Stock Code: 688007 Stock Short Name: Appotronics
Appotronics Corporation Limited
2023 Semiannual Report
August 2023
本报告为深圳光峰科技股份有限公司自愿披露的《2023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。
This is 2023 Semiannual Report (English version) voluntarily disclosed byAppotronics Corporation Limited. In the event of any discrepancy between the English andChinese versions of this report, the Chinese version shall prevail.
Important NoteI. The Board of Directors, the Board of Supervisors, directors, supervisors and senior officers of
the Company hereby warrant that the information contained in this Semiannual Report istrue, 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 operationof the Company in this Report. Refer to “Section III Discussion and Analysis of the Management -V. Risk factors” for the relevant risks. The investors should be aware of the risk of investment.
III. All directors of the Company attended the meeting of the Board of Directors.IV. This Semiannual Report has not been audited.V. LI Yi, Principal of the Company, WANG Yingxia, Person in Charge of the Accounting Body,and WANG Yingxia, Chief Accountant, hereby warrant that the financial report contained inthis Semiannual Report is true, accurate and complete.VI. Profit distribution proposal or proposal for capitalization of capital reserve approved by theBoard 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, developmentstrategies or other matters of the Company do not constitute any substantive covenant made by theCompany to the investors. Investors and relevant personnel should sufficiently know about the risksin this aspect, and understand the differences among plans, predictions, and promises. The investorsshould be aware of the risk of investment.IX. Is there any non-operating occupation of funds by the controlling shareholder or otheraffiliates?NoX. Is there any external guarantee provided in contravention of the stipulated decision-makingprocedure?No
XI. Are the majority of the directors unable to guarantee the truthfulness, accuracy andcompleteness of the Semiannual Report disclosed by the Company?NoXII. Others
□ Applicable√ N/A
Table of Contents
Section I Definitions ...... 5
Section II Company Profile and Financial Highlights ...... 6
Section III Discussion and Analysis of the Management ...... 10
Section IV Corporate Governance ...... 32
Section V Environment and Social Responsibilities ...... 35
Section VI Significant Matters ...... 38
Section VII Changes in Shares and Shareholders ...... 62
Section VIII Preferred Shares ...... 68
Section IX Bonds ...... 69
Section X Financial Report ...... 70
List of DocumentsAvailable for
InspectionFinancial Statements with seals and signatures of the Principal of the Company,Person in charge of the Accounting Body, and Chief Accountant
All original documents and announcements of the Company publicly disclosedduring the reporting period
Section I DefinitionsFor 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 predecessor of the Company |
| CINEAPPO | means | CINEAPPO Laser Cinema Technology (Beijing) Co., Ltd. |
| Formovie, Chongqing Formovie | means | Formovie (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 Consulting Partnership (LP) |
| Appotronics Chengye | means | Shenzhen Appotronics Chengye Consulting Partnership (LP) |
| Jinleijing | means | Shenzhen Jinleijing Investment Limited Partnership (LP) |
| Blackpine | means | Blackpine Investment Corp. Ltd. |
| CINIONIC | means | Cinionic Limited (previously known as Barco Cineappo Limited) |
| WeCast | means | WeCast Technology Corp. |
| GDC BVI | means | GDC Technology Limited (British Virgin Islands) |
| GDC Cayman | means | GDC Technology Limited (Cayman Islands) |
| SSE | means | Shanghai Stock Exchange |
| Anker | means | Anker Innovations Technology Co., Ltd. |
| Dangbei | means | Hangzhou Dangbei Network Technology Co., Ltd. |
| ViewSonic | means | ViewSonic China Limited |
| Delta Electronics or Delta | means | Delta Electronics, Inc. |
| CES | means | International Consumer Electronics Show |
| AR | means | Augmented Reality |
| HUD | means | Head-Up Display |
| DCI | means | Digital Cinema Initiatives of the United States |
| DLP | means | Digital Light Processing |
| LCOS | means | Liquid Crystal on Silicon, a new reflective display technology that organically combines LCD and CMOS integrated circuits |
| LCD | means | Liquid Crystal Display |
| RGB | means | Optical three primary colors, R: red, G: green, B: blue |
| LED | means | Light Emitting Node, a common light emitting device |
| OSD | means | On-Screen Display, an adjustment method by using a menu displayed on the screen |
| CVIA | means | China Video Industry Association |
| 4K | means | A screen resolution of digital products, representing the screen resolution of 4096×2160, which is an ultra-high-definition resolution |
| nit | means | The unit of brightness |
| IATF | means | International Automotive Task Force |
| ADB | means | Adaptive Driving Beam |
| AI | means | Artificial Intelligence |
| 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 | LI Yi |
| Registered address | 20-22/F, Hi-tech Zone Union Tower, No. 63 Xuefu Road, Yuehai Street, Nanshan District, Shenzhen |
| Historical changes of the Company’s registered address | 1. October 24, 2006, Room 10, 14/F, Fangda Building, Keji South 12th Road, South Area, High-tech Industrial Zone, Nanshan District, Shenzhen 2. September 6, 2007, Room 03, 17/F, Overseas Chinese High-tech Venture Building, South Area, High-tech Industrial Zone, Nanshan District, Shenzhen 3. June 7, 2011, Area A, 1/F, Building 13, Xili Wenguang Industrial Zone, Nanshan District, Shenzhen 4. October 24, 2012, 401 Shenzhen IC Design and Application Industrial Park, South to Chaguang Road, Xili Township, Nanshan District, Shenzhen 5. December 14, 2017, 21-22/F, Hi-tech Zone Union Tower, No. 63 Xuefu Road, Yuehai Street, Nanshan District, Shenzhen 6. 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 |
II. Contact person and contact information
| Board Secretary (Domestic representative for information disclosure) | |
| Name | CHEN Yasha |
| Address | 20-22/F, Hi-tech Zone Union Tower, No. 63 Xuefu Road, Yuehai Street, Nanshan District, Shenzhen |
| Telephone | 0755-32950536 |
| Facsimile | 0755-86186299 |
| ir@appotronics.cn |
III. Description of changes to the media for information disclosure and place for keepingsemiannual reports
| Designated newspaper for information disclosure | China Securities Journal (https://www.cs.com.cn) Shanghai Securities News (https://www.cnstock.com) Securities Times (http://www.stcn.com) Securities Daily (http://www.zqrb.cn) |
| Websites for publishing the semiannual reports | Shanghai Stock Exchange website (http://www.sse.com.cn) |
| Place for keeping the semiannual | Office of the Board of Directors |
| reports | |
| 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 | ||||
| Stock class | Stock exchange and board | Stock short name | Stock code | Former stock short name |
| A-shares | Shanghai Stock Exchange, STAR Market | Appotronics | 688007 | N/A |
(II) Depository receipts of the Company
□ Applicable√ N/A
V. Other related information
□ Applicable√ N/A
VI. Main accounting data and financial indicators of the Company(I) Main accounting data
Unit: Yuan Currency: RMB
| Main accounting data | During the reporting period (Jan. - Jun.) | Prior period | Change over the prior period (%) |
| Operating income | 1,073,249,037.75 | 1,269,322,202.11 | -15.45 |
| Net profit attributable to shareholders of the listed company | 74,914,640.95 | 45,966,481.10 | 62.98 |
| Net profit attributable to shareholders of the listed company after deduction of non-recurring profit or loss | 34,228,839.62 | 22,005,386.92 | 55.55 |
| Net cash flow from operating activities | 114,738,832.13 | -78,553,359.67 | N/A |
| 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 | 2,725,371,454.07 | 2,647,663,487.59 | 2.93 |
| Total assets | 4,340,274,686.92 | 4,333,350,260.15 | 0.16 |
(II) Financial highlights
| Financial highlights | During the reporting period (Jan. - Jun.) | Prior period | Change over the prior period (%) |
| Basic earnings per share (RMB/share) | 0.16 | 0.10 | 60.00 |
| Diluted earnings per share (RMB/share) | 0.16 | 0.10 | 60.00 |
| Basic earnings per share after deduction of non-recurring profit or loss (RMB/share) | 0.07 | 0.05 | 40.00 |
| Weighted average return on net assets (%) | 2.78 | 1.86 | +0.92 percentage |
| points | |||
| Weighted average return on net assets after deduction of non-recurring profit or loss (%) | 1.27 | 0.89 | +0.38 percentage points |
| Proportion of R&D investments to operating income (%) | 11.78 | 9.06 | +2.72 percentage points |
Explanation about the main accounting data and financial highlights
√ Applicable□ N/A
1. During the reporting period, the net profit attributable to shareholders of the listed company andthe net profit attributable to shareholders of the listed company after deduction of non-recurring profit orloss increased by 62.98% and 55.55% year on year, respectively; the basic earnings per share, dilutedearnings per share, and basic earnings per share after deduction of non-recurring profit or loss increasedby 60.00%, 60.00%, and 40.00%, respectively year on year, primarily due to the following:
(1) During the reporting period, the incomes from the business of cinema projection services andthe business of light sources and light generators increased by 32.75% and 18.43% year on year,respectively, while the proportion of the income from the To C business decreased, which changed theincome structure and increased the overall gross profit margin by 7.39 percentage points;
(2) During the reporting period, the non-recurring profit or loss increased by RMB 16.7247 millionyear on year, an year-on-year increase by 69.80%, which caused a positive impact on the net profitattributable to shareholders of the listed company;
2. During the reporting period, the net cash flow from operating activities increased by RMB
193.2922 million year on year, which was mainly due to the optimized supply chain management,decreased payment for procurement, and net recovery of security deposits during the reporting period.VII. Differences in accounting data under Chinese accounting standards and overseas accounting
standards
□ Applicable√ N/A
VIII. Items and amounts of non-recurring profit or loss
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item of non-recurring profit or loss | Amount | Note (if applicable) |
| Gain or loss on disposal of non-current assets | -216,132.87 | |
| 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) | 33,198,815.57 | VII. 84 of Section X |
| Profit or loss on entrusted investments or assets management | 5,198,708.55 | VII. 68 of Section X |
| 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 | 14,923,989.20 | |
| 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, | 67,000.00 |
| derivative financial liabilities and other debt investments, other than those used in the effective hedging activities relating to normal operating business | ||
| Reversal of impairment loss on accounts receivable and contract assets tested for impairment individually | 69,851.05 | |
| Other non-operating income and expenses | 14,480.93 | |
| Other gains or losses meeting the definition of non-recurring profit or loss | 442,061.07 | |
| Less: Effect of income taxes | 3,469,096.89 | |
| Effects attributable to minority interests (net of tax) | 9,543,875.27 | |
| Total | 40,685,801.33 |
It is required to specify the reason for defining items as non-recurring profit or loss items according toInformation Disclosure and Presentation Rules for Companies Making Public Offering of Securities No.1 - Non-recurring Profit or Loss, and reasons for defining non-recurring profit or loss items illustrated inInformation Disclosure and Presentation Rules for Companies Making Public Offering of Securities No.1 - Non-recurring Profit or Loss as recurring profit or loss items.
□ Applicable√ N/A
IX. Explanation about performance indicators not under the Accounting Standards for BusinessEnterprises
□ Applicable√ N/A
Section III Discussion and Analysis of the Management
I. Industry and main business during the reporting period
1. Main business
The Company, as a global leading enterprise in the field of laser display technology, stays marketand customer demand-oriented, and continues to engage in the research, development, production andsales of laser display core devices and complete equipment based on the proprietary semiconductor laserlight source technologies and architecture. We apply the semiconductor laser light source technology tohousehold display, cinema, large venue, business education, and other conventional scenarios, andsuccessfully expands to new fields such as automotive display, aviation display, AR, robots, etc., toprovide customers with a full range of solutions.
2. Main products and services
Our products may be mainly classified into core laser display devices and complete laser displayequipment. The core devices can be further classified into laser light source (cinema light source andlarge venue light source), laser TV and smart mini projection light generator, automotive optical coredevices (automotive display, AR-HUD, laser headlights) and systems; and complete laser displayequipment can be classified into laser smart mini projector, laser TV, laser cinema projector, large venuelaser projector, laser education projector and others. The services the Company performs include lasercinema projection services, smart large-screen ecology system Feng OS and corresponding systemsolutions.
3. Industry in which the Company operates
3.1 Development stage, basic characteristics and main technical barriers of the industry
1 Development stage of the industry
As an emerging industry, laser display is at a stage of rapid growth, and its growth drivers mainlycome from: 1. technological progress has spawned emerging application fields, and semiconductor laserlight source technology has been applied to the automotive optics and other fields, and the market hasgreat potential for explosion; 2. the laser display industry in which the Company operates is one of thestrategic emerging industries receiving the major support from the state for accelerated development.With the support of national and industry policies, more and more domestic enterprises and scientificresearch institutions enter the upstream and downstream fields of the laser display industry chain,strengthen the industrial chain, actively develop and iterate technology, thus further increasing thelocalization rate of core components of products.
2 Basic characteristics of the industry
In 2007, the ALPD
?
semiconductor laser light source technology invented by our R&D teamcreated a wholly new semiconductor laser light source, which made a breakthrough in the application ofcore devices and imaging solutions of laser display, hence becoming the mainstream technical route forthe laser display industry and widely used in vehicle, household, cinema, large venue, commercial, andeducation fields.
In terms of technology, the ALPD
?semiconductor laser light source technology is compatible withvarious chip and technology routes, and is suitable for the DLP, LCOS, and LCD technologies. In termsof market, in addition to traditional applications such as cinema, large venue, and business education,emerging industries such as intelligent cockpit, intelligent networking, AR, and AI are booming, andgradually become a new application development focus of the laser display industry, and the overallscale of the industry continues to expand, which is expected to help to broaden the application scenariosof the ALPD
?semiconductor laser light source technology.3 Main technical barriers
(1) Core technologies and core devices
The ALPD
?technology independently developed by the Company at its early stage created awholly new semiconductor laser light source - the ultra-high-brightness semiconductor laser light sourcebased on rare earth light-emitting materials. The innovative combination of the semiconductor solid laserwith the rare earth phosphor material is the key component of our ALPD
?semiconductor laser lightsource technology. The blue laser of the gallium nitride (GaN) semiconductor material system is used toexcite phosphor on the phosphor wheel, hence obtaining the green light and red light in a cost-effectivemanner.On one hand, since the phosphor material contains numerous doping ions that emit light on theirown, different doping ions emit light at slightly different time, and the lights are emitted towards variousdirections of the whole space, there is no time or spatial interference, hence eliminating speckle from theorigin of the technology. On the other hand, thanks to the phosphor wheel as a core device developedand manufactured by the Company, and the rare earth phosphor materials as an advantageous industry ofChina, we can effectively control the costs of the devices.
As a result, our ALPD
?semiconductor laser light source technology solves the problem of speckleand problem of costs of conventional RGB trichromatic laser display, hence achieving industrializationrapidly and becoming the mainstream technology architecture for laser display at present.Our latest independently developed ALPD
?
5.0 super panchromatic laser technology, which is a
breakthrough on the basis of our early technology architecture, creatively integrates six light sources(three colors of laser light sources + three colors of LED light sources) by employing a unique lightcombination technology. This solves the technical bottleneck of pure three-color laser light sources orpure three-color LED light sources, effectively overcomes the problems of speckle and colorful edgescaused by pure laser display and the problems of limited brightness for pure three-color LED, henceachieving the advantages of higher brightness, no speckle, and more comfortable colors.
(2) Laser products
Laser display products involve several fields, including optics, electronics, materials, physics,mechanical designing, precision manufacturing, etc. Specifically, in the designing of mechanicalstructures, simulation and designing of heat and stress, designing of optical lens and other components,electronic software and hardware (especially for image processing), analysis of ultra-high-definitionsignals, precision manufacturing, etc., the Company has profound technologies and manufacturing
processes barriers in all the foregoing fields.It should be noted that at present, the ALPD
?semiconductor laser light source technology is theonly laser display and lighting technology meeting automotive standards thanks to its obvious technicaladvantages in the automotive optical field.
3.2 Analysis of the position of the Company in the industry and changes thereinAs the display technology of a new generation, thanks to the advantages of high brightness, smallsize, long service life, wide color gamut, environment friendliness, the ALPD
?
semiconductor laser lightsource technology has a broad space for market application. Besides the conventional display field, ithas expanded to the automotive optics, AR, aviation, and many other innovative fields.As a leader in the laser display technology, Appotronics has created a strong patent moat around theunderlying technical architecture of the ALPD
?
semiconductor laser light source technology, which ishard to be bypassed by projection brands in the industry entering the route of laser phosphortechnologies. We are committed in the breakthroughs, innovations, expansion of application scenarios,and industrialization of semiconductor laser light source technology, and created technology reservesand patent portfolios covering the whole technology chain of laser display technology from key systemarchitecture, core devices to key algorithm. Thanks to the core competitive advantages consisting of“patent moat + technical barriers”, the Company holds a key position at the upstream core device stage.
II. Core technologies and progress in R&D of technologies
1. Core technologies and their advancement, and changes during the reporting period
We are committed in the breakthroughs, innovations, expansion of application scenarios, andindustrialization of semiconductor laser light source technology, and created technology reserves andpatent portfolios covering the whole technology chain of laser display technology from key systemarchitecture, core devices to key algorithm. Meanwhile, the Company has devoted many R&D resourcesin the miniaturization of laser display system, light source architecture, complete equipment structure,machine perception and the preparation and processing of thin film materials to maintaining the leadingposition in the industry. As a Leader Level Member of the Laser Illuminated Projector Association(LIPA), we have participated in the preparation of the international laser display standard.
With the support of the data, algorithm and design solutions accumulated by us over the years, wecan rapidly come up with products and solutions meeting the requirements of different applicationscenarios, such as cinema projection, home entertainment, outdoor exhibition, ultra large-sized display,and immersive display. Meanwhile, we have continuously achieved breakthrough in automobile-gradelaser light generators, AR optical modules, etc., and released products to the market.National scientific and technology awards
□ Applicable√ N/A
Qualification of national “little giant” enterprises in specialized, refine, differential, and innovativeaspects, and “leading enterprise” in the manufacturing industry
□ Applicable√ N/A
2. R&D achievements during the reporting period
During the reporting period, the Company made the following achievements in technology andproduct innovation:
(1) Core technologies and core devices
A.Core technologies
In November 2022, we officially released the ALPD
?
5.0 super panchromatic laser technology, and
moved further towards productization in 2023. Thanks to the innovation in the key technical architecture,this technology has the advantages of higher brightness, no speckle, and more comfortable colors.
Relying on the unique light combination technology and profound patent barriers, the ALPD
?
5.0
super panchromatic laser technology integrates three colors of laser light sources with three colors ofLED light sources to achieve the unprecedented integration of six light sources. This technologyperfectly overcomes the technical bottleneck of pure three-color laser light sources or pure three-colorLED light sources, effectively solves the problems of speckle and colorful edges, hence achieving theadvantages of higher brightness, no speckle, and more comfortable colors to produce extreme visualexperience for users.
On the basis of the innovative light source architecture, the ALPD
?
5.0 super panchromatic laser
technology also has an outstanding dynamic color gamut modulation, so that the system employs analgorithm to perform pre-analysis to identify the color gamut standard required for playing a video, andfeeds back such standard to the light source for modulation; this accurately restores the color gamut thatshould be achieved for a corresponding image to present the truest colors and brightness.
B.Core devices
In the field of automotive core devices, we released the world’s first automobile-grade colorfullaser headlight at the 20
thShanghai International Automobile Industry Exhibition. Meanwhile, we alsopresented various immersive in-vehicle digital interaction solutions, such as window display, in-vehicletransparent display, in-vehicle entertainment large screen, smart surface, etc.
In the field of automotive display and lighting, the ALPD
?technology used in our colorful laserheadlights is the only laser technology that has passed the automobile-grade certification by now - itintegrates the three functions of high beam, low beam, and projection display, and even implementscolorful display for the first time to present ultra-high-definition and finer road display for more accurateADB control, hence meeting the dual requirements of “lighting + display” for future smart headlights.
There are obvious advantages for applying laser light sources to smart headlights. Firstly, the laseris brighter. With the same DLP or LCoS chip, the luminous flux of laser is 4 times of LED. Secondly,laser devices are smaller. For example, our laser headlight module can implement the light aperture of10mm x 10mm in the headlight, hence meeting the light distribution requirements for both the highbeam and low beam.
Moreover, the ALPD
?colorful laser headlight is a programmable component; therefore, we candevelop various applications specific for driving, entertainment, and human-vehicle interaction forvehicle manufacturers, so as to create new experience of intelligent vehicles for consumers.
In the field of household core devices, based on the ALPD
?
semiconductor laser light sourcetechnology, we are continuously developing light generator products for laser mini projectors to meetdiversified requirements of customers. During the reporting period, we supplied light generators forDangbei’s new laser projector D5X Pro. The light generator adopts the ALPD
?
semiconductor laserlight source technology to present high-brightness, clear, and speckle-free images, hence creating moreeye-friendly use experience for consumers. Thanks to the high performance of laser light generators, thislight generator allows appearance designed with a smaller and more compact size of the overall device.C.AlgorithmsDuring the reporting period, based on the study achievements of 3D visual algorithms, wedeveloped the 3D and real-time projection and rendering system based on multiple points of sight, whichcan accurately sense the geographic information and semantic information of the projection bearingsurface, render 3D content in real time, and achieve high-precision overlapping projection display. Beingsuitable for rapid mass production and measurement against specifications, and being equipped withfunctional modules for device parameter estimation, projection assistance (i.e. automatic focusing,automatic omnidirectional correction, automatic obstacle avoidance, automatic screen-in, non-inductivefocusing, non-inductive omnidirectional correction etc.), high-quality 3D model reconstruction for theprojection bearing surface, AI object gesture estimation, real-time overlapping projection rendering,monocular/binocular 3D rendering, AI content generation etc., this system can achieve high-quality 3Dsensing and real-time rendering in projection augmented reality (projection AR) applications, makingprojection more interesting and novel. This algorithm system may be applied to large venue, consumer,and other fields to provide customers with solutions of greater functions, and provide consumers withmore genuine and immersive experience.
(2) Branded complete equipment
A. Household productsIn the field of household smart mini projectors, Formovie released multiple new projectors,including X5 laser projector, Xiaoming Q3 and Q3 MAX smart projectors, etc. In March 2023,Formovie officially released the X5 laser projector, which was the first projection product directlyadopting the CVIA brightness standard in the industry. Being equipped with the ALPD
?semiconductorlaser light source technology, the X5 laser projector can achieve speckle-free and eye-friendly 4Kresolution and the brightness up to 4,500 CVIA lumens, which is brighter than TVs and achievedprojection for a 1,800-inch giant screen.In the field of household laser TVs, Formovie released the laser TV C3 in May 2023. Beingequipped with the ALPD
?
semiconductor laser light source technology that is same as high-end cinemalaser halls, this product can display outstanding, clear, and speckle-free images while improving thebrightness performance to 400nit.B. Dedicated display equipmentIn March 2023, we released the T Pro, G Pro, D, and other series of large venue projectors at theSummit of Dedicated Display Core Partners, and achieved product upgrade in terms of brightness, image
quality, and lens adaptation. The T Pro series high-brightness large venue projector is a laser large venueprojector with stable performance and brightness up to 30,000lm; it is equipped with the ALPD
? dual-color laser light source technology and the 3DLP imaging technology to produce outstanding colors. Thecore light source has the service life of up to 20,000 hours and supports dual-channel signal backup.Being able to restore colors accurately with outstanding stability, this product is suitable for large venues,outdoor lighting, stage performance, and lease scenarios. In terms of software, we released the “newAppotronics OSD system” and “Appotronics dedicated console system” to improve the control ofprojectors during installation, adjustment, and management, helping users to efficiently complete projectmanagement, operation, and maintenance.List of intellectual property rights acquired during the reporting period
| Increase | Total | |||
| Applications (pcs) | Granted (pcs) | Applications (pcs) | Granted (pcs) | |
| Patent for invention | 58 | 41 | 1,669 | 1,007 |
| Patent for utility model | 94 | 88 | 798 | 682 |
| Patent for design | 12 | 10 | 232 | 212 |
| Software copyright | 0 | 6 | 133 | 133 |
| Others | 32 | 45 | 1,150 | 1,025 |
| Total | 196 | 190 | 3,982 | 3,059 |
Note: 1. The “others” showed in the above table refers to the Company’s trademarks; 2. During thereporting period, the Company filed a total of 15 valid PCT international patent applications.
3. R&D investments
Unit: Yuan
| Current period | Prior period | % Change | |
| R&D investments expensed | 126,406,142.12 | 114,959,786.37 | 9.96 |
| R&D investments capitalized | - | - | - |
| Total R&D investments | 126,406,142.12 | 114,959,786.37 | 9.96 |
| Proportion of R&D investments to operating income (%) | 11.78 | 9.06 | +2.72 percentage points |
| Proportion of R&D investments capitalized (%) | - | - | - |
Reason for the material change in the total R&D investments compared with last year
□ Applicable√ N/A
Reasons for the great change in the proportion of R&D investments capitalized and explanationabout the rationality thereof
□ Applicable√ N/A
4. R&D projects
√ Applicable□ N/A
Unit: 0’000 Yuan
| No. | Item | Estimated total investment | Investment in the current period | Aggregate investment | Progress or interim results | Goals | Technological level | Application scenario |
| 1 | Innovative projection and optical application | 17,087.00 | 3,435.95 | 7,336.94 | Laboratory test | Provide customized automotive optical products for vehicle manufacturer brands, and develop AR optical modules, etc. | Leading in the industry. | Automotive, AR, and other innovative scenarios. |
| 2 | Core device light source and light generator project | 10,062.00 | 1,368.37 | 6,873.03 | Mass production | Continuously develop the new generation ALPD? semiconductor laser light source technology to achieve light sources and light generators with wider color gamut, higher brightness, and higher energy efficiency. | Leading in the industry. | Continuous development of core technologies and core devices for use in various fields. |
| 3 | Laser TV | 10,204.00 | 1,504.13 | 10,006.10 | Mass production | Develop laser TVs with advantageous performance such as high brightness and eye-friendliness. | Leading in the industry. | Household laser TVs. |
| 4 | Laser cinema projector | 11,464.00 | 1,489.51 | 9,596.82 | Mass production |
Develop DCI-compliant and highlycost-effective household cinemaprojectors; and DCI-compliant LEDcinema screen for cinema projectionhalls.
| Leading in the industry. | Intended for the high-end household market and projection halls at cinemas. | |||||||
| 5 | Smart mini projector | 17,452.00 | 3,451.71 | 12,575.21 | Mass production | The smart mini projector products with high performance and high cost effectiveness will be researched and developed, and different series of products will be laid out to make breakthroughs in technology innovation, product form innovation and quality upgrade and meet different | Leading in the industry. | Intended for home mini projector market. |
| user needs. | ||||||||
| 6 | Dedicated display products (large venue + business education) | 8,004.00 | 1,390.94 | 5,821.26 | Mass production | Multiple laser large venue projectors with high brightness, education projectors, and business projectors with cost effectiveness will be researched and developed for meeting different user needs. | Leading in the industry. | Large venue projector, business education projector and other fields. |
| Total | - | 74,273.00 | 12,640.61 | 52,209.36 | - | - | - | - |
5. R&D staff
Unit: 0’000 Yuan Currency: RMB
| Basic information | ||
| Current period | Prior period | |
| Number of R&D staff (persons) | 465 | 471 |
| Proportion of R&D staff to total employees of the Company (%) | 31.33 | 30.45 |
| Total compensation of R&D staff | 8,664.32 | 7,641.61 |
| Average compensation of R&D staff | 18.63 | 16.22 |
| Education | ||
| Academic background | Number | Percentage (%) |
| Master and above | 132 | 28.39 |
| Bachelor and below | 333 | 71.61 |
| Total | 465 | 100 |
| Age structure | ||
| Age | Number | Percentage (%) |
| Below 30 (exclusive) | 162 | 34.84 |
| 30-40 (including 30, excluding 40) | 198 | 42.58 |
| 40 and above | 105 | 22.58 |
| Total | 465 | 100 |
Note: The average compensation of R&D staff shown in the table above was the average compensationfor the first half of 2023 and the first half of 2022, respectively.
6. Other information
□ Applicable√ N/A
III. Analysis of core competitiveness during the reporting period(I) Analysis of core competitiveness
√ Applicable□ N/A
1.High-quality R&D team to accelerate product R&D and iteration
The Company stays innovation-driven, continues to increase R&D investment in forward-lookingtechnology arrangement and product technology development. As a high-tech enterprise, the Companywill continue to improve R&D capabilities as the main theme of the Company’s core competitiveness,and continue to improve the R&D system. With Mr. LI Yi, Chairman and General Manager, as the corepersonnel of R&D, the Company has established a leading R&D team in optical modules, mechanicaldesigning, thermal simulation, software and hardware control and preparation of rare earth phosphormaterials, developed and innovated the laser display technology for many years, thus havingaccumulated profound R&D technical strength and got a deep understanding and judgment of theindustry’s cutting-edge technology and development trend.The Company has set up a research institute and a research and development center to jointlycoordinate technology planning, development and accumulation. The institute carries out forward-looking product technology research and product verification, develops it into a new product under anew application scenario, and ensures that R&D resources are advanced; the R&D center, combining theR&D and scientific research achievements of the research institute, coordinates the management of newproduct development until mass production and launch. With leading R&D technical resources, the
Company significantly improves the efficiency of R&D planning through the cooperation of R&Dcenter and research institute, and applies the latest R&D achievements to projection display products.
2.Relying on the technical advantages of core devices, all-round forward-looking strategicarrangement for application scenarios is madeBased on the technical advantages of core devices and market development trends, the Companyhas been committed to the breakthrough and innovation of semiconductor laser light source technology,the development of application scenarios and the industrialization promotion, and thus forms thetechnical reserve and patent arrangement of the whole technology chain of laser display from key systemarchitecture, core devices to key algorithms, and constantly optimizes and improves the strategicarrangement of automotive optics, aviation display, AR and other application fields. We promote theinnovative application of core devices in new fields and new tracks, and continue to broaden the long-term growth space of core device value.
3.Build a patent moat around the underlying technical architecture
The Company takes the underlying technical architecture patent of the original semiconductor laserlight source technology as the center, and builds a solid and interconnected intellectual property patentsystem, and it is difficult for competitors to fully imitate or directly bypass the underlying patentarrangement of the Company’s laser phosphor technology route. The Company actively responds to thenational “intellectual property power strategy” and increases the proportion of high-value patents. As ofJune 30, 2023, the Company had a total of 2,714 patents filed and granted throughout the world,including 1,901 patents granted throughout the world, of which 1,007 ones were patents for invention.
In terms of technology leadership, the Company’s original semiconductor laser light sourcetechnology has become the mainstream technology in the current laser display field, and as theunderlying key architecture technology, it has been used more than 670 times by leading companies inthe same industry, such as Philips of the Netherlands, Osram of Germany and Epson of Japan.(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
In the first half of 2023, we persisted in the core strategy of “core technologies + core devices +application scenarios” in response to challenges in the operating environment. Meanwhile, we increasedR&D efforts for core technologies and growth businesses to build up energy for sustainable developmentof the Company.
During the reporting period, we made continuous efforts to expand the business of automotive coredevices; the stable recovery of the business of cinema core devices and the business of dedicated displayimproved the overall gross profit margin of the Company; the business of household core devices and ToC products experienced revenue reduction due to prudent consumption of the public and change inconsumption habits. During the first half of 2023, our operating income was RMB 1.073 billion,decreased by 15.45%; the net profit attributable to the parent company reached RMB 74.9146 million,
increased by 62.98% year on year; and the overall gross profit margin of the Company was 37.70%,increased by 7.39 percentage points year on year.
1. Core device business
1.1 Orderly carried out the business of automotive core devices to build a solid and all-roundfoundation for development? Obtained fixed orders from multiple vehicle manufacturers to continuously increase theALPD
?
installationsDuring the reporting period, after making active efforts to communicate with well-knownautomobile manufacturers and the downstream and upstream players in the supply chain, and to promotefavorable cooperation, we received the Development Nomination Letters from BYD, Beijing ElectricVehicle, and other outstanding vehicle manufacturers, which led to the stable development of thebusiness of automotive core devices. The increase in fixed orders and the mass production and deliveryof products under corresponding fixed orders will lead to positive impact on the operating performanceof the Company during the project life cycle of the business of automotive core devices.At the end of the period, besides the 5 nominations we have obtained, we also communicated withmultiple vehicle manufacturers on laser headlights, AR-HUD, and other products to build the foundationfor projects of their new vehicle models.? Actively participated in major industry exhibitions and released new products and newconcepts for automotive opticsIn January 2023, at the International Consumer Electronics Show (CES 2023), the automobilebrand BMW released Dee - the world’s first concept car equipped with the multi-window immersivedisplay technology at four windows, which technology was supplied by Appotronics. An ultra small-sized and high-brightness ALPD
?
DLP light generator is used to achieve the functions of projectioninside and display outside, and projection inside and display inside at the side windows, so that thedriver and passengers can interact with the display image either inside or outside of the car.In addition, at the 20
thShanghai International Automobile Industry Exhibition held in April 2023,we made our debut with an exhibition car equipped with the automotive immersive laser display andlighting technical scenario, and released the world’s first automobile-grade colorful laser headlight, andthe immersive in-vehicle digital interaction solution containing window display, in-vehicle transparentdisplay, in-vehicle entertainment large screen, smart surface. This presented our new concept for variousautomotive optical scenarios in the future, hence providing drivers and passengers with experience thatis more intelligent and interesting.? Built a comprehensive supply chain system for the automotive optical business to get readyfor delivery of products for dedicated projectsWe constantly build and improve the supply chain system in consideration of IATF standards,automotive industry standards, and the requirements of customers in cooperation at present, includingbut not limited to building different production lines for automotive products for mass productiondelivery to vehicle manufacturer customers; constantly optimizing the plan and delivery management,
manufacturing management, engineering management, quality management, and other functions inaccordance with the whole-process designing for automotive projects; and building a set of strictprocedure management system containing quality control, procurement management, engineeringmanagement, and production management specific for the automotive business, so as to ensure thequality of automotive products both on complete vehicles and on the end market.? Strengthened the patent layout in intellectual property rights to enhance the uniqueadvantages in automotive opticsIn the field of automotive display and lighting, our ALPD
?semiconductor laser light sourcetechnology is the only laser technology that has passed the automobile-grade certification by now. Whilecontinuously enhancing R&D efforts for automotive optics, we constantly improve the patent layout intechnologies for automotive core devices to enhance our head start advantages and unique advantages inthe field of automotive optics. During the reporting period, we have 62 new patents granted and filed fortechnologies of automotive core devices, an increase of 113.79% year on year; as of June 30, 2023, wehave a total of 176 patents granted and filed, an increase of 70.87% year on year.In consideration of the growing demands for intelligentization and scientific technologies invehicles, we will actively expand the business of automotive core devices in three major directions,namely, automotive display, laser headlight, and AR-HUD, actively explore more novel and comfortablesmart vehicle experience with outstanding domestic and overseas automakers and upstream anddownstream partners in the supply chain, and make use of our resources to develop high-qualitydedicated products, hence driving the rapid development of the growth business.
1.2 Achieved outstanding performance in the business of cinema core devices and significantresults in overseas market expansionWith respect to the domestic market, the cinema market was gradually recovering - the number offilms shown increased by 50% year on year in the first half of 2023. According to the statistics of ChinaFilm Administration, as of June 30, 2023, the total box office in China for the first half of 2023 wasRMB 26.271 billion, up by 52.91% year on year. Driven by multiple favorable factors, such as sufficientsupply of films and increased showings, we achieved the operating income of RMB 180 million fromthe business of cinema projection services, up by 32.75% year on year. Thanks to the accumulation andleading advantages built by the Company for multiple years, we achieved over 800 installations of newlyleased light sources during the reporting period. As of June 30, 2023, over 28,600 sets of ALPD
?laserlight source projection solutions have been installed throughout China. Besides the cinema projectionservices, the subsidiary CINEAPPO continuously improved its product portfolio in recent years, andbuilt various innovative products and services in consideration of the different requirements of cinemacustomers.
With respect to the overseas market, the box office in the North America was USD 4.4 billion in thefirst half of 2023, up by nearly 20% year on year. Given the continuous increase in the film watchingdemands, we will take active measures to expand the overseas market. Our light source business hasexpanded to North America, Europe, the Middle East, Southeast Asia, and other regions.
1.3 Accelerated the pace for productization of ALPD
?
5.0 in the transitional period of the smart
projection marketEntering the year 2023, the public became more prudent in consumption, which affected thedemands of consumer electronics to a certain extent. Meanwhile, the market entered a transitional perioddue to changes in the arrangement of smart projection brands. In the first half of 2023, our BusinessDivision of Household Core Devices worked actively to assist Dangbei, ViewSonic, Anker, and othercustomers in releasing new products.We officially released the ALPD
?
5.0 super panchromatic laser technology in November 2022.
Thanks to the innovation in the key technical architecture, this technology has the advantages of higherbrightness, no speckle, and more comfortable colors. In this year, we will take the lead in releasingALPD
?
5.0 light generator products in the household field, and the Business Division of HouseholdCore Devices will assist customers in releasing new products to allow consumers to experienceprojection products that are more outstanding.
2. Brand business
2.1 Favorable recovery of the dedicated display business to build an ecology of core partnersThe reporting period witnessed the gradual recovery of the cultural and tourism lighting, nighteconomy, and cultural and art market in China. We helped customers in multiple benchmark projects,including the light show on the world’s highest cooling tower - “Lighting Show Program of the IndirectCooling Tower of Mengtai Dongsheng Phase II”. Meanwhile, thanks to the recovery of offline educationactivities, our education business performed outstandingly. In the first half of 2023, we achieved theoperating income of RMB 202 million from the dedicated display business, which achieved favorablerecovery with the increase by 13.79% year on year.
Figure 1: Lighting Show Program of the Indirect Cooling Tower of Mengtai Dongsheng Phase II
To deepen the strategic cooperation with core customers and partners, we held a summit of corepartners under the theme of “Innovate Together to Create a Bright Future” in March 2023, at which weexplored new opportunities and technical trends with core partners, and released multiple new productsand software. In terms of new products, we released the T Pro, G Pro, D, and other new products andachieved product upgrade in terms of brightness, image quality, and lens adaptation. In terms of software,we released the “new Appotronics OSD system” and “Appotronics dedicated console system” toimprove the control of projectors during installation, adjustment, and management, helping users toefficiently complete project management, operation, and maintenance.For the overseas market, relying on the core advantages of the ALPD
?semiconductor laser lightsource technology, we will further improve the influence of the ALPD
?brand, enhance the overseaslayout, and expand the size of the overseas business.
2.2 Formovie improved the ratio of self-branded business to 78% despite the short-termfluctuation in the demands of consumer electronics
Under the industry background of prudent consumption of the public, change in consumption habits,and change in market conditions, the subsidiary Formovie continuously improved its business structureby making great efforts to develop the cost-effective sub-brand Xiaoming and actively responding to thechanges in the current market conditions. This increased the ratio of Formovie’s self-branded business toits total income to 78%.
During the reporting period, facing the short-term fluctuation in the market of consumer electronics,Formovie paid great attention to the cultivation and development of its self-branded products, andreleased new products such as the laser projector X5, laser TV C3, Xiaoming Q3 and Q3 MAX smartprojector.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. Risks of the macro environment and the consumer electronics industry
At present, given that the global economy is experiencing cyclical fluctuation, both domestic andoverseas economy is complex and prone to changes. Under such circumstances, the public are moreprudent in consumption, which slows down the demands on the consumer electronics market. Asoptional consumption products, smart projection products are facing more significant short-termfluctuation.
We will continue to enhance efforts for studying the macro economic conditions, closely follow thedevelopment trend of the consumer electronics industry, conduct in-depth research into market demands,constantly enhance efforts for product R&D and technology investment, improve our R&D and product
designing competence, assess risks rapidly, and take initiative to make relevant business adjustment,hence improving the risk tolerance of the Company.
2. Financial risks
(1) Risk of impairment of accounts receivable
As of the end of the reporting period, the book value of our accounts receivable was RMB
206.7273 million, accounting for 4.76% of our total assets. Our products are generally delivered afterreceiving the payment therefor. We give certain credit period to some major and high-quality customers.In case of any material adverse change in the business condition of our customers, we may be unable torecover certain accounts receivable, which may have an adverse effect on our operating performance inthe future.
The Company strengthens risk management and control, continuously tracks and controls customercredit, and strengthens the assessment of accounts receivable collection, and establishes an earlywarning system for overdue accounts receivable; for individual customers who maliciously default andhave a long period of arrears, payment will be recovered through arbitration, litigation and other legalmethods.
(2) Risk of impairment of inventories
As of the end of the reporting period, the book value of our inventories was RMB 757.7190 million,accounting for 17.46% of our assets. Our inventories mainly comprise raw materials and goods in stock.In the event of any significant change in the competition pattern of the industry, and material innovationin laser display technology and products, the recoverable amount of the inventories will be lower thantheir book value. The impairment of inventories will have a negative effect on our earnings. TheCompany will pay close attention to the changes in supply and demand of the industrial chain, andpromptly carry out production and marketing coordination according to the market and productionconditions to reduce product inventory risks.
(3) Risks of impairment of fixed assets
As of the end of the reporting period, the book value of our fixed asset was RMB 379.9624 million,accounting for 8.75% of our assets. Our fixed assets mainly consist of production equipment and cinemaprojector light sources for lease, where the cinema projector light sources account for 71.87%. If forcemajeure factors result in shutdown of cinemas, the cinema projector light sources may be idle, causingrisks of impairment of fixed assets and adverse effects to the operation of the Company. In order to copewith the above risks, the Company will pay close attention to the status of fixed assets, strengthencommunication with business departments, improve the efficiency of asset use, and reduce the risk ofimpairment. In the meanwhile, for assets that show signs of impairment, the Company will measure therecoverable amount and make an impairment provision for fixed assets based on the difference betweenthe recoverable amount and the carrying value.
(4) Risks of exchange rate movement
The Company’s procurement and sales involve a variety of foreign currencies, of which dollar isthe main foreign currency. If the exchange rate of the relevant currency fluctuates, it will have a certain
impact on the Company’s financial position. In this regard, in order to effectively avoid the risks of theforeign exchange market, prevent large fluctuations in the exchange rate from adversely affecting theCompany’s business performance, improve the efficiency of the use of foreign exchange funds, andreasonably reduce financial costs, the Company carries out foreign exchange derivatives and otherbusinesses in a timely manner to reduce the risk of exchange rate fluctuations.
3. Risks in failing to implement investment projects as expected
Under the impact of changes in the internal and external environment, there are risks that theCompany cannot implement investment projects as expected. Despite the efforts of the Company inenhancing the management over investment projects, accelerate the progress of investment projects, andconstantly monitoring the progress of such investment projects, in the actual implementation, this cannotavoid situation like delayed construction compared with the plan, or adjustment to the implementationplan or solution in response to industry and market development. Upon the occurrence of suchcircumstances, the Company will make decisions in accordance with relevant provisions and promptlyfulfill its obligations for information disclosure.
4. Risks in the arbitration with relevant parties of the participating company GDC BVI
At present, the Company is in the process of arbitration and counter arbitration with relevant partiesof GDC concerning the rights and interests of the parties. Because GDC Cayman, GDC BVI, Mr.ZHANG Wanneng and his management team violated the provisions of the Shareholders’ Agreementand Settlement Agreement, including but not limited to the appointment of directors in violation ofcorporate governance regulations, violation of protective provisions for the Company, and failing topurchase the minimum quantity of C5 projectors and core device parts by the end of 2021.
The cooperation on the purchase business for cinema hardware products between the Company andGDC BVI is subject to uncertainty. The trial of this case has not been started, the impact of such case onthe profit or loss of the Company cannot be determined at present; the eventual actual impact depends onthe award of the arbitration tribunal or the negotiation between the parties. The Company has engaged aprofessional attorney team and taken relevant legal measures to safeguard the legitimate rights andinterests of the Company and all shareholders in accordance with law, and will promptly fulfill theinformation disclosure obligations in accordance with relevant provisions.VI. Main business activities during the reporting periodRefer 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 | Prior period | % Change |
| Operating income | 1,073,249,037.75 | 1,269,322,202.11 | -15.45 |
| Operating costs | 668,659,467.49 | 884,560,607.88 | -24.41 |
| Selling expenses | 143,399,660.02 | 120,302,361.36 | 19.20 |
| Administrative expenses | 86,696,223.82 | 106,015,842.36 | -18.22 |
| Financial expenses | -17,021,406.56 | -3,353,880.91 | N/A |
| R&D expenses | 126,406,142.12 | 114,959,786.37 | 9.96 |
| Net cash flow from operating | 114,738,832.13 | -78,553,359.67 | N/A |
| activities | |||
| Net cash flows from investment activities | -260,010,504.24 | 5,167,457.19 | -5,131.69 |
| Net cash flows from financing activities | 110,646,737.55 | 124,508,865.09 | -11.13 |
Description of reasons for changes in the operating income: The operating income decreased by
15.45% year on year, primarily due to the year-on-year decrease by 39.97% of the To C business;Description of reasons for changes in operating costs: The operating costs decreased by 24.41% yearon year, primarily due to the decrease in the operating costs corresponding to the year-on-year decreaseby 39.97% of the operating income from the To C business;Description of reasons for changes in the selling expenses: The selling expenses increased by 19.20%year on year, primarily due to the increase in marketing fees, salaries of the sales staff, etc.;Description of reasons for changes in the administrative expenses: The administrative expensesdecreased by 18.22% year on year, primarily due to the year-on-year decrease by RMB 19.2929 millionof the share-based payment;Description of reasons for changes in the financial expenses: The financial expenses decreased byRMB -13.6675 million year on year, primarily due to the year-on-year increase in the subsidy forinterests on loans and interest incomes received;Description of reasons for changes in the R&D expenses: The R&D expenses increased by 9.96%year on year, primarily due to the increase in the R&D expenses in the business of automotive coredevices;Description of reasons for changes in the net cash flows from operating activities: The net cash flowfrom operating activities increased by RMB 193.2922 million year on year, primarily due to theoptimized supply chain management, decreased payment for procurement, and net recovery of securitydeposits during the reporting period;Description of reasons for changes in the net cash flows from investment activities: The net cashflow from investment activities decreased by 5,131.69% year on year, primarily due to the increase inthe purchase of wealth management products;Description of reasons for changes in the net cash flows from financing activities: The net cash flowfrom financing activities decreased by 11.13% year on year, primarily due to the increase in therepayment of due bank loans.2 Detailed description of major changes in the business types, profit composition or profitsources of the Company
□ Applicable√ N/A
(II) Explanation about material change in profit due to non-main business
□ Applicable√ N/A
(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 | 564,877,200.00 | 13.01 | 352,880,000.00 | 8.14 | 60.08 | Primarily due to the increase in the purchase of structural |
| assets | bank deposits in the current period | |||||
| Notes receivable | 3,404,025.55 | 0.08 | 2,234,687.77 | 0.05 | 52.33 | Primarily due to the increase in commercial acceptance bills received in the current period |
| Receivables financing | 15,223,418.33 | 0.35 | 4,279,041.00 | 0.10 | 255.77 | Primarily due to the increase in bank acceptance bills received during this period |
| Contract assets | 1,608,301.56 | 0.04 | 1,061,581.35 | 0.02 | 51.50 | Primarily due to the increase in the warranty deposit for the new integration project in the current period |
| Non-current assets due within 1 year | 28,306,652.31 | 0.65 | 13,431,554.82 | 0.31 | 110.75 | Primarily due to the increase in the long-term receivables due within 1 year as of the end of the reporting period |
| Long-term receivables | 22,198,629.19 | 0.51 | 11,524,193.80 | 0.27 | 92.63 | Primarily due to the increase in the business of installment receipts in the current period |
| Other non-current assets | 18,633,790.53 | 0.43 | 12,569,088.37 | 0.29 | 48.25 | Primarily due to the increase in prepayments for long-term assets |
| Notes payable | 80,254,013.57 | 1.85 | 201,299,388.57 | 4.65 | -60.13 | Primarily due to the payment of bank acceptance bills that are payable at the beginning and paid during the reporting period |
| Employee benefits payable | 29,744,716.45 | 0.69 | 58,470,960.55 | 1.35 | -49.13 | Primarily due to the payment of accrued salaries and wages as well as bonuses for the preceding year in the current period |
| Other payables | 119,907,648.52 | 2.76 | 56,662,357.08 | 1.31 | 111.62 | Primarily due to the subscription amounts for restricted shares received in the current period, for which the share registration has not been completed |
| Other current liabilities | 9,799,529.40 | 0.23 | 28,383,608.37 | 0.66 | -65.47 | Primarily due to the payment made in the current period for |
| rebates incurred in the prior period | ||||||
| Long-term borrowings | 531,486,901.70 | 12.25 | 403,720,542.45 | 9.32 | 31.65 | Primarily due to the new long-term bank borrowings incurred in the current period |
| Deferred income | 5,112,246.23 | 0.12 | 8,651,422.26 | 0.20 | -40.91 | Primarily due to the recognition and conversion of deferred income to other income |
Other informationNone
2. Overseas assets
√ Applicable□ N/A
(1) Size of assets
Including: The overseas assets were RMB 481.0871 million, representing 11.08% of the total assets.
(2) Explanation about the high proportion of overseas assets
□ Applicable√ N/A
Other informationNone
3. Encumbrances on major assets as of the end of the reporting period
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Closing balance of book value | Reason |
| Other monetary funds | 10,961,787.42 | Security deposits |
| Bank deposits | 40,000,000.00 | Term deposits |
| Bank deposits | 5.49 | Accounts not handling for a long time |
| Intangible assets | 275,524,999.80 | Mortgage collateral |
| Total | 326,486,792.71 | - |
4. Other information
□ Applicable√ N/A
(IV) Analysis of investmentsOverall analysis of external equity investments
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Investment amount in the reporting period (in RMB) | Investment in the same period of the prior year (in RMB) | Range of change |
| 156,523,146.05 | 159,724,538.60 | -2.00% |
1. Material equity investments
□ Applicable√ N/A
2. Material non-equity investments
□ Applicable√ N/A
3. Financial assets at fair value
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Asset category | Opening balance | Gain or loss on changes in fair value for the period | Cumulative fair value changes included in equity | Impairment of the current period | Purchase amount for the current period | Sale/redemption for the current period | Other changes | Closing balance |
| Equities | 12,880,000.00 | 12,880,000.00 | ||||||
| Others | 351,354,460.38 | -4,900,000.00 | 222,941,577.33 | 574,296,037.71 | ||||
| Total | 364,234,460.38 | -4,900,000.00 | 222,941,577.33 | 587,176,037.71 |
Note: “Others” mainly include structured deposits and other equity instruments, described in detail in XI of Section X.Description of securities investments
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Security type | Security code | Short name | Initial investment cost | Source of funds | Opening book value | Gain or loss on changes in fair value for the period | Cumulative fair value changes included in equity | Purchase amount for the current period | Sale for the current period | Gains or losses from disposal | Closing balance of book value | Accounting account |
| Domestic and overseas shares | 835438 | Gabrielle | 14,000,000.00 | Self-owned capital | 12,880,000.00 | 12,880,000.00 | Held-for-trading financial assets | |||||
| Total | - | - | 14,000,000.00 | - | 12,880,000.00 | 12,880,000.00 | - |
Description of investments in private funds
□ Applicable√ N/A
Description of derivative investments
√ Applicable□ N/A
The Company held the 16
thmeeting of the second Board of Directors on October 28, 2022, atwhich the Proposal on Carrying out Foreign Exchange Derivatives Trading Business was deliberatedand approved, under which the Company and subsidiaries in the scope of consolidation were allowed toengage in the business of foreign exchange derivative products for no more than USD 35.00 million (thefunds may be used on a rolling basis within such quota), and the management or relevant staff of theCompany were authorized to implement relevant specific affairs. This proposal is valid for 12 monthsfrom the date when it is deliberated and passed by the Board of Directors of the Company. In the currentperiod, the Company carried out the business of foreign exchange derivative products in the amount ofUSD 5.00 million. This business has become expired by the end of the period.(V) Sale of material assets and equities
□ Applicable√ N/A
(VI) Analysis of major investees
√ Applicable□ N/A
Unit: 0’000 Yuan Currency: RMB
| Company name | Main business | Registered capital | Shareholding ratio | Total assets | Net assets | Operating income | Net profit |
| CINEAPPO | Provision of cinema projection services and sales of projectors | 10,000.00 | 67.80% | 81,132.24 | 44,672.68 | 24,187.64 | 4,716.46 |
| Chongqing Formovie | R&D and sale of household display products | 7,017.54 | 39.19% | 79,752.84 | -15,573.76 | 37,600.18 | -7,921.68 |
| Appotronics HK | R&D and sale of laser light source | 30,116.15 | 100.00% | 43,254.05 | 35,443.24 | 8,162.26 | -2,129.88 |
(VII) Structured entities controlled by the Company
□ Applicable√ N/A
VII. Other disclosures
□ Applicable√ N/A
Section IV Corporate GovernanceI. General meetings of shareholders held
| Session | Date of meeting | Reference to resolutions published on the designated website | Date of disclosure of resolutions | Resolutions |
| Annual general meeting of shareholders in 2022 | May 19, 2023 | www.sse.com.cn | May 20, 2023 | Refer to the Announcement on the Resolutions of the Annual General Meeting of Shareholders in 2022 (No. 2023-020) disclosed by the Company at the website of the Shanghai Stock Exchange (www.sse.com.cn) on May 20, 2023 for details. |
Extraordinary general meeting of shareholders requested by the preferred shareholders withrestitution of voting right
□ Applicable√ N/A
Explanation about the general meetings of shareholders
√ Applicable□ N/A
During the reporting period, the Company held 1 annual general meeting. After being certified byBeijing Zhong Lun (Shenzhen) Law Firm engaged by the Company, the convening and holdingprocedures of general meetings of shareholders, the qualifications of the persons attending the meetingand conveners, the voting procedures and results comply with the relevant provisions of the CompaniesLaw, the Rules for General Meetings of Shareholders and other laws, regulations and normativedocuments as well as the provisions of the Articles of Association, and are legal and valid. All proposalssubmitted by the Board of Directors of the Company to the general meeting have been reviewed andpassed.II. Changes in directors, supervisors, senior officers and key technical staff
□ Applicable√ N/A
Description of changes in directors, supervisors, senior officers and key technical staff
□ Applicable√ N/A
Description of determination of key technical staff of the Company
√ Applicable□ N/A
The key technical staff of the Company were determined by taking into account the following factors:
(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 contributions tothe core technologies of the Company;
(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 or capitalization of the capital reserveProfit distribution proposal or proposal for capitalization of the capital reserve during thereporting period
| Whether to implement profit distribution or capitalization of the 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 or capitalization of the capital reserve | |
| - | |
IV. Share incentive plan, employee stock ownership plan or other employee incentive measures of
the Company and their effect(I) Equity incentives already disclosed in the interim announcements about which no newinformation is available
√ Applicable□ N/A
| Summary | Reference |
| On June 25, 2023, the Company held the 20th meeting of the second Board of Directors and the 19th meeting of the second Board of Supervisors, deliberating and approving the Proposal on Adjustments to Grant Prices under the Company’s Restricted Share Incentive Plan, the Proposal on Invalidating Partially Granted but Not Vested Restricted Shares, the Proposal on Meeting Vesting Criteria for the First Vesting Period in the Initial Grant under 2022 Restricted Share Incentive Plan, and other related proposals. | Refer to the relevant announcements disclosed by the Company at the website of the Shanghai Stock Exchange (www.sse.com.cn) on June 27, 2023 for details. |
(II) Incentives that have not been disclosed in any interim announcement or about which there’s
new information availableShare incentives
□ Applicable√ N/A
Other information
□ Applicable√ N/A
Employee stock ownership plan
□ Applicable√ N/A
Other incentives
□ Applicable√ N/A
Section V Environment and Social ResponsibilitiesI. Environment
| Whether mechanisms related to environmental protection have been established | Yes |
| Investment in environmental protection funds during the reporting period (unit: RMB 0’000) | 17.24 |
(I) Environmental protection information of the Company and its major subsidiaries that areidentified 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
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 semiconductor laser light source technologies to different scenarios based on theproprietary semiconductor laser light source technologies and architecture, making it a low energyconsumption enterprise. During the reporting period, the Company had no production or operating entityincluded in the list of major polluters identified by the environmental protection authority, did notconduct its routine production and operation in the heavy pollution industry identified by relevantnational laws and regulations, and its production and operating activities had little impact onenvironment.
During its production, the Company mainly emits waste gas, waste water and solid waste, whichhave been properly handled in accordance with the requirements of relevant authorities and industrialparks. For waste gas, we apply the level II standards defined in the Emission Limits of Air Pollutants(DB44/27-2001) promulgated by Guangdong Province. The waste gas is treated by an environmentprotection facility, and emitted when reaching the waste gas emission criteria. Moreover, we engage aprofessional third-party inspection institution every year to monitor and assess the waste gas emitted. Ofthe waste water, domestic sewage is pre-processed according to standards, and discharged through themunicipal sewage pipelines to the regional water quality purification plant for in-depth processing. Theindustrial wastewater is uniformly recycled and treated by a qualified environmental protection company.Meanwhile, the Company actively optimizes the production process and reduces sewage discharge. Withrespect to solid waste, industrial solid waste is treated by a qualified environmental protection company,while recyclable waste is collected and sorted by the Company’s cleaning staff and then recovered bythe relevant resource recovery unit.
3. Reason for failure to disclose other 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 fulfillingenvironmental responsibilities
√ Applicable□ N/A
The Company achieved ISO14001 environmental management system certification in 2008, andmaintained such certification to date, and also achieved the QC080000 Hazardous Substance ProcessManagement (HSPM) certification in 2019. All of our products are green products and have passedChina environmental labeling product certification, RoHS, REACH and other certifications.We actively implemented internal measures to reduce costs and improve efficiency, and achieveenergy conservation and environment protection by means of technical innovation. For example, ourALPD
?
5.0 super panchromatic laser technology can achieve the energy efficiency of up to 20 lm/W andimprove the efficiency by about 100% compared with other light sources, hence significantly reducingenergy consumption while maintaining the high brightness. To promote green office among employees,we replaced paper approval with online approval, which effectively reduced the paper consumption atthe office. Moreover, we encouraged employees to shut down devices when leaving their posts, turn offthe light for one hour at the lunch break, and take the employee bus, hence improving employees’awareness of energy conservation and environment protection. We actively implemented rules of energyconservation and emission reduction and daily management measures, and effectively carried outmeasures to save water and power.(V) Measures taken to reduce carbon emissions during the reporting period and their effect
| Whether carbon reduction measures are in place | Yes |
| Reduction of CO2 equivalent emissions (in tons) | 414,203 |
| Types of carbon reduction measures (e.g., using clean energy to generate electricity, using carbon reduction technologies in the production process, developing and producing new products that contribute to carbon reduction, etc.) | To develop and produce new products that facilitate carbon reduction: The xenon lamp light sources used for projection at conventional cinemas have the characteristics of high power consumption and fast brightness attenuation. Our ALPD? laser light source, thanks to its obvious advantages in energy and power conservation, can reduce power consumption by about 1.8 degree for each hour compared with xenon lamps. |
Specific description
√ Applicable□ N/A
To verify the use performance of the ALPD
?laser light source, a cinema in Hebei Provinceselected two cinema halls with almost identical conditions, and retained the xenon lamp light source inone hall while upgrading the other hall with the ALPD
?laser light source. After operation for twomonths, given the basically same film programming, the xenon lamp hall consumed a total of 1,076degrees of electricity, making the hourly electricity consumption of 2.91 degrees; while the ALPD
?
laserhall consumed 403 degrees of electricity, making the hourly electricity consumption of 1.1 degrees,which reduced the hourly electricity consumption by 1.81 degrees compared with the xenon lamp hall.As of the end of the reporting period, we have installed over 28,600 sets of our ALPD
?
laser lightsource projection solution throughout China, achieving the total light source operation of about 268million hours. On the basis of the average of about 1.8 degrees of electricity saved per hour, this saved atotal of about 482 million degrees of electricity, equivalent to reducing the CO
emission by 0.4142million tons.II. Information on consolidation and expansion of the results of poverty alleviation, ruralrevitalization and other specific work
□ Applicable√ N/A
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 duringthe reporting period or the outstanding covenants 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 extended period stated below | 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 extended period stated below, 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 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 | 36 months after completion of the IPO and the extended period stated below | Yes | Yes | N/A | N/A |
| Covenant relating to IPO | Restriction on the sale of shares | Covenant by HU Fei, as a member of key technical staff, 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 | 12 months after completion of the IPO and the extended period stated below, and 6 months after termination of employment with the Company | 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 | Others | Issuer’s covenant regarding remedial measures for diluted | Refer to IPO Prospectus | Permanent | No | Yes | N/A | N/A |
| IPO | earnings 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 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 | Controlling shareholder’s covenant on avoiding horizontal competition and | Refer to IPO Prospectus | Permanent | No | Yes | N/A | N/A |
| issues | regulating and reducing related-party transactions | |||||||
| 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 | For details, refer to the 2021 Restricted Share Incentive Plan (Draft), the 2021 Second Restricted Share Incentive Plan (Draft), and the 2022 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 | For details, refer to the 2021 Restricted Share Incentive Plan (Draft), the 2021 Second Restricted Share Incentive Plan (Draft), and the 2022 Restricted Share Incentive Plan (Draft) of the Company | Permanent | No | Yes | N/A | N/A |
II. Non-operating occupation of funds by the controlling shareholder and other affiliates during the reporting period
□ 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 and treatment 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 arbitrations during the reporting period
□ The Company was not involved in material litigations or arbitrations 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. (2019) Yue 03 Min Chu No. 2943, 2944, 2946, 2948 and 2951 In July 2019, the Company initiated a patent infringement litigation on the ground that Delta Electronics (Shanghai) Co., Ltd., Delta Video Display System (Wujiang) Limited, and Shenzhen Super Network Technology Co., Ltd. infringed the patent for invention 200810065225.X owned by the Company, requesting the court to order the defendants to stop the acts of infringing the Company’s patent rights and compensate the plaintiff for its economic losses, etc. in the amount of RMB 28.00 million. | Refer to the Announcement of Litigation Involving Appotronics (No. 2019-006) disclosed by the Company at the website of the Shanghai Stock Exchange (www.sse.com.cn) on July 31, 2019 for details. |
| II. (2021) Yue 73 Zhi Min Chu No. 1860 In December 2021, Delta maliciously initiated an intellectual property litigation against the Company. Since such act infringed the rights and interests of the Company, the Company sued Delta to Guangzhou Intellectual Property Court on December 17, 2021 on the ground of such malicious act, involving the amount of RMB 10.00 million. | Refer to the Announcement on Malicious Litigation Initiated by Delta Electronics (No. 2021-097) disclosed by the Company at the website of the Shanghai Stock Exchange (www.sse.com.cn) on December 21, 2021 for details. |
| III. 01-22-0001-2735 In March 2022, GDC Cayman and GDC BVI initiated the arbitration against the Company and its wholly-owned subsidiary Appotronics HK in respect of the dispute over the implementation of the Settlement Agreement, involving the total amount of USD 38.00 million. Later, the Company raised counter-claims against GDC Cayman, GDC BVI, Mr. ZHANG Wanneng and his management team on the ground that GDC Cayman, GDC BVI, Mr. ZHANG Wanneng and his management team violated the provisions of the Shareholders’ Agreement and Settlement Agreement, involving the total amount of no less than USD 40.00 million. |
Refer to the Announcement on Arbitration with GDC Cayman andGDC BVI (No. 2022-028) disclosed by the Company at the websiteof the Shanghai Stock Exchange (www.sse.com.cn) on April 2, 2022for details.
(II) Litigations and arbitrations that have not been disclosed in interim announcements or about which there’s new information available
√ Applicable□ N/A
Unit: 0’000 Yuan Currency: RMB
| During the reporting period: | |||||||||
| Plaintiff/claimant | Defendant/respondent | Party jointly and | Type of litigation/arbitration | Background | Amount claimed | Whether any | Status | Result and | Enforcement of judgment/award |
| severally liable | provision is recognized and the amount | effect | |||||||
| Delta Electronics, Inc. | Appotronics Corporation Limited | Fengmi (Beijing) Technology Co., Ltd. | Infringement on patent for invention | Case of dispute over infringement on patents for invention (2019) Jing 73 Min Chu No. 1275, 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. | 1,601.00 | No | Under trial of the second instance. Judgment of first instance: All the claims of Delta Electronics should be dismissed. | Trial not completed | - |
| Delta Electronics, Inc. | Appotronics Corporation Limited | Chengdu Jinxi Guangxian Information Technology Co., Ltd. | Infringement on patent for invention | Case of dispute over infringement on patents for invention (2021) Chuan 01 Zhi Min Chu No. 685, the Plaintiff alleges that the Defendant infringed such patent for invention ZL201610387831.8 of the Plaintiff and | 1,601.00 | No | The Plaintiff withdrew its case | The court approved to withdraw the case | - |
| caused economic losses to the Plaintiff. | |||||||||
| Delta Electronics, Inc. | Appotronics Corporation Limited | Chengdu Jinxi Guangxian Information Technology Co., Ltd. | Infringement on patent for invention | Case of dispute over infringement on patents for invention (2021) Chuan 01 Zhi Min Chu No. 686, the Plaintiff alleges that the Defendant infringed such patent for invention ZL201110041436.1 of the Plaintiff and caused economic losses to the Plaintiff. | 1,601.00 | No | The Plaintiff withdrew its case | The court approved to withdraw the case | - |
| Delta Electronics, Inc. | Appotronics Corporation Limited | Shanghai Haichi Digital Technology Co., Ltd. | Infringement on patent for invention | Case of dispute over infringement on patents for invention (2023) Hu 73 Zhi Min Chu No. 15 (former case No.: (2021) Hu 73 Zhi Min Chu No. 1070), the Plaintiff alleges that the Defendant infringed such patent for invention ZL201110041436.1 of the Plaintiff and caused economic losses to the | 1,601.00 | No | The Plaintiff withdrew its case | The court approved to withdraw the case | - |
| Plaintiff. | |||||||||
| Appotronics Corporation Limited | Delta Electronics (Shanghai) Co., Ltd. | Delta Video Display System (Wujiang) Limited, WANG Yuhai, Hunan Dehao Cultural and Creative Co., Ltd., Digital Protection (Beijing) Electronics Technology Co., Ltd., Guangdong Jianye Display Information Technology Co., Ltd., and Guangzhou Jianye Network Technology Co., Ltd. | Infringement on patent for invention | Cases of dispute over infringement on patents for invention (2020) Yue 73 Zhi Min Chu No. 1335-1338, 1340, 1341, 1361, the Plaintiff accused the Defendants, Delta Electronics (Shanghai) Co., Ltd., Delta Video Display System (Wujiang) Limited, and other entities, of infringing the patent for invention No. ZL200880107739.5 of the Plaintiff and caused economic losses to the Plaintiff. | 3,825.00 | No | Case closed | The court has made the decision | - |
| Appotronics Corporation Limited | Delta Electronics (Shanghai) Co., Ltd. | Delta Video | Infringement on patent for invention | Cases of dispute over infringement | 4,175.00 | No | Case closed | The court has made | - |
| Display System (Wujiang) Limited, WANG Yuhai, Hunan Dehao Cultural and Creative Co., Ltd., Digital Protection (Beijing) Electronics Technology Co., Ltd., Guangdong Jianye Display Information Technology Co., Ltd., and Guangzhou Jianye Network Technology Co., Ltd. | on patents for invention (2020) Yue 73 Zhi Min Chu No. 1339, 1353, 1355, 1357-1360, the Plaintiff accused the Defendants, Delta Electronics (Shanghai) Co., Ltd., Delta Video Display System (Wujiang) Limited, and other entities, of infringing the patent for invention No. ZL200810065225.X of the Plaintiff and caused economic losses to the Plaintiff. | the decision |
(III) Other information
√ Applicable□ N/A
1. As of the end of the reporting period, 3 of the invalidation petitions initiated by the Company against the patents held by Delta Electronics, Inc. were underexamination at China National Intellectual Property Administration.
2. As of the end of the reporting period, 1 of the invalidation petitions initiated against a patent held by the Company was under examination at China NationalIntellectual Property Administration. The patent involved is “phosphor layer, device and corresponding light source and projection system, and correspondingproduction method” (patent No.: ZL201510420950.4).
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 is
available
√ Applicable□ N/A
| Summary | Reference |
| The Company expects to engage in daily related-party transactions with China Film Equipment Co., Ltd. and its affiliates, Xiaomi Communications Co., Ltd. and its affiliates, Beijing DonView Education Technology Co., Ltd. and its affiliates, CINIONIC Limited and its affiliates, GDC Technology Limited and its affiliates, Shenzhen YLX Technology Development Co., Ltd. for the amount of RMB 573.5000 million in 2023. | Refer to the Announcement on the Prediction of Daily Related-party Transactions in 2023 (No. 2023-010) disclosed by the Company at the website of the Shanghai Stock Exchange (www.sse.com.cn) on April 28, 2023. |
2. Matters already disclosed in the interim announcements about which there is newinformation available
□ Applicable√ N/A
3. Matters that have not been disclosed in any interim announcement
□ Applicable√ N/A
(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 is
available
□ Applicable√ N/A
2. Matters already disclosed in the interim announcements about which there is newinformation available
□ Applicable√ N/A
3. Matters that have not been disclosed in any interim announcement
□ Applicable√ N/A
4. Fulfillment of performance covenants (if any) during the reporting period
□ Applicable√ N/A
(III) Material related-party transactions involving joint external investments
1. Matters already disclosed in the interim announcements about which no new information isavailable
√ Applicable□ N/A
| Summary | Reference |
| On April 26, 2023, the Company held the 19th meeting of the second Board of Directors and the 18th meeting of | Refer to the Announcement on Stopping Acquiring 51% Equity Interests in WeCast Technology Corp. by the Subsidiary |
| the second Board of Supervisors, at which the Proposal on Stopping Acquiring 51% Equity Interests in WeCast Technology Corp. by the Subsidiary Formovie was reviewed and approved, under which it was approved that Formovie (Chongqing) Innovative Technology Co., Ltd., a subsidiary of the Company, shall stop acquiring the 51% equity interests in WeCast. | Formovie (No. 2023-014) disclosed by the Company at the website of the Shanghai Stock Exchange (www.sse.com.cn) on April 28, 2023 for details. |
2. Matters already disclosed in the interim announcements about which there is newinformation available
□ Applicable√ N/A
3. Matters that have not been disclosed in any interim announcement
□ Applicable√ N/A
(IV) Accounts receivable from and payable to related parties
1. Matters already disclosed in the interim announcements about which no new information is
available
□ Applicable√ N/A
2. Matters already disclosed in the interim announcements about which there is newinformation available
□ Applicable√ N/A
3. Matters that have not been disclosed in any interim announcement
□ Applicable√ N/A
(V) Financial business between the Company and its affiliated financial companies, or between
the Company’s controlled financial companies and affiliates
□ Applicable√ N/A
(VI) Other material related-party transactions
□ Applicable√ N/A
(VII) Others
□ Applicable√ N/A
XI. Material contracts and performance thereof(I) 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 Yuan 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 | 1469.40 | 2022.12.01 | 2024.11.30 | - | - | - | No | None |
Description of leaseNone
(II) Material guarantees that have been performed or have not yet been fully performed during the report period
√ Applicable□ N/A
Unit: 0’000 Yuan Currency: RMB
| External guarantees provided by the Company (excluding those provided for the subsidiaries) | |||||||||||||
| Total amount of guarantees provided during the reporting period (excluding those provided for the subsidiaries) | 0 | ||||||||||||
| Balance of guarantees as of the end of the reporting period (A) (excluding those provided for the subsidiaries) | 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 | 50,000.00 | 2021/12/29 | 2021/12/29 | 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 | 23,000.00 | 2021/1/26 | 2021/1/26 | 2026/2/7 | Joint and several liability | No | No | - | No | |
| Appotronics | Headquarters | CINEAPPO Laser | Controlled subsidiary | 4,000.00 | 2021/12/27 | 2021/12/27 | 2026/7/3 | Joint and several | No | No | - | No | |
| Corporation Limited | Cinema Technology (Beijing) Co., Ltd. | liability | ||||||||||
| Appotronics Corporation Limited | Headquarters | CINEAPPO Laser Cinema Technology (Beijing) Co., Ltd. | Controlled subsidiary | 10,000.00 | 2022/12/30 | 2022/12/30 | 2027/2/28 | Joint and several liability | No | No | - | No |
| Appotronics Corporation Limited | Headquarters | Formovie (Chongqing) Innovative Technology Co., Ltd. | Controlled subsidiary | 20,000.00 | 2021/9/10 | 2021/9/10 | 2028/4/25 | Joint and several liability | No | No | - | No |
| Appotronics Corporation Limited | Headquarters | Formovie (Chongqing) Innovative Technology Co., Ltd. | Controlled subsidiary | 9,000.00 | 2021/12/6 | 2021/12/6 | 2026/12/30 | Joint and several liability | No | No | - | No |
| Appotronics Corporation Limited | Headquarters | Formovie (Chongqing) Innovative Technology Co., Ltd. | Controlled subsidiary | 30,000.00 | 2022/9/16 | 2022/9/16 | Three years after the due date for the obligations under the master contract. | Joint and several liability | No | No | - | No |
| Appotronics Corporation Limited | Headquarters | Formovie (Chongqing) Innovative Technolog | Controlled subsidiary | 12,000.00 | 2022/12/22 | 2022/12/22 | Three years after the due date (without accelerated | Joint and several liability | No | No | - | No |
| y Co., Ltd. | maturity) of the latest financing due and payable among all the financings drawn and used during the period of occurrence of guaranteed debts under the master agreement or/and inter-bank borrowing. | ||||||||||||
| Appotronics Corporation Limited | Headquarters | Formovie (Chongqing) Innovative Technology Co., Ltd. | Controlled subsidiary | 5,000.00 | 2021/12/29 | 2021/12/29 | The guarantee period is three years from the date of termination of claims determination period. | Joint and several liability | No | No | - | No | |
| Total amount of guarantees provided for the subsidiaries during the reporting period | 20,908.07 | ||||||||||||
| Balance of guarantees provided for the subsidiaries as of the end of the reporting period (B) | 51,793.89 | ||||||||||||
| Total amount of guarantees provided by the Company (including those provided for the subsidiaries) | |||||||||||||
| Total amount guaranteed (A+B) | 51,793.89 |
| Proportion of total amount guaranteed to the net assets of the Company (%) | 19.00 |
| 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) | 36,599.64 |
| Total amount guaranteed in excess of 50% of the net assets of the Company (E) | 0 |
| Total amount guaranteed (C+D+E) | 36,599.64 |
| Explanation about outstanding guarantees for which the Company may assume joint and several liability | N/A |
| Explanation about guarantees | N/A |
(III) Other material contracts
□ Applicable√ N/A
XII. Use of offering proceeds
√ Applicable□ N/A
(I) Overall use of offering proceeds
√ Applicable□ N/A
Unit: Yuan
| Source of offering proceeds | Date of receiving offering proceeds | Total offering proceeds | Net offering proceeds after deduction of offering expenses | Total offering proceeds committed | Total offering proceeds committed after adjustment (1) | Cumulative total offering proceeds used as of the end of the reporting period (2) | Cumulative investment progress as of the end of the reporting period (%) (3)=(2)/(1) | Amount invested in this year (4) | Ratio of the amount invested in this year (%) (5)=(4)/(1) |
| Initial public offering | July 16, 2019 | 1,190,000,000.00 | 1,062,470,797.73 | 1,062,470,797.73 | 1,062,470,797.73 | 824,612,707.26 | 77.61 | 70,089,074.44 | 6.60 |
(II) Breakdown of investment projects
√ Applicable□ N/A
Unit: Yuan
| Project | Nature | Whether change of investment is involved | Source of offering proceeds | Date of receiving offering proceeds | Whether over-raised funds are used | Total investment from the offering proceeds committed for the project | Total investment from the offering proceeds after adjustment (1) | Cumulative total offering proceeds used as of the end of the reporting period | Cumulative investment progress as of the end of the reporting period (%) (3) = (2)/(1) | Date for the project to reach the working condition for its intended use [Note 1] | Completed or not | Whether the investment progress meets the progress planned | Specific reason for failing to achieve the plan of investment progress | Whether benefits are achieved during the reporting period | Benefits or R&D results achieved by the project | Material changes in the project feasibility; if any, describe the specific reasons | Balance amount and reasons thereof |
| (2) | |||||||||||||||||
| R&D and industrialization of new generation of laser display products [Note 5] | Production and construction | N/A | Initial public offering | July 16, 2019 | No | 313,000,000.00 | 313,000,000.00 | 279,311,086.99 | 89.24 | December 2022 | Yes | Yes | N/A | N/A | N/A [Note 4] | No | As of December 31, 2022, the project “R&D and industrialization of new generation of laser display products” has been completed, which used the raised funds of RMB 279.3111 million; the remaining raised funds of RMB 51.6167 million in total were used to supplement the working capital. |
| R&D center at the head office of Appotronics | R&D | N/A | Initial public offering | July 16, 2019 | No | 284,000,000.00 | 284,000,000.00 | 151,972,898.43 | 53.51 | December 2023 | No | No | The construction of the head office building slowed down due to the complex geological conditions on the site. This project may be fully implemented only after the construction of the head office building is completed. As a result, | N/A | N/A | No | N/A |
| the project implementation is postponed. | |||||||||||||||||
| Information system upgrade and building | Operation management | N/A | Initial public offering | July 16, 2019 | No | 70,000,000.00 | 70,000,000.00 | 38,556,386.63 | 55.08 | December 2023 | No | No | Since the main body of the head office building of the Company is still under construction, the prerequisites for implementing this project have not been satisfied. | N/A | N/A | No | N/A |
| Supplementary working capital [Note 2] | Supplementing the working capital and repayment of loans | N/A | Initial public offering | July 16, 2019 | No | 333,000,000.00 | 333,000,000.00 | 335,395,037.62 | 100.72 | N/A | Yes | Yes | N/A | N/A | N/A | No | N/A |
| Share repurchase [Note 3] | Others | N/A | Initial public offering | July 16, 2019 | Yes | 20,000,000.00 | 20,000,000.00 | 19,377,297.59 | 96.89 | September 2022 | Yes | Yes | N/A | N/A | N/A | No | N/A |
| Other excess offering proceeds | Others | N/A | Initial public offering | July 16, 2019 | N/A | 42,470,797.73 | 42,470,797.73 | - | - | N/A | No | Yes | N/A | N/A | N/A | No | N/A |
[Note 1] On March 18, 2022, the Company held the 9th meeting of the second Board of Directors and the 8
thmeeting of the second Board of Supervisors, approvingthe Proposal on Postponing Some Investment Projects through deliberation, and agreeing the Company to adjust the time for some investment projects to reach theworking condition for its intended use.[Note 2] During the period of implementation of the Company’s investment projects, the total wealth management returns of RMB 2.3950 million were realizedfrom the special account of supplementary working capital, which have been put into use in the project (supplementary working capital). The special account forsupplementary working capital (Huaxia Bank Co., Ltd. Shenzhen Houhai Branch, account number: 10869000000251463) has been deregistered on July 30, 2020.The interest RMB 1,418.11 incurred after completion of this project has been paid to the basic account of the Company to be used as supplementary working capital.[Note 3] The Company held the 9
th meeting of the second Board of Directors and the 1
st
extraordinary general meeting of shareholders in 2022 respectively onMarch 18, 2022 and March 29, 2022, approving the Proposal on Repurchase of Shares of the Company through Call Auction through deliberation, and agreeing theCompany to use the excess offering proceeds to repurchase some RMB-denominated ordinary shares (A shares) issued by it through call auction via the tradingsystem of the Shanghai Stock Exchange.[Note 4] As of December 31, 2022, the project “R&D and industrialization of new generation of laser display products” has been completed, for which theincremental sales revenue of RMB 50.5068 million before and after the investment in this project was taken as the indicator of the benefits realized from the project.[Note 5] On April 26, 2023, the Company held the 19
th
meeting of the second Board of Directors and the 18
th
meeting of the second Board of Supervisorsrespectively, which deliberated and approved the Proposal on the Completion of Some of the Company’s Fundraising Projects and Permanent Replenishment ofWorking Capital with the Surplus Raised Funds, and agreed that the Company would close the fundraising project “R&D and industrialization of new generation oflaser display products”, and a total of RMB 51.6167 million saved (as of December 31, 2022) shall be used for permanent replenishment of the working capital. Asat the date of remittance, the actual balance in the special account was RMB 52.0022 million (including the interest income and wealth management income, net ofhandling fees). This special account (Hua Xia Bank Co., Ltd. Shenzhen Houhai Branch, account No.: 10869000000305964) has been deregistered on May 17, 2023,and the funds have been transferred to the general account of the Company.
(III) Change in investment projects during the reporting period
□ Applicable√ N/A
(IV) Other information about the use of offering proceeds during the reporting period
1. Early investment and replacement of projects invested with offering proceeds
□ Applicable√ N/A
2. Supplement the working capital with idle offering proceeds
□ Applicable√ N/A
3. Cash management of idle offering proceeds, and investment in relevant products
√ Applicable□ N/A
The Proposal on Cash Management of Temporarily Idle Offering Proceeds was approved throughdeliberation at the 14
th meeting of the second Board of Directors and the 13
thmeeting of the secondBoard of Supervisors held by the Company on June 29, 2022. It was approved that, without affecting thenormal implementation of the investment plan for offering proceeds, a maximum of RMB 469 milliontemporarily idle offering proceeds may be put under cash management to purchase investment productsfeaturing high security, good liquidity, and guarantee of the principal (including but not limited tostructural deposits, agreement deposits, notice deposits, term deposits, large-amount deposit note, andreturn notes), where the total amount for purchasing return notes shall be no more than RMB 100 millionfor no more than 12 months, which shall be effective within 12 months from the review and approval bythe Board of Directors and Board of Supervisors.
The Proposal on Cash Management of Temporarily Idle Offering Proceeds was approved throughdeliberation at the 20
th meeting of the second Board of Directors and the 19
thmeeting of the secondBoard of Supervisors held by the Company on June 25, 2023. It was approved that, without affecting thenormal implementation of the investment plan for offering proceeds, a maximum of RMB 249.00million (inclusive) temporarily idle offering proceeds may be put under cash management to purchaseinvestment products featuring high security, good liquidity, and guarantee of the principal (including butnot limited to structural deposits, notice deposits, term deposits, large-amount deposit note, and returnnotes), where the total amount for purchasing return notes shall be no more than RMB 100 million(inclusive), which shall be effective within 12 months from the review and approval.
4. Supplement working capital or repay bank loans with excess offering proceeds
□ Applicable√ N/A
5. Others
√ Applicable□ N/A
1. On March 18, 2022, the Company held the 9th meeting of the second Board of Directors and the
thmeeting of the second Board of Supervisors, approving the Proposal on Postponing Some InvestmentProjects through deliberation, and agreeing the Company to adjust the time for some investment projectsto reach the working condition for its intended use. Refer to the Announcement on Postponing SomeInvestment Projects (No. 2022-019) disclosed by the Company at the website of the Shanghai StockExchange (www.sse.com.cn) on March 21, 2022.
2. The Company held the 9
thmeeting of the second Board of Directors and the 1st extraordinarygeneral meeting of shareholders in 2022 respectively on March 18, 2022 and March 29, 2022, approvingthe Proposal on Repurchase of Shares of the Company through Call Auction through deliberation, and
agreeing the Company to use the excess offering proceeds to repurchase some RMB-denominatedordinary shares (A shares) issued by it through call auction via the trading system of the Shanghai StockExchange, with the repurchase funds totaling not less than RMB 10 million (inclusive) but not more thanRMB 20 million (inclusive), the repurchase price not exceeding RMB 26.89 per share (inclusive, namelythe price after adjustments to equity distribution in 2021) and the repurchase period being six monthsfrom the date on which this repurchase plan is approved by the general meeting of shareholders.As of December 31, 2022, the Company repurchased 900,000 shares in the aggregate through callauction, representing 0.1969% of the Company’s total share capital, and paid RMB 19,377,297.59(including stamp duty, commissions and other transaction fees). The repurchase of shares has beencompleted.
3. The Company held the 14
th meeting of the second Board of Directors and the 13
th
meeting of thesecond Board of Supervisors on June 29, 2022, approving the Proposal on Adjusting Internal InvestmentStructure of Some Investment Projects through deliberation, and agreeing the Company to adjust theinternal investment structure of the investment project “R&D and industrialization of new generation oflaser display products”, and to decrease the “equipment purchase expenses” by RMB 53.802 million andincrease the “R&D expenditures” by RMB 53.802 million.
4. The Company held the 19
th
meeting of the second Board of Directors and the 18
th
meeting of thesecond Board of Supervisors and the annual general meeting for 2022 on April 26, 2023 and May 19,2023, respectively, approving the Proposal on Adjusting Internal Investment Structure of SomeInvestment Projects through deliberation, and agreeing the Company to adjust the internal investmentstructure of the investment project “R&D center at the head office of Appotronics”, and to decrease the“equipment purchase expenses” by RMB 65.0000 million and increase the “R&D expenditures” byRMB 65.0000 million.XIII. Other significant matters
□ Applicable√ N/A
Section VII Changes in Shares and ShareholdersI. Changes in shares(I) Statement of changes in shares
1. Statement of changes in shares
During the reporting period, there is no change in total ordinary shares and share capital structure of theCompany.
2. Explanation about changes in 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
√ Applicable □ N/A
On July 5, 2023, the Company disclosed the Announcement on the Vesting Result for the FirstVesting Period in the Initial Grant of the Restricted Share Incentive Plan 2022 and Listing of Shares(No. 2023-029). The Company registered a total of 3,299,000 newly vested shares for the first vestingperiod in the initial grant of the restricted share incentive plan 2022. These shares became available fortrading on July 7, 2023, increasing the Company’s total shares from 457,107,538 shares to 460,406,538shares.
From the end of the reporting period to the disclosure date of this semiannual report, changes in theCompany’s shares increased the diluted earnings per shares and net assets per share attributable toordinary shareholders of the Company.
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 ordinary shareholders as of the end of the reporting period (accounts) | 14,576 |
| Total number of shareholders of preferred shares whose voting right has been restituted as of the end of the reporting period (accounts) | 0 |
| Total number of shareholders holding shares with special voting rights as of the end of the reporting period (accounts) | 0 |
Number of holders of depository receipts
□ Applicable√ N/A
(II) Shares held by top 10 shareholders and top 10 holders of tradable shares as of the end of the
reporting periodShares held by top 10 shareholders through both the general securities account and the customercredit transaction guarantee securities account of a securities company
□ Applicable√ N/A
Unit: Share
| Shares held by top 10 shareholders | ||||||||
| Shareholder (Full name) | Change during the reporting period | Balance of shares held as of the end of the reporting period | Percentage (%) | Number of non-tradable shares held | Number of non-tradable shares held, including the shares lent out under the refinancing arrangement | Shares pledged, marked, or frozen | Shareholder nature | |
| Share status | Quantity | |||||||
| Shenzhen Appotronics Holdings Limited | 0 | 79,762,679 | 17.45 | 0 | 0 | None | 0 | Domestic non-state-owned corporation |
| Shenzhen Yuanshi Laser Industrial Investment Consulting Partnership (LP) | 0 | 24,139,500 | 5.28 | 0 | 0 | None | 0 | Domestic non-state-owned corporation |
| Nantong Strait Appotronics Investment Partnership (LP) | 0 | 22,780,329 | 4.98 | 0 | 0 | None | 0 | Domestic non-state-owned corporation |
| Shenzhen Appotronics Daye Investment Partnership (LP) | 0 | 20,430,250 | 4.47 | 0 | 0 | None | 0 | Domestic non-state-owned corporation |
| Shenzhen Appotronics Hongye Investment Partnership (LP) | 0 | 15,662,374 | 3.43 | 0 | 0 | None | 0 | Domestic non-state-owned corporation |
| Shenzhen Jinleijing Investment Limited Partnership (LP) | 0 | 12,353,106 | 2.70 | 0 | 0 | None | 0 | Domestic non-state-owned corporation |
| Shenzhen Appotronics Chengye Consulting Partnership (LP) | 0 | 10,394,846 | 2.27 | 0 | 0 | None | 0 | Domestic non-state-owned corporation | |||
| Bank of China Co., Ltd. - Stable Income Bond Securities Investment Fund of E Fund | -222,857 | 9,710,544 | 2.12 | 0 | 0 | None | 0 | Others | |||
| Shenzhen Guochuang Chenggu Capital Management Co., Ltd. - Shenzhen Chengguhui Equity Investment Partnership (LP) | +428,600 | 8,114,369 | 1.78 | 0 | 0 | None | 0 | Domestic non-state-owned corporation | |||
| Industrial Bank Co., Ltd. - Tianhong Yongli Bond Securities Investment Fund | +497,077 | 7,540,688 | 1.65 | 0 | 0 | None | 0 | Others | |||
| Shares held by top 10 holders of tradable shares | |||||||||||
| Shareholder | Number of tradable shares held | Type and number of shares | |||||||||
| Category | 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 | ||||||||
| Shenzhen Appotronics Chengye Consulting Partnership (LP) | 10,394,846 | RMB-denominated ordinary share | 10,394,846 |
| Bank of China Co., Ltd. - Stable Income Bond Securities Investment Fund of E Fund | 9,710,544 | RMB-denominated ordinary share | 9,710,544 |
| Shenzhen Guochuang Chenggu Capital Management Co., Ltd. - Shenzhen Chengguhui Equity Investment Partnership (LP) | 8,114,369 | RMB-denominated ordinary share | 8,114,369 |
| Industrial Bank Co., Ltd. - Tianhong Yongli Bond Securities Investment Fund | 7,540,688 | RMB-denominated ordinary share | 7,540,688 |
| 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 shareholders above | N/A | ||
| Affiliates or concert parties among the shareholders stated above | 1. As of June 30, 2023, the following entities in top 10 shareholders of the Company constituted persons acting in concert: 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); 2. Except for the above, we are 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 rights have 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
Statement of top 10 holders of domestic depository receipts as of the end of the reporting period
□ Applicable√ N/A
Number of non-tradable depository receipts held by top 10 holders and lock-up period
□ Applicable√ N/A
(III) Statement of top 10 shareholders by number of votes held as of the end of the reporting
period
□ Applicable√ N/A
(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 technical
staff 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 staffduring the 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 & General Manager | 3,500,000 | 0 | 0 | 0 | 3,500,000 |
| ZHANG Wei | Director, Deputy General Manager | 700,000 | 0 | 100,000 | 0 | 700,000 |
| WANG Yingxia | Director, Financial Director | 470,560 | 0 | 50,000 | 0 | 470,560 |
| CHEN Yasha | Board Secretary | 432,750 | 0 | 75,000 | 0 | 432,750 |
| YU Xin | Key technical staff | 1,070,000 | 0 | 100,000 | 0 | 1,070,000 |
| HU Fei | Key technical staff | 540,000 | 0 | 75,000 | 0 | 540,000 |
| WANG Lin | Key technical staff | 630,000 | 0 | 75,000 | 0 | 630,000 |
| WANG Zeqin | Key technical staff | 632,000 | 0 | 75,000 | 0 | 632,000 |
| GUO Zuqiang | Key technical staff | 626,000 | 0 | 75,000 | 0 | 626,000 |
| Total | - | 8,601,310 | 0 | 625,000 | 0 | 8,601,310 |
(III) Other information
□ Applicable√ N/A
IV. Changes in the controlling shareholder or actual controller
□ Applicable√ N/A
V. Implementation of and changes in arrangements relating to depository receipts during thereporting period
□ Applicable√ N/A
VI. Shares with special voting rights
□ Applicable√ N/A
Section VIII Preferred Shares
□ Applicable√ N/A
Section IX BondsI. Enterprise bonds, corporate bonds and non-financial corporate debt financing instruments
□ Applicable√ N/A
II. Convertible corporate bonds
□ Applicable√ N/A
Section X Financial ReportI. Auditor’s report
□ Applicable√ N/A
II. Financial statements
Consolidated Balance Sheet
June 30, 2023Prepared by: Appotronics Corporation Limited
Unit: Yuan Currency: RMB
| Item | Note | June 30, 2023 | December 31, 2022 |
| Current Assets: | |||
| Monetary funds | VII. 1 | 1,279,193,927.48 | 1,355,882,208.63 |
| Balances with clearing agencies | |||
| Placements with banks and other financial institutions | |||
| Held-for-trading financial assets | VII. 2 | 564,877,200.00 | 352,880,000.00 |
| Derivative financial assets | |||
| Notes receivable | VII. 4 | 3,404,025.55 | 2,234,687.77 |
| Accounts receivable | VII. 5 | 206,727,257.21 | 208,260,235.79 |
| Receivables financing | VII. 6 | 15,223,418.33 | 4,279,041.00 |
| Prepayments | VII. 7 | 34,764,381.68 | 48,445,976.86 |
| Premiums receivable | |||
| Amounts receivable under reinsurance contracts | |||
| Reinsurer’s share of insurance contract reserves | |||
| Other receivables | VII. 8 | 26,973,222.84 | 26,331,721.55 |
| Including: Interest receivable | |||
| Dividend receivable | 14,307,084.00 | 13,789,908.00 | |
| Financial assets purchased under resale agreements | |||
| Inventories | VII. 9 | 757,719,004.42 | 865,639,961.79 |
| Contract assets | VII. 10 | 1,608,301.56 | 1,061,581.35 |
| Assets held for sale | |||
| Non-current assets due within 1 year | VII. 12 | 28,306,652.31 | 13,431,554.82 |
| Other current assets | VII. 13 | 95,956,187.10 | 106,502,611.79 |
| Total current assets | 3,014,753,578.48 | 2,984,949,581.35 | |
| Non-current Assets: | |||
| Loans and advances | |||
| Debt investments | |||
| Other debt investments | |||
| Long-term receivables | VII. 16 | 22,198,629.19 | 11,524,193.80 |
| Long-term equity investment | VII. 17 | 156,523,146.05 | 162,394,917.57 |
| Investment in other equity instruments | VII. 18 | 7,075,419.38 | 7,075,419.38 |
| Other non-current financial assets | |||
| Investment property | |||
| Fixed assets | VII. 21 | 379,962,412.96 | 427,539,718.53 |
| Construction in progress | VII. 22 | 314,382,210.87 | 278,978,057.73 |
| Productive biological assets | |||
| Oil and gas assets | |||
| Right-of-use assets | VII. 25 | 55,804,553.57 | 62,255,670.29 |
| Intangible assets | VII. 26 | 285,586,197.40 | 290,341,693.08 |
| Development expenditure | |||
| Goodwill | |||
| Long-term prepaid expenses | VII. 29 | 7,285,477.87 | 5,990,984.03 |
| Deferred tax assets | VII. 30 | 78,069,270.62 | 89,730,936.02 |
| Other non-current assets | VII. 31 | 18,633,790.53 | 12,569,088.37 |
| Total non-current assets | 1,325,521,108.44 | 1,348,400,678.80 | |
| Total assets | 4,340,274,686.92 | 4,333,350,260.15 | |
| Current Liabilities: | |||
| Short-term borrowings | VII. 32 | 129,604,426.40 | 129,589,634.03 |
| Loans from the central bank | |||
| Taking from banks and other financial institutions | |||
| Held-for-trading financial liabilities | |||
| Derivative financial liabilities | |||
| Notes payable | VII. 35 | 80,254,013.57 | 201,299,388.57 |
| Accounts payable | VII. 36 | 275,507,953.57 | 276,845,321.28 |
| Advance from customers | VII. 37 | 99,404,605.97 | 113,834,728.10 |
| Contract liabilities | VII. 38 | 39,465,849.54 | 37,285,920.43 |
| 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 | 29,744,716.45 | 58,470,960.55 |
| Taxes payable | VII. 40 | 6,453,066.16 | 8,272,768.90 |
| Other payables | VII. 41 | 119,907,648.52 | 56,662,357.08 |
| Including: Interest payable | |||
| Dividend payable | 797,774.22 | ||
| Fees and commissions payable | |||
| Amounts payable under reinsurance contracts | |||
| Liabilities held for sale | |||
| Non-current liabilities due within 1 year | VII. 43 | 178,360,640.39 | 178,031,817.37 |
| Other current liabilities | VII. 44 | 9,799,529.40 | 28,383,608.37 |
| Total current liabilities | 968,502,449.97 | 1,088,676,504.68 | |
| Non-current Liabilities: | |||
| Insurance contract reserves | |||
| Long-term borrowings | VII. 45 | 531,486,901.70 | 403,720,542.45 |
| Bonds payable | |||
| Including: Preferred shares | |||
| Perpetual bonds | |||
| Lease liabilities | VII. 47 | 27,260,832.49 | 34,319,284.23 |
| Long-term payables | |||
| Long-term employee benefits payable | |||
| Provisions | VII. 50 | 53,463,551.36 | 56,463,882.87 |
| Deferred income | VII. 51 | 5,112,246.23 | 8,651,422.26 |
| Deferred tax liabilities | |||
| Other non-current liabilities | |||
| Total non-current liabilities | 617,323,531.78 | 503,155,131.81 | |
| Total liabilities | 1,585,825,981.75 | 1,591,831,636.49 | |
| Owners’ Equity (Shareholders’ Equity): | |||
| Paid-in capital (or share capital) | VII. 53 | 457,107,538.00 | 457,107,538.00 |
| Other equity instruments |
| Including: Preferred shares | |||
| Perpetual bonds | |||
| Capital reserve | VII. 55 | 1,551,466,365.12 | 1,530,752,116.04 |
| Less: Treasury shares | VII. 56 | 19,377,297.59 | 19,377,297.59 |
| Other comprehensive income | VII. 57 | 12,451,180.91 | 5,736,897.41 |
| Special reserve | |||
| Surplus reserve | VII. 59 | 75,519,782.06 | 75,519,782.06 |
| General risk reserve | |||
| Retained profits | VII. 60 | 648,203,885.57 | 597,924,451.67 |
| Total owners’ (or shareholders’) equity attributable to owners of the parent company | 2,725,371,454.07 | 2,647,663,487.59 | |
| Minority interests | 29,077,251.10 | 93,855,136.07 | |
| Total owners’ (or shareholders’) equity | 2,754,448,705.17 | 2,741,518,623.66 | |
| Total liabilities and owners’ (or shareholders’) equity | 4,340,274,686.92 | 4,333,350,260.15 |
Principal of the Company: LI Yi Chief Accountant: WANG Yingxia Person in Charge of theAccounting Body: WANG Yingxia
Balance Sheet of the Parent Company
June 30, 2023Prepared by: Appotronics Corporation Limited
Unit: Yuan Currency: RMB
| Item | Note | June 30, 2023 | December 31, 2022 |
| Current Assets: | |||
| Monetary funds | 708,529,158.47 | 675,429,827.76 | |
| Held-for-trading financial assets | 556,410,000.00 | 352,880,000.00 | |
| Derivative financial assets | |||
| Notes receivable | 3,404,025.55 | 2,234,687.77 | |
| Accounts receivable | XVII. 1 | 640,188,219.65 | 688,004,828.29 |
| Receivables financing | 8,441,068.33 | 2,399,041.00 | |
| Prepayments | 8,174,839.77 | 11,009,592.85 | |
| Other receivables | XVII. 2 | 14,803,374.55 | 7,556,623.71 |
| Including: Interest receivable | |||
| Dividend receivable | |||
| Inventories | 342,827,948.28 | 390,906,125.18 | |
| Contract assets | 1,608,301.56 | 1,061,581.35 | |
| Assets held for sale | |||
| Non-current assets due within 1 year | 1,388,837.66 | 1,334,808.66 | |
| Other current assets | 25,403,663.47 | 27,531,860.98 | |
| Total current assets | 2,311,179,437.29 | 2,160,348,977.55 | |
| Non-current Assets: | |||
| Debt investments | |||
| Other debt investments | |||
| Long-term receivables | 993,013.56 | 944,108.40 | |
| Long-term equity investment | XVII. 3 | 466,035,120.86 | 450,239,347.45 |
| Investment in other equity instruments | 7,075,419.38 | 7,075,419.38 | |
| Other non-current financial assets | |||
| Investment property | |||
| Fixed assets | 64,584,608.06 | 66,271,459.60 | |
| Construction in progress | 309,377,852.19 | 270,837,599.21 | |
| Productive biological assets |
| Oil and gas assets | |||
| Right-of-use assets | 41,175,572.84 | 52,738,418.54 | |
| Intangible assets | 288,593,244.60 | 294,108,453.73 | |
| Development expenditure | |||
| Goodwill | |||
| Long-term prepaid expenses | 1,136,835.80 | 487,991.29 | |
| Deferred tax assets | 17,162,782.96 | 20,220,930.66 | |
| Other non-current assets | 16,605,003.36 | 9,952,305.78 | |
| Total non-current assets | 1,212,739,453.61 | 1,172,876,034.04 | |
| Total assets | 3,523,918,890.90 | 3,333,225,011.59 | |
| Current Liabilities: | |||
| Short-term borrowings | 60,038,850.01 | 60,043,166.67 | |
| Held-for-trading financial liabilities | |||
| Derivative financial liabilities | |||
| Notes payable | 33,608,729.87 | 58,301,159.76 | |
| Accounts payable | 289,751,340.58 | 275,547,785.20 | |
| Advance from customers | |||
| Contract liabilities | 17,901,395.11 | 19,945,270.00 | |
| Employee benefits payable | 16,396,021.22 | 35,920,277.61 | |
| Taxes payable | 1,883,828.76 | 5,339,271.71 | |
| Other payables | 77,053,825.14 | 9,722,655.99 | |
| Including: Interest payable | |||
| Dividend payable | 797,774.22 | ||
| Liabilities held for sale | |||
| Non-current liabilities due within 1 year | 50,590,576.11 | 24,463,018.64 | |
| Other current liabilities | 1,429,595.96 | 2,666,327.90 | |
| Total current liabilities | 548,654,162.76 | 491,948,933.48 | |
| Non-current Liabilities: | |||
| Long-term borrowings | 249,181,118.32 | 148,087,667.43 | |
| Bonds payable | |||
| Including: Preferred shares | |||
| Perpetual bonds | |||
| Lease liabilities | 19,976,948.15 | 29,114,281.86 | |
| Long-term payables | |||
| Long-term employee benefits payable | |||
| Provisions | 22,959,255.63 | 24,939,050.33 | |
| Deferred income | 2,657,700.76 | 5,630,959.06 | |
| Deferred tax liabilities | |||
| Other non-current liabilities | |||
| Total non-current liabilities | 294,775,022.86 | 207,771,958.68 | |
| Total liabilities | 843,429,185.62 | 699,720,892.16 | |
| Owners’ Equity (Shareholders’ Equity): | |||
| Paid-in capital (or share capital) | 457,107,538.00 | 457,107,538.00 | |
| Other equity instruments | |||
| Including: Preferred shares | |||
| Perpetual bonds | |||
| Capital reserve | 1,561,226,098.34 | 1,541,789,874.63 | |
| Less: Treasury shares | 19,377,297.59 | 19,377,297.59 | |
| Other comprehensive income | |||
| Special reserve | |||
| Surplus reserve | 74,242,241.33 | 74,242,241.33 | |
| Retained profits | 607,291,125.20 | 579,741,763.06 | |
| Total owners’ (or shareholders’) equity | 2,680,489,705.28 | 2,633,504,119.43 | |
| Total liabilities and owners’ (or | 3,523,918,890.90 | 3,333,225,011.59 |
shareholders’) equity
Principal of the Company: LI Yi Chief Accountant: WANG Yingxia Person in Charge of theAccounting Body: WANG Yingxia
Consolidated Income Statement
Jan. - Jun. 2023
Unit: Yuan Currency: RMB
| Item | Note | Half year of 2023 | Half year of 2022 |
| I. Total operating income | 1,073,249,037.75 | 1,269,322,202.11 | |
| Including: Operating income | VII. 61 | 1,073,249,037.75 | 1,269,322,202.11 |
| Interest income | |||
| Premiums earned | |||
| Fee and commission income | |||
| II. Total operating costs | 1,012,145,838.42 | 1,227,121,118.16 | |
| Including: Operating costs | VII. 61 | 668,659,467.49 | 884,560,607.88 |
| 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 surcharges | VII. 62 | 4,005,751.53 | 4,636,401.10 |
| Selling expenses | VII. 63 | 143,399,660.02 | 120,302,361.36 |
| Administrative expenses | VII. 64 | 86,696,223.82 | 106,015,842.36 |
| R&D expenses | VII. 65 | 126,406,142.12 | 114,959,786.37 |
| Financial expenses | VII. 66 | -17,021,406.56 | -3,353,880.91 |
| Including: Interest expense | 7,061,642.05 | 12,510,421.43 | |
| Interest income | 15,604,073.30 | 6,740,942.87 | |
| Add: Other income | VII. 67 | 23,608,983.31 | 21,565,810.43 |
| Investment income (loss is indicated by “-”) | VII. 68 | -2,806,106.20 | -4,567,473.71 |
| Including: Income from investments in associates and joint ventures | -8,071,814.75 | -10,562,840.53 | |
| 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 | -1,634,000.00 | |
| Losses of credit impairment (loss is indicated by “-”) | VII. 71 | -3,513,083.07 | 1,393,164.79 |
| Impairment losses of assets (loss is indicated by “-”) | VII. 72 | -29,013,931.74 | -19,822,363.99 |
| Gains from disposal of assets (loss is indicated by “-”) | VII. 73 | 15,262.15 | 17,213.16 |
| III. Operating profit (loss is indicated by “-”) | 49,394,323.78 | 39,153,434.63 | |
| Add: Non-operating income | VII. 74 | 9,424,347.83 | 167,888.31 |
| Less: Non-operating expenses | VII. 75 | 641,261.92 | 1,511,909.47 |
| IV. Total profits (total losses are indicated by | 58,177,409.69 | 37,809,413.47 |
| “-”) | |||
| Less: Income tax expenses | VII. 76 | 18,649,943.64 | 19,269,471.17 |
| V. Net profits (net losses are indicated by “-”) | 39,527,466.05 | 18,539,942.30 | |
| (I) Categorized by the continuity of operation | |||
| 1. Net profits from continuing operations (net losses are indicated by “-”) | 39,527,466.05 | 18,539,942.30 | |
| 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 “-”) | 74,914,640.95 | 45,966,481.10 | |
| 2. Profits or losses attributable to minority shareholders (net losses are indicated by “-”) | -35,387,174.90 | -27,426,538.80 | |
| VI. Other comprehensive income, net of tax | VII. 77 | 5,158,805.71 | 13,583,493.02 |
| (I) Other comprehensive income that can be attributable to owners of the parent company, net of tax | 6,714,283.50 | 13,734,264.61 | |
| 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 | 6,714,283.50 | 13,734,264.61 | |
| (1) Other comprehensive income that will be reclassified to profit or loss under the equity method | -4,176,328.87 | -9,668,892.26 | |
| (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 | 10,890,612.37 | 23,403,156.87 | |
| (7) Others | |||
| (II) Other comprehensive income that can be attributable to minority shareholders, net of tax | -1,555,477.79 | -150,771.59 | |
| VII. Total comprehensive income | 44,686,271.76 | 32,123,435.32 | |
| (I) Total comprehensive income that can be attributable to owners of the parent company | 81,628,924.45 | 59,700,745.71 | |
| (II) Total comprehensive income that can be attributable to minority shareholders | -36,942,652.69 | -27,577,310.39 | |
| VIII. Earnings per share: | |||
| (I) Basic earnings per share (RMB/share) | 0.16 | 0.10 | |
| (II) Diluted earnings per share (RMB/share) | 0.16 | 0.10 |
In the event of business combinations involving enterprises under common control, the net profitsrealized prior to the combination by the party being absorbed is: RMB 0.00, and the net profits realizedin the last period by the party being absorbed is: RMB 0.00.Principal of the Company: LI Yi Chief Accountant: WANG Yingxia Person in Charge of theAccounting Body: WANG Yingxia
Income Statement of the Parent Company
Jan. - Jun. 2023
Unit: Yuan Currency: RMB
| Item | Note | Half year of 2023 | Half year of 2022 |
| I. Operating income | XVII. 4 | 542,956,800.34 | 649,645,354.34 |
| Less: Operating costs | XVII. 4 | 368,571,473.83 | 432,684,792.22 |
| Taxes and surcharges | 3,199,879.01 | 2,709,645.68 | |
| Selling expenses | 37,056,481.71 | 34,971,927.98 | |
| Administrative expenses | 46,709,472.09 | 70,191,714.62 | |
| R&D expenses | 70,859,871.98 | 74,661,621.25 | |
| Financial expenses | -16,034,801.70 | -12,346,217.67 | |
| Including: Interest expense | 3,133,969.39 | 1,758,702.76 | |
| Interest income | 14,313,472.46 | 9,044,664.08 | |
| Add: Other income | 19,359,728.30 | 12,418,751.65 | |
| Investment income (loss is indicated by “-”) | XVII. 5 | 12,717,708.55 | 5,884,922.38 |
| 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 “-”) | -1,634,000.00 | ||
| Losses of credit impairment (loss is indicated by “-”) | -2,891,569.80 | -970,107.59 | |
| Impairment losses of assets (loss is indicated by “-”) | -7,961,985.67 | -7,784,985.64 | |
| Gains from disposal of assets (loss is indicated by “-”) | 12,718.43 | ||
| II. Operating profit (loss is indicated by “-”) | 53,831,023.23 | 54,686,451.06 | |
| Add: Non-operating income | 362,544.72 | 94,307.77 | |
| Less: Non-operating expenses | 216,230.87 | 1,451,707.15 | |
| III. Total profits (total losses are indicated by “-”) | 53,977,337.08 | 53,329,051.68 | |
| Less: Income tax expenses | 1,792,767.89 | 11,694,579.04 | |
| IV. Net profits (net losses are indicated by “-”) | 52,184,569.19 | 41,634,472.64 | |
| (I) Net profits from continuing operations (net losses are indicated by “-”) | 52,184,569.19 | 41,634,472.64 | |
| (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 | 52,184,569.19 | 41,634,472.64 | |
| VII. Earnings per share: | |||
| (I) Basic earnings per share (RMB/share) | |||
| (II) Diluted earnings per share (RMB/share) |
Principal of the Company: LI Yi Chief Accountant: WANG Yingxia Person in Charge of theAccounting Body: WANG Yingxia
Consolidated Cash Flow Statement
Jan. - Jun. 2023
Unit: Yuan Currency: RMB
| Item | Note | Half year of 2023 | Half year of 2022 |
| I. Cash Flows from Operating Activities: | |||
| Cash receipts from the sale of goods and the rendering of services | 1,117,055,783.68 | 1,429,234,114.59 | |
| 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 | 4,435,896.68 | 3,189,929.64 | |
| Other cash receipts relating to operating activities | VII. 78 | 90,837,327.64 | 34,395,802.37 |
| Sub-total of cash inflows from operating | 1,212,329,008.00 | 1,466,819,846.60 |
| activities | |||
| Cash payments for goods purchased and services received | 678,514,829.90 | 1,065,198,956.89 | |
| 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 | 235,611,354.36 | 226,213,079.42 | |
| Payments of various types of taxes | 30,029,161.72 | 47,664,436.15 | |
| Other cash payments relating to operating activities | VII. 78 | 153,434,829.89 | 206,296,733.81 |
| Sub-total of cash outflows from operating activities | 1,097,590,175.87 | 1,545,373,206.27 | |
| Net cash flow from operating activities | 114,738,832.13 | -78,553,359.67 | |
| II. Cash Flows from Investing Activities: | |||
| Cash receipts from disposals and recovery of investments | 765,000,000.00 | 1,047,763,409.68 | |
| Cash receipts from investment income | 5,265,708.55 | 5,995,366.82 | |
| Net cash receipts from disposals of fixed assets, intangible assets and other long-term assets | 30,975.00 | 2,210.00 | |
| 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 | 770,296,683.55 | 1,053,760,986.50 | |
| Cash payments to acquire or construct fixed assets, intangible assets and other long-term assets | 41,659,342.63 | 53,593,529.31 | |
| Cash payments to acquire investments | 976,816,480.00 | 995,000,000.00 | |
| Net increase in pledged loans receivables | |||
| Net cash payments for acquisitions of subsidiaries and other business units | 11,831,365.16 | ||
| Other cash payments relating to investing activities | |||
| Sub-total of cash outflows from investing activities | 1,030,307,187.79 | 1,048,593,529.31 | |
| Net cash flows from investment activities | -260,010,504.24 | 5,167,457.19 | |
| III. Cash Flows from Financing Activities: | |||
| Cash receipts from capital contributions | 50,609,959.00 | 8,866,332.86 | |
| Including: Cash receipts from capital contributions from minority shareholders of subsidiaries |
| Cash receipts from borrowings | 265,000,000.00 | 260,569,353.56 | |
| Other cash receipts relating to financing activities | |||
| Sub-total of cash inflows from financing activities | 315,609,959.00 | 269,435,686.42 | |
| Cash repayments of borrowings | 137,959,994.00 | 70,016,183.00 | |
| Cash payments for distribution of dividends or profits or settlement of interest expenses | 49,596,180.44 | 57,206,348.66 | |
| 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 | 17,407,047.01 | 17,704,289.67 |
| Sub-total of cash outflows from financing activities | 204,963,221.45 | 144,926,821.33 | |
| Net cash flows from financing activities | 110,646,737.55 | 124,508,865.09 | |
| IV. Effect of Foreign Exchange Rate Changes on Cash and Cash Equivalents | 8,274,666.00 | 9,162,860.18 | |
| V. Net Increase in Cash and Cash Equivalents | -26,350,268.55 | 60,285,822.80 | |
| Add: Opening balance of cash and cash equivalents | 1,254,582,403.12 | 891,195,166.73 | |
| VI. Closing Balance of Cash and Cash Equivalents | 1,228,232,134.57 | 951,480,989.53 |
Principal of the Company: LI Yi Chief Accountant: WANG Yingxia Person in Charge of theAccounting Body: WANG Yingxia
Cash Flow Statement of the Parent Company
Jan. - Jun. 2023
Unit: Yuan Currency: RMB
| Item | Note | Half year of 2023 | Half year of 2022 |
| I. Cash Flows from Operating Activities: | |||
| Cash receipts from the sale of goods and the rendering of services | 631,177,814.33 | 682,350,809.37 | |
| Receipts of tax refunds | 1,915,638.25 | 329,661.66 | |
| Other cash receipts relating to operating activities | 34,660,128.09 | 42,069,540.58 | |
| Sub-total of cash inflows from operating activities | 667,753,580.67 | 724,750,011.61 | |
| Cash payments for goods purchased and services received | 345,900,092.57 | 519,893,495.98 | |
| Cash payments to and on behalf of employees | 147,052,438.69 | 136,476,115.67 | |
| Payments of various types of taxes | 12,354,746.49 | 25,813,452.99 | |
| Other cash payments relating to operating activities | 36,687,871.73 | 51,239,349.11 | |
| Sub-total of cash outflows from operating activities | 541,995,149.48 | 733,422,413.75 | |
| Net cash flow from operating activities | 125,758,431.19 | -8,672,402.14 | |
| II. Cash Flows from Investing Activities: | |||
| Cash receipts from disposals and recovery of investments | 765,000,000.00 | 877,000,000.00 | |
| Cash receipts from investment income | 12,717,708.55 | 5,884,922.38 | |
| Net cash receipts from disposals of fixed assets, intangible assets and other long-term | 24,975.00 |
| assets | |||
| 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 | 777,742,683.55 | 882,884,922.38 | |
| Cash payments to acquire or construct fixed assets, intangible assets and other long-term assets | 35,226,743.48 | 46,538,785.01 | |
| Cash payments to acquire investments | 976,818,280.00 | 935,000,000.00 | |
| 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 | 1,012,045,023.48 | 981,538,785.01 | |
| Net cash flows from investment activities | -234,302,339.93 | -98,653,862.63 | |
| III. Cash Flows from Financing Activities: | |||
| Cash receipts from capital contributions | 50,609,959.00 | 8,866,332.86 | |
| Cash receipts from borrowings | 135,000,000.00 | 80,569,353.56 | |
| Other cash receipts relating to financing activities | |||
| Sub-total of cash inflows from financing activities | 185,609,959.00 | 89,435,686.42 | |
| Cash repayments of borrowings | 5,750,000.00 | 500,000.00 | |
| Cash payments for distribution of dividends or profits or settlement of interest expenses | 29,004,483.78 | 46,860,137.39 | |
| Other cash payments relating to financing activities | 12,747,615.67 | 14,585,132.93 | |
| Sub-total of cash outflows from financing activities | 47,502,099.45 | 61,945,270.32 | |
| Net cash flows from financing activities | 138,107,859.55 | 27,490,416.10 | |
| IV. Effect of Foreign Exchange Rate Changes on Cash and Cash Equivalents | 3,294,539.64 | 1,342,904.11 | |
| V. Net Increase in Cash and Cash Equivalents | 32,858,490.45 | -78,492,944.56 | |
| Add: Opening balance of cash and cash equivalents | 634,972,775.32 | 483,223,615.33 | |
| VI. Closing Balance of Cash and Cash Equivalents | 667,831,265.77 | 404,730,670.77 |
Principal of the Company: LI Yi Chief Accountant: WANG Yingxia Person in Charge of theAccounting Body: WANG Yingxia
Consolidated Statement of Changes in Owners’ Equity
Jan. - Jun. 2023
Unit: Yuan Currency: RMB
| Item | Half year of 2023 | ||||||||||||||
| 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 prior year | 457,107,538.00 | 1,530,752,116.04 | 19,377,297.59 | 5,736,897.41 | 75,519,782.06 | 597,924,451.67 | 2,647,663,487.59 | 93,855,136.07 | 2,741,518,623.66 | ||||||
| Add: Changes in accounting policies | |||||||||||||||
| Corrections of prior period errors | |||||||||||||||
| Business combination involving enterprises under common control | |||||||||||||||
| Others | |||||||||||||||
| II. Opening balance of the current year | 457,107,538.00 | 1,530,752,116.04 | 19,377,297.59 | 5,736,897.41 | 75,519,782.06 | 597,924,451.67 | 2,647,663,487.59 | 93,855,136.07 | 2,741,518,623.66 | ||||||
| III. Changes for the year (decrease is indicated by “-”) | 20,714,249.08 | 6,714,283.50 | 50,279,433.90 | 77,707,966.48 | -64,777,884.97 | 12,930,081.51 | |||||||||
| (I) Total comprehensiv | 6,714,283.50 | 74,914,640.95 | 81,628,924.45 | -36,942,652 | 44,686,271.76 | ||||||||||
| e income | .69 | ||||||||||||||
| (II) Owners’ contributions and reduction in capital | 20,714,249.08 | 20,714,249.08 | -16,795,232.28 | 3,919,016.80 | |||||||||||
| 1. Ordinary shares contributed by owners | |||||||||||||||
| 2. Capital contribution from holders of other equity instruments | |||||||||||||||
| 3. Share-based payment recognized in owners’ equity | 20,442,747.19 | 20,442,747.19 | 3,204,207.49 | 23,646,954.68 | |||||||||||
| 4. Others | 271,501.89 | 271,501.89 | -19,999,439.77 | -19,727,937.88 | |||||||||||
| (III) Profit distribution | -24,635,207.05 | -24,635,207.05 | -11,040,000.00 | -35,675,207.05 | |||||||||||
| 1. Transfer to surplus reserve | |||||||||||||||
| 2. Transfer to general risk reserve | |||||||||||||||
| 3. Distributions to owners (or shareholders) | -24,635,207.05 | -24,635,207.05 | -11,040,000.00 | -35,675,207.05 | |||||||||||
| 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 current period | |||||||||||||||
| (VI) Others | |||||||||||||||
| IV. Closing balance of the current year | 457,107,538.00 | 1,551,466,365.12 | 19,377,297.59 | 12,451,180.91 | 75,519,782.06 | 648,203,885.57 | 2,725,371,454.07 | 29,077,251.10 | 2,754,448,705.17 |
| Item | Half year of 2022 | ||||||||||||||
| 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 prior year | 452,756,901.00 | 1,400,605,136.65 | -16,840,512.60 | 56,265,868.31 | 545,277,188.08 | 2,438,064,581.44 | 185,172,097.94 | 2,623,236,679.38 | |||||||
| Add: Changes in accounting policies | |||||||||||||||
| Corrections of prior period errors | |||||||||||||||
| Business combination involving enterprises under common control | |||||||||||||||
| Others | |||||||||||||||
| II. Opening balance of the current year | 452,756,901.00 | 1,400,605,136.65 | -16,840,512.60 | 56,265,868.31 | 545,277,188.08 | 2,438,064,581.44 | 185,172,097.94 | 2,623,236,679.38 | |||||||
| III. Changes for the year (decrease is indicated by “-”) | 35,464,460.91 | 3,211,260.13 | 13,734,264.61 | -1,573,115.33 | 44,414,350.06 | -24,943,287.15 | 19,471,062.91 | ||||||||
| (I) Total comprehensive income | 13,734,264.61 | 45,966,481.10 | 59,700,745.71 | -27,577,310.39 | 32,123,435.32 | ||||||||||
| (II) Owners’ contributions and reduction in capital | 35,464,460.91 | 3,211,260.13 | 32,253,200.78 | 2,634,023.24 | 34,887,224.02 | ||||||||||
| 1. Ordinary shares contributed by owners | 3,211,260.13 | -3,211,260.13 | -3,211,260.13 | ||||||||||||
| 2. Capital contribution from holders of other equity instruments | |||||||||||||||
| 3. Share-based payment recognized in owners’ equity | 35,464,460.91 | 35,464,460.91 | 2,634,023.24 | 38,098,484.15 | |||||||||||
| 4. Others | |||||||||||||||
| (III) Profit distribution | -47,539,596.43 | -47,539,596.43 | -47,539,596.43 | ||||||||||||
| 1. Transfer to surplus reserve | |||||||||||||||
| 2. Transfer to general risk reserve | |||||||||||||||
| 3. Distributions to owners (or shareholders) | -47,539,596.43 | -47,539,596.43 | -47,539,596.43 | ||||||||||||
| 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 current period | |||||||||||||||
| (VI) Others | |||||||||||||||
| IV. Closing balance of the current year | 452,756,901.00 | 1,436,069,597.56 | 3,211,260.13 | -3,106,247.99 | 56,265,868.31 | 543,704,072.75 | 2,482,478,931.50 | 160,228,810.79 | 2,642,707,742.29 |
Principal of the Company: LI Yi Chief Accountant: WANG Yingxia Person in Charge of the Accounting Body: WANG Yingxia
Statement of Changes in Owners’ Equity of the Parent Company
Jan. - Jun. 2023
Unit: Yuan Currency: RMB
| Item | Half year of 2023 | ||||||||||
| 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 prior year | 457,107,538.00 | 1,541,789,874.63 | 19,377,297.59 | 74,242,241.33 | 579,741,763.06 | 2,633,504,119.43 | |||||
| Add: Changes in accounting policies | |||||||||||
| Corrections of prior period errors | |||||||||||
| Others | |||||||||||
| II. Opening balance of the current year | 457,107,538.00 | 1,541,789,874.63 | 19,377,297.59 | 74,242,241.33 | 579,741,763.06 | 2,633,504,119.43 | |||||
| III. Changes for the year (decrease is indicated by “-”) | 19,436,223.71 | 27,549,362.14 | 46,985,585.85 | ||||||||
| (I) Total comprehensive income | 52,184,569.19 | 52,184,569.19 | |||||||||
| (II) Owners’ contributions and reduction in capital | 19,436,223.71 | 19,436,223.71 | |||||||||
| 1. Ordinary shares contributed by owners | |||||||||||
| 2. Capital contribution from holders of other equity instruments | |||||||||||
| 3. Share-based payment recognized in owners’ equity | 19,436,223.71 | 19,436,223.71 | |||||||||
| 4. Others | |||||||||||
| (III) Profit distribution | -24,635,207.05 | -24,635,207.05 | |||||||||
| 1. Transfer to surplus reserve | |||||||||||
| 2. Distributions to owners (or shareholders) | -24,635,207.05 | -24,635,207.05 | |||||||||
| 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 current period | |||||||||||
| (VI) Others | |||||||||||
| IV. Closing balance of the current year | 457,107,538.00 | 1,561,226,098.34 | 19,377,297.59 | 74,242,241.33 | 607,291,125.20 | 2,680,489,705.28 |
| Item | Half year of 2022 | ||||||||||
| 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 prior year | 452,756,901.00 | 1,410,150,134.25 | 54,988,327.58 | 453,996,135.72 | 2,371,891,498.55 | ||||||
| Add: Changes in accounting policies | |||||||||||
| Corrections of prior period errors | |||||||||||
| Others | |||||||||||
| II. Opening balance of the current year | 452,756,901.00 | 1,410,150,134.25 | 54,988,327.58 | 453,996,135.72 | 2,371,891,498.55 | ||||||
| III. Changes for the year (decrease is indicated by “-”) | 38,311,779.65 | 3,211,260.13 | -5,905,123.7 | 29,195,395.73 | |||||||
| 9 | |||||||||||
| (I) Total comprehensive income | 41,634,472.64 | 41,634,472.64 | |||||||||
| (II) Owners’ contributions and reduction in capital | 38,311,779.65 | 3,211,260.13 | 35,100,519.52 | ||||||||
| 1. Ordinary shares contributed by owners | 3,211,260.13 | -3,211,260.13 | |||||||||
| 2. Capital contribution from holders of other equity instruments | |||||||||||
| 3. Share-based payment recognized in owners’ equity | 38,311,779.65 | 38,311,779.65 | |||||||||
| 4. Others | |||||||||||
| (III) Profit distribution | -47,539,596.43 | -47,539,596.43 | |||||||||
| 1. Transfer to surplus reserve | |||||||||||
| 2. Distributions to owners (or shareholders) | -47,539,596.43 | -47,539,596.43 | |||||||||
| 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 current period |
| (VI) Others | |||||||||||
| IV. Closing balance of the current year | 452,756,901.00 | 1,448,461,913.90 | 3,211,260.13 | 54,988,327.58 | 448,091,011.93 | 2,401,086,894.28 |
Principal of the Company: LI Yi Chief Accountant: WANG Yingxia Person in Charge of the Accounting Body: WANG Yingxia
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, registered in Nanshan Branch of MarketSupervision and Regulation Bureau of Shenzhen Municipality on October 24, 2006, and headquarteredin Shenzhen City, Guangdong Province. The Company holds the business license bearing the credibilitycode 91440300795413991N. The Company’s registered capital is RMB 457,107,538.00 divided into457,107,538 shares (RMB 1.00 per share), including 457,107,538 unrestricted shares. The Company’sshares were listed for trading on Shanghai Stock Exchange on July 22, 2019.
The Company can be classified into the computer, communication and other electronic equipmentmanufacturing industry. It mainly engages in research and development, production, sales and leasing oflaser display core devices and whole machines, and can provide customers with technical research anddevelopment services and customized products. Its products mainly include laser optical engines, laserbusiness and education projectors, smart mini projectors, laser TV, laser large venue projector and laserdigital cinema projector.
These financial statements have been approved by the 21st meeting of the second Board ofDirectors on August 16, 2023 for public disclosure.
2. Scope of consolidated financial statements
√ Applicable□ N/A
The Company has included 35 subsidiaries into the consolidated financial statements for the currentperiod, including CINEAPPO Laser Cinema Technology (Beijing) Co., Ltd., Appotronics Hong KongLimited, Formovie (Chongqing) Innovative Technology Co., Ltd., Fengmi (Beijing) Technology Co.,Ltd., etc. Refer to VIII and IX of Section 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 tothe actual production and operation characteristics of the Company.
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 and domestic subsidiaries adopt RMB as their functional currency, while AppotronicsHong Kong Limited and other overseas subsidiaries engaging in overseas operation adopt the currencyin their primary economic environments as their functional currencies.
5. The accounting treatment of business combinations involving entities under common controland not involving entities under common control
√ Applicable□ N/A
1. Accounting method for business combinations involving enterprises under common controlAssets and liabilities acquired from a business combination by the Company are measured at thebook values 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 book value of the owners’equity of the acquiree as stated in the consolidated financial statements of the ultimate controller and thebook value of the total consideration paid or total par value of the shares issued in connection with thecombination 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 involving entities not 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 lessthan the Company’s interest in the fair value of the acquiree’s identifiable net assets, the Companyfirstly reassesses the fair values of the acquiree’s identifiable assets, liabilities and contingent liabilitiesand the measurement of the cost of combination. If after that reassessment, the cost of combination isstill less than the Company’s interest in the fair value of the acquiree’s identifiable net assets, theacquirer recognizes 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 financialstatements. The consolidated financial statements are prepared by the parent company in accordancewith the Accounting Standards for Business Enterprises No. 33 - Consolidated Financial Statements, onthe basis of the respective financial statements of the parent company and its subsidiaries, by referenceto other relevant 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 equivalents are the Group’s short-term (generally due within 3 months from the acquisition date),highly liquid investments that are readily convertible to known amounts of cash and which are subject toan insignificant risk of changes in 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 atthe transaction dates, without adjusting the amounts in RMB. Non-monetary items denominated inforeign currencies that are measured at fair value are translated using the foreign exchange ratesprevailing at the dates when the fair value was determined, with exchange differences arising from suchtranslations recognized 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 atthe balance 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 incomestatement are translated at the exchange rates that approximate the actual spot exchange rates on thedates of the transactions. Exchange differences arising from such translations are recognized in othercomprehensive income.
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 comprehensiveincome; 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 costsrelating to financial assets or liabilities at fair value through profit or loss are directly recognized inprofit or loss for the current period. Transaction costs relating to other kinds of financial assets orliabilities are included in their initially recognized amount. However, where the accounts that do notcontain any significant financing component or are recognized by the Company without taking intoconsideration the significant financing components under the contracts with a term of less than one yearupon initial recognition are initially measured at transaction price defined in the Accounting Standard forBusiness 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
using the effective interest method are recognized in profit or loss for the current period, and other gainsor losses are recognized in other comprehensive income. Upon derecognition, the aggregate gains orlosses previously recognized in other comprehensive income are transferred to profit or loss for thecurrent period.
3) Investments in equity instruments at fair value through other comprehensive incomeInvestments in debt 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, recognizedin 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 riskare recognized in other comprehensive income, unless such treatment will result in or increase anyaccounting mismatch in profit or loss. Other gains or losses arising from such financial liabilities,including interest expenses and changes in fair value not arising out of changes in the Company’s owncredit risk, are recognized in profit or loss for the current period, except the financial liabilitiesbelonging to any hedging relationship. Upon derecognition, the accumulated gains or losses previouslyrecognized in other comprehensive income are transferred to retained earnings.
2) Financial liabilities arising as a result of the transfer of financial assets not meeting the criteriafor derecognition 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 notfalling under 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 ofthe initially recognized amount after deduction of the accumulated amortization determined inaccordance with 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 theeffective interest method. Gains or losses on financial liabilities at amortized cost that do not belong toany hedging relationship are recognized in profit or loss for the current period upon derecognition oramortization using the 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 accordingly where its present obligation (orpart thereof) is 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 isderecognized, and the rights and obligations incurred or retained in such transfer are separatelyrecognized as assets or liabilities (as the case may be); if substantially all the risks and rewardsincidental to the ownership of the financial asset have been retained, the financial asset transferredcontinues to be recognized. If the Company neither transferred nor retained a substantial portion of allrisks and rewards incidental to the ownership of the financial asset, then: (1) if the Company does notretain control over the financial asset, the financial asset is derecognized, and the rights and obligationsincurred or retained in such transfer are separately 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 berecognized to the extent of the Company’s continuing involvement in the financial asset transferred, anda corresponding liability is recognized.
If an entire transfer of a financial asset meets the criteria for derecognition, the difference between
(1) the book value of the financial asset transferred at the date of derecognition; and (2) the sum of theconsideration 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, thetotal book value 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 oftransfer, and the difference between (1) the book value 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 that
corresponds 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 withsufficient data available and support of other information, to determine the fair value of financial assetsand financial liabilities. The Company classifies the inputs used by the valuation techniques in thefollowing levels and uses 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 stockvolatility that cannot be directly observed or validated by observable market data, future cash flows fromretirement obligation 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 comprehensiveincome, contract assets, lease receivable, loan commitments other than financial liabilities designated atfair value through profit or loss for the current period, and financial guarantee contracts other thanfinancial liabilities designated at fair value through profit or loss for the current period and financialliabilities arising as a result of the transfer of financial assets not meeting the criteria for derecognition orcontinuing involvement 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 flowsreceivable under the contract and estimated future cash flows discounted at the original effective interestrate, i.e. the present value of all cash shortage, wherein the Company’s purchased or originated financialassets that have 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 ofchanges in lifetime expected credit losses since initial recognition.
With respect to lease receivable, accounts receivable and contract assets that are formed fromtransactions under the Accounting Standards for Business Enterprises No. 14 - Revenue, the Company
uses the simple measurement method and recognizes a loss allowance equal to the lifetime expectedcredit loss.
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 riskhas increased significantly since initial recognition, or to the expected credit losses within the next 12months if 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 uponinitial recognition, to determine whether the credit risk of the financial instruments has increasedsignificantly since 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 book value recorded in the balancesheet is written off against the loss allowance. With respect to an investment in debt instruments at fairvalue through other comprehensive income, the Company recognizes the loss allowance in othercomprehensive income, without reducing its book value.
(2) Financial instruments for which expected credit risk is assessed and expected credit losses aremeasured collectively by using a three-stage model
| 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 rate of lifetime expected credit loss. |
| Other receivables - group of withholding receivable | ||
| Other receivables - group of receivables from related parties in the scope of consolidation | Contract assets from related parties in the scope of consolidation | |
| Other receivables - grouping by aging | Aging |
(3) Accounts receivable for which expected credit losses are measured collectively and contractassets using the simple measurement method
1) Groups and method for measuring expected credit losses
| 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 | Contract assets 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 - 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 contract assets and rate of lifetime expected credit loss, and calculate the expected credit losses. |
| Long-term receivables - 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 long-term receivables and rate of lifetime expected credit loss, and calculate the expected credit losses. |
2) Accounts receivable, contract assets, and long-term receivables - comparison table of the age ofaccounts receivable and rate of lifetime expected credit loss
| Aging | Rate of expected credit loss for accounts receivable, contract assets, and long-term receivables (%) |
| Within 1 year (including, the same below) | 5.00 |
| 1-2 years | 25.00 |
| 2-3 years | 50.00 |
| Over 3 years | 100.00 |
6. Offsetting of financial assets and financial liabilities
Financial assets and financial liabilities are presented in the balance sheet separately, withoutoffsetting each other. However, the Company may represent the financial assets and financial liabilitieson a net basis in the balance sheet only if: (1) the Company has a legal right that is currently enforceableto set off the recognized financial assets and financial liabilities, and (2) the Company intends either tosettle on a net basis, or to realize the financial asset and settle the financial liability simultaneously.With respect to the transfer of financial assets not meeting the criteria for derecognition, the Companydoes not offset the financial assets transferred against the relevant liabilities.
11. Notes receivable
Method for recognition of expected credit losses of notes receivable and relevant accountingtreatments
√ Applicable□ N/A
The Company’s method for recognition of expected credit losses of notes receivable and relevantaccounting treatments are disclosed in V.10 of Section X in details.
12. Accounts receivable
Method for recognition of expected credit losses of accounts receivable and relevant accountingtreatments
√ Applicable□ N/A
The Company’s method for recognition of expected credit losses of accounts receivable and relevantaccounting treatments are disclosed in V.10 of Section X in details.
13. Receivables financing
√ Applicable□ N/A
The Company’s policies on receivables financing and accounting are disclosed in V.10 of Section X indetails.
14. Other receivables
Method for recognition of expected credit losses of other receivables and relevant accountingtreatments
√ Applicable□ N/A
The Company’s method for recognition of expected credit losses of other receivables and relevantaccounting treatments are disclosed in V.10 of Section X in details.
15. Inventories
√ Applicable□ N/A
1. Categories of inventories
Inventories include finished goods or merchandise held by the Company for sale in the ordinarycourse of business, or work in progress in the process of production for such sale, or materials orsupplies to be consumed in the production process or in the rendering of services.
2. Valuation method of inventories upon delivery
The actual cost of inventories upon delivery is calculated using the moving weighted averagemethod.
3. Basis for determining net realizable value of inventories
At the balance sheet date, inventories are measured at the lower of cost and net realizable value.Any excess of the cost over the net realizable value of each item/class of inventories is recognized as aprovision for diminution in the value of inventories. For inventories directly used for sale, the netrealizable value is determined as the estimated selling price in the ordinary course of business less theestimated costs necessary to make the sale and relevant taxes. For inventories required for processing,the net realizable value is determined as the estimated selling price of finished goods in the ordinarycourse of business less the estimated costs of completion, and the estimated costs necessary to make thesale and relevant taxes. As at the balance sheet date, if in the same item of inventories, some are agreedwith contractual prices while the others are not, the net realizable value for such inventories isdetermined separately, and compared with the costs of the two parts of inventories distinctively, as todetermine the provisions or reversal of provisions for decline in value of inventories 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
Packaging materials are amortized using the immediate write-off method.
(2) Packaging materials
Packaging materials 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 performance of contractual obligations and payment by customers. Contractassets and contract liabilities under a same contract are presented at the net amount after offsetting eachother.
The Company presents its owned right to unconditionally (that is, only depending on the lapse of
time) 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 accountingtreatments
√ 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 relevant accountingtreatments 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 onlywhen decisions about the relevant activities of such arrangement require the unanimous consent of theparties sharing control. Significant influence is the power to participate in the financial and operatingpolicy decisions of the investee 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 entitiesunder common control, if the acquirer pays consideration for the business combination by cash, transferof non-monetary assets, assumption of liabilities or issuance of equity securities, the initial investmentcost of the long-term equity investment is the Company’s share of the book value of the owners’ equityof the acquiree in the consolidated financial statements of the ultimate controller at the date ofcombination. The difference between: (i) the initial investment cost of the long-term equity investment;and (ii) the book value of the consideration paid for the combination or the total par value of the shares
issued is treated as an adjustment to the capital reserve. In case the capital reserve is not sufficient toabsorb 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 book value of theowners’ equity of the acquiree in the consolidated financial statements of the ultimate controller at thedate of combination. The difference between: (i) the initial investment cost of the long-term equityinvestment at the date of combination; and (ii) the sum of the book value of long-term equity investmentbefore the combination and the book value of the consideration paid for acquisition of the additionalshares at the date of combination is adjusted against the capital reserve. In case the capital reserve is notsufficient to 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 involvingenterprises under common control, the initial investment cost is the fair value of the carrying amount ofthe consideration paid for the combination at the date of acquisition.
With respect to a long-term equity investment acquired through a business combination notinvolving enterprises under common control that is achieved through multiple transactions by steps, theaccounting treatment thereof in the separate financial statements is different from that in theconsolidated financial statements as stated below:
1) In the separate financial statements, the sum of the book value 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 transactionsconstitute a package deal. If such transactions constitute a package deal, the Company accounts for suchtransactions as one transaction to acquire control. If such transactions do not constitute a “package deal”,the Company re-measures the fair value of the equity held in the acquiree prior to the date of acquisition,and records the difference between the fair value and the book value as investment income for thecurrent period; if the equity held in the acquiree prior to the date of acquisition involves othercomprehensive income under equity method, such other comprehensive income is transferred to theincome of the period in which the date of acquisition falls, except for other comprehensive incomearising from re-measurement by the investee of changes in net liabilities or net assets of defined benefitplans.
(3) In the event of no business combination: the initial investment cost is the purchase price actuallypaid if it is acquired by cash, or the fair value of the equity securities issued if it is acquired throughissuance of equity securities, or determined in accordance with the Accounting Standards for BusinessEnterprises No. 12 - Debt Restructuring if it is acquired through debt restructuring, or determined in
accordance with the Accounting Standards for Business Enterprises No. 7 - Exchange of Non-monetaryAssets 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.
22. Investment property
N/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 oroperation and management with a useful life of more than one accounting year. A fixed asset isrecognized if the economic benefits relating to it are very likely to flow to the Company and its cost canbe reliably measured.
(2). Method of depreciation
√ Applicable□ N/A
| Category | Method of depreciation | Depreciation period (years) | Residual ratio (%) | 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 |
(3). Identification basis, valuation method and depreciation method for fixed assets acquired
under finance leases
□ Applicable√ N/A
24. Construction in progress
√ Applicable□ N/A
1. Construction in progress is recognized if the economic benefits relating to it are very likely toflow to the Company and its cost can be reliably measured. A construction in progress is measured at theactual cost incurred before it is completed and ready for intended use.
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 theaccrued depreciation 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. Capitalization period of borrowing costs
(1) Borrowing costs are capitalized when all of the following conditions are met: 1) capitalexpenditure has been incurred; 2) borrowing costs 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 shallbe suspended. The borrowing costs 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 costs 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 costs
As for the specific borrowings for the acquisition and construction or production of assetsqualifying for capitalization, the to-be-capitalized amount of interests shall be determined in light of theactual cost incurred on the current specific borrowings (including the amortization of discounts orpremiums determined using the effective interest method) minus the income of interests earned from theunused borrowings by depositing it in the bank or investment income from such borrowing by making itas a temporary 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 ofthe accumulative expenditures to asset minus the specific borrowing by the capitalization rate of thegeneral borrowing used.
26. Biological assets
□ Applicable√ N/A
27. Oil and gas assets
□ Applicable√ N/A
28. Right-of-use asset
√ Applicable□ N/A
Right-of-use assets are initially measured at cost; the cost includes: 1) initial measurement amountof leased liabilities; 2) lease payments paid on or prior to the commencement of the lease term, net of thelease incentives (if any) received; 3) initial direct expenses incurred by the lessee; and 4) costs expectedto be incurred by the lessee for dismantling and removing the leased assets, restoring the place of theleased assets, or restoring the leased assets to the state provided under lease provisions.The Company depreciates right-of-use assets by using the straight-line method. If there isreasonable certainty that the lessee will obtain ownership of the leased asset by the end of the lease term,the Company depreciates the leased asset over its useful life. If there is no reasonable certainty that thelessee will obtain ownership of the leased asset by the end of the lease term, the Company depreciatesthe leased asset over the shorter of the lease term and its remaining useful life.
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 costinitially.
2. 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 usingthe straight-line method if it is impossible to determine expected realization reliably. The specific yearsare as follows:
| Item | Amortization period (years) |
| Land use rights | 30 |
| Patents | 10 |
| Software | 3-5 |
(2). Accounting policy on internal research and development expenditures
√ Applicable□ N/A
Expenditures incurred during the research phase of internal research and development projects arerecognized as current expenses when they occur. Expenditures on an internal research and developmentproject at development phase are recognized as an intangible asset if all the following conditions are met:
(1) it is technically feasible to complete the intangible asset so that it will be available for use of sale; (2)it is intended to complete the intangible asset so that it will be available for use of sale; (3) the pattern inwhich the intangible asset will generate economic results can demonstrate the existence of a market forthe output of the intangible asset or the intangible asset itself, or if it is to be used internally, theusefulness of the intangible asset; (4) there are sufficient technical, financial and other resourcesavailable to complete the development activities and to use or sell the intangible asset; and (5) theexpenditures attributable to the development of the intangible asset can be reliably measured.
30. Impairment of long-term assets
√ Applicable□ N/A
For long-term equity investments, fixed assets, construction in progress, right-of-use assets,intangible assets with a finite useful life and other long-term assets, if there’s an indication ofimpairment at the balance sheet date, the Company assesses their recoverable amount. Goodwill arisingfrom business combinations and intangible assets with an infinite useful life are tested for impairmentevery year regardless of whether there’s an indication of impairment. Goodwill is tested for impairmenttogether with the relevant groups of assets or combinations of groups of assets.If the recoverable amount of a long-term asset is less than its book value, the difference is measuredas impairment loss of the asset and recognized in profit or loss for the current period.
31. Long-term prepaid expenses
√ Applicable□ N/A
Long-term prepaid expenses are expenses that have already been incurred but should be amortizedover a period of more than one year (excluding one year). Long-term prepaid expenses are stated as theamount actually incurred and shall be amortized evenly by stages within the benefit period or specifiedperiod. If an item of long-term prepaid expenses will not benefit the subsequent periods, the amortizedvalue of the item that has not yet been amortized is wholly transferred to profit or loss for the currentperiod.
32. Contract liabilities
Recognition method for contract liabilities
√ Applicable□ N/A
The Company presents contract assets or contract liabilities in the balance sheet according to therelationship between the performance of contractual obligations and payment by customers. Contractassets and contract liabilities under a same contract are presented at the net amount after offsetting eachother.
The obligations of the Company for transferring goods to customers corresponding toconsiderations that have been received or receivable are presented as contract liabilities.
33. Employee benefits
(1). Accounting treatment of short-term employee benefits
√ Applicable□ N/A
1. Employee benefits include short-term benefits, post-employment benefits, termination benefitsand other long-term employee benefits.
2. Accounting treatment of short-term employee benefits
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 incontribution as calculated according to the defined contribution plan is recognized as liabilities andincluded in profit or 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 thepresent value of the defined 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 asa net liability or asset of the defined benefit plan. If the defined benefit plan has a surplus, the net assetsof the defined benefit plan are measured at the lower of surplus in the defined benefit plan and assetceiling;
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
If dismissal benefits are provided to employees, the liabilities of employee benefits from thedismissal benefits are recognized at the earlier of the following and are recognized in the profit or lossfor the current period: (1) when the Company can no longer withdraw the offer of termination benefitsas a result of termination of employment or redundancy; or (2) the Company recognizes the restructuringcosts or expenses relating to payment of termination benefits.
(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 applicableto defined contribution plans if they are qualified as defined contribution plans, otherwise, are accountedfor in accordance with the provisions applicable to defined benefit plans. In order to simplify theaccounting treatment, the total net amount of the cost of employee benefits arising from the definedbenefit plans that is recorded as service cost, net interest on the net liabilities or net assets of other long-term employee benefits, changes arising from re-measurement of the net liabilities or net assets of other
long-term employee benefits and other components is included in profit or loss for the current period orthe cost of related assets.
34. Lease liabilities
√ Applicable□ N/A
At the commencement date of the lease, the Company recognizes the present value of leasepayments not paid as lease liabilities. The interest rate implicit in the lease is used as the discount ratefor calculating the present value of the lease payments; if the interest rate implicit in the lease cannot bedetermined, the incremental borrowing interest rate of the Company is used as the discount rate. Thedifference between the lease payments and the present value thereof is considered as unrecognizedfinance charges; in each period during the lease term, interest expenses are recognized in the profit orloss for the current period according to the discount rate of the present value of recognized leasepayments. Variable lease payments not included in measurement of lease liabilities are recognized in theprofit or loss for the current period when the actually arise.Where, after the lease inception date, there are changes in the substantial fixed payment, thepayables expected on the basis of the residual value of the guarantee, the index or ratio used fordetermining the lease payment, the evaluation results or actual exercising of purchase option, renewaloption or lease termination option, the Company re-measures the lease liability as per the present valueof the lease payment after change, and adjust the book value of the right-of-use assets accordingly.Where the book value of the use right asset has been reduced to zero, but the lease liability still needs tobe further reduced, the Company includes the residual amount in the current profit or loss.
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 settlethe present obligation. The book value 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 the
grant date, and recognized as related costs or expenses with a corresponding adjustment to capitalreserve. At each balance sheet date during the vesting period, equity-settled share-based payments inexchange for services rendered by employees that cannot be executed until services in the vesting periodare completed or required performance conditions are satisfied, are measured at the fair value of theequity instruments at the grant date based on the best estimate of exercisable numbers of equityinstruments, and recognized as related costs or expenses with a corresponding adjustment to capitalreserve.
For equity-settled share-based payments in exchange for services rendered by other parties, if thefair value of services from other parties can be measured reliably, they are measured at the fair value ofservices from other parties at the date when such services are received. If the fair value of services fromother parties cannot be measured reliably but the fair value of the equity instruments can be measuredreliably, they are measured at the fair value of the equity instruments at the date when such services arereceived. The fair value of the equity instruments are recognized as related costs or expenses, with acorresponding increase in owners’ equity.
(2) Modification and termination of share-based payment plan
If the modification increases the fair value of the equity instruments granted, the Company willinclude the incremental fair value of the equity instruments granted in the measurement of the amountrecognized for services received. If the modification increases the number of the equity instrumentsgranted, the Company will include the fair value of additional equity instruments granted in themeasurement of the amount recognized for services received. If the Company modifies the exercisableconditions of the share-based payment plan in a manner beneficial to the employee, the Company willconsider the modified exercisable conditions when dealing with 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 equityinstruments at the grant date without including the decremental fair value of the equity instruments. Ifthe modification decreases the number of the equity instruments granted, the Company will treat thedecreased number as the cancelled number of equity instruments granted. If the Company modifies theexercisable conditions in a manner unbeneficial to the employee, the Company will not consider themodified exercisable conditions 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 theCompany’s performance; (3) the products produced in the process of the Company’s performance haveirreplaceable uses, and the Company has the right to collect payment for the cumulative performancethat has been completed 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 certainpoint 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 materialrisks and rewards of such goods; (5) the customer has accepted such goods; and (6) other signs that thecustomer has obtained control of such goods.
2. Principles for revenue measurement
(1) The Company measures the revenue based on the transaction price allocated to individualperformance obligations. 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 ofthe variable 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 the transaction price and contract consideration is amortized using the
effective interest method during the term of the contract. If on the commencement of a contract, theCompany expects that the customer’s acquisition of control of goods or services is not more than oneyear from 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 thecommencement of a contract, allocates the transaction price to each individual performance obligation inthe contract by reference 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 recognizes
the 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; If the Company shares profits from sales ofproduct by downstream end customers, the Company recognizes shared revenue when it can bemeasured reliably. 2) Under the commissioned sales mode, the Company recognizes the revenue when itreceives 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 withexport customs clearance procedures completed.
(2) E-commerce platform revenue
In the e-commerce platform model, the e-commerce platform is responsible for product promotionand order management. Consumers place orders and pay directly to the e-commerce platform, and the e-commerce platform arranges third-party logistics through the Company or ships directly to the consumerby the e-commerce platform after receiving the consumer's payment. The specific revenue recognitiontime points are: for domestic e-commerce platforms, revenue is recognized according to the time of endcustomer receipt; for foreign e-commerce platforms, revenue is recognized after receiving theconfirmation list of the e-commerce platform after checking the reconciliation time agreed in thecontract.
(3) 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, the
Company recognizes the revenue when it has completed the services and received customers’acceptance certificate; for repair and maintenance services provided by the Company, the Companyrecognizes the revenue when it has completed the services and received payments; for patrol inspectionservices provided by the Company, the Company determines the service performance progress by usingthe output approach, and recognizes the revenue according to the performance progress; for patentlicensing services provided by the Company, the Company recognizes the revenue when the patentlicensing is completed and handed over; and for technology development services provided by theCompany, the Company recognizes the revenue when it has completed the services or when the agreedtime 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
Assets related to contract costs include contract acquisition costs and contract performance costs.If costs incurred by the Company for acquiring a contract are expected to be recovered, such costsare recognized as an asset as contract acquisition costs.The costs incurred by the Company for performing a contract are recognized as an asset of contractperformance costs if they do not fall within the scope of other relevant standards, like inventories, fixedassets, or intangible assets, and meet all the following conditions:
1. The cost is directly related to a present or expected contract, including direct labor, directmaterials, manufacturing expenses (or similar expenses), costs explicitly to be borne by customers, andother costs arising from the contract;
2. The cost leads to the increase in resources of the Company for fulfilling its performanceobligations in the future; and
3. The cost is expected to be recovered.
Assets related to contract costs are amortized on the same basis as recognizing incomes from goodsrelated to assets, and are recognized in the profit or loss for the current period.
If the book value of the assets related to contract costs is greater than the consideration expected tobe acquired by transferring the goods or services related to such assets less the costs expected to beincurred, the Company makes provision for impairment for the exceeding portion and recognizesimpairment loss of assets. In the event of a change in the factors causing impairment in a prior period, sothat the consideration expected to be acquired by transferring the goods or services related to such assetsless the costs expected to be incurred is greater than the book value of such assets, the provision forimpairment made for such assets is reversed and recognized in the profit or loss for the current period;provided, however, that the reversed book value of such assets shall not exceed the book value of suchassets at the reversal data on the assumption that no provision for impairment has been made.
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 governmentdocuments. 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 shouldpurchase, construct or otherwise acquire long-term assets. Government grants related to assets are offsetagainst the book value of the relevant assets or recognized as deferred income. Government grantsrelated to assets recognized as deferred income shall be included in profit or loss over the service life ofthe relevant assets on a reasonable and systemic basis. Government grants measured at nominal amountare directly recognized in profit or loss for the current period. In case of sale, transfer, retirement ordamage of the relevant assets before the end of intended service life, the balance of the unallocateddeferred income is transferred to profit or loss for the period in which the assets are disposed of.
3. Determination and accounting treatment of government grants related to income
Government 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 distinctionbetween the portion related to assets and the portion related to income are wholly classified asgovernment grants related to income. Government grants related to income as compensation forexpenses or losses to be incurred in subsequent periods are recognized as deferred income and in theperiod for recognizing the relevant costs, expenses or losses, included in profit or loss for the currentperiod or offset against the relevant costs. Government grants related to income as compensation forexpenses or losses already incurred are directly included in profit or loss for the current period or offsetagainst 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.Government grants not related to daily operations of the Company are recognized in non-operatingincome 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 thengrants the loan to the Company at the policy preferential rate, the loan is stated as the amount actuallyreceived, and the borrowing cost is calculated according to the principal of the loan and the policypreferential rate.
(2) If the Ministry of Finance directly appropriates the interest subsidies to the Company, theinterest subsidies 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 book value (or in case of anitem not recognized as asset or liability whose tax base can be determined according to the applicabletax law, the difference between its tax base and book value) 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 tax assets are recognized to the extent of the amount of income tax payable that will beavailable in future periods against which deductible temporary differences are deductible. At the balancesheet 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 againstwhich the deductible temporary differences are deductible.
3. At the balance sheet date, the book value of deferred tax assets is reviewed and reduced to theextent that it is no longer probable that sufficient taxable income will be available in future periods toallow the benefit of the deferred tax assets to be utilized. If it is probable that sufficient taxable incomewill be available, the reduced amount is reversed.
4. The income taxes and deferred taxes are included in profit or loss for the current period asincome tax expenses or gains, except the income taxes arising from any: (1) business combination; or (2)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 the New Lease Standard
√ Applicable□ N/A
1. The Company as the lessee
On the lease inception date, the Company recognizes a lease with a lease term of not more than 12months and not containing an option as a short-term lease, and recognizes a low-value assets lease for alease in which individually leased assets have a low value when they are new. If the Company subleasesor expects to sublease the leased asset, the original lease is not recognized as a low-value assets lease.
For short-term leases and low-value assets leases, the Company recognizes lease payment in thecosts of relevant assets or the profit or loss for the current period by using the straight-line method ineach period during the lease term.
Except for short-term leases and low-value assets leases subject to simplified treatment above, onthe lease inception date, the Company recognizes right-of-use assets and lease liabilities for leases.
(1) Use right assets
Right-of-use assets are initially measured at cost; the cost includes: 1) initial measurement amountof leased liabilities; 2) lease payments paid on or prior to the commencement of the lease term, net of thelease incentives (if any) received; 3) initial direct expenses incurred by the lessee; and 4) costs expectedto be incurred by the lessee for dismantling and removing the leased assets, restoring the place of theleased assets, or restoring the leased assets to the state provided under lease provisions.The Company depreciates right-of-use assets by using the straight-line method. If there isreasonable certainty that the lessee will obtain ownership of the leased asset by the end of the lease term,the Company depreciates the leased asset over its useful life. If there is no reasonable certainty that thelessee will obtain ownership of the leased asset by the end of the lease term, the Company depreciatesthe leased asset over the shorter of the lease term and its remaining useful life.
(2) Lease liabilities
At the commencement date of the lease, the Company recognizes the present value of leasepayments not paid as lease liabilities. The interest rate implicit in the lease is used as the discount ratefor calculating the present value of the lease payments; if the interest rate implicit in the lease cannot bedetermined, the incremental borrowing interest rate of the Company is used as the discount rate. Thedifference between the lease payments and the present value thereof is considered as unrecognizedfinance charges; in each period during the lease term, interest expenses are recognized in the profit orloss for the current period according to the discount rate of the present value of recognized leasepayments. Variable lease payments not included in measurement of lease liabilities are recognized in theprofit or loss for the current period when the actually arise.
Where, after the lease inception date, there are changes in the substantial fixed payment, thepayables expected on the basis of the residual value of the guarantee, the index or ratio used fordetermining the lease payment, the evaluation results or actual exercising of purchase option, renewaloption or lease termination option, the Company re-measures the lease liability as per the present valueof the lease payment after change, and adjust the book value of the right-of-use assets accordingly.Where the book value of the use right asset has been reduced to zero, but the lease liability still needs tobe further reduced, the Company includes the residual amount in the current profit or loss.
2. The Company as the lessor
On the lease inception date, the Company classifies a lease in which almost all the risks andrewards related to the ownership of the leased asset have been substantially transferred as a finance lease,and recognizes all other leases as operating leases.
(1) Operating lease
In each period during the lease term, the Company recognizes lease payments as rental incomes byusing the straight-line method/units of production method; initial direct expenses incurred are capitalized,and amortized on the same basis for recognizing lease incomes for recognizing in the profit or loss foreach period. The variable lease payments acquired by the Company that are related to operating leasesand not recognized in lease payments are recognized in the profit or loss for the current period when
they actually occur.
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
(2). Changes in significant accounting estimates
□ Applicable√ N/A
(3). The first implementation of new accounting standards or standard interpretations from 2023onwards that involves adjusting the financial statements at the beginning of the year in whichthey were first implemented
□ Applicable√ N/A
45. Others
□ Applicable√ N/A
VI. Taxes
1. Major categories of taxes and tax rates
Description of major categories of taxes and tax rates
√ Applicable□ N/A
| Category of tax | Basis of tax computation | Tax rate |
| Value-added tax (VAT) | VAT payable is the difference of the output tax calculated based on the incomes from selling goods and taxable services in accordance with the Tax Law, less the input tax allowed to be reduced in the period | 3%, 6%, 9%, 13% |
| City maintenance and construction tax | Turnover tax payable | 5%, 7% |
| Education surcharges | Turnover tax payable | 3% |
| Local education surcharges | Turnover tax payable | 2% |
| Enterprise income tax | Taxable income | 6.5%, 8.25%, 8.70%, 8.84%, 15%, 16.5%, 20%, 21%, 25% |
Disclosure of taxpayers with different rates of enterprise income tax:
√ Applicable□ N/A
| Taxpayer | Rate of enterprise income tax (%) |
| Appotronics Corporation Limited | 15% |
| Fengmi (Beijing) Technology Co., Ltd. | 15% |
| Appotronics Hong Kong Limited | 8.25%, 16.5% |
| Beijing Orient Appotronics Technology Co., Ltd. | 20% |
| JoveAI Innovation, Inc. | 8.70%, 8.84%, 21% |
| Appotronics USA, Inc. | 21% |
| Formovie Technology Inc. | 21% |
| JoveAI Limited | Tax exemption |
| Wemax LLC | 21% |
| Shenzhen Appotronics Display Device Co., Ltd. | 20% |
| Appotronics Technology (Changzhou) Co., Ltd. | 20% |
| Qingda Appotronics (Xiamen) Technology Co., Ltd. | 20% |
| Shenzhen Appotronics Home Line Technology Co., Ltd. | 20% |
| Shenzhen Appotronics Laser Technology Co., Ltd. | 20% |
| Shenzhen Appotronics Xiaoming Technology Co., Ltd. | 20% |
| JoveAI Asia Company Limited | 20% |
| Formovie Limited | 16.5% |
| Chongqing Ewei Ecommerce Co., Ltd. | 20% |
| Chongqing Guangbo Ecommerce Co., Ltd. | 20% |
| Shenzhen Orange Juice Energy Technology Co., Ltd. | 20% |
| Tianjin Bonian Film Partnership (LP) | Tax exemption |
| CINEAPPO Laser Cinema Technology (Beijing) Co., Ltd. | 15% |
| Hongkong Orange Juice Energy Technology Co., Limited | 16.5% |
| Wemax Inc. | 6.5%, 21% |
| Shenzhen Weiwoqi Trading Co., Ltd. | 20% |
| Yaoyouguang (Chongqing) Technology Co., Ltd. | 20% |
| Appotronics International Limited | 16.5% |
| Appotronics Intelligent Manufacturing (Shenzhen) Co., Ltd. | 20% |
| Shenzhen Qianhai Taishi Investment Partnership (LP) | Tax exemption |
| Other taxpayers except above | 25% |
Note:
1. Appotronics Hong Kong Limited, as domiciled in Hong Kong, one of which can apply the two-level income tax system, namely, applying the tax rate of 8.25% for the first HKD 2 million taxableincome and 16.50% for the remaining taxable income.
2. JoveAI Limited, as domiciled in the Cayman Islands, is exempt from enterprise income tax.
3. Appotronics USA, Inc., as domiciled in the United States, applies the federal enterprise incometax rate of 21%.
4. JoveAI Innovation, Inc., as domiciled in the United States, applies the federal enterprise incometax rate of 21%, the California state enterprise income tax rate of 8.84%, and the Delaware stateenterprise income tax rate of 8.70%.
5. Formovie Technology Inc., as domiciled in the United States, applies the federal enterpriseincome tax rate of 21%.
6. JoveAI Asia Company Limited, as domiciled in Vietnam, applies the enterprise income tax rateof 20%.
7. Wemax LLC, as domiciled in the United States, applies the federal enterprise income tax rate of21%.
8. Formovie Limited, as domiciled in Hong Kong, applies the income tax rate of 16.50%.
9. Hong Kong Orange Juice Energy Technology Co., Limited, as domiciled in Hong Kong, appliesthe income tax rate of 16.50%.
10. Wemax Inc, as domiciled in the United States, applies the federal enterprise income tax rate of21%, and the New York state enterprise income tax rate of 6.50%.
11. Appotronics International Limited, as domiciled in Hong Kong, applies the income tax rate of
16.50%.
2. Tax incentives
√ Applicable□ N/A
1. Enterprise income tax
(1) On December 19, 2022, the Company obtained the High-tech Enterprise Certificate (CertificateNo.: GR202244206480) jointly issued by Shenzhen Science and Technology Innovation Commission,Shenzhen Finance Bureau and Shenzhen Tax Service of State Taxation Administration with a valid termof three years. Therefore, the Company paid the enterprise income tax at a rate of 15% in 2023.
(2) On December 17, 2021, Fengmi (Beijing) Technology Co., Ltd. obtained the High-techEnterprise Certificate (Certificate No.: GR202111004001) jointly issued by Beijing Municipal Scienceand Technology Commission, Beijing Finance Bureau and Beijing Tax Service of State TaxationAdministration with a valid term of three years. Therefore, the Company paid the enterprise income taxat a rate of 15% in 2023.
(3) On October 18, 2022, CINEAPPO Laser Cinema Technology (Beijing) Co., Ltd. obtained theHigh-tech Enterprise Certificate (Certificate No.: GR202211008942) jointly issued by Beijing MunicipalScience and Technology Commission, Beijing Finance Bureau and Beijing Tax Service of StateTaxation Administration with a valid term of three years. Therefore, the Company paid the enterpriseincome tax at a rate of 15% in 2023.
(4) In accordance with the Notice of the Ministry of Finance and the State Taxation Administrationon Implementing the Inclusive Tax Deduction and Exemption Policies for Micro and Small Enterprises(Cai Shui [2019] No. 13), and the Announcement of the Ministry of Finance and the State TaxationAdministration on Implementing Preferential Income Tax Policies for Micro and Small Enterprises andIndividually-owned Businesses (Announcement No. 6 in 2023 of the Ministry of Finance and the StateTaxation Administration), the annual taxable income of a small low-profit enterprise that is not morethan RMB 1 million shall be levied with the enterprise income tax rate at a discount of 25%, namely, forwhich the applicable enterprise income tax rate is 20%; for the annual taxable income more than RMB 1million but no more than RMB 3 million, the taxable income shall be calculated at a discount of 50%,namely, for which the applicable enterprise income tax rate is 20%. The following companies are
qualified for enjoying such tax incentives: Beijing Orient Appotronics Technology Co., Ltd., ShenzhenAppotronics Display Device Co., Ltd., Appotronics Technology (Changzhou) Co., Ltd., QingdaAppotronics (Xiamen) Technology Co., Ltd., Shenzhen Appotronics Home Line Technology Co., Ltd.,Shenzhen Appotronics Laser Technology Co., Ltd., Shenzhen City Appotronics Xiaoming TechnologyCo., Ltd., Chongqing Ewei Ecommerce Co., Ltd., Chongqing Guangbo Ecommerce Co., Ltd., ShenzhenOrange Juice Energy Technology Co., Ltd., Shenzhen Weiwoqi Trading Co., Ltd., Yaoyouguang(Chongqing) Technology Co., Ltd., and Appotronics Intelligent Manufacturing (Shenzhen) Co., Ltd.
2. Value-added tax (VAT)
(1) In accordance with the Notice of the Ministry of Finance and the State Administration ofTaxation on Value-added Tax Policies for Software Products (Cai Shui [2011] No. 100), for self-developed and produced software products sold by general VAT taxpayers, the tax-refund-upon-collection policy is applicable to the part of their actual VAT burden in excess of 3% after the VAT hasbeen collected at a tax rate of 17%. Appotronics Corporation Limited, Fengmi (Beijing) Technology Co.,Ltd., and Shenzhen Appotronics Software Technology Co., Ltd. are qualified for enjoying such taxincentives.
(2) According to the Announcement of the Ministry of Finance and the State TaxationAdministration on Clarifying the Policies for Reducing and Exempting Value-added Tax of Small-scaleTaxpayers (Announcement No. 1 of 2023 by the Ministry of Finance and the State TaxationAdministration), production and service-oriented taxpayers are allowed to deduct an additional 5% ofthe deductible input tax amount from the payable tax amount; CINEAPPO Laser Cinema Technology(Beijing) Co., Ltd. is qualified for this tax incentive.
3. Others
□ Applicable√ N/A
VII. Notes to items in the consolidated financial statements
1. Monetary funds
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Closing balance | Opening balance |
| Cash on hand | 3,346.05 | 5,479.42 |
| Bank deposits | 1,257,428,379.51 | 1,283,079,345.51 |
| Other monetary funds | 21,762,201.92 | 72,797,383.70 |
| Total | 1,279,193,927.48 | 1,355,882,208.63 |
| Including: Total overseas deposits | 185,283,856.24 | 261,403,774.28 |
Other information:
In other monetary funds, an amount of RMB 10,961,787.42 is restricted for in use because they aresecurity deposits; In the bank deposits, RMB 40,000,005.49 is deposited by the Company at banks atterm deposits or in restricted accounts, and therefore is not presented as cash and cash equivalents in thecash flow statement.
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 | 564,877,200.00 | 352,880,000.00 |
| Including: | ||
| Equity instrument investment | 42,880,000.00 | 42,880,000.00 |
| Structural deposits | 521,997,200.00 | 310,000,000.00 |
| Total | 564,877,200.00 | 352,880,000.00 |
Other information:
□ Applicable√ N/A
3. Derivative financial assets
□ Applicable√ N/A
4. Notes receivable
(1). Categories of notes receivable
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Closing balance | Opening balance |
| Bank acceptances | ||
| Commercial acceptances | 3,404,025.55 | 2,234,687.77 |
| Total | 3,404,025.55 | 2,234,687.77 |
(2). Notes receivable pledged by the Company at the end of the period
□ Applicable√ N/A
(3). Notes receivable which are undue as at the balance sheet date but endorsed or discounted bythe Company at the end of the period
□ Applicable√ N/A
(4). Notes transferred to accounts receivable due to drawer’s failure in cashing at the end of theperiod
□ 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 | Percentage (%) | Amount | Percentage of provision (%) | Amount | Percentage (%) | Amount | Percentage of provision (%) | |||
| Provision for bad debts made individually | ||||||||||
| Including: | ||||||||||
| Provision for bad debts made by group | 3,583,184.80 | 100.00 | 179,159.25 | 5.00 | 3,404,025.55 | 2,352,302.92 | 100.00 | 117,615.15 | 5.00 | 2,234,687.77 |
| Including: | ||||||||||
| Bank acceptance bills | ||||||||||
| Commercial acceptance bills | 3,583,184.80 | 100.00 | 179,159.25 | 5.00 | 3,404,025.55 | 2,352,302.92 | 100.00 | 117,615.15 | 5.00 | 2,234,687.77 |
| Total | 3,583,184.80 | 100.00 | 179,159.25 | 5.00 | 3,404,025.55 | 2,352,302.92 | 100.00 | 117,615.15 | 5.00 | 2,234,687.77 |
Provision for bad debts made individually:
□ Applicable√ N/A
Provision for bad debts made by group:
√ Applicable□ N/A
Item by group: Commercial acceptance bills
Unit: Yuan Currency: RMB
| Name | Closing balance | ||
| Notes receivable | Provision for bad debts | Percentage of provision (%) | |
| Group of commercial acceptance bills | 3,583,184.80 | 179,159.25 | 5.00 |
| Total | 3,583,184.80 | 179,159.25 | 5.00 |
Recognition criterion to make the Provision for bad debts by group and explanation
□ Applicable√ N/A
If the bad debt provision is made according to the general model of ECL, please refer to the disclosure ofother receivables:
□ 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 | |||
| Provision for bad debts made individually | |||||
| Provision for bad debts made by group | 117,615.15 | 61,544.10 | 179,159.25 | ||
| Total | 117,615.15 | 61,544.10 | 179,159.25 | ||
Including significant amounts recovered or reversed from the current provision for baddebts:
□ Applicable√ N/A
Other information:
None
(7). Notes receivable actually canceled in the current period
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
5. Accounts receivable
(1). Disclosure by aging
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Aging | Closing balance of carrying amount |
| Within 1 year | |
| Including: Sub-items within 1 year | |
| Within 1 year | 201,099,239.16 |
| Sub-total of items within 1 year | 201,099,239.16 |
| 1 to 2 years | 34,816,446.50 |
| 2 to 3 years | 4,747,311.85 |
| Over 3 years | 306,798.88 |
| Total | 240,969,796.39 |
(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 | Percentage (%) | Amount | Percentage of provision (%) | Amount | Percentage (%) | Amount | Percentage of provision (%) | |||
| Provision for bad debts made individually | 17,662,466.52 | 7.33 | 17,662,466.52 | 100.00 | 16,498,540.60 | 6.89 | 16,498,540.60 | 100.00 | ||
| Including: | ||||||||||
| Provision for bad debts made individually | 17,662,466.52 | 7.33 | 17,662,466.52 | 100.00 | 16,498,540.60 | 6.89 | 16,498,540.60 | 100.00 | ||
| Provision for bad debts made by group | 223,307,329.87 | 92.67 | 16,580,072.67 | 7.42 | 206,727,257.20 | 222,932,593.11 | 93.11 | 14,672,357.32 | 6.58 | 208,260,235.79 |
| Including: | ||||||||||
| Accounts receivable for which the provision for bad debts is made by aging group | 223,307,329.87 | 92.67 | 16,580,072.67 | 7.42 | 206,727,257.20 | 222,932,593.11 | 93.11 | 14,672,357.32 | 6.58 | 208,260,235.79 |
| Total | 240,969,796.39 | 100.00 | 34,242,539.19 | 14.21 | 206,727,257.20 | 239,431,133.71 | 100.00 | 31,170,897.92 | 13.02 | 208,260,235.79 |
Provision for bad debts made individually:
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Name | Closing balance | |||
| Carrying amount | Provision for bad debts | Percentage of provision (%) | Reason for provision | |
| Company A | 16,875,766.52 | 16,875,766.52 | 100.00 | Expected to be unrecoverable because the customer is in hardship |
| Company B | 786,700.00 | 786,700.00 | 100.00 | Expected to be unrecoverable because the |
| customer is in hardship | ||||
| Total | 17,662,466.52 | 17,662,466.52 | 100.00 | / |
Explanation about provision for bad debts made individually:
□ Applicable√ N/A
Provision for bad debts made by group:
√ Applicable□ N/A
Item by group: Accounts receivable for which the provision for bad debts is made by aging group
Unit: Yuan Currency: RMB
| Name | Closing balance | ||
| Accounts receivable | Provision for bad debts | Percentage of provision (%) | |
| Within 1 year | 198,608,813.03 | 9,930,440.68 | 5.00 |
| 1 to 2 years | 23,412,103.50 | 5,853,025.88 | 25.00 |
| 2 to 3 years | 979,614.46 | 489,807.24 | 50.00 |
| Over 3 years | 306,798.88 | 306,798.88 | 100.00 |
| Total | 223,307,329.87 | 16,580,072.67 | 7.42 |
Recognition criterion to make the Provision for bad debts by group and explanation:
□ Applicable√ N/A
If the bad debt provision is made according to the general model of ECL, please refer to the disclosure ofother receivables:
□ Applicable√ N/A
(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 individually | 16,498,540.60 | 1,233,776.97 | 69,851.05 | 17,662,466.52 | ||
| Provision for bad debts made by group | 14,672,357.32 | 1,909,765.35 | 2,050.00 | 16,580,072.67 | ||
| Total | 31,170,897.92 | 3,143,542.32 | 69,851.05 | 2,050.00 | 34,242,539.19 | |
Including significant amounts recovered or reversed from the current provision for bad debts:
□ Applicable√ N/A
(4). Accounts receivable actually canceled in the current period
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Cancellation amount |
| Accounts receivable actually canceled | 2,050.00 |
In which significant amounts canceled are described as below:
□ Applicable√ N/A
Description of accounts receivable cancellation:
□ Applicable√ N/A
(5). Top five closing balances of accounts receivable categorized by debtors
√ Applicable□ N/A
| Entity | Carrying amount | Proportion to the balance of accounts receivable (%) | Provision for bad debts | Percentage of provision (%) |
| Top 1 | 74,247,921.96 | 30.81 | 3,712,396.10 | 5.00 |
| Top 2 | 27,415,195.69 | 11.38 | 1,377,935.38 | 5.03 |
| Top 3 | 16,875,766.52 | 7.00 | 16,875,766.52 | 100.00 |
| Top 4 | 15,719,222.85 | 6.52 | 2,374,725.82 | 15.11 |
| Top 5 | 12,880,063.84 | 5.35 | 644,003.19 | 5.00 |
| Total | 147,138,170.86 | 61.06 | 24,984,827.02 | 16.98 |
(6). Accounts receivable derecognized due to transfer of financial assets
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Amount derecognized | Gains or losses associated with derecognition | Method of transferring financial assets |
| CCB E Infocomm | 3,000,000.00 | Discount | |
| Sub-total | 3,000,000.00 |
(7). Assets and liabilities arising from transfer of accounts receivable and continued involvement
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
6. Receivables financing
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Closing balance | Opening balance |
| Bank acceptance bills | 15,223,418.33 | 4,279,041.00 |
| Total | 15,223,418.33 | 4,279,041.00 |
Changes in amount and fair value of receivables financing:
□ Applicable√ N/A
If the bad debt provision is made according to the general model of ECL, please refer to the disclosure ofother receivables:
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
7. Prepayments
(1). Disclosure of prepayments by aging
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Aging | Closing balance | Opening balance | ||
| Amount | Percentage (%) | Amount | Percentage (%) | |
| Within 1 year | 16,262,610.13 | 46.78 | 37,333,767.05 | 77.06 |
| 1 to 2 years | 10,111,878.04 | 29.09 | 4,701,469.65 | 9.70 |
| 2 to 3 years | 7,693,706.89 | 22.13 | 6,410,740.16 | 13.24 |
| Over 3 years | 696,186.62 | 2.00 | ||
| Total | 34,764,381.68 | 100.00 | 48,445,976.86 | 100.00 |
Reasons for overdue settlement of prepayments with significant amounts aged more than 1 year:
| Item | Balance | Reasons for no settlement |
| Company C | 6,503,220.00 | Not delivered due to ongoing efforts for solving a technical difficulty |
(2). Top five closing balances of prepayments categorized by receivers
√ Applicable□ N/A
| Entity | Closing balance | Proportion to the total closing balance of prepayments (%) |
| Top 1 | 6,503,220.00 | 18.71 |
| Top 2 | 6,135,245.74 | 17.65 |
| Top 3 | 3,048,575.71 | 8.77 |
| Top 4 | 2,014,000.00 | 5.79 |
| Top 5 | 1,438,253.83 | 4.14 |
| Sub-total | 19,139,295.28 | 55.05 |
Other information
□ Applicable√ N/A
8. Other receivables
Presented by item
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Closing balance | Opening balance |
| Interest receivable | ||
| Dividend receivable | 14,307,084.00 | 13,789,908.00 |
| Other receivables | 12,666,138.84 | 12,541,813.55 |
| Total | 26,973,222.84 | 26,331,721.55 |
Other information:
□ Applicable√ N/A
Interest receivable
(1). Categories of interest receivable
□ Applicable√ N/A
(2). Significant interests overdue
□ Applicable√ N/A
(3). Provision for bad debts
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
(1). Dividends receivable
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Project (or investee) | Closing balance | Opening balance |
| Dividend distribution from GDC Technology Limited (BVI) | 14,307,084.00 | 13,789,908.00 |
| Total | 14,307,084.00 | 13,789,908.00 |
(2). Dividends receivable with significant amounts aged more than 1 year
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Project (or investee) | Closing balance | Aging | Reason for non-recovery | Whether impairment has occurred and the basis for its judgment |
| Dividend distribution from GDC Technology Limited (BVI) | 14,307,084.00 | 1-2 years | There are matters not reached an agreement through negotiation, and the payment has not yet been made | No |
| Total | 14,307,084.00 | - | - | - |
(3). Provision for bad debts
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
Other receivables
(4). Disclosure by aging
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Aging | Closing balance of carrying amount |
| Within 1 year | |
| Including: Subitems within 1 year | |
| Within 1 year | 4,814,935.60 |
| Sub-total of items within 1 year | 4,814,935.60 |
| 1 to 2 years | 2,052,183.69 |
| 2 to 3 years | 1,085,737.64 |
| Over 3 years | 5,412,560.59 |
| Total | 13,365,417.52 |
(5). Categories by the nature of other receivables
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Nature of receivables | Closing balance of carrying amount | Opening balance of carrying amount |
| Deposits/margins/petty cash | 11,046,676.68 | 11,162,127.62 |
| Withholding | 770,800.89 | 818,004.80 |
| Temporary receivables | 1,547,939.95 | 1,133,717.92 |
| Compensation receivable | 65,819.64 | |
| Total | 13,365,417.52 | 13,179,669.98 |
(6). 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, 2023 | 613,139.94 | 24,716.49 | 637,856.43 | |
| Balance as at January 1, 2023 in the current period | ||||
| --transferred to Stage II | ||||
| --transferred to Stage III | ||||
| --reversed to Stage II | ||||
| --reversed to Stage I | ||||
| Provision | 83,606.33 | -22,184.08 | 61,422.25 | |
| Reversal | ||||
| Write-off | ||||
| Cancellation | ||||
| Other changes | ||||
| Balance as at June 30, | 696,746.27 | 2,532.41 | 699,278.68 |
2023
Description of significant changes in the balance of other receivables with changed provisions for lossesin the current period:
□ Applicable√ N/A
Basis for recognizing the amount of provision for bad debts and evaluating whether the credit risk offinancial instruments has been increased significantly in the current period:
□ Applicable√ N/A
(7). 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 | 637,856.43 | 61,422.25 | 699,278.68 | |||
| Total | 637,856.43 | 61,422.25 | 699,278.68 | |||
Including significant amounts recovered or reversed from the current provision for bad debts:
□ Applicable√ N/A
(8). Other receivables actually canceled in the current period
□ Applicable√ N/A
(9). Top five closing balances of other receivables categorized by debtors
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Entity | Nature of other receivables | Closing balance | Aging | Proportion to the balance of other receivables (%) | Provision for bad debts Closing balance |
| Top 1 | Deposits/margins/petty cash | 3,574,618.00 | Over 3 years | 26.75 | 178,730.90 |
| Top 2 | Deposits/margins/petty cash | 1,310,675.20 | Over 3 years | 9.81 | 65,533.76 |
| Top 3 | Deposits/margins/petty cash | 900,000.00 | Within 1 year; 1-2 years; 2-3 years; Over 3 years | 6.73 | 45,000.00 |
| Top 4 | Deposits/margins/petty cash | 683,180.24 | Within 1 year | 5.11 | 34,159.01 |
| Top 5 | Deposits/margins/petty cash | 505,491.60 | Within 1 year; 2-3 years | 3.78 | 25,274.58 |
| Total | - | 6,973,965.04 | - | 52.18 | 348,698.25 |
(10). Accounts receivable involving government grants
□ Applicable√ N/A
(11). Other receivables derecognized due to transfer of financial assets
□ Applicable√ N/A
(12). Assets and liabilities arising from transfer of other receivables and continued involvement
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
9. Inventories
(1). Categories of inventories
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| 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 | 476,094,221.57 | 29,828,966.97 | 446,265,254.60 | 511,371,448.78 | 29,152,044.36 | 482,219,404.42 |
| Work in progress | 12,707,512.13 | 963,414.83 | 11,744,097.30 | 15,037,109.26 | 2,581,014.21 | 12,456,095.05 |
| Goods on hand | 320,339,395.14 | 38,858,676.06 | 281,480,719.08 | 354,588,226.87 | 24,770,894.74 | 329,817,332.13 |
| Goods upon delivery | 15,058,879.28 | 3,310,312.17 | 11,748,567.11 | 31,157,150.48 | 1,901,108.14 | 29,256,042.34 |
| Materials for consigned processing | 4,168,659.09 | 183,081.13 | 3,985,577.96 | 9,397,672.25 | 246,897.56 | 9,150,774.69 |
| Contract performance cost | 3,200,650.71 | 705,862.34 | 2,494,788.37 | 2,740,313.16 | 2,740,313.16 | |
| Total | 831,569,317.92 | 73,850,313.50 | 757,719,004.42 | 924,291,920.80 | 58,651,959.01 | 865,639,961.79 |
(2). Provision for decline in value of inventories and impairment of contract performance cost
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Opening balance | Increase | Decrease | Closing balance | ||
| Provision | Others | Reversal or write-off | Others | |||
| Raw materials | 29,152,044.36 | 2,294,599.08 | 3,349.33 | 1,621,025.80 | 29,828,966.97 | |
| Work in progress | 2,581,014.21 | 959,268.10 | 2,576,867.48 | 963,414.83 | ||
| Goods on hand | 24,770,894.74 | 21,960,705.51 | 34,089.15 | 7,907,013.34 | 38,858,676.06 | |
| Goods upon delivery | 1,901,108.14 | 1,409,204.03 | 3,310,312.17 | |||
| Materials for consigned processing | 246,897.56 | -52,231.78 | 11,584.65 | 183,081.13 | ||
| Contract performance cost | 705,862.34 | 705,862.34 | ||||
| Total | 58,651,959.01 | 27,277,407.28 | 37,438.48 | 12,116,491.27 | 73,850,313.50 |
(3). Description of capitalized amount of borrowing costs included in the closing balance ofinventories
□ Applicable√ N/A
(4). Description of amortization of contract performance cost during the period
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
10. Contract assets
(1). Description of contract assets
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Closing balance | Opening balance | ||||
| Carrying amount | Provision for impairment | Book value | Carrying amount | Provision for impairment | Book value | |
| Warranty security receivable | 1,668,534.88 | 187,601.32 | 1,480,933.56 | 1,031,362.02 | 153,332.67 | 878,029.35 |
| Goods payment | 1,202,847.32 | 1,075,479.32 | 127,368.00 | 1,202,847.32 | 1,019,295.32 | 183,552.00 |
| Total | 2,871,382.20 | 1,263,080.64 | 1,608,301.56 | 2,234,209.34 | 1,172,627.99 | 1,061,581.35 |
(2). Amount and reasons of major changes in the book value during the reporting period
□ Applicable√ N/A
(3). Description of provision for impairment made on contract assets during the period
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Provision | Reversal | Write-off/cancellation | Reason |
| Provision made by | 90,452.65 |
| group | ||||
| Total | 90,452.65 | / |
If the bad debt provision is made according to the general model of ECL, please refer to the disclosureof other receivables:
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
11. Held-for-sale assets
□ Applicable√ N/A
12. Non-current assets due within 1 year
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Closing balance | Opening balance |
| Debt investments due within 1 year | ||
| Other debt investments due within 1 year | ||
| Long-term receivables due within 1 year | 28,306,652.31 | 13,431,554.82 |
| Total | 28,306,652.31 | 13,431,554.82 |
Debt investments and other debt investments with significant amounts at the end of the period:
□ Applicable√ N/A
Other information:
None
13. Other current assets
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Closing balance | Opening balance |
| Input VAT to be deducted | 90,522,705.12 | 96,670,912.86 |
| Prepaid enterprise income tax | 4,367,773.15 | 6,101,724.28 |
| Cost of returned goods receivable | 1,065,708.83 | 3,729,974.65 |
| Total | 95,956,187.10 | 106,502,611.79 |
Other information:
None
14. Debt investments
(1). Description of debt investments
□ Applicable√ N/A
(2). Debt investments with significant amounts at the end of the period
□ Applicable√ N/A
(3). Description of provision for impairment
□ Applicable√ N/A
15. Other debt investments
(1). Description of other debt investments
□ Applicable√ N/A
(2). Other debt investments with significant amounts at the end of the period
□ Applicable√ N/A
(3). Description of provision for impairment
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
16. Long-term receivables
(1) Description of long-term receivables
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Closing balance | Opening balance | Range of discount rate | ||||
| Carrying amount | Provision for bad debts | Book value | Carrying amount | Provision for bad debts | Book value | ||
| Installment payment | 24,448,456.36 | 1,519,399.48 | 22,929,056.88 | 14,773,704.48 | 2,834,052.02 | 11,939,652.46 | 4.30%-4.65% |
| Including: Financing income not realized | -730,427.69 | -730,427.69 | -415,458.66 | -415,458.66 | 4.30%-4.65% | ||
| Total | 23,718,028.67 | 1,519,399.48 | 22,198,629.19 | 14,358,245.82 | 2,834,052.02 | 11,524,193.80 | / |
(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, 2023 | 2,834,052.02 | 2,834,052.02 | ||
| Balance as at January 1, 2023 in the current period | ||||
| --transferred to Stage II | ||||
| --transferred to Stage III | ||||
| --reversed to Stage II |
| --reversed to Stage I | ||||
| Provision | 723,105.21 | 723,105.21 | ||
| Reversal | ||||
| Write-off | ||||
| Cancellation | ||||
| Other changes | -2,037,757.75 | -2,037,757.75 | ||
| Balance as at June 30, 2023 | 1,519,399.48 | 1,519,399.48 |
Description of significant changes in the balance of long-term receivables with changed provisions forlosses in the current period:
√ Applicable□ N/A
“Other changes” indicate the amount of the provision for bad debts that was transferred to long-termreceivables due within 1 year.Basis for recognizing the amount of provision for bad debts and evaluating whether the credit risk offinancial instruments has been increased significantly in the current period:
□ Applicable√ N/A
(3) Long-term receivables derecognized due to transfer of financial assets
□ Applicable√ N/A
(4) Assets and liabilities arising from transfer of long-term receivables and continuedinvolvement
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
17. Long-term equity investments
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Investee | 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 | |||||||||||
| GDC Technology Limited (BVI) | 162,394,917.57 | -8,071,814.75 | -4,176,328.87 | 6,376,372.10 | 156,523,146.05 | ||||||
| Sub-total | 162,394,917.57 | -8,071,814.75 | -4,176,328.87 | 6,376,372.10 | 156,523,146.05 | ||||||
| Total | 162,394,917.57 | -8,071,814.75 | -4,176,328.87 | 6,376,372.10 | 156,523,146.05 |
Other information“Others” under “Changes for the current period” was the amount from the change in foreign currencyexchange gain or loss.
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. | ||
| Total | 7,075,419.38 | 7,075,419.38 |
(2). Description of equity investments not held for trading
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Dividends income recognized for the current period | Accumulated gains | Accumulated losses | Amounts to retained earnings from other comprehensive income | Reasons for designating as financial assets at fair value through other comprehensive income | Reasons for transferring to retained earnings from other comprehensive income |
| Shen Zhen Timewayin | Subject to the management’ |
| g Technology Co., Ltd. | s intention of holding | |||||
| Shenzhen Bevix Technology Co., Ltd. | Subject to the management’s intention of holding |
Other information:
√ Applicable□ N/A
The Company’s equity investments in Shen Zhen Timewaying Technology Co., Ltd., and ShenzhenBevix Technology Co., Ltd. are mainly for promoting future business cooperation rather than makingtransactions, hence they are designated as investments in equity instruments at fair value through othercomprehensive income.The cost of Shenzhen Bevix Technology Co., Ltd. is RMB 4,900,000.00, and the fair value change is -RMB 4,900,000.00.
19. Other non-current financial assets
□ Applicable√ N/A
20. Investment property
Measurement mode of investment propertiesN/A
21. Fixed assets
Presented by item
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Closing balance | Opening balance |
| Fixed assets | 379,962,412.96 | 427,539,718.53 |
| Disposal of fixed assets | ||
| Total | 379,962,412.96 | 427,539,718.53 |
Other information:
NoneFixed assets
(1). Description of fixed assets
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Machinery and equipment | Transportation equipment | Electronic equipment and others | Operating leased equipment | Total |
| I. Original book value: | |||||
| 1. Opening balance | 159,638,878.71 | 1,171,400.05 | 58,558,067.60 | 682,654,171.75 | 902,022,518.11 |
| 2. Increase | 10,467,813.25 | 486,486.74 | 2,747,223.45 | 6,972,816.06 | 20,674,339.50 |
| (1) Purchase | 9,950,187.05 | 486,486.74 | 2,560,297.91 | 12,996,971.70 | |
| (2) Transfer from construction in progress | 6,972,816.06 | 6,972,816.06 | |||
| (3) Transfer from inventories | 334,565.82 | 72,569.90 | 407,135.72 | ||
| (4) Exchange rate changes | 183,060.38 | 114,355.64 | 297,416.02 | ||
| 3. Decrease | 2,851,486.44 | 712,629.67 | 16,490,101.12 | 20,054,217.23 | |
| (1) Disposal or retirement | 2,851,486.44 | 454,730.00 | 269,230.77 | 3,575,447.21 | |
| (2) Transfer to inventories | 257,899.67 | 16,220,870.35 | 16,478,770.02 | ||
| 4. Closing balance | 167,255,205.52 | 1,657,886.79 | 60,592,661.38 | 673,136,886.69 | 902,642,640.38 |
| II. Accumulated depreciation | |||||
| 1. Opening balance | 77,432,539.28 | 758,120.79 | 30,586,219.43 | 364,608,760.63 | 473,385,640.13 |
| 2. Increase | 12,520,028.89 | 97,799.22 | 4,358,304.49 | 43,126,901.58 | 60,103,034.18 |
| (1) Provision | 12,421,481.40 | 97,799.22 | 4,280,360.66 | 43,126,901.58 | 59,926,542.86 |
| (2) Exchange rate changes | 98,547.49 | 77,943.83 | 176,491.32 | ||
| 3. Decrease | 2,621,874.58 | 505,329.37 | 10,538,978.83 | 13,666,182.78 | |
| (1) Disposal or retirement | 2,621,874.58 | 409,719.07 | 217,229.08 | 3,248,822.73 | |
| (2) Transfer to inventories | 95,610.30 | 10,321,749.75 | 10,417,360.05 | ||
| 4. Closing balance | 87,330,693.59 | 855,920.01 | 34,439,194.55 | 397,196,683.38 | 519,822,491.53 |
| III. Provision |
| for impairment | |||||
| 1. Opening balance | 1,097,159.45 | 1,097,159.45 | |||
| 2. Increase | 1,833,685.55 | 1,833,685.55 | |||
| (1) Provision | 1,833,685.55 | 1,833,685.55 | |||
| 3. Decrease | 73,109.11 | 73,109.11 | |||
| (1) Disposal or retirement | 8,795.77 | 8,795.77 | |||
| (2) Transfer to inventories | 64,313.34 | 64,313.34 | |||
| 4. Closing balance | 2,857,735.89 | 2,857,735.89 | |||
| IV. Book value | |||||
| 1. Closing book value | 79,924,511.93 | 801,966.78 | 26,153,466.83 | 273,082,467.42 | 379,962,412.96 |
| 2. Opening book value | 82,206,339.43 | 413,279.26 | 27,971,848.17 | 316,948,251.67 | 427,539,718.53 |
(2). Temporarily idle fixed assets
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Original book value | Accumulated depreciation | Provision for impairment | Book value | Remark |
| Operating leased equipment | 45,485,926.77 | 28,123,113.06 | 2,516,133.64 | 14,846,680.07 |
(3). Fixed assets acquired under finance lease
□ Applicable√ N/A
(4). Fixed assets leased out under operating lease
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Closing balance of book value |
| Operating leased equipment | 258,235,787.35 |
(5). Fixed assets of which certificates of title have not been obtained
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
Disposal of fixed assets
□ Applicable√ N/A
22. Construction in progress
Presented by item
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Closing balance | Opening balance |
| Construction in progress | 314,382,210.87 | 278,978,057.73 |
| Materials for construction | ||
| Total | 314,382,210.87 | 278,978,057.73 |
Other information:
NoneConstruction in progress
(1). Description of construction in progress
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Closing balance | Opening balance | ||||
| Carrying amount | Provision for impairment | Book value | Carrying amount | Provision for impairment | Book value | |
| Headquarter buildings | 309,377,852.19 | 309,377,852.19 | 270,837,599.21 | 270,837,599.21 | ||
| Assets to be leased | 5,004,358.68 | 5,004,358.68 | 6,266,605.31 | 6,266,605.31 | ||
| Decoration construction | 1,873,853.21 | 1,873,853.21 | ||||
| Total | 314,382,210.87 | 314,382,210.87 | 278,978,057.73 | 278,978,057.73 | ||
(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: Capitalized interest for the period | Interest capitalization rate for the period (%) | Source of funds |
| Headquarter buildings | 534,635,200.00 | 270,837,599.21 | 38,540,252.98 | 309,377,852.19 | 63.08 | 63.08 | 8,011,931.43 | 3,015,800.64 | 4.08 | Self-owned capital | ||
| Assets to be leased | 6,266,605.31 | 5,710,569.43 | 6,972,816.06 | 5,004,358.68 | Self-owned capital | |||||||
| Total | 534,635,200.00 | 277,104,204.52 | 44,250,822.41 | 6,972,816.06 | 314,382,210.87 | - | - | 8,011,931.43 | 3,015,800.64 | - | - |
(3). Provision for impairment losses for construction in progress in the current period
□ Applicable√ N/A
Other information
□ Applicable√ N/A
Materials for construction
□ Applicable√ N/A
23. Productive biological assets
(1). Productive biological assets measured at cost
□ Applicable√ N/A
(2). Productive biological assets measured at fair value
□ Applicable√ N/A
Other information
□ Applicable√ N/A
24. Oil and gas assets
□ Applicable√ N/A
25. Right-of-use asset
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Houses and buildings | Total |
| I. Original book value | ||
| 1. Opening balance | 80,936,615.37 | 80,936,615.37 |
| 2. Increase | 9,052,943.22 | 9,052,943.22 |
| (1) Rents | 9,013,018.21 | 9,013,018.21 |
| (2) Other changes | 39,925.01 | 39,925.01 |
| 3. Decrease | 763,530.71 | 763,530.71 |
| (1) Disposal | 763,530.71 | 763,530.71 |
| 4. Closing balance | 89,226,027.88 | 89,226,027.88 |
| II. Accumulated depreciation | ||
| 1. Opening balance | 18,680,945.08 | 18,680,945.08 |
| 2. Increase | 14,920,234.73 | 14,920,234.73 |
| (1) Provision | 14,899,916.76 | 14,899,916.76 |
| (2) Other changes | 20,317.97 | 20,317.97 |
| 3. Decrease | 179,705.50 | 179,705.50 |
| (1) Disposal | 179,705.50 | 179,705.50 |
| 4. Closing balance | 33,421,474.31 | 33,421,474.31 |
| III. Provision for impairment | ||
| 1. Opening balance | ||
| 2. Increase | ||
| (1) Provision | ||
| 3. Decrease |
| (1) Disposal | ||
| 4. Closing balance | ||
| IV. Book value | ||
| 1. Closing book value | 55,804,553.57 | 55,804,553.57 |
| 2. Opening book value | 62,255,670.29 | 62,255,670.29 |
Other information:
None
26. Intangible assets
(1). Description of intangible assets
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Land use rights | Patents | Software | Total |
| I. Original book value | ||||
| 1. Opening balance | 330,630,000.00 | 20,059,950.00 | 20,151,437.21 | 370,841,387.21 |
| 2. Increase | 2,899,914.47 | 2,899,914.47 | ||
| (1) Purchase | 2,875,894.25 | 2,875,894.25 | ||
| (2) Exchange rate changes | 24,020.22 | 24,020.22 | ||
| 3. Decrease | ||||
| (1) Disposal | ||||
| 4. Closing balance | 330,630,000.00 | 20,059,950.00 | 23,051,351.68 | 373,741,301.68 |
| II. Accumulated amortization | ||||
| 1. Opening balance | 49,594,500.18 | 16,390,600.14 | 10,845,243.95 | 76,830,344.27 |
| 2. Increase | 5,510,500.02 | 2,144,910.13 | 7,655,410.15 | |
| (1) Provision | 5,510,500.02 | 2,121,924.37 | 7,632,424.39 | |
| (2) Exchange rate changes | 22,985.76 | 22,985.76 | ||
| 3. Decrease | ||||
| (1) Disposal | ||||
| 4. Closing balance | 55,105,000.20 | 16,390,600.14 | 12,990,154.08 | 84,485,754.42 |
| III. Provision for impairment | ||||
| 1. Opening balance | 3,669,349.86 | 3,669,349.86 | ||
| 2. Increase | ||||
| (1) Provision | ||||
| 3. Decrease | ||||
| (1) Disposal | ||||
| 4. Closing balance | 3,669,349.86 | 3,669,349.86 | ||
| IV. Book value | ||||
| 1. Closing book value | 275,524,999.80 | 10,061,197.60 | 285,586,197.40 | |
| 2. Opening book | 281,035,499.82 | 9,306,193.26 | 290,341,693.08 |
value
The proportion of intangible assets generated by the Company’s internal research and development tothe balance of intangible assets at the end of the period is 0%.
(2). Land use rights of which certificates of title have not been obtained
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
27. Development expenditure
□ Applicable√ N/A
28. Goodwill
(1). Gross carrying amount 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 the
goodwill 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 information:
□ Applicable√ N/A
29. Long-term prepaid expenses
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Opening balance | Increase | Amortization | Other decreases | Closing balance |
| Decoration construction | 5,935,938.09 | 3,232,521.81 | 1,940,313.25 | -18,799.02 | 7,246,945.67 |
| RTO gas for the screen project | 55,045.94 | 16,513.74 | 38,532.20 | ||
| Total | 5,990,984.03 | 3,232,521.81 | 1,956,826.99 | -18,799.02 | 7,285,477.87 |
Other information:
None
30. Deferred tax assets and deferred tax liabilities
(1). Deferred tax assets that are not offset
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Closing balance | Opening balance | ||
| Deductible temporary differences | Deferred tax assets | Deductible temporary differences | Deferred tax assets | |
| Provision for impairment of assets | 67,348,572.44 | 10,102,393.87 | 54,480,645.82 | 8,172,204.87 |
| Unrealized profits for insider transactions | 250,032,883.05 | 37,504,932.45 | 293,141,594.90 | 43,971,239.24 |
| Provisions | 33,155,919.65 | 4,973,387.95 | 33,861,061.30 | 5,079,159.20 |
| Share-based payment expenses | 55,758,843.58 | 8,367,280.98 | 78,336,744.64 | 11,756,236.09 |
| Deferred income | 2,657,700.76 | 398,655.11 | 5,651,422.25 | 847,713.34 |
| Leases | 894,583.85 | 135,455.56 | 848,471.94 | 128,229.81 |
| Losses from changes in fair values | 1,120,000.00 | 168,000.00 | 1,120,000.00 | 168,000.00 |
| Deductible losses | 133,936,891.98 | 20,090,533.80 | 145,752,332.17 | 21,862,849.83 |
| Total | 544,905,395.31 | 81,740,639.73 | 613,192,273.02 | 91,985,632.38 |
(2). Deferred tax liabilities that are not offset
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Closing balance | Opening balance | ||
| Taxable temporary differences | Deferred tax liabilities | Taxable temporary differences | Deferred tax liabilities | |
| Long-term receivables | 24,429,108.67 | 3,664,366.30 | 15,031,309.08 | 2,254,696.36 |
| Other current assets - Cost of returned goods receivable | 46,685.41 | 7,002.81 | ||
| Total | 24,475,794.08 | 3,671,369.11 | 15,031,309.08 | 2,254,696.36 |
(3). Deferred tax assets and deferred tax liabilities that are presented at the net amount afteroffset
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Closing set-off amounts of deferred tax assets and | Closing balance of deferred tax assets or liabilities after | Opening set-off amount of deferred tax assets and | Opening balance of deferred tax assets or liabilities after |
| liabilities | set-off | liabilities | set-off | |
| Deferred tax assets | 3,671,369.11 | 78,069,270.62 | 2,254,696.36 | 89,730,936.02 |
| Deferred tax liabilities | 3,671,369.11 | 2,254,696.36 |
(4). Details of unrecognized deferred tax assets
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Closing balance | Opening balance |
| Provision for impairment of assets | 55,225,838.14 | 47,406,755.88 |
| Unrealized profits for insider transactions | 36,617,810.36 | 33,624,043.48 |
| Provisions | 20,307,631.71 | 18,872,846.92 |
| Deferred income | 2,454,545.47 | 3,000,000.01 |
| Share-based payment expenses | 724,391.43 | 3,180,261.29 |
| Leases | 1,992,084.01 | 1,557,490.63 |
| Profit distribution from partnership enterprises | 15,991.72 | |
| Changes in fair value of investments in other equity instruments | 4,900,000.00 | 4,900,000.00 |
| Deductible losses | 541,984,302.47 | 322,268,687.11 |
| Total | 664,206,603.59 | 434,826,077.04 |
(5). Deductible losses, for which no deferred tax assets are recognized, will expire in the followingyears
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Year | Closing balance | Opening balance | Remark |
| 2023 | 4,629,271.35 | 4,629,271.35 | |
| 2024 | 3,721,926.96 | 3,721,926.96 | |
| 2025 | 4,647,581.11 | 4,647,581.11 | |
| 2026 | 87,289,773.75 | 98,077,911.35 | |
| 2027 | 188,173,306.33 | 105,226,991.61 | |
| 2028 | 118,599,765.45 | ||
| No expiry date | 134,922,677.52 | 105,965,004.73 | |
| Total | 541,984,302.47 | 322,268,687.11 | / |
Other information:
□ Applicable√ N/A
31. Other non-current assets
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| 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 | 18,633,790.53 | 18,633,790.53 | 12,569,088.37 | 12,569,088.37 | ||
| Total | 18,633,790.53 | 18,633,790.53 | 12,569,088.37 | 12,569,088.37 | ||
Other information:
None
32. Short-term borrowings
(1). Categories of short-term borrowings
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Closing balance | Opening balance |
| Notes discount within the group | 30,000,000.00 | |
| Guaranteed loans | 69,500,000.00 | 39,500,000.00 |
| Credit loans | 60,000,000.00 | 60,000,000.00 |
| Interest payable | 104,426.40 | 89,634.03 |
| Total | 129,604,426.40 | 129,589,634.03 |
Description for categories of short-term borrowings:
None
(2). Short-term borrowings overdue but not yet repaid
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
33. Held-for-trading financial liabilities
□ Applicable√ N/A
34. Derivative financial liabilities
□ Applicable√ N/A
35. Notes payable
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Category | Closing balance | Opening balance |
| Commercial acceptance bills | ||
| Bank acceptance bills | 80,254,013.57 | 201,299,388.57 |
| Total | 80,254,013.57 | 201,299,388.57 |
Total notes payable matured but not paid yet is RMB 0 at the end of the period.
36. Accounts payable
(1). Presented by accounts payable
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Closing balance | Opening balance |
| Amounts payable for purchase | 275,507,953.57 | 276,845,321.28 |
| Total | 275,507,953.57 | 276,845,321.28 |
(2). Accounts payable with significant amounts aged more than 1 year
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
37. Receipts in advance
(1). Presented by receipts in advance
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Closing balance | Opening balance |
| Advance payments of recharge fees | 99,404,605.97 | 113,834,728.10 |
| Total | 99,404,605.97 | 113,834,728.10 |
(2). Receipts in advance with significant amounts aged more than 1 year
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Closing balance | Reasons for not repaid or carried-forward |
| Company D | 8,291,234.83 | Lease payments received in advance |
| Total | 8,291,234.83 | / |
Other information:
□ Applicable√ N/A
38. Contract liabilities
(1). Description of contract liabilities
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Closing balance | Opening balance |
| Goods payment | 39,465,849.54 | 37,285,920.43 |
| Total | 39,465,849.54 | 37,285,920.43 |
(2). Amount and reasons of major changes in the book value during the reporting period
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
39. Employee benefits payable
(1). Presented by employee benefits payable
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Opening balance | Increase | Decrease | Closing balance |
| I. Short-term benefits | 57,760,642.14 | 180,487,550.87 | 209,126,826.77 | 29,121,366.24 |
| II. Post-employment benefits-defined contribution plan | 170,231.90 | 8,970,833.40 | 8,975,331.91 | 165,733.39 |
| III. Dismissal benefits | 540,086.51 | 5,230,288.43 | 5,312,758.12 | 457,616.82 |
| IV. Other benefits due within 1 year | ||||
| Total | 58,470,960.55 | 194,688,672.70 | 223,414,916.80 | 29,744,716.45 |
(2). Presented by short-term employee benefits
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Opening balance | Increase | Decrease | Closing balance |
| I. Wages or salaries, bonuses, allowances and subsidies | 57,630,572.03 | 161,249,944.24 | 189,946,770.35 | 28,933,745.92 |
| II. Staff welfare | 2,396,777.44 | 2,396,777.44 | ||
| III. Social security contributions | 107,849.71 | 5,588,106.63 | 5,573,461.28 | 122,495.06 |
| Including: Medical insurance | 102,565.34 | 5,194,748.76 | 5,180,056.00 | 117,258.10 |
| Work injury insurance | 5,267.39 | 241,105.94 | 241,177.94 | 5,195.39 |
| Maternity insurance | 16.98 | 152,251.93 | 152,227.34 | 41.57 |
| IV. Housing funds | 10,780,341.66 | 10,780,341.66 | ||
| V. Union running costs and employee education costs | 22,220.40 | 472,380.90 | 429,476.04 | 65,125.26 |
| VI. Short-term paid |
| leaves | ||||
| VII. Short-term profit sharing plan | ||||
| Total | 57,760,642.14 | 180,487,550.87 | 209,126,826.77 | 29,121,366.24 |
(3). Presented by defined contribution plan
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Opening balance | Increase | Decrease | Closing balance |
| 1. Basic pensions | 164,547.68 | 8,715,951.66 | 8,720,362.91 | 160,136.43 |
| 2. Unemployment insurance | 5,684.22 | 254,881.74 | 254,969.00 | 5,596.96 |
| 3. Enterprise annuity contribution | ||||
| Total | 170,231.90 | 8,970,833.40 | 8,975,331.91 | 165,733.39 |
Other information:
□ Applicable√ N/A
40. Taxes payable
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Closing balance | Opening balance |
| Value-added tax (VAT) | 415,633.50 | 283,831.65 |
| Enterprise income tax | 3,423,409.78 | 1,329,891.54 |
| Individual income tax | 1,503,794.91 | 5,330,584.62 |
| City maintenance and construction tax | 420,196.47 | 461,779.38 |
| Education surcharges | 181,807.01 | 200,014.57 |
| Local education surcharges | 118,333.33 | 133,343.03 |
| Stamp duty | 368,555.48 | 521,340.60 |
| Annual franchise right tax | 12,381.41 | 11,933.84 |
| Urban land use tax | 8,914.32 | 49.67 |
| Others | 39.95 | |
| Total | 6,453,066.16 | 8,272,768.90 |
Other information:
None
41. Other payables
Presented by item
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Closing balance | Opening balance |
| Interest payable | ||
| Dividend payable | 797,774.22 | |
| Other payables | 119,109,874.30 | 56,662,357.08 |
| Total | 119,907,648.52 | 56,662,357.08 |
Other information:
NoneInterest payable
□ Applicable√ N/A
Dividends payable
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Closing balance | Opening balance |
| Dividends on ordinary shares | 797,774.22 | |
| Total | 797,774.22 |
Other description, including significant dividend payable with aging of over 1 year, and the reason ofnon-payment shall be disclosed:
NoneOther payables
(1). Other payables presented by nature
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Closing balance | Opening balance |
| Withholding | 118,512.62 | 264,611.23 |
| Deposits/margins | 11,630,428.35 | 9,538,090.44 |
| Withdrawals in advance | 36,325,990.61 | 38,870,669.59 |
| Temporary receipts payable | 12,531,383.72 | 7,988,985.82 |
| Amount of equity transfer payable | 7,893,600.00 | |
| Subscription payment for restricted stocks | 50,609,959.00 | |
| Total | 119,109,874.30 | 56,662,357.08 |
(2). Other payables with significant amounts aged more than 1 year
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
42. Liabilities held for sale
□ Applicable√ N/A
43. Non-current liabilities due within 1 year
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Closing balance | Opening balance |
| Long-term borrowings due within 1 year | 146,783,523.75 | 147,500,008.00 |
| Lease liabilities due within 1 year | 31,430,388.88 | 30,342,348.86 |
| Long-term payables due within 1 year | ||
| Interest payable | 146,727.76 | 189,460.51 |
| Total | 178,360,640.39 | 178,031,817.37 |
Other information:
None
44. Other current liabilities
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Closing balance | Opening balance |
| Rebates payable | 6,375,935.11 | 25,168,744.15 |
| Taxes to be written off | 3,423,594.29 | 3,013,395.69 |
| Refund | 201,468.53 | |
| Total | 9,799,529.40 | 28,383,608.37 |
Changes in short-term bonds payable:
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
45. Long-term borrowings
(1). Categories of long-term borrowings
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Closing balance | Opening balance |
| Guaranteed loans and loans against collateral | 139,982,252.95 | 147,905,776.70 |
| Guaranteed loans | 281,980,000.00 | 255,299,986.00 |
| Credit loans | 109,000,000.00 | |
| Interest payable | 524,648.75 | 514,779.75 |
| Total | 531,486,901.70 | 403,720,542.45 |
Description for categories of long-term borrowings:
NoneOther description, including interest rate range:
□ Applicable√ N/A
46. Bonds payable
(1). Bonds payable
□ Applicable√ N/A
(2). Changes in bonds payable (excluding other financial instruments such as preference shares,
perpetual bonds and others classified as financial liabilities)
□ Applicable√ N/A
(3). Description of converting terms and period of convertible corporate bonds
□ Applicable√ N/A
(4). Description of other financial instruments classified as financial liabilitiesBasic information of other financial instruments including outstanding preferred shares and perpetualbonds at the end of the period
□ Applicable√ N/A
Changes in financial instruments including outstanding preferred shares and perpetual bonds at the endof the period
□ Applicable√ N/A
Description of other financial instruments classified as financial liabilities
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
47. Lease liabilities
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Closing balance | Opening balance |
| Unpaid lease payments | 28,324,784.45 | 37,874,912.40 |
| Less: Financing charges not recognized | 1,063,951.96 | 3,555,628.17 |
| Total | 27,260,832.49 | 34,319,284.23 |
Other information:
None
48. Long-term payables
Presented by item
□ Applicable√ N/A
Long-term payables
□ Applicable√ N/A
Special payables
□ Applicable√ N/A
49. Long-term employee benefits payable
□ Applicable√ N/A
50. Provisions
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Opening balance | Closing balance | Reason |
| Product quality warranty | 49,871,884.36 | 51,870,435.99 | Expenses for “three guarantees” services |
| Amounts payable for goods returned | 6,591,998.51 | 1,578,759.24 | |
| Pending litigation | 14,356.13 | ||
| Total | 56,463,882.87 | 53,463,551.36 | / |
Other description, including significant assumptions and estimates relative to material provisions:
None
51. Deferred income
Description of deferred income
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Opening balance | Increase | Decrease | Closing balance | Reason |
| Government grants related to assets | 5,905,986.57 | 1,078,195.80 | 4,827,790.77 | The relevant asset is within its service life | |
| Government grants related to income | 2,745,435.69 | 1,500,000.00 | 3,960,980.23 | 284,455.46 | Used for compensation of relevant costs, expenses, or losses in subsequent periods |
| Total | 8,651,422.26 | 1,500,000.00 | 5,039,176.03 | 5,112,246.23 | / |
Other information:
√ Applicable□ N/A
Breakdown of government grants
| Item | Opening balance | Increased government grants for the current period | Amount recognized in current profit or loss | Closing balance | Related to assets/income |
| 8K Ultra High Definition Laser Display Technology Engineering Research Center | 2,905,986.56 | 532,741.26 | 2,373,245.30 | Related to assets | |
| Industry support funds | 3,000,000.01 | 545,454.54 | 2,454,545.47 | Related to assets | |
| R&D of key | 1,000,000.00 | 1,000,000.00 | Related to |
| technologies for ultra high-definition micro laser projector optical engine based on light-emitting ceramic devices | income | ||||
| Trichromatic Laser Display Complete Equipment Production Demonstration Line | 2,412,101.15 | 500,000.00 | 2,912,101.15 | Related to income | |
| Research of trichromatic laser light sources and LCoS optical engine | 333,334.54 | 48,879.08 | 284,455.46 | Related to income | |
| Sub-total | 8,651,422.26 | 1,500,000.00 | 5,039,176.03 | 5,112,246.23 |
Government grants included in the current profit or loss are disclosed in VII.84 of Section X in details.
52. Other non-current liabilities
□ Applicable√ N/A
53. Share capital
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Opening balance | Changes (+, -) | Closing balance | |||||
| Issuance of new shares | Bonus shares | Capitalization of capital reserve | Others | Sub-total | |||
| Total shares | 457,107,538.00 | 457,107,538.00 | |||||
Other information:
None
54. Other equity instruments
(1) Basic information of other financial instruments including outstanding preferred shares and
perpetual bonds at the end of the period
□ Applicable√ N/A
(2) Changes in financial instruments including outstanding preferred shares and perpetual bonds
at the end of the period
□ Applicable√ N/A
Changes of other equity instruments in the current period, reasons for such change and basis for relatedaccounting treatments:
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
55. Capital reserve
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Opening balance | Increase | Decrease | Closing balance |
| Capital premium (Share premium) | 1,363,879,803.31 | 271,501.89 | 1,364,151,305.20 | |
| Other capital reserve | 166,872,312.73 | 20,442,747.19 | 187,315,059.92 | |
| Total | 1,530,752,116.04 | 20,714,249.08 | 1,551,466,365.12 |
Other description, including changes in the current period and reasons for changes:
(1) The total expense of equity-settled share-based payments amounted to RMB 24,996,374.80, in whichRMB 21,649,969.88 was recognized in the capital reserve (other capital reserve) and RMB 3,346,404.92was charged to the amount attributable to minority interests.
(2) With respect to the temporary difference by which the fair value at the end of period of restrictedshares granted by the Company in the current period is greater than the fair value at the grant date, theCompany recognized the decrease in deferred tax assets by RMB 1,349,420.12, the decrease in thecapital reserve (other capital reserve) by RMB 1,207,222.69, and the decrease in the minority interestsby RMB 142,197.43.
(3) The Company acquired minority interests by paying the consideration of RMB 19,734,000.00 for theshares, and acquired shares in the fair value of the identifiable net assets in the amount of RMB20,005,501.89, while the difference RMB 271,501.89 was recognized as capital premium (sharepremium).
56. Treasury shares
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Opening balance | Increase | Decrease | Closing balance |
| Treasury shares | 19,377,297.59 | 19,377,297.59 | ||
| Total | 19,377,297.59 | 19,377,297.59 |
Other description, including changes in the current period and reasons for changes:
None
57. Other comprehensive income
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Opening balance | Amount for 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 expenses | 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 | -4,900,000.00 | -4,900,000.00 | ||||||
| Including: Changes from remeasurement of defined benefit plans | ||||||||
| Other comprehensive | ||||||||
| income that cannot be reclassified to profit or loss under the equity method | ||||||||
| Changes in fair value of investments in other equity instruments | -4,900,000.00 | -4,900,000.00 | ||||||
| Changes in fair value of enterprises’ own credit risks | ||||||||
| II. Other comprehensive income that will be reclassified to profit or loss | 10,636,897.41 | 5,158,805.71 | 6,714,283.50 | -1,555,477.79 | 17,351,180.91 | |||
| Including: Other comprehensive income that will be reclassified to profit or loss under the equity method | -13,180,600.06 | -4,176,328.87 | -4,176,328.87 | -17,356,928.93 | ||||
| Changes in fair value of other debt investments | ||||||||
| Amount of financial assets |
| reclassified to other comprehensive income | ||||||||
| Provision for credit impairment of other debt investments | ||||||||
| Reserve for cash flow hedges | ||||||||
| Exchange differences on translation of financial statements denominated in foreign currencies | 23,817,497.47 | 9,335,134.58 | 10,890,612.37 | -1,555,477.79 | 34,708,109.84 | |||
| Total other comprehensive income | 5,736,897.41 | 5,158,805.71 | 6,714,283.50 | -1,555,477.79 | 12,451,180.91 |
Other description, including adjustments on transferring effective portion of cash flow hedges to amount upon initial recognition of the hedged item:
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 | 75,519,782.06 | 75,519,782.06 | ||
| Total | 75,519,782.06 | 75,519,782.06 |
Surplus reserve description, including changes in the current period and reasons for changes:
None
60. Retained profits
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Current period | Prior year |
| Retained profits at the end of prior period before adjustment | 597,924,451.67 | 545,277,188.08 |
| Total adjusted undistributed profits at the beginning of the period (Add: +; Less: -) | ||
| Retained profits at the beginning of the period after adjustment | 597,924,451.67 | 545,277,188.08 |
| Add: Net profit attributable to owners of the parent company for the period | 74,914,640.95 | 119,440,773.77 |
| Less: Appropriation to statutory surplus reserve | 19,253,913.75 | |
| Appropriation to discretionary surplus reserve | ||
| Appropriation to general risk reserve | ||
| Declaration of dividends on ordinary shares | 24,635,207.05 | 47,539,596.43 |
| Conversion of ordinary shares’ dividends into share capital | ||
| Retained profits at the end of the period | 648,203,885.57 | 597,924,451.67 |
Details of adjustments to undistributed profits at the beginning of the period:
1. As a result of the retrospective adjustment of the Accounting Standards for Business Enterprises andrelated new regulations, undistributed profits at the beginning of the period were affected by RMB 0.00.
2. Retained profits at the beginning of the period were affected by RMB 0.00 due to changes inaccounting policies.
3. Retained profits at the beginning of the period were affected by RMB 0.00 due to the correction ofsignificant accounting errors.
4. Retained profits at the beginning of the period were affected by RMB 0.00 due to changes in thescope of consolidation resulting from business combination involving entities under common control.
5. Retained profits at the beginning of the period were affected by RMB 0.00 in total due to otheradjustments.
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 | ||
| Income | Cost | Income | Cost | |
| Main business | 1,073,249,037.75 | 668,659,467.49 | 1,269,322,202.11 | 884,560,607.88 |
| Other business | ||||
| Total | 1,073,249,037.75 | 668,659,467.49 | 1,269,322,202.11 | 884,560,607.88 |
(2). Description of incomes from contracts
□ Applicable√ N/A
(3). Description of performance obligations
□ Applicable√ N/A
(4). Description of allocation to remaining performance obligations
□ Applicable√ N/A
Other information:
Breakdown of revenue from contracts with customers by category:
| Item | Amount for the current period | Amount for the prior period |
| Main business areas: | ||
| Domestic | 704,902,664.35 | 982,431,749.79 |
| Overseas | 188,845,868.39 | 151,675,564.56 |
| Sub-total | 893,748,532.74 | 1,134,107,314.35 |
| By product: | ||
| Laser optical engine | 269,264,171.31 | 227,366,190.32 |
| Complete laser projector | 529,660,750.51 | 797,685,682.96 |
| Others | 94,823,610.92 | 109,055,441.07 |
| Sub-total | 893,748,532.74 | 1,134,107,314.35 |
| Revenue recognition time: | ||
| Goods (transferred at a time point) | 893,741,128.35 | 1,133,767,224.50 |
| Services (provided during a specific period of time) | 7,404.39 | 340,089.85 |
| Sub-total | 893,748,532.74 | 1,134,107,314.35 |
62. Taxes and surcharges
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Amount for the current period | Amount for the prior period |
| City maintenance and | 1,849,757.98 | 1,854,709.81 |
| construction tax | ||
| Stamp duty | 718,782.33 | 1,328,656.61 |
| Education surcharges | 810,475.02 | 837,797.56 |
| Local education surcharges | 540,316.68 | 596,844.97 |
| Others | 86,419.52 | 18,392.15 |
| Total | 4,005,751.53 | 4,636,401.10 |
Other information:
None
63. Selling expenses
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Amount for the current period | Amount for the prior period |
| Marketing fees | 67,103,262.08 | 56,105,203.98 |
| Employee benefits | 44,813,421.97 | 38,321,847.96 |
| After-sale repair expenses | 8,783,249.44 | 7,794,363.57 |
| Travel expenses | 3,323,826.10 | 1,140,208.55 |
| Advertising and business promotion expenses | 2,606,865.49 | 2,152,634.28 |
| Business entertainment expenses | 891,056.45 | 874,145.73 |
| Other expenses | 15,877,978.49 | 13,913,957.29 |
| Total | 143,399,660.02 | 120,302,361.36 |
Other information:
None
64. Administrative expenses
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Amount for the current period | Amount for the prior period |
| Employee benefits | 34,743,913.52 | 36,480,928.08 |
| Share-based payment expenses | 25,008,586.26 | 44,301,483.42 |
| Service fees | 13,261,395.13 | 11,634,987.32 |
| Depreciation and amortization expenses | 6,559,184.36 | 7,367,554.34 |
| Rent expense | 2,699,984.57 | 2,149,163.28 |
| Other expenses | 4,423,159.98 | 4,081,725.92 |
| Total | 86,696,223.82 | 106,015,842.36 |
Other information:
None
65. R&D expenses
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Amount for the current period | Amount for the prior period |
| Employee benefits | 86,643,213.03 | 76,416,118.90 |
| Material consumption expenses | 11,968,242.66 | 13,749,893.95 |
| Rent expense | 2,027,319.05 | 2,724,452.14 |
| Service fees | 6,014,448.00 | 4,297,638.31 |
| Depreciation and amortization expenses | 7,408,217.43 | 4,958,080.99 |
| Testing expenses | 2,233,677.17 | 4,511,335.54 |
| Patent fees | 1,909,173.76 | 836,908.48 |
| Other expenses | 8,201,851.02 | 7,465,358.06 |
| Total | 126,406,142.12 | 114,959,786.37 |
Other information:
None
66. Financial expenses
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Amount for the current period | Amount for the prior period |
| Interest expenses | 7,061,642.05 | 12,510,421.43 |
| Less: Interest income | -15,604,073.30 | -6,740,942.87 |
| Exchange profit or loss | -9,807,901.42 | -10,026,339.12 |
| Bank service charges | 1,328,926.10 | 902,979.64 |
| Total | -17,021,406.56 | -3,353,880.91 |
Other information:
None
67. Other income
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Amount for the current period | Amount for the prior period |
| Government grants related to assets | 1,078,195.80 | 940,282.23 |
| Government grants related to income | 21,467,825.51 | 18,812,831.21 |
| Refund of transaction fees for withholding individual income taxes | 442,061.07 | 364,144.36 |
| Additional deduction of input VAT | 620,900.93 | 1,448,552.63 |
| Total | 23,608,983.31 | 21,565,810.43 |
Other information:
Government grants recognized in other income in the current period are disclosed in VII.84 of Section Xin details.
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 | -8,071,814.75 | -5,951,760.87 |
| Investment income from disposal of long-term equity investments | -4,611,079.66 | |
| Investment income from held-for-trading financial assets during the holding period | 200,000.00 | |
| Investment income from disposal of held-for-trading financial assets | 5,265,708.55 | 5,795,366.82 |
| Total | -2,806,106.20 | -4,567,473.71 |
Other information:
None
69. Income from net exposure hedges
□ Applicable√ N/A
70. Gains from changes in fair values
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Source of gains from changes in fair values | Amount for the current period | Amount for the prior period |
| Held-for-trading financial assets | -1,634,000.00 | |
| Total | -1,634,000.00 |
Other information:
None
71. Losses of credit impairment
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Amount for the current period | Amount for the prior period |
| Bad debt losses | -3,513,083.07 | 1,393,164.79 |
| Total | -3,513,083.07 | 1,393,164.79 |
Other information:
None
72. Impairment losses of assets
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Amount for the current period | Amount for the prior period |
| I. Bad debt losses | -90,452.65 | -38,217.98 |
| II. Decline in value of inventories | -26,383,931.20 | -19,378,228.52 |
| III. Impairment losses of long-term equity |
| investments | ||
| IV. Impairment losses of investment properties | ||
| V. Impairment losses of fixed assets | -1,833,685.55 | -405,917.49 |
| VI. Losses of contract performance cost | -705,862.34 | |
| Total | -29,013,931.74 | -19,822,363.99 |
Other information:
None
73. Gains on disposal of assets
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Amount for the current period | Amount for the prior period |
| Gains from disposal of fixed assets | 18,395.62 | 106.88 |
| Gains from disposal of right-of-use assets | -3,133.47 | 17,106.28 |
| Total | 15,262.15 | 17,213.16 |
Other information:
□ Applicable√ N/A
74. Non-operating income
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Amount for the current period | Amount for the prior period | Amount included in non-recurring profit or loss for the period |
| Total gains from disposal of non-current assets | 11,482.30 | 7,964.60 | 11,482.30 |
| Including: Gains from disposal of fixed assets | 11,482.30 | 7,964.60 | 11,482.30 |
| Government grants | 9,000,000.00 | 9,000,000.00 | |
| Amounts not required for payment | 233,306.16 | 233,306.16 | |
| Others | 179,559.37 | 159,923.71 | 179,559.37 |
| Total | 9,424,347.83 | 167,888.31 | 9,424,347.83 |
Other information:
□ Applicable√ N/A
75. Non-operating expenses
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Amount for the current period | Amount for the prior period | Amount included in non-recurring profit or loss for the period |
| Total losses from disposal of non-current assets | 242,877.32 | 353,535.44 | 242,877.32 |
| Including: Losses from disposal of fixed assets | 242,877.32 | 353,535.44 | 242,877.32 |
| External donations | 1,011,354.98 | ||
| Penalties and overdue fines | 27,463.52 | 141,821.94 | 27,463.52 |
| Others | 370,921.08 | 5,197.11 | 370,921.08 |
| Total | 641,261.92 | 1,511,909.47 | 641,261.92 |
Other information:
None
76. Income tax expense
(1) Statement of income tax expense
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Amount for the current period | Amount for the prior period |
| Income tax expense in the current period | 8,337,698.37 | 15,688,777.00 |
| Deferred income tax expenses | 10,312,245.27 | 3,580,694.17 |
| Total | 18,649,943.64 | 19,269,471.17 |
(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 | 58,177,409.69 |
| Income tax expense calculated based on statutory/applicable tax rate | 8,726,611.46 |
| Effect of different tax rates of subsidiaries operating in other jurisdictions | -8,719,094.86 |
| Effect of income tax for the period before adjustment | -536,497.80 |
| Effect of non-taxable income | -42,425.30 |
| Effect of non-deductible cost, expense and loss | 237,744.26 |
| Effect of utilizing deductible loss not recognized for deferred tax assets for prior period | -351,326.89 |
| Effect of deductible temporary difference or deductible loss not recognized for deferred tax assets for the current period | 25,128,174.15 |
| Change in the balance of opening deferred tax assets caused by tax rate adjustment | 0.00 |
| Effect of additional deduction of R&D expenses | -10,821,251.40 |
| Others | 5,028,010.02 |
| Income tax expenses | 18,649,943.64 |
Other information:
□ Applicable√ N/A
77. Other comprehensive income
√ Applicable□ N/A
Refer to VII. 57 of Section X for details.
78. Items in cash flow statement
(1). Other cash receipts relating to operating activities
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Amount for the current period | Amount for the prior period |
| Interest income | 15,203,804.27 | 6,586,011.83 |
| Government grants | 31,156,389.47 | 14,967,754.76 |
| Recovery of security deposits | 38,485,289.61 | 9,021,162.77 |
| Non-operating income | 167,768.72 | 78,226.30 |
| Other transaction accounts | 5,824,075.57 | 3,742,646.71 |
| Total | 90,837,327.64 | 34,395,802.37 |
Description of other cash receipts relating to operating activities:
None
(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 |
| Administrative expenses, selling expenses, and R&D expenses paid in cash | 133,812,521.03 | 135,601,238.70 |
| Non-operating expenses | 369,426.97 | 138,934.57 |
| Payment of security deposits | 14,513,684.21 | 67,068,694.27 |
| Service charges | 777,510.79 | 757,068.27 |
| Other transaction accounts | 3,961,686.89 | 2,730,798.00 |
| Total | 153,434,829.89 | 206,296,733.81 |
Description of other cash payments relating to operating activities:
None
(3). Other cash receipts relating to investing activities
□ Applicable√ N/A
(4). Other cash payments relating to operating activities
□ Applicable√ N/A
(5). Other cash receipts relating to financing activities
□ Applicable√ N/A
(6). Other cash payments relating to financing activities
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Amount for the current period | Amount for the prior period |
| Dividend payments | 23,814.21 |
| Actual lease payment | 17,383,232.80 | 14,493,029.54 |
| Share repurchase payment | 3,211,260.13 | |
| Total | 17,407,047.01 | 17,704,289.67 |
Description of other cash payments relating to financing activities:
None
79. Supplementary information to the cash flow statement
(1) Supplementary information to the cash flow statement
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Supplemental information | Amount for the current period | Amount for the prior period |
| 1. Reconciliation of net profit to cash flow from operating activities: | ||
| Net profit | 39,527,466.05 | 18,539,942.30 |
| Add: Provision for impairment of assets | 29,013,931.74 | 19,822,363.99 |
| Impairment losses of credit | 3,513,083.07 | -1,393,164.79 |
| Depreciation of fixed assets, depletion of oil and gas assets, depreciation of productive biological assets | 59,926,542.86 | 60,956,631.02 |
| Amortization of right-of-use assets | 14,899,916.76 | 13,511,079.53 |
| Amortization of intangible assets | 2,121,924.37 | 1,599,345.03 |
| Amortization of long-term prepaid expenses | 1,956,826.99 | 3,680,782.65 |
| Losses on disposal of fixed assets, intangible assets and other long-term assets (gains are indicated by “-”) | -15,262.15 | -17,213.16 |
| Losses on disposal of fixed assets (gains are indicated by “-”) | 231,395.02 | 345,570.84 |
| Losses on changes in fair values (gains are indicated by “-”) | 1,634,000.00 | |
| Financial expenses (income is indicated by “-”) | 3,338,040.63 | 2,484,082.32 |
| Investment losses (income is indicated by “-”) | 2,806,106.20 | 4,567,473.71 |
| Decrease in deferred tax assets (increase is indicated by “-”) | 10,312,245.28 | 3,580,734.09 |
| Increase in deferred tax liabilities (decrease is indicated by “-”) | ||
| Decrease in inventories (increase is indicated by “-”) | 104,726,621.15 | -33,033,292.19 |
| Decrease in receivables from operating activities (increase is indicated by “-”) | 18,233,904.75 | 36,305,146.46 |
| Increase in payables from operating activities (decrease is indicated by “-”) | -200,944,159.73 | -255,297,259.11 |
| Others | 25,090,249.13 | 44,160,417.64 |
| Net cash flow from operating activities | 114,738,832.13 | -78,553,359.67 |
| 2. Significant investing and financing activities |
| that do not involve cash receipts and payments: | ||
| Conversion of debt into capital | ||
| Convertible corporate bonds due within 1 year | ||
| Fixed assets acquired under finance leases | ||
| 3. Net changes in cash and cash equivalents: | ||
| Closing balance of cash | 1,228,232,134.57 | 951,480,989.53 |
| Less: Opening balance of cash | 1,254,582,403.12 | 891,195,166.73 |
| Add: Closing balance of cash equivalents | ||
| Less: Opening balance of cash equivalents | ||
| Net increase in cash and cash equivalents | -26,350,268.55 | 60,285,822.80 |
(2) Net cash paid to acquire subsidiaries for the current period
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Amount | |
| Cash or cash equivalents paid in the period for business combination occurring in the period | 11,840,400.00 |
| Shenzhen Qianhai Taishi Investment Partnership (LP) | 11,840,400.00 |
| Less: Cash and cash equivalents held by subsidiaries at the acquisition date | 9,034.84 |
| Shenzhen Qianhai Taishi Investment Partnership (LP) | 9,034.84 |
| Add: Cash or cash equivalents paid in the prior period for business combination occurring in the period | |
| Net cash paid for acquiring subsidiaries | 11,831,365.16 |
Other information:
None
(3) Net cash receipts from disposal of subsidiaries for the current period
□ Applicable√ N/A
(4) Composition of cash and cash equivalents
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Closing balance | Opening balance |
| I. Cash | 1,228,232,134.57 | 1,254,582,403.12 |
| Including: Cash on hand | 3,346.05 | 5,479.42 |
| Bank deposits that can be paid at any time | 1,217,428,374.02 | 1,241,921,379.19 |
| Other monetary funds that can be paid at any time | 10,800,414.50 | 12,655,544.51 |
| 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 | 1,228,232,134.57 | 1,254,582,403.12 |
| Including: Restricted cash and cash equivalents of the parent company or subsidiaries within the Group |
Other information:
□ Applicable√ N/A
80. Notes to items in the statement of changes in owners’ equity
Describe matters such as the names and the adjusted amounts of the items included in “others” in respectof adjustments to the closing balances of the prior year:
□ Applicable√ N/A
81. Assets with limited ownership or use right
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Closing balance of book value | Reason |
| Bank deposits | 40,000,000.00 | Term deposits |
| Bank deposits | 5.49 | Accounts not handling for a long time |
| Other monetary funds | 10,961,787.42 | Security deposits |
| Intangible assets | 275,524,999.80 | Mortgage collateral |
| Total | 326,486,792.71 | / |
Other information:
None
82. Foreign currency monetary items
(1). Foreign currency monetary items
√ Applicable□ N/A
Unit: Yuan
| Item | Closing balance of foreign currency | Exchange rate | Closing balance of RMB equivalent |
| Monetary funds | 297,486,092.24 | ||
| Including: USD | 41,026,579.84 | 7.2258 | 296,449,860.61 |
| GBP | 15,782.11 | 9.1432 | 144,298.99 |
| HKD | 297,205.06 | 0.9220 | 274,017.12 |
| Euro | 74,738.72 | 7.8771 | 588,724.37 |
| Others | 29,191.15 | ||
| Accounts receivable | 83,635,231.71 | ||
| Including: USD | 11,394,715.89 | 7.2258 | 82,335,938.08 |
| Euro | 161,644.37 | 7.8771 | 1,273,288.87 |
| Others | 26,004.76 | ||
| Accounts payable | 44,736,752.22 | ||
| Including: USD | 6,182,542.60 | 7.2258 | 44,673,816.31 |
| JPY | 1,256,356.25 | 0.0501 | 62,935.91 |
Other information:
None
(2). Description of overseas operating entities, including significant overseas operating entities, ofwhich the major operation place, functional currency and choosing basis as well as the reasonfor change of functional currency should be disclosed
√ Applicable□ N/A
| Item | Major overseas operation place | Functional currency | Basis of choice |
| Appotronics Hong Kong Limited | Hong Kong | USD | Common currency |
| Appotronics USA, Inc. | USA | USD | Local currency |
| JoveAI Limited | Cayman Islands | USD | Common currency |
| JoveAI Innovation, Inc. | USA | USD | Local currency |
| Formovie Technology Inc. | USA | USD | Local currency |
| Formovie Limited | Hong Kong | USD | Common currency |
| JoveAI Asia Company Limited | Vietnam | VND | Local currency |
| Wemax LLC | USA | USD | Local currency |
| Hongkong Orange Juice Energy Technology Co., Limited | Hong Kong | USD | Common currency |
| Wemax Inc. | USA | USD | Local currency |
| Appotronics International Limited | Hong Kong | USD | Common currency |
83. Hedge
□ Applicable√ N/A
84. Government grants
(1). Basic information of government grants
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Category | Amount | Item presented | Amount recognized in current profit or loss |
| Government grants related to assets | Other income | 1,078,195.80 | |
| Government grants related to income and used for compensation of the Company’s relevant costs or losses in subsequent periods | 1,500,000.00 | Other income | 3,960,980.23 |
| Government grants related to income and used for compensation of the Company’s relevant costs or losses that have been incurred | 27,968,381.50 | Other income, non-operating income | 27,941,857.82 |
| Interest subsidies | 6,084,300.00 | Financial expenses | 6,084,300.00 |
(2). Refund of government grants
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Amount | Reason |
| Trichromatic Display Complete Equipment Production Demonstration Line | 992,951.47 | Refund of remaining funds |
| Sub-total | 992,951.47 |
Other information
（1） Government grants related to assets
| Item | Opening deferred income | Increase | Amortization | Closing deferred income | Amortization of items presented in the current period |
| 8K Ultra High Definition Laser Display Technology Engineering Research Center | 2,905,986.56 | 532,741.26 | 2,373,245.30 | Other income |
| Industry support funds | 3,000,000.01 | 545,454.54 | 2,454,545.47 | Other income | |
| Sub-total | 5,905,986.57 | 1,078,195.80 | 4,827,790.77 |
（2） Government grants related to income and used for compensation of the Company’s relevant
costs or losses in subsequent periods
| Item | Opening deferred income | Increase | Amortization | Closing deferred income | Amortization of items presented in the current period |
| R&D of key technologies for ultra high-definition micro laser projector optical engine based on light-emitting ceramic devices | 1,000,000.00 | 1,000,000.00 | Other income | ||
| Trichromatic Laser Display Complete Equipment Production Demonstration Line | 2,412,101.15 | 500,000.00 | 2,912,101.15 | Other income | |
| Research of trichromatic laser light sources and LCoS optical engine | 333,334.54 | 48,879.08 | 284,455.46 | Other income | |
| Sub-total | 2,745,435.69 | 1,500,000.00 | 3,960,980.23 | 284,455.46 |
（3） Government grants related to income and used for compensation of the Company’s relevant
costs or losses that have been incurred
| Item | Amount | Item presented | Description |
| Refunds of value-added taxes | 4,431,505.74 | Other income | |
| Rewards for Employment Stability and Subsidy for New | 40,200.00 | Other income |
| Employees | |||
| Refund of service charges for “three withholdings” | 442,061.07 | Other income | |
| Shenzhen one-off subsidy for job expansion in 2022 (10th batch) | 3,000.00 | Other income | |
| Maternity Grants from Shenzhen Social Security Bureau | 12,459.49 | Other income | Provisions of Guangdong for Maternity Insurance of Employees, Shenzhen Social Insurance Fund Administration |
| 2022 Subsidy for Housing Rents for Talents of Enterprises | 370,000.00 | Other income | 2022 Talent Housing Rent Agreement of Nanshan District |
| 2022 Shenzhen Special Funds for Intellectual Property Rights | 1,000,000.00 | Other income | Announcement of Shenzhen Administration for Market Regulation on 2022 Candidate Projects for the Special Funds for Intellectual Property Rights (For Protection), Shenzhen Administration for Market Regulation |
| Key enterprise research institute for laser display | 10,000,000.00 | Other income | Disclosure of Shenzhen Science and Technology Innovation Commission on the Candidate Subsidy Projects for Key Enterprise Research Institutes for 2023 |
| Subsidy for copyright registration | 18,900.00 | Other income | Notice on Starting the Application (Third Batch) of Projects for Sub-special Funds under the Special Fund for Independent Innovation Industry Development in Nanshan District (2022) |
| 2022 Reward for Economic Contribution | 50,000.00 | Other income | |
| Subsidy for trademark registration under 2022 Shenzhen intellectual property special fund | 14,000.00 | Other income | Notice of Shenzhen Administration for Market Administration on Handling the Subsidy Collection Procedures for Verified Projects on Shenzhen Intellectual Property Special Fund in 2022, Shenzhen Administration for Market Regulation |
| 2022 second and third batch of | 50,000.00 | Other income | Announcement of Candidate |
| subsidy for daily management expenditures of post-doctor stations | Entities Qualified for Subsidy for Daily Management Expenditures in Shenzhen (Second Batch in 2022) - Announcement to Society, website of Shenzhen Human Resources and Social Security Bureau | ||
| 2022 Shenzhen Special Fund in the Standard Field | 30,000.00 | Other income | Notice on the Reward Scheme of Special Funds for Standard Field of Shenzhen in 2022, Shenzhen Administration for Market Regulation |
| Subsidy for Social Security and Post for Employment of the Poor Population | 62,731.52 | Other income | |
| Special funds for the development of cultural industry (original research and development projects) | 1,500,000.00 | Other income | 2023 Announcement for Candidate Projects for the Special Fund for the Development of the Cultural Industry, Shenzhen City Bureau of Culture, Radio, Television, Tourism and Sports |
| Reward for Production Expansion and Efficiency Improvement of Industrial Enterprises for the First Half of 2022 | 310,000.00 | Other income | Notice of Shenzhen Bureau of Industry and Information Technology on the Disclosure for the First Half of 2022 Proposed Subsidy Scheme for Enterprises’ Production Expansion and Efficiency Improvement |
| Subsidy for Employment of the Poor Population | 30,000.00 | Other income | |
| Payment of industry support funds | 9,000,000.00 | Non-operating income | Investment agreement |
| Subsidy under the 2023 Nanshan District Scientific Reward and Support Plan (First Batch) | 200,000.00 | Other income | Notice on Filing for Projects under Joint Support Plans for Technology Breakthrough in 2023 |
| Rewards for Enterprises Qualified as Enterprises above Designated Size | 250,000.00 | Other income | Announcement of Chongqing Liangjiang New Area Operation Bureau on Candidate Enterprises Qualified for Rewards under Policies for Stabilizing the Macro Economy (Second Batch) |
| Special Funds for Service | 127,000.00 | Other income | Letter of Chongqing Commission |
| Trading | of Commerce on Communication about Review of International Service Trading Projects under the Special Development Fund | ||
| Sub-total | 27,941,857.82 |
（4） Interest subsidies
| Item | Opening deferred income | Increase | Amortization | Closing deferred income | Amortization of items presented in the current period |
| Interest subsidies | 6,084,300.00 | 6,084,300.00 | Financial expenses | ||
| Sub-total | 6,084,300.00 | 6,084,300.00 |
85. Others
□ Applicable√ N/A
VIII. Changes in scope of consolidation
1. Business combination not involving enterprises under common control
√ Applicable□ N/A
(1). Business combinations not involving enterprises under common control in the currentperiod
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Name of acquiree | Time point of obtaining equity | Cost of equity acquisition | Ratio of acquired equity interests (%) | Method of obtaining equity | Acquisition date | Basis for determining the acquisition date | Incomes of the acquiree from the acquisition date to the end of the period | Net profit of the acquiree from the acquisition date to the end of the period |
| Shenzhen Qianhai Taishi Investment Partnership (LP) | May 15, 2023 | 19,734,000.00 | 100.00 | Acquisition | May 15, 2023 | Share Transfer Agreement | 0.00 | 75.57 |
Other information:
None
(2). Combination costs and goodwill
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Combination costs | Shenzhen Qianhai Taishi Investment Partnership (LP) |
| -- Cash | 19,734,000.00 |
| -- Fair value of non-cash assets | |
| -- Fair value of debts issued or undertaken | |
| -- Fair value of equity securities issued | |
| -- Fair value of contingent consideration | |
| -- Fair value at the acquisition date of the equity interests held prior to the acquisition date | |
| --Others | |
| Total combination costs | 19,734,000.00 |
| Less: Acquired shares in the fair value of the identifiable net assets | 20,005,501.89 |
| Differences between amounts of goodwill/combination costs and the acquired shares in the fair value of the identifiable net assets | -271,501.89 |
Description of the method for determining the fair value of combination costs, and the contingentconsiderations and changes thereof:
N/AMain reasons of large-amount goodwill:
N/AOther information:
During the reporting period, the Company acquired Shenzhen Qianhai Taishi Investment Partnership(LP) through business combination not involving enterprises under common control. In essence, thistransaction is acquiring the minority interests held by the subsidiary CINEAPPO Laser CinemaTechnology (Beijing) Co., Ltd. The difference above is recognized in capital reserve - share premium.
(3). Identifiable assets and liabilities of the acquiree at the acquisition date
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Shenzhen Qianhai Taishi Investment Partnership (LP) | ||
| Fair value at the acquisition date | Carrying amount at the acquisition date | |
| Assets: | 20,005,501.89 | 4,759,034.84 |
| Monetary funds | 9,034.84 | 9,034.84 |
| Long-term equity investment | 19,996,467.05 | 4,750,000.00 |
| Net assets | 20,005,501.89 | 4,759,034.84 |
| Acquired net assets | 20,005,501.89 | 4,759,034.84 |
Method for determining the fair value of identifiable assets and liabilities:
Long-term equity investments are determined according to the net assets and shareholding ratio of theinvestee, and other assets and liabilities are determined according to the book values.Contingent liabilities of the acquiree that are taken in the business combination:
NoneOther information:
None
(4). Gains or losses from the equity interests held prior to the acquisition date that areremeasured at fair valueWhether there are transactions for the purpose of implementing business combination via multipletransactions and obtaining the control during the reporting period
□ Applicable√ N/A
(5). Description about the failure in reasonably determining the combination considerations orthe fair values of the identifiable assets and liabilities of the acquiree at the acquisition date or atthe end of the combination period
□ Applicable√ N/A
(6). Other information
□ Applicable√ N/A
2. Business combination involving entities under common control
□ Applicable√ N/A
3. Counter purchase
□ Applicable√ N/A
4. Disposal of subsidiaries
Single disposal of investments in subsidiaries, i.e. the loss of control
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
5. Changes in scope of consolidation for other reasons
Description of changes in the scope of consolidation for other reasons (e.g., new subsidiaryestablishment, subsidiary liquidation, etc.) and the relevant information:
□ Applicable√ N/A
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 | Shareholding ratio (%) | Acquisition method | |
| Direct | Indirect | |||||
| Shenzhen Appotronics Laser Display Technology Co., Ltd. | Shenzhen | Shenzhen | R&D and sales of laser display products | 100.00 | Business combination involving enterprises under common control | |
| Appotronics Technology (Changzhou) Co., Ltd. | Changzhou | Changzhou | Technical research and development of projection equipment, screen and electronic computer | 100.00 | Establishment | |
| Shenzhen Appotronics Software Technology Co., Ltd. | Shenzhen | Shenzhen | Technology development and sales of computer software and hardware | 100.00 | Establishment | |
| Shenzhen Appotronics Display Device Co., Ltd. | Shenzhen | Shenzhen | Technical development, sales, and technical services for display products; import and export business | 100.00 | Establishment | |
| Wemax LLC | USA | USA | Sales of laser equipment | 100.00 | Establishment | |
| Shenzhen Appotronics Xiaoming Technology Co., Ltd. | Shenzhen | Shenzhen | Development, consultation and transfer of laser display technology | 100.00 | Establishment | |
| Shenzhen Appotronics Home Line Technology Co., Ltd. | Shenzhen | Shenzhen | Software development related to semiconductor optoelectronic products | 100.00 | Establishment | |
| Shenzhen Appotronics Laser Technology Co., Ltd. | Shenzhen | Shenzhen | Software development for semiconductor optoelectronic devices | 100.00 | Establishment | |
| Tianjin Bonian Film Partnership (LP) | Tianjin | Tianjin | No specific business conducted | 99.00 | 1.00 | Business combination not involving enterprises under common control |
| Beijing Orient Appotronics Technology Co., Ltd. | Beijing | Beijing | Technology promotion; computer systems, application software services | 59.00 | Establishment | |
| Qingda Appotronics (Xiamen) Technology Co., Ltd. | Shenzhen | Xiamen | Information technology consulting services | 51.00 | Establishment | |
| Formovie (Chongqing) Innovative | Chongqing | Chongqing | Technology and software development | 39.19 | Establishment | |
| Technology Co., Ltd. | ||||||
| Fengmi (Beijing) Technology Co., Ltd. | Beijing | Beijing | Technology and software development | 39.19 | Establishment | |
| Chongqing Guangbo Ecommerce Co., Ltd. | Chongqing | Chongqing | No specific business conducted | 39.19 | Establishment | |
| Chongqing Ewei Ecommerce Co., Ltd. | Chongqing | Chongqing | No specific business conducted | 39.19 | Establishment | |
| Shenzhen Orange Juice Energy Technology Co., Ltd. | Shenzhen | Shenzhen | Technology and software development | 33.31 | Establishment | |
| Hongkong Orange Juice Energy Technology Co., Limited | Hong Kong | Hong Kong | Engaged in import and export business | 33.31 | Establishment | |
| Wemax Inc. | USA | USA | Engaged in import and export business | 33.31 | Establishment | |
| Shenzhen Weiwoqi Trading Co., Ltd. | Chongqing | Shenzhen | No specific business conducted | 33.31 | Business combination not involving enterprises under common control | |
| Yaoyouguang (Chongqing) Technology Co., Ltd. | Chongqing | Chongqing | No specific business conducted | 39.19 | Establishment | |
| Formovie Limited | Hong Kong | Hong Kong | No specific business conducted | 39.19 | Establishment | |
| Formovie Technology Inc. | USA | USA | No specific business conducted | 39.19 | Establishment | |
| CINEAPPO Laser Cinema Technology (Beijing) Co., Ltd. | Beijing | Beijing | Research and development, production, technical services, sales and lease of laser cinema projection equipment | 24.84 | 42.96 | Business combination involving enterprises under common control |
| Appotronics Hong Kong Limited | Hong Kong | Hong Kong | Production, research, and development of semiconductor optoelectronic products, sales and consulting, investment and video content value-added services | 100.00 | Establishment | |
| Appotronics USA, Inc. | USA | USA | R&D, manufacture and sales of semiconductor optoelectronic products | 100.00 | Business combination involving enterprises under common control | |
| JoveAI Limited | Cayman Islands | Cayman Islands | No specific business conducted | 64.29 | Establishment | |
| JoveAI Innovation, Inc. | USA | USA | R&D of laser display software system | 64.29 | Establishment | |
| JoveAI Asia Company Limited | Vietnam | Vietnam | Technical research and development of projection equipment, screen and electronic computer | 64.29 | Establishment | |
| Appotronics International Limited | Hong | Hong Kong | No specific business conducted | 100.00 | Establishment |
| Kong | ||||||
| Appotronics Intelligent Manufacturing (Shenzhen) Co., Ltd. | Shenzhen | Shenzhen | No specific business conducted | 100.00 | Establishment | |
| Shenzhen Qianhai Taishi Investment Partnership (LP) | Shenzhen | Shenzhen | No specific business conducted | 70.00 | 30.00 | Business combination not involving enterprises under common control |
Description of the difference between the proportion of shareholding and the proportion of voting rights in a subsidiary:
NoneBasis for holding half of the voting rights or below but still controlling the investee, and holding over half voting rights but having no control over the investee:
Fengmi (Beijing) Technology Co., Ltd., Formovie Technology Inc., Formovie Limited, Chongqing Ewei Ecommerce Co., Ltd., Chongqing Guangbo EcommerceCo., Ltd., and Yaoyouguang (Chongqing) Technology Co., Ltd. are wholly-owned subsidiaries of Formovie (Chongqing) Innovative Technology Co., Ltd.;Hongkong Orange Juice Energy Technology Co., Limited, Wemax Inc., and Weiwoqi Trading Co., Ltd. are wholly-owned subsidiaries of Shenzhen Orange JuiceEnergy Technology Co., Ltd.; Shenzhen Orange Juice Energy Technology Co., Ltd. is a controlled subsidiary of Formovie (Chongqing) Innovative Technology Co.,Ltd.The Company and Shenzhen Fengye Investment Consulting Limited Partnership (Limited Partnership), a party acting in concert with the Company, hold a total of
53.6250% voting rights in Formovie (Chongqing) Innovative Technology Co., Ltd., for which the voting rights are exercised according to the opinions of theCompany. Since the voting rights are sufficient to exercise significant influence on the resolution of the general meeting of Formovie (Chongqing) InnovativeTechnology Co., Ltd., the Company becomes the controlling shareholder of Formovie (Chongqing) Innovative Technology Co., Ltd.Basis for controls over significant structured entities included in consolidation scope:
NoneBasis to determine the company acts as the agent or the principal:
NoneOther information:
None
(2). Significant non-wholly subsidiaries
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Subsidiary name | Minority shareholdings ratio (%) | Profit or loss attributable to minority shareholders for the current period | Dividends declared for distribution to minority shareholders in the current period | Closing balance of minority interests |
| Formovie (Chongqing) Innovative Technology Co., Ltd. | 60.81 | -49,013,347.97 | -98,871,403.61 |
| CINEAPPO Laser Cinema Technology (Beijing) Co., Ltd. | 32.20 | 16,806,569.59 | 11,040,000.00 | 143,846,043.06 |
Description of the difference between the proportion of shareholding by minority shareholders and their proportion of voting rights in a subsidiary:
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
(3). Significant financial information of significant non-wholly subsidiaries
√ Applicable□ N/A
Unit: 0’000 Yuan Currency: RMB
| Subsidiary name | 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 | |
| Formovie (Chongqing) Innovative Technology Co., Ltd. | 72,686.24 | 7,066.60 | 79,752.84 | 64,264.26 | 31,062.34 | 95,326.60 | 87,088.07 | 7,121.89 | 94,209.96 | 78,428.22 | 23,708.90 | 102,137.12 |
| CINEAPPO Laser Cinema Technology (Beijing) Co., Ltd. | 27,171.27 | 53,960.97 | 81,132.24 | 35,367.05 | 1,092.50 | 36,459.55 | 23,247.54 | 61,872.57 | 85,120.11 | 36,586.71 | 5,659.82 | 42,246.53 |
| Subsidiary name | 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 | |
| Formovie (Chongqing) Innovative Technology Co., Ltd. | 37,600.18 | -7,921.68 | -8,124.01 | -5,369.48 | 60,958.84 | -4,658.22 | -4,666.57 | -11,314.58 |
| CINEAPPO Laser | 24,187.64 | 4,716.46 | 4,716.46 | 11,989.67 | 16,109.94 | 636.46 | 636.46 | 3,727.18 |
Cinema Technology(Beijing) Co., Ltd.
Other information:
None
(4). Significant limitations on use of the group assets and payment of the group debts:
□ Applicable√ N/A
(5). Financial or other support provided to structured entities included in consolidated financial statements:
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
2. Changes of shares of owners’ equity in subsidiaries but continue to remain control over transactions of subsidiaries
√ Applicable□ N/A
(1). Description of changes in the share in the owner’s equity of subsidiaries
√ Applicable□ N/A
| Subsidiary name | Date of change | Shareholding ratio prior to change | Shareholding ratio after change |
| CINEAPPO Laser Cinema Technology (Beijing) Co., Ltd. | May 15, 2023 | 63.20% | 67.80% |
(2). Effect of the transaction on the minority interests and the equity attributable to owners of the parent company
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| CINEAPPO Laser Cinema Technology (Beijing) Co., Ltd. | |
| Acquisition cost/disposal consideration | |
| -- Cash | 19,734,000.00 |
| -- Fair value of non-cash assets | |
| Total acquisition cost/disposal consideration | 19,734,000.00 |
| Less: Share in net assets of subsidiaries calculated based on the acquired/disposed shareholding ratio | 20,005,501.89 |
| Difference | -271,501.89 |
| Including: Adjustment to capital reserves | -271,501.89 |
| Adjustment to surplus reserves | |
| Adjustment to retained profits |
Other information
□ Applicable√ N/A
3. Equity in joint ventures or associates
√ Applicable□ N/A
(1). Significant associates or joint ventures
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Associates or joint ventures | Principal operation place | Registration place | Business nature | Shareholding ratio (%) | Accounting treatment method for investments in joint ventures or associates | |
| Direct | Indirect | |||||
| GDC Technology Limited (BVI) | Asia and North America | British Virgin Islands | R&D, production, and sales of digital cinema servers and cinema management system | 44.00 | Accounting for under equity method | |
Description of the difference between the proportion of shareholding and the proportion of voting rights in joint ventures or associates:
NoneBasis that the Company owns less than 20% voting rights but may exercise major impact, or that the Company owns 20% or over voting rights but does not havemajor impact:
None
(2). Major financial information of significant joint ventures
□ Applicable√ N/A
(3). Major financial information of significant associates
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Closing balance/Amount for the current period | Opening balance/Amount for the prior period | |
| GDC Technology Limited (BVI) | GDC Technology Limited (BVI) | |
| Current assets | 506,702,638.76 | 552,730,874.23 |
| Non-current assets | 36,851,993.25 | 52,568,431.68 |
| Total assets | 543,554,632.01 | 605,299,305.91 |
| Current liabilities | 202,634,110.90 | 240,966,036.37 |
| Non-current liabilities | 170,431,610.33 | 172,710,379.48 |
| Total liabilities | 373,065,721.23 | 413,676,415.85 |
| Minority interests | ||
| Interests attributable to shareholders of the parent company | 170,488,910.78 | 191,622,890.06 |
| Share of net assets calculated by ownership percentage | 75,015,120.74 | 84,314,071.63 |
| Adjustment | ||
| --Goodwill | 77,772,341.43 | 77,772,341.43 |
| --Unrealized profits for insider transactions | -517,974.63 | -797,530.34 |
| --Others | ||
| Book value of investment of associates | 156,523,146.05 | 162,394,917.57 |
| Fair values of equity investments in associates having publicly quoted prices | ||
| Operating income | 121,512,899.31 | 113,618,609.56 |
| Net profit | -18,317,067.87 | -19,899,972.82 |
| Net profit of discontinued operations | ||
| Other comprehensive income | -9,491,656.52 | -2,383,768.26 |
| Total comprehensive income | -27,808,724.38 | -22,283,741.07 |
| Dividends received from associates in the current year |
Other informationNone
(4). Summary financial information of insignificant joint ventures and associates
□ Applicable√ N/A
(5). Descriptions of significant limitations over the ability of joint ventures or associates to transfer funds to the Company
□ Applicable√ N/A
(6). Excessive loss of joint venture or associates
□ Applicable√ N/A
(7). Unrecognized commitment relating to investments in joint ventures
□ Applicable√ N/A
(8). Contingent liabilities relating to investments in joint ventures or associates
□ Applicable√ N/A
4. Significant joint operations
□ Applicable√ N/A
5. Interests in structured entities that are not included in consolidated financial statementsDescription of structured entities that are not included in consolidated financial statements:
□ Applicable√ N/A
6. Others
□ Applicable√ N/A
X. Risks associated with financial instruments
√ Applicable□ N/A
The Company’s risk management objectives are to achieve a proper balance between risks and yield, minimize the adverse impacts of risks on the Company’soperation performance, and maximize the benefits of the shareholders and other stakeholders. Based on these risk management objectives, the Company’s basic riskmanagement strategy is to identify and analyze its exposure to various risks, establish an appropriate minimum tolerance to risk, implement risk management, andmonitor regularly and effectively these exposures to ensure the risks are monitored at a certain level.
The Company is exposed to various risks associated with financial instruments in its daily routines, primarily including credit risk, liquidity risk and marketrisk. The management has reviewed and approved policies to manage these risks, summarized as below.
(I) Credit risk
Credit risk refers to the risk that a party of the financial instrument will default on its obligations resulting in financial loss to the counter-party.
1. Management of credit risk
(1) Evaluation of credit risk
The Company assesses at each balance sheet date whether the credit risk of the underlying financial instruments has increased significantly since initialrecognition. In determining whether the credit risk has increased significantly since initial recognition, the Company considers reasonable and supportableinformation that is available without undue additional cost or effort, including quantitative and qualitative analysis based on historical data, ranking of externalcredit risks and forward-looking information. The Company compares the risk of a default occurring on a financial instrument as at the balance sheet date with therisk of a default occurring on the financial instrument as at the date of initial recognition based on individual financial instrument or a group of financial instrumentswith similar credit risk characteristic, to determine the 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 one or more of the following quantitative and qualitativecriteria are met:
1) The quantitative criterion primarily refers to a certain percentage of increase in the probability of default over the remaining life of the financial instrumentsas of the balance sheet date when comparing with that at initial recognition of the financial instruments;
2) The qualitative criterion includes, inter alia, adverse material changes in business or financial conditions that are expected to cause a significant decrease inthe debtor’s ability to meet its debt obligations, and an actual or expected significant adverse change in the technological, market, economic, or legal environment ofthe debtor that results in a significant decrease in the debtor’s ability to meet its debt obligations.
(2) Definition of defaulted or credit-impaired assets
A financial asset is defined as defaulted when the financial instrument meets one or more conditions stated as below, and the criterion of defining defaultedasset 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 financial difficulty, has granted to the debtor a concession that thecreditor would not otherwise consider.
2. Measurement of ECL
Key parameters to measure ECL include the probability of default, loss given default and the exposure at default. The Company established models of theprobability of default, loss given default and the exposure at default on the basis of qualitative analysis on historical statistical data (such as counterparty ranking,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 impairment of financial instruments can refer to the description inVII 4, 5, 6, 8, 10 and 16 of Section X.
4. Credit risk exposure and credit risk concentration
The Company’s credit risk is primarily from monetary funds and receivables. In order to control the risks associated with aforementioned items, the Companyhas taken the following measures.
(1) Monetary funds
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, and selects to deal with approved and creditworthy customerssubject to the results of the credit assessment with monitoring the balance of its receivables, so as to ensure that the Company is not exposed to significant risk ofbad debt.
No collateral is required since the Company only deals with third parties that are approved and creditworthy. The concentrated credit risks are managed bycustomers. As of June 30, 2023, the Company is exposed to certain concentration of credit risks, as the Company’s accounts receivable from top 5 customers haveaccounted for 61.06% of the total balance of accounts receivable (December 31, 2022: 56.87%). The Company held no collateral or other credit ranking measuresfor the balance of accounts receivable.
The maximum exposure to the Company is the book value of each financial asset in the balance sheet.
(II) Liquidity riskLiquidity risk refers to the risk that the Company is in shortage of funds in performing obligations that are settled by delivering cash or another financial asset.Liquidity risk may arise from an inability to sell a financial asset at fair value as soon as possible, a counterparty’s inability to pay its contractual liabilities, theaccelerated 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 using various financing measures such as notes settlement andbank loans comprehensively and adopting both long-term and short-term financing methods to optimize the financing structure. The Company has received creditfacilities from a number of commercial banks to satisfy its working capital requirements and 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 | 808,021,579.61 | 876,783,006.60 | 318,094,678.07 | 452,061,512.96 | 106,626,815.57 |
| Notes payable | 80,254,013.57 | 80,254,013.57 | 80,254,013.57 | ||
| Accounts payable | 275,507,953.57 | 275,507,953.57 | 275,507,953.57 | ||
| Other payables | 119,907,648.52 | 119,907,648.52 | 119,907,648.52 | ||
| Lease liabilities | 58,691,221.37 | 61,690,587.34 | 33,365,802.29 | 25,515,052.58 | 2,809,732.47 |
| Sub-total | 1,342,382,416.64 | 1,414,143,209.60 | 827,130,096.02 | 477,576,565.54 | 109,436,548.04 |
(Continued to above table)
| Item | Closing balance of the prior year | ||||
| Book value | Undiscounted contract amount | Within 1 year | 1-3 years | Over 3 years | |
| Bank borrowings | 680,999,644.99 | 741,583,550.58 | 294,187,405.68 | 302,318,773.93 | 145,077,370.97 |
| Notes payable | 201,299,388.57 | 201,299,388.57 | 201,299,388.57 | ||
| Accounts payable | 276,845,321.28 | 276,845,321.28 | 276,845,321.28 | ||
| Other payables | 56,662,357.08 | 56,662,357.08 | 56,662,357.08 | ||
| Item | Closing balance of the prior year | ||||
| Book value | Undiscounted contract amount | Within 1 year | 1-3 years | Over 3 years | |
| Lease liabilities | 64,661,633.09 | 68,598,988.87 | 30,342,348.86 | 38,256,640.01 | |
| Sub-total | 1,280,468,345.01 | 1,344,989,606.38 | 859,336,821.47 | 340,575,413.94 | 145,077,370.97 |
(III) Market riskMarket risk refers to the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market riskmainly includes interest rate risk and currency risk.
1. Interest rate risk
Interest rate risk is the risk that the fair value or 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 interest rate and to the risk of cash value interest rate due tofinancial instruments with a floating interest rate. The Company determines the proportion between the fixed-rate financial instruments and the floating-ratefinancial instruments based on market conditions, and maintains appropriate portfolios of financial instruments through regular review and monitoring. The cashflow interest rate risk exposed to the Company relates primarily to the Company’s floating-rate interest-bearing bank borrowings.As at June 30, 2023, the principal of the Company’s floating-rate interest-bearing bank borrowings amounted to RMB 507 495,776.70 (December 31, 2022:
RMB 650,205,770.70). On the basis of the assumption that the interest rate has changed 10 basic points, where all other variables are held constant, it will bring nomaterial impacts on the Company’s total profits and shareholders’ equity.
2. Currency risk
Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. TheCompany’s exposure to the currency risk is primarily associated with the Company’s monetary assets and liabilities dominated in foreign currencies. If the monetaryassets and liabilities dominated in foreign currencies are imbalanced in a short time, the Company will purchase and sell foreign currencies at the market exchangerate to keep the net risk exposure acceptable.
The closing balance of the Company’s monetary assets and liabilities dominated in foreign currencies are 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 | 534,877,200.00 | 30,000,000.00 | 564,877,200.00 | |
| 1. Financial assets at fair value through profit or loss | 534,877,200.00 | 30,000,000.00 | 564,877,200.00 | |
| (1) Investment in debt instrument | ||||
| (2) Investment in equity instrument | 12,880,000.00 | 30,000,000.00 | 42,880,000.00 | |
| (3) Structural deposits | 521,997,200.00 | 521,997,200.00 | ||
| 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 | 7,075,419.38 | 7,075,419.38 | ||
| (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. Productive biological assets | ||||
| Receivables financing | 15,223,418.33 | 15,223,418.33 | ||
| Total assets continuously measured at fair value | 534,877,200.00 | 52,298,837.71 | 587,176,037.71 | |
| (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
2. Basis for determining the market price of continuous and non-continuous level 1 fair value measurement items
□ Applicable√ N/A
3. Valuation techniques and qualitative and quantitative information of key parameters adopted for continuous and non-continuous level 2 fair value
measurement items
√ Applicable□ N/A
The equity instrument investment presented stocks subscribed on the New Third Board; considering the factors including the level of activity for trading of stockson the New Third Board, the Company classified stocks on the New Third Board as level 2 for the measurement of fair value, where the fair value is determinedaccording to the average closing price of the previous 20 trading days.Structured deposits are valued using observable returns, with the sum of expected returns and principal determined as fair value when the expected yield isobservable, and the principal amount as fair value in other cases.
4. Valuation techniques and qualitative and quantitative information of key parameters adopted for continuous and non-continuous level 3 fair valuemeasurement items
√ Applicable□ N/A
The Company uses specific valuation techniques to determine fair value, and important parameters used include the net assets of the investee unit at the end of theperiod.
5. Reconciliation between opening and closing book values and sensitivity analysis of unobservable parameters for continuous level 3 fair valuemeasurement items
□ Applicable√ N/A
6. Where transfers among levels occurred in the period, transfer reasons and policies for determining transfer time point for continuous fair value
measurement items
□ Applicable√ N/A
7. Changes in valuation techniques in the period and reasons for changes
□ Applicable√ N/A
8. Fair value of financial assets and financial liabilities not measured at fair value
□ Applicable√ N/A
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
| Parent company | Registration place | Business nature | Registered capital | Proportion of the Company’s shares held by the parent company (%) | Proportion of the Company’s voting right held by the parent company (%) |
| Shenzhen Appotronics Holdings Limited | Shenzhen | R&D and sales of semiconductor products | 1,000.00 | 17.45 | 17.45 |
Description of the parent company of the CompanyNoneThe ultimate controlling party of the Company is LI Yi.Other information:
None
2. Subsidiaries of the Company
Refer to the Note for details about the subsidiaries of the Company
√ Applicable□ N/A
Subsidiaries of the Company are disclosed in descriptions in IX.1 of Section XI in details.
3. Associates and joint ventures of the Company
Refer to the note for details about the significant joint ventures or associates of the Company.
√ Applicable□ N/A
Refer to the description in Note IX.3 of Section X for details about the associates of the Company.Details of other joint ventures or associates having related-party transactions and balances with the Company in the period or in prior periods:
□ Applicable√ N/A
4. Other related parties of the Company
√ Applicable□ N/A
| Name of other related party | Relationship between other related party and the Company |
| Beijing Donview Education Technology Co., Ltd. and its affiliates | Minority shareholders holding more than 10% shares in the subsidiary and their affiliates |
| Shenzhen YLX Technology Development Co., Ltd. | Controlled by the same de facto controller |
| Xiaomi Communications Co., Ltd. and its affiliates | Minority shareholders holding more than 10% shares in the subsidiary and their affiliates |
| China Film Equipment Co., Ltd. and its affiliates | Minority shareholders holding more than 10% shares in the subsidiary and their affiliates |
| WeCast and its affiliates | The de facto controller resigned as a director of WeCast for less than one year |
| CINIONIC and its affiliates | As of April 30 in the current period, the de facto controller resigned as a director of |
Cinionic for less than one year
Other informationFrom May 1 in the current period, Cinionic and its affiliates are no longer related parties because it has been one year after the de facto controller resigned as adirector of Cinionic.
5. Related-party transactions
(1). Sales and purchase of goods, rendering and receipt of services
Purchase of goods/receipt of services
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Related party | Subject matter | During the reporting period | Transaction amounts approved (if applicable) | Whether the transaction amounts are exceeded (if applicable) | Prior period |
| Xiaomi Communications Co., Ltd. and its affiliates | Electronic components and Service | 38,793,268.73 | 101,000,000.00 | No | 102,666,791.40 |
| China Film Equipment Co., Ltd. and its affiliates | Power, water cooling and services | 11,255,989.49 | 35,000,000.00 | No | 10,702,327.46 |
| GDC and its affiliates | Electronic components | 336,283.18 | 5,000,000.00 | No | 0.00 |
| Beijing Donview Education Technology Co., Ltd. and its affiliates | Maintenance services | 4,198.11 | 0.00 | Yes | 8,962.26 |
| Shenzhen YLX Technology Development Co., Ltd. | Electronic components | 908,182.19 | 3,000,000.00 | No | 533,349.16 |
Sales of goods/rendering of services
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Related party | Subject matter | Amount for the current period | Amount for the prior period |
| Xiaomi Communications Co., Ltd. and its affiliates | Laser TV, smart mini projector | 80,163,085.66 | 302,360,399.65 |
| China Film Equipment Co., Ltd. and its affiliates | Laser light source and cinema projection services | 11,606,671.69 | 16,119,369.88 |
| CINIONIC and its affiliates | Cinema light source | 30,228,389.84 | 50,666,582.80 |
| Beijing Donview Education Technology Co., Ltd. and its affiliates | Education projector | 2,573.26 | 1,533,749.83 |
| GDC and its affiliates | Cinema projectors | 294,140.46 | 7,493,997.70 |
| WeCast and its affiliates | Laser TV, smart mini projector | 0.00 | -7,681,578.96 |
| Shenzhen YLX Technology Development Co., Ltd. | Electronic components | 3,685,678.75 | 950,681.50 |
Description of sales and purchase of goods, rendering and receipt of services
□ Applicable√ N/A
(2). Details of trust with related parties/subcontracting and trust management/contract-issuingDetails of trust/contracting where a group entity is the trustor/main contractor:
□ Applicable√ N/A
Description of trust/subcontracting with related parties
□ Applicable√ N/A
Details of trust/contracting where a group entity is the trustor/main contractor:
□ Applicable√ N/A
Description of management/contract-issuing with related parties
□ Applicable√ N/A
(3). Leases with related parties
The Company as the lessor:
□ Applicable√ N/A
The Company as the lessee:
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Lessor | Type of leased assets | Simplified handling of rental costs for short-term leases and low-value asset leases (if applicable) | Variable lease payments not included in the measurement of lease liabilities (if applicable) | Paid rent | Assumed interest expenses of lease liabilities | Added right-of-use assets | |||||
| Amount for the current period | Amount for the prior period | Amount for the current period | Amount for the prior period | Amount for the current period | Amount for the prior period | Amount for the current period | Amount for the prior period | Amount for the current period | Amount for the prior period | ||
| China Film Equipment Co., Ltd. and its affiliates | Property lease | 14,231.64 | 63,083.33 | 1,540,920.50 | 379,304.00 | 58,659.73 | 27,641.32 | 3,223,361.75 | -1,086,329.01 | ||
Description of leases with related parties
□ Applicable√ N/A
(4). Guarantees with related parties
The Company as a guarantor
□ Applicable√ N/A
The Company as a guaranteed party
□ Applicable√ N/A
Description of guarantees with related parties
□ Applicable√ N/A
(5). Borrowings/loans with related parties
□ Applicable√ N/A
(6). Assets transfer/debt restructuring with related parties
□ Applicable√ N/A
(7). Compensation for key management personnel
√ Applicable□ N/A
Unit: 0’000 Yuan Currency: RMB
| Item | Amount for the current period | Amount for the prior period |
| Compensation for key management personnel | 368.84 | 469.87 |
(8). Other related-party transactions
□ Applicable√ N/A
6. Amounts due from/to related parties
(1). Amounts due from related parties
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Related party | Closing balance | Opening balance | ||
| Carrying amount | Provision for bad debts | Carrying amount | Provision for bad debts | ||
| Accounts receivable | CINIONIC and its affiliates | 29,768,395.79 | 1,488,419.79 | ||
| GDC Technology Limited (BVI) and its affiliates | 796,680.58 | 39,834.03 | 1,739,949.64 | 86,997.48 | |
| WeCast and its affiliates | 16,875,766.52 | 16,875,766.52 | 16,265,737.14 | 16,265,737.14 | |
| Xiaomi Communications Co., Ltd. and its affiliates | 12,880,063.84 | 644,003.19 | 22,671,178.87 | 1,133,558.94 | |
| Shenzhen YLX Technology Development Co., Ltd. | 2,313,052.34 | 115,652.62 | |||
| China Film Equipment Co., Ltd. and its affiliates | 4,802,595.90 | 310,925.87 | 2,098,625.51 | 110,758.50 | |
| Sub-total | 37,668,159.18 | 17,986,182.23 | 72,543,886.95 | 19,085,471.85 | |
| Prepayments | China Film Equipment Co., Ltd. and its affiliates | 3,048,575.71 | 5,451,984.90 | ||
| Xiaomi Communications Co., Ltd. and its affiliates | 293,901.36 | ||||
| Sub-total | 3,342,477.07 | 5,451,984.90 | |||
| Other receivables | China Film Equipment Co., Ltd. and its affiliates | 189,244.20 | 9,462.21 | 273,354.20 | 13,667.71 |
| GDC Technology Limited (BVI) and its affiliates | 14,307,084.00 | 13,789,908.00 | |||
| Xiaomi Communications Co., Ltd. and its affiliates | 200,000.00 | 10,000.00 | 200,000.00 | 10,000.00 | |
| Sub-total | 14,696,328.20 | 19,462.21 | 14,263,262.20 | 23,667.71 |
(2). Amounts due to related parties
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Related party | Closing balance of carrying amount | Opening balance of carrying amount |
| Accounts payable | Shenzhen YLX Technology Development Co., Ltd. | 493,211.51 | 110,054.78 |
| Xiaomi Communications Co., Ltd. and its affiliates | 12,521,840.23 | ||
| China Film Equipment Co., Ltd. and its affiliates | 13,055,929.51 | 4,356,968.33 | |
| Sub-total | 13,549,141.02 | 16,988,863.34 | |
| Notes payable | China Film Equipment Co., Ltd. and its affiliates | 18,842,525.54 | 22,554,693.11 |
| Sub-total | 18,842,525.54 | 22,554,693.11 | |
| Advance from customers | China Film Equipment Co., Ltd. and its affiliates | 7,708,452.85 | 9,342,716.60 |
| GDC Technology Limited (BVI) and its affiliates | 35,359.83 | 4,800.00 | |
| Sub-total | 7,743,812.68 | 9,347,516.60 | |
| Contract liabilities | GDC Technology Limited (BVI) and its affiliates | 23,677.17 | |
| China Film Equipment Co., Ltd. and its affiliates | 1,535,329.22 | 2,738,876.11 | |
| Sub-total | 1,535,329.22 | 2,762,553.28 | |
| Other payables | Beijing Donview Education Technology Co., Ltd. and its affiliates | 50,000.00 | 50,000.00 |
| CINIONIC and its affiliates | 507,874.72 | ||
| GDC Technology Limited (BVI) and its affiliates | 67,020.00 | 20,620.00 | |
| China Film Equipment Co., Ltd. and its affiliates | 18,025.76 | ||
| Sub-total | 117,020.00 | 596,520.48 | |
| Other current liabilities | Xiaomi Communications Co., Ltd. and its affiliates | 163,562.41 | 201,468.53 |
| China Film Equipment Co., Ltd. and its affiliates | 198,514.18 | 3,179,145.48 | |
| Sub-total | 362,076.59 | 3,380,614.01 |
7. Related party commitments
□ Applicable√ N/A
8. Others
□ Applicable√ N/A
XIII. Share-based payments
1. Summary of share-based payments
√ Applicable□ N/A
Unit: Share Currency: RMB
| Item | Company | Chongqing |
| Formovie | ||
| Total number of the Company’s equity instruments granted during the period | 0 | 0 |
| Total number of the Company’s equity instruments executed during the period | 0 | 0 |
| Total number of the Company’s equity instruments lapsed during the period | 998,500 | 102,800 |
| Range of exercise prices and remaining contractual life of the Company’s share options outstanding at the end of the period | Grant date: April 22, 2021; grant price: RMB 20.786/share; 9 months Grant date: April 22, 2021; grant price: RMB 18.286/share; 9 months Grant date: April 22, 2021; grant price: RMB 17.286/share; 9 months Grant date: December 7, 2021; grant price: RMB 19.841/share; 17 months Grant date: December 7, 2021; grant price: RMB 22.841/share; 17 months Grant date: March 11, 2022; grant price: RMB 19.841/share; 17 months Grant date: March 11, 2022; grant price: RMB 22.841/share; 17 months Grant date: March 11, 2022; grant price: RMB 18.286/share; 9 months Grant date: May 25, 2022; grant price: RMB 15.341/share; 11 months Grant date: July 22, 2022; grant price: RMB 4.30/share; 25 months Grant date: December 27, 2022; grant price: RMB 15.341/share; 18 months | Grant date: December 31, 2021; grant price: RMB 1/share; 36 months Grant date: July 6, 2022; grant price: RMB 1/share; 36 months Grant date: July 7, 2022; grant price: RMB 3.42/share; 36 months |
| Range of exercise prices and remaining contractual life of the Company’s other equity instruments outstanding at the end of the period | None | None |
Other informationNone
2. Equity-settled share-based payments
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Company | Chongqing Formovie |
| The method of determining the fair value of equity instruments at the grant date | Option pricing model | Evaluation of all shareholder’s equity interests |
| The basis of determining the number of equity instruments expected to be executed | Actual grant amount | Actual grant amount |
| Reasons for the significant difference between the estimate in the current period and that in the prior period | None | None |
| Amounts of equity-settled share-based payments accumulated in capital reserve | 157,384,979.42 | 20,371,250.13 |
| Total expenses recognized arising from equity-settled share-based payments | 20,403,175.81 | 4,605,410.45 |
Other informationAll restricted shares granted by the Company are Type II restricted shares, while the registered capitalgranted by Foremovie was treated with reference to Type I restricted shares.
3. Cash-settled share-based payments
□ Applicable√ N/A
4. Modification to and termination of share-based payments
□ Applicable√ N/A
5. Others
□ Applicable√ N/A
XIV. Commitments and contingencies
1. Significant commitments
□ Applicable√ N/A
2. Contingencies
(1). Significant contingencies as of the balance sheet date
√ Applicable□ N/A
Pending litigation
1、 Civil litigation and arbitration where the Company acted as the plaintiff/claimantAs of June 30, 2023, there are 10 major civil litigation and arbitration cases where the Company acted as a plaintiff, specifically including:
| Case No. | Cause of action | Plaintiff/Claimant | Defendant/Respondent | Patents involved | Amount involved | Progress |
| (2019) Yue 03 Min Chu No. 2943 (2021) Zui Gao Fa Zhi Min Zhong No. 1582 | Infringement on patent for invention | Appotronics Corporation Limited | Defendant 1: Delta Electronics (Shanghai) Co., Ltd.; Defendant 2: Delta Video Display System (Wujiang) Limited; Defendant 3: Shenzhen Super Network Technology Co., Ltd. | 200810065225.X | RMB 8.00 million | (1) Compensation amount decided in the trial of the first instance: RMB 271,399.40; (2) Under trial of the second instance |
| (2019) Yue 03 Min Chu No. 2944 (2021) Zui Gao Fa Zhi Min Zhong No. 1718 | Infringement on patent for invention | Appotronics Corporation Limited | Defendant 1: Delta Electronics (Shanghai) Co., Ltd.; Defendant 2: Delta Video Display System (Wujiang) Limited; Defendant 3: Shenzhen Super Network Technology Co., Ltd. | 200810065225.X | RMB 8.00 million | (1) Compensation amount decided in the trial of the first instance: RMB 501,399.40; (2) Under trial of the second instance |
| (2019) Yue 03 Min Chu No. 2946 (2022) Zui Gao Fa Zhi Min Zhong No. 161 | Infringement on patent for invention | Appotronics Corporation Limited | Defendant 1: Delta Electronics (Shanghai) Co., Ltd.; Defendant 2: Delta Video Display System (Wujiang) Limited; Defendant 3: Shenzhen Super Network Technology Co., Ltd. | 200810065225.X | RMB 4.00 million | (1) Compensation amount decided in the trial of the first instance: RMB 151,399.40; (2) Under trial of the second instance |
| (2019) Yue 03 Min Chu No. 2948 (2021) Zui Gao Fa Zhi Min Zhong No. 1548 | Infringement on patent for invention | Appotronics Corporation Limited | Defendant 1: Delta Electronics (Shanghai) Co., Ltd.; Defendant 2: Delta Video Display System (Wujiang) Limited; Defendant 3: Shenzhen Super Network Technology Co., Ltd. | 200810065225.X | RMB 4.00 million | (1) Compensation amount decided in the trial of the first instance: RMB 146,399.40; (2) Under trial of the second instance |
| (2019) Yue 03 Min Chu No. 2951 (2021) Zui Gao Fa Zhi Min Zhong No. 1550 | Infringement on patent for invention | Appotronics Corporation Limited | Defendant 1: Delta Electronics (Shanghai) Co., Ltd.; Defendant 2: Delta Video Display System (Wujiang) Limited; Defendant 3: Shenzhen Super Network Technology Co., Ltd. | 200810065225.X | RMB 4.00 million | (1) Compensation amount decided in the trial of the first instance: RMB 581,399.40; (2) Under trial of the second instance |
| (2021) Yue 73 Min Chu No. 1860 | Dispute over damages caused by maliciously initiating an intellectual property litigation | Appotronics Corporation Limited | Defendant: Delta Electronics, Inc. | - | RMB 10.00 million | Under trial of the first instance |
| (2023) Yue 0305 Zhi No. 4099 | Dispute over the sales contract | Appotronics Corporation Limited | Huaxia Jingrui Lighting Technology (Beijing) Co., Ltd. | - | RMB 0.7867 million | Although an application for execution had been submitted to the court, the execution was suspended at present because the court found no property for execution. |
| 01-22-0001-2735 | Arbitration counterclaim of dispute over the implementation of the settlement agreement | Appotronics Hong Kong Limited Appotronics Corporation Limited | GDC Technology Limited (Cayman Islands) GDC Technology Limited (British Virgin Islands) De facto controller ZHANG Wanneng and his management team | - | USD 40.00 million | Accepted |
| DSC20212921 | Dispute over a commercial contract | CINEAPPO Laser Cinema Technology (Beijing) Co., Ltd. | Foshan Jiafu Cinema Management Co., Ltd. | - | Return 7 laser light source devices | The award has been made and is pending |
| (2022) Jing Zhong An No. 7825 | Dispute over a commercial contract | CINEAPPO Laser Cinema Technology (Beijing) Co., Ltd. | Hubei Mango Qin Han Cultural Tourism Industry Development Co., Ltd. | - | Return 10 sets of laser digital cinema projection equipment and compensate RMB 15,312.5 for liquidated damages | Open trial completed; pending decision by the arbitration tribunal |
2、 Civil litigation and arbitration where the Company acted as the defendant/respondentAs of June 30, 2023, there were 2 major civil litigation and arbitration cases where the Company was a defendant, specifically including:
| Case No. | Cause of action | Plaintiff/Claimant | Defendant/Respondent | Patents involved | Amount involved | Progress |
| Case No. | Cause of action | Plaintiff/Claimant | Defendant/Respondent | Patents involved | Amount involved | Progress |
| (2019) Jing 73 Min Chu No.1275 (2022) Zui Gao Fa Zhi Min Zhong No. 1587 | Infringement on patent for invention | Delta Electronics, Inc. | Fengmi (Beijing) Technology Co., Ltd.; Appotronics Corporation Limited | ZL201610387831.8 | Loss compensation of RMB 15.00 million and litigation costs of RMB 1.01 million | The judgment of the first instance in January 2022 held that no infringement is constituted; pending second trial |
| 01-22-0001-2735 | Arbitration of dispute over the implementation of the Settlement Agreement | GDC Technology Limited (Cayman Islands) GDC Technology Limited (British Virgin Islands) | Appotronics Hong Kong Limited Appotronics Corporation Limited | - | USD 38.00 million | Accepted |
(2). Description shall also be provided even if the Company has no significant contingencies to be disclosed:
□ Applicable√ N/A
3. Others
□ Applicable√ N/A
XV. Events after the balance sheet date
1. Material non-adjusting event
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Content | Effects on the financial position and operating results | Reasons for not being able to estimate such effects |
| Issuance of stocks and bonds | The Company registered the vesting of a total of 3,299,000 qualified shares for the first vesting period in the initial grant of the restricted share incentive plan 2022. These shares became available for trading on July 7, 2023, increasing the Company’s total shares from 457,107,538 shares to 460,406,538 shares. | From the end of the reporting period to the disclosure date of this semiannual report, changes in the Company’s shares increased the diluted earnings per shares and net assets per share attributable to ordinary shareholders of the Company. |
2. Profit distribution
□ Applicable√ N/A
3. Sales return
□ Applicable√ N/A
4. Description of other events after the balance sheet date
□ Applicable√ N/A
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
The Company as the creditor:
Unit: Yuan Currency: RMB
| Method of debt restructuring | Book value of creditor’s right | Profit or loss related to debt restructuring |
| Asset for debt payment | 791,852.00 | 0.00 |
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 ofreporting segments, specify the reasons
□ Applicable√ N/A
(4). Other information
□ Applicable√ N/A
7. Other significant transactions and matters having an impact on the decisions of investors
□ Applicable√ N/A
8. Others
□ Applicable√ N/A
XVII. Notes to key items in the parent company’s financial statements
1. Accounts receivable
(1). Disclosure by aging
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Aging | Closing balance of carrying amount |
| Within 1 year | |
| Including: Subitems within 1 year | |
| Within 1 year | 353,665,610.93 |
| Sub-total of items within 1 year | 353,665,610.93 |
| 1 to 2 years | 274,822,661.34 |
| 2 to 3 years | 14,129,828.38 |
| Over 3 years | 6,985,373.06 |
| Total | 649,603,473.71 |
(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 | Percentage (%) | Amount | Percentage of provision (%) | Amount | Percentage (%) | Amount | Percentage of provision (%) | |||
| Provision for bad debts made individually | 786,700.00 | 0.12 | 786,700.00 | 100.00 | 0.00 | |||||
| Including: | ||||||||||
| Provision for bad debts made individually | 786,700.00 | 0.12 | 786,700.00 | 100.00 | 0.00 | |||||
| Provision for bad debts made by group | 648,816,773.71 | 99.88 | 8,628,554.06 | 1.33 | 640,188,219.65 | 694,612,393.91 | 100.00 | 6,607,565.62 | 0.95 | 688,004,828.29 |
| Including: | ||||||||||
| Group of aging | 85,068,080.08 | 13.10 | 8,628,554.06 | 10.14 | 76,439,526.02 | 91,536,981.15 | 13.18 | 6,607,565.62 | 7.22 | 84,929,415.53 |
| Group of receivables from related parties in the scope of consolidation | 563,748,693.63 | 86.78 | 0.00 | 0.00 | 563,748,693.63 | 603,075,412.76 | 86.82 | 0.00 | 0.00 | 603,075,412.76 |
| Total | 649,603,473.71 | 100.00 | 9,415,254.06 | 1.45 | 640,188,219.65 | 694,612,393.91 | 100.00 | 6,607,565.62 | 0.95 | 688,004,828.29 |
Provision for bad debts made individually:
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Name | Closing balance | |||
| Carrying amount | Provision for bad debts | Percentage of provision (%) | Reason for provision | |
| Company B | 786,700.00 | 786,700.00 | 100.00 | Expected to be unrecoverable because the customer is in hardship |
| Total | 786,700.00 | 786,700.00 | 100.00 | / |
Explanation about 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 | Percentage of provision (%) | |
| Group of aging | 85,068,080.08 | 8,628,554.06 | 10.14 |
| Group of receivables from related parties in the scope of consolidation | 563,748,693.63 | ||
| Total | 648,816,773.71 | 8,628,554.06 | 1.33 |
Recognition criterion to make the Provision for bad debts by group and explanation:
□ Applicable√ N/A
If the bad debt provision is made according to the general model of ECL, please refer to the disclosure ofother receivables:
□ Applicable√ N/A
(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 | 6,607,565.62 | 2,809,738.44 | 2,050.00 | 9,415,254.06 | ||
| Total | 6,607,565.62 | 2,809,738.44 | 2,050.00 | 9,415,254.06 | ||
Including significant amounts recovered or reversed from the current provision for bad debts:
□ Applicable√ N/A
(4). Accounts receivable actually canceled in the current period
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Cancellation amount |
| Accounts receivable actually canceled | 2,050.00 |
In which significant amounts canceled are described as below:
□ Applicable√ N/A
Description of accounts receivable cancellation:
□ Applicable√ N/A
(5). Top five closing balances of accounts receivable categorized by debtors
√ Applicable□ N/A
| Entity | Closing balance | Proportion to the total closing balance of accounts receivable (%) | Closing balance of provision for bad debts |
| Top 1 | 273,620,354.09 | 42.12 | |
| Top 2 | 154,115,537.28 | 23.72 | |
| Top 3 | 70,566,103.74 | 10.86 | |
| Top 4 | 31,356,518.89 | 4.83 | |
| Top 5 | 28,954,019.94 | 4.46 | |
| Total | 558,612,533.94 | 85.99 |
(6). Accounts receivable derecognized due to transfer of financial assets
√ Applicable□ N/A
Unit: Yuan Currency:
RMB
| Item | Amount derecognized | Gains or losses associated with derecognition | Method of transferring financial assets |
| CCB E Infocomm | 3,000,000.00 | Discount | |
| Sub-total | 3,000,000.00 |
(7). Assets and liabilities arising from transfer of accounts receivable and continuedinvolvement
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
2. Other receivables
Presented by item
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Closing balance | Opening balance |
| Interest receivable | ||
| Dividend receivable | ||
| Other receivables | 14,803,374.55 | 7,556,623.71 |
| Total | 14,803,374.55 | 7,556,623.71 |
Other information:
□ Applicable√ N/A
Interest receivable
(1). Categories of interest receivable
□ Applicable√ N/A
(2). Significant interests overdue
□ Applicable√ N/A
(3). Provision for bad debts
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
(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 information:
□ 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 | |
| Within 1 year | 9,312,740.42 |
| Sub-total of items within 1 year | 9,312,740.42 |
| 1 to 2 years | 324,556.66 |
| 2 to 3 years | 569,056.66 |
| Over 3 years | 4,954,293.20 |
| Total | 15,160,646.94 |
(8). Categories by the nature
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Nature of receivables | Closing balance of carrying amount | Opening balance of carrying amount |
| Deposits/margins/petty cash | 6,628,870.41 | 6,539,089.13 |
| Receivables from related parties in the scope of consolidation | 8,015,199.08 | 1,153,906.23 |
| Temporary receivables | 516,577.45 | 134,793.84 |
| Compensation receivable | 65,819.64 | |
| Total | 15,160,646.94 | 7,893,608.84 |
(9). 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, 2023 | 336,985.13 | 336,985.13 | ||
| Balance as at January 1, 2023 in the current period | ||||
| --transferred to Stage II | ||||
| --transferred to Stage III | ||||
| --reversed to Stage II |
| --reversed to Stage I | ||||
| Provision | 20,287.26 | 20,287.26 | ||
| Reversal | ||||
| Write-off | ||||
| Cancellation | ||||
| Other changes | ||||
| Balance as at June 30, 2023 | 357,272.39 | 357,272.39 |
Description of significant changes in the balance of other receivables with changed provisions for lossesin the current period:
□ Applicable√ N/A
Basis for recognizing the amount of provision for bad debts and evaluating whether the credit risk offinancial instruments has been increased significantly in the current period:
□ Applicable√ N/A
(10). 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 | 336,985.13 | 20,287.26 | 357,272.39 | |||
| Total | 336,985.13 | 20,287.26 | 357,272.39 | |||
Including significant amounts recovered or reversed from the current provision for bad debts:
□ Applicable√ N/A
(11). Other receivables actually canceled in the current period
□ Applicable√ N/A
Description of other receivables cancellation:
□ Applicable√ N/A
(12). Top five closing balances of other receivables categorized by debtors
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Entity | Nature of other receivables | Closing balance | Aging | Proportion to the balance of other receivables (%) | Provision for bad debts Closing balance |
| Top 1 | Receivables from related parties in the scope of consolidation | 4,191,508.17 | Within 1 year | 27.65 | |
| Top 2 | Receivables from related parties in the scope of consolidation | 3,627,144.88 | Within 1 year | 23.92 | |
| Top 3 | Deposits/margins/petty cash | 3,574,618.00 | Over 3 years | 23.58 | 178,730.90 |
| Top 4 | Deposits/margins/petty cash | 1,257,075.20 | Over 3 years | 8.29 | 62,853.76 |
| Top 5 | Deposits/margins/petty cash | 500,000.00 | Within 1 year | 3.30 | 25,000.00 |
| Total | - | 13,150,346.25 | - | 86.74 | 266,584.66 |
(13). Accounts receivable involving government grants
□ Applicable√ N/A
(14). Other receivables derecognized due to transfer of financial assets
□ Applicable√ N/A
(15). Assets and liabilities arising from transfer of other receivables and continued involvement
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
3. Long-term equity investments
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Closing balance | Opening balance | ||||
| Carrying amount | Provision for impairment | Book value | Carrying amount | Provision for impairment | Book value | |
| Investments in subsidiaries | 478,862,913.65 | 12,827,792.79 | 466,035,120.86 | 463,067,140.24 | 12,827,792.79 | 450,239,347.45 |
| Investments in associates and joint ventures | ||||||
| Total | 478,862,913.65 | 12,827,792.79 | 466,035,120.86 | 463,067,140.24 | 12,827,792.79 | 450,239,347.45 |
(1) Investments in subsidiaries
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Investee | Opening balance | Increase | Decrease | Closing balance | Provision for impairment | Closing balance of provision for impairment |
| CINEAPPO Laser Cinema Technology (Beijing) Co., Ltd. | 46,661,211.65 | 1,221,081.38 | 47,882,293.03 | |||
| Shenzhen Appotronics Software Technology Co., Ltd. | 1,457,799.42 | 20,979.32 | 1,478,778.74 | |||
| Beijing Orient Appotronics Technology Co., Ltd. | 5,900,000.00 | 5,900,000.00 | ||||
| Shenzhen Appotronics Xiaoming Technology Co., Ltd. | 12,000,000.00 | 12,000,000.00 | 12,000,000.00 | |||
| Fengmi (Beijing) Technology Co., Ltd. | 3,469,000.91 | 798.47 | 3,469,799.38 | |||
| Qingda Appotronics (Xiamen) Technology Co., Ltd. | 5,100,000.00 | 5,100,000.00 | 827,792.79 | |||
| Shenzhen Appotronics Laser Display Technology Co., Ltd. | 18,966,857.26 | 18,966,857.26 | ||||
| Appotronics Hong Kong Limited | 305,476,042.87 | 571,280.54 | 306,047,323.41 | |||
| JoveAI Innovation, Inc. | 800,010.03 | 800,010.03 | ||||
| Appotronics Technology (Changzhou) Co., | 2,000,000.00 | 2,000,000.00 |
| Investee | Opening balance | Increase | Decrease | Closing balance | Provision for impairment | Closing balance of provision for impairment |
| Ltd. | ||||||
| Shenzhen Appotronics Display Device Co., Ltd. | 3,000,000.00 | 3,000,000.00 | ||||
| Tianjin Bonian Film Partnership (LP) | 26,954,120.20 | 26,954,120.20 | ||||
| Formovie (Chongqing) Innovative Technology Co., Ltd. | 31,277,785.13 | 168,361.38 | 31,446,146.51 | |||
| Shenzhen Orange Juice Energy Technology Co., Ltd. | 4,312.77 | -527.68 | 3,785.09 | |||
| Shenzhen Qianhai Taishi Investment Partnership (LP) | 13,813,800.00 | 13,813,800.00 | ||||
| Total | 463,067,140.24 | 15,795,773.41 | 478,862,913.65 | 12,827,792.79 |
(2) Investments in associates and joint ventures
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
4. 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 | ||
| Income | Cost | Income | Cost | |
| Main business | 542,956,800.34 | 368,571,473.83 | 649,645,354.34 | 432,684,792.22 |
| Other business | ||||
| Total | 542,956,800.34 | 368,571,473.83 | 649,645,354.34 | 432,684,792.22 |
(2). Description of incomes from contracts
□ Applicable√ N/A
(3). Description of performance obligations
□ Applicable√ N/A
(4). Description of allocation to remaining performance obligations
□ Applicable√ N/A
Other information:
None
5. Investment income
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Amount for the current period | Amount for the prior period |
| Gains from long-term equity investment accounted for using the cost method | 7,452,000.00 | |
| Investment income from held-for-trading financial assets during the holding period | 200,000.00 | |
| Investment income from disposal of held-for-trading financial assets | 5,265,708.55 | 5,684,922.38 |
| Total | 12,717,708.55 | 5,884,922.38 |
Other information:
None
6. Others
□ Applicable√ N/A
XVIII. Supplementary information
1. Breakdown of non-recurring profit or loss for the current period
√ Applicable□ N/A
Unit: Yuan Currency: RMB
| Item | Amount | Description |
| Gain or loss on disposal of non-current assets | -216,132.87 | |
| 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) | 33,198,815.57 | |
| Profit or loss on entrusted investments or assets management | 5,198,708.55 | |
| 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 | 14,923,989.20 | |
| Profit or loss on changes in the fair value of held-for-trading financial assets, derivative financial assets, held-for-trading financial liabilities and | 67,000.00 |
| 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 | ||
| Reversal of impairment loss on accounts receivable and contract assets tested for impairment individually | 69,851.05 | |
| Other non-operating income and expenses | 14,480.93 | |
| Other gains or losses meeting the definition of non-recurring profit or loss | 442,061.07 | |
| Less: Effect of income taxes | 3,469,096.89 | |
| Effects attributable to minority interests (net of tax) | 9,543,875.27 | |
| Total | 40,685,801.33 |
It is required to specify the reason for defining items as non-recurring profit or loss items according toInformation Disclosure and Presentation Rules for Companies Making Public Offering of Securities No.1 - Non-recurring Profit or Loss, and reasons for defining non-recurring profit or loss items illustrated inInformation Disclosure and Presentation Rules for Companies Making Public Offering of Securities No.1 - Non-recurring Profit or Loss as recurring profit or loss items.
□ Applicable√ N/A
2. Return on net assets and earnings per share
√ Applicable□ N/A
| 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 | 2.78 | 0.16 | 0.16 |
| Net profit after deduction of non-recurring profits or losses attributable to ordinary shareholders of the Company | 1.27 | 0.07 | 0.07 |
3. Differences in accounting data under Chinese accounting standards and overseas accountingstandards
□ Applicable√ N/A
4. Others
□ Applicable√ N/A
Chairman: LI Yi
Approval for submission by the Board of Directors: August 16, 2023
Revision information
□ Applicable√ N/A