use technical advantage of ALPD?4.0 to achieve the mass production of light generators and cinema light source with lower cost, higher color gamut and brightness and smaller size. Research and develop the next generation of ALPD? laser display technology with high brightness and high | Take the lead in the industry; the cost effectiveness, color gamut, light effect, and other performance are greatly improved. | Upgrading of light source for small-sized cinema projectors, laser TV, laser mini projector and other fields. |
dynamic range at the same time. | ||||||||
3 | Laser cinema projector | 28,140,000.00 | 18,633,001.19 | 18,633,001.19 | Some products have completed mass production, and new products are being updated | Research and develop a low-cost and DCI-compliant laser cinema projector that meets high-end home use. | The proprietary DCI-compliant cinema projector in China that meets high-end home use. | DCI-compliant small cinema projector that targets the high-end home use. |
4 | Laser TV | 74,200,000.00 | 26,789,778.55 | 26,789,778.55 | Some products have completed mass production, and new products are being updated | With a new generation of light generator technologies and the independently developed FengOS system and screen, achieve great improvement in cost effectiveness, color gamut and ease of use. | Take the lead in the industry. | 4K household laser TV. |
5 | High-performance mini projector | 50,910,000.00 | 4,269,920.88 | 4,269,920.88 | Some products have completed mass production, and new products are being updated | Provide high-performance and cost-effective laser mini projector | Take the lead in the industry. | Household mini projector market. |
6 | Other complete equipment | 48,250,000.00 | 7,536,415.62 | 7,536,415.62 | Some products have | The automatic stacking scheme renders the linear superposition of | Take the lead in the industry. | High-end large venue, business |
(large venue + business education) | completed mass production, and new products are being updated | brightness and cost to achieve a leading technical advantage and cost-effective advantage on the market when the product is applied to high-lumen use scenes. | education and other fields. | |||||
7 | Screen | 11,980,000.00 | 1,460,440.44 | 1,460,440.44 | Some products have completed mass production, and new products are being updated | Reduce costs and improve performance on the basis of the first flexible Fresnel anti-light screen Fabulus. | Take the lead in the industry, superior to the products in the field. | With existing display products, it can be applied in a variety of scenarios. |
8 | Trichromatic Laser Display Complete Equipment Production Demonstration Line | 102,840,000.00 | 3,863,202.49 | 28,398,309.83 | Pilot test | This project will research the industrialization of the technology of RGB trichromatic laser with phosphor to satisfy the market demands for RGB trichromatic laser display, build a mass production line for trichromatic laser display complete equipment, acquire proprietary IP, and realize large-scale application of | This project will greatly promote the industrial upgrading of trichromatic laser display technology, and gain international competitive edge for proprietary trichromatic laser display technology. | This project will establish a complete equipment production demonstration line of trichromatic laser display. |
trichromatic laser display products. | ||||||||
Total | / | 416,020,000.00 | 95,128,483.66 | 135,704,488.81 | / | / | / | / |
5. R&D staff
Unit: 0’000 Currency: RMB
Basic information | ||
Current period | Previous period | |
Number of R&D staff (persons) | 391 | 336 |
Proportion of R&D staff to total employees of the Company (%) | 30.52 | 30.05 |
Total compensation of R&D staff | 6,049.49 | 5,491.73 |
Average compensation of R&D staff | 15.47 | 16.34 |
Education | ||
Academic background | Number | Percentage (%) |
Doctor | 15 | 3.84 |
Master | 91 | 23.27 |
Undergraduate | 234 | 59.85 |
College or below | 51 | 13.04 |
Total | 391 | 100.00 |
Age structure | ||
Age | Number | Percentage (%) |
30 years of age or below | 164 | 41.95 |
30-40 years of age | 185 | 47.31 |
40 years of age or above | 42 | 10.74 |
Total | 391 | 100.00 |
is hard to be fully simulated or directly bypassed by the competitors.
3. Advantage in layout in the whole industry chain
The Company has a layout of the entire laser display industry chain, and keeps extending applicationscenarios. The solutions ranging from the development and manufacturing of independently developedcore devices and complete equipment to laser display lead the growth of laser display field. In terms ofcore devices, the Company has developed cinema light source, large venue light source, laser lightprojector and flexible laser display screen, etc.; for complete equipment, the Company offers the mainproducts including laser cinema projector, large venue laser projector, laser education projector, laser TVand smart mini projector, etc. The solutions provided by the Company are widely used in cinemas, culturaltourism, security, education, business, homes, consumer electronics and other fields; laser displaytechnology is the mainstream new display technology, with a huge future development space. TheCompany has advanced layout in multiple innovation fields and has a broad market application space,laying a solid foundation for its future growth.
4. Advantage in product performance
Through more than ten years of R&D efforts, the Company’s technical advantages have been givenfull play in cinema, household, large venue and other fields. Its products show superior performance inbrightness, service life, color gamut, removal of speckle and other aspects. Through sufficient validationat R&D and quality labs and on-site use for a long time, the Company’s product models have becomemature. Since its installation in June 2014, the first set of ALPD? cinema light source has been stablyoperating for over seven years. The Company’s products in other fields have also won trust on the marketwith their outstanding performance and reliable quality.
5. Advantage in talents and teams
The Company’s founder and Chairman, Dr. LI Yi, is a well-known expert in the field of laser display,and also the R&D leader and key technician of the Company. In addition, the Company has a group ofhigh-quality R&D talents, including a lot of doctors and masters graduated from famous domestic andforeign universities. The Company’s R&D team has taken the lead in the research of laser displaytechnology in the industry. The Company is able to precisely catch the development trend of the displayindustry, and continuously release new laser display products with prominent prospects in response tomarket demands.
(II) Events occurred during the reporting period that have a material effect on the Company’s core
competitiveness, analysis of the effect and countermeasures
□ Applicable√ N/A
IV. Discussion and analysis of business situations(I) Analysis of the overall business situation during the reporting period
After the pandemic, the film, large venue projection and business education projection markets aregradually recovering, and the household business segment is growing rapidly. Driven by the market,technology, environment, demand and other factors, the new display industry such as laser display
embraces new development opportunities.During the reporting period, the Company seized market opportunities and deepened adjustments toits business structure, further promoted TO C business, and explored a new growth curve; meanwhile, thedomestic film market continued to pick up and recovered to 90% compared to the corresponding periodin 2019. Benefiting from the good performance of the film market, the Company’s cinema businessachieved recovery growth, contributing a stable cash flow and net profit to the performance of the firsthalf of the year; in addition, with the gradual control of the pandemic and being supported by a series ofstable investment and growth policies, the large venue and business education markets are graduallyrecovering. The Company has obvious competitive advantages in terms of large venue and businesseducation, and obtains outstanding performance in the first half of the year. For core devices, the Companyhas further expanded its leading advantage in the supply of core devices in the laser display industry byvirtue of cost-effective and high-performance core device products. During the reporting period, theCompany established cooperation with Dangbei, Hewlett-Packard, Hisense, Changhong, etc. to providethem with core device products such as laser light source, light projector and screen.During the reporting period, the operating income of the Company was RMB 1.105 billion, up by
54.28% year on year; the net profit attributable to the Parent Company was RMB 151 million, up by
956.81% year on year. Wherein the operating income of TO C business was RMB 541 million, accountingfor 48.99% of total revenue; TO B business was outstanding, with the laser cinema projection service,laser cinema projector, large venue and business education up by 576.76%, 120.09%, 154.14% and 51.09%year on year, respectively.
Unit: 0’000 Currency: RMB
Main business by sector | ||||||
Sector | Operating income | Operating cost | Gross margin (%) | % Change in operating income | % Change in operating cost | % Change in gross margin |
Laser display | 110,468.92 | 72,361.23 | 34.50 | 54.28 | 36.59 | +8.49 percentage points |
Main business by product | ||||||
Product | Operating income | Operating cost | Gross margin (%) | Year-on-year increase or decrease of operating income (%) | Year-on-year increase or decrease of operating cost (%) | Year-on-year increase or decrease of gross margin (%) |
1. Sales | 91,163.98 | 65,553.48 | 28.09 | 32.67 | 34.98 | -1.23 percentage points |
(1) Laser optical engine | 10,289.48 | 4,324.43 | 57.97 | -17.66 | -7.47 | -4.63 percentage points |
(2) Complete laser projector | 76,040.62 | 56,975.74 | 25.07 | 44.09 | 35.37 | +4.83 percentage points |
Laser cinema projector | 2,855.71 | 1,421.36 | 50.23 | 120.09 | 88.04 | +8.48 percentage points |
Laser TV | 26,060.37 | 18,430.82 | 29.28 | 28.21 | 24.80 | +1.93 percentage points |
Laser business education projector | 10,737.15 | 7,357.36 | 31.48 | 51.09 | 40.68 | +5.07 percentage points |
Laser large venue projector | 8,330.56 | 3,921.79 | 52.92 | 154.14 | 134.44 | +3.95 percentage points |
Smart mini projector | 28,056.83 | 25,844.41 | 7.89 | 35.11 | 31.43 | +2.57 percentage points |
(3) Other products | 4,833.88 | 4,253.31 | 12.01 | 40.23 | 135.87 | -35.68 percentage points |
2. Projection service business | 18,565.59 | 6,437.12 | 65.33 | 576.76 | 51.29 | +120.43 percentage points |
3. Other business | 739.35 | 370.63 | 49.87 | 420.74 | 135.81 | +60.57 percentage points |
Total | 110,468.92 | 72,361.23 | 34.50 | 54.28 | 36.59 | +8.49 percentage points |
What’s more, Fengmi successfully completed round A financing and was based in Chongqing. Infuture, Fengmi will simultaneously construct R&D centers, data centers, transformation centers ofscientific and technological achievements, laboratories and other supporting service facilities inChongqing, deploy R&D, design and manufacturing in the field of smart projection, and increase newproduct R&D and market investment, integrate superior resources, and expand existing product categoriesand application fields.
2. Cinema business recovered well and the large venue and business education grew rapidly
During the reporting period, the Company launched cost-effective cinema light source products, andsteadily promoted the penetration of cinema light source projection service business to more cinemas. Asof the disclosure date of this report, Appotronics has over 23,000 ALPD? laser projectors installedthroughout China, an increase of 3,000 sets compared to the beginning of the period, and the authorizedtimed broadcasting exceeded 168 million hours, taking the absolute leading position on the market.
Meanwhile, the Company cooperated with UME Cinema to launch the first ALPD? laserhighlighting theater in China. As an upgraded version of ALPD? version, the projection brightness is 180%higher than that of ordinary movies. At the end of the reporting period, CINEAPPO, the controlledsubsidiary of the Company, has established 268 ALPD? highlighting theaters throughout China.Meanwhile, CINEAPPO has jointly worked with producers to successively develop “Secret Visitor”, “Onthe Cliff”, “Chinese Doctors” and other laser highlighting films, improving the additional commercialvalue of laser film projection services and creating stronger market competitiveness.
In the field of large venue, the Company provided the projection solutions for many cultural tourismprojects including “Mr. Big” light show for the 110th anniversary of Tsinghua University, “JiamengChunqiu” in Guangyuan, Sichuan, and “Strange Life Travel” in Beijing 798 Art District. The Companyalso promoted the implementation of the first domestic Chinese outstanding cultural immersive digitalexperience center, i.e. “Liaocang” project in Beijing. The Company lighted up the stage of the theatricalperformance “Great Journey” for the centenary of the founding of the CPC by providing ALPD? laserlight source. At the end of the reporting period, the Company’s large venue business achieved a year-on-year increase of 154.14%.
In the field of business education, the Company further developed many cost-effective andcompetitive products. During the reporting period, the Company expanded many higher education projects,covering core universities in multiple regions, and reserved higher education projects including Project985 and 211. The revenue of higher education business increased by approx. 200% compared with lastyear. Meanwhile, the Company actively advanced the development of the business office market, paidattention to application scenarios such as emerging industries, script killing, and immersive restaurants,and expanded new business increments.
3. Speed up overseas layout and create synergy
Although the overseas pandemic prevention and control is still severe, the Company still activelyimproved its overseas layout and expanded overseas markets during the reporting period.
With the continuous implementation of the EU’s relevant mercury restriction regulations, the mercury
light projection stock market is shrinking, and the demand for the laser projection in business educationmarket is increasing. During the reporting period, the Company focused on expanding overseas customersincluding Russia and Turkey, and the revenue from the overseas business education increased by over 400%from the previous year. As the next step, the Company will continue to focus on the overseas businesseducation market and explore market opportunities in Europe, the Middle East and other regions.Further, in the first half of the year, the sales of Company’s overseas large venue projector light sourcereturned to the pre-COVID 19 level basically, and the Company also actively engaged with major overseascinema customers, followed up the reform of cinema light source, and promoted the penetration of thecinema laser projection service model on the overseas markets.
4. Achieve significant results in terms of intellectual property operations and phased progressin the case involving DeltaRegarding R&D results, during the reporting period, the Company was granted 115 new patents,including 82 patents for invention, 23 patents for utility model and 10 patents for design; the Companyfiled 38 new PCT international patent applications, totaling 193 valid PCT international patent applications.At the end of the reporting period, the Company applied for and was granted 2,221 patents in totalworldwide.
On the principle of cooperation in good faith and win-win development, and based on its intellectualproperty rights and core devices, the Company is exploring the mode of patent operation to establish andgradually improve the ecology of the laser display industry chain. During the reporting period, theCompany actively promoted cooperation with the leading downstream customers in the industry, andachieved certain results in the sales of core devices from the intellectual property operations.
During the reporting period, significant progress was made in the case on the intellectual propertylitigation between the Company and Delta. For the STAR Market Patent No. 1 Case ( (2019) Yue 73 ZhiMin Chu No. 664), the judgment of the first instance was delivered, in which the defense of non-infringement of Appotronics was established, and all claims made by Delta were dismissed by the courtof the first instance; Delta withdrew its case in the second instance, and the Supreme People's Court issueda final ruling, allowing Delta to withdraw the lawsuit.(II) Completion of other key tasks during the reporting period
During the reporting period, the Company achieved favorable results in innovative scenarioapplications, talent team building, and investor relationship management:
1. Establish an innovation center and explore innovative scenario applications
During the reporting period, the Company established an innovation center, and extended theinnovative application research and development to multiple fields. In May 2021, the Company and ACICreached a strategic partnership. The two parties will explore possibilities of various aviation applicationsbased on laser light source technology and laser display solutions. Application scenarios includecommercial fixed-wing aircraft and helicopters. Meanwhile, the Company actively deployed in-vehiclelaser display, smart home and other application fields.
2. Launch a new phase of equity incentives and strengthen the building of talents
In order to further establish and improve the Company’s long-term incentive mechanism, strengthenthe building of talents, and fully mobilize the enthusiasm of the Company’s core team, the Companydeveloped a new phase of equity incentive plan during the reporting period, under which 18.5 millionrestricted shares were issued, representing 4.09% of the share capital of the Company; such shares werefirst granted to the Company’s business backbone, totaling 220 persons, accounting for 17% of the totalemployees of the Company.
3. Systematize capital market communication and establish a good image of the capital market
During the reporting period, the Company improved the talent building of investor relations, andestablished a dedicated capital market communication mechanism for which a designated person takesspecial duties in order to build a two-way communication bridge between the Company and the capitalmarket through multi-channel and multi-level communication. As of the disclosure date of this report, thesecurities companies have published several in-depth research reports on the Company, and completedmore than a hundred investor exchange activities covering thousands of people. The investor relationsteam aims to serve shareholders and tap potential investors, significantly increasing the Company’sactivity in the capital market and establishing a good image in the capital market.
Significant changes in the operations of the Company during the reporting period, and the eventsthat have or are expected to have a significant impact on the operations of the Company duringthe reporting period
□ Applicable√ N/A
V. Risk factors
√ Applicable□ N/A
1. Risk related to the supply of important raw materials
Affected by the tight industry supply chain, the core suppliers are unable to supply components in atimely manner with both quality and quantity guaranteed, resulting in a slowdown in the growth of theCompany’s TO C business and delay in the shipment progress of some core devices or complete equipmentproducts, hence the operating performance growth rate of the Company would fail to meet the expectation.
2. Risk of impairment of inventories
During the reporting period, the Company implemented strategic stocking as affected by the tightindustry supply chain, to be specific, reserving raw materials in advance. At the end of the reporting period,the carrying amount of the Company’s inventories was RMB 641.5780 million, accounting for 17.57% oftotal assets of the Company. If the future sales do not meet expectation or market trends change, therecoverable amount of the inventories will be lower than their carrying amount. The impairment ofinventories will have a negative effect on our earnings.
3. Risk of loss on external investments
The Company established or invested in subsidiaries or participating companies in other countriesand regions. There may exist the following risks: first, the policy, culture and law environments and otherfactors of the country where an overseas company is incorporated would increase the management risk ofthe Company’s overseas subsidiaries; second, if the operating performance of the investee decreases
sharply because the technological level or market expansion of the investee falls short of the Company’sexpectation, or the investee poorly operates or manages, the Company needs to recognize an impairmentloss on the long-term equity investment, which will adversely affect the Company’s operating performance;third, if the Company fails to achieve a synergy effect through acquisition of the investee, the Company’sstrategic plan may be unable to be implemented as scheduled.
4. Risk of COVID-19
As continuously affected by the pandemic, the Company failed to expand its overseas business asscheduled, and overseas customers also slowed down in product delivery and acceptance; the Company’scinema projection service business was also affected to a certain extent due to the closure of a smallnumber of theaters and the delay of film schedules as part of domestic anti-epidemic control measures.However, if the prevention and control of the epidemic on the world remain grim, this would increase theuncertainty in the production and operation of the Company.
VI. Main business activities during the reporting period
Please refer to “IV. Discussion and analysis of business situations” in this section for details.(I) Analysis of main business1 Analysis of changes in the lines of financial statements
Unit: Yuan Currency: RMB
Item | Current period | Amount of the prior period | % Change |
Operating income | 1,104,689,243.59 | 716,025,207.34 | 54.28 |
Operating costs | 723,612,305.19 | 529,787,789.94 | 36.59 |
Sales expenses | 89,686,195.83 | 50,833,894.50 | 76.43 |
Administrative expenses | 83,960,516.92 | 77,813,657.09 | 7.90 |
Financial expenses | 1,532,019.30 | 8,037,691.04 | -80.94 |
R&D expenses | 95,128,483.66 | 87,295,450.75 | 8.97 |
Net cash flows from operating activities | 170,659,313.90 | 63,006,061.80 | 170.86 |
Net cash flows from investment activities | -365,535,026.25 | -92,315,802.97 | N/A |
Net cash flows from financing activities | 75,588,344.51 | -115,291,912.69 | N/A |
Description of reasons for changes in the net cash flows from financing activities: primarily due to thereceipt of strategic investment funds by Chongqing Fengmi as the subsidiary in the current period.
2 Detailed description of major changes in the business type, profit composition or profit sources
of the Company in the current period
□ Applicable√ N/A
(II) Explanation about material changes in profit due to non-main business
√ Applicable□ N/A
During the reporting period, the year-on-year increase of RMB 39.8920 million in non-recurringprofit or loss was primarily due to the increase by RMB 41.9565 million in the government grantsrecognized in the profit or loss for the current period and recognition of the performance compensationamounting to RMB 38.1759 million of the participating company.
(III) Analysis of assets and liabilities
√ Applicable□ N/A
1. Status of assets and liabilities
Unit: Yuan
Item | Balance at the end of the period | % of total assets at the end of the period | Balance at the end of the prior period | % of total assets at the end of the prior period | % Change | Explanation |
Held-for-trading financial assets | 457,982,988.00 | 12.54 | 114,000,000.00 | 3.53 | 301.74 | Primarily due to the purchase of wealth management products by the Company with idle offering proceeds and recognition of the performance compensation for external investment |
Receivables | 168,553,862.09 | 4.62 | 341,660,832.43 | 10.59 | -50.67 | Primarily due to recovery of opening receivables during this period |
Receivables financing | 1,214,306.00 | 0.03 | 11,959,000.00 | 0.37 | -89.85 | Primarily due to the receipt in the current period of bank’s acceptance bills at the end of the prior period |
Prepayments | 83,781,122.54 | 2.29 | 47,447,601.43 | 1.47 | 76.58 | Primarily due to the increase in prepayments to some suppliers for stocking demand in the current period. |
Inventories | 641,578,029.45 | 17.57 | 418,812,140.80 | 12.98 | 53.19 | Primarily due to the increase in raw materials for stocking demand during this period |
Contract assets | 2,388,492.32 | 0.07 | 3,744,655.50 | 0.12 | -36.22 | Primarily due to receipt of contract assets during this period |
Other current assets | 49,693,022.76 | 1.36 | 13,002,195.46 | 0.40 | 282.19 | Primarily due to the increase in the input VAT to be deducted during this period |
Construction in progress | 88,984,744.00 | 2.44 | 51,576,850.72 | 1.60 | 72.53 | Primarily due to the increase in the construction of the headquarters building |
Use right assets | 36,066,334.54 | 0.99 | N/A | Primarily due to first implementation of new lease standard | ||
Other non-current assets | 15,891,524.06 | 0.44 | 6,299,781.06 | 0.20 | 152.26 | Primarily due to the increase in prepayments for long-term assets |
Short-term borrowings | 28,097,875.42 | 0.77 | 88,778,852.86 | 2.75 | -68.35 | Primarily due to repayment of short-term borrowings during this period |
Notes payable | 180,257,484.74 | 4.94 | 116,822,674.67 | 3.62 | 54.30 | Primarily due to the increase in payment by bank’s acceptance bills for procurement during this period |
Taxes | 43,934,753.55 | 1.20 | 19,871,846.94 | 0.62 | 121.09 | Primarily due to |
payable | the increase in provision for enterprise income tax during this period | |||||
Other payables | 255,483,098.01 | 7.00 | 59,848,053.83 | 1.86 | 326.89 | Primarily due to the increase in the equity repurchase payments payable of Chongqing Fengmi during this period |
Long-term borrowings | 102,690,487.26 | 2.81 | 64,845,281.53 | 2.01 | 58.36 | Primarily due to the new increase in long-term borrowings of the subsidiaries during this period |
Leasing liabilities | 18,391,443.49 | 0.50 | N/A | Primarily due to first implementation of new lease standard by the Company |
Item | Amount | Reason |
Bank deposits | 40,000,000.00 | Term deposits |
Other monetary funds | 20,292,090.37 | Security deposit for notes and letters of credit |
Intangible assets | 297,566,999.88 | Land use rights used to be as the loan mortgage |
(IV) Analysis of investments
1. Overall analysis of external equity investments
√ Applicable□ N/A
At the end of the reporting period, the Company holds the long-term equity investment of RMB
265.9005 million, RMB 3.1557 million more than the opening amount, which is primarily due to theincrease in the investment return of the investee, changes in other comprehensive income and exchangerate changes.
(1) Material equity investments
□ Applicable√ N/A
(2) Material non-equity investments
□ Applicable√ N/A
(3) Financial assets at fair value
√ Applicable□ N/A
As of June 30, 2021, the balance of held-for-trading financial assets of the Company was RMB457,982,988.00, including RMB 420,000,000.00 of structured deposits and RMB 37,982,988.00 ofperformance compensation of the participating company;The balance of investment in other equity instruments was RMB 11,975,419.38, which is investmentin two investee companies with zero change in the fair value during the reporting period;The receivables financing was RMB 1,214,306.00, which is bank’s acceptance bills.(V) Sale of material assets and equities
□ Applicable√ N/A
(VI) Analysis of major investees
√ Applicable□ N/A
Unit: 0’000 Currency: RMB
Company | Main business | Registered capital | Shareholding percentage | Total assets | Net assets | Operating income | Net profit |
CINEAPPO | Provision of cinema laser light source projection service and sales of projectors | 10,000.00 | 63.20% | 93,873.42 | 41,077.12 | 24,400.67 | 5,901.25 |
Chongqing Fengmi | R&D and sale of household display products | 7,017.54 | 39.19% | 79,894.87 | -10,062.30 | 53,121.69 | 1,276.14 |
Appotronics HK | R&D and sale of laser light source | 30,116.15 | 100.00% | 37,772.96 | 35,099.11 | 2,180.96 | 3,144.50 |
Section IV Corporate Governance
I. General meetings of shareholders held
Session | Date of meeting | Reference to resolutions published on the designated website | Date of disclosure of resolutions | Resolutions |
1st extraordinary general meeting of shareholders in 2021 | February 25, 2021 | www.sse.com.cn | February 26, 2021 | All proposals submitted to the general meeting have been reviewed and passed. |
2nd extraordinary general meeting of shareholders in 2021 | April 12, 2021 | www.sse.com.cn | Arpil 13, 2021 | All proposals submitted to the general meeting have been reviewed and passed. |
Annual general meeting of shareholders in 2020 | May 14, 2021 | www.sse.com.cn | May 15, 2021 | All proposals submitted to the general meeting have been reviewed and passed. |
Directors, and two persons including GAO Lijing and SUN Hongdeng as the candidates of members ofthe Company’s Second Board of Supervisors who are not representatives of the staff and workers. OnAugust 3, 2021, the Company held the 3rd extraordinary general meeting of shareholders in 2021,reviewing and approving the said proposal.
2. The Company held the conference of the representatives of the staff and workers on July 15, 2021,electing Ms. WANG Yingxia as the director of the Second Board of Directors who is the representativeof the staff and workers, and Ms. WANG Yanyun as the supervisor of the Second Board of Supervisorswho is the representative of the staff and workers. The said director and supervisor, together with thedirectors and supervisors elected by the 3rd extraordinary general meeting of shareholders in 2021 of theCompany, respectively form the Second Board of Directors and the Second Board of Supervisors of theCompany. Their respective term of office shall be three years from the date of review and approval by thegeneral meeting of shareholders.
3. On August 3, 2021, the Company held the 1st meeting of the Second Board of Directors, electingMr. LI Yi as the Chairman of the Second Board of Directors, and engaging Mr. BO Lianming as thegeneral manager of the Company, Ms. WANG Yingxia as the CFO of the Company, and Ms. YAN Li asthe secretary of the Board of Directors of the Company. On the same day, the Company held the 1stmeeting of the Second Board of Supervisors, electing Ms. GAO Lijing as the Chairman of the SecondBoard of Supervisors.
4. During the reporting period, the Company’s key technical staff included LI Yi, HU Fei, YU Xin,WANG Lin, GUO Zuqiang and WU Xiliang. On August 23, 2021, after reassessment, the Company’s keytechnical staff include LI Yi, HU Fei, YU Xin, WANG Lin, WANG Zeqin and GUO Zuqiang.
Description of determination of key technical staff of the Company
√ Applicable□ N/A
After taking into account technology R&D, obtainment of patent for invention and other factors, theCompany optimized and adjusted the specific determination standards of key technical staff as follows inorder to standardize and improve the building of the Company’s R&D system:
(1) play an important role in the Company’s R&D system or hold an important position in theCompany’s R&D department;
(2) lead the R&D of multiple core technologies of the Company during the period of service;
(3) obtain several patents in the capacity as inventor or designer, and make outstanding contributionsto the core technologies of the Company; and/or
(4) have a deep professional knowledge background in the laser display industry, broad workqualifications or project experience.
Any candidate shall meet at least two of the above criteria at the same time, and then with the approvalby the Chairman, may be determined as a key technician of the Company.
III. Proposals for profit distribution and capitalization of the capital reserveProfit distribution proposal or proposal for capitalization of capital reserve during the reportingperiod
Whether to implement profit distribution or capitalization of capital reserve | No |
Number of bonus shares distributed per 10 shares | / |
Cash dividends distributed per 10 shares (inclusive of tax) | / |
Number of shares distributed out of the capital reserve | / |
Description of the proposal for profit distribution on ordinary shares and capitalization of the capital reserve | |
/ |
Summary | Reference |
On March 26, 2021, the Company held the 30th meeting of the 1st Board of Directors and the 17th meeting of the 1st Board of Supervisors, which reviewed and approved the Proposal on the 2021 Restricted Share Incentive Plan (Draft) of the Company and Summary of the Plan and other related proposals. | Please refer to the relevant announcement issued by the Company on www.sse.com.cn and the designated media for information disclosure on March 27, 2021. |
On April 12, 2021, the Company held the 2nd extraordinary general meeting of shareholders in 2021, which reviewed and approved the Proposal on the 2021 Restricted Share Incentive Plan (Draft) of the Company and Summary of the Plan and other related proposals. | Please refer to the relevant announcement issued by the Company on www.sse.com.cn and the designated media for information disclosure on April 13, 2021. |
On April 22, 2021, the Company held the 31th meeting of the 1st Board of Directors and the 18th meeting of the 1st Board of Supervisors, which reviewed and approved the Proposal on the Adjustment of the 2021 Restricted Share Incentive Plan and the Proposal on Initial Grant of Restricted Shares to Grantees, pursuant to which, the Company initially granted 17.1 million shares to 220 grantees at the price of RMB 21.00 per share (for special grantees), RMB 17.5 per share (for Type I grantees) and RMB 18.5 per share (for Type II grantees) on April 22, 2021. The Company’s independent directors expressed their independent opinions on such proposals, and the Board of Supervisors expressed its opinion after review of such proposals. | Please refer to the relevant announcement issued by the Company on www.sse.com.cn and the designated media for information disclosure on April 24, 2021. |
□ Applicable√ N/A
Section V Environment and Social Responsibilities
I. Environment(I) Environmental protection information of the Company and its major subsidiaries that are
identified as major polluters by the environmental protection authority
□ Applicable√ N/A
(II) Environmental protection information of any company that is not identified as a major polluter
√ Applicable□ N/A
1. Administrative penalties imposed due to environmental issues
□ Applicable√ N/A
2. Disclosure of environmental protection information with reference to that of major polluters
√ Applicable□ N/A
The Company has not been identified as a major polluter during the reporting period. The Companyattaches importance to environmental protection and has taken measures, the details of which are seen in“I. Environment” - “(V) Measures taken to reduce carbon emissions during the reporting period and theireffect” in “Section V Environment and Social Responsibilities”.
3. Reason for failure to disclose environmental protection information
□ Applicable√ N/A
(III) New information about the environmental protection information disclosed during the
reporting period
□ Applicable√ N/A
(IV) Relevant information conducive to protecting ecology, preventing pollution and fulfilling
environmental responsibilities
□ Applicable√ N/A
(V) Measures taken to reduce carbon emissions during the reporting period and their effect
√ Applicable□ N/A
1. In the production process, the Company keeps improving “energy saving and emission reduction”.To be specific, the Company independently researches, develops and implements waste water recyclingand reuse systems, implements special energy-saving measures for central air-conditioning systems, aircompressors, UV purifier systems, aging products and product equipment, so as to minimize the energyconsumption and impact on the environment. During the reporting period, the Company’s keyenvironmental indicators all met standards. The average water consumption per unit of productionequipment decreased by 38.46% year on year, and electricity consumption per unit decreased by 10.01%year on year.
Key environmental indicators for the first half of 2021 | ||||
No. | Item | Goal | Actual | Meet the relevant standard or not |
1 | Litigation filed by outsiders | 0 | 0 | Yes |
2 | Average electricity consumption per unit | not more than 26 kwhs | 24.53 kwhs | Yes |
3 | Average water consumption per unit | not more than 0.1 tons | 0.08 tons | Yes |
4 | Total hazardous waste discharges | not more than 3.3 tons | 2.33 tons | Yes |
5 | Rate of passing the review by the environmental protection system | 100% | 100% | Yes |
II. Information on consolidation and expansion of the results of poverty alleviation, rural
revitalization and other specific work
√ Applicable□ N/A
To actively respond to the national policy of “culture-to-the countryside activity” and support therural film projections, the Company develops two models of laser light source cinema projectionequipment, which can realize mobile movie screening or fixed screening in vast rural areas, and helps therevitalization of rural culture using advanced laser display technology.
Section VI Significant MattersI. Fulfillment of covenants(I) Covenants made by the actual controller, shareholders, affiliates and acquirer of the Company,
the Company itself and other related parties during the reporting period or the outstandingcovenants made by them in the prior periods
√ Applicable□ N/A
Background of covenant | Covenant Type | Covenantor | Covenant Content | Validity period of covenant | Whether there’s a time limit for the fulfillment of the covenant | Whether the covenant has been strictly fulfilled on time | Reason for failure to fulfill the covenant on time (if applicable) | Action plan if failing to fulfill the covenant on time |
Covenant relating to IPO | Restriction on the sale of shares | Covenant by the controlling shareholder regarding restriction on the sale of shares held by him, voluntary lock-up of such shares, extension of lock-up period, intention to hold and dispose of shares and other issues | Refer to IPO Prospectus | 36 months after completion of the IPO and the specific extended period | Yes | Yes | N/A | N/A |
Covenant relating to IPO | Restriction on the sale of shares | Covenant by the actual controller regarding restriction on the sale of shares held by him, voluntary lock-up of such shares, extension of lock-up period, intention to hold and dispose of shares and other issues | Refer to IPO Prospectus | 36 months after completion of the IPO and the specific extended period, and 6 months after termination of employment with the Company | Yes | Yes | N/A | N/A |
Covenant relating to IPO | Restriction on the sale of shares | Covenant by the concert parties of the actual controller regarding | Refer to IPO Prospectus | 36 months after completion of the IPO and the specific | Yes | Yes | N/A | N/A |
restriction on the sale of shares held by them, voluntary lock-up of such shares, extension of lock-up period, intention to hold and dispose of shares and other issues | extended period | |||||||
Covenant relating to IPO | Restriction on the sale of shares | Covenant by the directors regarding restriction on the sale of shares held by them, voluntary lock-up of such shares, extension of lock-up period, intention to hold and dispose of shares and other issues | Refer to IPO Prospectus | 12 months after completion of the IPO and the specific extended period | Yes | Yes | N/A | N/A |
Covenant relating to IPO | Restriction on the sale of shares | Covenant by the supervisors regarding restriction on the sale of shares held by them, voluntary lock-up of such shares, extension of lock-up period, intention to hold and dispose of shares and other issues | Refer to IPO Prospectus | 12 months after completion of the IPO | Yes | Yes | N/A | N/A |
Covenant relating to IPO | Restriction on the sale of shares | Covenant by HU Fei, as a senior officer and member of key technical staff, regarding restriction on the sale of shares held by him, voluntary lock-up of such shares, | Refer to IPO Prospectus | 12 months after completion of the IPO and the specific extended period, and 6 months after termination of | Yes | Yes | N/A | N/A |
extension of lock-up period, intention to hold and dispose of shares and other issues | employment with the Company | |||||||
Covenant relating to IPO | Restriction on the sale of shares | Covenant by the senior officers including BO Lianming regarding restriction on the sale of shares held by them, voluntary lock-up of such shares, extension of lock-up period, intention to hold and dispose of shares and other issues | Refer to IPO Prospectus | 12 months after completion of the IPO and the specific extended period | Yes | Yes | N/A | N/A |
Covenant relating to IPO | Restriction on the sale of shares | Covenant by the key technical staff including YU Xin regarding restriction on the sale of shares held by them, voluntary lock-up of such shares, extension of lock-up period, intention to hold and dispose of shares and other issues | Refer to IPO Prospectus | 12 months after completion of the IPO and listing of stock, and the specific extended period | Yes | Yes | N/A | N/A |
Covenant relating to IPO | Restriction on the sale of shares | Covenant by the holders of more than 5% shares regarding restriction on the sale of shares held by them, voluntary lock-up of such shares, extension of lock-up period, | Refer to IPO Prospectus | 12 months after completion of the IPO and listing of stock | Yes | Yes | N/A | N/A |
intention to hold and dispose of shares and other issues | ||||||||
Covenant relating to IPO | Restriction on the sale of shares | Covenant by the other shareholders regarding restriction on the sale of shares held by them, voluntary lock-up of such shares, extension of lock-up period, intention to hold and dispose of shares and other issues | Refer to IPO Prospectus | 12 months after completion of the IPO and listing of stock | Yes | Yes | N/A | N/A |
Covenant relating to IPO | Restriction on the sale of shares | Covenant by senior officers and core employees participating in strategic allotment regarding restriction on the sale of shares held by them, voluntary lock-up of such shares, extension of lock-up period, intention to hold and dispose of shares and other issues | Refer to IPO Prospectus | At least 12 months after completion of the IPO and listing of stock | Yes | Yes | N/A | N/A |
Covenant relating to IPO | Others | Issuer’s plan for stabilizing the Company’s stock price and covenant regarding share repurchase measures within three years after the listing | Refer to IPO Prospectus | 36 months after completion of the IPO and listing of stock | Yes | Yes | N/A | N/A |
Covenant relating to IPO | Others | Controlling shareholder and the actual | Refer to IPO Prospectus | 36 months after completion | Yes | Yes | N/A | N/A |
controller’s plan for stabilizing the Company’s stock price and covenant regarding share repurchase measures within three years after the listing | of the IPO and listing of stock | |||||||
Covenant relating to IPO | Others | Directors and senior officers’ plan for stabilizing the Company’s stock price and covenant regarding share repurchase measures within three years after the listing | Refer to IPO Prospectus | 36 months after completion of the IPO and listing of stock | Yes | Yes | N/A | N/A |
Covenant relating to IPO | Others | Issuer’s covenant regarding measures against fraud in IPO | Refer to IPO Prospectus | Permanent | No | Yes | N/A | N/A |
Covenant relating to IPO | Others | Controlling shareholder, actual controller and their concert parties’ covenant regarding measures against fraud in IPO | Refer to IPO Prospectus | Permanent | No | Yes | N/A | N/A |
Covenant relating to IPO | Others | Directors, supervisors and senior officers’ covenant regarding measures against fraud in IPO | Refer to IPO Prospectus | Permanent | No | Yes | N/A | N/A |
Covenant relating to IPO | Others | Issuer’s covenant regarding remedial measures for diluted earnings | Refer to IPO Prospectus | Permanent | No | Yes | N/A | N/A |
in the current period | ||||||||
Covenant relating to IPO | Others | Controlling shareholder, actual controller and their concert parties’ covenant regarding remedial measures for diluted earnings in the current period | Refer to IPO Prospectus | Permanent | No | Yes | N/A | N/A |
Covenant relating to IPO | Others | Directors, supervisors and senior officers’ covenant regarding remedial measures for diluted earnings in the current period | Refer to IPO Prospectus | Permanent | No | Yes | N/A | N/A |
Covenant relating to IPO | Others | Issuer’s covenant regarding profit distribution policy | Refer to IPO Prospectus | Permanent | No | Yes | N/A | N/A |
Covenant relating to IPO | Others | Issuer’s covenant regarding restraint measures and liability for compensation in the event of failure to fulfill its covenants | Refer to IPO Prospectus | Permanent | No | Yes | N/A | N/A |
Covenant relating to IPO | Others | Controlling shareholder, actual controller and their concert parties’ covenant regarding restraint measures and liability for compensation in the event of failure to fulfill their covenants | Refer to IPO Prospectus | Permanent | No | Yes | N/A | N/A |
Covenant relating to IPO | Others | Directors, supervisors and senior officers’ covenant regarding restraint measures and liability for compensation in the event of failure to fulfill their covenants | Refer to IPO Prospectus | Term of office | No | Yes | N/A | N/A |
Covenant relating to IPO | Resolve horizontal competition issues | Controlling shareholder’s covenant on avoiding horizontal competition and regulating and reducing related-party transactions | Refer to IPO Prospectus | Permanent | No | Yes | N/A | N/A |
Covenant relating to IPO | Resolve related-party transaction issues | Actual controller’s covenant on avoiding horizontal competition and regulating and reducing related-party transactions | Refer to IPO Prospectus | Permanent | No | Yes | N/A | N/A |
Covenant related to share incentives | Others | Covenant by the grantee of share incentives regarding information disclosure documents | Refer to the 2019 Restricted Share Incentive Plan (Draft) and 2021 Restricted Share Incentive Plan (Draft) of the Company | Permanent | No | Yes | N/A | N/A |
Others | Company’s covenant on refraining from providing financial assistance | Refer to the 2019 Restricted Share Incentive Plan (Draft) and 2021 Restricted Share | Permanent | No | Yes | N/A | N/A |
IncentivePlan(Draft) oftheCompany
II. Non-operational occupation of funds by the controlling shareholder and its affiliates duringthis report
□ Applicable√ N/A
III. Guarantees in violation of applicable regulations
□ Applicable√ N/A
IV. Audit of semiannual report
□ Applicable√ N/A
V. Changes in matters involved by non-standard audit opinions in the previous annual report andtreatment thereof
□ Applicable√ N/A
VI. Matters relating to bankruptcy and reorganization
□ Applicable√ N/A
VII. Material litigations and arbitrations
√ The Company was involved in material litigations or arbitration during the reporting period
□ The Company was not involved in material litigations or arbitration during the reporting period(I) Litigations and arbitrations already disclosed in interim announcements about which no new information is available
√ Applicable□ N/A
Summary and type of case | Reference |
I. Case for changing the inventor of patent 19-cv-00466-RGD-LRL in the United States District Court for the Eastern District of Virginia The Company brings a suit against Delta in the United States District Court for the Eastern District of Virginia for breach of non-disclosure agreement, wrongful appropriation of the technical solutions actually invented by the Company’s employees LI Yi and HU Fei, and filing for patent application in the United States without authorization, and petitions the court to order that the inventors of the patent-in-suit US 9,024,241 shall be changed from WANG Bo, ZHANG Kesu and HUA Jianhao into LI Yi and HU Fei. | Refer to the Announcement on Litigation disclosed on September 9, 2019 (No. 2019-012). |
II. Cases of dispute over infringement on patents for invention [2019] Jing 73 Min Chu No. 1275, 1276, and 1278 In September 2019, Delta Electronics, Inc. initiated a civil litigation on the ground that the Company and its controlled subsidiary Fengmi infringed the patents for invention ZL201610387831.8, ZL201410249663.7, and ZL201010624724.5, requesting the court to order to stop the acts of infringing the patent rights and the damages for infringement in the amount of RMB 48.03 million. | Refer to the Announcement on Litigation disclosed on September 21, 2019 (No. 2019-014), and the Announcement on Litigation disclosed on June 13, 2020 (No. 2020-022). |
III. (2020) Yue 73 Zhi Min Chu No. 1335-1341, 1353, 1355-1361 In August 2020, the Company initiated a civil litigation on the ground that Delta Electronics (Shanghai) Co., Ltd., Delta Video Display System (Wujiang) Limited, Digital Protection (Beijing) Electronics Technology Co., Ltd. and other entities infringed the patents for invention ZL200880107739.5 and ZL200810065225.X owned by the Company, requesting the court to order to stop the acts of infringing the Company’s patent rights and the damages for infringement in the amount of RMB 80.00 million. | Refer to the Announcement on Litigation Against Delta Electronics (Shanghai) Co., Ltd. and Other Entities disclosed on August 11, 2020 (No. 2020-037). |
During the reporting period: | |||||||||
Plaintiff/ claimant | Defendant /respondent | Party jointly and severally liable | Type of litigation /arbitration | Background | Amount claimed | Whether any provision is recognized and the amount | Status | Result and effect | Enforcement of judgment /award |
Delta Electronics, Inc. | Appotronics Corporation Limited | Futian SPN Projector & Video System Firm of Shenzhen | Infringement on patent for invention | [2019] Yue 73 Zhi Min Chu No. 662, the Plaintiff alleges that it is the owner of the patent for invention ZL201610387831.8 and the Defendant infringed such patent for invention of the Plaintiff and caused economic losses to the Plaintiff. | 1,614.53 | No | RMB 10.00 million released, and in trial of the first instance | In trial of the first instance | |
Delta Electronics, Inc. | Appotronics Corporation Limited | Futian SPN Projector & Video System Firm of Shenzhen | Infringement on patent for invention | [2019] Yue 73 Zhi Min Chu No. 663, the Plaintiff alleges that it is the owner of the patent for invention ZL201310017478.0 and the Defendant infringed such patent for invention of the Plaintiff and caused economic losses to the Plaintiff. | 1,614.53 | No | Pending second trial | Judgment of the first instance: All claims made by the Plaintiff were dismissed. | |
Delta Electronics, Inc. | Appotronics Corporation Limited | Futian SPN Projector & Video System Firm of Shenzhen | Infringement on patent for invention | [2019] Yue 73 Zhi Min Chu No. 664, the Plaintiff alleges that it is the owner of the patent for invention ZL20310625063.1 and the Defendant infringed such patent for invention of the Plaintiff and caused economic losses to the | 1,614.53 | No | Trial of the second instance completed | Ruling of the second instance: Delta was allowed to withdraw the litigation. |
Plaintiff. | |||||||||
Delta Electronics, Inc. | Fengmi (Beijing) Technology Co., Ltd. | Appotronics Corporation Limited | Infringement on patent for invention | [2019] Jing 73 Min Chu No. 1277, the Plaintiff alleges that it is the owner of the patent for invention ZL201310017478.0 and the Defendant infringed such patent for invention of the Plaintiff and caused economic losses to the Plaintiff. | 1,601.00 | No | Pending second trial | Ruling of the first instance: The case of the Plaintiff was rejected. | |
Appotronics Corporation Limited | Delta Electronics (Shanghai) Co., Ltd. | Delta Video Display System (Wujiang) Limited; Shenzhen Super Network Technology Co., Ltd. | Infringement on patent for invention | (2019) Yue 03 Min Chu No. 2943, 2944, 2946, 2948 and 2951, the Plaintiff alleges that Defendant 1, Defendant 2 and Defendant 3 infringed the patent for invention 200810065225.X of the Plaintiff and caused economic losses to the Plaintiff. | 2,800.00 | No | Pending appeal in the second instance | Judgment of the first instance: The Defendant paid the Company RMB 1,651,997.00 as the compensation | |
Appotronics Corporation Limited | Delta Electronics (Shanghai) Co., Ltd. | Delta Video Display System (Wujiang) Limited; Shenzhen Super Network Technology Co., Ltd. | Infringement on patent for invention | (2019) Yue 03 Min Chu No. 2942, 2945, 2947, 2949 and 2950, the Plaintiff alleges that Defendant 1, Defendant 2 and Defendant 3 infringed the patent for invention 200880107739.5 of the Plaintiff and caused economic losses to the Plaintiff. | 2,800.00 | No | The Plaintiff withdrew its case | The court ordered the case to be withdrawn. | |
Appotronics Corporation | Delta Electronics, | Case of dispute over title to | (2019) Yue 03 Min Chu No. 4309, the Plaintiff | 30.00 | No | The Plaintiff | The court ordered the |
Limited | Inc. | patents | petitions the court to declare that the patent ZL201610387831.8 “phosphor color wheel and its applicable light source system” is owned by the Company. | withdrew its case | case to be withdrawn. | ||||
Appotronics Corporation Limited, LI Yi and HU Fei | Delta Electronics, Inc. | ZHANG Kesu, HUA Jianhao and WANG Bo | Case of dispute over title to patents | (2021) Yue 03 Min Chu No. 2295, the Plaintiff petitions the court to declare that the patent ZL201610387831.8 “phosphor color wheel and its applicable light source system” is owned by the Company. | 30.00 | No | In trial of the first instance | ||
Appotronics Hong Kong Limited | GDC Technology Limited (Cayman Islands) | Dispute over performance compensation | 01-021-0003-7526 U.S. case of arbitration GDC BVI failed to achieve the performance covenant for the year 2020, hence triggering the performance compensation provisions. Therefore, GDC Cayman needs to fulfill the performance compensation commitment. In May 2021, the subsidiary Appotronics HK applied with American Arbitration Association for the arbitration against GDC Cayman, requesting | GDC BVI: 46,535,911 ordinary shares or USD 5.6 million in cash | No | Closed | The American Arbitration Association has issued the closing receipt. |
the Respondent to pay theCompany performancecompensation.
(III) Other information
√ Applicable□ N/A
At the end of this reporting period, a total of 14 invalidation petitions have been raised against theCompany’s patent for invention ZL200880107739.5, and a total of 9 invalidation petitions have beenraised against the Company’s patent for invention ZL200810065225.X. These 23 cases have been decidedby the China National Intellectual Property Administration, with the patents sustained, or withdrawn bythe petitioner. Only 1 invalidation case with the Company as a patentee and WANG Lihua as a petitioneris in trial at the China National Intellectual Property Administration, and the number and name of thepatent involved in the case is ZL201110086731.9 and High-brightness Laser Method and Light-emittingDevice based on Light Wavelength Conversion.At the end of the reporting period, there was 1 invalidation case where the Company acted as apetitioner. The case is in trial at the China National Intellectual Property Administration, and is related tothe invalidation petition with Delta Electronics, Inc. as patentee.
VIII. Penalties imposed on the listed company and its directors, supervisors, senior officers,
controlling shareholder, actual controller for suspected violation of laws and regulationsand rectification of the relevant violations
□ Applicable√ N/A
IX. Credit standing of the Company and its controlling shareholder and actual controller
during the reporting period
□ Applicable√ N/A
X. Material related-party transactions(I) Related-party transactions in connection with day-to-day operation
1. Matters already disclosed in the interim announcements about which no new information isavailable
√ Applicable□ N/A
Summary | Reference |
The Company expects to engage in routine related-party transactions with China Film Equipment Co., Ltd. and its affiliates, Xiaomi Communications Technologies Co., Ltd. and its affiliates, Beijing DonView Education Technology Co., Ltd. and its affiliates, CINIONIC, Shenzhen YLX Technology Development Co., Ltd., GDC Technology Limited and its affiliates, and WeCast Technology Corp. and its affiliates for a total expected amount of RMB 1.56195 billion in 2021. | Please refer to the Announcement No. 2021-003 “Announcement on expected routine related-party transactions in 2021” and the Announcement No. 2021-031 “Announcement on increase in expected quota of routine related-party transactions in 2021” issued by the Company on www.sse.com.cn and the designated media for information disclosure on February 10, 2021 and April 24, 2021. |
(II) Related-party transactions involving acquisition or sale of assets or equities
1. Matters already disclosed in the interim announcements about which no new information isavailable
√ Applicable□ N/A
Summary | Reference |
The controlled subsidiary Fengmi (Chongqing) Innovative Technology Co., Ltd. intends to increase capital of USD 4 million to the wholly-owned subsidiary Formovie Limited, which will be used for subscribing for 51% of equity in WeCast Technology Corp. After completion of this subscription, WeCast will be included in the scope of the consolidated financial statements of the Company. LI Yi, the actual controller and the Chairman of the Company, acts as a director of WeCast, hence this subscription constitutes a related-party transaction according to the provisions. | Please refer to the Announcement No. 2021-018 “Announcement on increase by Fengmi of capital to the wholly-owned subsidiary and subscription for 51% of equity of WeCast Technology Corp. and on related-party transactions” issued by the Company on www.sse.com.cn and the designated media for information disclosure on March 27, 2021. |
(V) Financial business between the Company and its affiliated financial companies, or between theCompany’s controlled financial companies and affiliates
□ Applicable√ N/A
(VI) Material related-party transactions
□ Applicable√ N/A
(VII) Others
□ Applicable√ N/A
XI. Material contracts and performance thereof1 Trusteeship, contracting and lease
√ Applicable□ N/A
(1) Trusteeship
□ Applicable√ N/A
(2) Contracting
□ Applicable√ N/A
(3) Lease
√ Applicable□ N/A
Unit: 0’000 Currency: RMB
Name of lessor | Name of lessee | Leased assets | Amount of leased assets | Start date | End date | Lease income | Basis for determining lease income | Impact of lease income on the Company | Related-party transaction or not | Related -party relation |
Shenzhen Meisheng Industry Co., Ltd. | Appotronics Corporation Limited | Office, R&D, factory, employee dormitory | 1,237.67 | December 1, 2018 | November 30, 2022 | / | / | / | No | None |
2 Material guarantees that have been performed or have not yet been fully performed during the report period
√ Applicable□ N/A
Unit: 0’000 Currency: RMB
The Company’s guarantees to external parties (excluding those to subsidiaries) | ||||||||||||||||||||||||||||
Guarantor | Relationship between the guarantor and the listed company | Obligor | Guaranteed amount | Commencement date of guarantee (signing date of agreement) | Guarantee start date | Guarantee expiry date | Type of guarantee | Principal debt | Collateral (if any) | Whether the obligation guaranteed has been discharged | Whether the obligation guaranteed has become overdue | Amount of the overdue obligation guaranteed | Counter guarantee | Whether a guarantee for a related party | Related relationship | |||||||||||||
Total amount of guarantees provided during the reporting period (excluding those provided for the subsidiaries) | 0 | |||||||||||||||||||||||||||
Balance of guarantees at the end of the reporting period (excluding those provided for the subsidiaries) (A) | 0 | |||||||||||||||||||||||||||
Guarantees provided by the Company or its subsidiaries for the subsidiaries of the Company | ||||||||||||||||||||||||||||
Guarantor | Relationship between the guarantor and the listed company | Obligor | Relationship between the obligor and the listed company | Guaranteed amount | Commencement date of guarantee (signing date of agreement) | Inception date of guarantee | Expiry date of guarantee | Type of guarantee | Whether the obligation guaranteed has been discharged | Whether the obligation guaranteed has become overdue | Amount of the overdue obligation guaranteed | Whether there’s a counter guarantee | ||||||||||||||||
Appotronics Corporation Limited | Headquarters | CINEAPPO Laser Cinema Technology (Beijing) Co., Ltd. | Controlled subsidiary | 70,000 | 2020-5-31 | 2020-5-31 | Three years after the due date for the obligations under the master contract | Joint and several liability | No | No | No | |||||||||||||||||
Appotronics Corporation Limited | Headquarters | Fengmi (Beijing) | Controlled subsidiary | 16,500 | 2019-10-21 | 2019-10-21 | Two years after the due date | Joint and several liability | No | No | No |
Technology Co., Ltd. | for the obligations | ||||||||||||
Appotronics Corporation Limited | Headquarters | Fengmi (Beijing) Technology Co., Ltd. | Controlled subsidiary | 10,000 | 2020-12-1 | Initial utilization date or actual date of utilization under the financing letter | Two years after the latest due date of the loans under the financing letter | Joint and several liability | No | No | No | ||
Appotronics Corporation Limited | Headquarters | Fengmi (Beijing) Technology Co., Ltd. | Controlled subsidiary | 10,000 | 2020-7-1 | 2020-7-1 | Three years after the due date for the obligations under the master contract | Joint and several liability | No | No | No | ||
Appotronics Corporation Limited | Headquarters | CINEAPPO Laser Cinema Technology (Beijing) Co., Ltd. | Controlled subsidiary | 23,000 | 2021-1-26 | 2021-1-26 | Two years after the last instalment of payment under this single contract expires | Joint and several liability | No | No | No | ||
Appotronics Corporation Limited | Headquarters | Fengmi (Beijing) Technology Co., Ltd. | Controlled subsidiary | 5,500 | 2021-4-2 | 2021-4-2 | Two years after the due date for the obligations | Joint and several liability | No | No | No | ||
Total amount of guarantees provided for the subsidiaries during the reporting period | 39,852 |
Balance of guarantees provided for the subsidiaries at the end of the reporting period (B) | 41,586 |
Total amount of guarantees provided by the Company (including those provided for the subsidiaries) | |
Total amount guaranteed (A+B) | 41,586 |
Proportion of total amount guaranteed to the net assets of the Company (%) | 17.89 |
Including: | |
Total amount of guarantees provided for the shareholders, actual controller and their affiliates (C) | 0 |
Total amount of debt guarantees directly or indirectly provided for the obligors whose equity-debt ratio exceeds 70% (D) | 20,738 |
Total amount guaranteed in excess of 50% of the net assets of the Company (E) | 0 |
Total amount guaranteed (C+D+E) | 20,738 |
Explanation about outstanding guarantees for which the Company may assume joint and several liability | N/A |
Explanation about guarantees | N/A |
3 Other material contracts
□ Applicable√ N/A
XII. Use of offering proceeds
√ Applicable□ N/A
Unit: 0’000 Currency: RMB
Total offering proceeds | 106,247.08 | Total offering proceeds used in this year | 4,587.51 | |||||||||
Total offering proceeds with the purpose changed | N/A | Cumulative total offering proceeds used | 49,810.75 | |||||||||
Proportion of total offering proceeds with the purpose changed (%) | N/A | |||||||||||
Investment project promised | Changed project, including partial change (if any) | Total offering proceeds committed | Post-adjustment total investment | Committed investment amount by the end of the period① | Amount invested in this year | Cumulative amount invested by the end of the period② | Difference between the cumulative amount invested and the committed investment amount by the end of the period ③=②-① | Investment progress by the end of the period (%) ④=②/① | Date for the project to reach the working condition for its intended use | Benefits realized in the current year | Whether to obtain expected benefits | Material changes in the project feasibility |
R&D and industrialization of new generation of laser display products | No change | 31,300.00 | 31,300.00 | 31,300.00 | 3,302.59 | 12,174.06 | -19,125.94 | 38.89 | March 2022 | N/A | N/A | No |
R&D center at the head office of Appotronics | No change | 28,400.00 | 28,400.00 | 28,400.00 | 1,013.90 | 2,321.00 | -26,079.00 | 8.17 | August 2022 | N/A | N/A | No |
Information system upgrade and building | No change | 7,000.00 | 7,000.00 | 7,000.00 | 271.02 | 1,776.19 | -5,223.81 | 25.37 | March 2022 | N/A | N/A | No |
Supplementary working capital | No change | 33,300.00 | 33,300.00 | 33,300.00 | 0 | 33,539.50 | 100.72 | N/A | N/A | N/A | No | |
Total | - | 100,000.00 | 100,000.00 | 100,000.00 | 4,587.51 | 49,810.75 | -50,428.75 | - | - | - | - | |
Reason for not reaching the planned progress (by specific investment project) | During the implementation of the R&D and industrialization of new generation of laser display products, based on the principle of ensuring quality, controlling costs, and reducing risks, the Company acted more diligently in the specific planning and use of funds for the projects, which delayed the overall implementation progress expected; the headquarters building of the Company is still in construction, as a result, the R&D center at the head office and the information system upgrade and building cannot be implemented in a large scale. As of the date when this Report is released, the Company expects that the aforesaid three proceeds-invested projects will not reach the working condition for its intended use on the original scheduled date. Subsequently, the Company will evaluate the progress of the project according to the actual situation and request the Board of Directors to review the adjustments to the proceed-invested projects. | |||||||||||
Description of material changes in project feasibility | No material change | |||||||||||
Early investment and replacement of offering proceeds | On July 29, 2019, the Proposal on Replacing Early Funds Invested with Offering Proceeds was reviewed and passed at the 16th meeting of the first Board of Directors, approving the Company to replace the invested funds of RMB 18.9584 million as of July 19, 2019 with the offering proceeds, and replace the offering expenses paid in the amount of RMB 3.1056 million with the offering proceeds. The matters above have been assured by Pan-China Certified Public Accountants (Special General Partnership), which issued the Assurance Report on Replacement of Funds with Offering Proceeds by Appotronics Corporation Limited (Tian Jian Shen [2019] No. 7-393). | |||||||||||
Temporarily supplement the working capital with idle offering proceeds | None | |||||||||||
Cash management of idle offering proceeds, and investment in relevant products | On July 21, 2020, the 23rd meeting of the first Board of Directors of the Company reviewed and approved the Proposal on the Cash Management of Temporarily Idle Offering Proceeds, agreeing that the Company would conduct cash management of temporarily idle offering proceeds up to RMB 670 million, provided that it shall ensure that the normal progress of the Company’s investment plan of proceeds would not be affected, and agreeing that the Company would use these proceeds to purchase investment products with high security, good liquidity and guaranteed principal (including but not limited to structural deposits, agreed deposits, call deposits, time deposits, large certificates of deposit, income certificates), among them, the total purchase amount of income certificates shall not exceed RMB 200 million and the service life shall not exceed 12 months; and the valid period shall be 12 months from the date of review and approval by the Board of Directors and the Board of Supervisors. |
Permanently supplement working capital or repay bank loans with excess offering proceeds | None |
Balance of offering proceeds and reasons thereof | N/A |
Other use of offering proceeds | None |
XIII. Other significant matters
□ Applicable√ N/A
Section VII Changes in Shares and ShareholdersI. Changes in ordinary shares(I) Statement of changes in ordinary shares
1. Statement of changes in ordinary shares
During the reporting period, there is no change in total ordinary shares and share capital structure of theCompany.
2. Explanation about changes in ordinary shares
□ Applicable√ N/A
3. Effect of the changes in shares on the earnings per share, net assets per share and otherfinancial indicators for the duration after the reporting period to the disclosure date of thesemiannual report (if any)
□ Applicable√ N/A
4. Other information disclosed as the Company deems necessary or required by the securitiesregulatory authority
□ Applicable√ N/A
(II) Changes in non-tradable shares
□ Applicable√ N/A
II. Shareholders(I) Total number of shareholders:
Total number of shareholders of ordinary shares as of the end of the reporting period | 11,551 |
Total number of shareholders of preferred shares whose voting right has been restituted as of the end of the reporting period | 0 |
Total number of shareholders of shares with special voting rights as of the end of the reporting period | 0 |
Shares held by top 10 shareholders | |||||||
Shareholder (Full name) | Change during the reporting period | Balance of shares held as at the | Percentage (%) | Number of non-tradable | Number of non-tradable shares held, | Shares pledged or frozen | Shareholder nature |
end of the reporting period | shares held | including the shares lent out under the refinancing arrangement | Share status | Number | ||||
Shenzhen Appotronics Holdings Limited | 0 | 79,762,679 | 17.62 | 79,762,679 | 79,762,679 | None | 0 | Domestic non-stated owned corporation |
SAIF IV Hong Kong (China Investments) Limited | -20,410,779 | 33,502,956 | 7.40 | 0 | 0 | None | 0 | Foreign corporation |
CITIC PE Investment (Hong Kong) 2016 Limited | -7,060,800 | 30,352,232 | 6.70 | 0 | 0 | None | 0 | Foreign corporation |
Shenzhen Yuanshi Laser Industrial Investment Consulting Partnership (LP) | 0 | 24,139,500 | 5.33 | 24,139,500 | 24,139,500 | None | 0 | Domestic non-stated owned corporation |
Nantong Strait Appotronics Investment Partnership (LP) | -1,984,408 | 23,080,329 | 5.10 | 0 | 0 | None | 0 | Domestic non-stated owned corporation |
Shenzhen Appotronics Daye Investment Partnership (LP) | 0 | 20,430,250 | 4.51 | 20,430,250 | 20,430,250 | None | 0 | Domestic non-stated owned corporation |
Shenzhen Appotronics Hongye Investment Partnership (LP) | 0 | 15,662,374 | 3.46 | 15,662,374 | 15,662,374 | None | 0 | Domestic non-stated owned corporation |
GREEN FUTURE HOLDINGS LIMITED | -3,770,272 | 12,734,246 | 2.81 | 0 | 0 | None | 0 | Foreign corporation |
Shenzhen Jinleijing Investment Limited Partnership (LP) | 0 | 12,353,106 | 2.73 | 12,353,106 | 12,353,106 | None | 0 | Domestic non-stated owned corporation |
Shenzhen Appotronics Chengye Consulting Partnership (LP) | 0 | 10,394,846 | 2.30 | 10,394,846 | 10,394,846 | None | 0 | Domestic non-stated owned corporation | |
Shares held by top 10 holders of tradable shares | |||||||||
Shareholder | Number of tradable shares held | Type and number of shares | |||||||
Category | Number | ||||||||
SAIF IV Hong Kong (China Investments) Limited | 33,502,956 | RMB-denominated ordinary share | 33,502,956 | ||||||
CITIC PE Investment (Hong Kong) 2016 Limited | 30,352,232 | RMB-denominated ordinary share | 30,352,232 | ||||||
Nantong Strait Appotronics Investment Partnership (LP) | 23,080,329 | RMB-denominated ordinary share | 23,080,329 | ||||||
GREEN FUTURE HOLDINGS LIMITED | 12,734,246 | RMB-denominated ordinary share | 12,734,246 | ||||||
Shenzhen Guochuang Chenggu Capital Management Co., Ltd. - Shenzhen Chengguhui Equity Investment Partnership (LP) | 8,114,369 | RMB-denominated ordinary share | 8,114,369 | ||||||
Smart Team Investment Limited | 6,799,660 | RMB-denominated ordinary share | 6,799,660 | ||||||
JPMORGAN CHASE BANK, NATIONAL ASSOCIATION | 5,930,409 | RMB-denominated ordinary share | 5,930,409 | ||||||
Shenzhen Liansong Capital Management Partnership (LP) | 5,833,817 | RMB-denominated ordinary share | 5,833,817 | ||||||
ICBC-AXA Life Co., Ltd. - Traditional 2 | 4,900,000 | RMB-denominated ordinary share | 4,900,000 | ||||||
China Merchants Bank Co., Ltd. - One-year ABC Huili Strategic Income Hybrid Securities Investment Fund | 3,778,794 | RMB-denominated ordinary share | 3,778,794 | ||||||
Description of special repurchase shareholders among top 10 shareholders | N/A | ||||||||
Description of entrusting voting right, entrusted voting right and waiver of voting right of the shareholder above | N/A | ||||||||
Affiliates or concert parties among the shareholders stated above | 1. As of June 30, 2021, among the Company’s top 10 shareholders, Appotronics Holdings, Yuanshi, Appotronics Daye, Appotronics Hongye and Jinleijing are concert parties. The Company has not received any notice about affiliates or concert parties among other shareholders stated above. 2. The Company is not aware whether there are affiliates or concert parties as defined in the Administrative Measures for the Acquisition of the Listed Companies among other shareholders. | ||||||||
Holders of preferred shares whose voting right has been restituted and the number of shares held by them | N/A |
Top 10 holders of non-tradable shares and lock-up period
√ Applicable□ N/A
Unit: Share
No. | Holder of non-tradable shares | Number of non-tradable shares held | Unlocking of non-tradable shares | Lock-up period | |
Unlock date | Number of shares newly unlocked | ||||
1 | Shenzhen Appotronics Holdings Limited | 79,762,679 | July 22, 2022 | 0 | 36 months after the listing date |
2 | Shenzhen Yuanshi Laser Industrial Investment Consulting Partnership (LP) | 24,139,500 | July 22, 2022 | 0 | 36 months after the listing date |
3 | Shenzhen Appotronics Daye Investment Partnership (LP) | 20,430,250 | July 22, 2022 | 0 | 36 months after the listing date |
4 | Shenzhen Appotronics Hongye Investment Partnership (LP) | 15,662,374 | July 22, 2022 | 0 | 36 months after the listing date |
5 | Shenzhen Jinleijing Investment Limited Partnership (LP) | 12,353,106 | July 22, 2022 | 0 | 36 months after the listing date |
6 | Shenzhen Appotronics Chengye Consulting Partnership (LP) | 10,394,846 | July 22, 2022 | 0 | 36 months after the listing date |
7 | BLACKPINE Investment Corp. Limited | 3,994,011 | July 22, 2022 | 0 | 36 months after the listing date |
8 | Huatai Venture Capital Investment Co., Ltd. | 2,720,000 | July 22, 2021 | 0 | 24 months after the listing date |
Affiliates or concert parties among the shareholders stated above | As of June 30, 2021, among the shareholders of the restricted shares above, Appotronics Holdings, Yuanshi, Appotronics Daye, Appotronics Hongye, Jinleijing, Appotronics Chengye, and BLACKPINE Investment Corp. Limited are concert parties. The Company has not received any notice about affiliates or concert parties among other shareholders stated above. |
(IV) Strategic investors or general corporations that become top 10 shareholders as a result ofallotment of new shares/depository receipts
□ Applicable√ N/A
III. Directors, supervisors, senior officers and key technical staff(I) Changes in shareholding of current directors, supervisors, senior officers and key technicalstaff and the former directors, supervisors, senior officers and key technical staff who left theCompany during the reporting period
□ Applicable√ N/A
Other information
□ Applicable√ N/A
(II) Share incentives granted to directors, supervisors, senior officers and key technical staff duringthe reporting period
1.Share options
□ Applicable√ N/A
2.Type I restricted shares
□ Applicable√ N/A
3.Type II restricted shares
√ Applicable□ N/A
Unit: Share
Name | Title | Number of restricted shares already granted as at the beginning of the reporting period | Number of restricted shares granted during the reporting period | Number of restricted shares that could be vested in the reporting period | Number of restricted shares that have been vested in the reporting period | Number of restricted shares already granted as of the end of the reporting period |
LI Yi | Chairman of the Board of Directors & key technical staff | 0 | 3,500,000 | 0 | 0 | 3,500,000 |
BO Lianming | Director & General Manager | 100,000 | 3,500,000 | 30,000 | 30,000 | 3,570,000 |
WANG Yingxia | Director & CFO | 51,400 | 150,000 | 15,420 | 15,420 | 185,980 |
YAN Li | Board Secretary | 150,000 | 350,000 | 15,000 | 15,000 | 485,000 |
HU Fei | Key technical staff | 100,000 | 350,000 | 30,000 | 30,000 | 420,000 |
YU Xin | Key technical staff | 50,000 | 200,000 | 15,000 | 15,000 | 235,000 |
WANG Lin | Key technical staff | 50,000 | 200,000 | 15,000 | 15,000 | 235,000 |
WANG Zeqin | Key technical staff | 40,000 | 200,000 | 12,000 | 12,000 | 228,000 |
GUO Zuqiang | Key technical staff | 40,000 | 200,000 | 12,000 | 12,000 | 228,000 |
Total | / | 581,400 | 8,650,000 | 144,420 | 144,420 | 9,086,980 |
II. Financial statements
Consolidated Balance Sheet
At June 30, 2021Prepared by: Appotronics Corporation Limited
Unit: Yuan Currency: RMB
Item | Note | At June 30, 2021 | At December 31, 2020 |
Current Assets: | |||
Cash and bank balances | VII. 1 | 923,880,253.21 | 1,037,760,573.27 |
Balances with clearing agencies | |||
Placements with banks and other financial institutions | |||
Held-for-trading financial assets | VII. 2 | 457,982,988.00 | 114,000,000.00 |
Derivative financial assets | |||
Notes receivable | VII. 4 | 3,798,593.29 | 3,726,328.91 |
Accounts receivable | VII. 5 | 168,553,862.09 | 341,660,832.43 |
Receivables financing | VII. 6 | 1,214,306.00 | 11,959,000.00 |
Prepayments | VII. 7 | 83,781,122.54 | 47,447,601.43 |
Premiums receivable | |||
Amounts receivable under reinsurance contracts | |||
Reinsurer's share of insurance contract reserves | |||
Other receivables | VII. 8 | 10,381,304.06 | 12,534,062.15 |
Including: Interest receivable | |||
Dividends receivable | |||
Financial assets purchased under resale agreements | |||
Inventories | VII. 9 | 641,578,029.45 | 418,812,140.80 |
Contract assets | VII. 10 | 2,388,492.32 | 3,744,655.50 |
Held-for-sale assets | |||
Non-current assets due within one year | |||
Other current assets | VII. 13 | 49,693,022.76 | 13,002,195.46 |
Total Current Assets | 2,343,251,973.72 | 2,004,647,389.95 | |
Non-current Assets: | |||
Loans and advances | |||
Debt investments | |||
Other debt investments | |||
Long-term receivables | VII. 16 | 13,495,945.96 | 13,196,087.78 |
Long-term equity investments | VII. 17 | 265,900,452.67 | 262,744,772.48 |
Other equity instrument investments | VII. 18 | 11,975,419.38 | 11,975,419.38 |
Other non-current financial assets | |||
Investment properties | |||
Fixed assets | VII. 21 | 448,824,286.12 | 447,571,328.91 |
Construction in progress | VII. 22 | 88,984,744.00 | 51,576,850.72 |
Bearer biological assets | |||
Oil and gas assets | |||
Use right assets | VII. 25 | 36,066,334.54 |
Intangible assets | VII. 26 | 313,157,523.55 | 320,488,235.60 |
Development expenditure | |||
Goodwill | |||
Long-term prepaid expenses | VII. 29 | 9,976,802.17 | 11,572,346.79 |
Deferred tax asset | VII. 30 | 103,610,372.30 | 96,132,114.02 |
Other non-current assets | VII. 31 | 15,891,524.06 | 6,299,781.06 |
Total Non-current Assets | 1,307,883,404.75 | 1,221,556,936.74 | |
Total assets | 3,651,135,378.47 | 3,226,204,326.69 | |
Current Liabilities: | |||
Short-term borrowings | VII. 32 | 28,097,875.42 | 88,778,852.86 |
Loans from the central bank | |||
Taking from banks and other financial institutions | |||
Held-for-trading financial liabilities | |||
Derivative financial liabilities | |||
Notes payable | VII. 35 | 180,257,484.74 | 116,822,674.67 |
Accounts payable | VII. 36 | 272,203,766.10 | 226,494,815.90 |
Receipts in advance | VII. 37 | 141,944,076.60 | 153,258,189.88 |
Contract liabilities | VII. 38 | 40,048,659.77 | 31,518,312.59 |
Financial assets sold under repurchase agreements | |||
Customer deposits and deposits from banks and other financial institutions | |||
Funds from securities trading agency | |||
Funds from underwriting securities agency | |||
Employee benefits payable | VII. 39 | 33,220,367.56 | 46,105,566.15 |
Taxes payable | VII. 40 | 43,934,753.55 | 19,871,846.94 |
Other payables | VII. 41 | 255,483,098.01 | 59,848,053.83 |
Including: Interest payable | |||
Dividends payable | VII. 41 | 3,851,339.04 | |
Fees and commissions payable | |||
Amounts payable under reinsurance contracts | |||
Held-for-sale liabilities | |||
Non-current liabilities due within one year | VII. 43 | 146,220,719.05 | 181,417,412.46 |
Other current liabilities | VII. 44 | 3,391,139.20 | 3,045,831.07 |
Total Current Liabilities | 1,144,801,940.00 | 927,161,556.35 | |
Non-current Liabilities: | |||
Insurance contract reserves | |||
Long-term borrowings | VII. 45 | 102,690,487.26 | 64,845,281.53 |
Bonds payable | |||
Including: Preferred shares | |||
Perpetual bonds | |||
Leasing liabilities | VII. 47 | 18,391,443.49 | |
Long-term accounts payable | VII. 48 | 3,230,050.00 | 3,262,450.00 |
Long-term employee benefits payable |
Provisions | VII. 50 | 30,519,379.89 | 28,799,354.65 |
Deferred income | VII. 51 | 16,959,926.67 | 16,723,257.15 |
Deferred tax liabilities | |||
Other non-current liabilities | |||
Total Non-current Liabilities | 171,791,287.31 | 113,630,343.33 | |
Total Liabilities | 1,316,593,227.31 | 1,040,791,899.68 | |
Owners' (or Shareholders') Equity: | |||
Paid-in capital (or share capital) | VII. 53 | 452,756,901.00 | 452,756,901.00 |
Other equity instruments | |||
Including: Preferred shares | |||
Perpetual bonds | |||
Capital reserve | VII. 55 | 1,360,104,339.28 | 1,249,020,991.15 |
Less: Treasury shares | |||
Other comprehensive income | VII. 57 | -7,977,590.58 | -3,214,291.93 |
Special reserve | |||
Surplus reserve | VII. 59 | 35,242,179.57 | 35,242,179.57 |
General risk reserve | |||
Retained profits | VII. 60 | 484,350,453.52 | 357,793,891.96 |
Total owners’ (or shareholders’) equity attributable to owners of the Parent Company | 2,324,476,282.79 | 2,091,599,671.75 | |
Minority interests | 10,065,868.37 | 93,812,755.26 | |
Total Owners’ (or Shareholders’) Equity | 2,334,542,151.16 | 2,185,412,427.01 | |
Total Liabilities and Owners’(or Shareholders’) Equity | 3,651,135,378.47 | 3,226,204,326.69 |
Item | Note | At June 30, 2021 | At December 31, 2020 |
Current Assets: | |||
Cash and bank balances | 600,116,631.85 | 709,932,686.71 | |
Held-for-trading financial assets | 320,000,000.00 | 114,000,000.00 | |
Derivative financial assets | |||
Notes receivable | 2,584,493.29 | 2,314,628.91 | |
Accounts receivable | XVII. 1 | 530,618,487.97 | 567,539,506.79 |
Receivables financing | 1,214,306.00 | 100,000.00 | |
Prepayments | 16,858,205.85 | 11,001,439.23 | |
Other receivables | XVII. 2 | 42,129,668.23 | 71,654,117.57 |
Including: Interest receivable |
Dividends receivable | |||
Inventories | 277,455,657.71 | 169,022,971.44 | |
Contract assets | 2,372,162.32 | 3,720,160.50 | |
Held-for-sale assets | |||
Non-current assets due within one year | |||
Other current assets | 8,623,008.03 | 1,297,388.01 | |
Total Current Assets | 1,801,972,621.25 | 1,650,582,899.16 | |
Non-current Assets: | |||
Debt investments | |||
Other debt investments | |||
Long-term receivables | 13,495,945.96 | 13,196,087.78 | |
Long-term equity investments | XVII. 3 | 433,116,205.54 | 421,648,284.99 |
Other equity instrument investments | 7,075,419.38 | 7,075,419.38 | |
Other non-current financial assets | |||
Investment properties | |||
Fixed assets | 52,669,261.18 | 57,409,189.33 | |
Construction in progress | 65,509,824.53 | 37,982,329.74 | |
Bearer biological assets | |||
Oil and gas assets | |||
Use right assets | 23,267,911.80 | ||
Intangible assets | 312,406,262.35 | 319,438,893.42 | |
Development expenditure | |||
Goodwill | |||
Long-term prepaid expenses | 6,989,278.66 | 9,562,162.36 | |
Deferred tax asset | 10,135,929.15 | 6,680,188.67 | |
Other non-current assets | 8,005,743.64 | 5,411,561.28 | |
Total Non-current Assets | 932,671,782.19 | 878,404,116.95 | |
Total assets | 2,734,644,403.44 | 2,528,987,016.11 | |
Current Liabilities: | |||
Short-term borrowings | 11,410,560.27 | ||
Held-for-trading financial liabilities | |||
Derivative financial liabilities | |||
Notes payable | 34,224,409.65 | 32,313,678.21 | |
Accounts payable | 298,541,730.34 | 210,885,240.65 | |
Receipts in advance | 82,567.18 | 2,688,210.54 | |
Contract liabilities | 28,387,196.86 | 20,609,190.34 | |
Employee benefits payable | 21,977,734.49 | 28,514,763.09 | |
Taxes payable | 12,789,462.50 | 5,830,858.89 | |
Other payables | 43,426,696.22 | 23,058,804.83 | |
Including: Interest payable | |||
Dividends payable | 3,851,339.04 | ||
Held-for-sale liabilities | |||
Non-current liabilities due within one year | 15,704,161.94 | 1,001,024.66 | |
Other current liabilities | 2,027,052.47 | 1,918,391.60 | |
Total Current Liabilities | 457,161,011.65 | 338,230,723.08 | |
Non-current Liabilities: | |||
Long-term borrowings | 32,021,877.44 | 29,029,715.07 |
Bonds payable | |||
Including: Preferred shares | |||
Perpetual bonds | |||
Leasing liabilities | 10,438,482.41 | ||
Long-term accounts payable | 3,230,050.00 | 3,262,450.00 | |
Long-term employee benefits payable | |||
Provisions | 15,648,843.74 | 16,345,891.60 | |
Deferred income | 15,085,473.02 | 14,450,411.10 | |
Deferred tax liabilities | |||
Other non-current liabilities | |||
Total Non-current Liabilities | 76,424,726.61 | 63,088,467.77 | |
Total Liabilities | 533,585,738.26 | 401,319,190.85 | |
Owners' (or Shareholders') Equity: | |||
Paid-in capital (or share capital) | 452,756,901.00 | 452,756,901.00 | |
Other equity instruments | |||
Including: Preferred shares | |||
Perpetual bonds | |||
Capital reserve | 1,370,268,310.79 | 1,351,261,718.84 | |
Less: Treasury shares | |||
Other comprehensive income | |||
Special reserve | |||
Surplus reserve | 33,964,638.84 | 33,964,638.84 | |
Retained profits | 344,068,814.55 | 289,684,566.58 | |
Total Owners’ (or Shareholders’) Equity | 2,201,058,665.18 | 2,127,667,825.26 | |
Total Liabilities and Owners’(or Shareholders’) Equity | 2,734,644,403.44 | 2,528,987,016.11 |
Item | Note | Half year of 2021 | Half year of 2020 |
I. Total operating income | 1,104,689,243.59 | 716,025,207.34 | |
Including: Operating income | VII. 61 | 1,104,689,243.59 | 716,025,207.34 |
Interest income | |||
Premiums earned | |||
Fee and commission income | |||
II. Total operating costs | 998,250,659.71 | 756,098,193.88 | |
Including: Operating costs | VII. 61 | 723,612,305.19 | 529,787,789.94 |
Interest expenses | |||
Fee and commission expenses | |||
Surrenders |
Claims and policyholder benefits (net of amounts recoverable from reinsurers) | |||
Net withdrawal of insurance contract reserves | |||
Insurance policyholder dividends | |||
Expenses for reinsurance accepted | |||
Taxes and levies | VII. 62 | 4,331,138.81 | 2,329,710.56 |
Sales expenses | VII. 63 | 89,686,195.83 | 50,833,894.50 |
Administration expenses | VII. 64 | 83,960,516.92 | 77,813,657.09 |
R&D expenses | VII. 65 | 95,128,483.66 | 87,295,450.75 |
Financial expenses | VII. 66 | 1,532,019.30 | 8,037,691.04 |
Including: Interest expense | 11,013,330.17 | 11,612,825.87 | |
Interest income | 10,868,184.51 | 4,618,971.33 | |
Add: Other income | VII. 67 | 54,890,296.70 | 32,922,034.97 |
Investment income (loss is indicated by “-”) | VII. 68 | 9,128,665.03 | 11,726,688.51 |
Including: Income from investments in associates and joint ventures | 6,982,738.64 | 901,894.80 | |
Gains from derecognition of financial assets at amortized assets (loss is indicated by “-”) | |||
Foreign exchange gains (loss is indicated by “-”) | |||
Gains from net exposure hedges (loss is indicated by “-”) | |||
Gains from changes in fair values (loss is indicated by “-”) | VII. 70 | 38,175,900.00 | |
Losses of credit impairment (loss is indicated by “-”) | VII. 71 | 9,407,031.23 | 2,170,106.96 |
Impairment losses of assets (loss is indicated by “-”) | VII. 72 | -16,581,239.34 | -12,109,681.09 |
Gains from disposal of assets (loss is indicated by “-”) | VII. 73 | 2,806,008.82 | 149,620.91 |
III. Operating profit (loss is indicated by “-”) | 204,265,246.32 | -5,214,216.28 | |
Add: Non-operating income | VII. 74 | 22,240,680.14 | 270,615.48 |
Less: Non-operating expenses | VII. 75 | 405,501.61 | 740,701.95 |
IV. Total profits (total losses are indicated by “-”) | 226,100,424.85 | -5,684,302.75 | |
Less: Income tax expense | VII. 76 | 46,305,525.16 | 2,693,941.42 |
V. Net profits (net losses are indicated by “-”) | 179,794,899.69 | -8,378,244.17 | |
(I) Categorized by the continuity of operation | |||
1. Net profits from continuing operations (net losses are indicated by "-") | 179,794,899.69 | -8,378,244.17 | |
2. Net profits from discontinued operations (net losses are indicated by “-”) | |||
(II) Categorized by the ownership |
1. Net profits attributable to shareholders of the Parent Company (net losses are indicated by "-") | 151,413,920.79 | 14,327,442.96 | |
2. Profits or losses attributable to minority shareholders (net losses are indicated by “-”) | 28,380,978.90 | -22,705,687.13 | |
VI. Other comprehensive income, net of tax | -4,739,767.89 | 1,039,650.57 | |
(I) Other comprehensive income that can be attributable to owners of the Parent Company, net of tax | -4,763,298.65 | 1,013,815.20 | |
1. Other comprehensive income that cannot be reclassified subsequently to profit or loss | |||
(1) Changes from remeasurement of defined benefit plans | |||
(2) Other comprehensive income that cannot be reclassified to profit or loss under the equity method | |||
(3) Changes in fair value of investments in other equity instruments | |||
(4) Changes in fair value of enterprises’ own credit risks | |||
2. Other comprehensive income that will be reclassified to profit or loss | -4,763,298.65 | 1,013,815.20 | |
(1) Other comprehensive income that will be reclassified to profit or loss under the equity method | -135,706.31 | ||
(2) Changes in fair value of other debt investments | |||
(3) Amount of financial assets reclassified to other comprehensive income | |||
(4) Provision for credit impairment of other debt investments | |||
(5) Reserve for cash flow hedges | |||
(6) Exchange differences on translation of financial statements denominated in foreign currencies | -4,763,298.65 | 1,149,521.51 | |
(7) Others | |||
(II) Other comprehensive income that can be attributable to minority shareholders, net of tax | 23,530.76 | 25,835.37 | |
VII. Total comprehensive income | 175,055,131.80 | -7,338,593.60 | |
(I) Total comprehensive income that can be attributable to owners of the Parent Company | 146,650,622.14 | 15,341,258.16 | |
(II) Total comprehensive income that can be attributable to minority shareholders | 28,404,509.66 | -22,679,851.76 | |
VIII. Earnings per share: | |||
(I) Basic earnings per share (RMB/share) | 0.33 | 0.03 |
(II) Diluted earnings per share (RMB/share) | 0.33 | 0.03 |
Item | Note | Half year of 2021 | Half year of 2020 |
I. Operating income | XVII. 4 | 572,827,875.91 | 384,899,378.41 |
Less: Operating costs | XVII. 4 | 381,855,853.31 | 256,660,786.97 |
Taxes and levies | 2,677,366.89 | 1,352,141.01 | |
Sales expenses | 31,778,439.77 | 27,526,291.43 | |
Administration expenses | 51,914,220.61 | 56,310,385.85 | |
R&D expenses | 48,699,043.93 | 51,085,854.54 | |
Financial expenses | -13,332,493.36 | -6,218,121.07 | |
Including: Interest expense | 1,232,450.71 | 354,733.03 | |
Interest income | 15,462,791.57 | 6,827,084.77 | |
Add: Other income | 15,069,445.02 | 26,399,900.47 | |
Investment income (loss is indicated by “-”) | XVII. 5 | 15,655,417.87 | 10,824,793.71 |
Including: Income from investments in associates and joint ventures | |||
Gains from derecognition of financial assets at amortized assets (loss is indicated by “-”) | |||
Gains from net exposure hedges (loss is indicated by “-”) | |||
Gains from changes in fair values (loss is indicated by “-”) | |||
Losses of credit impairment (loss is indicated by “-”) | 61,742.84 | -144,581.15 | |
Impairment losses of assets (loss is indicated by “-”) | -9,536,087.28 | -10,600,208.60 | |
Gains from disposal of assets (loss is indicated by “-”) | |||
II. Operating profit (loss is indicated by “-”) | 90,485,963.21 | 24,661,944.11 | |
Add: Non-operating income | 2,207,572.56 | 253,319.61 | |
Less: Non-operating expenses | 150,645.92 | 350,387.34 | |
III. Total profits (total losses are indicated by “-”) | 92,542,889.85 | 24,564,876.38 | |
Less: Income tax expense | 13,606,250.04 | 4,758,965.06 | |
IV. Net profits (net losses are indicated by “-”) | 78,936,639.81 | 19,805,911.32 | |
(I) Net profits from continuing operations (net losses are indicated by “-”) | 78,936,639.81 | 19,805,911.32 |
(II) Net profits from discontinued operations (net losses are indicated by “-”) | |||
V. Other comprehensive income, net of tax | |||
(I) Other comprehensive income that cannot be reclassified subsequently to profit or loss | |||
1.Changes from remeasurement of defined benefit plans | |||
2. Other comprehensive income that cannot be reclassified to profit or loss under the equity method | |||
3.Changes in fair value of investments in other equity instruments | |||
4.Changes in fair value of enterprises’ own credit risks | |||
(II) Other comprehensive income that will be reclassified to profit or loss | |||
1. Other comprehensive income that will be reclassified to profit or loss under the equity method | |||
2. Changes in fair value of other debt investments | |||
3. Amount of financial assets reclassified to other comprehensive income | |||
4. Provision for credit impairment of other debt investments | |||
5. Reserve for cash flow hedges | |||
6. Exchange differences on translation of financial statements denominated in foreign currencies | |||
7. Others | |||
VI. Total comprehensive income | 78,936,639.81 | 19,805,911.32 | |
VII. Earnings per share: | |||
(I) Basic earnings per share (RMB/share) | |||
(II) Diluted earnings per share (RMB/share) |
Item | Note | Half year of 2021 | Half year of 2020 |
I. Cash Flows from Operating Activities: |
Cash receipts from the sale of goods and the rendering of services | 1,453,487,844.10 | 857,080,419.89 | |
Net increase in customer deposits and deposits from banks and other financial institutions | |||
Net increase in loans from the central bank | |||
Net increase in taking from banks and other financial institutions | |||
Cash receipts from premiums under direct insurance contracts | |||
Net cash receipts from reinsurance business | |||
Net cash receipts from policyholders’ deposits and investment contract liabilities | |||
Cash receipts from interest, fees and commissions | |||
Net increase in taking from banks | |||
Net increase in financial assets sold under repurchase arrangements | |||
Net cash received from securities trading agencies | |||
Receipts of tax refunds | 2,222,772.52 | 4,632,072.61 | |
Other cash receipts relating to operating activities | VII. 78. (1) | 113,502,001.69 | 81,270,397.72 |
Sub-total of cash inflows from operating activities | 1,569,212,618.31 | 942,982,890.22 | |
Cash payments for goods purchased and services received | 1,051,145,975.21 | 572,318,784.38 | |
Net increase in loans and advances to customers | |||
Net increase in balance with the central bank and due from banks and other financial institutions | |||
Cash payments for claims and policyholders' benefits under direct insurance contracts | |||
Net increase in placements with banks and other financial institutions | |||
Cash payments for interest, fees and commissions | |||
Cash payments for insurance policyholder dividends | |||
Cash payments to and on behalf of employees | 166,538,999.80 | 163,925,755.54 | |
Payments of various types of taxes | 46,982,376.14 | 43,586,182.30 | |
Other cash payments relating to operating activities | VII. 78. (2) | 133,885,953.26 | 100,146,106.20 |
Sub-total of cash outflows from operating activities | 1,398,553,304.41 | 879,976,828.42 | |
Net cash flow from operating activities | 170,659,313.90 | 63,006,061.80 | |
II. Cash Flows from Investing Activities: | |||
Cash receipts from disposals and recovery of investments | 228,000,000.00 | 1,075,000,000.00 | |
Cash receipts from investment income | 2,145,926.39 | 10,824,793.71 | |
Net cash receipts from disposals of fixed assets, intangible assets and other long-term assets | 7,250.00 | 3,600.00 | |
Net cash receipts from disposals of subsidiaries and other business units | |||
Other cash receipts relating to investing activities | |||
Sub-total of cash inflows from investing activities | 230,153,176.39 | 1,085,828,393.71 | |
Cash payments to acquire or construct fixed assets, intangible assets and other long-term assets | 27,639,815.32 | 19,930,656.68 | |
Cash payments to acquire investments | 568,048,387.32 | 1,158,213,540.00 | |
Net increase in pledged loans receivables | |||
Net cash payments for acquisitions of subsidiaries and other business units | |||
Other cash payments relating to investing activities | |||
Sub-total of cash outflows from investing activities | 595,688,202.64 | 1,178,144,196.68 | |
Net cash flows from investment activities | -365,535,026.25 | -92,315,802.97 | |
III. Cash Flows from Financing Activities: | |||
Cash receipts from capital contributions | 10,131,579.00 | ||
Including: Cash receipts from capital contributions from minority shareholders of subsidiaries | 10,131,579.00 | ||
Cash receipts from borrowings | 113,544,066.34 | 98,922,683.45 | |
Other cash receipts relating to financing activities | VII. 78. (5) | 215,000,000.00 | |
Sub-total of cash inflows from financing activities | 338,675,645.34 | 98,922,683.45 | |
Cash repayments of borrowings | 191,867,810.44 | 179,644,434.20 | |
Cash payments for distribution of dividends or profits or settlement of interest expenses | 40,008,875.22 | 34,547,574.58 |
Including: Payments for distribution of dividends or profits to minority shareholders of subsidiaries | 11,040,000.00 | ||
Other cash payments relating to financing activities | VII. 78. (6) | 31,210,615.17 | 22,587.36 |
Sub-total of cash outflows from financing activities | 263,087,300.83 | 214,214,596.14 | |
Net cash flows from financing activities | 75,588,344.51 | -115,291,912.69 | |
IV. Effect of Foreign Exchange Rate Changes on Cash and Cash Equivalents | -649,558.76 | 1,108,215.61 | |
V. Net Increase in Cash and Cash Equivalents | -119,936,926.60 | -143,493,438.25 | |
Add: Opening balance of cash and cash equivalents | 983,525,089.44 | 829,789,487.86 | |
VI. Closing Balance of Cash and Cash Equivalents | 863,588,162.84 | 686,296,049.61 |
Item | Note | Half year of 2021 | Half year of 2020 |
I. Cash Flows from Operating Activities: | |||
Cash receipts from the sale of goods and the rendering of services | 695,738,828.66 | 351,592,568.58 | |
Receipts of tax refunds | 539,857.34 | 3,108,523.77 | |
Other cash receipts relating to operating activities | 102,652,212.97 | 147,176,514.17 | |
Sub-total of cash inflows from operating activities | 798,930,898.97 | 501,877,606.52 | |
Cash payments for goods purchased and services received | 460,644,038.55 | 320,604,308.34 | |
Cash payments to and on behalf of employees | 98,344,040.37 | 98,194,575.75 | |
Payments of various types of taxes | 32,447,369.04 | 4,579,897.88 | |
Other cash payments relating to operating activities | 59,619,379.08 | 87,411,317.15 | |
Sub-total of cash outflows from operating activities | 651,054,827.04 | 510,790,099.12 | |
Net cash flow from operating activities | 147,876,071.93 | -8,912,492.60 | |
II. Cash Flows from Investing Activities: | |||
Cash receipts from disposals and recovery of investments | 255,500,000.00 | 1,075,000,000.00 | |
Cash receipts from investment income | 9,597,926.39 | 10,824,793.71 |
Net cash receipts from disposals of fixed assets, intangible assets and other long-term assets | 3,600.00 | ||
Net cash receipts from disposals of subsidiaries and other business units | |||
Other cash receipts relating to investing activities | |||
Sub-total of cash inflows from investing activities | 265,097,926.39 | 1,085,828,393.71 | |
Cash payments to acquire or construct fixed assets, intangible assets and other long-term assets | 11,606,321.91 | 14,697,925.55 | |
Cash payments to acquire investments | 472,932,903.47 | 1,161,213,540.00 | |
Net cash payments for acquisitions of subsidiaries and other business units | |||
Other cash payments relating to investing activities | |||
Sub-total of cash outflows from investing activities | 484,539,225.38 | 1,175,911,465.55 | |
Net cash flows from investment activities | -219,441,298.99 | -90,083,071.84 | |
III. Cash Flows from Financing Activities: | |||
Cash receipts from capital contributions | |||
Cash receipts from borrowings | 3,494,734.74 | 52,241,387.30 | |
Other cash receipts relating to financing activities | |||
Sub-total of cash inflows from financing activities | 3,494,734.74 | 52,241,387.30 | |
Cash repayments of borrowings | 11,737,867.15 | 10,000,000.00 | |
Cash payments for distribution of dividends or profits or settlement of interest expenses | 21,319,708.05 | 23,000,602.77 | |
Other cash payments relating to financing activities | 8,435,056.25 | 22,587.36 | |
Sub-total of cash outflows from financing activities | 41,492,631.45 | 33,023,190.13 | |
Net cash flows from financing activities | -37,997,896.71 | 19,218,197.17 | |
IV. Effect of Foreign Exchange Rate Changes on Cash and Cash Equivalents | -269,974.94 | 295,306.01 | |
V. Net Increase in Cash and Cash Equivalents | -109,833,098.71 | -79,482,061.26 | |
Add: Opening balance of cash and cash equivalents | 666,628,105.82 | 524,648,100.62 | |
VI. Closing Balance of Cash and Cash Equivalents | 556,795,007.11 | 445,166,039.36 |
Legal representative: BO Lianming Chief Accountant: WANG Yingxia Person in Charge of theAccounting Body: LIU Jie
Consolidated Statement of Changes in Owners’ Equity
Jan. - Jun. 2021
Unit: Yuan Currency: RMB
Item | Half year of 2021 | ||||||||||||||
Equity attributable to owners of the Parent Company | Minority interests | Total Owner's Equity | |||||||||||||
Paid-in capital (or share capital) | Other equity instruments | Capital reserve | Less: Treasury shares | Other comprehensive income | Special reserve | Surplus reserve | General risk reserve | Retained profits | Others | Sub-total | |||||
Preferred shares | Perpetual bonds | Others | |||||||||||||
I. Closing balance of the preceding year | 452,756,901.00 | 1,249,020,991.15 | -3,214,291.93 | 35,242,179.57 | 357,793,891.96 | 2,091,599,671.75 | 93,812,755.26 | 2,185,412,427.01 | |||||||
Add: Changes in accounting policies | 44,270.33 | 44,270.33 | -11,248.64 | 33,021.69 | |||||||||||
Corrections of prior period errors | |||||||||||||||
Business combination involving entities under common control | |||||||||||||||
Others | |||||||||||||||
II. Opening balance of the current year | 452,756,901.00 | 1,249,020,991.15 | -3,214,291.93 | 35,242,179.57 | 357,838,162.29 | 2,091,643,942.08 | 93,801,506.62 | 2,185,445,448.70 |
III. Changes for the year (decrease is indicated by “-”) | 111,083,348.13 | -4,763,298.65 | 126,512,291.23 | 232,832,340.71 | -83,735,638.25 | 149,096,702.46 | |||||||||
(I) Total comprehensive income | -4,763,298.65 | 151,413,920.79 | 146,650,622.14 | 28,404,509.66 | 175,055,131.80 | ||||||||||
(II) Owners’ contributions and reduction in capital | 111,083,348.13 | 111,083,348.13 | -101,100,147.91 | 9,983,200.22 | |||||||||||
1. Ordinary shares contributed by owners | 20,175,439.00 | 20,175,439.00 | |||||||||||||
2. Capital contribution from holders of other equity instruments | |||||||||||||||
3. Share-based payment recognized in owners' equity | 18,461,103.38 | 18,461,103.38 | 3,890,517.84 | 22,351,621.22 | |||||||||||
4. Others | 92,622,244.75 | 92,622,244.75 | -125,166,104.75 | -32,543,860.00 | |||||||||||
(III) Profit distribution | -24,901,629.56 | -24,901,629.56 | -11,040,000.00 | -35,941,629.56 |
1. Transfer to surplus reserve | |||||||||||||||
2. Transfer to general reserve | |||||||||||||||
3. Distributions to owners (or shareholders) | -24,901,629.56 | -24,901,629.56 | -11,040,000.00 | -35,941,629.56 | |||||||||||
4. Others | |||||||||||||||
(IV) Transfers within owners’ equity | |||||||||||||||
1. Capitalization of capital reserve | |||||||||||||||
2. Capitalization of surplus reserve | |||||||||||||||
3. Loss offset by surplus reserve | |||||||||||||||
4.Retained earnings carried forward from changes in defined benefit plans | |||||||||||||||
5.Retained earnings carried forward from |
other comprehensive income | |||||||||||||||
6.Others | |||||||||||||||
(V) Special reserve | |||||||||||||||
1. Transfer to special reserve in the period | |||||||||||||||
2. Amount utilized in the period | |||||||||||||||
(VI) Others | |||||||||||||||
IV. Closing balance of the current year | 452,756,901.00 | 1,360,104,339.28 | -7,977,590.58 | 35,242,179.57 | 484,350,453.52 | 2,324,476,282.79 | 10,065,868.37 | 2,334,542,151.16 |
Item | Half year of 2020 | ||||||||||||||
Equity attributable to owners of the Parent Company | Minority interests | Total Owner's Equity | |||||||||||||
Paid-in capital (or share capital) | Other equity instruments | Capital reserve | Less: Treasury shares | Other comprehensive income | Special reserve | Surplus reserve | General risk reserve | Retained profits | Others | Sub-total | |||||
Preferred shares | Perpetual bonds | Others | |||||||||||||
I. Closing balance of the preceding year | 451,554,411.00 | 1,207,942,318.37 | 3,287,063.85 | 22,800,224.13 | 288,975,820.29 | 1,974,559,837.64 | 149,649,306.18 | 2,124,209,143.82 | |||||||
Add: Changes in accounting policies | 1,278,734.88 | 1,278,734.88 | -646,507.57 | 632,227.31 |
Corrections of prior period errors | |||||||||||||||
Business combination involving entities under common control | |||||||||||||||
Others | |||||||||||||||
II. Opening balance of the current year | 451,554,411.00 | 1,207,942,318.37 | 3,287,063.85 | 22,800,224.13 | 290,254,555.17 | 1,975,838,572.52 | 149,002,798.61 | 2,124,841,371.13 | |||||||
III. Changes for the year (decrease is indicated by “-”) | 16,084,702.84 | 1,013,815.20 | -19,539,137.87 | -2,440,619.83 | -21,188,011.12 | -23,628,630.95 | |||||||||
(I) Total comprehensive income | 1,013,815.20 | 14,327,442.96 | 15,341,258.16 | -22,679,851.76 | -7,338,593.60 | ||||||||||
(II) Owners’ contributions and reduction in capital | 16,084,702.84 | 16,084,702.84 | 1,491,840.64 | 17,576,543.48 | |||||||||||
1. Ordinary shares contributed by owners | |||||||||||||||
2. Capital contribution from holders of other equity instruments | |||||||||||||||
3. Share-based payment recognized in owners' equity | 16,084,702.84 | 16,084,702.84 | 1,491,840.64 | 17,576,543.48 | |||||||||||
4. Others | |||||||||||||||
(III) Profit distribution | -33,866,580.83 | -33,866,580.83 | -33,866,580.83 |
1. Transfer to surplus reserve | |||||||||||||||
2. Transfer to general reserve | |||||||||||||||
3. Distributions to owners (or shareholders) | -33,866,580.83 | -33,866,580.83 | -33,866,580.83 | ||||||||||||
4. Others | |||||||||||||||
(IV) Transfers within owners’ equity | |||||||||||||||
1. Capitalization of capital reserve | |||||||||||||||
2. Capitalization of surplus reserve | |||||||||||||||
3. Loss offset by surplus reserve | |||||||||||||||
4.Retained earnings carried forward from changes in defined benefit plans | |||||||||||||||
5.Retained earnings carried forward from other comprehensive income | |||||||||||||||
6.Others | |||||||||||||||
(V) Special reserve |
1. Transfer to special reserve in the period | |||||||||||||||
2. Amount utilized in the period | |||||||||||||||
(VI) Others | |||||||||||||||
IV. Closing balance of the current year | 451,554,411.00 | 1,224,027,021.21 | 4,300,879.05 | 22,800,224.13 | 270,715,417.30 | 1,973,397,952.69 | 127,814,787.49 | 2,101,212,740.18 |
Item | Half year of 2021 | ||||||||||
Paid-in capital (or share capital) | Other equity instruments | Capital reserve | Less: Treasury shares | Other comprehensive income | Special reserve | Surplus reserve | Retained profits | Total Owner's Equity | |||
Preferred shares | Perpetual bonds | Others | |||||||||
I. Closing balance of the preceding year | 452,756,901.00 | 1,351,261,718.84 | 33,964,638.84 | 289,684,566.58 | 2,127,667,825.26 | ||||||
Add: Changes in accounting policies | 349,237.72 | 349,237.72 | |||||||||
Corrections of prior period errors | |||||||||||
Others | |||||||||||
II. Opening balance of the current year | 452,756,901.00 | 1,351,261,718.84 | 33,964,638.84 | 290,033,804.30 | 2,128,017,062.98 | ||||||
III. Changes for the year (decrease is indicated by “-”) | 19,006,591.95 | 54,035,010.25 | 73,041,602.20 |
(I) Total comprehensive income | 78,936,639.81 | 78,936,639.81 | |||||||||
(II) Owners’ contributions and reduction in capital | 19,006,591.95 | 19,006,591.95 | |||||||||
1. Ordinary shares contributed by owners | |||||||||||
2. Capital contribution from holders of other equity instruments | |||||||||||
3. Share-based payment recognized in owners' equity | 19,006,591.95 | 19,006,591.95 | |||||||||
4. Others | |||||||||||
(III) Profit distribution | -24,901,629.56 | -24,901,629.56 | |||||||||
1. Transfer to surplus reserve | |||||||||||
2. Distributions to owners (or shareholders) | -24,901,629.56 | -24,901,629.56 | |||||||||
3. Others | |||||||||||
(IV) Transfers within owners’ equity | |||||||||||
1. Capitalization of capital reserve | |||||||||||
2. Capitalization of surplus reserve | |||||||||||
3. Loss offset by surplus reserve | |||||||||||
4.Retained earnings carried forward from changes in defined benefit plans |
5.Retained earnings carried forward from other comprehensive income | |||||||||||
6.Others | |||||||||||
(V) Special reserve | |||||||||||
1. Transfer to special reserve in the period | |||||||||||
2. Amount utilized in the period | |||||||||||
(VI) Others | |||||||||||
IV. Closing balance of the current year | 452,756,901.00 | 1,370,268,310.79 | 33,964,638.84 | 344,068,814.55 | 2,201,058,665.18 |
Item | Half year of 2020 | ||||||||||
Paid-in capital (or share capital) | Other equity instruments | Capital reserve | Less: Treasury shares | Other comprehensive income | Special reserve | Surplus reserve | Retained profits | Total Owner's Equity | |||
Preferred shares | Perpetual bonds | Others | |||||||||
I. Closing balance of the preceding year | 451,554,411.00 | 1,310,939,867.82 | 21,522,683.40 | 211,573,548.42 | 1,995,590,510.64 | ||||||
Add: Changes in accounting policies | |||||||||||
Corrections of prior period errors | |||||||||||
Others | |||||||||||
II. Opening balance of the current year | 451,554,411.00 | 1,310,939,867.82 | 21,522,683.40 | 211,573,548.42 | 1,995,590,510.64 | ||||||
III. Changes for the year | 17,576,543.48 | -14,060,669.51 | 3,515,873.97 |
(decrease is indicated by “-”) | |||||||||||
(I) Total comprehensive income | 19,805,911.32 | 19,805,911.32 | |||||||||
(II) Owners’ contributions and reduction in capital | 17,576,543.48 | 17,576,543.48 | |||||||||
1. Ordinary shares contributed by owners | |||||||||||
2. Capital contribution from holders of other equity instruments | |||||||||||
3. Share-based payment recognized in owners' equity | 17,576,543.48 | 17,576,543.48 | |||||||||
4. Others | |||||||||||
(III) Profit distribution | -33,866,580.83 | -33,866,580.83 | |||||||||
1. Transfer to surplus reserve | |||||||||||
2. Distributions to owners (or shareholders) | -33,866,580.83 | -33,866,580.83 | |||||||||
3. Others | |||||||||||
(IV) Transfers within owners’ equity | |||||||||||
1. Capitalization of capital reserve |
2. Capitalization of surplus reserve | |||||||||||
3. Loss offset by surplus reserve | |||||||||||
4.Retained earnings carried forward from changes in defined benefit plans | |||||||||||
5.Retained earnings carried forward from other comprehensive income | |||||||||||
6.Others | |||||||||||
(V) Special reserve | |||||||||||
1. Transfer to special reserve in the period | |||||||||||
2. Amount utilized in the period | |||||||||||
(VI) Others | |||||||||||
IV. Closing balance of the current year | 451,554,411.00 | 1,328,516,411.30 | 21,522,683.40 | 197,512,878.91 | 1,999,106,384.61 |
III. Company profile
1. Profile
√ Applicable□ N/A
Appotronics Corporation Limited (hereinafter referred to as “Company” or “the Company”),formally named as Appotronics Corporation Ltd.(hereinafter referred to as “Appotronics Ltd.”), wasjointly invested and established by LI Yi and XU Yanzheng and registered in Nanshan Branch of ShenzhenAdministration for Market Administration on October 24, 2006 with the business license numbered4403011245637. Upon establishment, the registered capital of Appotronics Ltd. was RMB 100,000. OnMay 31, 2018, the benchmark date, Appotronics Ltd. was changed into a company limited by shares as awhole. On July 20, 2018, the Company completed the registration in Nanshan Branch of ShenzhenAdministration for Market Administration and headquartered in Shenzhen, Guangdong Province. TheCompany now holds the business license with the unified social credit code of 91440300795413991N andhas registered capital amounted to RMB 452,756,901.00. The Company has 452,756,901 shares in total(with the par value of RMB 1 per share), comprising 169,456,766 restricted outstanding shares and283,300,135 unrestricted outstanding shares. The Company’s shares were listed for trading on ShanghaiStock Exchange on July 22, 2019.The Company is in the industry of computer, communication and other electronic equipmentmanufacturing. It mainly engages in research and development, production, sales and services of laserdisplay core devices and complete equipment led by ALPD
?laser display technology and architecture, toapply laser display technology to different scenarios, as well as provision of laser film screening services,with its main products including, among others, laser cinema projectors, laser TV, smart mini projectors,laser business education projectors and large venue laser projectors.
The financial statements herein have been approved by the Company’s second meeting of the secondboard of directors on August 24, 2021 for public disclosure.
2. Scope of consolidated financial statements
√ Applicable□ N/A
22 subsidiaries being Appotronics Timewaying (Beijing) Technology Co., Ltd., ShenzhenAppotronics Software Technology Co., Ltd., Shenzhen City Appotronics Xiaoming Technology Co., Ltd.,Beijing Orient Appotronics Technology Co., Ltd., Fengmi (Beijing) Technology Co., Ltd., CINEAPPOLaser Cinema Technology (Beijing) Co., Ltd., Shenzhen Appotronics Laser Display Technology Co., Ltd.,Shenzhen Appotronics Laser Technology Co., Ltd., Qingda Appotronics (Xiamen) Technology Co., Ltd.,Shenzhen Appotronics Home Line Technology Co., Ltd., Appotronics Hong Kong Limited, AppotronicsUSA, Inc., Fabulus Technology Hong Kong Limited, JoveAI Limited, JoveAI Innovation, Inc.,Appotronics Technology (Changzhou) Co., Ltd., FORMOVIE TECHNOLOGY INC, WEMAX LLC,Shenzhen Appotronics Display Device Co., Ltd., JoveAI Asia Company Limited, Tianjin Bainian FilmPartnership (LP) and Fengmi (Chongqing) Innovation Technology Co., Ltd. are included by the Companyinto the consolidated financial statements for the current period. Refer to descriptions in IIX and IX ofSection X for details.
IV. Basis of preparation of financial statements
1. Basis of preparation
The Company’s financial statements are prepared on a going-concern basis.
2. Going concern
√ Applicable□ N/A
The Company has detected no events or circumstances that may cast significant doubt upon its ability tocontinue as a going concern within 12 months from the reporting period.
V. Significant accounting policies and accounting estimatesSpecific accounting policies and accounting estimates:
√ Applicable□ N/A
IMPORTANT: The Company establishes the specific accounting policies and makes the specificaccounting estimates with respect to the impairment of financial instruments, depreciation of fixed assets,amortization of intangible assets, recognition of revenues and other transactions and events according toits actual production and operation characteristics.
1. Statement of compliance with the Accounting Standards for Business EnterprisesThe financial statements prepared by the Company conform to the requirements of the AccountingStandards for Business Enterprises and truly and completely reflect the Company’s financial position,operating results, changes in shareholders' equity, cash flows and other related information.
2. Accounting period
The Company’s accounting year is from January 1 to December 31 of each calendar year.
3. Operating cycle
√ Applicable□ N/A
The Company has a relatively short operating cycle, and determines the liquidity of assets and liabilitieson the basis of 12 months.
4. Functional currency
The Company adopts RMB as its functional currency.
5. The accounting treatment of business combinations involving entities under common controland not involving entities under common control
√ Applicable□ N/A
1. Accounting treatment of business combinations involving entities under common controlAssets and liabilities acquired from a business combination by the Company are measured at thecarrying amounts of the assets and liabilities of the acquiree in the consolidated financial statements of theultimate controller at the date of combination. The difference between the carrying amount of the owners’equity of the acquiree as stated in the consolidated financial statements of the ultimate controller and thecarrying amount of the total consideration paid or total par value of the shares issued in connection withthe combination is treated as an adjustment to the capital reserve. In case the capital reserve is not sufficientto absorb the difference, the remaining balance is adjusted against the retained earnings.
2. Accounting treatment of business combinations not involving entities under common controlWhere the cost of combination exceeds the Company’s interest in the fair value of the acquiree’sidentifiable net assets, the difference is recognized as goodwill. Where the cost of combination is less thanthe Company’s interest in the fair value of the acquiree’s identifiable net assets, the Company firstlyreassesses the fair values of the acquiree’s identifiable assets, liabilities and contingent liabilities and themeasurement of the cost of combination. If after that reassessment, the cost of combination is still less
than the Company’s interest in the fair value of the acquiree’s identifiable net assets, the acquirerrecognizes the remaining difference immediately in profit or loss for the current period.
6. Method of preparation of consolidated financial statements
√ Applicable□ N/A
The parent company includes all of its controlled subsidiaries in its consolidated financial statements.The consolidated financial statements are prepared by the parent company in accordance with theAccounting Standards for Business Enterprises No. 33 -- Consolidated Financial Statements, on the basisof the respective financial statements of the parent company and its subsidiaries, by reference to otherrelevant data.
7. Classification of joint arrangements and accounting treatment of joint operations
√ Applicable□ N/A
1. Joint arrangements are classified into joint operations and joint ventures.
2. When the Company is a party to a joint operation, the Company recognizes the following itemsrelating to its interest in the joint operation:
(1) the assets individually held by the Company, and the Company’s share of the assets held jointly;
(2) the liabilities incurred individually by the Company, and the Company’s share of the liabilitiesincurred jointly;
(3) the Company’s revenue from the sale of its share of output of the joint operation;
(4) the Company’s share of revenue from the sale of assets by the joint operation; and
(5) the expenses incurred individually by the Company, and the Company’s share of the expensesincurred jointly.
8. Recognition of cash and cash equivalents
Cash presented in the statement of cash flows comprises cash on hand and deposits that can be readilywithdrawn on demand. Cash equivalents refer to the enterprise’s short-term, highly liquid investments thatare readily convertible to known amounts of cash and which are subject to an insignificant risk of changesin value.
9. Translation of transactions and financial statements denominated in foreign currencies
√ Applicable□ N/A
1. Transactions denominated in foreign currencies
A foreign currency transaction is recorded in RMB, on initial recognition, by applying the spotexchange rate on the date of the transaction. At the balance sheet date, foreign currency monetary itemsare translated into RMB using the spot exchange rates at the balance sheet date. Exchange differencesarising from such translations are recognized in profit or loss for the current period, except for thoseattributable to foreign currency borrowings that have been taken out specifically for the acquisition orconstruction of qualifying assets and accrued interest. Non-monetary items denominated in foreigncurrencies that are measured at historical cost are translated using the foreign exchange rates ruling at thetransaction dates, without adjusting the amounts in RMB. Non-monetary items denominated in foreigncurrencies that are measured at fair value are translated using the foreign exchange rates prevailing at thedates when the fair value was determined, with exchange differences arising from such translationsrecognized in profit or loss for the current period or other comprehensive income.
2. Translation of financial statements denominated in foreign currencies
Asset and liability items on the balance sheet are translated at the spot exchange rate prevailing at thebalance sheet date; shareholders' equity items other than "retained profits” are translated at the spotexchange rates at the dates on which such items arose; income and expense items in the income statement
are translated at the exchange rates that approximate the actual spot exchange rates on the dates of thetransactions. Exchange differences arising from such translations are recognized in other comprehensiveincome.
10. Financial instruments
√ Applicable□ N/A
1. Classification of financial assets and financial liabilities
On initial recognition, the Company’s financial assets are classified into three categories, including
(1) financial assets at amortized cost; (2) financial assets at fair value through other comprehensive income;and (3) financial assets at fair value through profit or loss for the current period.
Upon initial recognition, the Company’s financial liabilities are classified into four categories,including (1) financial liabilities at fair value through profit or loss for the current period; (2) financialliabilities arising as a result of the transfer of financial assets not meeting the criteria for derecognition orcontinuing involvement in the financial assets transferred; (3) financial guarantee contracts not fallingunder Clauses (1) and (2), and loan commitments not falling under Clause (1) and below market interestrate; and (4) financial liabilities at amortized cost.
2. Recognition, measurement and derecognition of financial assets and financial liabilities
(1) Recognition and initial measurement of financial assets and financial liabilities
When the Company becomes a party to a financial instrument contract, a financial asset or liabilityis recognized. Financial assets and liabilities are initially measured at fair value. Transaction costs relatingto financial assets or liabilities at fair value through profit or loss are directly recognized in profit or lossfor the current period. Transaction costs relating to other kinds of financial assets or liabilities are includedin their initially recognized amount. However, the accounts receivable, if do not contain any significantfinancing component or are recognized by the Company without taking into consideration the financingcomponents under the contracts with a term of less than one year upon initial recognition, are initiallymeasured at transaction price defined in the Accounting Standard for Business Enterprises No. 14 -Revenue.
(2) Subsequent measurement of financial assets
1) Financial assets at amortized cost
Financial assets at amortized cost are subsequently measured at amortized cost using the effectiveinterest method. Gains or losses arising from financial assets at amortized cost that do not belong to anyhedging relationship are recognized in profit or loss for the current period upon derecognition,reclassification, amortization using the effective interest method or recognition of impairment.
2) Investments in debt instruments at fair value through other comprehensive income
Investments in debt instruments at fair value through other comprehensive income are subsequentlymeasured at fair value. Interest, impairment losses or gains and exchange gains or losses calculated usingthe effective interest method are recognized in profit or loss for the current period, and other gains orlosses are recognized in other comprehensive income. Upon derecognition, the aggregate gains or lossespreviously recognized in other comprehensive income are transferred to profit or loss for the current period.
3) Investments in equity instruments at fair value through other comprehensive income
Investments in equity instruments at fair value through other comprehensive income are subsequentlymeasured at fair value. Dividends received (other than those received as recovery of investment cost) arerecognized in profit or loss for the current period, and other gains or losses are recognized in othercomprehensive income. Upon derecognition, the accumulated gains or losses previously recognized inother comprehensive income are transferred to retained earnings.
4) Financial assets at fair value through profit or loss for the current period
Financial assets at fair value through profit or loss for the current period are subsequently measuredat fair value, with gains or losses arising therefrom, including interest and dividend income, recognized in
profit or loss for the current period, except the financial assets belonging to any hedging relationship.
(3) Subsequent measurement of financial liabilities
1) Financial liabilities at fair value through profit or loss for the current period
Financial liabilities at fair value through profit or loss for the current period include financialliabilities held for trading (including derivatives classified as financial liabilities), and financial liabilitiesdirectly designated as at fair value through profit or loss for the current period. Such financial liabilitiesare subsequently measured at fair value. Changes in the fair value of financial liabilities designated as atfair value through profit or loss for the period arising out of changes in the Company’s own credit risk arerecognized in other comprehensive income, unless such treatment will result in or increase any accountingmismatch in profit or loss. Other gains or losses arising from such financial liabilities, including interestexpenses and changes in fair value not arising out of changes in the Company’s own credit risk, arerecognized in profit or loss for the current period, except the financial liabilities belonging to any hedgingrelationship. Upon derecognition, the accumulated gains or losses previously recognized in othercomprehensive income are transferred to retained earnings.
2) Financial liabilities arising as a result of the transfer of financial assets not meeting the criteria forderecognition or continuing involvement in the financial assets transferred
Such financial liabilities are measured in accordance with the Accounting Standards for BusinessEnterprises No. 23 -- Transfer of Financial Assets.
3) Financial guarantee contracts not falling under Clauses 1) and 2), and loan commitments not fallingunder Clause 1) and below market interest rate
Such financial liabilities are subsequently measured at the higher of ① provision for impairmentlosses determined according to the policy for impairment of financial instruments; and ② balance of theinitially recognized amount after deduction of the accumulated amortization determined in accordancewith the relevant provisions of the Accounting Standard for Business Enterprises No. 14 - Revenue.
4) Financial liabilities at amortized cost
Financial liabilities at amortized cost are subsequently measured at amortized cost using the effectiveinterest method. Gains or losses on financial liabilities at amortized cost that do not belong to any hedgingrelationship are recognized in profit or loss for the current period upon derecognition or amortization usingthe effective interest method.
(4) Derecognition of financial assets and financial liabilities
1) Financial assets are derecognized when:
① the contractual right to receive cash flows from the financial assets has expired; or
② the financial assets have been transferred and such transfer meets the criteria for derecognitionof financial assets as set forth in the Accounting Standards for Business Enterprises No. 23 -- Transfer ofFinancial Assets.
2) A financial liability (or part thereof) is derecognized when all or part of the outstandingobligations thereon have been discharged.
3. Recognition and measurement of financial assets transferred
When a financial asset of the Company is transferred, if substantially all the risks and rewardsincidental to the ownership of the financial asset have been transferred, the financial asset is derecognized,and the rights and obligations incurred or retained in such transfer are separately recognized as assets orliabilities (as the case may be); if substantially all the risks and rewards incidental to the ownership of thefinancial asset have been retained, the financial asset transferred continues to be recognized. If theCompany neither transferred nor retained a substantial portion of all risks and rewards incidental to theownership of the financial asset, then: (1) if the Company does not retain control over the financial asset,the financial asset is derecognized, and the rights and obligations incurred or retained in such transfer areseparately recognized as assets or liabilities (as the case may be); and (2) if the Company retains control
over the financial asset, the financial asset continues to be recognized to the extent of the Company’scontinuing involvement in the financial asset transferred, and a corresponding liability is recognized.If an entire transfer of a financial asset meets the criteria for derecognition, the difference between
(1) the carrying amount of the financial asset transferred at the date of derecognition; and (2) the sum ofthe consideration received from the transfer and the portion of the accumulated amount of changes in fairvalue directly recorded as other comprehensive income originally that corresponds to the partderecognized (where the financial asset transferred is an investment in debt instruments at fair valuethrough other comprehensive income) is recognized in profit or loss for the current period. If part of afinancial asset is transferred and the part transferred entirely meets the criteria for derecognition, the totalcarrying amount of the financial asset immediately prior to the transfer is allocated between the partderecognized and the part not derecognized in proportion to their relative fair value at the date of transfer,and the difference between (1) the carrying amount of the part derecognized; and (2) the sum of theconsideration received from the transfer of the part derecognized and the portion of the accumulatedamount of changes in fair value directly recorded as other comprehensive income originally thatcorresponds to the part derecognized (where the financial asset transferred is an investment in debtinstruments at fair value through other comprehensive income) is recognized in profit or loss for thecurrent period.
4. Determination of fair value of financial assets and financial liabilities
The Company adopts the valuation techniques applicable to the current situations and with sufficientdata available and support of other information, to determine the fair value of financial assets and financialliabilities. The Company classifies the inputs used by the valuation techniques in the following levels anduses them in turn:
(1) Level 1 inputs: quoted market price (unadjusted) in an active market for an identical asset orliability available at the date of measurement;
(2) Level 2 inputs: inputs other than inputs included within Level 1 that are observable directly orindirectly. This category includes quoted prices for similar assets or liabilities in active markets, quotedprices for identical or similar assets or liabilities in inactive markets, observable inputs other than quotedprices (such as interest rate and yield curves observable during regular intervals of quotation), and inputsvalidated by the market;
(3) Level 3 inputs: inputs that are unobservable. This category includes interest rate or stock volatilitythat cannot be directly observed or validated by observable market data, future cash flows from retirementobligation incurred in business combinations, and financial forecasts made using own data.
5. Impairment of financial instruments
(1) Measurement and accounting treatment of impairment of financial instruments
The Company determines the impairment and assesses provision for impairment losses of financialassets at amortized cost, investments in debt instruments at fair value through other comprehensive income,contract assets, lease receivable, loan commitments other than financial liabilities designated at fair valuethrough profit or loss for the current period, and financial guarantee contracts other than financial liabilitiesdesignated at fair value through profit or loss for the current period and financial liabilities arising as aresult of the transfer of financial assets not meeting the criteria for derecognition or continuinginvolvement in the financial assets transferred, on the basis of expected credit losses.
Expected credit loss is the weighted average of credit losses on financial instruments taking intoaccount the possibility of default. Credit loss is the difference between all contractual cash flows receivableunder the contract and estimated future cash flows discounted at the original effective interest rate, i.e. thepresent value of all cash shortage, wherein the Company’s purchased or originated financial assets thathave become credit impaired are discounted at their credit-adjusted effective interest rate.
With respect to purchased or originated financial assets that have become credit impaired, at thebalance sheet date, the Company recognizes a loss allowance equal to the accumulated amount of changesin lifetime expected credit losses since initial recognition.
With respect to accounts receivable and contract assets that arise from the transactions regulatedunder the Accounting Standard for Business Enterprises No. 14 - Revenue that do not contain anysignificant financing component or are recognized by the Company without taking into consideration thefinancing components under the contracts with a term of less than one year, the Company uses the simplemeasurement method and recognizes a loss allowance equal to the lifetime expected credit loss.
With respect to lease receivable, as well as accounts receivable and contract assets that arise from thetransactions regulated under the Accounting Standard for Business Enterprises No. 14 - Revenuecontaining significant financing components, the Company uses the simple measurement method andrecognizes a loss allowance equal to the lifetime expected credit losses.
With respect to financial assets not using the measurement methods stated above, at each balancesheet date, the Company assesses whether the credit risk has increased significantly since initialrecognition, and recognizes a loss allowance equal to the lifetime expected credit loss if the credit risk hasincreased significantly since initial recognition, or to the expected credit losses within the next 12 monthsif the credit risk has not increased significantly since initial recognition.
The Company uses reasonable and supportable information, including forward-looking information,and compares the possibility of default at the balance sheet date with the possibility of default upon initialrecognition, to determine whether the credit risk of the financial instruments has increased significantlysince initial recognition.
At the balance sheet date, if the Company determines that a financial instrument only has low creditrisk, the Company assumes that its credit risk has not increased significantly since initial recognition.
The Company assesses expected credit risk and measures expected credit losses of financialinstruments individually or collectively. When assessing the financial instruments collectively, theCompany includes the financial instruments in different groups according to their common riskcharacteristics.
At each balance sheet date, the Company re-assesses the expected credit losses, with the amount ofincrease in or reversal of loss allowance recognized in profit or loss for the current period as impairmentlosses or gains. With respect to a financial asset at amortized cost, its carrying amount recorded in thebalance sheet is written off against the loss allowance. With respect to an investment in debt instrumentsat fair value through other comprehensive income, the Company recognizes the loss allowance in othercomprehensive income, without reducing its carrying amount.
(2) Financial instruments for which expected credit risk is assessed and expected credit losses aremeasured collectively
Item | Basis for determining a group | Method for measuring expected credit losses |
Other receivables - group of deposit and security receivable | Nature of receivables | By reference to historic credit loss experience, and taking into account the current situations and prediction of future economic conditions, calculate the expected credit losses according to the default risk exposure and 12-month or |
Other receivables- group of withholding receivable | ||
Other receivables - group of receivables from related parties in the scope of consolidation | Receivables from related parties in the scope of consolidation | |
Other receivables - grouping by aging | Aging |
Item | Basis for determining a group | Method for measuring expected credit losses |
Long-term receivables - grouping by aging | Aging | rate of lifetime expected credit loss. |
Item | Basis for determining a group | Method for measuring expected credit losses |
Bank acceptance bills receivable | Type of notes | By reference to historic credit loss experience, and taking into account the current situations and prediction of future economic conditions, calculate the expected credit losses according to the default risk exposure and rate of lifetime expected credit loss. |
Commercial acceptance bills receivable | ||
Accounts receivable - group of receivables from related parties in the scope of consolidation | Receivables from related parties in the scope of consolidation | |
Accounts receivable - grouping by aging | Aging | By reference to historic credit loss experience, and taking into account the current situations and prediction of future economic conditions, prepare a comparison table of the aging of accounts receivable and rate of lifetime expected credit loss, and calculate the expected credit losses. |
Contract assets - group of contract assets from related parties in the scope of consolidation | Contract assets from related parties in the scope of consolidation | By reference to historic credit loss experience, and taking into account the current situations and prediction of future economic conditions, calculate the expected credit losses according to the default risk exposure and rate of lifetime expected credit loss. |
Contract assets - grouping by aging | Aging | By reference to historic credit loss experience, and taking into account the current situations and prediction of future economic conditions, prepare a comparison table of the aging of account assets and rate of lifetime expected credit loss, and calculate the expected credit losses. |
expected credit loss
Aging | Accounts receivable Rate of expected credit loss for accounts receivable (%) |
Within 1 year (including, the same below) | 5.00 |
1-2 years | 25.00 |
2-3 years | 50.00 |
Over 3 years | 100.00 |
Inventories mainly include finished goods or commodities held for sale in the ordinary course ofbusinesses, work in progress in the process of production or materials and supplies consumed in theprocess of production or rendering service.
2. Valuation method of inventories upon delivery
The actual cost of inventories upon delivery is calculated using the moving weighted average method.
3. Basis for determining net realizable value of inventories
At the balance sheet date, inventories are measured at the lower of cost and net realisable value. Ifthe net realisable value is below the cost of inventories, a provision for decline in value of inventories ismade. For inventories directly used for sale, the net realizable value is determined as the estimated sellingprice in the ordinary course of business less the estimated costs necessary to make the sale and relevanttaxes. For inventories required for processing, the net realizable value is determined as the estimatedselling price of finished goods in the ordinary course of business less the estimated costs of completion,and the estimated costs necessary to make the sale and relevant taxes. As at the balance sheet date, if inthe same item of inventories, some are agreed with contractual prices while the others are not, the netrealizable value for such inventories is determined separately, and compared with the costs of the two partsof inventories distinctively, as to determine the provisions or reversal of provisions for decline in value ofinventories separately.
4. Inventory count system
The perpetual inventory system is maintained for stock system.
5. Amortization method for low cost and short-lived consumable items and packaging materials
(1) Low cost and short-lived consumable items
Low cost and short-lived consumable items are amortized using the immediate write-off method.
(2) Packaging materials
Low cost and short-lived consumable items are amortized using the immediate write-off method.
16. Contract assets
(1). Recognition method and criteria of contract assets
√ Applicable□ N/A
The Company presents contract assets or contract liabilities in the balance sheet according to therelationship between the satisfaction of performance obligation and customers’ payment. The contractassets and contract liabilities under the same contract are presented in net amount after offsetting eachother.
The Company presents its owned right to unconditionally (that is, only depending on the lapse oftime) receive consideration from customers as the accounts receivable, and the right to receive theconsideration for which the goods that have been transferred to customers (that is, depending on factorsother than the lapse of time) as the contract assets.
(2). Method for recognition of expected credit losses of contract assets and relevant accounting
treatments
√ Applicable□ N/A
.The method for recognition of expected credit losses of contract assets and relevant accountingtreatments are disclosed in V.10 of Section X in details.
17. Held-for-sale assets
□ Applicable√ N/A
18. Debt investments
Method for recognition of expected credit losses of debt investments and relevant accountingtreatments
□ Applicable√ N/A
19. Other debt investments
Method for recognition of expected credit losses of other debt investments and relevant accountingtreatments
□ Applicable√ N/A
20. Long-term receivables
Method for recognition of expected credit losses of long-term receivables and relevant accountingtreatments
√ Applicable□ N/A
.The method for recognition of expected credit losses of long-term receivables and relevantaccounting treatments are disclosed in V.10 of Section X in details.
21. Long-term equity investments
√ Applicable□ N/A
1. Judgments on joint control and significant influence
Joint control is the contractually agreed sharing of control of an arrangement, which exists only whendecisions about the relevant activities of such arrangement require unanimous consent of the partiessharing control. Significant influence is the power to participate in the financial and operating policymaking of an entity, but does not control or jointly control over those policies.
2. Determination of investment cost
(1) In case of an equity investment acquired through a business combination involving entities undercommon control, if the acquirer pays consideration for the business combination by cash, transfer of non-monetary assets, assumption of liabilities or issuance of equity securities, the initial investment cost of thelong-term equity investment is the Company’s share of the carrying amount of the owners’ equity of theacquiree in the consolidated financial statements of the ultimate controller at the date of combination. Thedifference between: (i) the initial investment cost of the long-term equity investment; and (ii) the carryingamount of the consideration paid for the combination or the total par value of the shares issued is treatedas an adjustment to the capital reserve. In case the capital reserve is not sufficient to absorb the difference,the remaining balance is adjusted against the retained earnings.
For a long-term equity investment acquired through business combination involving enterprisesunder common control that is achieved through multiple transactions by steps, the Company shall judgewhether such transactions constitute a package deal. If such transactions constitute a package deal, theCompany accounts for such transactions as one transaction to acquire control. If such transactions do notconstitute a package deal, the initial investment cost is the Company’s share of the carrying amount of theowners’ equity of the acquiree in the consolidated financial statements of the ultimate controller at the dateof combination. The difference between: (i) the initial investment cost of the long-term equity investmentat the date of combination; and (ii) the sum of the carrying amount of long-term equity investment beforethe combination and the carrying amount of the consideration paid for acquisition of the additional sharesat the date of combination is adjusted against the capital reserve.In case the capital reserve is not sufficientto absorb the difference, the remaining balance is adjusted against the retained earnings.
(2) In case of an equity investment acquired through a business combination not involving entitiesunder common control, the initial investment cost is the fair value of the carrying amount of theconsideration paid for the combination at the date of acquisition.
For a long-term equity investment acquired through a business combination not involving entitiesunder common control and achieved through multiple transactions by steps, the accounting treatmentthereof in the separate financial statements is different from that in the consolidated financial statementsas stated below:
1) In the separate financial statements, the sum of the carrying amount of the equity investmentoriginally held in the acquiree and the additional investment cost incurred is recorded as the initialinvestment cost of the equity investment changed into the cost method.
2) In the consolidated financial statements, it is required to judge whether such transactions constitutea package deal. If such transactions constitute a package deal, the Company accounts for such transactionsas one transaction to acquire control. If such transactions do not constitute a package deal, the Companyre-measures the fair value of the equity held in the acquiree prior to the date of acquisition, and recordsthe difference between the fair value and the carrying amount as investment income for the current period;if the equity held in the acquiree prior to the date of acquisition involves other comprehensive incomeunder equity method, such other comprehensive income is transferred to the income of the period in whichthe date of acquisition falls, except for other comprehensive income arising from re-measurement ofchanges in net liabilities or net assets of defined benefit plans.
(3) In the event of no business combination: (3) The initial investment cost is the purchase priceactually paid if it is acquired by cash, or the fair value of the equity securities issued if it is acquiredthrough issuance of equity securities, or determined in accordance with the Accounting Standards forBusiness Enterprises No. 12 -- Debt Restructuring if it is acquired through debt restructuring, ordetermined in accordance with the Accounting Standards for Business Enterprises No. 7 -- Exchange ofNon-monetary Assets if it is acquired through exchange of non-monetary assets.
3. Subsequent measurement and recognition of profit or loss
Long-term equity investments in investees are measured using the cost method. Long-term equityinvestments in associates and joint ventures are measured using the equity method.
4. Disposal of investment in a subsidiary through multiple transactions by steps until loss of controlover the subsidiary
(1) Separate financial statements
The difference between the carrying amount of the equity disposed of and the proceeds of disposalactually received is recognized in profit or loss for the current period. If the remaining equity empowersthe Company to exercise significant influence or joint control over the investee, the remaining equity isaccounted for using the equity method; if the remaining equity does not empower the Company to exercisecontrol, joint control or significant influence over the investee, the remaining equity is accounted for inaccordance with the Accounting Standards for Business Enterprises No. 22 -- Recognition andMeasurement of Financial Instruments.
(2) Consolidated financial statements
1) Disposal of investment in a subsidiary through multiple transactions by steps until loss of controlover the subsidiary which does not constitute a package deal
Prior to the loss of control, the difference between the proceeds from disposal and the share ownedby the Company in the net assets of the subsidiary in relation to the long-term equity investment disposedof that is calculated continuously from the date of acquisition or combination is adjusted against the capitalreserve (capital premium). In case the capital premium is not sufficient to absorb the difference, theremaining balance is adjusted against the retained earnings.
When losing control over a subsidiary, the remaining equity is re-measured at its fair value at the dateof loss of control. The sum of the consideration received from the disposal of the equity and the fair valueof the remaining equity, net of the share owned by the Company in the net assets of the subsidiary inrelation to the long-term equity investment disposed of as calculated continuously from the date ofacquisition or combination according to the previous shareholding ratio, is recognized in the investment
income for the period in which the control is lost, and the goodwill is reduced accordingly. Othercomprehensive income relating to the equity investment in the subsidiary is transferred to the investmentincome for the period in which the control is lost.
2) Disposal of investment in a subsidiary through multiple transactions by steps until loss of controlover the subsidiary which constitutes a package dealThe Company accounts for such transactions as one transaction to dispose of and lose its control overthe subsidiary. However, the difference between the proceeds from each disposal before loss of controland the share owned by the Company in the net assets of the subsidiary in relation to the investmentdisposed of is recognized in other comprehensive income in the consolidated financial statements, whichis wholly transferred to the profit or loss in the period in which the control is lost.
22. Investment properties
(1). Measured at cost
Depreciation or amortization methodsN/A
23. Fixed assets
(1). Criteria for recognition
√ Applicable□ N/A
Fixed assets are tangible assets held for production of goods, rendering of service, lease or operationand management with a useful life of more than one accounting year. A fixed asset is recognized if theeconomic benefits relating to it are very likely to flow to the Company and its cost can be reliably measured.
(2). Method of depreciation
√ Applicable□ N/A
Category | Method of depreciation | Depreciation period (years) | Residual value rate (%) | Annual depreciation rate (%) |
Machinery and equipment | Straight line method | 5 | 5.00 | 19.00 |
Transportation equipment | Straight line method | 5 | 5.00 | 19.00 |
Electronic equipment and others | Straight line method | 3-5 | 5.00 | 19.00-31.67 |
Operating leased equipment | Straight line method | 3, 7 | 5.00% | 31.67%, 13.57% |
2. When a construction in progress is ready for intended use, it is transferred to fixed assets at itsactual construction cost. A construction in progress that is ready for intended use but the final settlementof which has not yet been completed is transferred to fixed assets at estimated value first, and after thecompletion of final settlement, the estimated value is adjusted according to the actual cost, but the accrueddepreciation is not adjusted.
25. Borrowing costs
√ Applicable□ N/A
1. Recognition for capitalization of borrowing costs
Borrowing costs incurred by the Company that are directly attributable to the acquisition,construction or production of a qualifying asset are capitalized as part of the cost of that asset. Otherborrowing costs are recognized as expenses and charged to the current profit or loss.
2. Period for capitalizing borrowing expenses
(1) Borrowing expenses are capitalized when all of the following conditions are met: 1) capitalexpenditure has been incurred; 2) borrowing expenses have been incurred; and 3) activities relating to theacquisition, construction or production of the asset that are necessary to prepare the asset for its intendeduse or sale have commenced.
(2) Where acquisition and construction or production of a qualified asset is interrupted abnormallyand the interruption period lasts for more than 3 months, the capitalization of the borrowing costs shall besuspended. The borrowing expenses incurred during these periods shall be recognized as expenses for thecurrent period until the acquisition, construction or production of a qualifying asset is resumed.
(3) Capitalization of borrowing expenses shall be ceased when acquisition, construction or productionof the qualifying asset has prepared for its intended use or sale.
3. Capitalization rate and capitalization amount of borrowing expenses
As for the specific borrowings for the acquisition and construction or production of assets qualifyingfor capitalization, the to-be-capitalized amount of interests shall be determined in light of the actual costincurred on the current specific borrowings (including the amortization of discounts or premiumsdetermined using the effective interest method) minus the income of interests earned from the unusedborrowings by depositing it in the bank or investment income from such borrowing by making it as atemporary investment; where a general borrowing is used for the acquisition and construction orproduction assets qualifying for capitalization, the Company shall calculate and determine the to-be-capitalized amount of interests on the general borrowing by multiplying the weighted average value of theaccumulative expenditures to asset minus the specific borrowing by the capitalization rate of the generalborrowing used.
26. Biological assets
□ Applicable√ N/A
27. Oil and gas assets
□ Applicable√ N/A
28. Use right assets
√ Applicable□ N/A
Refer to V.42 of Section X for details.
29. Intangible assets
(1). Measurement, service life and impairment test
√ Applicable□ N/A
1.Intangible assets include land use rights, patents, and software etc. and are measured at cost initially.An intangible asset with a finite useful life is amortized over its useful life in a systematical andrational expected realization of economic benefits relative to the intangible asset, or is amortized using thestraight-line method if it is impossible to determine expected realization reliably. The specific years are asfollows:
Item | Amortization period(years) |
Land use rights | 30 |
Patents | 10 |
Software | 3-5 |
33. Employee benefits
The Employee benefits encompass short-term employee benefits, post-employment benefits,termination benefits and other long-term employee benefits.
(1) Accounting treatment of short-term employee benefits
√ Applicable□ N/A
The short-term employee benefits actually incurred are recognized as liabilities in the accountingperiod during which employee services are rendered, and included in profit or loss for the current periodor the cost of related assets.
(2) Accounting treatment of post-employment benefits
√ Applicable□ N/A
Post-employment benefits are classified into defined contribution plans and defined benefit plans.
(1) In the accounting period during which employee services are rendered, the amount in contributionas calculated according to the defined contribution plan is recognized as liabilities and included in profitor loss for the current period or the cost of related assets.
(2) The accounting treatment of a defined benefit plan generally involves the following steps:
1) According to the projected unit credit method, use the unbiased and consistent actuarialassumptions to estimate demographic variables and financial variables, measure the obligation arisingfrom the defined benefit plan and determine the period to which the relevant obligation belongs.Meanwhile, discount the obligation arising from the defined benefit plan, in order to determine the presentvalue of the benefit plan obligation and the current service cost.
2) If the defined benefit plan has assets, the deficit or surplus resulting after reducing the presentvalue of the defined benefit plan obligation by the fair value of the defined benefit plan is recognized as anet liability or asset of the defined benefit plan. If the defined benefit plan has a surplus, the net assets ofthe defined benefit plan are measured at the lower of surplus in the defined benefit plan and asset ceiling;
3) At the end of the reporting period, the cost of employee benefits arising from the defined benefitplan is recorded as service cost, net interest on the net liabilities or net assets of the defined benefit plan,and changes arising from re-measurement of the net liabilities or net assets of the defined benefit plan,wherein the service cost and the net interest on the net liabilities or net assets of the defined benefit planare included in profit or loss for the current period or the cost of related assets, and the changes arisingfrom re-measurement of the net liabilities or net assets of the defined benefit plan are included in othercomprehensive income, which will not be reserved to profit or loss in subsequent periods, but may betransferred within the scope of equity.
(3) Accounting treatment of termination benefits
√ Applicable□ N/A
When the Company can no longer withdraw the offer of termination benefits as a result of terminationof employment or redundancy, or recognizes the restructuring costs or expenses relating to payment oftermination benefits, whichever the earlier, the employee benefit liabilities arising from recognition oftermination benefits are recognized in profit or loss for the current period.
(4) Accounting treatment of other long-term employee benefits
√ Applicable□ N/A
Other long-term employee benefits are accounted for in accordance with the provisions applicable todefined contribution plans if they are qualified as defined contribution plans, otherwise, are accounted forin accordance with the provisions applicable to defined benefit plans. In order to simplify the accountingtreatment, the total net amount of the cost of employee benefits arising from the defined benefit plans that
is recorded as service cost, net interest on the net liabilities or net assets of other long-term employeebenefits, changes arising from re-measurement of the net liabilities or net assets of other long-termemployee benefits and other components is included in profit or loss for the current period or the cost ofrelated assets.
34. Leasing liabilities
√ Applicable□ N/A
Refer to V.42 of Section X for details.
35. Provisions
√ Applicable□ N/A
1. An obligation arising from any external guarantee, instigation, product quality warranty, onerouscontract or other contingencies is recognized as a provision if it is a present obligation assumed by theCompany, and it is probable that an outflow of resources embodying economic benefits will be requiredto settle the obligation, and the amount of the obligation can be reliably measured.
2.The amount recognized as a provision is the best estimate of the consideration required to settle thepresent obligation. The carrying amount of provisions is reviewed at the balance sheet date.
36. Share-based payments
√ Applicable□ N/A
1. Categories of share-based payments
Share-based payments include equity-settled share-based payments and cash-settled share-basedpayments
2. Accounting treatment for implementation, modification and termination of share-based paymentplan
(1) Equity-settled share-based payments
Equity-settled share-based payments in exchange for services rendered by employees that can beexecuted immediately upon being granted, are measured at the fair value of the equity instruments at thegrant date, and recognized as related costs or expenses with a corresponding adjustment to capital reserve.At each balance sheet date during the vesting period, equity-settled share-based payments in exchange forservices rendered by employees that cannot be executed until services in the vesting period are completedor required performance conditions are satisfied, are measured at the fair value of the equity instrumentsat the grant date based on the best estimate of exercisable numbers of equity instruments, and recognizedas related costs or expenses with a corresponding adjustment to capital reserve.
For equity-settled share-based payments in exchange for services rendered by other parties, if the fairvalue of services from other parties can be measured reliably, they are measured at the fair value of servicesfrom other parties at the date when such services are received. If the fair value of services from otherparties cannot be measured reliably but the fair value of the equity instruments can be measured reliably,they are measured at the fair value of the equity instruments at the date when such services are received.The fair value of the equity instruments are recognized as related costs or expenses, with a correspondingincrease in owners' equity.
(2) Cash-settled share-based payments
Cash-settled share-based payments in exchange for services rendered by employees that can beexecuted immediately upon being granted, are recognized as related costs or expenses based on the fairvalue of liabilities assumed by the Company at the grant date, with a corresponding increase in liability.At each balance sheet date during the vesting period, cash-settled share-based payments in exchange for
services rendered by employees that cannot be executed until services in the vesting period are completedor required performance conditions are satisfied, are measured at the fair value of liabilities assumed bythe Company based on the best estimate of exercisable conditions, and recognized as related costs orexpenses and relevant liabilities.
(3) Modification and termination of share-based payment plan
In case the Company modifies a share-based payment plan, if the modification increases the fair valueof the equity instruments granted, the Company will include the incremental fair value of the equityinstruments granted in the measurement of the amount recognized for services received. If themodification increases the number of the equity instruments granted, the Company will include the fairvalue of additional equity instruments granted in the measurement of the amount recognized for servicesreceived. If the Company modifies the exercisable conditions of the share-based payment plan in a mannerbeneficial to the employee, the Company will consider the modified exercisable conditions when dealingwith exercisable conditions.
If the modification decreases the fair value of the equity instruments granted, the Company willcontinue to measure the amount recognized for services received at the fair value of the equity instrumentsat the grant date without including the decremental fair value of the equity instruments. If the modificationdecreases the number of the equity instruments granted, the Company will treat the decreased number asthe cancelled number of equity instruments granted. If the Company modifies the exercisable conditionsin a manner unbeneficial to the employee, the Company will not consider the modified exercisableconditions when dealing with exercisable conditions.
If cancellation or settlement of the equity instruments granted occurs (not due to unsatisfaction ofexercisable conditions) during the vesting period, the Company will account for the cancellation orsettlement of the equity instruments granted as an acceleration of vesting, and recognize immediately theamount that otherwise would have been recognized over the remainder of the vesting period.
37. Preferred shares, perpetual bonds and other financial instruments
□ Applicable√ N/A
38. Revenue
(1). Accounting policies adopted for income recognition and measurement
√ Applicable□ N/A
1. Principles for revenue recognition
On the commencement date of a contract, the Company evaluates the contract, identifies eachindividual performance obligation contained therein and determine whether each individual performanceobligation is performed over time or at a certain point in time.
When meeting one of the following criteria, it belongs to the obligation performed over time,otherwise it constitutes the obligation performed at a certain point in time: (1) the customer obtains andconsumes the economic benefits generated by the Company’s performance when the Company performsthe contract; (2) the customer can control the products under construction in the process of the Company’sperformance; (3) the products produced in the process of the Company’s performance have irresplaceableuses, and the Company has the right to collect payment for the cumulative performance that has beencompleted up to date throughout the term of the contract.
For the obligation performed over time, the Company recognizes the revenue based on theperformance progress over time. When the performance progress cannot be reasonably determined, andthe costs incurred are expected to be recoverable, revenue is recognized to the extent of costs incurreduntil the performance progress can be reasonably determined. For the obligation performed at a certain
point in time, the revenue is recognized at the time point when the customer obtains the control of therelated goods and services. When judging whether the customer has obtained the control of goods, theCompany considers the followings signs: (1) the Company has the current right to receive payment forsuch goods, that is, the customer has the current obligation to make payment for such goods; (2) theCompany has transferred the legal ownership of such goods to the customer, that is, the customer has thelegal ownership of such goods; (3) the Company has transferred such goods to the customer physically,that is, the customer has taken possession of such goods physically; (4) the Company has transferredmaterial risks and rewards of such goods to the customer, that is, the customer has obtained material risksand rewards of such goods; (5) the customer has accepted such goods; and (6) other signs that the customerhas obtained control of such goods.
2. Principles for revenue measurement
(1) The Company measures revenue based on the transaction price allocated to each individualperformance obligation. The transaction price is the amount of consideration to which the Company isentitled arising from the transfer of goods or services to the customer, excluding the amount collected onbehalf of a third party and expected to be returned to the customer.
(2) If there is variable consideration in the contract, the Company determines the best estimate of thevariable consideration based on the expected value or the most likely amount. However, variableconsideration is included in the transaction price if, and to the extent that, it is highly probable that itsinclusion will not result in a significant revenue reversal of accumulatively recognized revenue in thefuture when the uncertainty has been subsequently resolved.
(3) If there is a major financing component in the contract, the Company determines the transactionprice based on the presumed amount payable in cash when the customer obtains the control of goods orservices. The difference between such transaction price and the contract consideration is amortized overthe period of the contract using the effective interest method. If on the commencement of a contract, theCompany expects that the customer’s acquisition of control of goods or services is not more than one yearfrom the customer’s payment therefor, the major financing component in the contract will not beconsidered.
(4) If the contract has two or multiple performance obligations, the Company, on the commencementof a contract, allocates the transaction price to each individual performance obligation in the contract byreference to relative standalone selling prices of goods promised thereby.
3. Specific methods for revenue recognition
(1) Revenue from sales of goods
The performance obligation concerning sales of goods (primarily dividing into goods sold to thedomestic market and goods exported to overseas markets) by the Company is taken as one satisfied at acertain point in time for the recognition of revenue.
Goods sold to the domestic market: 1) Under the direct sale model and the distribution model, theCompany recognizes the revenue when the goods sent have been delivered to customers with customers’receipt given to the Company. For goods sold attached with return conditions, the Company recognizesthe revenue according to the amount of consideration to which it expects to be entitled in exchange fortransferring goods to customers, and recognize the liabilities according to the expected amount to bereturned due to sales return against the revenue; for goods required for installment and inspection aftersales, the Company recognizes the revenue when such goods have been installed and inspected withcustomers’ acceptance certificate given to the Company; for goods sold to lower-tier end customers whoseselling profits are shared by the Company, the Company recognizes the revenue when such goods aredelivered to the customers and reconciliation is conducted according to the mutually predetermined priceof the goods, and recognizes the share of the profits when the selling profits of the goods are realizedaccording to the share statement. 2) Under the commissioned sales model, the Company recognizes therevenue when it receives the list of commissioned sales from the customer.
Goods exported to overseas markets: The Company mainly adopts FCA for export of goods. Underthis mode, the Company recognizes revenue when it delivers goods at the designated location with exportcustoms clearance procedures completed.
(2) Other incomes
Any other performance obligation of the Company is taken as one satisfied over time/at a certainpoint in time for the recognition of revenue. For installation services provided by the Company, theCompany recognizes the revenue when it has completed the services and received customers’ acceptancecertificate; for repair and maintenance services provided by the Company, the Company recognizes therevenue when it has completed the services and received payments; for patent licensing services providedby the Company, the Company recognizes the revenue when the patent licensing is completed and handedover; and for technology development services provided by the Company, the Company recognizes therevenue when it has completed the services or when the agreed time point of service acceptance is reached.
(2). Description of differences in the accounting policies in revenue recognition due to different
operating modes adopted for the same business type
□ Applicable√ N/A
39. Contract costs
√ Applicable□ N/A
1. Costs for contract acquisition
The incremental costs incurred for acquiring the contract (i.e. costs that will not be incurred withoutacquisition of the contractt) are recognized as an asset if they are expected to be recovered, and areamortized on the same basis as that for recognizing the revenue of goods or services relating to such assetand included in the current profit or loss. Where the amortization period for such asset is less than oneyear, the Company includes the costs in the current profit or loss when they are incurred. Otherexpenditures incurred by the Company for obtaining the contract are included in current profit or losswhen they are incurred, except for those specified to be borne by the customer.
2. Costs for contract performance
The costs incurred by the Company for performing a contract are recognized as an asset if they donot fall within the scope of Accounting Standards for Business Enterprises other than those concerningrevenue and meet all the following conditions: (1) the costs are directly related to a present or expectedcontract; (2) the costs lead to the increase in resources of the Company for fulfilling its performanceobligations in the future; and (3) the costs are expected to be recovered. The aforesaid asset is amortizedon the same basis as that for recognizing the revenue of goods or services relating to such asset andincluded in the current profit or loss.
40. Government grants
√ Applicable□ N/A
1. Government grants are recognized if (1) the Company meets the conditions attaching to thegovernment grants; and (2) the Company will receive the government grants. Government grants in theform of monetary assets are measured at the amount received or receivable. Government grants in theform of non-monetary assets are measured at fair value, or if their fair value is unavailable, at nominalamount.
2. Determination and accounting treatment of government grants related to assets
Government grants related to assets are government grants which are offered for purchasing,constructing or otherwise acquiring long-term assets as provided by the applicable government documents.In the absence of such express provision in the applicable government documents, government grants
related to assets are those with a primary condition that the Company should purchase, construct orotherwise acquire long-term assets. Government grants related to assets are offset against the carryingamount of the relevant assets or recognized as deferred income. Government grants related to assetsrecognized as deferred income shall be included in profit or loss over the service life of the relevant assetson a reasonable and systemic basis. Government grants measured at nominal amount are directlyrecognized in profit or loss for the current period. In case of sale, transfer, retirement or damage of therelevant assets before the end of intended service life, the balance of the unallocated deferred income istransferred to profit or loss for the period in which the assets are disposed of.
3. Determination and accounting treatment of government grants related to incomeGovernment grants related to income are government grants other than those related to assets.Government grants related to both assets and income in which it is difficult to make a distinction betweenthe portion related to assets and the portion related to income are wholly classified as government grantsrelated to income. Government grants related to income as compensation for expenses or losses to beincurred in subsequent periods are recognized as deferred income and in the period for recognizing therelevant costs, expenses or losses, included in profit or loss for the current period or offset against therelevant costs. Government grants related to income as compensation for expenses or losses alreadyincurred are directly included in profit or loss for the current period or offset against the relevant costs.
4. Government grants related to daily operations of the Company are recognized in other income oroffset against the relevant costs and expenses depending on the nature of economic business. Governmentgrants not related to daily operations of the Company are recognized in non-operating income or expenses.
5. Accounting treatment of policy preferential loans and interest subsidies
(1) If the Ministry of Finance appropriates the interest subsidies to the lending bank, who then grantsthe loan to the Company at the policy preferential rate, the loan is stated as the amount actually received,and the borrowing cost is calculated according to the principal of the loan and the policy preferential rate.
(2) If the Ministry of Finance directly appropriates the interest subsidies to the Company, the interestsubsidies are offset against the borrowing cost.
41. Deferred tax assets and deferred tax liabilities
√ Applicable□ N/A
1. The difference between the tax base of an asset or liability and its carrying amount (or in case ofan item not recognized as asset or liability whose tax base can be determined according to the applicabletax law, the difference between its tax base and carrying amount) is recognized as a deferred tax asset ordeferred tax liability according to the tax rate applicable to the period in which the asset or liability isexpected to be recovered or settled.
2. Deferred income tax assets are recognized to the extent of the amount of income tax payable thatwill be available in future periods against which deductible temporary differences are deductible. At thebalance sheet date, deferred tax assets not recognized in prior periods are recognized if there’s conclusiveevidence that it is probable that sufficient taxable income will be available in future periods against whichthe deductible temporary differences are deductible.
3. At the balance sheet date, the carrying amount of deferred income tax assets is reviewed andreduced to the extent that it is no longer probable that sufficient taxable income will be available in futureperiods to allow the benefit of the deferred tax assets to be utilized. If it is probable that sufficient taxableincome will be available, the reduced amount is reversed.
4. The income taxes and deferred income taxes are included in profit or loss for the current period asincome tax expenses or gains, except the income taxes arising from any: (i) business combination; or (ii)transaction or event directly recognized in owners’ equity.
42. Leases
(1). Accounting treatment of operating leases
□ Applicable√ N/A
(2). Accounting treatment of finance leases
□ Applicable√ N/A
(3). Method for determination and accounting treatments of lease under new lease standards
√ Applicable□ N/A
A contract whereby the Company transfers or obtains the right to control the use of one or moreidentified assets for a certain period of time in exchange for consideration or against payment ofconsideration is a lease. On the commencement date of a contract, the Company assesses whether thecontract is a lease or includes a lease.
1. The Company as lessee
(1) Initial measurement
On the lease inception date, except short-term leases and low-value assets leases, the Companyrecognizes the right to use the leased asset during the lease term as use right assets, and recognizes thepresent value of the lease payments that have not been paid as lease liabilities. When calculating thepresent value of the lease payments, the interest rate implicit in the lease is adopted as the discount rate;or the lessee’s incremental borrowing rate is adopted as the discount rate where it is unable to determinethe interest rate implicit in the lease.
(2) Subsequent measurement
The Company accrues depreciation for the use right assets using the straight-line method. Wherethere is reasonable certainty that the Company will obtain ownership of the leased assets upon expiry ofthe lease term, the leased assets are depreciated over its residual useful life. Where there is no reasonablecertainty that the Company will obtain ownership of the leased assets upon expiry of the lease term, theleased assets are depreciated over the lease term or the residual useful life of the leased assets, whicheveris shorter.
As to a lease liability, the Company calculate the interest expense of the lease liability during eachperiod of the lease term according to the fixed periodic interest rate, and include it in the current profit orloss or the relevant asset costs. Variable lease payment not included in the measurement of lease liabilityis included in the current profit or loss or the relevant asset costs when actually incurred.
Where, after the lease inception date, there are changes in the substantial fixed payment, the payablesexpected on the basis of the residual value of the guarantee, the index or ratio used for determining thelease payment, the evaluation results or actual exercising of purchase option, renewal option or leasetermination option, the Company re-measures the lease liability as per the present value of the leasepayment after change, and adjust the book value of the use right assets accordingly. Where the book valueof the use right asset has been reduced to zero, but the lease liability still needs to be further reduced, theCompany includes the residual amount in the current profit or loss.
(3) Short-term lease and low-value assets lease
For short-term lease (a lease with a lease term of not more than 12 months from the lease inceptiondate) and low-value assets lease, the Company adopts simplified treatment method and does not recognizethe use right assets and lease liability, who instead includes the lease payment therefor in the relevant assetcosts and the current profit or loss by the straight-line method or other systematic method during all periodsin the lease term.
2. The Company as lessor
A lease is classified into finance lease or operating lease on the lease inception date based on thesubstance of the transaction. Financing lease means a lease that has substantially transferred almost all
risks and remunerations concerning the ownership of the leased assets. Operating lease means a lease otherthan financing lease.
(1) Operating lease
The Company recognizes the lease receipts of operating lease as rental income by the straight-linemethod during all periods in the lease term. Variable lease payment that is relevant to operating lease, andthat is not included in lease receipts is included in the current profit or loss when actually incurred.
(2) Finance lease
On the lease inception date, the Company recognizes the receivable financing lease andderecognizes the financing leased assets. The receivable financing lease is initially measured according tothe net investment in the lease (i.e. the sum of the unguaranteed residual value and the unreceived presentlease receipts discounted at the interest rate implicit in the lease on the lease inception date), and theinterest income during the lease term is calculated and recognized at the fixed periodic interest rate.Variable lease payment of the Company not included in the measurement of net investment in the lease isincluded in the current profit or loss when actually incurred.
43. Other significant accounting policies and accounting estimates
□ Applicable√ N/A
44. Changes in significant accounting policies and accounting estimates
(1). Changes in significant accounting policies
√ Applicable□ N/A
Changes in accounting policies and associated reasons | Approval procedures | Remarks (name and amount of line items in financial statements that have been materially affected) |
Implement the Accounting Standard for Business Enterprises No. 21 - Leases (Cai Kuai [2018] No. 35) amended and released by the Ministry of Finance | Approved by the management of the Company | Refer to V. 44. (3) for details |
Item | December 31, 2020 | January 1, 2021 | Adjusted amount |
Current Assets: | |||
Cash and bank balances | 1,037,760,573.27 | 1,037,760,573.27 | |
Balances with clearing agencies | |||
Placements with banks and other financial institutions | |||
Held-for-trading financial assets | 114,000,000.00 | 114,000,000.00 | |
Derivative financial assets | |||
Notes receivable | 3,726,328.91 | 3,726,328.91 | |
Accounts receivable | 341,660,832.43 | 341,660,832.43 | |
Receivables financing | 11,959,000.00 | 11,959,000.00 | |
Prepayments | 47,447,601.43 | 49,174,631.52 | 1,727,030.09 |
Premiums receivable | |||
Amounts receivable under reinsurance contracts | |||
Reinsurer's share of insurance contract reserves | |||
Other receivables | 12,534,062.15 | 12,534,062.15 | |
Including: Interest receivable | |||
Dividends receivable | |||
Financial assets purchased under resale agreements | |||
Inventories | 418,812,140.80 | 418,812,140.80 | |
Contract assets | 3,744,655.50 | 3,744,655.50 | |
Held-for-sale assets | |||
Non-current assets due within one year | |||
Other current assets | 13,002,195.46 | 13,002,195.46 | |
Total Current Assets | 2,004,647,389.95 | 2,006,374,420.04 | 1,727,030.09 |
Non-current Assets: | |||
Loans and advances | |||
Debt investments | |||
Other debt investments | |||
Long-term receivables | 13,196,087.78 | 13,196,087.78 | |
Long-term equity investments | 262,744,772.48 | 262,744,772.48 | |
Other equity instrument investments | 11,975,419.38 | 11,975,419.38 | |
Other non-current financial assets | |||
Investment properties | |||
Fixed assets | 447,571,328.91 | 447,571,328.91 | |
Construction in progress | 51,576,850.72 | 51,576,850.72 | |
Bearer biological assets |
Oil and gas assets | |||
Use right assets | 39,368,070.17 | 39,368,070.17 | |
Intangible assets | 320,488,235.60 | 320,488,235.60 | |
Development expenditure | |||
Goodwill | |||
Long-term prepaid expenses | 11,572,346.79 | 11,572,346.79 | |
Deferred tax asset | 96,132,114.02 | 96,455,790.38 | 323,676.36 |
Other non-current assets | 6,299,781.06 | 6,299,781.06 | |
Total Non-current Assets | 1,221,556,936.74 | 1,261,248,683.27 | 39,691,746.53 |
Total assets | 3,226,204,326.69 | 3,267,623,103.31 | 41,418,776.62 |
Current Liabilities: | |||
Short-term borrowings | 88,778,852.86 | 88,778,852.86 | |
Loans from the central bank | |||
Taking from banks and other financial institutions | |||
Held-for-trading financial liabilities | |||
Derivative financial liabilities | |||
Notes payable | 116,822,674.67 | 116,822,674.67 | |
Accounts payable | 226,494,815.90 | 226,494,815.90 | |
Receipts in advance | 153,258,189.88 | 153,258,189.88 | |
Contract liabilities | 31,518,312.59 | 31,518,312.59 | |
Financial assets sold under repurchase agreements | |||
Customer deposits and deposits from banks and other financial institutions | |||
Funds from securities trading agency | |||
Funds from underwriting securities agency | |||
Employee benefits payable | 46,105,566.15 | 46,105,566.15 | |
Taxes payable | 19,871,846.94 | 19,871,846.94 | |
Other payables | 59,848,053.83 | 58,821,952.01 | -1,026,101.82 |
Including: Interest payable | |||
Dividends payable | |||
Fees and commissions payable | |||
Amounts payable under reinsurance contracts | |||
Held-for-sale liabilities | |||
Non-current liabilities due within one year | 181,417,412.46 | 200,024,423.85 | 18,607,011.39 |
Other current liabilities | 3,045,831.07 | 3,045,831.07 | |
Total Current Liabilities | 927,161,556.35 | 944,742,465.92 | 17,580,909.57 |
Non-current Liabilities: | |||
Insurance contract reserves |
Long-term borrowings | 64,845,281.53 | 64,845,281.53 | |
Bonds payable | |||
Including: Preferred shares | |||
Perpetual bonds | |||
Leasing liabilities | 23,804,845.36 | 23,804,845.36 | |
Long-term accounts payable | 3,262,450.00 | 3,262,450.00 | |
Long-term employee benefits payable | |||
Provisions | 28,799,354.65 | 28,799,354.65 | |
Deferred income | 16,723,257.15 | 16,723,257.15 | |
Deferred tax liabilities | |||
Other non-current liabilities | |||
Total Non-current Liabilities | 113,630,343.33 | 137,435,188.69 | 23,804,845.36 |
Total Liabilities | 1,040,791,899.68 | 1,082,177,654.61 | 41,385,754.93 |
Owners' (or Shareholders') Equity: | |||
Paid-in capital (or share capital) | 452,756,901.00 | 452,756,901.00 | |
Other equity instruments | |||
Including: Preferred shares | |||
Perpetual bonds | |||
Capital reserve | 1,249,020,991.15 | 1,249,020,991.15 | |
Less: Treasury shares | |||
Other comprehensive income | -3,214,291.93 | -3,214,291.93 | |
Special reserve | |||
Surplus reserve | 35,242,179.57 | 35,242,179.57 | |
General risk reserve | |||
Retained profits | 357,793,891.96 | 357,838,162.29 | 44,270.33 |
Total owners’ (or shareholders’) equity attributable to owners of the Parent Company | 2,091,599,671.75 | 2,091,643,942.08 | 44,270.33 |
Minority interests | 93,812,755.26 | 93,801,506.62 | -11,248.64 |
Total Owners’ (or Shareholders’) Equity | 2,185,412,427.01 | 2,185,445,448.70 | 33,021.69 |
Total Liabilities and Owners’(or Shareholders’) Equity | 3,226,204,326.69 | 3,267,623,103.31 | 41,418,776.62 |
Item | December 31, 2020 | January 1, 2021 | Adjusted amount |
Current Assets: | |||
Cash and bank balances | 709,932,686.71 | 709,932,686.71 | |
Held-for-trading financial assets | 114,000,000.00 | 114,000,000.00 | |
Derivative financial assets | |||
Notes receivable | 2,314,628.91 | 2,314,628.91 | |
Accounts receivable | 567,539,506.79 | 567,539,506.79 | |
Receivables financing | 100,000.00 | 100,000.00 | |
Prepayments | 11,001,439.23 | 13,163,045.06 | 2,161,605.83 |
Other receivables | 71,654,117.57 | 71,654,117.57 | |
Including: Interest receivable | |||
Dividends receivable | |||
Inventories | 169,022,971.44 | 169,022,971.44 | |
Contract assets | 3,720,160.50 | 3,720,160.50 | |
Held-for-sale assets | |||
Non-current assets due within one year | |||
Other current assets | 1,297,388.01 | 1,297,388.01 | |
Total Current Assets | 1,650,582,899.16 | 1,652,744,504.99 | 2,161,605.83 |
Non-current Assets: | |||
Debt investments | |||
Other debt investments | |||
Long-term receivables | 13,196,087.78 | 13,196,087.78 | |
Long-term equity investments | 421,648,284.99 | 421,648,284.99 | |
Other equity instrument investments | 7,075,419.38 | 7,075,419.38 | |
Other non-current financial assets | |||
Investment properties | |||
Fixed assets | 57,409,189.33 | 57,409,189.33 | |
Construction in progress | 37,982,329.74 | 37,982,329.74 | |
Bearer biological assets | |||
Oil and gas assets | |||
Use right assets | 29,494,047.23 | 29,494,047.23 | |
Intangible assets | 319,438,893.42 | 319,438,893.42 | |
Development expenditure | |||
Goodwill | |||
Long-term prepaid expenses | 9,562,162.36 | 9,562,162.36 | |
Deferred tax asset | 6,680,188.67 | 7,000,018.34 | 319,829.67 |
Other non-current assets | 5,411,561.28 | 5,411,561.28 | |
Total Non-current Assets | 878,404,116.95 | 908,217,993.85 | 29,813,876.90 |
Total assets | 2,528,987,016.11 | 2,560,962,498.84 | 31,975,482.73 |
Current Liabilities: | |||
Short-term borrowings | 11,410,560.27 | 11,410,560.27 | |
Held-for-trading financial liabilities |
Derivative financial liabilities | |||
Notes payable | 32,313,678.21 | 32,313,678.21 | |
Accounts payable | 210,885,240.65 | 210,885,240.65 | |
Receipts in advance | 2,688,210.54 | 2,688,210.54 | |
Contract liabilities | 20,609,190.34 | 20,609,190.34 | |
Employee benefits payable | 28,514,763.09 | 28,514,763.09 | |
Taxes payable | 5,830,858.89 | 5,830,858.89 | |
Other payables | 23,058,804.83 | 23,058,804.83 | |
Including: Interest payable | |||
Dividends payable | |||
Held-for-sale liabilities | |||
Non-current liabilities due within one year | 1,001,024.66 | 15,192,394.42 | 14,191,369.76 |
Other current liabilities | 1,918,391.60 | 1,918,391.60 | |
Total Current Liabilities | 338,230,723.08 | 352,422,092.84 | 14,191,369.76 |
Non-current Liabilities: | |||
Long-term borrowings | 29,029,715.07 | 29,029,715.07 | |
Bonds payable | |||
Including: Preferred shares | |||
Perpetual bonds | |||
Leasing liabilities | 17,434,875.25 | 17,434,875.25 | |
Long-term accounts payable | 3,262,450.00 | 3,262,450.00 | |
Long-term employee benefits payable | |||
Provisions | 16,345,891.60 | 16,345,891.60 | |
Deferred income | 14,450,411.10 | 14,450,411.10 | |
Deferred tax liabilities | |||
Other non-current liabilities | |||
Total Non-current Liabilities | 63,088,467.77 | 80,523,343.02 | 17,434,875.25 |
Total Liabilities | 401,319,190.85 | 432,945,435.86 | 31,626,245.01 |
Owners' (or Shareholders') Equity: | |||
Paid-in capital (or share capital) | 452,756,901.00 | 452,756,901.00 | |
Other equity instruments | |||
Including: Preferred shares | |||
Perpetual bonds | |||
Capital reserve | 1,351,261,718.84 | 1,351,261,718.84 | |
Less: Treasury shares | |||
Other comprehensive income | |||
Special reserve | |||
Surplus reserve | 33,964,638.84 | 33,964,638.84 | |
Retained profits | 289,684,566.58 | 290,033,804.30 | 349,237.72 |
Total Owners’ (or Shareholders’) Equity | 2,127,667,825.26 | 2,128,017,062.98 | 349,237.72 |
Total Liabilities and Owners’(or Shareholders’) Equity | 2,528,987,016.11 | 2,560,962,498.84 | 31,975,482.73 |
Category of tax | Basis of tax computation | Tax rate |
Value-added tax (VAT) | VAT payable is the output tax based on the sales of goods and taxable labor income calculated pursuant to the tax law, net of the input tax that is allowed to be deducted in the current period | 3%, 6%, 9%, 13% |
City maintenance and construction tax | Turnover tax payable | 5%, 7% |
Enterprise income tax | Taxable income | 8.25%, 8.70%, 8.84%, 15%, 16.5%, 20%, 21%, 25% |
Education surcharges | Turnover tax payable | 3% |
Local education surcharges | Turnover tax payable | 2% |
Taxpayer | Rate of enterprise income tax (%) |
Appotronics Corporation Limited | 15.00 |
Fengmi (Beijing) Technology Co., Ltd. | 15.00 |
Appotronics Hong Kong Limited | 8.25, 16.50 |
Beijing Orient Appotronics Technology Co., Ltd. | 20.00 |
Fabulus Technology HongKong Limited | 16.50 |
JoveAI Innovation,Inc. | 8.70, 8.84, 21.00 |
Appotronics USA,Inc. | 21.00 |
FORMOVIE TECHNOLOGY INC | 21.00 |
JoveAI Limited | Tax exemption |
WEMAX LLC | 21.00 |
Shenzhen Appotronics Display Device Co., Ltd. | 20.00 |
Appotronics Technology (Changzhou) Co., Ltd. | 20.00 |
Appotronics Timewaying (Beijing) Technology Co., Ltd. | 20.00 |
Qingda Appotronics (Xiamen) Technology Co., Ltd. | 20.00 |
Shenzhen Appotronics Home Line Technology Co., Ltd. | 20.00 |
Shenzhen Appotronics Laser Technology Co., Ltd. | 20.00 |
Shenzhen Appotronics Xiaoming Technology Co., Ltd. | 20.00 |
JoveAI Asia Company Limited | 20.00 |
Tianjin Bainian Film Partnership (LP) | Tax exemption |
Other taxpayers except above | 25.00 |
Administration with a valid term of three years. It can pay the enterprise income tax at a rate of 15% since2019.
3. In accordance with the Notice of the Ministry of Finance and the State Administration of Taxationon Value-added Tax Policies for Software Products (Cai Shui [2011] No.100), for self-developed andproduced software products sold by general VAT taxpayers, the tax-refund-upon-collection policy isapplicable to the part of their actual VAT burden in excess of 3% after the VAT has been collected.Shenzhen Appotronics Software Technology Co., Ltd. is qualified for enjoying such tax incentive fromJanuary 1, 2015.
4. In accordance with Article 1 (26) of Annex 3 of the Notice of the Ministry of Finance and the StateAdministration of Taxation on Implementing the Pilot Program of Replacing Business Tax with Value-Added Tax in an All-round Manner (Cai Shui [2016] No.36), taxpayers are exempted from VAT if theyprovide technology transfer, technology development, and technology consultation and services inconnection therewith. The Company is qualified for enjoying such tax incentive from January 26, 2018.
5. In accordance with the Announcement of the Ministry of Finance and the State TaxationAdministration on Implementing Preferential Income Tax Policies for Micro and Small Enterprises andIndividual Industrial and Commercial Households (2021 No.13), from January 1, 2021 to December 31,2022, the annual taxable income of a small low-profit enterprise that is not more than RMB 1 million shallbe included in its taxable income at the reduced rate of 12.5%, with the applicable enterprise income taxrate of 20%; from January 1, 2019 to December 31, 2021, the annual taxable income that is not less thanRMB 1 million nor not more than RMB 3 million shall be included in its taxable income at the reducedrate of 50%, with the applicable enterprise income tax rate of 20%. The following subsidiaries are qualifiedfor enjoying such tax incentives: Beijing Orient Appotronics Technology Co., Ltd., Shenzhen AppotronicsDisplay Device Co., Ltd., Appotronics Technology (Changzhou) Co., Ltd., Appotronics Timewaying(Beijing) Technology Co., Ltd., Qingda Appotronics (Xiamen) Technology Co., Ltd., ShenzhenAppotronics Home Line Technology Co., Ltd., Shenzhen Appotronics Laser Technology Co., Ltd. andShenzhen Appotronics Xiaoming Technology Co., Ltd..
3. Others
□ Applicable√ N/A
VII. Notes to items in the consolidated financial statements
1. Cash and bank balances
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item | Closing balance | Opening balance |
Cash on hand | 5,847.50 | 5,858.56 |
Bank deposits | 895,755,732.73 | 1,020,747,657.62 |
Other monetary funds | 28,118,672.98 | 17,007,057.09 |
Total | 923,880,253.21 | 1,037,760,573.27 |
Including: Total oversea deposits | 32,313,655.39 | 78,611,378.23 |
2. Held-for-trading financial assets
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item | Closing balance | Opening balance |
Financial assets at fair value through profit or loss | 420,000,000.00 | 114,000,000.00 |
Including: | ||
Structural deposits | 420,000,000.00 | 114,000,000.00 |
Designated as financial assets at fair value through profit or loss | 37,982,988.00 | |
Including: | ||
Performance compensation | 37,982,988.00 | |
Total | 457,982,988.00 | 114,000,000.00 |
Item | Closing balance | Opening balance |
Bank acceptances | 700,000.00 | 950,000.00 |
Commercial acceptances | 3,098,593.29 | 2,776,328.91 |
Total | 3,798,593.29 | 3,726,328.91 |
Item | Amount derecognized at the end of the period | Amount not derecognized at the end of the period |
Bank acceptances | 250,000.00 | |
Commercial acceptances | 1,409,666.52 | |
Total | 1,659,666.52 |
(4). Notes transferred to accounts receivable due to drawer's failure in cashing at the end of the
period
□ Applicable√ N/A
(5). Disclosure by categories of provision for bad debts
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Category | Closing balance | Opening balance | |||||||||
Carrying amount | Provision for bad debts | Book value | Carrying amount | Provision for bad debts | Book value | ||||||
Amount | Proportion (%) | Amount | Proportion of provision (%) | Amount | Proportion (%) | Amount | Proportion of provision (%) | ||||
Provision for bad debts made by group | 3,961,677.15 | 100.00 | 163,083.86 | 4.12 | 3,798,593.29 | 3,872,451.48 | 100.00 | 146,122.57 | 3.77 | 3,726,328.91 | |
Including: | |||||||||||
Bank acceptance bills | 700,000.00 | 17.67 | 700,000.00 | 950,000.00 | 24.53 | 950,000.00 | |||||
Commercial acceptances | 3,261,677.15 | 82.33 | 163,083.86 | 5.00 | 3,098,593.29 | 2,922,451.48 | 75.47 | 146,122.57 | 5.00 | 2,776,328.91 | |
Total | 3,961,677.15 | / | 163,083.86 | / | 3,798,593.29 | 3,872,451.48 | / | 146,122.57 | / | 3,726,328.91 |
Name | Closing balance | ||
Notes receivable | Provision for bad debts | Proportion of provision (%) | |
Bank acceptance bills | 700,000.00 | ||
Commercial acceptances | 3,261,677.15 | 163,083.86 | 5.00 |
Total | 3,961,677.15 | 163,083.86 | 4.12 |
If a provision for bad debts of accounts receivable is made in accordance with the general model of ECL,please disclose relevant information subject to the disclosure of the bad debt provision for otherreceivables.
□ Applicable√ N/A
(6). Provision for bad debts
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Category | Opening balance | Changes for the current period | Closing balance | ||
Provision | Recovery or reversal | Write off or cancellation | |||
Commercial acceptances | 146,122.57 | 16,961.29 | 163,083.86 | ||
Total | 146,122.57 | 16,961.29 | 163,083.86 |
Aging | Closing balance of carrying amount |
Within 1 year | |
Including: Subitems within 1 year | |
Sub-total of items within 1 year | 175,413,179.70 |
1 to 2 years | 1,079,789.28 |
2 to 3 years | 2,203,450.00 |
Over 3 years | 230,200.00 |
Total | 178,926,618.98 |
Category | Closing balance | Opening balance | ||||
Carrying amount | Provision for bad debts | Book value | Carrying amount | Provision for bad debts | Book value |
Amount | Proportion (%) | Amount | Proportion of provision (%) | Amount | Proportion (%) | Amount | Proportion of provision (%) | |||
Provision for bad debts made by group | 178,926,618.98 | 100.00 | 10,372,756.89 | 5.80 | 168,553,862.09 | 361,346,260.89 | 100.00 | 19,685,428.46 | 5.45 | 341,660,832.43 |
Including: | ||||||||||
Accounts receivable for which the provision for bad debts is made by aging group | 178,926,618.98 | 100.00 | 10,372,756.89 | 5.80 | 168,553,862.09 | 361,346,260.89 | 100.00 | 19,685,428.46 | 5.45 | 341,660,832.43 |
Total | 178,926,618.98 | / | 10,372,756.89 | / | 168,553,862.09 | 361,346,260.89 | / | 19,685,428.46 | / | 341,660,832.43 |
Name | Closing balance | ||
Accounts receivable | Provision for bad debts | Proportion of provision (%) | |
Within 1 year | 175,413,179.70 | 8,770,884.57 | 5.00 |
1-2 years | 1,079,789.28 | 269,947.32 | 25.00 |
2-3 years | 2,203,450.00 | 1,101,725.00 | 50.00 |
Over 3 years | 230,200.00 | 230,200.00 | 100.00 |
Total | 178,926,618.98 | 10,372,756.89 | 5.80 |
(3). Provision for bad debts
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Category | Opening balance | Changes for the current period | Closing balance | |||
Provision | Recovery or reversal | Write off or cancellation | Other changes | |||
Provision for bad debts made by group | 19,685,428.46 | -9,312,671.57 | 10,372,756.89 | |||
Total | 19,685,428.46 | -9,312,671.57 | 10,372,756.89 |
Entity | Carrying amount | Proportion to the balance of accounts receivable (%) | Provision for bad debts |
Xiaomi Communications Technologies Co., Ltd. and its affiliates | 54,205,349.26 | 30.29 | 2,710,267.46 |
BARCO NV and its affiliates | 19,429,915.61 | 10.86 | 971,495.78 |
Beijing Jingdong Century Trading Co., Ltd. | 14,611,460.67 | 8.17 | 730,573.03 |
Shenzhen Nearbyexpress Technology Development Company Limited | 12,935,095.24 | 7.23 | 646,754.76 |
WeCast Technology Corp. and its affiliates | 6,220,785.59 | 3.48 | 311,039.28 |
Sub-total | 107,402,606.37 | 60.03 | 5,370,130.31 |
6. Receivables financing
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item | Closing balance | Opening balance |
Bank acceptance bills receivable | 1,214,306.00 | 11,959,000.00 |
Total | 1,214,306.00 | 11,959,000.00 |
Aging | Closing balance | Opening balance | ||
Amount | Proportion (%) | Amount | Proportion (%) | |
Within 1 year | 80,287,925.92 | 95.83 | 45,488,048.90 | 92.50 |
1 to 2 years | 3,493,196.62 | 4.17 | 3,686,582.62 | 7.50 |
2 to 3 years | ||||
Over 3 years | ||||
Total | 83,781,122.54 | 100.00 | 49,174,631.52 | 100.00 |
Entity | Closing balance | Reasons for no settlement |
China Film Equipment Corporation and its affiliates | 1,851,026.53 | The settlement time has not come |
Sub-total | 1,851,026.53 |
Entity | Carrying amount | Proportion to the balance of prepayments (%) |
CVTE Group and its affiliates | 40,529,310.39 | 48.37% |
NEO Chinontec Co., Ltd. | 16,463,155.65 | 19.65% |
Kyocera SLD Laser, Inc | 5,814,090.00 | 6.94% |
Matsubayashi Optics (GUANGZHOU) Co., Ltd. | 2,230,439.33 | 2.66% |
Shenzhen Colorwin Optical Technology Co., Ltd. | 1,997,957.53 | 2.38% |
Sub-total | 67,036,032.90 | 80.00% |
Item | Closing balance | Opening balance |
Interest receivable | ||
Dividends receivable | ||
Other receivables | 10,381,304.06 | 12,534,062.15 |
Total | 10,381,304.06 | 12,534,062.15 |
Aging | Closing balance of carrying amount |
Within 1 year | |
Including: Subitems within 1 year | |
Sub-total of items within 1 year | 4,797,839.31 |
1 to 2 years | 254,134.25 |
2 to 3 years | 4,688,537.95 |
Over 3 years | 1,162,166.40 |
Total | 10,902,677.91 |
Nature of receivables | Closing balance of carrying amount | Opening balance of carrying amount |
Deposits/margins/petty cash | 9,425,783.99 | 8,832,850.67 |
Withholding | 465,219.20 | 380,123.97 |
Temporary receivables | 1,011,674.72 | 383,488.89 |
Indemnity receivable | 3,577,279.61 | |
Total | 10,902,677.91 | 13,173,743.14 |
Provision for bad debts | Stage I | Stage II | Stage III | Total |
12-month ECL in the future | Lifetime ECL (without credit impairment) | Lifetime ECL (with credit impairment) | ||
Balance as at January 1, 2021 | 639,680.99 | 639,680.99 | ||
Balance as at January 1, 2021 in the current period | ||||
--transferred to Stage II | ||||
--transferred to Stage III | ||||
--reversed to Stage II | ||||
--reversed to Stage I | ||||
Provision | -118,307.14 | -118,307.14 | ||
Reversal | ||||
Write-off | ||||
Cancellation | ||||
Other changes |
Balance as at June 30, 2021 | 521,373.85 | 521,373.85 |
Category | Opening balance | Changes for the current period | Closing balance | |||
Provision | Recovery or reversal | Write off or cancellation | Other changes | |||
Provision for bad debts made by group | 639,680.99 | -118,307.14 | 521,373.85 | |||
Total | 639,680.99 | -118,307.14 | 521,373.85 |
Entity | Nature of other receivables | Closing balance | Aging | Proportion to the balance of other receivables (%) | Provision for bad debts closing balance |
Shenzhen Meisheng Industry Co., Ltd. | Deposits/margins/petty cash | 3,574,618.00 | 2-3 years | 32.79 | 178,730.90 |
Shenzhen Science and Technology Assessment Management Center | Deposits/margins/petty cash | 1,310,675.20 | 1-2 years, over 3 years | 12.02 | 65,533.76 |
Hong Kong Science & Technology Parks Corporation | Deposits/margins/petty cash | 1,011,329.11 | 2-3 years | 9.28 | 50,566.46 |
Beijing Dongsheng Bozhan Technology Development Co., Ltd. | Deposits/margins/petty cash | 816,155.64 | Within 1 year | 7.49 | 40,807.77 |
Qingdao Haier Multimedia Co., Ltd. | Deposits/margins/petty cash | 500,000.00 | Within 1 year | 4.59 | 25,000.00 |
Total | / | 7,212,777.95 | / | 66.17 | 360,638.89 |
Item | Closing balance | Opening balance | ||||
Carrying amount | Provision for decline in value of inventories/impairment of contract performance cost | Book value | Carrying amount | Provision for decline in value of inventories/impairment of contract performance cost | Book value | |
Raw materials | 451,338,805.08 | 17,326,482.85 | 434,012,322.23 | 243,262,463.77 | 12,343,116.67 | 230,919,347.10 |
Work in progress | 41,741,766.19 | 4,342,479.86 | 37,399,286.33 | 23,130,163.72 | 533,475.37 | 22,596,688.35 |
Goods on hand | 139,693,333.22 | 13,191,411.80 | 126,501,921.42 | 152,306,656.10 | 17,204,698.44 | 135,101,957.66 |
Goods upon delivery | 25,658,485.78 | 570,764.05 | 25,087,721.73 | 15,345,357.08 | 15,345,357.08 | |
Materials for consigned processing | 17,369,489.57 | 207,806.17 | 17,161,683.40 | 15,064,657.09 | 215,866.48 | 14,848,790.61 |
Contract performance cost | 2,145,002.14 | 729,907.80 | 1,415,094.34 | |||
Total | 677,946,881.98 | 36,368,852.53 | 641,578,029.45 | 449,109,297.76 | 30,297,156.96 | 418,812,140.80 |
Item | Opening balance | Increase | Decrease | Closing balance | ||
Provision | Others | Reversal or write-off | Others | |||
Raw materials | 12,343,116.67 | 6,673,723.18 | 1,690,357.00 | 17,326,482.85 | ||
Work in progress | 533,475.37 | 4,237,522.32 | 428,517.83 | 4,342,479.86 | ||
Goods on hand | 17,204,698.44 | 4,130,260.78 | 8,143,547.42 | 13,191,411.80 | ||
Goods upon delivery | 570,764.05 | - | 570,764.05 | |||
Materials for consigned processing | 215,866.48 | 192,220.04 | 200,280.35 | 207,806.17 | ||
Contract performance cost | 729,907.80 | - | 729,907.80 | |||
Total | 30,297,156.96 | 16,534,398.17 | 10,462,702.60 | 36,368,852.53 |
Item | Closing balance | Opening balance |
Carrying amount | Provision for impairment | Book value | Carrying amount | Provision for impairment | Book value | |
Warranties receivable | 280,586.00 | 172,869.30 | 107,716.70 | 492,467.50 | 181,635.38 | 310,832.12 |
Goods payment | 3,741,658.43 | 1,460,882.81 | 2,280,775.62 | 4,842,771.16 | 1,408,947.78 | 3,433,823.38 |
Total | 4,022,244.43 | 1,633,752.11 | 2,388,492.32 | 5,335,238.66 | 1,590,583.16 | 3,744,655.50 |
Item | Provision | Reversal | Write-off/cancellation in the period | Reason |
Provision made by group | 43,168.95 | |||
Total | 43,168.95 | / |
Aging | Closing balance | ||
Carrying amount | Provision for impairment | Proportion of provision (%) | |
Within 1 year | 1,024,378.00 | 51,218.90 | 5.00 |
1 to 2 years | - | - | 25.00 |
2 to 3 years | 2,830,666.43 | 1,415,333.21 | 50.00 |
Over 3 years | 167,200.00 | 167,200.00 | 100.00 |
Total | 4,022,244.43 | 1,633,752.11 | 40.62 |
Item | Closing balance | Opening balance |
Cost of returns receivable | 1,072,633.94 | 1,381,990.01 |
Input VAT to be deducted | 48,620,388.82 | 11,338,961.82 |
Prepaid enterprise income tax | 281,243.63 | |
Total | 49,693,022.76 | 13,002,195.46 |
Item | Closing balance | Opening balance | Discount rate range | ||||
Carrying amount | Provision for bad debts | Book value | Carrying amount | Provision for bad debts | Book value | ||
Proceeds from sales of goods by installment | 15,000,000.00 | 750,000.00 | 14,250,000.00 | 15,000,000.00 | 750,000.00 | 14,250,000.00 | |
Less: Unearned financing income | 754,054.04 | 754,054.04 | 1,053,912.22 | 1,053,912.22 | |||
Total | 14,245,945.96 | 750,000.00 | 13,495,945.96 | 13,946,087.78 | 750,000.00 | 13,196,087.78 | / |
(2) Provision for bad debts
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Provision for bad debts | Stage I | Stage II | Stage III | Total |
12-month ECL in the future | Lifetime ECL (without credit impairment) | Lifetime ECL (with credit impairment) | ||
Balance as at January 1, 2021 | 750,000.00 | 750,000.00 | ||
Balance as at January 1, 2021 in the current period | ||||
--transferred to Stage II | ||||
--transferred to Stage III | ||||
--reversed to Stage II | ||||
--reversed to Stage I | ||||
Provision | ||||
Reversal | ||||
Write-off | ||||
Cancellation | ||||
Other changes | ||||
Balance as at June 30, 2021 | 750,000.00 | 750,000.00 |
17. Long-term equity investments
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Investees | Opening balance | Changes for the current period | Closing balance | Closing balance of provision for impairment | |||||||
Additional investment | Decreased investment | Investment profit or loss under equity method | Adjustment in other comprehensive income | Other equity changes | Declared cash dividends or profits | Provision for impairment | Others | ||||
I. Joint venture | |||||||||||
Sub-total | |||||||||||
II. Associates | |||||||||||
Cinionic Limited | 131,406,424.64 | 1,686,237.88 | -2,611,934.25 | -1,333,341.83 | 129,147,386.44 | ||||||
GDC Technology Limited (BVI) | 131,338,347.84 | 5,260,676.50 | 1,394,857.33 | -1,240,815.44 | 136,753,066.23 | ||||||
Sub-total | 262,744,772.48 | 6,946,914.38 | -1,217,076.92 | -2,574,157.27 | 265,900,452.67 | ||||||
Total | 262,744,772.48 | 6,946,914.38 | -1,217,076.92 | -2,574,157.27 | 265,900,452.67 |
18. Other equity instrument investments
(1). Description of other equity instrument investments
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item | Closing balance | Opening balance |
Shen Zhen Timewaying Technology Co., Ltd. | 7,075,419.38 | 7,075,419.38 |
Shenzhen Bevix Technology Co., Ltd. | 4,900,000.00 | 4,900,000.00 |
Total | 11,975,419.38 | 11,975,419.38 |
Item | Dividend income recognized in the current period | Aggregate gains or losses | Aggregate losses | Amount transferred from other comprehensive income to retained earnings | Reasons for being designated as at fair value through other comprehensive income | Reasons for transferring other comprehensive income to retained earnings |
Shen Zhen Timewaying Technology Co., Ltd. | As per the intention for holding of the management | |||||
Shenzhen Bevix Technology Co., Ltd. | As per the intention for holding of the management |
Item | Closing balance | Opening balance |
Fixed assets | 448,824,286.12 | 447,571,328.91 |
Disposal of fixed assets | ||
Total | 448,824,286.12 | 447,571,328.91 |
Item | Machinery and equipment | Transportation equipment | Electronic equipment and others | Operating leased equipment | Total |
I. Cost: | |||||
1.Opening balance | 103,894,713.95 | 1,020,400.05 | 37,318,561.28 | 563,293,898.80 | 705,527,574.08 |
2. Increase | 10,374,215.65 | 4,671,280.36 | 46,015,079.81 | 61,060,575.82 | |
(1)Purchase | 10,374,215.65 | 4,671,280.36 | 15,045,496.01 | ||
(2) Transfer from construction in progress | 46,015,079.81 | 46,015,079.81 | |||
3. Decrease | 2,677,681.28 | 765,103.73 | 5,336,262.46 | 8,779,047.47 | |
(1) Disposal or retirement | 196,364.20 | 728,415.51 | 5,183,854.65 | 6,108,634.36 | |
(2) Transfer to inventories | 2,481,317.08 | 36,688.22 | 152,407.81 | 2,670,413.11 | |
4.Closing balance | 111,591,248.32 | 1,020,400.05 | 41,224,737.91 | 603,972,716.15 | 757,809,102.43 |
II. Accumulated depreciation | |||||
1.Opening balance | 41,528,570.15 | 447,672.23 | 17,109,387.09 | 198,870,615.70 | 257,956,245.17 |
2. Increase | 9,385,522.08 | 68,048.82 | 3,493,829.66 | 39,495,698.30 | 52,443,098.86 |
(1) Provision | 9,385,522.08 | 68,048.82 | 3,493,829.66 | 39,495,698.30 | 52,443,098.86 |
3. Decrease | 399,842.63 | 587,217.52 | 427,467.57 | 1,414,527.72 | |
(1) Disposal or retirement | 158,308.83 | 580,647.70 | 382,985.33 | 1,121,941.86 | |
(2) Transfer to inventories | 241,533.80 | 6,569.82 | 44,482.24 | 292,585.86 |
4.Closing balance | 50,514,249.60 | 515,721.05 | 20,015,999.23 | 237,938,846.43 | 308,984,816.31 |
III. Provision for impairment | |||||
1.Opening balance | |||||
2. Increase | |||||
(1) Provision | |||||
3. Decrease | |||||
(1) Disposal or retirement | |||||
4.Closing balance | |||||
IV. Book value | |||||
1. Closing balance | 61,076,998.72 | 504,679.00 | 21,208,738.68 | 366,033,869.72 | 448,824,286.12 |
2. Opening balance | 62,366,143.80 | 572,727.82 | 20,209,174.19 | 364,423,283.10 | 447,571,328.91 |
Item | Closing balance of carrying amount |
Operating leased equipment | 366,033,869.72 |
Total | 366,033,869.72 |
Item | Closing balance | Opening balance |
Construction in progress | 88,984,744.00 | 51,576,850.72 |
Materials for construction | ||
Total | 88,984,744.00 | 51,576,850.72 |
Item | Closing balance | Opening balance | ||||
Carrying amount | Provision for impairment | Book value | Carrying amount | Provision for impairment | Book value | |
Headquarter buildings | 65,509,824.53 | 65,509,824.53 | 37,982,329.74 | 37,982,329.74 | ||
Light sources to be leased | 22,071,691.77 | 22,071,691.77 | 13,594,520.98 | 13,594,520.98 | ||
Fitting-out works | 1,403,227.70 | 1,403,227.70 | ||||
Total | 88,984,744.00 | 88,984,744.00 | 51,576,850.72 | 51,576,850.72 |
(2). Changes in significant constructions in progress for the current period
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item | Budget amount | Opening balance | Increase | Amount transferred to fixed assets | Other decreases | Closing balance | Amount injected as a proportion of budget amount (%) | Construction progress | Amount of accumulated capitalized interest | Including: Capitalised interest for the period | Interest Capitalization rate for the period (%) | Source of funds |
Headquarter buildings | 534,635,200.00 | 37,982,329.74 | 27,527,494.79 | 65,509,824.53 | 12.25 | 12.25 | 33,383.45 | 33,383.45 | 2.22 | Self-financing | ||
Light sources to be leased | 13,594,520.98 | 54,492,250.60 | 46,015,079.81 | 22,071,691.77 | Self-financing | |||||||
Fitting-out works | 1,403,227.70 | 1,403,227.70 | Self-financing | |||||||||
Total | 534,635,200.00 | 51,576,850.72 | 83,422,973.09 | 46,015,079.81 | 88,984,744.00 | / | / | 33,383.45 | 33,383.45 | / | / |
(3). Provision for impairment losses for construction in progress in the current period
□ Applicable√ N/A
Other description
□ Applicable√ N/A
Materials for construction
□ Applicable√ N/A
23. Bearer biological assets
(1). Bearer biological assets measured at cost
□ Applicable√ N/A
(2). Bearer biological assets measured at fair value
□ Applicable√ N/A
Other description
□ Applicable√ N/A
24. Oil and gas assets
□ Applicable√ N/A
25. Use right assets
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item | Houses and buildings | Total |
I. Cost | ||
1. Opening balance | 71,832,053.32 | 71,832,053.32 |
2. Increase | 6,169,798.91 | 6,169,798.91 |
3. Decrease | ||
4. Closing balance | 78,001,852.23 | 78,001,852.23 |
II. Accumulated depreciation | ||
1. Opening balance | 32,463,983.15 | 32,463,983.15 |
2. Increase | 9,471,534.54 | 9,471,534.54 |
(1) Provision | 9,471,534.54 | 9,471,534.54 |
3. Decrease | ||
(1) Disposal | ||
4. Closing balance | 41,935,517.69 | 41,935,517.69 |
III. Provision for impairment | ||
1. Opening balance | ||
2. Increase | ||
(1) Provision | ||
3. Decrease | ||
(1) Disposal | ||
4. Closing balance | ||
IV. Book value | ||
1. Closing balance | 36,066,334.54 | 36,066,334.54 |
2. Opening balance | 39,368,070.17 | 39,368,070.17 |
[Note] Refer to the description in V. 44 of Section X for details of the difference between the openingbalance of this period and the closing balance of prior year (as at December 31, 2020)
26. Intangible assets
(1). Description of intangible assets
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item | Land use rights | Patents | Software | Total |
I. Cost | ||||
1.Opening balance | 330,630,000.00 | 23,247,800.00 | 13,996,355.81 | 367,874,155.81 |
2. Increase | 415,806.59 | 415,806.59 | ||
(1) Purchase | 415,806.59 | 415,806.59 | ||
3. Decrease | ||||
(1)Disposal | ||||
4.Closing balance | 330,630,000.00 | 23,247,800.00 | 14,412,162.40 | 368,289,962.40 |
II. Accumulated Amortization | ||||
1.Opening balance | 27,552,500.10 | 14,860,270.10 | 4,973,150.01 | 47,385,920.21 |
2. Increase | 5,510,500.02 | 844,610.02 | 1,391,408.60 | 7,746,518.64 |
(1) Provision | 5,510,500.02 | 844,610.02 | 1,391,408.60 | 7,746,518.64 |
3. Decrease | ||||
(1) Disposal | ||||
4.Closing balance | 33,063,000.12 | 15,704,880.12 | 6,364,558.61 | 55,132,438.85 |
III. Provision for impairment | ||||
1.Opening balance | ||||
2. Increase | ||||
(1) Provision | ||||
3. Decrease | ||||
(1) Disposal | ||||
4.Closing balance | ||||
IV. Book value | ||||
1. Closing balance | 297,566,999.88 | 7,542,919.88 | 8,047,603.79 | 313,157,523.55 |
2. Opening balance | 303,077,499.90 | 8,387,529.90 | 9,023,205.80 | 320,488,235.60 |
27. Development expenditure
□ Applicable√ N/A
28. Goodwill
(1). Original book value of goodwill
□ Applicable√ N/A
(2). Impairment provision of goodwill
□ Applicable√ N/A
(3). Relevant information of groups of assets or combinations of groups of assets where thegoodwill is recognized
□ Applicable√ N/A
(4). Specify test procedure, key parameters of impairment of goodwill (such as increase rate at
the projection period, increase rate at the steady period, profit rate, discount rate, andprojection period upon the estimates of the presented value of future cash flow) as well asrecognition method for impairment loss
□ Applicable√ N/A
(5). Impacts on test of goodwill impairment
□ Applicable√ N/A
Other description:
□ Applicable√ N/A
29. Long-term prepaid expenses
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item | Opening balance | Increase | Amortization | Other decreases | Closing balance |
Renovation costs | 11,020,278.57 | 1,956,427.58 | 3,357,124.60 | 9,619,581.55 | |
Software | 552,068.22 | 194,847.60 | 357,220.62 | ||
Total | 11,572,346.79 | 1,956,427.58 | 3,551,972.20 | 9,976,802.17 |
Item | Closing balance | Opening balance | ||
Deducible temporary difference | Deferred tax asset | Deducible temporary difference | Deferred tax asset | |
Provision for impairment of assets | 32,201,815.94 | 5,315,456.14 | 28,773,276.08 | 4,625,714.28 |
Unrealized profits for inside transactions | 349,171,100.96 | 86,655,914.03 | 343,108,987.56 | 85,451,876.99 |
Deductible losses | 3,339,193.87 | 834,798.46 |
Provisions | 26,803,968.88 | 5,136,107.85 | 24,854,195.43 | 4,578,959.70 |
Deferred income | 16,381,194.52 | 2,586,751.33 | 15,797,285.68 | 2,504,280.31 |
Share-based payment expenses | 29,583,779.99 | 5,294,789.61 | 639,138.44 | 101,038.96 |
Lease liability | 33,572,555.38 | 5,878,957.55 | 42,411,856.75 | 5,283,865.43 |
Accrual of repurchase interest payable | 1,625,248.48 | 406,312.12 | ||
Total | 489,339,664.15 | 111,274,288.63 | 458,923,933.81 | 103,380,534.13 |
Item | Closing balance | Opening balance | ||
Taxable temporary differences | Deferred income taxes liabilities | Taxable temporary differences | Deferred income taxes liabilities | |
Value-added valuation of business combination not involving enterprises under common control | ||||
Changes in fair value of other debt investments | ||||
Changes in fair value of other investments in equity instruments | ||||
Long-term receivables | 13,396,889.35 | 2,009,533.40 | 13,097,031.17 | 1,964,554.68 |
Use right assets | 31,924,696.40 | 5,654,382.93 | 39,368,070.17 | 4,960,189.07 |
Total | 45,321,585.75 | 7,663,916.33 | 52,465,101.34 | 6,924,743.75 |
Item | Amount for which the deferred tax assets and liabilities are offset at the closing of the period | Closing balance of deferred tax assets or liabilities after offset | Amount for which the deferred income tax assets and liabilities are offset at the opening of the period | Opening balance of deferred income tax assets or liabilities after offset |
Deferred tax assets | 7,663,916.33 | 103,610,372.30 | 6,924,743.75 | 96,455,790.38 |
Deferred tax liabilities |
Unit: Yuan Currency: RMB
Item | Closing balance | Opening balance |
Deducible temporary difference | 45,260,046.72 | 47,569,632.05 |
Deductible losses | 270,414,001.83 | 275,961,696.98 |
Total | 315,674,048.55 | 323,531,329.03 |
Year | Closing balance | Opening balance | Remark |
2021 | 9,487,530.31 | 9,487,530.31 | |
2022 | 11,900,336.99 | 11,900,329.00 | |
2023 | 42,584,893.83 | 47,115,450.59 | |
2024 | 66,906,177.28 | 86,745,720.01 | |
2025 | 76,093,109.30 | 120,712,667.07 | |
2026 | 63,441,954.12 | ||
Total | 270,414,001.83 | 275,961,696.98 | / |
Item | Closing balance | Opening balance | ||||
Carrying amount | Provision for impairment | Book value | Carrying amount | Provision for impairment | Book value | |
Prepayment for purchase of long-term assets | 15,891,524.06 | 15,891,524.06 | 6,299,781.06 | 6,299,781.06 | ||
Total | 15,891,524.06 | 15,891,524.06 | 6,299,781.06 | 6,299,781.06 |
Item | Closing balance | Opening balance |
Guaranteed loans | 28,049,331.60 | 77,223,937.39 |
Credit loans | 11,299,169.33 | |
Interest payable | 48,543.82 | 255,746.14 |
Total | 28,097,875.42 | 88,778,852.86 |
Category | Closing balance | Opening balance |
Commercial acceptances | ||
Bank acceptance bills | 180,257,484.74 | 116,822,674.67 |
Total | 180,257,484.74 | 116,822,674.67 |
Item | Closing balance | Opening balance |
Amounts payable for purchase | 272,203,766.10 | 226,494,815.90 |
Total | 272,203,766.10 | 226,494,815.90 |
Item | Closing balance | Opening balance |
Receipts in advance for goods and cinema services | 141,944,076.60 | 153,258,189.88 |
Total | 141,944,076.60 | 153,258,189.88 |
Item | Closing balance | Reasons for not repaid or carried-forward |
Jiangsu Happy Blue Sea Cinema Development Co., Ltd. | 27,926,212.39 | Receipts in advance from customers for cinema projection services |
Total | 27,926,212.39 | / |
Item | Closing balance | Opening balance |
Goods payment | 40,048,659.77 | 31,518,312.59 |
Total | 40,048,659.77 | 31,518,312.59 |
Item | Opening balance | Increase | Decrease | Closing balance |
1. Short-term benefits | 46,031,631.17 | 150,199,218.51 | 163,182,064.83 | 33,048,784.85 |
2.Post-employment benefits-defined contribution plan | 73,934.98 | 6,093,810.04 | 5,996,162.31 | 171,582.71 |
3. Termination benefits | 635,752.00 | 635,752.00 | ||
4. Other benefits due within one year | ||||
Total | 46,105,566.15 | 156,928,780.55 | 169,813,979.14 | 33,220,367.56 |
Item | Opening balance | Increase | Decrease | Closing balance |
I. Wages or salaries, bonuses, allowances and subsidies | 45,956,435.30 | 135,085,848.73 | 148,183,122.44 | 32,859,161.59 |
II. Staff welfare | 3,500,905.02 | 3,500,905.02 | ||
III. Social security contributions | 53,986.52 | 4,311,716.14 | 4,249,408.62 | 116,294.04 |
Including: Medical insurance | 53,183.08 | 4,115,870.55 | 4,057,687.13 | 111,366.50 |
Work injury insurance | 786.46 | 89,695.78 | 85,571.68 | 4,910.56 |
Maternity insurance | 16.98 | 106,149.81 | 106,149.81 | 16.98 |
IV. Housing funds | 989.00 | 6,923,221.59 | 6,923,221.59 | 989.00 |
V.Union running costs and employee education costs | 20,220.35 | 377,527.03 | 325,407.16 | 72,340.22 |
VI. Short-term paid leaves | ||||
VII.Short-term profit sharing plan | ||||
Total | 46,031,631.17 | 150,199,218.51 | 163,182,064.83 | 33,048,784.85 |
Item | Opening balance | Increase | Decrease | Closing balance |
1. Basic pensions | 73,886.98 | 5,891,324.53 | 5,798,831.05 | 166,380.46 |
2. Unemployment insurance | 48.00 | 202,485.51 | 197,331.26 | 5,202.25 |
3. Enterprise annuity contribution | ||||
Total | 73,934.98 | 6,093,810.04 | 5,996,162.31 | 171,582.71 |
Item | Closing balance | Opening balance |
Value-added tax (VAT) | 1,529,974.97 | 12,205,136.88 |
Enterprise income tax | 40,403,724.10 | 5,477,611.87 |
Individual income tax | 1,099,358.16 | 1,067,512.87 |
City maintenance and construction tax | 409,277.99 | 478,213.88 |
Stamp duty | 184,114.07 | 294,612.70 |
Education surcharges | 175,370.30 | 204,948.80 |
Local education surcharges | 116,913.53 | 136,632.54 |
Annual franchise tax | 7,106.11 | 7,177.40 |
Urban land use tax | 8,914.32 | |
Total | 43,934,753.55 | 19,871,846.94 |
Item | Closing balance | Opening balance |
Interest payable | ||
Dividends payable | 3,851,339.04 | |
Other payables | 251,631,758.97 | 58,821,952.01 |
Total | 255,483,098.01 | 58,821,952.01 |
Item | Closing balance | Opening balance |
Dividends on ordinary shares | 3,851,339.04 | |
Total | 3,851,339.04 |
Item | Closing balance | Opening balance |
Withholding | 110,137.00 | 110,389.10 |
Deposits/margins | 5,581,950.19 | 6,600,475.05 |
Withdrawals in advance | 28,762,556.88 | 21,126,906.43 |
Equity transfer fund payable | 11,548,387.32 | |
Borrowings | 19,343,613.33 |
Temporary receipts payable | 15,687.12 | 92,180.78 |
Equity repurchase amount payable | 217,161,427.78 | |
Total | 251,631,758.97 | 58,821,952.01 |
Item | Closing balance | Opening balance |
Long-term borrowings due within 1 year | 125,280,481.42 | 181,057,099.90 |
Lease liabilities due within 1 year | 20,745,329.40 | 18,607,011.39 |
Interest payable | 194,908.23 | 360,312.56 |
Total | 146,220,719.05 | 200,024,423.85 |
Item | Closing balance | Opening balance |
Taxes to be written off | 3,391,139.20 | 3,045,831.07 |
Total | 3,391,139.20 | 3,045,831.07 |
Item | Closing balance | Opening balance |
Guaranteed borrowings | 99,087,647.00 | 29,000,000.00 |
Credit loans borrowings | 2,043,500.81 | |
Mortgaged borrowings | 3,494,734.74 | |
Pledged and guaranteed borrowings | 33,693,828.00 | |
Interest payable | 108,105.52 | 107,952.72 |
Total | 102,690,487.26 | 64,845,281.53 |
Item | Closing balance | Opening balance |
Lease liabilities | 39,136,772.89 | 42,411,856.75 |
Less: Lease liabilities due within 1 year | -20,745,329.40 | -18,607,011.39 |
Total | 18,391,443.49 | 23,804,845.36 |
48. Long-term accounts payable
Presented by items
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item | Closing balance | Opening balance |
Long-term accounts payable | 3,230,050.00 | 3,262,450.00 |
Special payables | ||
Total | 3,230,050.00 | 3,262,450.00 |
Item | Closing balance | Opening balance |
Purchase of patent use rights by installment | 3,230,050.00 | 3,262,450.00 |
Total | 3,230,050.00 | 3,262,450.00 |
Item | Opening balance | Closing balance | Reason |
Products quality warranty | 27,240,470.53 | 29,185,988.71 | Expenses for “three guarantees” services |
Returns payable | 1,558,884.12 | 1,333,391.18 | |
Total | 28,799,354.65 | 30,519,379.89 | / |
Item | Opening balance | Increase | Decrease | Closing balance | Reason |
Government grants | 16,723,257.15 | 4,070,480.27 | 3,833,810.75 | 16,959,926.67 | |
Total | 16,723,257.15 | 4,070,480.27 | 3,833,810.75 | 16,959,926.67 | / |
Projects relating to government grants:
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Projects with liabilities | Opening balance | Increased government grants for the current period | Amount recognized in non-operating income for the current period | Amount recognized in other income for the current period | Other changes | Closing balance | Related to assets/income |
8K Ultra High Definition Laser Display Technology Engineering Research Center | 1,699,187.35 | 382,994.93 | 1,316,192.42 | Government grants related to assets | |||
Ultra-high Brightness Laser Light Source Engineering Technology Research Center | 1,683,873.26 | 1,414,127.27 | 269,745.99 | Government grants related to income | |||
Ultra-high Brightness Laser Light Source Engineering Technology Research Center | 13,340,196.54 | 2,815,480.27 | 1,781,688.55 | 14,373,988.26 | Government grants related to income | ||
Research and Development of Key Technologies of Ultra High Definition Micro Laser Projection Optical Engine Based on Light-emitting | 1,000,000.00 | 1,000,000.00 | Government grants related to income |
Ceramic Devices | |||||||
Key Technology of Trichromatic Laser Display Complete Equipment Industrialization | 255,000.00 | 255,000.00 | Government grants related to income | ||||
Total | 16,723,257.15 | 4,070,480.27 | 3,833,810.75 | 16,959,926.67 |
Opening balance | Changes (+, -) | Closing balance | |||||
Issue New share | Bonus shares | Capitalization of capital reserve | Others | Sub-total | |||
Total shares | 452,756,901.00 | 452,756,901.00 |
55. Capital reserve
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item | Opening balance | Increase | Decrease | Closing balance |
Capital premium (Share premium) | 1,241,202,420.08 | 92,622,244.75 | 1,333,824,664.83 | |
Other capital reserve | 7,818,571.07 | 18,461,103.38 | 26,279,674.45 | |
Total | 1,249,020,991.15 | 111,083,348.13 | 1,360,104,339.28 |
57. Other comprehensive income
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item | Opening balance | Amount recognized in the current period | Closing balance | |||||
Amount incurred for current period before tax | Less: Amount previously included in other comprehensive income and transferred to profit or loss for the period | Less: Amount previously included in other comprehensive income and transferred to retained earnings for the period | Less: Income tax expense | Attributable to owners of the parent company after tax | Attributable to minority shareholders after tax | |||
I. Other comprehensive income that cannot be reclassified subsequently to profit or loss | ||||||||
II. Other comprehensive income that will be reclassified to profit or loss | -3,214,291.93 | -4,739,767.89 | -4,763,298.65 | 23,530.76 | -7,977,590.58 |
Exchange differences on translation of financial statements denominated in foreign currencies | -3,214,291.93 | -4,739,767.89 | -4,763,298.65 | 23,530.76 | -7,977,590.58 | |||
Total other comprehensive income | -3,214,291.93 | -4,739,767.89 | -4,763,298.65 | 23,530.76 | -7,977,590.58 |
58. Special reserve
□ Applicable√ N/A
59. Surplus reserve
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item | Opening balance | Increase | Decrease | Closing balance |
Statutory surplus reserve | 33,964,638.84 | 33,964,638.84 | ||
Surplus reserve recovered through business combination involving entities under common control | 1,277,540.73 | 1,277,540.73 | ||
Total | 35,242,179.57 | 35,242,179.57 |
Item | Current period | Last year |
Retained profits at the end of prior period before adjustment | 357,793,891.96 | 288,975,820.29 |
Total adjusted retained profits at the beginning of the period (Add:+; Less: -) | 44,270.33 | 1,278,734.88 |
Retained profits at the beginning of the period after adjustment | 357,838,162.29 | 290,254,555.17 |
Add: Net profit attributable to owners of the Parent Company for the period | 151,413,920.79 | 113,847,873.06 |
Less: Appropriation to statutory surplus reserve | 12,441,955.44 | |
Appropriation to discretionary surplus reserve | ||
Appropriation to general risk reserve | ||
Declaration of dividends on ordinary shares | 24,901,629.56 | 33,866,580.83 |
Conversion of ordinary shares' dividends into share capital | ||
Retained profits at the end of the period | 484,350,453.52 | 357,793,891.96 |
1) As a result of the retrospective adjustment of the Accounting Standards for Business Enterprises andrelated new regulations, retained profits at the beginning of the period were affected by RMB 44,270.33.
2. Retained profits at the beginning of the period were affected by RMB 0 due to changes in accountingpolicies.
3. Retained profits at the beginning of the period were affected by RMB 0 due to the correction ofsignificant accounting errors.
4. Retained profits at the beginning of the period were affected by RMB 0 due to changes in the scope ofconsolidation resulting from business combination involving entities under common control.
5. Retained profits at the beginning of the period were affected by RMB 0 in total due to other adjustments.
61. Operating income and operating costs
(1). Description of operating income and operating costs
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item | Amount for the current period | Amount for the prior period | ||
Revenue | Cost | Revenue | Cost | |
Main business | 1,104,689,243.59 | 723,612,305.19 | 716,025,207.34 | 529,787,789.94 |
Total | 1,104,689,243.59 | 723,612,305.19 | 716,025,207.34 | 529,787,789.94 |
Item | Sub-total |
Main business areas | |
Domestic | 978,637,241.86 |
Overseas | 52,602,507.28 |
Sub-total | 1,031,239,749.14 |
Main product types | |
Laser optical engine | 102,894,753.59 |
Laser projector | 760,406,207.52 |
Others | 167,938,788.03 |
Sub-total | 1,031,239,749.14 |
Revenue recognition time | |
Goods (transferring at a certain point in time) | 911,639,750.72 |
Service (rendering over time) | 119,599,998.42 |
Sub-total | 1,031,239,749.14 |
62. Taxes and levies
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item | Amount for the current period | Amount for the prior period |
City maintenance and construction tax | 1,720,331.86 | 854,951.57 |
Education surcharges | 741,743.40 | 378,217.31 |
Local education surcharges | 499,046.18 | 248,054.96 |
Stamp duty | 1,096,478.56 | 591,733.50 |
Others | 273,538.81 | 256,753.22 |
Total | 4,331,138.81 | 2,329,710.56 |
Item | Amount for the current period | Amount for the prior period |
Employee benefits | 32,606,069.47 | 23,380,108.03 |
Marketing fees | 35,119,978.09 | 11,258,761.35 |
After-sale repair expenses | 6,280,390.31 | 7,335,750.91 |
Advertising costs and business publicity expenses | 2,043,151.94 | 2,025,841.22 |
Business travel expenses | 1,601,757.27 | 650,816.90 |
Business entertainment expenses | 1,073,975.75 | 344,196.59 |
Other expenses | 10,960,873.00 | 5,838,419.50 |
Total | 89,686,195.83 | 50,833,894.50 |
Item | Amount for the current period | Amount for the prior period |
Employee benefits | 31,797,608.54 | 27,739,712.49 |
Rent expense | 4,795,962.93 | 3,676,664.67 |
Service fees | 16,698,545.91 | 17,562,845.34 |
Depreciation and amortization fees | 3,365,970.11 | 8,228,493.80 |
Share-based payment expenses | 22,312,482.85 | 17,576,543.47 |
Other expenses | 4,989,946.58 | 3,029,397.32 |
Total | 83,960,516.92 | 77,813,657.09 |
The decrease in depreciation and amortization fees is mainly due to the amortization of land use rightbeing recognized in construction in progress in the current period.
65. R&D expenses
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item | Amount for the current period | Amount for the prior period |
Employee benefits | 60,494,851.79 | 54,917,336.45 |
Material consumption expenses | 8,429,853.23 | 9,045,544.84 |
Rent expense | 4,649,585.35 | 4,614,423.44 |
Service fees | 7,094,850.80 | 2,313,102.75 |
Depreciation and amortization fees | 4,710,875.84 | 6,299,814.11 |
Testing expenses | 2,384,569.29 | 1,963,709.91 |
Patent fees | 2,067,359.08 | 4,325,481.23 |
Other expenses | 5,296,538.28 | 3,816,038.02 |
Total | 95,128,483.66 | 87,295,450.75 |
Item | Amount for the current period | Amount for the prior period |
Interest expenses | 11,013,330.17 | 11,612,825.87 |
Less: Interest income | -10,868,184.51 | -4,618,971.33 |
Exchange profit or loss | 508,948.95 | 189,748.99 |
Bank service charges | 877,924.69 | 854,087.51 |
Total | 1,532,019.30 | 8,037,691.04 |
Item | Amount for the current period | Amount for the prior period |
Government grants related to assets | 382,994.93 | 17,881.98 |
Government grants related to income | 51,598,892.61 | 31,357,361.04 |
Refund of commissions for withholding individual income tax | 571,819.78 | |
Additional deduction of input VAT | 2,336,589.39 | 1,546,791.95 |
Total | 54,890,296.70 | 32,922,034.97 |
68. Investment income
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item | Amount for the current period | Amount for the prior period |
Long-term equity investment accounted for using the equity method | 6,982,738.64 | 901,894.80 |
Investment income from disposal of held-for-trading financial assets | 2,145,923.39 | 10,824,793.71 |
Others | 3.00 | |
Total | 9,128,665.03 | 11,726,688.51 |
Source of gains from changes in fair values | Amount for the current period | Amount for the prior period |
Held-for-trading financial assets | 38,175,900.00 | |
Including: Gains from changes in fair values on derivative financial instruments | ||
Held-for-trading financial liabilities | ||
Investment properties measured at fair value | ||
Total | 38,175,900.00 |
Item | Amount for the current period | Amount for the prior period |
Bad debt losses | 9,407,031.23 | 2,170,106.96 |
Total | 9,407,031.23 | 2,170,106.96 |
Item | Amount for the current period | Amount for the prior period |
I. Loss of contract assets | -43,168.95 | |
II. Losses of decline in value of inventories and losses of contract performance cost | -16,538,070.39 | -12,109,681.09 |
Total | -16,581,239.34 | -12,109,681.09 |
Item | Amount for the current period | Amount for the prior period |
Gains on disposal of assets | 2,806,008.82 | 149,620.91 |
Total | 2,806,008.82 | 149,620.91 |
Item | Amount for the current period | Amount for the prior period | Amount included in non-recurring profit or loss for the period |
Total gains or losses from disposal of non-current assets; | 4,100.00 | 8,412.77 | 4,100.00 |
Including: Gains from disposal of fixed assets | 4,100.00 | 8,412.77 | 4,100.00 |
Gain from disposal of intangible assets | |||
Gains from debt restructuring | |||
Gains from exchange of non-monetary assets | |||
Acceptance of donations | |||
Government grants | 21,500,000.00 | 21,500,000.00 | |
Amounts not required for payment | 4,200.00 | ||
Indemnity | 630,000.00 | 252,001.08 | 630,000.00 |
Others | 106,580.14 | 6,001.63 | 106,580.14 |
Total | 22,240,680.14 | 270,615.48 | 22,240,680.14 |
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Project with grants | Amount for the current period | Amount for the prior period | Related to assets/income |
Grants for Fostering Restructuring and Listing in 2021 | 1,500,000.00 | Government grants related to income | |
Project Support Fund of Chongqing Liangjiang New Area Finance Bureau - Project Landing Reward | 20,000,000.00 | Government grants related to income |
Item | Amount for the current period | Amount for the prior period | Amount included in non-recurring profit or loss for the period |
Total losses on disposal of non-current assets | 170,231.21 | 140,563.32 | 170,231.21 |
Including: Losses on disposal of fixed assets | 170,231.21 | 140,563.32 | 170,231.21 |
External donations | 563,138.63 | ||
Penalties and overdue fines | 18,205.90 | 1,000.00 | 18,205.90 |
Others | 217,064.50 | 36,000.00 | 217,064.50 |
Total | 405,501.61 | 740,701.95 | 405,501.61 |
Item | Amount for the current period | Amount for the prior period |
Income tax expense in the current period | 52,765,981.28 | 7,761,319.12 |
Deferred income tax expenses | -6,460,456.12 | -5,067,377.70 |
Total | 46,305,525.16 | 2,693,941.42 |
(2) Reconciliation of income tax expenses to the accounting profit
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item | Amount for the current period |
Total profit | 226,100,424.85 |
Income tax expense calculated based on statutory/applicable tax rate | 33,915,063.74 |
Effect of different tax rates of subsidiaries operating in other jurisdictions | 12,796,123.23 |
Effect of adjustment on income tax for the period | 694,125.81 |
Effect of non-taxable income | -11,417,223.52 |
Effect of non-deductible cost, expense and loss | 459,671.41 |
Effect of utilizing deductible loss not recognized for deferred tax assets for prior period | |
Effect of deductible temporary difference or deductible loss not recognized for deferred tax assets for the current period | 9,988,835.94 |
Changes in the opening balance of deferred income tax assets due to tax rate adjustment | -131,071.45 |
Effect of additional R&D expenses deduction | |
Income tax expense | 46,305,525.16 |
Item | Amount for the current period | Amount for the prior period |
Government grants | 72,650,106.88 | 29,527,428.69 |
Non-operating income | 665,006.61 | 258,002.71 |
Interest income | 11,045,718.76 | 4,618,971.33 |
Other monetary funds-margins | 21,445,628.07 | 20,402,679.86 |
Bank deposits-frozen funds due to litigation | 10,000,000.00 | |
Receivables and payables | 7,695,541.37 | 16,463,315.13 |
Total | 113,502,001.69 | 81,270,397.72 |
(2). Other cash payments relating to operating activities
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item | Amount for the current period | Amount for the prior period |
Sales expenses, administrative and R&D expenses paid in cash | 95,588,810.53 | 67,811,667.43 |
Financial expenses paid in cash | 1,863,849.47 | 854,087.51 |
Non-operating expenses | 47,599.90 | 600,138.63 |
Other monetary funds-margins | 28,107,696.66 | 27,484,998.92 |
Receivables and payables | 8,277,996.70 | 3,395,213.71 |
Total | 133,885,953.26 | 100,146,106.20 |
Item | Amount for the current period | Amount for the prior period |
Investment funds with repurchase right | 215,000,000.00 | |
Total | 215,000,000.00 |
Item | Amount for the current period | Amount for the prior period |
Share-based payment expenses | 20,559.65 | 22,587.36 |
Repayment to shareholders | 19,320,000.00 | |
Lease expenses | 11,870,055.52 | |
Total | 31,210,615.17 | 22,587.36 |
Supplementary information | Current period | Prior period |
1. Reconciliation of net profit to cash flow from operating activities: | ||
Net profit | 179,794,899.69 | -8,378,244.17 |
Add: Provision for impairment of assets | 16,581,239.34 | 12,109,681.09 |
Losses of credit impairment | -9,407,031.23 | -2,170,106.96 |
Depreciation of fixed assets, depletion of oil and gas assets, depreciation of bearer biological assets | 52,443,098.86 | 47,418,126.65 |
Amortization of use right assets | 9,471,534.54 | |
Amortization of intangible assets | 2,236,018.62 | 7,660,838.99 |
Amortization of long-term prepaid expenses | 3,551,972.20 | 3,409,529.26 |
Losses on disposal of fixed assets, intangible assets and other long-term assets (gains are indicated by “-”) | -2,806,008.82 | -149,620.91 |
Losses on retirement of fixed assets (gains are indicated by “-”) | 166,131.21 | 132,150.55 |
Losses on changes in fair values (gains are indicated by “-”) | -38,175,900.00 | |
Financial expenses (income is indicated by “-”) | 11,522,279.12 | 11,802,574.86 |
Investment losses (income is indicated by “-”) | -9,128,665.03 | -11,726,688.51 |
Decrease in deferred tax assets (increase is indicated by “-”) | -7,154,581.92 | -5,071,725.84 |
Increase in deferred tax liabilities (decrease is indicated by “-”) | ||
Decrease in inventories (increase is indicated by “-”) | -272,867,132.22 | -142,500,844.11 |
Decrease in receivables from operating activities (increase is indicated by “-”) | 154,269,042.05 | 67,912,872.37 |
Increase in payables from operating activities (decrease is indicated by “-”) | 58,149,792.82 | 64,980,975.06 |
Others | 22,012,624.67 | 17,576,543.47 |
Net cash flow from operating activities | 170,659,313.90 | 63,006,061.80 |
2. Significant investing and financing activities that do not involve cash receipts and payments: | ||
Conversion of debt into capital | ||
Convertible corporate bonds due within one year | ||
Fixed assets acquired under finance leases |
3. Net changes in cash and cash equivalents: | ||
Closing balance of cash | 863,588,162.84 | 686,296,049.61 |
Less: Opening balance of cash | 983,525,089.44 | 829,789,487.86 |
Add: Closing balance of cash equivalents | ||
Less: Opening balance of cash equivalents | ||
Net increase in cash and cash equivalents | -119,936,926.60 | -143,493,438.25 |
Item | Closing balance | Opening balance |
I. Cash | 863,588,162.84 | 983,525,089.44 |
Including: Cash on hand | 5,847.50 | 5,858.56 |
Bank deposit that can be paid at any time | 855,755,732.73 | 980,570,123.37 |
Other monetary funds that can be paid at any time | 7,826,582.61 | 2,949,107.51 |
Deposits in the Central Bank that can be used for payments | ||
Deposits made with other banks | ||
Placements with banks | ||
II. Cash equivalents | ||
Including: Investments in debt securities due within three months | ||
III. Closing balance of cash and cash equivalents | 863,588,162.84 | 983,525,089.44 |
Including: Restricted cash and cash equivalents of the Parent Company or subsidiaries within the Group |
81. Assets with limited ownership or use right
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item | Closing balance of carrying amount | Reason |
Other monetary funds | 20,292,090.37 | Margins |
Bank deposits | 40,000,000.00 | Time deposits |
Land use rights | 297,566,999.88 | Mortgage |
Total | 357,859,090.25 | / |
Item | Closing balance of foreign currency | Exchange rate | Closing balance of RMB equivalent balance |
Cash and bank balances | |||
Including: USD | 10,081,456.17 | 6.4601 | 65,127,215.00 |
GBP | 365.96 | 8.9410 | 3,272.05 |
HKD | 1,703,453.28 | 0.83208 | 1,417,409.41 |
VND | 93,612,676.00 | 0.0002806 | 26,267.72 |
Accounts receivable | |||
Including: USD | 4,071,799.30 | 6.4601 | 26,304,230.66 |
Other receivables | |||
Including: USD | 168,481.83 | 6.4601 | 1,088,409.47 |
VND | 112,935,000.00 | 0.0002806 | 31,689.56 |
Accounts payable | |||
Including: USD | 13,324,802.64 | 6.4601 | 86,079,557.53 |
EUR | 11,804.35 | 7.6862 | 90,730.59 |
Other payables | |||
Including: USD | 461,803.47 | 6.4601 | 2,983,296.61 |
VND | 3,200,185,170.00 | 0.0002806 | 897,971.96 |
Non-current liabilities due within one year | |||
Including: USD | 316,838.82 | 6.4601 | 2,047,190.67 |
HKD | 2,293,226.99 | 0.83208 | 1,908,148.31 |
VND | 436,491,213.68 | 0.0002806 | 122,479.43 |
√ Applicable□ N/A
Item | Major operation place overseas | Functional currency | Choosing basis |
Appotronics Hong Kong Limited | Hong Kong | USD | Common currency |
Appotronics USA, Inc. | United States | USD | Common currency |
Fabulus Technology Hong Kong Limited | Hong Kong | USD | Common currency |
JoveAI Limited | Cayman Islands | USD | Common currency |
JoveAI Innovation, Inc. | United States | USD | Common currency |
FORMOVIE TECHNOLOGY INC | United States | USD | Common currency |
JoveAI Asia Company Limited | Vietnam | VDN | Local currency |
WEMAX LLC | United States | USD | Common currency |
Category | Amount | Item presented | Amount recognized in current profit or loss |
Government grants related to assets | Other income | 382,994.93 | |
Government grants related to income and used for compensation of the Company’s relevant costs or losses in subsequent periods | 4,070,480.27 | Other income | 3,450,815.82 |
Government grants related to income and used for compensation of the Company’s relevant costs or losses that have been incurred | 48,152,127.98 | Other income | 48,152,127.98 |
Government grants related to income and used for compensation of the Company’s relevant costs or losses that have been incurred | 21,500,000.00 | Non-operating income | 21,500,000.00 |
Item | Opening balance | Increased government | Amortization for the | Closing balance | Amortized item | Description |
of deferred income | grants for the current period | current period | of deferred income | presented for the current period | ||
8K Ultra High Definition Laser Display Technology Engineering Research Center | 1,699,187.35 | 382,994.93 | 1,316,192.42 | Other income | Contract on Project of 8K Ultra High Definition Laser Display Technology Engineering Research Center made by the Development and Reform Commission of Shenzhen Municipal (XMHT20190101023) | |
Sub-total | 1,699,187.35 | 382,994.93 | 1,316,192.42 |
Item | Opening balance of deferred income | Increased government grants for the current period | Carrying forward for the current period | Closing balance of deferred income | Carried-forward item presented for the current period | Description |
Ultra-high Brightness Laser Light Source Engineering Technology Research Center | 1,683,873.26 | 1,414,127.27 | 269,745.99 | Other income | Contract on Shenzhen Science and Technology Plan Project made by Shenzhen Science and Technology Innovation Commission (Shen Ke Ji Chuang Xin [2019] No. 33) |
Trichromatic Laser Display Complete Equipment Production Demonstration Line | 13,340,196.54 | 2,815,480.27 | 1,781,688.55 | 14,373,988.26 | Other income | Notice on the Approval of Key Projects of Strategic Advanced Electronic Materials of National Key R&D Plan in 2018 issued by the High Technology Research and Development Center of the Ministry of Science and Technology (Guo Ke Gao Fa Ji Zi [2018] No. 41) |
Research and Development of Key Technologies of Ultra High Definition Micro Laser Projection Optical Engine Based on Light-emitting Ceramic Devices | 1,000,000.00 | 1,000,000.00 | Other income | Electronic Office Report on Technology Breakthrough Project of Shenzhen Science and Technology Innovation No. 2021124 issued by Shenzhen Science and Technology Innovation Commission | ||
Key Technology of Trichromatic Laser Display Complete Equipment | 255,000.00 | 255,000.00 | Other income | Assignment of R&D Plan Projects in key Areas of Guangdong Province made by Shenzhen Finance Bureau |
Industrialization | (2019B010926001) | |||||
Sub-total | 15,024,069.80 | 4,070,480.27 | 3,450,815.82 | 15,643,734.25 |
Item | Amount | Item presented | Description |
VAT Refund | 1,673,676.21 | Other income | |
Job Stabilization Subsidy | 5,696.29 | Other income | |
Maternity Subsidy from Shenzhen Social Security Bureau | 124,908.48 | Other income | Provisions of Guangdong Province on Employees Maternity Insurance promulgated by Shenzhen Social Insurance Fund Administration |
Fund from Shunyi Park Management Committee of Zhongguancun Science and Technology Park in 2019 Supporting Development of Enterprises in Shunyi District | 2,200,000.00 | Other income | Notice of Shunyi District People’s Government of Beijing Municipality on Issuing the Support Measures for Promoting the Development of Enterprises in Shunyi District (Shun Zheng Fa [2017] No. 38 ) |
2020 Industrial Added Value Award Project of Shenzhen Nanshan District Finance Bureau | 3,830,100.00 | Other income | Special Fund for Independent Innovation Industry Development of Nanshan District (for Economic Development) - Application for Industrial Added Value Award Project |
The First Reported Fund for the Second Batch of Patents in 2019 from the Patent Agency of Shenzhen Intellectual Property Administration 30-27 | 30,000.00 | Other income | Notice of Shenzhen Administration for Market Administration on Handling the General Subsidy Collection Procedures on Shenzhen Intellectual Property Special Fund in 2019 |
One Time Subsidy on the Post-doctoral Station Unit from Shenzhen Human Resources and Social Security Bureau (the Second Batch in 2020) | 500,000.00 | Other income | Publicity List of Proposed One Time Subsidy on the Station Unit in Shenzhen (the Second Batch in 2020) - Website of Shenzhen Human Resources and Social Security Bureau |
Subsidy for Economic Development in 2021 under Application ZK01202103000097 from Shenzhen Administration for Market Administration | 300,000.00 | Other income | Allocation Plan of Special Funds for Promoting High-quality Economic Development in 2020 (the Third Batch) issued by Guangdong Administration for Market Regulation |
Government Subsidy from the Patent Agency of Shenzhen Intellectual Property Administration | 600,000.00 | Other income | Special Fund for the Development of Independent Innovation Industry in Nanshan District (for Scientific and Technological Innovation) - Science and Technology Award Support Plan of Nanshan District |
Subsidy for Post-doctoral Station Unit from Human Resources Bureau of Nanshan District in Shenzhen | 250,000.00 | Other income | Application for Special Fund for Independent Innovation Industry Development in Nanshan District, Shenzhen - Post-doctoral Station Unit Project (2021) |
Enterprise R&D Investment Support Plan of the Science and Technology Innovation Bureau of Nanshan District in Shenzhen | 1,000,000.00 | Other income | Special Fund for Independent Innovation Industry Development in Nanshan District (for Scientific and Technological Innovation) - Application for Enterprise R&D Investment Support Plan (2020) |
Supplementary Housing Rent for Talents from the Finance Bureau of Nanshan District in Shenzhen | 372,000.00 | Other income | Further Notice of Nanshan District Housing and Construction Bureau on Supplementary Housing Rent for Talents in Nanshan District in 2021 issued by the Industry and Information Technology Bureau of Nanshan District in Shenzhen |
Project Support Fund of Chongqing Liangjiang New Area Finance Bureau - Project Landing Reward | 20,000,000.00 | Non-operating income | Technology Investment Agreement between Chongqing Liangjiang New Area Management Committee and Fengmi (Contract No.: LJCY-2020-023-TZ) |
Project Support Fund of Chongqing Liangjiang New Area Finance Bureau - Support Fund for Headquarters Relocation | 30,000,000.00 | Other income | Technology Investment Agreement between Chongqing Liangjiang New Area Management Committee and Fengmi (Contract No.: LJCY-2020-023-TZ) |
The First Batch of Subsidy for Domestic and Overseas Invention | 1,807,500.00 | Other income | The First Batch of Subsidy for Domestic and Overseas Invention Patents in 2020 (Received on June 11, 2021) |
Patents in 2020 from the Patent Agency of Shenzhen Intellectual Property Administration | |||
The First Batch of Grants for Enterprise R&D Funding in 2020 from the High Tech Department of Shenzhen Science and Technology innovation Commission | 1,766,000.00 | Other income | Notice of Shenzhen Science and Technology Innovation Commission on Publicizing the List of the First Batch of Enterprises to be Funded and the Second Batch of Enterprises to be Reviewed under the Enterprise R&D Funding Plan in 2020 |
Fund for Patent Promotion and Protection Project from Administration for Market Regulation of Shunyi District in Beijing | 10,000.00 | Other income | Notice of Shunyi District People’s Government of Beijing Municipality on Issuing the Rules for the Implementation of Patent Promotion and Protection in Shunyi District (Shun Zheng Fa (2019) No.10) |
Publicity Department of Beijing Shunyi District Committee of the Communist Party of China - 2020 Cultural and Creative Fund | 3,000,000.00 | Other income | According to the guidance of Several Opinions on Promoting the Development of Cultural and Creative Industries in Shunyi District (Shun Zheng Fa [2013] No. 13) and the Management Measures on Special Funds for the Development of Cultural and Creative Industries in Shunyi District (Revised) (Shun Xuan Fa [2016] No. 6), the Publicity Department of the District is now soliciting projects to be granted with the special fund for the development of cultural industry in Shunyi District in 2020 (“Special Fund”). |
Funding for Industrial Development and Innovative Talents from the Human Resources Bureau of Nanshan District in Shenzhen | 282,247.00 | Other income |
Allocation to the Standard Field of Shenzhen in 2020 from Shenzhen Administration for Market Administration ZK0120210600108 | 300,000.00 | Other income | List of Activities Meeting Incentive Standard to be Funded by Shenzhen Special Fund in Standard Field in 2020 |
Allocation to the Standard Field of Shenzhen in 2020 from Shenzhen Administration for Market Administration ZK0120210600108 | 100,000.00 | Other income | List of Activities Meeting Incentive Standard to be Funded by Shenzhen Special Fund in Standard Field in 2020 |
Grants for Fostering Restructuring and Listing in 2021 from Shenzhen SME Service Bureau | 1,500,000.00 | Non-operating income | Notice of Shenzhen SME Service Bureau on Handling the Allocation of Subsidy for the Restructuring and Listing Fostering Projects of the Municipal Private and Small and Medium-sized Enterprises under the Innovation and Development Support Plan in 2021 |
Sub-total | 69,652,127.98 |
Item | Amount | Reason |
Hong Kong Government Employment Protection Scheme | 4,051.19 | The number of employees is not eligible for the government grants |
5. Changes in scope of consolidation for other reasons
Description of changes in the scope of consolidation for other reasons (e.g., new subsidiaryestablishment and subsidiary liquidation, etc.) and the relevant information:
√ Applicable□ N/A
Established by the Company on December 29, 2020, Fengmi (Chongqing) Innovation Technology Co.,Ltd. engaged in no substantive business at the beginning of its establishment, and conducted its businesson March 12, 2021 with capital injection, who accordingly is included into the scope of consolidation.
6. Others
□ Applicable√ N/A
IX. Equity in other entities
1. Equity in subsidiaries
(1). Composition of enterprise group
√ Applicable□ N/A
Subsidiary Name | Principal operation place | Registration place | Business nature | Proportion of shareholding (%) | Acquisition method | |
Direct | Indirect | |||||
Appotronics Timewaying (Beijing) Technology Co., Ltd. | Beijing | Beijing | Sales; technology development, consulting | 90 | Establishment | |
Shenzhen Appotronics Software Technology Co., Ltd. | Shenzhen | Shenzhen | Technology development and sales of computer software and hardware | 100 | Establishment | |
Beijing Orient Appotronics Technology Co., Ltd. | Beijing | Beijing | Technology promotion; computer systems, application software services | 59 | Establishment | |
Shenzhen Appotronics Xiaoming Technology Co., Ltd. | Shenzhen | Shenzhen | Development, consultation and transfer of laser display technology | 100 | Establishment | |
Fengmi (Chongqing) Innovation Technology Co., Ltd. | Chongqing | Chongqing | Import and export of goods and technology | 39.19 | Establishment | |
Fengmi (Beijing) Technology Co., Ltd. | Beijing | Beijing | Technology and software development | 39.19 | Establishment | |
Shenzhen Appotronics Laser Display Technology Co., Ltd. | Shenzhen | Shenzhen | R&D and sales of laser display products | 100 | Business combination involving entities under common control | |
CINEAPPO Laser Cinema Technology (Beijing) Co., Ltd. | Beijing | Beijing | Research and development, production, technical services, sales and leasing of laser cinema projection equipment and other products | 24.84 | 38.36 | Business combination involving entities under common control |
Qingda Appotronics (Xiamen) Technology Co., Ltd. | Shenzhen | Xiamen | Information technology consulting services | 51 | Establishment | |
Shenzhen Appotronics Laser Technology Co., Ltd. | Shenzhen | Shenzhen | Software development for semiconductor optoelectronic devices | 100 | Establishment | |
Shenzhen Appotronics Home Line Technology Co., Ltd. | Shenzhen | Shenzhen | Software development related to semiconductor optoelectronic products | 100 | Establishment | |
Appotronics Hong Kong Limited | Hong Kong | Hong Kong | Production, research and development, sales, consulting, investment and video content value-added business of semiconductor optoelectronic products | 100 | Establishment | |
Appotronics USA, Inc. | USA | USA | R&D, manufacture and sales of semiconductor optoelectronic products | 100 | Business combination involving entities under common control | |
Fabulus Technology Hong Kong Limited | Hong Kong | Hong Kong | R&D, manufacture and sales of screens | 100 | Establishment | |
JoveAI Limited | Cayman Island | Cayman Island | No specific business conducted | 64.29 | Establishment | |
JoveAI Innovation, Inc. | USA | USA | R&D of laser display software system | 64.29 | Establishment | |
Appotronics Technology (Changzhou) Co., Ltd. | Changzhou | Changzhou | Technical research and development of projection equipment, screen and electronic computer. | 100 | Establishment | |
FORMOVIE TECHNOLOGY INC | USA | USA | No specific business conducted | 39.19 | Establishment | |
JoveAI Asia Company Limited | Vietnam | Vietnam | Technical research and development of | 64.29 | Establishment |
projection equipment, screen and electronic computer. | ||||||
Tianjin Bainian Film Partnership (LP) | Tianjin | Tianjin | No specific business conducted | 99.00 | 1.00 | Business combination involving entities under common control |
Shenzhen Appotronics Display Device Co., Ltd. | Shenzhen | Shenzhen | Technology development, sales and technical services of display products; import and export business | 100 | Establishment | |
WEMAX LLC | USA | USA | Sale of laser equipment | 100 | Establishment |
Subsidiaries | Shareholding by minority shareholders | Profit or loss attributable to minority | Dividends declared for distribution to minority | Closing balance of minority interests |
Percentage (%) | shareholders for the current period | shareholders in the current period | ||
Fengmi (Chongqing) Innovation Technology Co., Ltd. | 60.81 | 9,034,446.12 | -128,397,510.69 | |
CINEAPPO Laser Cinema Technology (Beijing) Co., Ltd. | 36.80 | 22,890,606.78 | 11,040,000.00 | 151,163,808.22 |
(3). Significant financial information of significant non-wholly subsidiaries
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Subsidiaries | Closing balance | Opening balance | ||||||||||
Current assets | Non-current assets | Total assets | Current liabilities | Non-current Liabilities | Total Liabilities | Current assets | Non-current assets | Total assets | Current liabilities | Non-current Liabilities | Total Liabilities | |
Fengmi (Chongqing) Innovation Technology Co., Ltd. | 761,120,189.39 | 37,828,500.50 | 798,948,689.89 | 891,040,646.76 | 8,531,070.85 | 899,571,717.61 | 602,633,550.23 | 19,159,124.70 | 621,792,674.93 | 692,687,626.41 | 7,163,819.12 | 699,851,445.53 |
CINEAPPO Laser Cinema Technology (Beijing) Co., Ltd. | 206,894,037.40 | 731,840,175.41 | 938,734,212.81 | 443,678,339.79 | 84,284,655.05 | 527,962,994.84 | 218,507,767.08 | 714,506,195.09 | 933,013,962.17 | 509,106,720.26 | 45,338,759.72 | 554,445,479.98 |
Subsidiaries | Amount for the current period | Amount for the prior period | ||||||
Operating income | Net profit | Total comprehensive income | Cash flow from operating activities | Operating income | Net profit | Total comprehensive income | Cash flow from operating activities | |
Fengmi (Chongqing) Innovation Technology Co., Ltd. | 531,216,939.04 | 12,761,375.30 | 12,761,391.07 | 31,963,176.54 | 396,335,864.51 | -10,418,569.26 | -10,418,569.26 | 83,212,791.30 |
CINEAPPO Laser Cinema Technology (Beijing) Co., Ltd. | 244,006,736.50 | 59,012,508.09 | 59,012,508.09 | 99,458,332.40 | 78,528,870.68 | -34,638,400.65 | -34,638,400.65 | 22,787,991.80 |
(4). Significant limitations on use of the group assets and paying off the group debts:
□ Applicable√ N/A
(5). Financial or other support provided to structured entities included in consolidated financialstatements:
□ Applicable√ N/A
Other description:
□ Applicable√ N/A
2. Changes of shares of owners' equity in subsidiaries but continue to remain control overtransactions of subsidiaries
√ Applicable□ N/A
(1) Description on changes in shares of owners' equity in subsidiaries
√ Applicable□ N/A
During the reporting period, Fengmi (Chongqing), a subsidiary of the Company, introduced strategicinvestors through equity transfer and capital increase. By June 30, 2021, the capital increase has beencompleted, as a result of which, the Company’s shareholding ratio in Fengmi (Chongqing) has decreasedfrom 55% to 39.19%.
(2) Effect of the transaction on the minority interests and the equity attributable to owners of theparent company
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Fengmi (Chongqing) Innovation Technology Co., Ltd. | |
Purchase cost/disposal consideration | |
--Cash | 202,631,579.00 |
--Fair value of non-cash assets | |
Total purchase cost/disposal consideration | 202,631,579.00 |
Less: Pro-rata net assets of the subsidiary calculated according to the proportion of equity acquired/disposed | 110,009,334.25 |
Difference | 92,622,244.75 |
Including: Capital reserve adjustment | 92,622,244.75 |
Surplus reserve Adjustment | |
Retained profits Adjustment |
Name of associates or joint ventures | Principal operation place | Registration place | Business nature | Proportion of shareholding (%) | Accounting treatment method for investments in joint ventures and associates | |
Direct | Indirect | |||||
GDC Technology Limited (BVI) | Asia and North America | British Virgin Islands | R&D, production, and sale of digital cinema servers and cinema management system | 36.00 | Accounting for under equity method |
Closing balance/amount of this period | Opening balance/amount of last period | |
GDC | GDC (note 2) | |
Current assets | 547,485,818.74 | 553,504,350.37 |
Non-current assets | 65,118,156.91 | 72,596,748.61 |
Total assets | 612,603,975.65 | 626,101,098.98 |
Current liabilities | 377,810,943.71 | 379,295,268.80 |
Non-current Liabilities | 12,862,485.47 | 41,349,472.31 |
Total Liabilities | 390,673,429.18 | 420,644,741.11 |
Minority interests | ||
Interests attributable to shareholders of the parent company | 221,930,546.47 | 205,456,357.87 |
Share of net assets calculated by ownership percentage | 79,894,996.73 | 73,964,288.83 |
Adjustment | 62,255,140.10 | 62,044,191.37 |
--Goodwill | 62,560,946.33 | 62,560,946.33 |
--Unrealized profits for inside transactions | -305,806.23 | -516,754.96 |
--Others | ||
Carrying amount of investment of associate | 136,753,066.23 | 131,338,347.84 |
Fair values of equity investments in associates having publicly quoted prices | ||
Operating income | 133,586,629.37 | 44,845,312.70 |
Net profit | 14,713,439.07 | 2,142,306.37 |
Net profit of discontinued operations | ||
Other comprehensive income | 3,894,036.40 | 2,565,157.07 |
Total comprehensive income | 18,607,475.46 | 4,707,463.44 |
Dividends received from associates in the current year |
Closing balance/2019 | Opening balance / 2018 | |
Joint ventures: | ||
Total book value of investments | ||
Total amounts calculated based on shareholding proportions | ||
--Net profit | ||
--Other comprehensive income | ||
--Total comprehensive income | ||
Associates: | ||
Total book value of investments | 129,147,386.44 | 131,406,424.64 |
Total amounts calculated based on shareholding proportions | ||
--Net profit | 1,131,089.51 | 217,201.22 |
--Other comprehensive income | -2,612,904.61 | -1,059,162.87 |
--Total comprehensive income | -1,481,815.09 | -841,961.65 |
Associates | Principal operation place | Registration place | Business nature | Proportion of shareholding (%) | Accounting treatment method for investments in joint ventures | |
Direct | Indirect |
and associates | ||||||
Cinionic Limited | Europe and USA | Hong Kong | Sale of cinema projectors | 20.00 | Accounting for under equity method |
The Company assesses at each balance sheet date whether the credit risk of the underlying financialinstruments has increased significantly since initial recognition. In determining whether the credit risk hasincreased significantly since initial recognition, the Company considers reasonable and supportableinformation that is available without undue cost or effort, including quantitative and qualitative analysisbased on historical data, ranking of external credit risks and forward-looking information. The Companycompares the risk of a default occurring on a financial instrument as at the balance sheet date with the riskof a default occurring on the financial instrument as at the date of initial recognition based on individualfinancial instrument or a group of financial instruments with similar credit risk characteristic, to determinethe change of the risk of a default occurring on a financial instrument over the expected life.
The Company considers the credit risk of financial instruments has increased significantly when oneor more of the following quantitative and qualitative criteria are met:
1) The quantitative criterion primarily refers to a certain percentage of increase in the probability ofdefault over the remaining life of the financial instruments as of the balance sheet date when comparingwith that at initial recognition of the financial instruments;
2) The qualitative criteria includes, inter alia, adverse material changes in business or financialconditions that are expected to cause a significant decrease in the debtor's ability to meet its debtobligations, and an actual or expected significant adverse change in the technological, market, economic,or legal environment of the debtor that results in a significant decrease in the debtor’s ability to meet itsdebt obligations.
(2) Definition of defaulted or credit-impaired assets
A financial asset is defined as defaulted when the financial instrument meets one or more conditionsstated as below, and the criteria of defining defaulted asset is consistent with that of defining credit-impaired asset:
1) significant financial difficulty of the debtor;
2) a breach of contract terms with binding force by the debtor;
3) it is becoming probable that the debtor will enter bankruptcy or other financial reorganization;
4) the creditor of the debtor, for economic or contractual reasons relating to the debtor’s financialdifficulty, has granted to the debtor a concession(s) that the creditor would not otherwise consider.
2. Measurement of ECL
Key parameters to measure ECL include the probability of default, loss given default and theexposure at default. The Company established models of the probability of default, loss given default andthe exposure at default on the basis of qualitative analysis on historical statistical data (such as counterpartyranking, guarantee methods, collateral category, and repayment way) and forward-looking information.
3. Details of reconciliation of the opening balance and the closing balance of provision for impairmentof financial instruments can refer to the description in VII 4, 5 and 8 of Section X.
4. Credit risk exposure and credit risk concentration
The Company's credit risk is primarily from cash and bank balances and receivables. In order tocontrol the risks associated with aforementioned items, the Company has taken the following measures.
(1) Cash and bank balances
The credit risk of the Company is limited because the Company has deposited bank deposits and
other monetary funds in banks with high credit ratings.
(2) Receivables
The Company regularly evaluates the creditworthiness of its customers with deals on credit, andselects to deal with approved and creditworthy customers subject to the results of the credit assessmentwith monitoring the balance of its receivables, so as to ensure that the Company is not exposed tosignificant risk of bad debt.
No collaterals are required since the Company only deals with third parties that are approved andcreditworthy. The concentrated credit risks are managed by customers. As June 30, 2021, the Company
faced certain credit concentration risks 60.03% (December 31, 2020: 86.37%) of the Company's accountsreceivable comes from top 5 customers. The Company held no collateral or other credit ranking measuresfor the balance of accounts receivable.The maximum exposure to the Company is the carrying amount of each financial asset in the balancesheet.(II) Liquidity riskLiquidity risk refers to the risk that the Company is in shortage of funds in performing obligationsthat are settled by delivering cash or another financial asset. Liquidity risk may arise from an inability tosell a financial asset at fair value as soon as possible, a counterparty's inability to pay its contractualliabilities, the accelerated maturity of liabilities, or an inability to generate expected cash flows.
In order to control this risk, the Company balances the continuity and flexibility of financing by usingvarious financing measures such as notes settlement and bank loans comprehensively and adopting bothlong-term and short-term financing methods to optimize the financing structure. The Company hasreceived credit facilities from a number of commercial banks to satisfy its working capital requirementsand capital expenditures.
Financial liabilities classified by remaining maturity dates
Item | Closing balance | ||||
Book value | Undiscounted contract amount | Within 1 year | 1-3 years | Over 3 years | |
Bank borrowings | 256,263,752.33 | 261,284,410.71 | 153,573,265.07 | 107,711,145.64 | |
Notes payable | 180,257,484.74 | 180,257,484.74 | 180,257,484.74 | ||
Accounts payable | 272,203,766.10 | 272,203,766.10 | 272,203,766.10 | ||
Other payables | 251,631,758.97 | 251,631,758.97 | 251,631,758.97 | ||
Long-term accounts payable | 3,230,050.00 | 3,536,904.75 | 3,536,904.75 | ||
Sub-total | 963,586,812.14 | 968,914,325.27 | 857,666,274.88 | 111,248,050.39 |
Item | Opening balance | ||||
Book value | Undiscounted contract amount | Within 1 year | 1-3 years | Over 3 years | |
Bank borrowings | 335,041,546.85 | 347,893,031.23 | 281,565,349.76 | 66,327,681.47 | |
Notes payable | 116,822,674.67 | 116,822,674.67 | 116,822,674.67 | ||
Accounts payable | 226,494,815.90 | 226,494,815.90 | 226,494,815.90 | ||
Other payables | 58,821,952.01 | 58,821,952.01 | 58,821,952.01 | ||
Long-term accounts payable | 3,262,450.00 | 3,572,382.75 | 3,572,382.75 | ||
Sub-total | 740,443,439.43 | 753,604,856.56 | 683,704,792.34 | 69,900,064.22 |
future cash flows of a financial instrument will fluctuate because of changes in market interest rates. TheCompany is exposed to the risk of fair value interest rate due to financial instruments with a fixed interestrate and to the risk of cash value interest rate due to financial instruments with a floating interest rate. TheCompany determines the proportion between the fixed-rate financial instruments and the floating-ratefinancial instruments based on market conditions, and maintains appropriate portfolios of financialinstruments through regular review and monitoring. The cash flow interest rate risk exposed to theCompany relates primarily to the Company’s floating-rate interest-bearing bank borrowings.As of June 30, 2021, the Company held bank loans of RMB 255,912,194.76 as principal (December31, 2020: RMB 334,317,535.43) at floating rates. On the assumption that other variables remainunchanged, a change in the interest rate by 50 base points will not cause significant impact on the totalprofits and shareholders’ equity of the Company.
2. Currency risk
Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuatebecause of changes in foreign exchange rates. The Company's exposure to the currency risk is primarilyassociated with the Company’s monetary assets and liabilities dominated in foreign currencies. TheCompany's exposure to the currency risk is primarily associated with the Company’s monetary assets andliabilities dominated in foreign currencies. If the monetary assets and liabilities dominated in foreigncurrencies are imbalanced in a short time, the Company will purchase and sell foreign currencies at themarket exchange rate to keep the net risk exposure acceptable.The closing balance of the Company’s monetary assets and liabilities dominated in foreign currenciesare disclosed in VII.82 of Section X in details.
XI. Disclosure of fair value
1. The closing balance of the fair value of assets and liabilities measured at fair value
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item | Closing balance of fair value | |||
Level 1 | Level 2 | Level 3 | Total | |
I. Continuous fair value measurement | ||||
(I) Held-for-trading financial assets | ||||
1. Financial assets at fair value through profit or loss | ||||
(1) Investment in debt instrument | ||||
(2) Investment in equity instrument | ||||
(3)Derivative financial assets | ||||
(4) Structural deposits | 420,000,000.00 | 420,000,000.00 | ||
(5) Performance compensation consideration | 37,982,988.00 | 37,982,988.00 |
2. Designated as financial assets at fair value through profit or loss | ||||
(1) Investment in debt instrument | ||||
(2) Investment in equity instrument | ||||
(II) Other debt investments | ||||
(III) Other equity instrument investments | 11,975,419.38 | 11,975,419.38 | ||
(IV) Investment properties | ||||
1. Land use right for leasing purpose | ||||
2. Buildings leased | ||||
3. Land use right held for the purpose of transfer after value appreciation | ||||
(V) Biological assets | ||||
1. Consumable biological assets | ||||
2. Bearer biological assets | ||||
Receivables financing | 1,214,306.00 | 1,214,306.00 | ||
Total assets continuously measured at fair value | 471,172,713.38 | 471,172,713.38 | ||
(VI) Held-for-trading financial liabilities | ||||
1. Financial liabilities at fair value through profit or loss | ||||
Including: Held-for-trading bonds issued | ||||
Derivative financial liabilities | ||||
Others | ||||
2. Designated as financial liabilities at fair value through profit or loss | ||||
Total liabilities continuously measured at fair value | ||||
II. Non-continuous fair value measurement | ||||
(I) Held-for-sale assets |
Total assets that are not continuously measured at fair value | ||||
Total liabilities that are not continuously measured at fair value |
9. Others
□ Applicable√ N/A
XII. Related-party relationships and transactions
1. Parent of the Company
√ Applicable□ N/A
Unit: 0’000 Yuan Currency: RMB
Name of the parent | Registration place | Business nature | Registered capital | Proportion of the Company's shares held by the parent (%) | Proportion of the Company's voting right held by the parent (%) |
Shenzhen Appotronics Holdings Co., Ltd. | Shenzhen | R&D and sales of semiconductor products | 1,000 | 17.62 | 17.62 |
Name of associates or joint ventures | Relationship with the Company |
Cinionic Limited | Associate |
GDC Technology Limited (BVI) | Associate |
Name of other related party | Relationship between other related party and the Company |
Shenzhen Bevix Technology Co., Ltd. | Holding more than 5% of shares in the company |
Shenzhen YLX Technology Development Co., Ltd. | Controlled by the same de facto controller |
China Film Equipment Corporation and its affiliates | Minority shareholders holding more than 10% shares in the subsidiary and their affiliates |
Xiaomi Communications Technologies Co., Ltd. and its affiliates | Minority shareholders holding more than 10% shares in the subsidiary and their affiliates |
Beijing Donview Education Technology Co., Ltd. and its affiliates | Minority shareholders holding more than 10% shares in the subsidiary and their affiliates |
WeCast Technology Corp. and its affiliates | The Company’s de facto controller Mr. LI Yi serves as the chairman of WeCast |
Related party | Subject matter | Amount for the current period | Amount for the prior period |
Xiaomi Communications Technologies Co., Ltd. and its affiliates | Electronic components and services | 151,065,707.11 | 99,513,144.41 |
China Film Equipment Corporation and its affiliates | Power supply, water cooling and services | 14,313,447.67 | 10,824,895.69 |
GDC and its affiliates | Electronic components | 5,711,956.57 | 3,586,000.00 |
Beijing Donview Education Technology Co., Ltd. and its affiliates | Maintenance services | 9,911.50 | 17,123.89 |
WeCast Technology Corp. and its affiliates | Sales agency services | 155,309.88 | |
Sub-total | 171,256,332.73 | 113,941,163.99 |
Related party | Subject matter | Amount for the current period | Amount for the prior period |
Xiaomi Communications Technologies Co., Ltd. and its affiliates | Laser TV and smart mini projector | 341,732,526.82 | 254,631,263.83 |
China Film Equipment Corporation and its affiliates | Laser light source and cinema projection services | 42,679,705.11 | 34,976,389.39 |
Cinionic Limited | Cinema light source | 3,130,401.43 | 35,973,430.61 |
Beijing Donview Education Technology Co., Ltd. and its affiliates | Education projector | 686,049.45 | 6,138,857.93 |
GDC and its affiliates | Cinema projector and mould | 3,729,645.10 | 13,274.34 |
WeCast Technology Corp. and its affiliates | 6,196,785.06 | ||
Sub-total | 398,155,112.97 | 331,733,216.10 |
Name of lessor | Type of leased assets | Lease fees recognized in the current period | Lease fees recognized in the prior period |
China Film Equipment Corporation and its affiliates | Property lease | 1,037,804.47 | 835,379.65 |
Description of guarantees with related parties
□ Applicable√ N/A
(5). Borrowings/loans with related parties
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Affiliated party | Amount of borrowings/loans | Commencement date | Maturity date | Description |
Borrowings | ||||
China Film Equipment Corporation and its affiliates | 19,320,000.00 | July 6, 2020 | July 5, 2021 | Repaid on January 26, 2021 |
Item | Amount for the current period | Amount for the prior period |
Compensation for key management personnel | 659.61 | 657.82 |
Item | Related party | Closing balance | Opening balance | ||
Carrying amount | Provision for bad debts | Carrying amount | Provision for bad debts | ||
Accounts receivable | Beijing Donview Education Technology Co., Ltd. and its affiliates | 196.18 | 9.81 | 3,017.00 | 150.85 |
Accounts receivable | GDC Technology Limited (BVI) and its affiliates | 1,263,338.37 | 63,166.92 | 2,283,483.24 | 114,174.16 |
Accounts receivable | Xiaomi Communications Technologies Co., Ltd. and its affiliates | 54,205,349.26 | 2,710,267.46 | 248,915,862.75 | 12,445,793.14 |
Accounts receivable | WeCast and its affiliates | 6,220,785.59 | 311,039.28 | ||
Accounts receivable | China Film Equipment Corporation and its affiliates | 6,110,620.30 | 305,662.04 | 6,125,422.64 | 306,402.16 |
Accounts receivable | Cinionic Limited | 979,577.26 | 48,978.86 | 452,175.57 | 22,608.78 |
Sub-total | 68,779,866.96 | 3,439,124.38 | 257,779,961.20 | 12,889,129.09 | |
Prepayments | China Film Equipment Corporation and its affiliates | 1,887,660.61 | 3,107,696.59 | ||
Prepayments | GDC Technology Limited (BVI) and its affiliates | 2,883,384.53 | |||
Sub-total | 1,887,660.61 | 5,991,081.12 | |||
Other receivables | China Film Equipment Corporation and its affiliates | 313,305.00 | 15,665.25 | 296,435.00 | 14,821.75 |
Other receivables | Xiaomi Communications Technologies Co., Ltd. and its affiliates | 100,000.00 | 5,000.00 | 100,000.00 | 5,000.00 |
Sub-total | 413,305.00 | 20,665.25 | 396,435.00 | 19,821.75 |
Item | Related party | Closing balance of carrying amount | Opening balance of carrying amount |
Accounts payable | China Film Equipment Corporation and its affiliates | 9,114,032.85 | |
Accounts payable | GDC Technology Limited (BVI) and its affiliates | 5,593.76 | |
Sub-total | 9,119,626.61 | ||
Receipts in advance | Beijing Donview Education Technology Co., Ltd. and its affiliates | 282.94 | |
Receipts in advance | China Film Equipment Corporation and its affiliates | 895,854.50 | 14,032,071.28 |
Sub-total | 896,137.44 | 14,032,071.28 | |
Contract liabilities | GDC Technology Limited (BVI) and its affiliates | 15,108.32 | |
Contract liabilities | China Film Equipment Corporation and its affiliates | 80,684.07 | 1,384,955.75 |
Sub-total | 80,684.07 | 1,400,064.07 | |
Other payables | China Film Equipment Corporation and its affiliates | 19,343,613.33 |
Other payables | Xiaomi Communications Technologies Co., Ltd. and its affiliates | 9,620.70 | 101,668.48 |
Other payables | WeCast Technology Corp. and its affiliates | 154,534.83 | |
Sub-total | 164,155.53 , | 19,445,281.81 |
Total number of the Company's equity instruments granted during the period | 17,100,000.00 |
Total number of the Company's equity instruments executed during the period | 0 |
Total number of the Company's equity instruments lapsed during the period | 142,360.00 |
Range of exercise prices and remaining contractual life of the Company's share options outstanding at the end of the period | Granted on: October 14, 2019, grant price: RMB 17.425/share, remaining contractual life: 16 months; Granted on: October 13, 2020, grant price: RMB 17.425/share, remaining contractual life: 16 months; Granted on: April 22, 2021, grant price: RMB 17.5/share, remaining contractual life: 34 months; Granted on: April 22, 2021, grant price: RMB 18.5/share, remaining contractual life: 34 months; Granted on: April 22, 2021, grant price: RMB21 /share, remaining contractual life: 34 months. |
Range of exercise prices and remaining contractual life of the Company's other equity instruments outstanding at the end of the period | None |
The method of determining the fair value of equity instruments at the grant date | Open market quotes |
The basis of determining the number of equity instruments expected to be executed | Actual grant amount |
Reasons for the significant difference between the estimate in the current period and that in the prior period | None |
Amounts of equity-settled share-based payments accumulated in capital reserve | 44,720,790.55 |
Total expenses recognized arising from equity-settled share-based payments | 22,312,482.85 |
No. | Rent address | Rent area(square meters) | Rent purpose | Rent period | Rent expense/year |
1 | Yaochuan Industrial Zone, Tangwei Community, Fuhai Street, Bao'an District, Shenzhen | 23,765.57 | Office administration, research and development, plant and dormitory | From December 1, 2018 to November 30, 2022 | 12,376,721.56 |
2 | C1003, Building B6, Dongsheng Science & Technology Park, 66 West Xiaokou Road, Haidian District, Beijing | 898.30 | Office administration | From May 11, 2021 to May 10, 2023 | 2,915,517.36 |
No. | Rent address | Rent area(square meters) | Rent purpose | Rent period | Rent expense/year |
3 | 20/F, 21/F, 22/F, United Headquarter Building, High-Tech Zone, No. 63 Xuefu Road, Nanshan District, Shenzhen | 6,143.79 | Research and development, office administration | From August 1, 2019 to December 31, 2021 | 2,808,589.86 |
4 | Section B, 1/F (1,064.92 m2), and 2/F (2,953.09 m2), Building 13, Jintaizhi Industrial Park, No. 22 Jinyu Avenue, Liangjiang New District, Chongqing. An area of 2,979.98 m2 on 3/F, Building 13 thereof is used as reserve. | 4,018.01 | Office administration | From October 3, 2020 to October 2, 2025 | 2,366,595.29 |
5 | 23/F, United Headquarter Building, High-Tech Zone, No. 63 Xuefu Road, Nanshan District, Shenzhen | 2,047.93 | Research and development, office administration | From February 1, 2020 to January 31, 2025 | 1,918,477.00 |
6 | Room101, 1/F, Building 22E, Phase III of Hong Kong Science and Technology Park | 1,138.25 | Office administration | From March 20, 2019 to March 19, 2022 | 1,846,366.32 |
Case No. | Cause of action | Plaintiff(s) | Defendant(s) | Patents involved | Subject amount | Progress |
(2019) Yue 03 Min Chu No.s 2943, 2944, 2946, 2948, 2951 | Infringement of patent rights of inventions | Appotronics Corporation Limited | Defendant 1: Delta Electronics Business Management (Shanghai) Co., Ltd. Defendant 2: Delta Video Display System (Wujiang) Limited Defendant 3: Shenzhen Super Network Technology Co., Ltd. | 200810065225.X | RMB 28 million | Pending (second instance) |
(2021) Yue 03 Min Chu No. 2295 | Infringement of patent rights of inventions | Appotronics Corporation Limited, HU | Defendant 1: Delta Electronics, Inc. | ZL201610387831.8 | RMB 300.000 | Pending (first instance) |
Fei and LI Yi | Defendant 2: ZHANG Kesu Defendant 3: HUA Jianhao Defendant 4: WANG Bo | |||||
(2020) Yue 73 Zhi Min Chu Nos. 1335 -1341, 135, 1355 -1361 | Infringement of patent rights of inventions | Appotronics Corporation Limited | Defendants: Delta Electronics Business Management (Shanghai) Co., Ltd., Delta Video Display System (Wujiang) Limited, and Dijia Baosheng (Beijing) Electronic Technology Co., Ltd., etc. | ZL200880107739.5, ZL200810065225.X | RMB 80 million | Pending (first instance) |
Case No. | Cause of action | Plaintiff(s) | Defendant(s) | Patents involved | Subject amount | Progress |
(2019) Yue 73 Zhi Min Chu No. 662 | Infringement of patent rights of inventions | Delta Electronics, Inc. | Appotronics Corporation Limited; Futian SPN Projector & Video System Firm of Shenzhen | ZL201610387831.8 | Damages of RMB 16.00 million + rights protection cost of RMB 145,343 | Pending (first instance) |
(2019) Yue 73 Zhi Min Chu No. 663 | Infringement of patent rights of inventions | ZL201310017478.0 | Damages of RMB 16.00 million + rights protection cost of RMB 145,343 | Pending (second instance) | ||
(2019) Jing 73 Min Chu No. 1275 | Infringement of patent rights of inventions | Fengmi (Beijing) Technology Co., Ltd.; Appotronics Corporation Limited | ZL201610387831.8 | Damages of RMB 15.00 million + rights protection cost of RMB 1.01 million | Pending (first instance) | |
(2019) Jing 73 Min Chu No. 1276 | Infringement of patent rights of inventions | ZL201410249663.7 | Damages of RMB 15.00 million + rights protection cost of RMB 1.01 million | Pending (first instance) | ||
(2019) Jing 73 Min Chu No. 1277 | Infringement of patent rights of inventions | ZL201310017478.0 | Damages of RMB 15.00 million + rights protection cost | Pending (second instance) |
of RMB 1.01 million | |||||
(2019) Jing 73 Min Chu No. 1278 | Infringement of patent rights of inventions | ZL201010624724.5 | Damages of RMB 15.00 million + rights protection cost of RMB 1.01 million | Pending (first instance) |
Pursuant to the performance compensation agreement reached by both parties, on June 30, 2021, theCompany recognized the performance compensation as held-for-trading financial assets of RMB 37.983million, and recognized the profit or loss on changes in the fair value of RMB 38.1759 million (thedifference arises from the impact of the exchange rate for translation of statements).
XVI. Other significant events
1. Corrections of prior period errors
(1). Retrospective application
□ Applicable√ N/A
(2). Prospective application
□ Applicable√ N/A
2. Debt restructuring
□ Applicable√ N/A
3. Asset swap
(1). Exchange of non-monetary assets
□ Applicable√ N/A
(2). Other asset swap
□ Applicable√ N/A
4. Annuity plan
□ Applicable√ N/A
5. Discontinued operations
□ Applicable√ N/A
6. Segment reporting
(1). Determination basis and accounting policies of reporting segments
□ Applicable√ N/A
(2). Financial information of reporting segments
□ Applicable√ N/A
(3). If the Company has no reporting segments, or cannot disclose the total assets and liabilities
of reporting segments, specify the reasons
□ Applicable√ N/A
(4). Other description:
√ Applicable□ N/A
The Company has no reporting segments for the lack of multiple operations. The details of the Company’sprincipal activity income and principal activity cost by businesses and products and by regions are asfollows:
Categorized by businesses and products:
Unit: 0’000 Yuan
Item | Amount of the current period | Amount of the prior period | ||
Principal activity income | Principal activity cost | Principal activity income | Principal activity cost | |
1. Sales | 91,163.98 | 65,553.48 | 68,717.24 | 48,566.65 |
2. Projection service | 18,565.59 | 6,437.12 | 2,743.30 | 4,254.95 |
3. Other business | 739.35 | 370.63 | 141.98 | 157.18 |
Sub-total | 110,468.92 | 72,361.23 | 71,602.52 | 52,978.78 |
Project | Amount of the current period | Amount of the prior period | ||
Principal activity income | Principal activity cost | Principal activity income | Principal activity cost | |
Domestic | 105,208.67 | 69,458.21 | 64,013.91 | 50,343.56 |
Overseas | 5,260.25 | 2,903.02 | 7,588.61 | 2,635.22 |
Sub-total | 110,468.92 | 72,361.23 | 71,602.52 | 52,978.78 |
Aging | Closing balance of carrying amount |
Within 1 year | |
Including: Subitems within 1 year | |
Sub-total of items within 1 year | 510,565,166.80 |
1 to 2 years | 22,014,323.32 |
2 to 3 years | |
Over 3 years | 55,200.00 |
Total | 532,634,690.12 |
(2). Disclosure by categories of provision for bad debts
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Category | Closing balance | Opening balance | ||||||||
Carrying amount | Provision for bad debts | Book value | Carrying amount | Provision for bad debts | Book value | |||||
Amount | Proportion (%) | Amount | Proportion of provision (%) | Amount | Proportion (%) | Amount | Proportion of provision (%) | |||
Provision for bad debts made by group | 532,634,690.12 | 100.00 | 2,016,202.15 | 0.38 | 530,618,487.97 | 569,449,754.94 | 100.00 | 1,910,248.15 | 0.34 | 567,539,506.79 |
Including: | ||||||||||
Group of aging | 39,220,043.07 | 7.37 | 2,016,202.15 | 5.13 | 37,259,040.92 | 37,102,820.20 | 6.52 | 1,910,248.15 | 5.15 | 35,192,572.05 |
Combination of related parties in the scope of consolidation | 493,359,447.05 | 92.63 | 493,359,447.05 | 532,346,934.74 | 93.48 | 532,346,934.74 | ||||
Total | 532,634,690.12 | / | 2,016,202.15 | / | 530,618,487.97 | 569,449,754.94 | / | 1,910,248.15 | / | 567,539,506.79 |
Provision for bad debts made individually:
□ Applicable√ N/A
Provision for bad debts made by group:
√ Applicable□ N/A
Item by group: Group of aging
Unit: Yuan Currency: RMB
Name | Closing balance | ||
Accounts receivable | Provision for bad debts | Proportion of provision (%) | |
Group of aging | 39,220,043.07 | 2,016,202.15 | 5.13 |
Combination of related parties in the scope of consolidation | 493,359,447.05 | ||
Total | 532,634,690.12 | 2,016,202.15 | 0.38 |
Category | Opening balance | Changes for the current period | Closing balance | |||
Provision | Recovery or reversal | Write off or cancellation | Other changes | |||
Provision for bad debts made by group | 1,910,248.15 | 105,954.00 | 2,016,202.15 | |||
Total | 1,910,248.15 | 105,954.00 | 2,016,202.15 |
Entity | Carrying amount | Proportion to the balance of accounts receivable (%) | Provision for bad debts |
Fengmi (Beijing) Technology Co., Ltd. | 356,534,307.62 | 66.94 | |
CINEAPPO Laser Cinema Technology (Beijing) Co., Ltd. | 95,247,572.00 | 17.88 | |
Appotronics Technology (Changzhou) Co., Ltd. | 18,725,821.64 | 3.52 | |
Appotronics Hong Kong Limited | 17,397,682.40 | 3.27 | |
Shenzhen Nearbyexpress Technology Development Company Limited | 12,935,095.24 | 2.43 | 646,754.76 |
Sub-total | 500,840,478.90 | 94.03 | 646,754.76 |
Item | Closing balance | Opening balance |
Interest receivable | ||
Dividends receivable | ||
Other receivables | 42,129,668.23 | 71,654,117.57 |
Total | 42,129,668.23 | 71,654,117.57 |
(4). Dividends receivable
□ Applicable√ N/A
(5). Dividends receivable with significant amounts aged more than 1 year
□ Applicable√ N/A
(6). Provision for bad debts
□ Applicable√ N/A
Other description:
□ Applicable√ N/A
Other receivables
(7). Disclosure by aging
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Aging | Closing balance of carrying amount |
Within 1 year | |
Including: Subitems within 1 year | |
Sub-total of items within 1 year | 8,924,453.98 |
1 to 2 years | 28,738,931.85 |
2 to 3 years | 3,627,218.00 |
Over 3 years | 1,162,166.40 |
Total | 42,452,770.23 |
Nature of receivables | Closing balance of carrying amount | Opening balance of carrying amount |
Deposits/margins/petty cash | 5,723,951.27 | 5,911,673.21 |
Receivables from related parties in the scope of consolidation | 35,990,730.27 | 62,284,074.96 |
Indemnity receivable | 3,577,279.61 | |
Temporary receivables | 738,088.69 | 374,249.92 |
Total | 42,452,770.23 | 72,147,277.70 |
Provision for bad debts | Stage I | Stage II | Stage III | Total |
12-month ECL in the future | Lifetime ECL (without credit impairment) | Lifetime ECL (with credit impairment) | ||
Balance as at January 1, 2021 | 493,160.13 | 493,160.13 | ||
Balance as at January 1, 2021 in the current period |
--transferred to Stage II | ||||
--transferred to Stage III | ||||
--reversed to Stage II | ||||
--reversed to Stage I | ||||
Provision | -170,058.13 | -170,058.13 | ||
Reversal | ||||
Write-off | ||||
Cancellation | ||||
Other changes | ||||
Balance as at June 30, 2021 | 323,102.00 | 323,102.00 |
Category | Opening balance | Changes for the current period | Closing balance | |||
Provision | Recovery or reversal | Write off or cancellation | Other changes | |||
Provision for bad debts made by group | 493,160.13 | -170,058.13 | 323,102.00 | |||
Total | 493,160.13 | -170,058.13 | 323,102.00 |
Entity | Nature of other receivables | Closing balance | Aging | Proportion to the balance of other receivables (%) | Provision for bad debts Closing balance |
Fengmi (Beijing) Technology Co., Ltd. | Receivables from related parties in the scope of consolidation | 21,208,080.81 | Within 1 year and 1-2 years | 49.96 | |
Shenzhen Appotronics Laser Display Technology Co., Ltd. | Receivables from related parties in the scope of consolidation | 14,319,500.00 | Within 1 year and 1-2 years | 33.73 | |
Shenzhen Meisheng Industry Co., Ltd. | Deposits/margins/petty cash | 3,574,618.00 | 2-3 years | 8.42 | 178,730.90 |
Shenzhen Science and Technology Assessment Management Center | Deposits/margins/petty cash | 1,257,075.20 | 1-2 years | 2.96 | 62,853.76 |
Qingdao Haier Multimedia Co., Ltd. | Deposits/margins/petty cash | 500,000.00 | Within 1 year | 1.18 | 25,000.00 |
Total | / | 40,859,274.01 | / | 96.25 | 266,584.66 |
Item | Closing balance | Opening balance | ||||
Carrying amount | Provision for impairment | Book value | Carrying amount | Provision for impairment | Book value | |
Investments in subsidiaries | 472,943,998.33 | 39,827,792.79 | 433,116,205.54 | 467,533,569.26 | 45,885,284.27 | 421,648,284.99 |
Investments in associates and joint ventures | ||||||
Total | 472,943,998.33 | 39,827,792.79 | 433,116,205.54 | 467,533,569.26 | 45,885,284.27 | 421,648,284.99 |
Investees | Opening balance | Increase | Decrease | Closing balance | Provision for impairment | Closing balance of provision for impairment |
Appotronics Timewaying (Beijing) Technology Co., Ltd. | 27,000,000.00 | 27,000,000.00 | 27,000,000.00 | |||
Shenzhen Appotronics Software Technology Co., Ltd. | 1,647,962.22 | 250,659.09 | 1,898,621.31 | |||
Beijing Orient Appotronics Technology Co., Ltd. | 5,900,000.00 | 5,900,000.00 | ||||
Fengmi (Beijing) Technology Co., Ltd. | 30,014,636.09 | 824,038.89 | 27,500,000.00 | 3,338,674.98 | -6,057,491.48 | |
Shenzhen Appotronics Laser Display Technology Co., Ltd. | 18,966,857.26 | 18,966,857.26 | ||||
Shenzhen Appotronics Display Device Co., Ltd. | 3,000,000.00 | 3,000,000.00 | ||||
CINEAPPO Laser Cinema Technology | 32,576,902.46 | 3,190,227.69 | 35,767,130.15 |
(Beijing) Co., Ltd. | ||||||
Qingda Appotronics (Xiamen) Technology Co., Ltd. | 5,100,000.00 | 5,100,000.00 | 827,792.79 | |||
Shenzhen Appotronics Xiaoming Technology Co., Ltd. | 12,000,000.00 | 12,000,000.00 | 12,000,000.00 | |||
Appotronics Hong Kong Limited | 301,668,683.52 | 514,966.33 | 302,183,649.85 | |||
Appotronics Technology (Changzhou) Co., Ltd. | 2,000,000.00 | 2,000,000.00 | ||||
Tianjin Bainian Film Partnership (LP) | 26,954,120.20 | 26,954,120.20 | ||||
WEMAX LLC | 24,349.32 | 27,739.72 | 52,089.04 | |||
Appotronics USA, Inc. | 60,873.29 | 139,469.18 | 200,342.47 | |||
JoveAI Innovation,Inc | 619,184.90 | 88,524.85 | 707,709.75 | |||
Fengmi (Chongqing) Innovation Technology Co., Ltd. | 27,874,803.32 | 27,874,803.32 | ||||
Total | 467,533,569.26 | 32,910,429.07 | 27,500,000.00 | 472,943,998.33 | -6,057,491.48 | 39,827,792.79 |
Item | Amount for the current period | Amount for the prior period |
Revenue | Cost | Revenue | Cost | |
Main business | 572,827,875.91 | 381,855,853.31 | 384,899,378.41 | 256,660,786.97 |
Total | 572,827,875.91 | 381,855,853.31 | 384,899,378.41 | 256,660,786.97 |
Item | Amount for the current period | Amount for the prior period |
Long-term equity investments accounted for using the cost method | 7,452,000.00 | |
Investment income from disposal of long-term equity investments | 6,057,494.48 | |
Investment income from disposal of held-for-trading financial assets | 2,145,923.39 | 10,824,793.71 |
Total | 15,655,417.87 | 10,824,793.71 |
Item | Amount | Description |
Gain or loss on disposal of non-current assets | 2,048,154.10 | |
Unauthorized examination and approval, or lack of official approval documents, or tax revenue return and abatement | ||
Government grants recognized in profit or loss (other than grants which are closely related to the Company's business and are either in fixed | 71,808,211.32 |
amounts or determined under quantitative methods in accordance with the national standard) | ||
Capital occupation fees charged to the non-financial enterprises and included in profit or loss for the current period | ||
Gains when the investment cost of acquiring a subsidiary, an associate and a joint venture is less than the fair value of the identifiable net assets of the investee | ||
Gains or losses from exchange of non-monetary assets | ||
Gains or losses from entrusting others with investment or asset management | 2,145,923.39 | |
Asset impairment provision made resulting from force majeure such as natural disasters | ||
Gains or losses from debt restructuring | ||
Enterprise restructuring fees, such as staffing expenses and integration fees | ||
Gains or losses that exceeds the fair value in transaction with unfair price | ||
Net profit or loss of subsidiaries from the beginning of the period up to the business combination date recognized as a result of business combination of enterprises involving enterprises under common control | 11,386,216.47 | |
Gains or losses on contingencies that have no relation with the normal operation of the Company | ||
Profit or loss on changes in the fair value of held-for-trading financial assets, derivative financial assets, held-for-trading financial liabilities and derivative financial liabilities and investment income on disposal of held-for-trading financial assets, derivative financial assets, held-for-trading financial liabilities, derivative financial liabilities and other debt investments, other than those used in the effective hedging activities relating to normal operating business | 38,175,900.00 | |
Reversal of impairment provision of accounts receivable and contract assets that have undergone impairment test alone | ||
Gains or losses from outward entrusted loaning | ||
Gains or losses from changes in the fair values of investment properties that are subsequently measured using the fair value model |
Effect of a one-time adjustment on current profit and loss according to the requirements of tax and accounting laws and regulations | ||
Custody fees of entrusted operation | ||
Other non-operating income and expenses besides the above | 501,309.74 | |
Other gains or losses meeting the definition of non-recurring profit or loss | 571,819.78 | |
Effect of income tax | -17,232,653.91 | |
Effects attributable to minority interests | -24,952,896.18 | |
Total | 84,451,984.71 |
Profit for the reporting period | Weighted average return on net assets (%) | Earnings per share | |
Basic earnings per share | Diluted earnings per share | ||
Net profit attributable to ordinary shareholders of the Company | 6.89 | 0.33 | 0.33 |
Net profit after deduction of non-recurring profits or losses attributable to ordinary shareholders of the Company | 3.05 | 0.15 | 0.15 |