TCL CORPORATIONTCL集团股份有限公司
FIRST QUARTER REPORT 2019
23 April 2019
Table of Contents
Part I Important Notes and Definitions ...... 3
Part II Key Corporate Information ...... 6
Part III Directors’ Report ...... 11
Part IV Significant Events ...... 18
Part V Financial Statements ...... 25
Part I Important Notes and Definitions
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,supervisors and senior management of TCL Corporation (hereinafter referred to as the“Company”) hereby guarantee the factuality, accuracy and completeness of the contents ofthis Report and its summary, and shall be jointly and severally liable for anymisrepresentations, misleading statements or material omissions therein.All the Company’s directors have attended the Board meeting for the review of this Reportand its summary.Mr. Li Dongsheng, the Chairman of the Board, Ms. Du Juan, the person-in-charge offinancial affairs (Chief Financial Officer), and Mr. Xi Wenbo, the person-in-charge of thefinancial department, hereby guarantee that the financial statements carried in this Reportare factual, accurate and complete.This Report has been prepared in both Chinese and English. Should there be anydiscrepancies or misunderstandings between the two versions, the Chinese version shallprevail.
Definitions
| Term | Definition |
| The “Company”, the “Group”, “TCL”, “TCL Corp.” or “we” | TCL Corporation and its consolidated subsidiaries, except where the context otherwise requires |
| The “Reporting Period” | The period from 1 January 2019 to 31 March 2019 |
| The “Restructuring” | The major asset restructuring approved at the 13th meeting of the 6th Board of Directors on 7 December and the First Extraordinary General Meeting of 2019 on 7 January 2019 |
| TCL Electronics | TCL Electronics Holdings Limited, a majority-owned subsidiary of the Company listed on the Stock Exchange of Hong Kong (stock code: 01070.HK) |
| TCL Communication | TCL Communication Technology Holdings Limited |
| CSOT | Shenzhen China Star Optoelectronics Technology Co., Ltd. |
| TCL Household Electric Appliance Group | Huizhou TCL Household Electric Appliance Group Co., Ltd. |
| CDOT | China Display Optoelectronics Technology Holdings Limited, a majority-owned subsidiary of the Company listed on the Stock Exchange of Hong Kong (stock code: 00334.HK) |
| Highly | Highly Information Industry Co., Ltd., a majority-owned subsidiary of the Company listed on the National Equities Exchange and Quotations (stock code: 835281) |
| Guangdong Juhua | Guangdong Juhua Printed Display Technology Co., Ltd. |
| China Ray | Guangzhou China Ray Optoelectronic Materials Co., Ltd. |
| Bank of Shanghai | Bank of Shanghai Co., Ltd. (stock code: 601229.SH), with the Company holding a 4.99% interest |
| 712 Corp. | Tianjin 712 Communication & Broadcasting Co., Ltd. (stock code: 603712.SH), with the Company holding a 19.07% interest as its second largest shareholder |
| Fantasia | Fantasia Holdings Group Co., Limited, a listed company on the Stock Exchange of Hong Kong (stock code: 01777.HK), with the Company holding a 20.08% interest as its second largest shareholder |
| Admiralty Harbour Capital | Admiralty Harbour Capital Limited |
| Environmental Resource | Huizhou TCL Environmental Resource Co., Ltd. |
| Educational Web | TCL Educational Web Ltd. |
| t1 project | The generation 8.5 (or G8.5) TFT-LCD production line of CSOT |
| t2 project | The generation 8.5 (or G8.5) TFT-LCD (including oxide semiconductor and AMOLED) production line of CSOT |
| t3 project | The generation 6 (or G6) LTPS? LCD/AMOLED panel production line of |
| CSOT | |
| t4 project | The generation 6 (or G6) flexible LTPS-AMOLED panel production line of CSOT |
| t6 project | The generation 11 (or G11) new TFT-LCD and AMOLED production line of CSOT |
| t7 project | The generation 11 (or G11) new ultra-high-definition (UHD) TFT-LCD and AMOLED production line of CSOT |
Part II Key Corporate Information
I Key Financial Information
Indicate whether there is any retrospectively restated datum in the table below.□ Yes ■ No
| Series No. | Item | Q1 2019 | Q1 2018 | Change (%) |
| 1 | Operating revenue (RMB) | 29,600,956,875 | 25,629,844,055 | 15.49 |
| 2 | Gross profit (RMB) | 5,045,955,708 | 4,977,411,074 | 1.38 |
| 3 | EBITDA | 4,155,509,053 | 3,465,538,469 | 19.91 |
| 4 | Profit before tax (RMB) | 1,219,417,833 | 1,057,422,453 | 15.32 |
| 5 | Net profit (RMB) | 1,006,077,530 | 788,045,509 | 27.67 |
| Net profit attributable to the listed company’s shareholders (RMB) | 779,088,389 | 730,837,280 | 6.60 | |
| Net profit attributable to the listed company’s shareholders before non-recurring gains and losses (RMB) | 560,950,806 | 521,159,061 | 7.64 | |
| 6 | Basic earnings per share (RMB/share) (note) | 0.0578 | 0.0540 | 7.04 |
| Diluted earnings per share (RMB/share) | 0.0576 | 0.0540 | 6.67 | |
| Basic earnings per share before non-recurring gains and losses (RMB/share) | 0.0416 | 0.0385 | 8.05 | |
| 7 | Weighted average return on equity (%) | 2.54 | 2.38 | Up by 0.16 percentage point |
| Weighted average return on equity before non-recurring gains and losses (%) | 1.83 | 1.70 | Up by 0.13 percentage point | |
| 8 | Net cash generated from/used in operating activities (RMB) | 2,243,903,241 | 3,034,386,560 | -26.05 |
| Net cash per share generated from/used in operating activities (RMB/share) | 0.1656 | 0.2245 | -26.24 | |
| 31 March 2019 | 31 December 2018 | Change (%) | ||
| 9 | Total assets (RMB) | 198,662,703,285 | 192,763,941,739 | 3.06 |
| 10 | Total liabilities (RMB) | 135,200,417,778 | 131,892,269,092 | 2.51 |
| 11 | Debt/asset ratio (%) | 68.06 | 68.42 | Down by 0.36 percentage point |
| Debt/asset ratio before borrowings obtained using bank deposit as a pledge and deferred income (%) | 66.85 | 67.05 | Down by 0.20 percentage point | |
| 12 | Total owners’ equity (RMB) | 63,462,285,507 | 60,871,672,647 | 4.26 |
| Owners’ equity attributable to the listed company’s shareholders (RMB) | 31,086,614,033 | 30,494,364,951 | 1.94 | |
| 13 | Share capital (share) | 13,549,648,507 | 13,549,648,507 | 0.00 |
| 14 | Equity per share attributable to the listed company’s shareholders (RMB/share) | 2.2943 | 2.2506 | 1.94 |
The total share capital at the end of the last trading session before the disclosure of this Report:
| Total share capital at the end of the last trading session before the disclosure of this Report (share) | 13,549,648,507 |
| Fully diluted earnings per share based on the latest total share capital above (RMB/share) | 0.0576 |
Non-recurring gains and losses:
Unit: RMB
| Item | Q1 2019 | Note |
| Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) | 33,746,384 | Not applicable |
| Government subsidies charged to current profit or loss (exclusive of government subsidies given in the Company’s ordinary course of business at fixed quotas or amounts as per the government’s uniform standards) | 278,312,518 | Not applicable |
| Gain or loss on fair-value changes in trading financial assets and liabilities, as well as derivative financial assets and liabilities & income from disposal of trading financial assets and liabilities, derivative financial assets and liabilities, as well as investments in other debt obligations (exclusive of the effective portion of hedges that arise in the Company’s ordinary course of business) | 10,320,281 | Not applicable |
| Non-operating income and expense other than the above | 21,508,198 | Not applicable |
| Less: Corporate income tax | -44,521,095 | Not applicable |
| Non-controlling interests (net of tax) | -81,228,703 | Not applicable |
| Total | 218,137,583 | -- |
Explanation of why the Company reclassifies as recurrent a non-recurring gain/loss item defined or listed in the ExplanatoryAnnouncement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Non-Recurring Gain/LossItems:
□ Applicable ■ Not applicable
II Total Number of Shareholders and Holdings of Top 10 Shareholders at 31 March 2019
1. Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well asHoldings of Top 10 Shareholders
Unit: share
| Number of ordinary shareholders at the period-end | 561,950 | Number of preferred shareholders with resumed voting rights at the period-end (if any) | ||||
| Top 10 shareholders | ||||||
| Name of shareholder | Nature of shareholder | Shareholding percentage | Total shares held | Restricted shares held | Shares in pledge or frozen | |
| Status | Shares | |||||
| Hubei Changjiang Hezhi Hanyi Equity Investment Fund Partnership (Limited Partnership) | Domestic non-state-owned legal person | 6.57 | 890,576,845 | In pledge | 761,920,000 | |
| Huizhou Investment Holding Co., Ltd. | State-owned legal person | 6.48 | 878,419,747 | |||
| Li Dongsheng | Domestic natural person | 4.91 | 665,148,488 | 498,861,366 | In pledge | 618,980,000 |
| Beijing Ziguang Investment Co., Ltd. | State-owned legal person | 3.49 | 472,768,900 | |||
| Xinjiang Dongxing Huarui Equity Investment Partnership (Limited Partnership) | Domestic non-state-owned legal person | 3.34 | 452,660,287 | In pledge | 452,660,287 | |
| Xinjiang Jiutian Liancheng Equity Investment Partnership (Limited Partnership) | Domestic non-state-owned legal person | 3.02 | 408,899,521 | In pledge | 408,899,521 | |
| China Securities | Domestic | 2.75 | 373,231,553 | |||
| Finance Corporation Limited | non-state-owned legal person | |||||
| CDB Innovation Capital Co., Ltd. | State-owned legal person | 1.84 | 249,985,219 | |||
| Central Huijin Asset Management Co., Ltd. | State-owned legal person | 1.52 | 206,456,500 | |||
| Guangdong Guangxin Holdings Group Ltd. | State-owned legal person | 1.09 | 147,760,683 | |||
| Top 10 unrestricted shareholders | ||||||
| Name of shareholder | Unrestricted shares held | Shares by type | ||||
| Type | Shares | |||||
| Hubei Changjiang Hezhi Hanyi Equity Investment Fund Partnership (Limited Partnership) | 890,576,845 | RMB-denominated ordinary stock | 890,576,845 | |||
| Huizhou Investment Holding Co., Ltd. | 878,419,747 | RMB-denominated ordinary stock | 878,419,747 | |||
| Beijing Ziguang Investment Co., Ltd. | 472,768,900 | RMB-denominated ordinary stock | 472,768,900 | |||
| Xinjiang Dongxing Huarui Equity Investment Partnership (Limited Partnership) | 452,660,287 | RMB-denominated ordinary stock | 452,660,287 | |||
| Xinjiang Jiutian Liancheng Equity Investment Partnership (Limited Partnership) | 408,899,521 | RMB-denominated ordinary stock | 408,899,521 | |||
| China Securities Finance Corporation Limited | 373,231,553 | RMB-denominated ordinary stock | 373,231,553 | |||
| CDB Innovation Capital Co., Ltd. | 249,985,219 | RMB-denominated ordinary stock | 249,985,219 | |||
| Central Huijin Asset Management Co., Ltd. | 206,456,500 | RMB-denominated ordinary stock | 206,456,500 | |||
| Li Dongsheng | 166,287,122 | RMB-denominated ordinary stock | 166,287,122 | |||
| Guangdong Guangxin Holdings Group Ltd. | 147,760,683 | RMB-denominated ordinary stock | 147,760,683 | |||
| Related or acting-in-concert parties among the shareholders above | Being acting-in-concert parties upon the signing of the Agreement on Acting in Concert, Mr. Li Dongsheng and Xinjiang Jiutian Liancheng Equity Investment Partnership (Limited Partnership) are the biggest shareholder of the Company with a total of 1,074,048,009 shares. Meanwhile, CDB Innovation Capital Co., Ltd., CDB Equipment Manufacturing Industrial Investment Fund Co., Ltd. and CDB Jingcheng (Beijing) Investment Fund Co., Ltd. are acting-in-concert parties as CDB Innovation and CDB Equipment are both controlled by a majority-owned subsidiary of China Development Bank Capital Co., Ltd., and CDB Jingcheng is an investment company managed by a subsidiary of China Development Bank Capital Co., Ltd. |
| Top 10 ordinary shareholders involved in securities margin trading (if any) | None |
2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable ■ Not applicable
Part III Directors’ Report
I OverviewFor Q1 2019, the Group recorded operating revenue of RMB29.60 billion, representing ayear-on-year increase of 15.5%; core business revenue of RMB29.33 billion, rising by 15.2%compared to a year ago; a net profit of RMB1.01 billion, representing a 27.7% year-on-yearincrease; and a net profit attributable to TCL shareholders of RMB0.779 billion, representing anincrease of 6.6% compared to a year ago.During the Reporting Period, the Group kept building its core competitiveness for faster businessgrowth by way of strengthening its product and technology capabilities. It continued to enhance itsproduct competitiveness through cultivation and innovation of core cutting-edge technologies, inaddition to refining its product and customer structures. In this period, the Group spent a total ofRMB1.58 billion on R&D, a 60.5% year-on-year increase; and it applied for 505 internationalpatents through PCT, representing a cumulative number of 10,495. Meanwhile, up to the end of theReporting Period, CSOT has applied for 15,529 Chinese patents and 7,888 U.S. patents.In the period, focusing on improving the operating quality of assets and the profitability, the Groupdeepened its reform and transformation, refined the business structure, streamlined theorganizational and management flows, as well as continued to promote cost efficiency. As a result,the net profit margin increased to 3.40%, the expense ratio decreased by 1.88 percentage pointsyear-on-year, the return on equity (ROE) increased by 0.16 percentage point year-on-year, the cashcycle is shortened by six days and the debt/asset ratio decreased to 68.1%.The Group has divested its intelligent terminal and supporting businesses in the Restructuring, so asto refine its business and capital structures, concentrate on the core business and transform towardsa high-tech conglomerate. The Restructuring plan has been approved at the First ExtraordinaryGeneral Meeting of 2019 on 7 January 2019 and the Group has received the transaction amount infull on 15 April 2019. As such, the target assets in the Restructuring will be excluded from theGroup’s consolidated financial statements from Q2 2019. For Q1 2019, with the said target assetsexcluded, the Group achieved a pro forma net profit of RMB925 million, up by 21.6% year-on-year;a net profit attributable to TCL shareholders of RMB769 million, up by 5.18% year-on-year; a net
profit margin of 7.76%; and a decreased debt/asset ratio to 59.1%. In addition, the Group’s capitalstructure and profitability have been considerably improved.
II Core Business AnalysisUpon the completion of the Restructuring, the Group’s core businesses will be modified to comprisethe semi-conductor display and material business, the industrial finance & investment and venturecapital business and the emerging business group:
1. The Semi-Conductor Display and Material BusinessIt consists of CSOT, Guangdong Juhua and China Ray.2. The Industrial Finance & Investment and Venture Capital BusinessIt includes TCL Finance and TCL Capital.3. The Emerging Business GroupIt comprises Highly, Educational Web and Environmental Resource.According to its long-term development strategy, the Group will further concentrate on its corebusinesses by continuing to divest non-core businesses according to the principle of maximumvalue for shareholders. In pursuit of the whole-new positioning of a high-tech conglomerate, theGroup will also enter into other key basic high-tech industries when the timing is ripe by means ofM&A, etc., so as to foster new driving force.
(I) The Semi-Conductor Display and Material Business1. CSOT
Guangdong JuhuaChina Ray
China RayTCL Corporation
TCL Corporation
Industrial Finance &Investment and VC Business
Industrial Finance &Investment and VC Business
TCL Finance
TCL FinanceTCL Capital
TCL CapitalCSOT
| CSOT | Highly |
Education WebEnvironmental Resource
Environmental ResourceSemi-Conductor Display
& Material Business
| Semi-Conductor Display & Material Business | Emerging Business Group |
During Q1 2019, CSOT achieved a shipment of 5.56 million square meters, up by 17.1%year-on-year; operating revenue of RMB7,250 million, up by 12.1% year-on-year; an EBITDA ratioof 28.2%; and a net profit of RMB683 million, up by 35.2% as compared to Q4 2018.Affected by the global economic downturn and the industrial cycle, CSOT’s major products saw asignificant price drop as compared to Q1 2018. To deal with that, CSOT actively promoted reformand transformation, and managed to maintain leading operating efficiency and performance acrossthe global industry. Firstly, it further optimized its organization and flows for better cost efficiency.Secondly, it increased its revenue through improving its product and technology capabilities andrefining its product structure. Thirdly, the two production bases of small- and large-sized panelsgave play to their advantage of intensive production as a way to reduce the structural costs. Finally,the t3 plant operated at full capacity for strong sales and achieved a higher operating profit with5.29 times of growth in shipment area and 3.95 times of growth in sales revenue as compared to Q12018.CSOT’s core competitiveness lies in product and technology innovation. In the field of large-sizedpanels, CSOT boasts the unique HVA technology, the industry-leading Cu-Cu+COA+PFAmanufacturing process, the application of the quantum-dot technology and the early development ofthe MINI-LED back-light technology. In the field of small- and medium-sized panels, in addition tothe completed LTPS plant (t3), CSOT’s flexible AM-OLED plant (t4) is expected to achieve massproduction in Q4 2019, which targets high-end markets across the world with the HD full-screen,flexible and foldable technologies. Meanwhile, CSOT will continue to work on the next-generationflexible printed OLED technology so as to further strengthen its advantage of advancedtechnologies.International competitiveness is an important driver of CSOT’s business growth. In December 2018,construction started for CSOT’s module and whole-widget integrated intelligent manufacturing parkin India, with a planned annual capacity of 8 million pieces of large-sized TV panels and 30 millionpieces of small- and medium-sized handset panels. Additionally, the rapid growth in the unit salesof TCL TV and smart phones across the world, especially their enlarging market shares in majorcountries and regions, provided a strong support for CSOT’s operating at full capacity.Based on its world-leading advantages in the large-sized TV panel industry, CSOT will proactivelybreak into new application markets with high added value, including interactive whiteboards, tiled
video walls, advertisement players, gaming monitor, vehicles, etc. In this way, it is marching fastertowards a multi-application-scenario display interface provider.Currently, the global semi-conductor display industry is still experiencing a slight oversupply ,thecompetition is being fiercely. But opportunities are followed with challenges. This year, in order tosupport the real economy, China has unveiled a series of effective measures, including tax cuts andencouraging technological innovations, to promote faster development of the manufacturing sectorin a high-quality manner. In view of that, CSOT, as a high-end manufacturer, is confident tocontinue to grow in a healthy way with better operating results. Meanwhile, driven by technologicalinnovation, CSOT’s production is ramping up fast. It also maintains leading operating efficiencyand performance by way of promoting cost efficiency, further strengthens its advantages withregard to products and new display technology through continual investment, as well as beefs up itsefforts on new application markets and major regional markets. Therefore, CSOT’s corecompetitiveness is expected to strengthen further. We are confident that CSOT will achieve adouble-digit growth in sales revenue and profit for 2019.1.1 Large-Sized Panel Business GroupDuring the Reporting Period, CSOT’s two G8.5 TFT-LCD production lines—t1 and t2 continued tostrengthen the position and competitive edges in the large-sized panel industry by means ofimproving product development and process design, increasing product quality and enriching theproduct mix. The shipment of the 32-inch product is the second highest in the world, that of the55-inch UD product ranks first globally, and CSOT maintains the highest shipment to domestictop-brand customers.The G11 TFT-LCD production line—t6, mainly producing 65-inch, 75-inch and otherultra-large-sized new display panels, is seeing an industry-leading production ramp-up and yieldrate and is expected to reach full capacity in late 2019. Meanwhile, the construction of the G11UHD new display production line—t7 is progressing as scheduled, which is mainly responsible forthe production and sales of 65-inch, 70-inch (21:9) and 75-inch 8K UHD display panels andAMOLED display panels, among other products.Supporting the G8.5 and G11 production lines, the first phase of CSOT’s module and whole-widgetintegrated intelligent manufacturing base—the high generation module project has realized bulk
shipment to the customers. It is strengthening CSOT’s industrial manufacturing competence in thefield of large-sized panels.1.2 Small- and Medium-Sized Panel Business GroupDuring the Reporting Period, the G6 LTPS-LCD production line—t3 reached a total shipment of27.28 million pieces (the world’s third highest such shipment), up by 5.9 times year-on-year. The t3project has also launched a production line upgrade project to satisfy the growing demand ofhigh-end customers. The G6 LTPS-AMOLED flexible production line—t4 is progressing smoothlyin the development and introduction of the key technologies and manufacturing process. Thecapacity is ramping up and its yield rate is improving, thesample presentation and verification workby strategic customers are well underway.2. Guangdong JuhuaAs the Group’s R&D platform of the printed display technology, Guangdong Juhua is the builder ofthe "National Printed and Flexible Display Innovation Center", which is the first national innovationcenter in China’s display sector. During the Reporting Period, Guangdong Juhua launched the31-inch UHD (4K) top-emitting printed H-QLED prototype at the CES..The prototype is combinedby printed blue-light emitting OLED materials, as well as printed red- and green-light emittingQLED materials, which is the world’s first such product adopt both advantages ofelectroluminescent QLED materials and OLED materials. With a resolution as high as 3840x2160,this product is drawing attention across the display industry.3. China RayUp to the end of the Reporting Period, China Ray has developed over 700 new materials withindependent IP, including the phosphorescent host and guest materials, the fluorescent host andguest materials, the soluble material, the soluble hole-transport material, the TADF material, theelectron transport material, the p-type doping material, the CPL material, etc. The evaporatedred-light and green-light emitting materials, as well as the solution-processed red-light emittingmaterials, are all of an industry-wide advanced performance; the red-light and green-light emittingmaterials and devices of printed OLED have reached domestically advanced performance. Andbreakthroughs have also been made concerning the blue-light emitting materials. During theReporting Period, China Ray’s multiple materials passed the verification of the domestic major
panel manufacturers; the assembly plant went into mass production; and mass production of certainproducts has started.(II) The Industrial Finance & Investment and Venture Capital Business1. TCL FinanceTCL Finance mainly comprises the Group’s finance and the supply chain finance. During theReporting Period, the Group’s finance business enhanced its financial support to the Group’sbusiness development according to the Group’s strategic goals, and further improved its activemanagement ability for capital and risks. The operation of the Group’s finance business isprogressing smoothly. Its asset scale, gross profit, ROE and capital concentration are all of a leadinglevel in the industry. Upholding the service philosophy of “partner finance”, the supply chainfinance business worked on TCL’s internal businesses in a deeper manner and improved thebusiness output competence externally. As a result, the number of key corporate customers and thebusiness volume continued to increase in a rapid manner, and the consumer finance businessenjoyed healthy development, with its asset quality far better than the industry average. The numberof B2B finance clients has reached more than 12,700, while the registered retail finance clients areover 360,000.2. TCL CapitalTCL Capital includes the venture capital and financial investment business, as well as AdmiraltyHarbour Capital Limited. Up to the end of the Reporting Period, the venture capital businessmanages funds of RMB9.365 billion in total, and has accumulatively invested in 108 projects.Currently, it owns shareholdings in listed companies such as S.C., CertusNet, Chipone, CATL,Petro-King, Sky Solar, etc., in addition to interests in Cambricon, DK Electronic Materials,Transwarp and so on. Harbour Capital has started operation. During the Reporting Period, itcompleted one bond issue, built positions in a specialized investment account for margin trading,obtained a funding quota and signed a prime broker agreement with Goldman Sachs. Meanwhile,the Group holds a 19.07% interest in 712 Corp. (603712.SH), a 20.08% interest in FantasiaHoldings (01777.HK), and a 4.99% interest in Bank of Shanghai (601229.SH).(III) The Emerging Business Group
In pursuit of the strategic goal of "sales + service", Highly Information (835281) continued tostrengthen its core competitiveness in these two aspects, improve the quality of assets, especiallythat of inventories and accounts receivable, as well as increase the asset turnover ratio. As a result,Highly Information recorded a steady growth in both sales revenue and profit.During the Reporting Period, the enrollment for the degree courses of Educational Web wasprogressing smoothly, and teacher training was steadily processing. It is also intensified theintegration of educational resources and B2C business development. The registered users of theInternet IT vocational education platform (IMOOC) have reached 15.40 million.Huizhou TCL Environmental Resource Co., Ltd. specializes in the collection, transportation andoverall treatment of industrial hazardous wastes, resource recycling, household appliancedismantling and deep processing for recycling, etc. During the Reporting Period, the householdappliance dismantling and hazardous waste treatment businesses both maintained a fast growth inprofit.The Group will withdraw from the non-core businesses as soon as possible. Meanwhile, accordingto the development vision of a high-tech conglomerate, it will restructure the emerging businessgroup towards key, high-end and basic technologies so as to cultivate new growth drivers.(IV) Major Target Businesses of the RestructuringSince Q2 2019, the intelligent terminal and supporting business will be divested and excluded fromthe Group’s consolidated financial statements. During the Reporting Period, by way of integratingproducts technology and marketing, and with management platform integration as the theme ofwork, the intelligent terminal business gradually expanded its business scaleand increased itsmanagement efficiency ,as well as improved its profitability.During the Reporting Period, the sales revenue of TCL Electronics increased by 22.8%year-on-year to RMB10.75 billion (HK$12.57 billion). Supported by its global operations,increasing strength in products and brand, as well as refined product and channel structures, the TVunit sales of TCL Electronics increased by 32.5% year-on-year to 8.443 million sets.With “focus on making breakthroughs, drive growth through efficiency increase and prepare fortransformation” as its operating strategies, TCL Communication concentrated on regional markets,increased the operating efficiency of assets, as well as proactively invested in the R&D of new
technology and products. TCL Communication sold 6.90 million units of products during theReporting Period, representing a year-on-year growth of 11%.In face of the complicated operating environment in domestic and abroad, TCL Household ElectricAppliance Group drove product and technological transitions and upgrades, as well as promotedcost efficiency and lean management throughout the industrial chain. During the Reporting Period,it sold 2.742 million units of air-conditioners (a 2.8% year-on-year increase), 0.643 million units ofwashing machines (a 19.5% year-on-year increase), and 0.457 million units of refrigerators (an 18.4%year-on-year increase).
Part IV Significant Events
I Changes in Key Financial Statement Line Items and Explanation of why
■ Applicable □ Not applicable
Unit: RMB’000
| Item | 31 March 2019 | 31 December 2018 | Change (%) | Explanation of why |
| Current portion of non-current liabilities | 3,534,940 | 6,009,920 | -41.2% | Repayment of corporate bonds of RMB2.5 billion |
| Other current liabilities | 1,111,570 | 3,344,450 | -66.8% | Repayment of short-term financing bonds of RMB2 billion |
| Treasury stock | 673,200 | 63,460 | 960.9% | Repurchase of 179 million shares |
II Progress, Influence and Solutions with regard to Significant Events
| Summary of the significant event | Disclosure date | Index to the related announcement |
| Voluntary Announcement on Xiaomi Group’s Purchase of TCL Shares | 7 January 2019 | http://www.cninfo.com.cn |
| The Report on the Repurchase of Certain Public Shares | 14 February 2019 | |
| Announcement on the Ending of the Acting-in-Concert Relationship between the Biggest Shareholder and Dongxing | 27 February 2019 |
Progress of any share repurchase:
■ Applicable □ Not applicableUp to 31 March 2019, the Company has repurchased a cumulative number of 178,870,000 shares by way of centralized bidding in itsspecial securities account for repurchases, accounting for 1.32% of the Company’s total share capital. With the highest trading pricebeing RMB4.17/share and the lowest being RMB3.15/share, the total repurchase price is RMB609,466,232.25 (exclusive of tradingcharges).Progress of any reduction of the repurchased shares through centralized bidding:
□ Applicable ■ Not applicable
III Commitments that the Company’s Actual Controller, Shareholders, Related Parties,Acquirers, the Company Itself or Other Parties, Failed to Fulfill on Time during theReporting Period
No such cases in the Reporting Period.
IV Operating Performance Forecast for H1 2019
Warning of a forecast loss on or a forecast significant year-on-year change in the net profit of H1 2019, as well as explanation ofwhy:
□ Applicable ■Not applicable
V Securities Investments
Unit: RMB’000
| Security type | Security code | Security name | Measurement method | Beginning carrying amount | Purchased in Reporting Period | Sold in Reporting Period | Ending carrying amount | Gain/loss in Reporting Period | Accounting title | Funding source |
| Trust product | Not applicable | ZRT | At amortized cost | 1,017,170 | - | - | 1,040,550 | 23,380 | Investment in debt obligation | Equity capital |
| Huarui | |
| Announcement on Adjusting the Upper Limit of the Share Repurchase Price | 20 March 2019 |
| Announcement on the Investment in an Overseas Equity Investment Fund | 25 March 2019 |
| Announcement on the Quota Allocation and Equity Vesting of the First Top 400 and Key Personnel Stock Ownership Plan and the Global Partner Plan of TCL Corporation | 29 March 2019 |
| s | ||||||||||
| Entrusted wealth management | Not applicable | CDB Win-Win 2017666 | At amortized cost | - | 1,000,000 | - | 1,000,000 | - | Other current assets | Equity capital |
| Entrusted wealth management | Not applicable | CDB Win-Win 2017666 | At amortized cost | - | 1,000,000 | - | 1,000,000 | - | Other current assets | Equity capital |
| Entrusted wealth management | Not applicable | “Qianyuan-Shunxin” 2018-169 | At amortized cost | 200,000 | - | - | 202,300 | 2,300 | Other current assets | Equity capital |
| Entrusted wealth management | Not applicable | CDB-GKCB2019045 | At amortized cost | 200,000 | - | - | 201,650 | 1,650 | Other current assets | Equity capital |
| Entrusted wealth management | Not applicable | Ping An Bank-Corporate Structured Deposits | At amortized cost | 100,000 | - | - | 100,980 | 980 | Other current assets | Equity capital |
| Entrusted wealth management | Not applicable | CDB-GKCB2019044 | At amortized cost | 100,000 | - | - | 100,830 | 830 | Other current assets | Equity capital |
| Bond | Not applicable | ICBC “Suixin E” (targeted) | At amortized cost | - | 75,430 | - | 71,680 | -3,750 | Other current assets | Equity capital |
| Stock | 300241.SZ | Refond | At fair value | 40,740 | - | - | 60,750 | 20,020 | Trading financial assets | Equity capital |
| Stock | BABA | ALIBABA | At fair value | - | 49,860 | - | 51,230 | 1,380 | Trading financial assets | Equity capital |
| Other securities investments held at period-end | 2,633,270 | 1,842,300 | 622,330 | 4,111,110 | 257,870 | Not applicable | Equity capital | |
| Total | 4,291,170 | 3,967,590 | 622,330 | 7,941,070 | 304,640 |
VI Investments in Derivative Financial Instruments
| Funding source | Mostly foreign-currency revenue |
| Legal matters involved (if applicable) | Not applicable |
| Disclosure date of board announcement approving derivative investment (if any) | 28 April 2018 |
| Disclosure date of general meeting announcement approving derivative investment (if any) | Not applicable |
| Analysis of risks and control measures associated with derivative investments held in Reporting Period (including but not limited to market risk, liquidity risk, credit risk, operational risk, legal risk, etc.) | In order to effectively manage the exchange and interest rate risks of foreign currency assets, liabilities and cash flows, the Company, after fully analyzing the market trend and predicting the operation (including orders and capital plans), adopts forward foreign exchange contracts, options and interest rate swaps to avoid future exchange rate and interest rate risks. As its business scale changes subsequently, the Company will adjust the exchange rate risk management strategy according to the actual market conditions and business plans. Risk analysis: 1. Market risk: the financial derivatives business carried out by the Group belongs to hedging and trading business related to main business operations, and there is a market risk of loss due to the fluctuation of underlying interest and exchange rates, which lead to the fluctuation of prices of financial derivatives; 2. Liquidity risk: the derivatives business carried out by the Group is an over-the-counter transaction operated by a financial institution, and there is a risk of loss due to paying fees to the bank for the operations of evening up or selling the derivatives below the buying prices; 3. Performance risk: the Group conducts the derivative business based on rolling budgets for risk management, and there is a risk of performance failure due to deviation between the actual operating results and budgets; 4. Other risks: in the case of specific business operations, if the operator fails to finish the prescribed procedures for report or approval, or fails to record the financial derivative business information accurately, timely and completely, it may result in loss of derivative business or trading opportunities. Moreover, if the trading operator fails to fully understand the terms of transaction contracts or product information, the Group will face the legal risks and transaction losses therefrom. Measures taken for risk control: |
| 1. Basic management principles: the Group strictly follows the hedging principle and the main purpose of locking costs and avoiding risks. It is required that the financial derivatives business to be carried out matches the variety, size, direction and duration of spot goods, and no speculative trading should be involved. In the selection of hedging instruments, only simple financial derivatives that are closely related to the main business operation and meet the requirements of hedge accounting treatment should be selected, and avoid complex business that exceeds the prescribed business scope or is difficult to recognize in terms of risk and pricing; 2. The Group has formulated a special risk management system tailored to the risk characteristics of the financial derivatives business, covering all key aspects such as pre-emptive prevention, in-process monitoring and post-processing. Professional personnel are rationally arranged for investment decision-making, business operations and risk control. Investment participants are required to fully understand the risks of financial derivatives investment and strictly implement the business operations and risk management systems of derivatives. Before starting the derivatives business, the holding company must submit to the management department of the Group detailed business reports including its internal approval, main product terms, operational necessity, preparations, risk analysis, risk management strategy, fair value analysis and accounting methods, and special summary reports on business operated. Operations can be implemented only after getting opinions from the professional department of the Group; 3. Relevant departments should track the changes in the open market price or fair value of financial derivatives, timely assess the risk exposure changes of invested financial derivatives, and make reports to the board of directors on business development; 4. When the combined impairment of the fair value of derivatives and changes in the value of the assets (if any) used for risk hedging by the Group results in a total loss or floating loss amounting to 10% of the recently audited net assets of the Company, and the absolute amount exceeds RMB10 million, the Group will disclose it in a timely manner. | |
| Changes in market prices or fair value of derivative investments in Reporting Period (fair value analysis should include measurement method and related assumptions and parameters) | With the rapid expansion of overseas sales, the Company keeps following the above rules in the operation of forward foreign exchange contracts, interest rate swap contracts and futures contracts to avoid and hedge foreign exchange risks arising from operation and financing. It saw a loss of RMB35.99 million for the Reporting Period. The fair value of derivatives is determined by real-time quoted price of the foreign exchange market, based on the difference between the contractual price and the forward exchange rate quoted immediately in the foreign exchange market on the balance sheet date. |
| Major changes in accounting policies and specific accounting principles adopted for derivative investments in Reporting Period compared to last reporting period | No major changes |
| Opinion of independent directors on derivative investments and risk control | In view of the fact that nearly half of the main business of the Company is overseas, a wide range of settlement currencies is involved. The Company reduces exchange losses and locks transaction costs by reasonable financial derivatives, which helps to reduce risk control costs and improve company competitiveness. Risks are effectively controlled as the Company has |
Positions of derivative investments at the period-end:
taken series of measures such as conducting a rigorous internal evaluation for the operationof financial derivatives business, establishing a corresponding regulatory mechanism,formulating reasonable accounting policies and specific accounting principles, setting limitsfor risk exposure management, and operating simple financial derivatives. The contractingagent for financial derivatives business of the Company is a sound financial agent with goodcredit standing.The independent directors believe that the financial derivatives transactions carried out bythe Company in Q1 2019 are closely related to the daily operation needs of the Companywith controllable risks. The business is in line with the interests of minority shareholders ofthe company and the relevant laws and regulations.
| Unit: RMB’000 | |||||||
| Type of contract | Beginning amount | Ending amount | Gain/loss in Reporting Period | Ending contractual amount as % of the Company’s ending net asset value | |||
| Contractual amount | Actual amount | Contractual amount | Actual amount | Contractual amount | Actual amount | ||
| 1. Forward forex contracts | 25,316,330 | 860,700 | 23,208,770 | 777,660 | -35,990 | 36.57% | 1.23% |
| 2. Interest rate swaps | 4,653,250 | 139,600 | 4,565,310 | 136,960 | 7.19% | 0.22% | |
| 3. Currency swaps | 3,115,890 | 155,790 | 3,366,750 | 168,340 | 5.31% | 0.27% | |
| Total | 33,085,470 | 1,156,090 | 31,140,830 | 1,082,960 | -35,990 | 49.07% | 1.72% |
VII Communications with the Investment Community such as Researches, Inquiries andInterviews during the Reporting Period
| Date | Way of communication | Type of communication party | Index to main information communicated |
| 18 January 2019 | By visit | Institutional investor | www.cninfo.com.cn |
| 12 February 2019 | By visit | Institutional investor | www.cninfo.com.cn |
| 18 February 2019 | By visit | Institutional investor | www.cninfo.com.cn |
| 19 February 2019 | By visit | Institutional investor | www.cninfo.com.cn |
| 20 February 2019 | By visit | Institutional investor | www.cninfo.com.cn |
| 20 February 2019 | By visit | Institutional investor | www.cninfo.com.cn |
| 25 February 2019 | By visit | Institutional investor | www.cninfo.com.cn |
| 27 February 2019 | By visit | Institutional investor | www.cninfo.com.cn |
| 1 March 2019 | By visit | Institutional investor | www.cninfo.com.cn |
| 4 March 2019 | By visit | Institutional investor | www.cninfo.com.cn |
| 7 March 2019 | By visit | Institutional investor | www.cninfo.com.cn |
| 20 March 2019 | By visit | Institutional investor | www.cninfo.com.cn |
| 28 March 2019 | By visit | Institutional investor | www.cninfo.com.cn |
| 29 March 2019 | By visit | Institutional investor | www.cninfo.com.cn |
VIII Irregularities in the Provision of Guarantees
□ Applicable ■Not applicableNo such cases in the Reporting Period.
IX Occupation of the Company’s Capital by the Controlling Shareholder or Its RelatedParties for Non-Operating Purposes
□ Applicable ■Not applicableNo such cases in the Reporting Period.
Part V Financial Statements
I Financial Statements
1. Consolidated Balance Sheet
Prepared by TCL Corporation
Unit: RMB
| Item | 31 March 2019 | 31 December 2018 |
| Current assets: | ||
| Monetary capital | 24,088,968,884.00 | 26,801,342,532.00 |
| Settlement reserve | ||
| Interbank loans granted | ||
| Trading financial assets | 4,264,916,057.00 | |
| Financial assets at fair value through profit or loss | 1,137,579,704.00 | |
| Derivative financial assets | 54,973,850.00 | |
| Notes and accounts receivable | 20,146,193,381.00 | 17,923,666,528.00 |
| Including: Notes receivable | 5,256,215,084.00 | 4,272,221,611.00 |
| Accounts receivable | 14,889,978,297.00 | 13,651,444,917.00 |
| Prepayments | 2,163,070,379.00 | 1,194,972,138.00 |
| Premiums receivable | ||
| Reinsurance receivables | ||
| Receivable reinsurance contract reserve | ||
| Other receivables | 5,950,284,413.00 | 5,719,378,954.00 |
| Including: Interest receivable | 85,040,831.00 | 70,777,805.00 |
| Dividends receivable | 90,505.00 | 47,748,475.00 |
| Financial assets purchased under resale agreements | ||
| Inventories | 16,426,745,707.00 | 19,887,971,677.00 |
| Contractual assets | ||
| Assets classified as held for sale | 18,792,459.00 | |
| Current portion of non-current assets | ||
| Other current assets | 8,685,289,827.00 | 7,624,097,005.00 |
| Total current assets | 81,780,442,498.00 | 80,307,800,997.00 |
| Non-current assets: |
| Loans and advances to customers | 1,224,881,193.00 | 1,123,799,564.00 |
| Investments in debt obligations | 1,289,850,846.00 | |
| Available-for-sale financial assets | 4,270,844,592.00 | |
| Investments in other debt obligations | ||
| Held-to-maturity investments | ||
| Long-term receivables | ||
| Long-term equity investments | 18,397,314,513.00 | 16,957,109,519.00 |
| Investments in other equity instruments | 1,839,955,711.00 | |
| Other non-current financial assets | 361,562,403.00 | |
| Investment property | 1,717,838,413.00 | 1,676,210,635.00 |
| Fixed assets | 41,913,424,936.00 | 35,983,131,306.00 |
| Construction in progress | 36,057,971,637.00 | 38,924,586,355.00 |
| Productive living assets | ||
| Oil and gas assets | ||
| Right-of-use assets | ||
| Intangible assets | 6,298,044,984.00 | 5,954,872,994.00 |
| R&D expense | 1,055,423,705.00 | 1,011,503,608.00 |
| Goodwill | 357,111,511.00 | 357,111,511.00 |
| Long-term prepaid expense | 1,838,972,075.00 | 1,861,333,252.00 |
| Deferred income tax assets | 723,763,800.00 | 797,881,851.00 |
| Other non-current assets | 3,806,145,060.00 | 3,537,755,555.00 |
| Total non-current assets | 116,882,260,787.00 | 112,456,140,742.00 |
| Total assets | 198,662,703,285.00 | 192,763,941,739.00 |
| Current liabilities: | ||
| Short-term borrowings | 15,961,294,403.00 | 13,287,723,834.00 |
| Borrowings from the central bank | 128,829,897.00 | 231,404,499.00 |
| Interbank loans obtained | 100,000,000.00 | |
| Trading financial liabilities | 112,605,100.00 | |
| Financial liabilities at fair value through profit or loss | 212,097,067.00 | |
| Derivative financial liabilities | 125,141,628.00 | |
| Notes and accounts payable | 27,710,400,977.00 | 27,015,285,496.00 |
| Advances from customers | 1,911,839,686.00 | 1,460,773,236.00 |
| Financial assets sold under repurchase agreements | 182,566,672.00 |
| Customer deposits and interbank deposits | 284,563,605.00 | 545,052,800.00 |
| Payables for acting trading of securities | ||
| Payables for underwriting of securities | ||
| Payroll payable | 2,140,025,325.00 | 2,891,392,699.00 |
| Taxes payable | 675,382,925.00 | 716,534,266.00 |
| Other payables | 27,739,834,774.00 | 23,120,774,383.00 |
| Including: Interest payable | 847,491,714.00 | 586,819,775.00 |
| Dividends payable | 6,609,838.00 | 22,552,834.00 |
| Handling charges and commissions payable | ||
| Reinsurance payables | ||
| Contractual liabilities | ||
| Liabilities directly associated with assets classified as held for sale | ||
| Current portion of non-current liabilities | 3,534,939,770.00 | 6,009,915,080.00 |
| Other current liabilities | 1,111,570,164.00 | 3,344,450,936.00 |
| Total current liabilities | 81,718,994,926.00 | 78,835,404,296.00 |
| Non-current liabilities: | ||
| Insurance contract reserve | ||
| Long-term borrowings | 37,432,475,830.00 | 36,864,922,669.00 |
| Bonds payable | 12,986,708,018.00 | 12,985,628,025.00 |
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Lease liabilities | ||
| Long-term payables | 73,897,294.00 | 73,901,549.00 |
| Long-term payroll payable | 23,999,609.00 | 24,245,725.00 |
| Provisions | ||
| Deferred income | 2,392,116,873.00 | 2,637,228,528.00 |
| Deferred income tax liabilities | 445,335,289.00 | 440,352,161.00 |
| Other non-current liabilities | 126,889,939.00 | 30,586,139.00 |
| Total non-current liabilities | 53,481,422,852.00 | 53,056,864,796.00 |
| Total liabilities | 135,200,417,778.00 | 131,892,269,092.00 |
| Owners’ equity: | ||
| Share capital | 13,549,648,507.00 | 13,549,648,507.00 |
| Other equity instruments | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Capital reserves | 6,026,250,805.00 | 5,996,741,456.00 |
| Less: Treasury stock | 673,197,021.00 | 63,457,893.00 |
| Other comprehensive income | -656,354,091.00 | -1,174,161,842.00 |
| Specific reserve | ||
| Surplus reserves | 2,184,261,029.00 | 2,184,261,029.00 |
| General reserve | 360,766.00 | 360,766.00 |
| Retained earnings | 10,655,644,038.00 | 10,000,972,928.00 |
| Total equity attributable to owners of the Company as the parent | 31,086,614,033.00 | 30,494,364,951.00 |
| Non-controlling interests | 32,375,671,474.00 | 30,377,307,696.00 |
| Total owners’ equity | 63,462,285,507.00 | 60,871,672,647.00 |
| Total liabilities and owners’ equity | 198,662,703,285.00 | 192,763,941,739.00 |
Legal representative: Li Dongsheng Person-in-charge of financial affairs: Du JuanPerson-in-charge of the financial department: Xi Wenbo
2. Balance Sheet of the Company as the Parent
Unit: RMB
| Item | 31 March 2019 | 31 December 2018 |
| Current assets: | ||
| Monetary capital | 4,403,537,268.00 | 1,328,706,659.00 |
| Trading financial assets | 60,751,014.00 | |
| Financial assets at fair value through profit or loss | 711,741,161.00 | |
| Derivative financial assets | ||
| Notes and accounts receivable | 262,533,285.00 | 215,455,944.00 |
| Including: Notes receivable | 13,751,045.00 | 20,496,958.00 |
| Accounts receivable | 248,782,240.00 | 194,958,986.00 |
| Prepayments | 5,794,585.00 | 187,895,276.00 |
| Other receivables | 17,681,430,433.00 | 18,773,352,761.00 |
| Including: Interest receivable | 98,741,623.00 | 212,199,974.00 |
| Dividends receivable | 4,211,824,115.00 | 4,211,824,115.00 |
| Inventories | 105,714,578.00 | 825,999.00 |
| Contractual assets | ||
| Assets classified as held for sale | ||
| Current portion of non-current assets | ||
| Other current assets | 26,138,285.00 | 1,873,961,604.00 |
| Total current assets | 22,545,899,448.00 | 23,091,939,404.00 |
| Non-current assets: | ||
| Investments in debt obligations | 1,289,850,846.00 | |
| Available-for-sale financial assets | 1,185,429,885.00 | |
| Investments in other debt obligations | ||
| Held-to-maturity investments | ||
| Long-term receivables | ||
| Long-term equity investments | 42,889,513,265.00 | 41,803,449,993.00 |
| Investments in other equity instruments | 1,144,618,009.00 | |
| Other non-current financial assets | 41,868,710.00 | |
| Investment property | 4,343,712.00 | 5,158,426.00 |
| Fixed assets | 35,351,392.00 | 40,058,266.00 |
| Construction in progress | 1,241,308.00 | 551,693.00 |
| Productive living assets | ||
| Oil and gas assets | ||
| Right-of-use assets | ||
| Intangible assets | 19,547,525.00 | 18,776,430.00 |
| R&D expense | ||
| Goodwill | ||
| Long-term prepaid expense | 457,851,024.00 | 461,055,759.00 |
| Deferred income tax assets | ||
| Other non-current assets | ||
| Total non-current assets | 45,884,185,791.00 | 43,514,480,452.00 |
| Total assets | 68,430,085,239.00 | 66,606,419,856.00 |
| Current liabilities: | ||
| Short-term borrowings | 4,230,260,000.00 | 3,300,260,000.00 |
| Trading financial liabilities | ||
| Financial liabilities at fair value through profit or loss | ||
| Derivative financial liabilities | 3,768,280.00 | |
| Notes and accounts payable | 416,730,669.00 | 376,509,623.00 |
| Advances from customers | 23,602,191.00 | 38,614,679.00 |
| Contractual liabilities | ||
| Payroll payable | 66,765,124.00 | 98,753,095.00 |
| Taxes payable | 4,153,418.00 | 3,437,498.00 |
| Other payables | 12,041,385,946.00 | 6,407,741,790.00 |
| Including: Interest payable | 453,342,112.00 | 471,294,072.00 |
| Dividends payable | 4,549,747.00 | 4,549,747.00 |
| Liabilities directly associated with assets classified as held for sale | ||
| Current portion of non-current liabilities | 3,840,956,000.00 | 3,000,000,000.00 |
| Other current liabilities | 2,000,000,000.00 | |
| Total current liabilities | 20,627,621,628.00 | 15,225,316,685.00 |
| Non-current liabilities: | ||
| Long-term borrowings | 2,300,000,000.00 | 5,340,956,000.00 |
| Bonds payable | 12,986,708,018.00 | 12,985,628,025.00 |
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Lease liabilities | ||
| Long-term payables | 700,000.00 | 700,000.00 |
| Long-term payroll payable | 23,999,609.00 | 24,245,725.00 |
| Provisions | ||
| Deferred income | 54,826,723.00 | 51,506,173.00 |
| Deferred income tax liabilities | ||
| Other non-current liabilities | ||
| Total non-current liabilities | 15,366,234,350.00 | 18,403,035,923.00 |
| Total liabilities | 35,993,855,978.00 | 33,628,352,608.00 |
| Owners’ equity: | ||
| Share capital | 13,549,648,507.00 | 13,549,648,507.00 |
| Other equity instruments | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Capital reserves | 8,551,666,338.00 | 8,565,337,838.00 |
| Less: Treasury stock | 673,197,021.00 | 63,457,893.00 |
| Other comprehensive income | -25,418,345.00 | -24,869,176.00 |
| Specific reserve |
| Surplus reserves | 1,982,196,590.00 | 1,982,196,590.00 |
| Retained earnings | 9,051,333,192.00 | 8,969,211,382.00 |
| Total owners’ equity | 32,436,229,261.00 | 32,978,067,248.00 |
| Total liabilities and owners’ equity | 68,430,085,239.00 | 66,606,419,856.00 |
Legal representative: Li Dongsheng Person-in-charge of financial affairs: Du JuanPerson-in-charge of the financial department: Xi Wenbo
3. Consolidated Income Statement
Unit: RMB
| Item | Q1 2019 | Q1 2018 |
| 1. Revenue | 29,650,896,518.00 | 25,663,947,589.00 |
| Including: Operating revenue | 29,600,956,875.00 | 25,629,844,055.00 |
| Interest income | 49,939,643.00 | 34,103,534.00 |
| Premium income | ||
| Handling charge and commission income | ||
| 2. Costs and expenses | 29,397,234,192.00 | 25,520,120,772.00 |
| Including: Cost of sales | 24,435,034,582.00 | 20,641,198,558.00 |
| Interest expense | 18,216,588.00 | 17,002,816.00 |
| Handling charge and commission expense | ||
| Surrenders | ||
| Net claims paid | ||
| Net amount provided as insurance contract reserve | ||
| Expenditure on policy dividends | ||
| Reinsurance premium expense | ||
| Taxes and surcharges | 194,829,143.00 | 158,904,425.00 |
| Selling expense | 2,182,421,040.00 | 2,087,965,694.00 |
| Administrative expense | 900,923,674.00 | 982,319,715.00 |
| R&D expense | 1,162,045,199.00 | 891,141,786.00 |
| Finance costs | 309,514,284.00 | 451,802,288.00 |
| Including: Interest expense | 659,007,115.00 | 418,425,531.00 |
| Interest income | 199,963,103.00 | 151,314,577.00 |
| Asset impairment loss | 171,248,740.00 | 289,785,490.00 |
| Credit impairment loss | 23,000,942.00 | |
| Add: Other income | 465,016,958.00 | 359,075,871.00 |
| Return on investment (“-” for loss) | 536,480,452.00 | 480,997,437.00 |
| Including: Share of profit or loss of joint ventures and associates | 233,511,429.00 | 193,147,151.00 |
| Foreign exchange gain (“-” for loss) | -2,170,320.00 | -11,582,672.00 |
| Net gain on exposure hedges (“-” for loss) | ||
| Gain on changes in fair value (“-” for loss) | -55,490,496.00 | 89,554,383.00 |
| Asset disposal income (“-” for loss) | -410,714.00 | -4,236,068.00 |
| 3. Operating profit (“-” for loss) | 1,197,088,206.00 | 1,057,635,768.00 |
| Add: Non-operating income | 30,958,150.00 | 22,298,944.00 |
| Less: Non-operating expense | 8,628,523.00 | 22,512,259.00 |
| 4. Profit before tax (“-” for loss) | 1,219,417,833.00 | 1,057,422,453.00 |
| Less: Income tax expense | 213,340,303.00 | 269,376,944.00 |
| 5. Net profit (“-” for net loss) | 1,006,077,530.00 | 788,045,509.00 |
| 5.1 By operating continuity | ||
| 5.1.1 Net profit from continuing operations (“-” for net loss) | 1,006,077,530.00 | 788,045,509.00 |
| 5.1.2 Net profit from discontinued operations (“-” for net loss) | ||
| 5.2 By ownership | ||
| 5.2.1 Net profit attributable to owners of the Company as the parent | 779,088,389.00 | 730,837,280.00 |
| 5.2.1 Net profit attributable to non-controlling interests | 226,989,141.00 | 57,208,229.00 |
| 6. Other comprehensive income, net of tax | 360,421,531.00 | 787,217,077.00 |
| Attributable to owners of the Company as the parent | 182,670,669.00 | 616,298,668.00 |
| 6.1 Items that will not be reclassified to profit or loss | ||
| 6.1.1 Changes caused by remeasurements on defined benefit pension schemes | ||
| 6.1.2 Other comprehensive income that will not be reclassified to profit or loss under the equity method | ||
| 6.1.3 Changes in the fair value of investments in other equity instruments | ||
| 6.1.4 Changes in the fair value of the company’s credit risks |
| 6.1.5 Other | ||
| 6.2 Items that will be reclassified to profit or loss | 182,670,669.00 | 616,298,668.00 |
| 6.2.1 Other comprehensive income that will be reclassified to profit or loss under the equity method | -219,502,741.00 | 14,098,292.00 |
| 6.2.2 Changes in the fair value of investments in other debt obligations | ||
| 6.2.3 Gain/Loss on changes in the fair value of available-for-sale financial assets | 31,028,892.00 | |
| 6.2.4 Other comprehensive income arising from the reclassification of financial assets | ||
| 6.2.5 Gain/Loss arising from the reclassification of held-to-maturity investments to available-for-sale financial assets | ||
| 6.2.6 Allowance for credit impairments in investments in other debt obligations | ||
| 6.2.7 Reserve for cash flow hedges | -1,824,916.00 | 119,029,402.00 |
| 6.2.8 Differences arising from the translation of foreign currency-denominated financial statements | 373,035,904.00 | 454,721,405.00 |
| 6.2.9 Other | 30,962,422.00 | -2,579,323.00 |
| Attributable to non-controlling interests | 177,750,862.00 | 170,918,409.00 |
| 7. Total comprehensive income | 1,366,499,061.00 | 1,575,262,586.00 |
| Attributable to owners of the Company as the parent | 961,759,058.00 | 1,347,135,948.00 |
| Attributable to non-controlling interests | 404,740,003.00 | 228,126,638.00 |
| 8. Earnings per share | ||
| 8.1 Basic earnings per share | 0.0578 | 0.0540 |
| 8.2 Diluted earnings per share | 0.0576 | 0.0540 |
Legal representative: Li Dongsheng Person-in-charge of financial affairs: Du JuanPerson-in-charge of the financial department: Xi Wenbo
4. Income Statement of the Company as the Parent
Unit: RMB
| Item | Q1 2019 | Q1 2018 |
| 1. Operating revenue | 391,405,520.00 | 388,286,981.00 |
| Less: Cost of sales | 336,142,776.00 | 345,516,148.00 |
| Taxes and surcharges | 5,415,554.00 | 3,405,914.00 |
| Selling expense | 7,861,046.00 | 5,521,622.00 |
| Administrative expense | 59,858,577.00 | 55,299,895.00 |
| R&D expense | 13,988,515.00 | 24,432,765.00 |
| Finance costs | 174,605,997.00 | 189,083,274.00 |
| Including: Interest expense | 343,515,714.00 | 280,527,876.00 |
| Interest income | 202,474,056.00 | 314,004,140.00 |
| Asset impairment loss | ||
| Credit impairment loss | ||
| Add: Other income | 3,481,500.00 | |
| Return on investment (“-” for loss) | 351,140,692.00 | 246,182,662.00 |
| Including: Share of profit or loss of joint ventures and associates | 225,928,594.00 | 190,095,753.00 |
| Net gain on exposure hedges (“-” for loss) | ||
| Gain on changes in fair value (“-” for loss) | -75,625,521.00 | -60,335,621.00 |
| Asset disposal income (“-” for loss) | 12,900.00 | 2,093.00 |
| 2. Operating profit (“-” for loss) | 72,542,626.00 | -49,123,503.00 |
| Add: Non-operating income | 8,843,380.00 | 3,946,079.00 |
| Less: Non-operating expense | 656,497.00 | |
| 3. Profit before tax (“-” for loss) | 81,386,006.00 | -45,833,921.00 |
| Less: Income tax expense | 515,489.00 | |
| 4. Net profit (“-” for net loss) | 81,386,006.00 | -46,349,410.00 |
| 4.1 Net profit from continuing operations (“-” for net loss) | 81,386,006.00 | -46,349,410.00 |
| 4.2 Net profit from discontinued operations (“-” for net loss) | ||
| 5. Other comprehensive income, net of tax | -7,092,510.00 | |
| 5.1 Items that will not be reclassified to profit or loss | ||
| 5.1.1 Changes caused by remeasurements on defined benefit pension schemes |
| 5.1.2 Other comprehensive income that will not be reclassified to profit or loss under the equity method | ||
| 5.1.3 Changes in the fair value of investments in other equity instruments | ||
| 5.1.4 Changes in the fair value of the company’s credit risks | ||
| 5.1.5 Other | ||
| 5.2 Items that will be reclassified to profit or loss | -7,092,510.00 | |
| 5.2.1 Other comprehensive income that will be reclassified to profit or loss under the equity method | ||
| 5.2.2 Changes in the fair value of investments in other debt obligations | ||
| 5.2.3 Gain/Loss on changes in the fair value of available-for-sale financial assets | 1,674,009.00 | |
| 5.2.4 Other comprehensive income arising from the reclassification of financial assets | ||
| 5.2.5 Gain/Loss arising from the reclassification of held-to-maturity investments to available-for-sale financial assets | ||
| 5.2.6 Allowance for credit impairments in investments in other debt obligations | ||
| 5.2.7 Reserve for cash flow hedges | ||
| 5.2.8 Differences arising from the translation of foreign currency-denominated financial statements | ||
| 5.2.9 Other | -8,766,519.00 | |
| 6. Total comprehensive income | 81,386,006.00 | -53,441,920.00 |
| 7. Earnings per share | ||
| 7.1 Basic earnings per share | ||
| 7.2 Diluted earnings per share |
Legal representative: Li Dongsheng Person-in-charge of financial affairs: Du JuanPerson-in-charge of the financial department: Xi Wenbo
5. Consolidated Cash Flow Statement
Unit: RMB
| Item | Q1 2019 | Q1 2018 |
| 1. Cash flows from operating activities: | ||
| Proceeds from sale of commodities and rendering of services | 29,948,578,250.00 | 29,764,501,809.00 |
| Net increase in customer deposits and interbank deposits | -260,489,195.00 | 136,586,069.00 |
| Net increase in borrowings from the central bank | -102,574,602.00 | -29,593,992.00 |
| Net increase in loans from other financial institutions | 100,000,000.00 | |
| Premiums received on original insurance contracts | ||
| Net proceeds from reinsurance | ||
| Net increase in deposits and investments of policy holders | ||
| Net increase in proceeds from disposal of financial assets at fair value through profit or loss | ||
| Interest, handling charges and commissions received | 50,234,049.00 | 34,372,209.00 |
| Net increase in interbank loans obtained | ||
| Net increase in proceeds from repurchase transactions | ||
| Net proceeds from acting trading of securities | ||
| Tax rebates | 1,527,267,914.00 | 953,871,586.00 |
| Cash generated from other operating activities | 611,209,398.00 | 1,108,465,105.00 |
| Subtotal of cash generated from operating activities | 31,874,225,814.00 | 31,968,202,786.00 |
| Payments for commodities and services | 22,624,066,728.00 | 21,970,872,817.00 |
| Net increase in loans and advances to customers | 101,081,629.00 | 282,643,965.00 |
| Net increase in deposits in the central bank and in interbank loans granted | -73,444,006.00 | -3,012,530,248.00 |
| Payments for claims on original insurance contracts |
| Net increase in financial assets held for trading purposes | ||
| Net increase in interbank loans granted | ||
| Interest, handling charges and commissions paid | ||
| Policy dividends paid | ||
| Cash paid to and for employees | 2,262,538,883.00 | 1,944,827,399.00 |
| Taxes paid | 1,528,965,251.00 | 1,179,065,695.00 |
| Cash used in other operating activities | 3,187,114,088.00 | 6,568,936,598.00 |
| Subtotal of cash used in operating activities | 29,630,322,573.00 | 28,933,816,226.00 |
| Net cash generated from/used in operating activities | 2,243,903,241.00 | 3,034,386,560.00 |
| 2. Cash flows from investing activities: | ||
| Proceeds from disinvestment | 6,994,293,557.00 | 560,035,833.00 |
| Return on investment | 107,806,341.00 | 129,226,315.00 |
| Net proceeds from the disposal of fixed assets, intangible assets and other long-lived assets | 12,094,929.00 | 3,393,822.00 |
| Net proceeds from the disposal of subsidiaries and other business units | 857,657,948.00 | 61,928,394.00 |
| Cash generated from other investing activities | ||
| Subtotal of cash generated from investing activities | 7,971,852,775.00 | 754,584,364.00 |
| Payments for the acquisition of fixed assets, intangible assets and other long-lived assets | 6,728,764,686.00 | 5,368,257,854.00 |
| Payments for investments | 7,860,153,161.00 | 6,579,130,823.00 |
| Net increase in pledged loans granted | ||
| Net payments for the acquisition of subsidiaries and other business units | 170,197,901.00 | |
| Cash used in other investing activities | ||
| Subtotal of cash used in investing activities | 14,759,115,748.00 | 11,947,388,677.00 |
| Net cash generated from/used in investing activities | -6,787,262,973.00 | -11,192,804,313.00 |
| 3. Cash flows from financing activities: | ||
| Capital contributions received | 1,717,989,160.00 | 1,557,219,649.00 |
| Including: Capital contributions by non-controlling interests to subsidiaries | 1,717,989,160.00 | 1,557,219,649.00 |
| Borrowings obtained | 11,450,834,740.00 | 12,661,658,722.00 |
| Net proceeds from the issuance of bonds | ||
| Cash generated from other financing activities | 3,508,750.00 | |
| Subtotal of cash generated from financing activities | 13,168,823,900.00 | 14,222,387,121.00 |
| Repayments of borrowings | 10,215,385,719.00 | 8,721,285,702.00 |
| Payments for interest and dividends | 633,721,052.00 | 705,027,234.00 |
| Including: Dividends paid by subsidiaries to non-controlling interests | 29,586,633.00 | 32,655,333.00 |
| Cash used in other financing activities | 650,919,985.00 | 28,400,000.00 |
| Subtotal of cash used in financing activities | 11,500,026,756.00 | 9,454,712,936.00 |
| Net cash generated from/used in financing activities | 1,668,797,144.00 | 4,767,674,185.00 |
| 4. Effect of foreign exchange rate changes on cash and cash equivalents | 141,176,713.00 | -636,628,114.00 |
| 5. Net increase in cash and cash equivalents | -2,733,385,875.00 | -4,027,371,682.00 |
| Add: Cash and cash equivalents, beginning of the period | 25,702,383,482.00 | 23,281,170,084.00 |
| 6. Cash and cash equivalents, end of the period | 22,968,997,607.00 | 19,253,798,402.00 |
Legal representative: Li Dongsheng Person-in-charge of financial affairs: Du JuanPerson-in-charge of the financial department: Xi Wenbo
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
| Item | Q1 2019 | Q1 2018 |
| 1. Cash flows from operating activities: | ||
| Proceeds from sale of commodities and rendering of services | 323,551,914.00 | 403,410,287.00 |
| Tax rebates | 332,021.00 |
| Cash generated from other operating activities | 6,660,157,054.00 | 5,832,730,512.00 |
| Subtotal of cash generated from operating activities | 6,984,040,989.00 | 6,236,140,799.00 |
| Payments for commodities and services | 362,320,629.00 | 466,906,357.00 |
| Cash paid to and for employees | 44,495,298.00 | 55,085,763.00 |
| Taxes paid | 18,593,335.00 | 20,124,908.00 |
| Cash used in other operating activities | 2,809,080,047.00 | 337,042,985.00 |
| Subtotal of cash used in operating activities | 3,234,489,309.00 | 879,160,013.00 |
| Net cash generated from/used in operating activities | 3,749,551,680.00 | 5,356,980,786.00 |
| 2. Cash flows from investing activities: | ||
| Proceeds from disinvestment | 5,542,600,000.00 | 199,017,050.00 |
| Return on investment | 54,718,062.00 | 69,966,648.00 |
| Net proceeds from the disposal of fixed assets, intangible assets and other long-lived assets | 88,286.00 | 2,449.00 |
| Net proceeds from the disposal of subsidiaries and other business units | ||
| Cash generated from other investing activities | ||
| Subtotal of cash generated from investing activities | 5,597,406,348.00 | 268,986,147.00 |
| Payments for the acquisition of fixed assets, intangible assets and other long-lived assets | 4,812,806.00 | 1,979,464.00 |
| Payments for investments | 1,992,870,615.00 | 5,584,993,272.00 |
| Net payments for the acquisition of subsidiaries and other business units | ||
| Cash used in other investing activities | ||
| Subtotal of cash used in investing activities | 1,997,683,421.00 | 5,586,972,736.00 |
| Net cash generated from/used in investing activities | 3,599,722,927.00 | -5,317,986,589.00 |
| 3. Cash flows from financing activities: | ||
| Capital contributions received | ||
| Borrowings obtained | 3,810,956,000.00 | 3,561,712,000.00 |
| Net proceeds from the issuance of bonds | ||
| Cash generated from other financing activities | ||
| Subtotal of cash generated from financing activities | 3,810,956,000.00 | 3,561,712,000.00 |
| Repayments of borrowings | 7,080,956,000.00 | 3,066,712,000.00 |
| Payments for interest and dividends | 323,287,951.00 | 3,238,037.00 |
| Cash used in other financing activities | 650,919,985.00 | |
| Subtotal of cash used in financing activities | 8,055,163,936.00 | 3,069,950,037.00 |
| Net cash generated from/used in financing activities | -4,244,207,936.00 | 491,761,963.00 |
| 4. Effect of foreign exchange rate changes on cash and cash equivalents | -30,210,032.00 | -42,912,814.00 |
| 5. Net increase in cash and cash equivalents | 3,074,856,639.00 | 487,843,346.00 |
| Add: Cash and cash equivalents, beginning of the period | 1,328,680,629.00 | 1,106,498,974.00 |
| 6. Cash and cash equivalents, end of the period | 4,403,537,268.00 | 1,594,342,320.00 |
Legal representative: Li Dongsheng Person-in-charge of financial affairs: Du JuanPerson-in-charge of the financial department: Xi Wenbo
II Adjustments to the Financial Statements
1. Adjustments to the Financial Statements at the Beginning of the First Execution Year of any NewStandards Governing Financial Instruments, Revenue or Leases
√ Applicable □ Not applicableThe consolidated balance sheet:
Unit: RMB
| Item | 31 December 2018 | 1 January 2019 | Adjustment |
| Current assets: | |||
| Monetary capital | 26,801,342,532.00 | 26,801,342,532.00 | - |
| Settlement reserve | |||
| Interbank loans granted | |||
| Trading financial assets | Not applicable | 2,572,150,493.00 | 2,572,150,493.00 |
| Financial assets at fair value through profit or loss | 1,137,579,704.00 | Not applicable | -1,137,579,704.00 |
| Derivative financial assets | 197,798,188.00 | 197,798,188.00 | |
| Notes and accounts receivable | 17,923,666,528.00 | 17,919,785,805.00 | -3,880,723.00 |
| Including: Notes receivable | 4,272,221,611.00 | 4,272,221,611.00 | |
| Accounts receivable | 13,651,444,917.00 | 13,647,564,194.00 | -3,880,723.00 |
| Prepayments | 1,194,972,138.00 | 1,194,972,138.00 | - |
| Premiums receivable | |||
| Reinsurance receivables | |||
| Receivable reinsurance contract reserve | |||
| Other receivables | 5,719,378,954.00 | 5,716,183,466.00 | -3,195,488.00 |
| Including: Interest receivable | 70,777,805.00 | 70,777,109.00 | -696.00 |
| Dividends receivable | 47,748,475.00 | 47,748,475.00 | - |
| Financial assets purchased under resale agreements | |||
| Inventories | 19,887,971,677.00 | 19,887,971,677.00 | - |
| Contractual assets | Not applicable | ||
| Assets classified as held for sale | 18,792,459.00 | 18,792,459.00 | - |
| Current portion of non-current assets | |||
| Other current assets | 7,624,097,005.00 | 7,624,097,005.00 | - |
| Total current assets | 80,307,800,997.00 | 81,933,093,763.00 | 1,625,292,766.00 |
| Non-current assets: | |||
| Loans and advances to customers | 1,123,799,564.00 | 1,123,799,564.00 | - |
| Investments in debt obligations | Not applicable | ||
| Available-for-sale financial assets | 4,270,844,592.00 | Not applicable | -4,270,844,592.00 |
| Investments in other debt obligations | Not applicable | ||
| Held-to-maturity | - | Not applicable | - |
| investments | |||
| Long-term receivables | |||
| Long-term equity investments | 16,957,109,519.00 | 17,178,411,552.00 | 221,302,033.00 |
| Investments in other equity instruments | Not applicable | 1,618,075,184.00 | 1,618,075,184.00 |
| Other non-current financial assets | Not applicable | 1,034,117,327.00 | 1,034,117,327.00 |
| Investment property | 1,676,210,635.00 | 1,676,210,635.00 | - |
| Fixed assets | 35,983,131,306.00 | 35,983,131,306.00 | - |
| Construction in progress | 38,924,586,355.00 | 38,924,586,355.00 | - |
| Productive living assets | |||
| Oil and gas assets | |||
| Right-of-use assets | Not applicable | ||
| Intangible assets | 5,954,872,994.00 | 5,954,872,994.00 | - |
| R&D expense | 1,011,503,608.00 | 1,011,503,608.00 | - |
| Goodwill | 357,111,511.00 | 357,111,511.00 | - |
| Long-term prepaid expense | 1,861,333,252.00 | 1,861,333,252.00 | - |
| Deferred income tax assets | 797,881,851.00 | 797,881,851.00 | - |
| Other non-current assets | 3,537,755,555.00 | 3,537,755,555.00 | - |
| Total non-current assets | 112,456,140,742.00 | 111,058,790,694.00 | -1,397,350,048.00 |
| Total assets | 192,763,941,739.00 | 192,991,884,457.00 | 227,942,718.00 |
| Current liabilities: | |||
| Short-term borrowings | 13,287,723,834.00 | 13,287,723,834.00 | - |
| Borrowings from the central bank | 231,404,499.00 | 231,404,499.00 | - |
| Interbank loans obtained | |||
| Trading financial liabilities | Not applicable | 143,456,979.00 | 143,456,979.00 |
| Financial liabilities at fair value through profit or loss | 212,097,067.00 | Not applicable | -212,097,067.00 |
| Derivative financial liabilities | 68,640,088.00 | 68,640,088.00 | |
| Notes and accounts payable | 27,015,285,496.00 | 27,015,285,496.00 | - |
| Advances from customers | 1,460,773,236.00 | 1,460,773,236.00 | - |
| Financial assets sold under repurchase agreements |
| Customer deposits and interbank deposits | 545,052,800.00 | 545,052,800.00 | - |
| Payables for acting trading of securities | |||
| Payables for underwriting of securities | |||
| Payroll payable | 2,891,392,699.00 | 2,891,392,699.00 | - |
| Taxes payable | 716,534,266.00 | 716,534,266.00 | - |
| Other payables | 23,120,774,383.00 | 23,120,774,383.00 | - |
| Including: Interest payable | 586,819,775.00 | 586,819,775.00 | - |
| Dividends payable | 22,552,834.00 | 22,552,834.00 | - |
| Handling charges and commissions payable | |||
| Reinsurance payables | |||
| Contractual liabilities | Not applicable | ||
| Liabilities directly associated with assets classified as held for sale | |||
| Current portion of non-current liabilities | 6,009,915,080.00 | 6,009,915,080.00 | - |
| Other current liabilities | 3,344,450,936.00 | 3,344,450,936.00 | - |
| Total current liabilities | 78,835,404,296.00 | 78,835,404,296.00 | - |
| Non-current liabilities: | |||
| Insurance contract reserve | |||
| Long-term borrowings | 36,864,922,669.00 | 36,864,922,669.00 | - |
| Bonds payable | 12,985,628,025.00 | 12,985,628,025.00 | - |
| Including: Preferred shares | |||
| Perpetual bonds | |||
| Lease liabilities | Not applicable | ||
| Long-term payables | 73,901,549.00 | 73,901,549.00 | - |
| Long-term payroll payable | 24,245,725.00 | 24,245,725.00 | - |
| Provisions | |||
| Deferred income | 2,637,228,528.00 | 2,637,228,528.00 | - |
| Deferred income tax liabilities | 440,352,161.00 | 441,171,726.00 | 819,565.00 |
| Other non-current liabilities | 30,586,139.00 | 30,586,139.00 | - |
| Total non-current liabilities | 53,056,864,796.00 | 53,057,684,361.00 | 819,565.00 |
| Total liabilities | 131,892,269,092.00 | 131,893,088,657.00 | 819,565.00 |
| Owners’ equity: | |||
| Share capital | 13,549,648,507.00 | 13,549,648,507.00 | - |
| Other equity instruments | |||
| Including: Preferred shares | |||
| Perpetual bonds | |||
| Capital reserves | 5,996,741,456.00 | 5,996,741,456.00 | - |
| Less: Treasury stock | 63,457,893.00 | 63,457,893.00 | - |
| Other comprehensive income | -1,174,161,842.00 | -839,211,395.00 | 334,950,447.00 |
| Specific reserve | |||
| Surplus reserves | 2,184,261,029.00 | 2,184,261,029.00 | - |
| General reserve | 360,766.00 | 360,766.00 | - |
| Retained earnings | 10,000,972,928.00 | 9,894,139,954.00 | -106,832,974.00 |
| Total equity attributable to owners of the Company as the parent | 30,494,364,951.00 | 30,722,482,424.00 | 228,117,473.00 |
| Non-controlling interests | 30,377,307,696.00 | 30,376,313,376.00 | -994,320.00 |
| Total owners’ equity | 60,871,672,647.00 | 61,098,795,800.00 | 227,123,153.00 |
| Total liabilities and owners’ equity | 192,763,941,739.00 | 192,991,884,457.00 | 227,942,718.00 |
Notes to the adjustments:
The balance sheet of the Company as the parent:
Unit: RMB
| Item | 31 December 2018 | 1 January 2019 | Adjustment |
| Current assets: | |||
| Monetary capital | 1,328,706,659.00 | 1,328,706,659.00 | - |
| Trading financial assets | Not applicable | 40,735,804.00 | 40,735,804.00 |
| Financial assets at fair value through profit or loss | 711,741,161.00 | Not applicable | -711,741,161.00 |
| Derivative financial assets | 2,802,750.00 | 2,802,750.00 | |
| Notes and accounts | 215,455,944.00 | 215,455,944.00 | - |
| receivable | |||
| Including: Notes receivable | 20,496,958.00 | 20,496,958.00 | - |
| Accounts receivable | 194,958,986.00 | 194,958,986.00 | - |
| Prepayments | 187,895,276.00 | 187,895,276.00 | - |
| Other receivables | 18,773,352,761.00 | 18,773,352,761.00 | - |
| Including: Interest receivable | 212,199,974.00 | 212,199,974.00 | - |
| Dividends receivable | 4,211,824,115.00 | 4,211,824,115.00 | - |
| Inventories | 825,999.00 | 825,999.00 | - |
| Contractual assets | Not applicable | ||
| Assets classified as held for sale | |||
| Current portion of non-current assets | |||
| Other current assets | 1,873,961,604.00 | 1,873,961,604.00 | - |
| Total current assets | 23,091,939,404.00 | 22,423,736,797.00 | -668,202,607.00 |
| Non-current assets: | |||
| Investments in debt obligations | Not applicable | ||
| Available-for-sale financial assets | 1,185,429,885.00 | Not applicable | -1,185,429,885.00 |
| Investments in other debt obligations | Not applicable | ||
| Held-to-maturity investments | Not applicable | ||
| Long-term receivables | |||
| Long-term equity investments | 41,803,449,993.00 | 41,803,449,993.00 | - |
| Investments in other equity instruments | Not applicable | 1,144,694,080.00 | 1,144,694,080.00 |
| Other non-current financial assets | Not applicable | 708,938,412.00 | 708,938,412.00 |
| Investment property | 5,158,426.00 | 5,158,426.00 | - |
| Fixed assets | 40,058,266.00 | 40,058,266.00 | - |
| Construction in progress | 551,693.00 | 551,693.00 | - |
| Productive living assets | |||
| Oil and gas assets | |||
| Right-of-use assets | Not applicable | ||
| Intangible assets | 18,776,430.00 | 18,776,430.00 | - |
| R&D expense | |||
| Goodwill | |||
| Long-term prepaid expense | 461,055,759.00 | 461,055,759.00 | - |
| Deferred income tax assets | |||
| Other non-current assets | |||
| Total non-current assets | 43,514,480,452.00 | 44,182,683,059.00 | 668,202,607.00 |
| Total assets | 66,606,419,856.00 | 66,606,419,856.00 | - |
| Current liabilities: | |||
| Short-term borrowings | 3,300,260,000.00 | 3,300,260,000.00 | - |
| Trading financial liabilities | Not applicable | ||
| Financial liabilities at fair value through profit or loss | Not applicable | ||
| Derivative financial liabilities | |||
| Notes and accounts payable | 376,509,623.00 | 376,509,623.00 | - |
| Advances from customers | 38,614,679.00 | 38,614,679.00 | - |
| Contractual liabilities | Not applicable | ||
| Payroll payable | 98,753,095.00 | 98,753,095.00 | - |
| Taxes payable | 3,437,498.00 | 3,437,498.00 | - |
| Other payables | 6,407,741,790.00 | 6,407,741,790.00 | - |
| Including: Interest payable | 471,294,072.00 | 471,294,072.00 | - |
| Dividends payable | 4,549,747.00 | 4,549,747.00 | - |
| Liabilities directly associated with assets classified as held for sale | |||
| Current portion of non-current liabilities | 3,000,000,000.00 | 3,000,000,000.00 | - |
| Other current liabilities | 2,000,000,000.00 | 2,000,000,000.00 | - |
| Total current liabilities | 15,225,316,685.00 | 15,225,316,685.00 | - |
| Non-current liabilities: | |||
| Long-term borrowings | 5,340,956,000.00 | 5,340,956,000.00 | - |
| Bonds payable | 12,985,628,025.00 | 12,985,628,025.00 | - |
| Including: Preferred shares | |||
| Perpetual bonds | |||
| Lease liabilities | Not applicable | ||
| Long-term payables | 700,000.00 | 700,000.00 | - |
| Long-term payroll payable | 24,245,725.00 | 24,245,725.00 | - |
| Provisions | |||
| Deferred income | 51,506,173.00 | 51,506,173.00 | - |
| Deferred income tax liabilities | |||
| Other non-current liabilities | |||
| Total non-current liabilities | 18,403,035,923.00 | 18,403,035,923.00 | - |
| Total liabilities | 33,628,352,608.00 | 33,628,352,608.00 | - |
| Owners’ equity: | |||
| Share capital | 13,549,648,507.00 | 13,549,648,507.00 | - |
| Other equity instruments | |||
| Including: Preferred shares | |||
| Perpetual bonds | |||
| Capital reserves | 8,565,337,838.00 | 8,565,337,838.00 | - |
| Less: Treasury stock | 63,457,893.00 | 63,457,893.00 | - |
| Other comprehensive income | -24,869,176.00 | -25,604,980.00 | -735,804.00 |
| Specific reserve | |||
| Surplus reserves | 1,982,196,590.00 | 1,982,196,590.00 | - |
| Retained earnings | 8,969,211,382.00 | 8,969,947,186.00 | 735,804.00 |
| Total owners’ equity | 32,978,067,248.00 | 32,978,067,248.00 | - |
| Total liabilities and owners’ equity | 66,606,419,856.00 | 66,606,419,856.00 | - |
2. Retrospective Restatement of Comparative Data due to the First Execution of any New StandardsGoverning Financial Instruments or Leases
■ Applicable □ Not applicableThe Company adopts the new accounting standard governing financial instruments starting from 1 January 2019 and adjusts theformat of its financial statements according to the Notice of the Ministry of Finance on Revising and Issuing the Format of the 2018Annual Financial Statements of General Enterprises. And the affected financial statement items and amounts are shown in the twofinancial statements above.
III Independent Auditor’s Report
Indicate whether the financial statements above have been audited by an independent auditor.□ Yes ■ NoIndicate whether the independent auditor’s report is modified.□ Yes ■ No