Stock Code: 688007 Stock Short Name: Appotronics
Appotronics Corporation LimitedThe Third Quarter Report in 2022
The Board of Directors and all the directors of the Company warrant that theinformation contained in this Report is free from any misrepresentation, misleadingstatement or material omission, and agree to assume the liability for the truth,accuracy and completeness of this Report according to the law.
Important note:
The Board of Directors, the Board of Supervisors, directors, supervisors and senior officers ofthe Company hereby warrant that the information contained in this Quarter Report is true, accurateand complete and this Report is free from any misrepresentation, misleading statement or majoromission, and agree to assume joint and several liability for this Quarter Report.The Principal of the Company, Chief Accountant and Person in charge of the Accounting Body(Chief Accountants) warrant the information presented in the financial statements in this QuarterReport is true, accurate and complete.Whether the third quarter financial statements have been audited
□Yes√No
本报告为深圳光峰科技股份有限公司自愿披露的《2022年第三季度报告（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。
This Third Quarter Report in 2022 (English Version) is voluntarily disclosed by AppotronicsCorporation Limited; in the event of any inconsistency in the understanding of the Chinese andEnglish versions of this Report, the Chinese version prevails.
I. Major financial dataKey accounting data and financial indicators
In RMB
| Item | During the reporting period | Change on a year-on-year basis(%) | From the beginning of the year to the end of the reporting period | Change on a year-on-year basis (%) |
| Operating income | 606,484,116.96 | 9.09 | 1,875,806,319.07 | 12.96 |
| Net profit attributable to shareholders of the listed company | 45,389,736.02 | -24.27 | 91,356,217.12 | -56.78 |
| Net profit attributable to shareholders of the listed company after deduction of non-recurring profit or loss | 32,170,896.11 | -21.71 | 54,176,283.03 | -49.86 |
| Net cash flow from operating activities | N/A | N/A | 11,219,837.41 | N/A |
| Basic earnings per share (RMB/share) | 0.10 | -23.08 | 0.20 | -57.45 |
| Diluted earnings per share (RMB/share) | 0.10 | -23.08 | 0.20 | -56.52 |
| Weighted average return on net assets (%) | 1.78 | Decrease by 0.75 % | 3.64 | Decrease by 5.74% |
| Total R&D investments | 59,286,764.89 | -2.37 | 174,246,551.26 | 11.80 |
| Proportion of R&D investments to operating income (%) | 9.78 | Decrease by 1.14% | 9.29 | Decrease by 0.1% |
| At the end of the reporting period | At the end of the prior year | Change on a year-on-year basis (%) | ||
| Total assets | 4,186,583,215.57 | 4,097,230,955.90 | 2.18 | |
Equity attributable toshareholders of the listedcompany
| Equity attributable to shareholders of the listed company | 2,593,553,081.32 | 2,438,064,581.44 | 6.38 |
Note: The term “reporting period” refers to a period of three months from the beginning ofthis quarter to the end of this quarter, same as below.Items and amounts of non-recurring profit or loss
In RMB
| Item | Amount for the reporting period | Amount from the beginning of the year to the end of the reporting period | Description |
| Profit or loss from disposal of non-current assets | -108,866.07 | -5,048,303.41 | |
| 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) | 5,019,896.14 | 21,046,715.69 | |
| Profit or loss on entrusted investments or assets management | 3,317,217.06 | 9,112,583.88 | |
| 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 | 7,239,843.02 | 20,834,179.08 | |
| 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 | -375,000.00 | -1,809,000.00 |
hedging activities relating to normaloperating business
| hedging activities relating to normal operating business | |||
| Non-operating income and expenses other than above | -403,894.95 | -1,451,888.30 | |
| Other profit or loss that meets the definition of non-recurring profit or loss | 0.00 | 364,144.36 | |
| Less: Effect of income taxes | 1,006,532.41 | 3,777,297.81 | |
| Effects attributable to minority interests (net of tax) | 463,822.88 | 2,091,199.40 | |
| Total | 13,218,839.91 | 37,179,934.09 |
Description of non-recurring profit and loss items defined or listed in the ExplanatoryAnnouncement No. 1 for Public Company Information Disclosures – Non-recurring Profits andLosses being classified into the recurring profit and loss items
□ Applicable√ N/A
Description of and reason for changes in major accounting data and financial indicators
√ Applicable □ N/A
| Item | Change (%) | Main reason |
| Net profit attributable to shareholders of the listed company _ from the beginning of the year to the end of the reporting period | -56.78 | Primarily due to changes in product structure, decreased gross profit margin, increased expenses and decreased non-recurring profit or loss for the first three quarters . |
| Net profit attributable to shareholders of the listed company after deduction of non-recurring profit or loss _ from the beginning of the year to the end of the reporting period | -49.86 | Primarily due to changes in product structure, decreased gross profit margin, and increased expenses for the first three quarters. |
| Net cash flow from operating activities _ from the beginning of the year to the end of the reporting period | N/A | This amount has increased by RMB 32.1367 million on a year-on-year basis, primarily due to the increased sales return and the decreased payment for stocked products. |
| Basic earnings per share (RMB/share) _ from the beginning of the year to the end of the reporting period | -57.45 | Primarily due to the decreases in net profit attributable to shareholders of the listed company for the first three quarters. |
| Diluted earnings per share (RMB/share) _ from the beginning of the year to the end of the reporting period | -56.52 | Primarily due to the decreases in net profit attributable to shareholders of the listed company for the first three quarters. |
(I) Analysis of business situations during the reporting periodWith adherence to the strategic layout of “core technologies + core devices + applicationscenarios” and great attentions to market and customer needs, the Company has achieved steadydevelopment by giving full play to its advantages and accurately grasping market opportunitiesdespite multiple adverse impacts such as recurrence of Covid-19 and severe macro situation. Forthe first three quarters of 2022, its revenue achieved RMB 1.876 billion, up by 12.96% over thesame period of the prior year; net cash flow from operating activities was RMB 11.2198 millioncumulatively, better than that for the same period of the prior year. In the third quarter of 2022, theCompany’s net profit attributable to shareholders of the listed company was RMB 45.3897 million,up by 61.49% on a month-on-month basis, which represented a sound and steady business situationof the Company.During the reporting period, the Company’s main business sectors with great efforts to developare stated as follows.
1.Core device business
1.1 New breakthroughs in vehicle optical business with cooperation with well-knownautomobile companies
Insisting on innovation-driven strategy with focuses on customer needs, the Companycontinued to make more investments in research and development of innovative businesses anddeveloped further cooperation with industry chain partners, and thus achieved new breakthroughsin vehicle optical business. During the reporting period, the Company received the Notice ofDevelopment Designation from its customer BYD Company Ltd, which means that the Companywould become BYD’s supplier to provide vehicle optical components.
1.2 Significant growth in core household device business with active preparation for largeshopping festivals
For the first three quarters of 2022, the Company’s revenue from core household devicebusiness achieved a year-on-year growth of over 140%. Even in the third quarter, the traditionalslack season, the Company’s operating income from core household device business also increasedby over 90% on a year-on-year basis. Looking forward to the fourth quarter, the Company’scustomers will launch a variety of new products to the markets at home and abroad during the periodof “Double 11”, “Black Friday” and other large shopping festivals. Therefore, it is expected that theCompany will achieve a rapid growth on its core household device business.
2. Non-core device business
2.1 Rapid growth in self-owned brand business aiming to the consumer market withhighlighted performance from new products
For the first three quarters of 2022, the Company made greater efforts to promote its self-ownedbrand products in the consumer market. In terms of the Company’s subsidiary Formovie, its revenuefrom self-owned brand business accounted for over 50% of its total revenue for the first threequarters of 2022 and over 70% of its total revenue in the third quarter of 2022.
In September 2022, Formovie launched the new laser projector S5. Due to outstanding priceadvantage and excellent display effect, S5 laser projector received a very warm welcomeimmediately among products with mainstream prices. Responsive to strong demands on S5 laserprojector, the Company was committed to delivering products with excellent quality and after-saleservices as scheduled and continuously strengthening its supply chain management to meetconsumer needs.
2.2 Building industry benchmark continuously for professional display business withnew progress in overseas marketUnder the trend of localization in the professional display market, the Company grasped marketopportunities and gave full play its competitive advantages. Particularly, in terms of engineeringbusiness, the Company made continuous efforts to lighting and large stadium performing artsmarkets with focuses on creating high-quality scene cases; in terms of business education, theCompany accelerated its transformation to higher vocational business education, and successivelywon bids for well-known university business projects. In addition, the Company actively exploredoverseas professional display market, and for the first three quarters of 2022, it overall sales turnoverfrom overseas ODM and self-brand business increased by nearly 160%.(II) Analysis of factors that can affect profits during the reporting periodIn terms of operating income, the Company’s business education grew weakly due to repeatedoutbreak of Covid-19, hence its operating income in the third quarter declined by 16.79% on a year-on-year basis.In terms of selling expenses, the Company’s selling expenses increased by RMB 24.0783million and 43.09% on a year-on-year basis, primarily due to an increase of RMB12.5652 millionin marketing expenses as the Company spent more on market promotion activities in consumermarkets and accelerated the expansion of its self-owned brand business.In terms of administrative expenses, with purposes to motivate core employees playing animportant role in the Company’s new growth curve in the future, the Company successively releasedrestricted stock incentive plans. The share-based payment expenses for the current period werenearly RMB 26 million, up by over 8% compared with the same period of the prior year.
Exclusive of the impact of share-based payment expenses, the Company’s net profitsattributable to owners of the parent company amounted to RMB 73.8406 million, or RMB 60.6218million after deduction of non-recurring profits.
II. Shareholder informationTable of total number of ordinary shareholders and preferred shareholders with resumed votingright as well as shareholding status of top 10 shareholders
Unit: Share
| Total number of holders of ordinary shares at the end of the reporting period | 13,608 | Total number of preferred shareholders with resumed voting right during the reporting period (if any) | 0 | |||
| Shareholding status of top 10 shareholders | ||||||
| Shareholder name | Shareholder nature | Proportio | Number of restricted | Number of restricted | Shares pledged, marked or frozen | |
Number ofsharesheld
| Number of shares held | n of shareholding (%) | shares held | shares held, including the shares lent out under the refinancing arrangement | Status | Quantity | ||
| Shenzhen Appotronics Holdings Limited | Domestic non-stated owned legal person | 79,762,679 | 17.51 | - | - | None | - |
| Shenzhen Yuanshi Laser Industrial Investment Consulting Partnership (LP) | Domestic non-stated owned legal person | 24,139,500 | 5.30 | - | - | None | - |
| Nantong Strait Appotronics Investment Partnership (LP) | Domestic non-stated owned legal person | 22,780,329 | 5.00 | - | - | None | - |
| Shenzhen Appotronics Daye Investment Partnership (LP) | Domestic non-stated owned legal person | 20,430,250 | 4.48 | - | - | None | - |
| Shenzhen Appotronics Hongye Investment Partnership (LP) | Domestic non-stated owned legal person | 15,662,374 | 3.44 | - | - | None | - |
| Shenzhen Jinleijing Investment Limited Partnership (LP) | Domestic non-stated owned legal person | 12,353,106 | 2.71 | - | - | None | - |
| Shenzhen Appotronics Chengye Consulting Partnership (LP) | Domestic non-stated owned legal person | 10,394,846 | 2.28 | - | - | None | - |
| Citron PE Investment (Hong Kong) 2016 Limited | Overseas legal person | 9,549,234 | 2.10 | - | - | None | - |
GREENFUTUREHOLDINGSLIMITED
| GREEN FUTURE HOLDINGS LIMITED | Overseas legal person | 8,977,043 | 1.97 | - | - | None | - | ||
| Bank of China - YFD Stable Income Bond Securities Investment Fund | Others | 8,641,926 | 1.90 | - | - | None | - | ||
| Shareholding status of top 10 unrestricted shareholders | |||||||||
| Shareholder name | Quantity of unrestricted outstanding shares held | Type and quantity of shares | |||||||
| Type | Quantity | ||||||||
| Shenzhen Appotronics Holdings Limited | 79,762,679 | RMB-denominated ordinary share | 79,762,679 | ||||||
| Shenzhen Yuanshi Laser Industrial Investment Consulting Partnership (LP) | 24,139,500 | RMB-denominated ordinary share | 24,139,500 | ||||||
| Nantong Strait Appotronics Investment Partnership (LP) | 22,780,329 | RMB-denominated ordinary share | 22,780,329 | ||||||
| Shenzhen Appotronics Daye Investment Partnership (LP) | 20,430,250 | RMB-denominated ordinary share | 20,430,250 | ||||||
| Shenzhen Appotronics Hongye Investment Partnership (LP) | 15,662,374 | RMB-denominated ordinary share | 15,662,374 | ||||||
| Shenzhen Jinleijing Investment Limited Partnership (LP) | 12,353,106 | RMB-denominated ordinary share | 12,353,106 | ||||||
ShenzhenAppotronicsChengyeConsultingPartnership (LP)
| Shenzhen Appotronics Chengye Consulting Partnership (LP) | 10,394,846 | RMB-denominated ordinary share | 10,394,846 |
| Citron PE Investment (Hong Kong) 2016 Limited | 9,549,234 | RMB-denominated ordinary share | 9,549,234 |
| GREEN FUTURE HOLDINGS LIMITED | 8,977,043 | RMB-denominated ordinary share | 8,977,043 |
| Bank of China - YFD Stable Income Bond Securities Investment Fund | 8,641,926 | RMB-denominated ordinary share | 8,641,926 |
| Description of related party relationship or concerted action of the said shareholders | Among the Company’s top ten shareholders, Shenzhen Appotronics Holdings Limited, Shenzhen Yuanshi Laser Industrial Investment Consulting Partnership (LP), Shenzhen Appotronics Daye Investment Partnership (LP), Shenzhen Appotronics Hongye Investment Partnership (LP), Shenzhen Jinleijing Investment Limited Partnership (LP), and Shenzhen Appotronics Chengye Consulting Partnership (LP) have related party relationship and are acting-in-concert parties. However, these shareholders have neither related party relationship nor acting-in-concert party relationship with the third, the eighth, the ninth and the tenth shareholder. Except those described above, it is unknown that whether there are any other related or acting-in-concert parties among other shareholders stated above. | ||
| Description of participation in the securities margin trading, short selling and refinancing by top 10 shareholders and top 10 unrestricted shareholders (if any) | N/A | ||
III. Other remindersOther important information related to the Company’s business operation that investors arerequested to pay attention to during the reporting period
√ Applicable□ N/A
(I) Litigation and arbitrationDuring the reporting period, details of litigation and arbitration cases where the Company wasinvolved are stated as below:
1. The Company received a civil ruling from the Supreme People’s Court in responsive to thecase numbered (2022) Zui Gao Fa Zhi Min Zhong No. 1586 in the second instance (correspondingto the case of the first instance: (2019) Jing 73 Min Chu No. 1276), in which the court ruled thatDelta Electronics, Inc. was allowed to withdraw the case.
2. The Company received a notice of response for the case numbered (2022) Zui Gao Fa ZhiMin Zhong No. 1587 in the second instance. This case is an appeal case brought by Delta Electronics,Inc. corresponding to the first instance judgement for the (2019) Jing 73 Min Chu No. 1275 caseand is in trial in the second instance.
3. The Company received a civil ruling from Hangzhou Intermediate People’s Court inresponsive to the case numbered (2022) Zhe 01 Min Chu No. 157, in which the court ruled that theplaintiff Shenzhen Wanbo Technology Co., Ltd. was allowed to withdraw the case in respect of thedispute over infringement on design patents.
4. The Company received a civil ruling from Shenzhen Nanshan District People's Court inresponsive to the case numbered (2022) Yue 0305 Min Chu No.10069, in which the court ruled thatthe Company was allowed to withdraw the case. The Company and the defendant Shenzhen Creality3D Technology Co., Ltd. achieved a settlement for the dispute over the sale and purchase contractand withdrew the case. The defendant refunded RMB 163,600 to the Company and paid thelitigation costs.
5. The Company brought a civil litigation (Case No.: (2022) Yue 0305 Su Qian Tiao No. 25324)against Huaxia Jingrui Lighting Technology (Beijing) Co., Ltd. to Shenzhen Nanshan DistrictPeople’s Court in respect of the dispute over the sale and purchase contract, requesting the courtruled the defendant paid goods prices and liquidated damages totaled RMB 1,219,500
6. Qingda Appotronics (Xiamen) Technology Co., Ltd., a subsidiary controlled by theCompany, received an arbitration award (Case No.: XA20220598) from Xiamen ArbitrationCommission in respect of the dispute over the sale and purchase contract, in which it is ruled thatthe respondent Yunzhi Feiyang (Beijing) Network Technology Co., Ltd. shall compensate theclaimer Qingda Appotronics (Xiamen) Technology Co., Ltd. goods prices and liquidated damagestotaled RMB 215,900.(II) Petition for invalidation
1. As of the end of the reporting period, there have been two cases where the Company hasfiled petitions for invalidation against the patents held by Delta Electronics, Inc., which are in trialat the State Intellectual Property Office.
2. As of the end of the reporting period, there have been three cases where petitions forinvalidation has been filed against the patents about which the Company acted as a patentee, whichare in trial at the State Intellectual Property Office. Patents involved in such three cases are “aphosphor-based light source structure for improving the efficiency of light conversion” (Patent No.200810065225.X), “High-brightness excitation method and light-emitting device based on opticalwavelength conversion” (Patent No. 201110086731.9), and “A kind of luminescent ceramic andlight-emitting device for high power light source” (Patent No. 201510219000.5) respectively.
IV. Quarter financial statements(I)Audit opinion
□ Applicable√ N/A
(II)Financial statements
Consolidated Balance SheetSeptember 30, 2022Prepared by: Appotronics Corporation Limited
In RMB, Unaudited
| Item | September 30, 2022 | December 31, 2021 |
| Current Assets: | ||
| Cash and bank balances | 1,320,582,344.29 | 957,729,831.15 |
| Balances with clearing agencies | ||
| Placements with banks and other financial institutions | ||
| Held-for-trading financial assets | 299,191,000.00 | 417,200,000.00 |
| Derivative financial assets | ||
| Notes receivable | 8,034,397.86 | 5,256,603.03 |
| Accounts receivable | 278,886,931.57 | 403,134,471.87 |
| Receivables financing | 2,875,765.10 | 244,860.00 |
| Prepayments | 62,856,672.53 | 98,116,970.83 |
| Insurance premium receivable | ||
| Reinsurance accounts receivables | ||
| Contract reserve of reinsurance receivable | ||
| Other receivables | 26,764,699.46 | 30,472,595.66 |
| Including: Interest receivable | ||
| Dividends receivable | ||
| Financial assets purchased under resale agreements | ||
| Inventories | 841,315,691.78 | 769,621,133.00 |
| Contract assets | 1,175,353.83 | 3,903,859.23 |
| Held-for-sale assets | ||
| Non-current assets due within one year | 5,189,728.92 | 3,473,049.18 |
| Other current assets | 81,106,594.98 | 52,761,820.83 |
| Total Current Assets | 2,927,979,180.32 | 2,741,915,194.78 |
Non-current Assets:
| Non-current Assets: | ||
| Loans and advances | ||
| Debt investments | ||
| Other debt investments | ||
| Long-term receivables | 4,542,748.56 | 5,793,552.74 |
| Long-term equity investments | 158,644,730.18 | 293,601,085.27 |
| Other equity instrument investments | 7,075,419.38 | 7,075,419.38 |
| Other non-current financial assets | ||
| Investment properties | ||
| Fixed assets | 441,014,683.12 | 470,410,450.18 |
| Construction in progress | 228,171,743.11 | 148,620,511.35 |
| Bearer biological assets | ||
| Oil and gas assets | ||
| Use right assets | 40,024,402.11 | 26,803,910.76 |
| Intangible assets | 293,537,765.67 | 301,164,605.56 |
| Development expenditure | ||
| Goodwill | ||
| Long-term prepaid expenses | 6,521,806.15 | 10,126,164.82 |
| Deferred tax assets | 63,877,607.14 | 80,721,419.29 |
| Other non-current assets | 15,193,129.83 | 10,998,641.77 |
| Total Non-current Assets | 1,258,604,035.25 | 1,355,315,761.12 |
| Total assets | 4,186,583,215.57 | 4,097,230,955.90 |
| Current Liabilities: | ||
| Short-term borrowings | 123,042,777.78 | 5,570,878.11 |
| Loans from the central bank | ||
| Taking from banks and other financial institutions | ||
| Held-for-trading financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | 116,849,657.69 | 134,378,967.61 |
| Accounts payable | 290,649,093.44 | 419,966,567.27 |
| Receipts in advance | 124,924,109.57 | 130,288,312.62 |
| Contract liabilities | 43,984,403.44 | 45,541,629.55 |
| Income from financial assets sold under repurchase agreements | ||
| Absorbing deposit and interbank deposit | ||
| Funds from securities trading agency | ||
Funds from securitiesunderwriting agency
| Funds from securities underwriting agency | ||
| Employee benefits payable | 31,177,340.91 | 64,119,087.51 |
| Taxes payable | 5,681,292.36 | 19,546,190.23 |
| Other payables | 44,371,425.62 | 54,115,784.80 |
| Including: Interest payable | ||
| Dividends payable | ||
| Service charge and commissions payable | ||
| Payable reinsurance | ||
| Held-for-sale liabilities | ||
| Non-current liabilities due within one year | 146,745,383.90 | 154,785,116.35 |
| Other current liabilities | 4,718,226.90 | 19,561,104.12 |
| Total Current Liabilities | 932,143,711.61 | 1,047,873,638.17 |
| Non-current Liabilities: | ||
| Insurance contract reserves | ||
| Long-term borrowings | 451,715,399.91 | 368,635,614.64 |
| Bonds payable | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Leasing liabilities | 27,314,483.85 | 10,789,352.69 |
| Long-term payables | ||
| Long-term employee benefits payable | ||
| Provisions | 39,937,347.02 | 36,428,688.94 |
| Deferred income | 7,622,104.11 | 10,266,982.08 |
| Deferred tax liabilities | ||
| Other non-current liabilities | ||
| Total Non-current Liabilities | 526,589,334.89 | 426,120,638.35 |
| Total Liabilities | 1,458,733,046.50 | 1,473,994,276.52 |
| Owners’ (or Shareholders’) equity: | ||
| Paid-in capital (or share capital) | 455,638,398.00 | 452,756,901.00 |
| Other equity instruments | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Capital reserve | 1,508,057,851.64 | 1,400,605,136.65 |
| Less: Treasury shares | 19,377,297.59 | |
| Other comprehensive income | 3,874,452.19 | -16,840,512.60 |
| Special reserve | ||
Surplus reserve
| Surplus reserve | 56,265,868.31 | 56,265,868.31 |
| General risk reserve | ||
| Retained profits | 589,093,808.77 | 545,277,188.08 |
| Total owners’ (or Shareholders’) equity attributable to owners of the Parent Company | 2,593,553,081.32 | 2,438,064,581.44 |
| Minority interests | 134,297,087.75 | 185,172,097.94 |
| Total owners’ (or Shareholders’) equity | 2,727,850,169.07 | 2,623,236,679.38 |
| Total liabilities and owners’ (or Shareholders’) equity | 4,186,583,215.57 | 4,097,230,955.90 |
Legal Representative: LI Yi Chief Accountant: WANG Yingxia Person in Charge of theAccounting Body: WANG Yingxia
Consolidated Income StatementFor the period from January to September 2022Prepared by: Appotronics Corporation Limited
In RMB, Unaudited
| Item | The first three quarters in 2022 (from January to September) | The first three quarters in 2021 (from January to September) |
| I. Total operating income | 1,875,806,319.07 | 1,660,621,770.06 |
| Including: Operating income | 1,875,806,319.07 | 1,660,621,770.06 |
| Interest income | ||
| Premiums earned | ||
| Service charge and commission income | ||
| II. Total operating costs | 1,818,361,563.44 | 1,522,416,553.31 |
| Including: Operating costs | 1,286,752,064.01 | 1,076,872,169.84 |
| Interest expenses | ||
| Service charge and commission expenses | ||
| Surrenders | ||
| Claims and policyholder benefits (net of amounts recoverable from reinsurers) | ||
| Net withdrawal of insurance contract reserves | ||
| Payment to insurance policyholder dividends | ||
| Expenses for reinsurance accepted | ||
| Taxes and levies | 8,705,987.65 | 5,617,717.41 |
| Selling expenses | 200,257,568.83 | 145,563,099.50 |
| Administrative expenses | 163,525,277.50 | 132,895,382.17 |
| R&D expenses | 174,246,551.26 | 155,853,227.70 |
| Financial expenses | -15,125,885.81 | 5,614,956.69 |
| Including: Interest expense | 18,844,776.16 | 18,318,882.49 |
| Interest income | 10,707,361.63 | 14,347,106.01 |
| Add: other income | 27,706,973.61 | 63,720,294.62 |
| Investment income (loss is indicated by “-”) | 13,360.80 | 14,662,288.46 |
| Including: Income from investments in associates and joint ventures | -9,299,223.08 | 8,747,066.17 |
| Gains from derecognition of financial assets at amortized assets |
Exchange gains (loss is indicatedby “-”)
| 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 “-”) | -2,009,000.00 | 38,250,576.00 |
| Losses of credit impairment (loss is indicated by “-”) | 3,912,023.56 | 5,758,981.72 |
| Impairment losses of assets (loss is indicated by “-”) | -27,117,996.54 | -14,281,326.09 |
| Gains from disposal of assets (loss is indicated by “-”) | 123,037.54 | 2,806,008.82 |
| III. Operating profit (loss is indicated by “-”) | 60,073,154.60 | 249,122,040.28 |
| Add: Non-operating income | 501,785.71 | 22,396,289.78 |
| Less: Non-operating expenses | 2,038,616.70 | 710,619.08 |
| IV. Total profits (total losses are indicated by “-”) | 58,536,323.61 | 270,807,710.98 |
| Less: Income tax expenses | 22,417,671.57 | 45,287,451.51 |
| V. Net profits (net losses are indicated by “-”) | 36,118,652.04 | 225,520,259.47 |
| (I) Categorized by the nature of continuity of operation | ||
| 1. Net profits from continuing operations (net losses are indicated by “-”) | 36,118,652.04 | 225,520,259.47 |
| 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 “-”) | 91,356,217.12 | 211,350,740.98 |
| 2. Profits or losses attributable to minority shareholders (net losses are indicated by “-”) | -55,237,565.08 | 14,169,518.49 |
| VI. Other comprehensive income, net of tax | 19,825,712.36 | -4,661,497.44 |
| (I) Other comprehensive income attributable to owners of the Parent Company, net of tax | 20,714,964.79 | -4,678,915.43 |
| 1. Other comprehensive income that cannot be reclassified subsequently to profit or loss | ||
(1) Changes from re-measurement of
defined benefit plans
| (1) Changes from re-measurement 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 | 20,714,964.79 | -4,678,915.43 |
| (1) Other comprehensive income that will be reclassified to profit or loss under the equity method | -17,884,048.14 | -2,312,419.51 |
| (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 | 38,599,012.93 | -2,366,495.92 |
| (7) Others | ||
| (II) Other comprehensive income that can be attributable to minority shareholders, net of tax | -889,252.43 | 17,417.99 |
| VII. Total comprehensive income | 55,944,364.40 | 220,858,762.03 |
| (I) Total comprehensive income that can be attributable to owners of the Parent Company | 112,071,181.91 | 206,671,825.55 |
| (II) Total comprehensive income that can be attributable to minority shareholders | -56,126,817.51 | 14,186,936.48 |
| VIII. Earnings per share: | ||
| (I) Basic earnings per share (RMB/share) | 0.20 | 0.47 |
| (II) Diluted earnings per share (RMB/share) | 0.20 | 0.46 |
In the event of business combinations involving enterprises under common control incurred in thecurrent period, the acquiree achieved a net profit of RMB 0 before the combination; the acquireeachieved a net profit of RMB 0 during the prior period.
Legal Representative: LI Yi Chief Accountant: WANG Yingxia Person in Charge of theAccounting Body: WANG Yingxia
Consolidated Cash Flow StatementFor the period from January to September 2022Prepared by: Appotronics Corporation Limited
In RMB, Unaudited
| Item | The first three quarters in 2022 (from January to September) | The first three quarters in 2021 (from January to September) |
| I. Cash Flows from Operating Activities: | ||
| Cash receipts from the sale of goods and the rendering of services | 2,164,236,179.89 | 2,048,876,161.32 |
| Net increase in customer deposits and interbank deposits | ||
| 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, service charges 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 | 5,838,929.38 | 3,976,915.95 |
| Other cash receipts relating to operating activities | 48,236,150.56 | 121,666,254.86 |
| Sub-total of cash inflows from operating activities | 2,218,311,259.83 | 2,174,519,332.13 |
| Cash payments for goods purchased and services received | 1,515,632,936.78 | 1,668,381,738.55 |
| Net increase in loans and advances to customers | ||
| Net increase in balance with the central bank and due from interbank | ||
| Cash payments for claims and policyholders’ benefits under direct insurance contracts | ||
Net increase in placements withbanks and other financial institutions
| Net increase in placements with banks and other financial institutions | ||
| Cash payments for interest, service charges and commissions | ||
| Cash payments for insurance policyholder dividends | ||
| Cash payments to and for employees | 323,124,265.49 | 252,707,702.15 |
| Payments of various types of taxes | 73,909,253.09 | 66,765,688.03 |
| Other cash payments relating to operating activities | 294,424,967.06 | 207,581,087.21 |
| Sub-total of cash outflows from operating activities | 2,207,091,422.42 | 2,195,436,215.94 |
| Net cash flow from operating activities | 11,219,837.41 | -20,916,883.81 |
| II. Cash Flows from Investing Activities: | ||
| Cash receipts from disposals and recovery of investments | 1,580,644,186.95 | 1,263,000,000.00 |
| Cash receipts from investment income | 9,312,583.88 | 5,915,222.29 |
| Net cash receipts from disposals of fixed assets, intangible assets and other long-term assets | 2,210.00 | 14,860.00 |
| Net cash receipts from disposals of subsidiaries and other business units | ||
| Other cash receipts relating to investing activities | 8,085,360.00 | |
| Sub-total of cash inflows from investing activities | 1,598,044,340.83 | 1,268,930,082.29 |
| Cash payments to acquire or construct fixed assets, intangible assets and other long-term assets | 109,638,548.45 | 71,898,602.19 |
| Cash payments to acquire investments | 1,330,000,000.00 | 1,768,048,387.32 |
| 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 | 1,439,638,548.45 | 1,839,946,989.51 |
| Net cash flow from investing activities | 158,405,792.38 | -571,016,907.22 |
III. Cash Flows from Financing Activities:
| III. Cash Flows from Financing Activities: | ||
| Cash receipts from capital contributions | 51,233,634.36 | 10,131,579.00 |
| Including: cash receipts from capital contributions from minority shareholders of subsidiaries | 10,131,579.00 | |
| Cash receipts from borrowings | 346,952,995.19 | 377,914,331.79 |
| Other cash receipts relating to financing activities | 215,000,000.00 | |
| Sub-total of cash inflows from financing activities | 398,186,629.55 | 603,045,910.79 |
| Cash repayments of borrowings | 152,403,832.00 | 264,982,699.04 |
| Cash payments for distribution of dividends or profits or settlement of interest expenses | 67,299,926.03 | 53,970,048.18 |
| Including: payments for distribution of dividends or profits to minority shareholders of subsidiaries | 18,400,000.00 | |
| Other cash payments relating to financing activities | 40,688,919.08 | 37,065,490.51 |
| Sub-total of cash outflows from financing activities | 260,392,677.11 | 356,018,237.73 |
| Net cash flow from financing activities | 137,793,952.44 | 247,027,673.06 |
| IV. Effect of Foreign Exchange Rate Changes on Cash and Cash Equivalents | 23,809,674.61 | -523,591.99 |
| V. Net Increase in Cash and Cash Equivalents | 331,229,256.84 | -345,429,709.96 |
| Add: Opening balance of cash and cash equivalents | 891,195,166.73 | 983,525,089.44 |
| VI. Closing Balance of Cash and Cash Equivalents | 1,222,424,423.57 | 638,095,379.48 |
Legal Representative: LI Yi Chief Accountant: WANG Yingxia Person in Charge of theAccounting Body: WANG YingxiaDescription of adjustments in opening balances of line items in financial statements of the yeardue to initial adoption of new accounting standards or interpretations of standards since 2022
□Applicable√ N/A
This Report is hereby announced.
Board of Directors of Appotronics Corporation Limited
October 29, 2022