TCL科技集团股份有限公司TCL Technology Group Corporation
FIRST QUARTER REPORT 2020
29 April 2020
Table of Contents
Part I Important Notes ...... 3
Part II Key Corporate Information ...... 5
Part III Directors’ Report ...... 11
Part IV Significant Events ...... 17
Part V Financial Statements ...... 25
Part I Important Notes
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,supervisors and senior management of TCL Technology Group Corporation (hereinafterreferred to as the “Company”) hereby guarantee the factuality, accuracy and completeness ofthe contents of this Report and 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 Tech.” or “we” | TCL Technology Group Corporation and its consolidated subsidiaries, except where the context otherwise requires |
| The “Reporting Period” | The period from 1 January 2020 to 31 March 2020 |
| TCL CSOT | TCL China Star Optoelectronics Technology Co., Ltd. |
| Wuhan CSOT | Wuhan China Star Optoelectronics Technology Co., Ltd. |
| Highly | Highly Information Industry Co., Ltd., a majority-owned subsidiary of the Company listed on the National Equities Exchange and Quotations (stock code: 835281) |
| 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) |
| Bank of Shanghai | Bank of Shanghai Co., Ltd. (stock code: 601229.SH), with the Company holding a 5.33% 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 20.06% interest as its second largest shareholder |
| Admiralty Harbour Capital | Admiralty Harbour Capital Limited |
| China Innovative | China Innovative Capital Management Limited |
| t1 project | The generation 8.5 (or G8.5) TFT-LCD production line of TCL CSOT |
| t2 project | The generation 8.5 (or G8.5) TFT-LCD (including oxide semiconductor) production line of TCL CSOT |
| t3 project | The generation 6 (or G6) LTPS-LCD panel production line of TCL CSOT |
| t4 project | The generation 6 (or G6) flexible LTPS-AMOLED panel production line of TCL CSOT |
| t6 project | The generation 11 (or G11) new TFT-LCD production line of TCL CSOT |
| t7 project | The generation 11 (or G11) new ultra-high-definition (UHD) TFT-LCD and AMOLED production line of TCL CSOT |
Part II Key Corporate InformationI Key Financial Information
Indicate whether there is any retrospectively restated datum in the table below.
□ Yes ■ No
| Series No. | Item | Q1 2020 | Q1 2019 | Change (%) |
| 1 | Revenue (RMB)Note | 13,742,129,162 | 29,600,956,875 | -53.58 |
| Revenue on the same basis after the restructuring (RMB)Note | 13,742,129,162 | 11,918,022,387 | 15.31 | |
| 2 | EBITDA (RMB) | 2,809,282,184 | 4,155,509,053 | -32.40 |
| 3 | Net profit attributable to the listed company’s shareholders (RMB)Note | 408,125,802 | 779,088,389 | -47.61 |
| Net profit attributable to the listed company’s shareholders on the same basis after the restructuring (RMB)Note | 408,125,802 | 769,299,155 | -46.94 | |
| Net profit attributable to the listed company’s shareholders before non-recurring gains and losses (RMB) | -109,881,642 | 560,950,806 | -119.59 | |
| 4 | Basic earnings per share (RMB/share) | 0.0316 | 0.0578 | -45.33 |
| Diluted earnings per share (RMB/share) | 0.0302 | 0.0576 | -47.57 | |
| 5 | Weighted average return on equity (%) | 1.35 | 2.54 | -1.19 |
| 6 | Net cash generated from/used in operating activities (RMB) | 2,299,183,493 | 2,243,903,241 | 2.46 |
| Net cash per share generated from/used in operating activities (RMB/share) | 0.1700 | 0.1656 | 2.66 | |
| 31 March 2020 | 31 December 2019 | Change (%) | ||
| 7 | Total assets (RMB) | 172,763,657,093 | 164,844,884,926 | 4.80 |
| 8 | Total owners’ equity (RMB) | 65,853,394,662 | 63,883,145,340 | 3.08 |
| Owners’ equity attributable to the listed company’s shareholders (RMB) | 30,393,949,636 | 30,111,946,237 | 0.94 | |
| 9 | Share capital (share) | 13,528,438,719 | 13,528,438,719 | 0.00 |
| 10 | Equity per share attributable to the listed company’s shareholders (RMB/share) | 2.2467 | 2.2258 | 0.94 |
Note: In April 2019, the Company completed the handover of major assets in a restructuring. Therefore, the revenue data of Q1 2020and Q1 2019 are not comparable as the former does not include the January-March 2020 revenue generated by the restructured assets,while the latter comprises the January-March 2019 such revenue. On the same basis after the restructuring, revenue would be up by
15.31% and net profit attributable to the listed company’s shareholders would be down by 46.94% in Q1 2020 compared to Q1 2019.
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) | 13,528,438,719 |
Fully diluted earnings per share based on the latest total share capital above:
| Dividend paid to preference shareholders | - |
| Fully diluted earnings per share based on the latest total share capital above (RMB/share) | 0.0302 |
Non-recurring gains and losses:
Unit: RMB
| Item | Q1 2020 | Note |
| Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) | 270,735,649 | 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) | 200,818,821 | Not applicable |
| Gain equal to the amount by which investment costs for the Company to obtain subsidiaries, associates and joint ventures are lower than the Company’s enjoyable fair value of identifiable net assets of investees when making investments | - | - |
| Restructuring costs in staff arrangement, integration, etc. | - | - |
| Gain or loss on fair-value changes in held-for-trading and derivative financial assets and liabilities & income from disposal of held-for-trading and derivative financial assets and liabilities and other investments in debt obligations (exclusive of the effective portion of hedges that arise in the Company’s ordinary course of business) | -35,311 | Not applicable |
| Non-operating income and expense other than the above | 131,273,286 | Not applicable |
| Other gains and losses that meet the definition of non-recurring gain/loss | - | - |
| Less: Corporate income tax | 63,414,374 | Not applicable |
| Non-controlling interests (net of tax) | 21,370,627 | Not applicable |
| Total | 518,007,444 | -- |
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/Loss
Items:
□ Applicable ■ Not applicable
II Total Number of Shareholders and Holdings of Top 10 Shareholders at 31 March 2020
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 | 635,909 | 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 | |||||
| Li Dongsheng and his acting-in-concert party | Domestic natural person/general legal person | 8.56 | 1,157,872,411 | 609,636,366 | Put in pledge by Li Dongsheng | 275,000,000 |
| Put in pledge by Jiutian Liancheng | 344,899,521 | |||||
| Huizhou Investment Holding Co., Ltd. | State-owned legal person | 6.49 | 878,419,747 | |||
| Tibet Tianfeng Enterprise Management Co., Ltd. | Domestic general legal person | 3.08 | 417,344,415 | |||
| China Securities Finance Corporation Limited | Domestic general legal person | 2.76 | 373,231,553 | |||
| Hong Kong Securities Clearing Company Ltd. | Foreign legal person | 2.19 | 296,517,411 | |||
| Central Huijin Asset Management Co., Ltd. | State-owned legal person | 1.53 | 206,456,500 | |||
| TCL Corporation－The First Employee Stock Ownership Plan | Domestic general legal person | 0.73 | 99,148,115 | |||
| Star Century Enterprises Limited | Foreign legal person | 0.67 | 90,532,347 | 90,532,347 | ||
| Huizhou Investment and Development Co., Ltd. | State-owned legal person | 0.56 | 75,504,587 | |||
| ICBC Credit Suisse Asset Management Co., Ltd.－Agricultural Bank of China－ICBC Credit Suisse China Securities Financial Assets Management Plan | Domestic general legal person | 0.55 | 74,761,500 | |||
| Top 10 unrestricted shareholders | ||||||
| Name of shareholder | Unrestricted shares held | Shares by type | ||||
| Type | Shares | |||||
| Huizhou Investment Holding Co., Ltd. | 878,419,747 | RMB-denominated ordinary stock | 878,419,747 | |||
| Li Dongsheng and his acting-in-concert party | 548,236,045 | RMB-denominated ordinary stock | 548,236,045 | |||
| Tibet Tianfeng Enterprise Management Co., Ltd. | 417,344,415 | RMB-denominated ordinary stock | 417,344,415 | |||
| China Securities Finance Corporation Limited | 373,231,553 | RMB-denominated ordinary stock | 373,231,553 | |||
| Hong Kong Securities Clearing Company Ltd. | 296,517,411 | RMB-denominated ordinary stock | 296,517,411 | |||
| Central Huijin Asset Management Co., Ltd. | 206,456,500 | RMB-denominated ordinary stock | 206,456,500 | |||
| TCL Corporation－The First Employee Stock Ownership Plan | 99,148,115 | RMB-denominated ordinary stock | 99,148,115 | |||
| Huizhou Investment and Development Co., Ltd. | 75,504,587 | RMB-denominated ordinary stock | 75,504,587 |
| ICBC Credit Suisse Asset Management Co., Ltd.－Agricultural Bank of China－ICBC Credit Suisse China Securities Financial Assets Management Plan | 74,761,500 | RMB-denominated ordinary stock | 74,761,500 |
| China Southern Asset Management Co., Ltd.－Agricultural Bank of China－Southern China Securities Financial Assets Management Plan | 74,761,500 | RMB-denominated ordinary stock | 74,761,500 |
| Related or acting-in-concert parties among the shareholders above | Being acting-in-concert parties upon the signing of the Agreement on Acting in Concert, Mr. Li Dongsheng and Xinjiang Jiutian Liancheng Equity Investment Partnership (Limited Partnership) (hereinafter referred to as “Jiutian Liancheng”) are the biggest shareholder of the Company with a total of 1,157,872,411 shares. As certain partners of Jiutian Liancheng have quit from the company and as requested by these partners, the meeting of partners of Jiutian Liancheng has resolved to reduce shareholdings in the Company corresponding to the shares of these partners in the partnership. And these partners would withdraw from the partnership. On 27 February 2020, Jiutian Liancheng reduced, through bulk trading, its shareholdings in the Company by 63,876,000 shares, or 0.5% of the Company’s total share capital. This shareholding reduction is in compliance with the Several Provisions on the Reduction of Shares Held in a Listed Company by the Shareholders, Directors, Supervisors and Senior Management of the Listed Company. With confidence in the future development of the Company, Mr. Li Dongsheng and the incumbent senior management of the Company do not reduce their direct or indirect shareholdings in the Company. Mr. Li has also undertaken on 28 April 2020 not to reduce his shareholdings in the Company during the period from the date when the resolutions of the first Board meeting convened to review the plan to acquire the 39.95% interest held by Wuhan Optics Valley Industrial Investment Co., Ltd. in Wuhan China Star Optoelectronics Technology Co., Ltd. through share offering, convertible corporate bonds offering and cash payment and raise the matching funds (hereinafter referred to as the “Transaction”) were disclosed in an announcement to the date of the completion/termination of the Transaction. | ||
| Top 10 shareholders involved in securities margin trading (if any) | None | ||
Indicate whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the Company conductedany promissory repo during the Reporting Period.
□ Yes ■ No
2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable ■ Not applicable
Part III Directors’ Report
I OverviewQ1 2020 saw improvement in both supply and demand of the semi-conductor display industry, withrising prices for large size panels. However, the outbreak of COVID-19 slowed down thecommercial activities of most of the major countries, the economy was hit severely, and themomentum of the recovery slowed down. Facing such a sudden challenge from the business andoperation, the Company focused on its strategic target, strengthened its cost effectiveness advantage,and kept on its aim as a global leading intelligent technology group.Since the fight against COVID-19, the Company has established the epidemic emergency reactioncenter, and actively carried out the epidemic monitoring and prevention well. The Company tookthe life and health of the employees as the top priority, and strengthened disinfection andsterilization, disease prevention, health management, and other measures. Supported by theindependent digital system of the Company, the Company arranged employees at various places fordecentralized work according to the actual situation. The operation and management functionedwell with remote communication and coordination. The Shenzhen and Huizhou plants help WuhanCSOT also. Confronted with the severe situation, all the employees united together and overcamethe difficulties together to guarantee the safe and efficiency of the Company.On the same basis after the spin-off, in Q1 2020, the Company recorded revenue of RMB13.74billion, up 15.3% year-on-year; and the net profit attributable to the listed company’s shareholderswas RMB0.41 billion, down by 46.9% year-on-year while up by RMB0.37 billion compared withQ4 2019. Revenue of TCL CSOT was RMB9.14 billion, up by 25.3% year-on-year, with a net profitof RMB-0.174 billion, up by RMB0.159 billion compared with Q4 2019. Prices of large size panelssaw an increase in the Reporting Period, but were still at the bottom of the historical price. By theultimate efficiency and profitability advantage of TCL CSOT, the large size panel BU returned toprofit comparing with Q4 2019. t3 LTPS and t4 AMOLED plants of small and mid-size panels inWuhan has normal production and operation; however, the additional cost, like epidemic prevention,employees’ welfare, as well as additional logistic cost boosted the operation cost of this quarter andaffect the financial performance. During the Reporting Period, the industrial finance, investment
and venture capital and other business of the Company achieved a net profit of RMB0.44 billionand improved the profitability of the Company during the trough of the industry.The epidemic further increased the short term uncertainty of economy. Consumption and demandwere contained. And the environment of the Company deteriorated currently. The Company stuck toits strategy, reduced the cost and controlled the expenses ultimately, strictly controlled the operationrisk, guaranteed the sufficient liquidity, and comprehensively built up the competitiveness andrisk-resistance ability of the Company. In February, TCL CSOT exerted the advantages ofmanagement system and supply chain system, guaranteed t1, t2, and t6 production lines to operateat full capacity, and was the monthly shipment champion of TV panels in the world. t3 in Wuhan isthe largest LTPS single plant in the world, and t4 spent less than one year from lighting the panel ofAMOLED to mass production and shipment to brand clients, making swift improvement in thehigh-end product technology capability in a fast manner. Construction of t7 plant of the Companyproceeded smoothly.Crisis and opportunity are always together. The COVID-19 epidemic also hints the opportunities forthe semi-conductor display industry. On the demand, the life style mainly based on remoteinteraction promotes the fast development of multiple-application display terminals and contents.Video, game, education, life, office and other sub-ecologies are getting more and more mature,which foster the long term demand for household smart TV, gaming monitors, educationwhiteboards, conference whiteboards, and other contents carrier and main interactive interfaces.During the Reporting Period, the Company deepened cooperation with strategic clients, launchedlarge size “smart screen”, “wisdom screen” and other interactive products, jointly promoted the IoTecology construction of multiple scenarios with large size household screens as core application.The market share of 55-inch TV panel of the Company ranked the 1
stin the world, while 65-inchand 75-inch panels ranked the 2
ndin the world.Looking forward, we believe that the long term trend of economic globalization and basic logic ofindustrial development will not be changed by the nationalism. The relative competitiveness andinternational comparative advantage of China’s manufacturing industry are the foundation andguarantee of global industry division and value distribution. The semi-conductor display industry isone of the two core basic industries of electronic worldwide as well as one of the most promising
industries in China to take a leading position in the world. Chinese enterprises have establishedefficiency and scale advantages. The epidemic has accelerated the exit of overseas companies andthe trend for the eco-system to transfer to China. Leading enterprises with relative competitiveadvantages and resource accumulation will embrace the opportunity of M&A and restructuring inthe industry. As industry concentration increases rapidly, the rate of return on investment in theindustry is expected to enter an up cycle. The Company will seize opportunities arising from thedevelopment of the industry and concentrate resources to grow bigger and stronger in thesemi-conductor display industry. In the meantime, the Company will properly take new tracks instrategic emerging industries which are of a long cycle, high-tech and capital intensive, so as tobecome a globally leading technology group.The impact of the epidemic increased the uncertainty of global economic growth, and there will becontinued pressure in Q2 this year. However, the outlook and market demand are improving. TheCompany will keep on its operation budget formulated at the beginning of this year. In the secondhalf of this year, as the semi-conductor display industry is expected to enter a growing period of thecycle, we have confidence to overcome difficulties and challenges to further expand the marketshare and achieve a strong growth this year.
II Core Business AnalysisThe Company primarily consists of the following three business segments: the semi-conductordisplay and materials business, the industrial finance & investment business and the otherbusinesses.
TCL TECH.
Semi-conductordisplay & materials
| Semi-conductor display & materials | TCL CSOT | |
Juhua
China Ray
China Ray
Industrial finance &
investment
Industrial finance &
investmentTCL Financial
| TCL Financial | TCL Capital |
Highly
Wuhan CSOT
(I) Semi-conductor Display and Material BusinessDuring the Reporting Period, TCL CSOT overcame difficulties and challenges, deployed themanagement advantages, and kept on expanding the market share. CSOT achieved sales area of 7.1million square meters, up by 53% year-on-year, achieved revenue of RMB9.14 billion, up by 25.3%year-on-year, and EBITDA was RMB2.19 billion, up by 6.15% year-on-year. The prices of largesize panel saw an increase but were still low in the cycle. Combined with impact of the COVID-19,TCL COST had a deficit of RMB0.174 billion during the Reporting Period.The large size panel production lines of TCL COST are all in Shenzhen, which are less affected byCOVID-19. With the excellent management ability and the supply chain system, t1, t2 and t6production lines kept operating at full capacity, achieved sales area of 6.88 million square meters,up by 58% year-on-year, along with the sales volume as 11.912 million pieces, up by 27%year-on-year. The sales volume and area of LCD TV panels in February were the 1
st
in the world forthe first time with a market share of 18.8% and 19.6% respectively, of which the market shares of32-inch and 55-inch products ranked 1
stin the world while the market shares of 65-inch and 75-inchproducts ranked 2
nd
in the world. During the Reporting Period, the large size panel businessrecognized revenue of RMB6.19 billion, up by 44.6% year-on-year. By the enlarging scale andimprovement in operation and management efficiency, the large size panel business achieved profitin a single quarter and its performance was improved strikingly compared to the previous quarter.The small size panel production lines of TCL CSOT are all in Wuhan. Because of its specialproduction requirements, they need to be operated continuously. Confronted with the suddenoutbreak of the epidemic, Wuhan CSOT took strict epidemic prevention and control measures, andguaranteed the safe production continuously. The major steps of the t3 LTPS production lineoperated at full capacity. As the supply chain was affected by certain logistic constrains during thepeak of the epidemic and the work resumption progress of employees, the production capacity ofthe module section lagged behind at the first but has gradually returned to normal. The ramp-up offlexible AMOLED of the t4 production line progressed as scheduled, but with an increase in one-offadditional cost due to traffic control as well as stricter pandemic control and prevention measuresduring the epidemic. For the Reporting Period, the sales area of t3 and t4 plants of TCL CSOT was
0.22 million square meters, down by 25.4% year-on-year, with the sales volume as 16.58 million
pieces, down by 37.6% year-on-year. The small and mid-size panel business (including CDOT)recognized revenue of RMB2.95 billion. The sales volume of LTPS smart phone panels of the t3production line ranked 3
rdin the world. As for the t4 production line, after the foldable screen wasshipped to international brand clients, the double-curved perforated screen was mass produced andshipped to the world famous phone makers for their flagship products.Looking forward, the influence of the overseas epidemic situation is uncertain, which will causesome impact on the demand of the industry. However, the epidemic also accelerates the exit ofinefficient production capacity of the industry, and generates new demands. In the long run, therestructuring and integration of the global industry will speed up, and industry concentration willfurther increase. With the resumption of the household large screen market and the fast growth ofcommercial display, the supply and demand of the industry will gradually resume its balance, with agood long term development prospect. In 2020, the large size panel business of TCL CSOT willcontinue to improve product positioning and market share in addition to maintaining leadership inscale, technology and efficiency. In the small and mid-size panel business, LTPS will continue togrow by new customers and products to optimize the business. The flexible AMOLED will be massproduced, and the breakthrough will be made in new business model and high-end products. TCLCSOT will keep on promoting ultimate cost reduction and profit increase, improve efficiency,further optimize product and customer structure, actively develop video interaction and commercialproduct business, increase operating profit, and guarantee strong growth in sales area and revenue.(II) Industrial Finance and Investment BusinessTCL Financial mainly includes the Company’s finance and the supply chain finance. As theoperation of the business was affected by the COVID-19, the finance business focused on theliquidity, currency risk and active management of assets. The supply chain finance business tookfully advantage of Internet platform, and continuously provided high quality and convenientreceivables financing services with preferential prices for small and medium enterprise partnersaffected by the epidemic. The industrial finance business will stick to the service concept of“partner finance”, focus on real industrial needs, and constantly enrich and deepen service.TCL Capital seeks investment opportunities in key fields of technological industries, including new
display technology, semi-conductor and related businesses, as well as high-end materials andtechnological equipment, etc., which promotes technology and synergy. At the same time,investment value is created. By the end of the Reporting Period, the scale of funds managed by TCLventure capital business reached RMB8.989 billion, and it has invested in 118 projects cumulatively.Currently, it owns stocks like, CATL, Dynanonic, Willsemi, and other listed companies, and theinterest in Cambricon, Dkem, Transwarp, and other companies. Admiralty Harbour Capital obtainedNo. 6 license from HK SFC successfully during the Reporting Period and became an investmentbank with full licenses. During the Reporting Period, it completed 5 bonds issuing and underwritingprojects and 2 debt management projects. Its investment banking and asset management businessdeveloped healthily, with a superior performance. China Innovative Capital Management Limitedhas invested in more than 110 listed companies cumulatively with steady growth in performance. Itinvests mature companies related to the Company’s businesses.At the end of the Reporting Period, the Company invests some listed companies directly, includinga 19.07% interest in 712 Corp. (603712.SH), a 5.33% interest in Bank of Shanghai (601229.SH)and a 20.06% interest in Fantasia Holdings (01777.HK).
Part IV Significant Events
I Major Changes of Main Items in Financial Statements and Financial Indicators within theReporting Period, as well as the Reasons for the Changes
| Item | 31 March 2020/ Q1 2020 | 31 December 2019/ Q1 2019 | Change (%) | Reasons for the Changes |
| Held-for-trading financial assets | 9,343,312,655 | 6,074,750,918 | 53.8% | Increase in investments in wealth management products purchased |
| Notes receivable | 123,291,567 | 228,941,977 | -46.1% | Collection of payments |
| Prepayments | 486,656,441 | 364,422,948 | 33.5% | Increase in prepayments to suppliers |
| R&D expense | 971,078,841 | 1,548,470,972 | -37.3% | Transfer-out due to reaching the intended use in the Current Period |
| Other non-current assets | 5,619,189,251 | 4,250,658,887 | 32.2% | Increase in prepayments for equipment |
| Held-for-trading financial liabilities | 731,256,011 | 188,220,097 | 288.5% | Increase in liabilities associated with investments |
| Customer deposits and interbank deposits | 889,638,625 | 1,355,128,509 | -34.4% | Decrease in deposits received by TCL Finance Co., Ltd. |
| Advances from customers | 24,542,009 | 141,748,956 | -82.7% | Adoption of the new accounting standard governing revenue |
| Contractual liabilities | 141,702,747 | - | 100.0% | Adoption of the new accounting standard governing revenue |
| Payroll payable | 733,687,839 | 1,094,216,685 | -32.9% | Payment of employee benefits |
| Revenue | 13,742,129,162 | 29,600,956,875 | -53.6% | Asset restructuring |
| Cost of sales | 12,743,745,923 | 24,435,034,582 | -47.8% | Asset restructuring |
| Taxes and surcharges | 38,902,775 | 194,829,143 | -80.0% | Asset restructuring |
| Selling expense | 159,592,940 | 2,182,421,040 | -92.7% | Asset restructuring |
| Administrative expense | 321,790,541 | 900,923,674 | -64.3% | Asset restructuring |
| Credit impairment loss | 7,478,551 | 23,000,942 | -67.5% | Asset restructuring |
| Other income | 620,518,501 | 465,016,958 | 33.4% | Increase in subsidies for R&D |
| Gain on changes in fair value | -205,634,246 | -55,490,496 | 270.6% | Changes in the fair value of financial instruments |
| Net cash generated from/used in investing activities | -9,123,262,761 | -6,787,262,973 | 34.4% | YoY decrease in investments withdrawn |
| Net cash generated from/used in financing activities | 7,670,463,871 | 1,668,797,144 | 359.6% | Increase in financings |
II Progress, Influence and Solutions with regard to Significant Events
| Summary of the significant event | Disclosure date | Index to the related announcement |
| Announcement on the Completion of Share Repurchase & Changes in Shares | 13 January 2020 | http://www.cninfo.com |
| Announcement on Change of the Company Name with the Industrial and Commercial Administration and Change of the Stock Name | 7 February 2020 | |
| Announcement on Progress on the Capital Contribution to Equity Investment Fund & Related-Party Transaction | 8 February 2020 | |
| Announcement on Intended Capital Increase to TCL CSOT | 31 March 2020 |
Progress of any share repurchase:
It is the key operational philosophy and mission of the Company to create value for and grow with the shareholders. In order toeffectively protect shareholders’ interests and enhance shareholder value, the Company convened the 14
th Meeting of the 6
th
Board ofDirectors on 10 January 2019, at which the Proposal on the Repurchase of Certain Public Shares was approved. The Report on theRepurchase of Certain Public Shares was disclosed on 14 February 2019. In view of the trends on the secondary market of stocks, theCompany convened the 15
th
Meeting of the 6
th
Board of Directors on 19 March 2019, at which the Proposal on the Adjustment to theUpper Limit of the Share Repurchase Price. As such, the upper limit of the share repurchase price was adjusted from RMB3.80/shareto RMB5.00/share. The Company implemented the share repurchase from 14 February 2019. Up to 10 January 2020, the Companyhas cumulatively repurchased 565,333,922 shares (or 4.18% of the Company’s total share capital) in its special securities account forrepurchases by way of centralized bidding, with the highest trading price being RMB4.17/share, the lowest trading price beingRMB3.13/share, and the average trading price being RMB3.42/share. The total transaction amount was RMB1,933.5965 million(exclusive of trading fees). The share repurchase has been implemented in a process in compliance with the applicable regulationsincluding the Specific Rules of the Shenzhen Stock Exchange for Share Repurchase by Listed Companies. The actual number ofshares repurchased, repurchase price and amount used were in compliance with the repurchase plan approved at the 14
thMeeting ofthe 6
thBoard of Directors, with no difference compare to the disclosed Report on Share Repurchase. As such, the Company hascompleted the share repurchase as per the repurchase plan that it disclosed.
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
□ Applicable ■ Not applicable
IV Operating Performance Forecast for H1 2020Warning of a forecast loss on or a forecast significant year-on-year change in the net profit of H1 2020, as well as explanation ofwhy:
□ Applicable ■Not applicable
V Securities Investments
Unit: RMB’0,000
| Security type | Security code | Security name | Initial investment cost | Measurement method | Beginning carrying amount | Purchased in Reporting Period | Sold in Reporting Period | Gain/loss in Reporting Period | Ending carrying amount | Accounting title | Funding source |
| Bank’s wealth management product | N/A | Agricultural Bank of China-“Huilifeng” Customized CNY Structured Deposit Product for Corporate Clients | 145,000 | At fair value through profit or loss | - | 145,000 | - | 108 | 145,108 | Held-for-trading financial assets | Self-funded |
| Bank’s wealth management product | N/A | Agricultural Bank of China-“Huilifeng” Customized CNY Structured Deposit Product for Corporate Clients | 120,000 | At fair value through profit or loss | - | 120,000 | - | 170 | 120,170 | Held-for-trading financial assets | Self-funded |
| Bank’s wealth management product | N/A | Bank of China Principal-Guaranteed Wealth Management- CNYAQKF | 100,000 | At fair value through profit or loss | - | 100,000 | - | 175 | 100,175 | Held-for-trading financial assets | Self-funded |
| Bank’s wealth management product | N/A | Agricultural Bank of China-“Huilifeng” Customized CNY Structured Deposit Product for Corporate Clients | 80,000 | At fair value through profit or loss | - | 80,000 | - | 60 | 80,060 | Held-for-trading financial assets | Self-funded |
| Bank’s wealth management product | N/A | China Development Bank Win-Win CNY Wealth Management Product Tranche 2017666 | 50,000 | At fair value through profit or loss | 50,753 | - | - | 511 | 51,264 | Held-for-trading financial assets | Self-funded |
| Bank’s wealth management product | N/A | 2020 Structured Deposit for Corporate Clients Pegged Exchange Rate Customized Product Tranche 1, 286 | 34,950 | At fair value through profit or loss | - | 34,950 | - | 149 | 35,099 | Held-for-trading financial assets | Self-funded |
| Bank’s wealth management product | N/A | ICBC Wealth Management·Corporate CNY Wealth Management | 30,000 | At fair value through profit or loss | 30,487 | - | - | 322 | 30,809 | Held-for-trading financial assets | Self-funded |
| Bank’s wealth management product | N/A | Agricultural Bank of China “Anxin Deli” Directional RMB Wealth Management Product | 30,000 | At fair value through profit or loss | 30,475 | - | - | 307 | 30,782 | Held-for-trading financial assets | Self-funded |
| Trust plan | N/A | China Fortune International Trust·CICC Xintou Collective Capital Trust Plan No. 2 | 30,000 | At fair value through profit or loss | - | 30,000 | 91 | 30,091 | Held-for-trading financial assets | Self-funded | |
| Bank’s wealth management product | N/A | Agricultural Bank of China “Anxin Deli” Directional RMB Wealth Management Product | 20,000 | At fair value through profit or loss | 20,321 | - | 207 | 20,528 | Held-for-trading financial assets | Self-funded | |
| Other securities investments held at period-end | 409,119 | -- | 484,057 | 558,606 | 675,056 | -10,017 | 335,325 | -- | -- | ||
| Total | 1,049,069 | -- | 616,093 | 1,068,556 | 675,056 | -7,917 | 979,412 | -- | -- | ||
| Disclosure date of board announcement approving securities investment (if any) | 20 March 2019 | ||||||||||
| Disclosure date of general meeting announcement approving securities investment (if any) | 10 April 2019 | ||||||||||
VI Cash Entrusted for Wealth Management
Unit: RMB’0,000
| Type | Funding source | Amount | Undue amount | Unrecovered overdue amount |
| Bank’s wealth management product | Self-funded | 648,948 | 625,921 | 0 |
| Securities firm’s wealth management product | Self-funded | 115,000 | 45,000 | 0 |
| Trust plan | Self-funded | 80,000 | 70,000 | 0 |
| Other | Self-funded | 26,944 | 26,944 | 0 |
| Total | 870,892 | 767,865 | 0 | |
High-risk wealth management transactions with a significant single amount, low liquidity and no principal protection:
□ Applicable ■ Not applicable
Situation where the principal is expectedly irrecoverable or an impairment may be incurred:
□ Applicable ■ Not applicable
VII 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 RMB1.48 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 | In view of the fact that certain raw materials of the core business of the Company are purchased overseas, a wide range of settlement currencies is involved. The Company reduces exchange |
| risk control | 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 taken series of measures such as conducting a rigorous internal evaluation for the operation of financial derivatives business, establishing a corresponding regulatory mechanism, formulating reasonable accounting policies and specific accounting principles, setting limits for risk exposure management, and operating simple financial derivatives. The contracting agent for financial derivatives business of the Company is a sound financial agent with good credit standing. The financial derivatives transactions carried out by the Company in Q1 2020 are closely related to the daily operation needs of the Company with controllable risks. The business is in line with the interests of minority shareholders of the company and the relevant laws and regulations. |
Unit: RMB’0,000
| 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 | 1,279,232 | 36,087 | 1,546,090 | 48,394 | -148 | 23.48 | 0.73 |
| 2. Interest rate swaps | 528,098 | 15,843 | 581,687 | 17,451 | 8.83 | 0.26 | |
| 3. Currency swaps | 215,565 | 14,399 | 357,018 | 21,972 | 5.42 | 0.33 | |
| Total | 2,022,895 | 66,329 | 2,484,795 | 87,817 | -148 | 37.73 | 1.32 |
VIII 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 |
| 15 January 2020 | By visit | Institution | www.cninfo.com.cn |
| 16 January 2020 | By visit | Institution | www.cninfo.com.cn |
| 31 March 2020 | By visit and by phone | Institution | www.cninfo.com.cn |
IX Irregularities in the Provision of Guarantees
□ Applicable ■Not applicable
X Occupation of the Company’s Capital by the Controlling Shareholder or Its Related Partiesfor Non-Operating Purposes
□ Applicable ■Not applicable
Part V Financial StatementsI Financial Statements
1. Consolidated Balance Sheet
Prepared by TCL Technology Group Corporation
Unit: RMB
| Item | 31 March 2020 | 31 December 2019 |
| Current assets: | ||
| Monetary assets | 19,770,216,093.00 | 18,648,184,663.00 |
| Settlement reserve | ||
| Interbank loans granted | ||
| Held-for-trading financial assets | 9,343,312,655.00 | 6,074,750,918.00 |
| Derivative financial assets | 221,068,889.00 | 159,035,592.00 |
| Notes receivable | 123,291,567.00 | 228,941,977.00 |
| Accounts receivable | 8,550,847,668.00 | 8,340,353,992.00 |
| Accounts receivable financing | ||
| Prepayments | 486,656,441.00 | 364,422,948.00 |
| Premiums receivable | ||
| Reinsurance receivables | ||
| Receivable reinsurance contract reserve | ||
| Other receivables | 3,568,442,598.00 | 2,750,041,514.00 |
| Including: Interest receivable | ||
| Dividends receivable | 5,771,104.00 | |
| Financial assets purchased under resale agreements | ||
| Inventories | 5,059,806,606.00 | 5,677,963,123.00 |
| Contractual assets | ||
| Assets classified as held for sale | ||
| Current portion of non-current assets | ||
| Other current assets | 7,109,383,796.00 | 5,911,827,639.00 |
| Total current assets | 54,233,026,313.00 | 48,155,522,366.00 |
| Non-current assets: |
| Loans and advances to customers | 2,082,761,822.00 | 3,637,768,065.00 |
| Investments in debt obligations | 19,973,914.00 | 20,373,264.00 |
| Investments in other debt obligations | ||
| Long-term receivables | ||
| Long-term equity investments | 17,883,198,011.00 | 17,194,284,162.00 |
| Investments in other equity instruments | 254,138,926.00 | 279,883,515.00 |
| Other non-current financial assets | 2,622,182,615.00 | 2,542,689,268.00 |
| Investment property | 84,107,837.00 | 82,272,964.00 |
| Fixed assets | 44,171,551,061.00 | 45,459,070,330.00 |
| Construction in progress | 35,968,034,536.00 | 33,578,289,802.00 |
| Productive living assets | ||
| Oil and gas assets | ||
| Use rights assets | ||
| Intangible assets | 5,987,233,025.00 | 5,684,584,119.00 |
| R&D expense | 971,078,841.00 | 1,548,470,972.00 |
| Goodwill | 2,452,186.00 | 2,452,186.00 |
| Long-term prepaid expense | 1,965,190,848.00 | 1,567,690,992.00 |
| Deferred income tax assets | 899,537,907.00 | 840,874,034.00 |
| Other non-current assets | 5,619,189,251.00 | 4,250,658,887.00 |
| Total non-current assets | 118,530,630,780.00 | 116,689,362,560.00 |
| Total assets | 172,763,657,093.00 | 164,844,884,926.00 |
| Current liabilities: | ||
| Short-term borrowings | 11,187,904,691.00 | 12,069,657,099.00 |
| Borrowings from the central bank | 741,908,082.00 | 573,222,113.00 |
| Interbank loans obtained | ||
| Held-for-trading financial liabilities | 731,256,011.00 | 188,220,097.00 |
| Derivative financial liabilities | 164,796,874.00 | 84,704,591.00 |
| Notes payable | 1,802,949,640.00 | 1,720,401,552.00 |
| Accounts payable | 11,321,827,555.00 | 11,549,133,141.00 |
| Advances from customers | 24,542,009.00 | 141,748,956.00 |
| Contractual liabilities | 141,702,747.00 | |
| Financial assets sold under repurchase agreements |
| Customer deposits and interbank deposits | 889,638,625.00 | 1,355,128,509.00 |
| Payables for acting trading of securities | ||
| Payables for underwriting of securities | ||
| Payroll payable | 733,687,839.00 | 1,094,216,685.00 |
| Taxes payable | 299,992,111.00 | 226,806,037.00 |
| Other payables | 11,816,266,457.00 | 12,293,565,901.00 |
| Including: Interest payable | ||
| Dividends payable | 11,058,239.00 | 11,058,225.00 |
| Handling charges and commissions payable | ||
| Reinsurance payables | ||
| Liabilities directly associated with assets classified as held for sale | ||
| Current portion of non-current liabilities | 1,391,848,421.00 | 1,691,963,496.00 |
| Other current liabilities | 38,708,414.00 | 69,021,962.00 |
| Total current liabilities | 41,287,029,476.00 | 43,057,790,139.00 |
| Non-current liabilities: | ||
| Insurance contract reserve | ||
| Long-term borrowings | 43,569,455,600.00 | 38,512,059,200.00 |
| Bonds payable | 19,475,871,500.00 | 16,479,085,461.00 |
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Lease liabilities | ||
| Long-term payables | 24,210,128.00 | 24,206,057.00 |
| Long-term payroll payable | 22,816,497.00 | 23,017,619.00 |
| Provisions | ||
| Deferred income | 1,578,324,797.00 | 1,912,421,056.00 |
| Deferred income tax liabilities | 952,554,433.00 | 952,677,822.00 |
| Other non-current liabilities | 482,232.00 | |
| Total non-current liabilities | 65,623,232,955.00 | 57,903,949,447.00 |
| Total liabilities | 106,910,262,431.00 | 100,961,739,586.00 |
| Owners’ equity: | ||
| Share capital | 13,528,438,719.00 | 13,528,438,719.00 |
| Other equity instruments | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Capital reserves | 5,726,522,215.00 | 5,716,667,384.00 |
| Less: Treasury stock | 1,952,956,751.00 | 1,952,956,751.00 |
| Other comprehensive income | -670,059,091.00 | -534,081,855.00 |
| Specific reserve | ||
| Surplus reserves | 2,238,368,089.00 | 2,238,368,089.00 |
| General reserve | 360,766.00 | 360,766.00 |
| Retained earnings | 11,523,275,689.00 | 11,115,149,885.00 |
| Total equity attributable to owners of the Company as the parent | 30,393,949,636.00 | 30,111,946,237.00 |
| Non-controlling interests | 35,459,445,026.00 | 33,771,199,103.00 |
| Total owners’ equity | 65,853,394,662.00 | 63,883,145,340.00 |
| Total liabilities and owners’ equity | 172,763,657,093.00 | 164,844,884,926.00 |
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 2020 | 31 December 2019 |
| Current assets: | ||
| Monetary assets | 15,532,031,977.00 | 3,966,899,016.00 |
| Held-for-trading financial assets | 3,254,410,434.00 | 2,969,105,570.00 |
| Derivative financial assets | 34,182,661.00 | |
| Notes receivable | 19,539,531.00 | 22,514,486.00 |
| Accounts receivable | 510,818,457.00 | 445,089,599.00 |
| Accounts receivable financing | ||
| Prepayments | 95,802,083.00 | 97,127,177.00 |
| Other receivables | 17,874,324,003.00 | 17,129,473,443.00 |
| Including: Interest receivable | ||
| Dividends receivable | 4,833,542,415.00 | 4,211,824,115.00 |
| Inventories | 37,016,902.00 | 14,868,714.00 |
| Contractual assets |
| Assets classified as held for sale | ||
| Current portion of non-current assets | ||
| Other current assets | 19,493,926.00 | 6,471,074.00 |
| Total current assets | 37,377,619,974.00 | 24,651,549,079.00 |
| Non-current assets: | ||
| Investments in debt obligations | ||
| Investments in other debt obligations | ||
| Long-term receivables | ||
| Long-term equity investments | 39,929,455,258.00 | 39,297,272,437.00 |
| Investments in other equity instruments | 15,000,000.00 | 15,000,000.00 |
| Other non-current financial assets | 1,561,751,746.00 | 1,540,912,643.00 |
| Investment property | 91,637,927.00 | 92,622,685.00 |
| Fixed assets | 52,301,387.00 | 54,238,373.00 |
| Construction in progress | 12,965,861.00 | 1,241,308.00 |
| Productive living assets | ||
| Oil and gas assets | ||
| Use rights assets | ||
| Intangible assets | 18,336,269.00 | 19,144,884.00 |
| R&D expense | ||
| Goodwill | ||
| Long-term prepaid expense | 452,021,127.00 | 454,968,882.00 |
| Deferred income tax assets | ||
| Other non-current assets | ||
| Total non-current assets | 42,133,469,575.00 | 41,475,401,212.00 |
| Total assets | 79,511,089,549.00 | 66,126,950,291.00 |
| Current liabilities: | ||
| Short-term borrowings | 5,736,238,571.00 | 6,484,481,271.00 |
| Held-for-trading financial liabilities | ||
| Derivative financial liabilities | 5,980,760.00 | |
| Notes payable | 36,068,297.00 | 30,282,528.00 |
| Accounts payable | 441,590,603.00 | 424,224,599.00 |
| Advances from customers | 80,718.00 | 17,470,841.00 |
| Contractual liabilities | 15,676,793.00 |
| Payroll payable | 71,036,306.00 | 125,095,153.00 |
| Taxes payable | 9,821,553.00 | 10,354,865.00 |
| Other payables | 16,329,492,284.00 | 9,347,609,813.00 |
| Including: Interest payable | ||
| Dividends payable | 11,057,515.00 | 11,057,515.00 |
| Liabilities directly associated with assets classified as held for sale | ||
| Current portion of non-current liabilities | 963,448,166.00 | 847,326,922.00 |
| Other current liabilities | ||
| Total current liabilities | 23,603,453,291.00 | 17,292,826,752.00 |
| Non-current liabilities: | ||
| Long-term borrowings | 5,320,000,000.00 | 2,110,000,000.00 |
| Bonds payable | 19,475,871,500.00 | 16,479,085,461.00 |
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Lease liabilities | ||
| Long-term payables | ||
| Long-term payroll payable | 22,816,497.00 | 23,017,619.00 |
| Provisions | ||
| Deferred income | 44,414,600.00 | 51,561,600.00 |
| Deferred income tax liabilities | ||
| Other non-current liabilities | ||
| Total non-current liabilities | 24,863,102,597.00 | 18,663,664,680.00 |
| Total liabilities | 48,466,555,888.00 | 35,956,491,432.00 |
| Owners’ equity: | ||
| Share capital | 13,528,438,719.00 | 13,528,438,719.00 |
| Other equity instruments | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Capital reserves | 8,382,956,975.00 | 8,382,776,032.00 |
| Less: Treasury stock | 1,952,956,751.00 | 1,952,956,751.00 |
| Other comprehensive income | 56,064,337.00 | 56,064,337.00 |
| Specific reserve | ||
| Surplus reserves | 2,036,303,650.00 | 2,036,303,650.00 |
| Retained earnings | 8,993,726,731.00 | 8,119,832,872.00 |
| Total owners’ equity | 31,044,533,661.00 | 30,170,458,859.00 |
| Total liabilities and owners’ equity | 79,511,089,549.00 | 66,126,950,291.00 |
3. Consolidated Income Statement
Unit: RMB
| Item | Q1 2020 | Q1 2019 |
| 1. Revenue | 13,789,536,228.00 | 29,650,896,518.00 |
| Including: Operating revenue | 13,742,129,162.00 | 29,600,956,875.00 |
| Interest income | 47,407,066.00 | 49,939,643.00 |
| Premium income | ||
| Handling charge and commission income | ||
| 2. Costs and expenses | 14,493,594,692.00 | 29,202,984,510.00 |
| Including: Cost of sales | 12,743,745,923.00 | 24,435,034,582.00 |
| Interest expense | 7,195,716.00 | 18,216,588.00 |
| 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 | 38,902,775.00 | 194,829,143.00 |
| Selling expense | 159,592,940.00 | 2,182,421,040.00 |
| Administrative expense | 321,790,541.00 | 900,923,674.00 |
| R&D expense | 837,453,524.00 | 1,162,045,199.00 |
| Finance costs | 384,913,273.00 | 309,514,284.00 |
| Including: Interest expense | 553,121,614.00 | 659,007,115.00 |
| Interest income | 162,367,782.00 | 199,963,103.00 |
| Add: Other income | 620,518,501.00 | 465,016,958.00 |
| Return on investment (“-” for loss) | 694,268,712.00 | 536,480,452.00 |
| Including: Share of profit or loss of joint ventures and associates | 300,625,432.00 | 233,511,429.00 |
| Income from the derecognition of financial assets at amortized cost (“-” for loss) | ||
| Foreign exchange gain (“-” for loss) | 182,919.00 | -2,170,320.00 |
| Net gain on exposure hedges (“-” for loss) | ||
| Gain on changes in fair value (“-” for loss) | -205,634,246.00 | -55,490,496.00 |
| Credit impairment loss (“-” for loss) | -7,478,551.00 | -23,000,942.00 |
| Asset impairment loss (“-” for loss) | -232,590,984.00 | -171,248,740.00 |
| Asset disposal income (“-” for loss) | 6,658.00 | -410,714.00 |
| 3. Operating profit (“-” for loss) | 165,214,545.00 | 1,197,088,206.00 |
| Add: Non-operating income | 141,925,394.00 | 30,958,150.00 |
| Less: Non-operating expense | 10,715,126.00 | 8,628,523.00 |
| 4. Profit before tax (“-” for loss) | 296,424,813.00 | 1,219,417,833.00 |
| Less: Income tax expense | 25,846,940.00 | 213,340,303.00 |
| 5. Net profit (“-” for net loss) | 270,577,873.00 | 1,006,077,530.00 |
| 5.1 By operating continuity | ||
| 5.1.1 Net profit from continuing operations (“-” for net loss) | 270,577,873.00 | 1,006,077,530.00 |
| 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 | 408,125,802.00 | 779,088,389.00 |
| 5.2.1 Net profit attributable to non-controlling interests | -137,547,929.00 | 226,989,141.00 |
| 6. Other comprehensive income, net of tax | -201,191,608.00 | 360,421,531.00 |
| Attributable to owners of the Company as the parent | -135,977,236.00 | 182,670,669.00 |
| 6.1 Items that will not be reclassified to profit or loss | -24,540,407.00 |
| 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 | -24,540,407.00 | |
| 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 | -111,436,829.00 | 182,670,669.00 |
| 6.2.1 Other comprehensive income that will be reclassified to profit or loss under the equity method | 8,800,657.00 | -219,502,741.00 |
| 6.2.2 Changes in the fair value of investments in other debt obligations | ||
| 6.2.3 Other comprehensive income arising from the reclassification of financial assets | ||
| 6.2.4 Allowance for credit impairments in investments in other debt obligations | ||
| 6.2.5 Reserve for cash flow hedges | -31,380,198.00 | -1,824,916.00 |
| 6.2.6 Differences arising from the translation of foreign currency-denominated financial statements | -88,857,288.00 | 373,035,904.00 |
| 6.2.7 Other | 30,962,422.00 | |
| Attributable to non-controlling interests | -65,214,372.00 | 177,750,862.00 |
| 7. Total comprehensive income | 69,386,265.00 | 1,366,499,061.00 |
| Attributable to owners of the Company as the parent | 272,148,566.00 | 961,759,058.00 |
| Attributable to non-controlling interests | -202,762,301.00 | 404,740,003.00 |
| 8. Earnings per share | ||
| 8.1 Basic earnings per share | 0.0316 | 0.0578 |
| 8.2 Diluted earnings per share | 0.0302 | 0.0576 |
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 2020 | Q1 2019 |
| 1. Operating revenue | 277,992,615.00 | 391,405,520.00 |
| Less: Cost of sales | 186,288,369.00 | 336,142,776.00 |
| Taxes and surcharges | 884,082.00 | 5,415,554.00 |
| Selling expense | 5,539,685.00 | 7,861,046.00 |
| Administrative expense | 44,402,485.00 | 59,858,577.00 |
| R&D expense | 22,086,746.00 | 13,988,515.00 |
| Finance costs | 269,483,384.00 | 174,605,997.00 |
| Including: Interest expense | 403,477,889.00 | 343,515,714.00 |
| Interest income | 134,103,744.00 | 202,474,056.00 |
| Add: Other income | 4,807,000.00 | 3,481,500.00 |
| Return on investment (“-” for loss) | 899,034,332.00 | 351,140,692.00 |
| Including: Share of profit or loss of joint ventures and associates | 265,646,202.00 | 225,928,594.00 |
| Income from the derecognition of financial assets at amortized cost (“-” for loss) | ||
| Net gain on exposure hedges (“-” for loss) | ||
| Gain on changes in fair value (“-” for loss) | 81,456,431.00 | -75,625,521.00 |
| Credit impairment loss (“-” for loss) | 995.00 | |
| Asset impairment loss (“-” for loss) | ||
| Asset disposal income (“-” for loss) | 12,900.00 | |
| 2. Operating profit (“-” for loss) | 734,606,622.00 | 72,542,626.00 |
| Add: Non-operating income | 139,294,872.00 | 8,843,380.00 |
| Less: Non-operating expense | 7,636.00 | |
| 3. Profit before tax (“-” for loss) | 873,893,858.00 | 81,386,006.00 |
| Less: Income tax expense |
| 4. Net profit (“-” for net loss) | 873,893,858.00 | 81,386,006.00 |
| 4.1 Net profit from continuing operations (“-” for net loss) | 873,893,858.00 | 81,386,006.00 |
| 4.2 Net profit from discontinued operations (“-” for net loss) | ||
| 5. Other comprehensive income, net of tax | ||
| 5.1 Items that will not be reclassified to profit or loss | ||
| 5.1.1 Changes caused by remeasurements on defined benefit 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 | ||
| 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 Other comprehensive income arising from the reclassification of financial assets | ||
| 5.2.4 Allowance for credit impairments in investments in other debt obligations | ||
| 5.2.5 Reserve for cash flow hedges | ||
| 5.2.6 Differences arising from the translation of foreign currency-denominated financial statements | ||
| 5.2.7 Other | ||
| 6. Total comprehensive income | 873,893,858.00 | 81,386,006.00 |
| 7. Earnings per share |
| 7.1 Basic earnings per share | 0.0676 | 0.0060 |
| 7.2 Diluted earnings per share | 0.0646 | 0.0060 |
5. Consolidated Cash Flow Statement
Unit: RMB
| Item | Q1 2020 | Q1 2019 |
| 1. Cash flows from operating activities: | ||
| Proceeds from sale of commodities and rendering of services | 14,850,100,323.00 | 29,948,578,250.00 |
| Net increase in customer deposits and interbank deposits | -465,489,884.00 | -260,489,195.00 |
| Net increase in borrowings from the central bank | 168,685,969.00 | -102,574,602.00 |
| 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 | ||
| Interest, handling charges and commissions received | 47,407,066.00 | 50,234,049.00 |
| Net increase in interbank loans obtained | ||
| Net increase in proceeds from repurchase transactions | ||
| Net proceeds from acting trading of securities | ||
| Tax rebates | 608,001,845.00 | 1,527,267,914.00 |
| Cash generated from other operating activities | 467,981,716.00 | 611,209,398.00 |
| Subtotal of cash generated from operating activities | 15,676,687,035.00 | 31,874,225,814.00 |
| Payments for commodities and services | 11,369,283,220.00 | 22,624,066,728.00 |
| Net increase in loans and advances to customers | -1,555,006,243.00 | 101,081,629.00 |
| Net increase in deposits in the central bank and in interbank loans granted | -202,132,448.00 | -73,444,006.00 |
| Payments for claims on original insurance contracts | ||
| Net increase in interbank loans granted | ||
| Interest, handling charges and commissions paid | ||
| Policy dividends paid | ||
| Cash paid to and for employees | 1,589,132,206.00 | 2,262,538,883.00 |
| Taxes paid | 844,676,500.00 | 1,528,965,251.00 |
| Cash used in other operating activities | 1,331,550,307.00 | 3,187,114,088.00 |
| Subtotal of cash used in operating activities | 13,377,503,542.00 | 29,630,322,573.00 |
| Net cash generated from/used in operating activities | 2,299,183,493.00 | 2,243,903,241.00 |
| 2. Cash flows from investing activities: | ||
| Proceeds from disinvestment | 4,618,844,632.00 | 6,994,293,557.00 |
| Return on investment | 76,434,103.00 | 107,806,341.00 |
| Net proceeds from the disposal of fixed assets, intangible assets and other long-lived assets | 23,052.00 | 12,094,929.00 |
| Net proceeds from the disposal of subsidiaries and other business units | 197,487,161.00 | 857,657,948.00 |
| Cash generated from other investing activities | ||
| Subtotal of cash generated from investing activities | 4,892,788,948.00 | 7,971,852,775.00 |
| Payments for the acquisition of fixed assets, intangible assets and other long-lived assets | 4,982,864,051.00 | 6,728,764,686.00 |
| Payments for investments | 9,033,187,658.00 | 7,860,153,161.00 |
| 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 | 14,016,051,709.00 | 14,759,115,748.00 |
| Net cash generated from/used in investing activities | -9,123,262,761.00 | -6,787,262,973.00 |
| 3. Cash flows from financing activities: |
| Capital contributions received | 2,260,200,000.00 | 1,717,989,160.00 |
| Including: Capital contributions by non-controlling interests to subsidiaries | 2,260,200,000.00 | 1,717,989,160.00 |
| Borrowings obtained | 13,646,741,209.00 | 11,450,834,740.00 |
| Cash generated from other financing activities | ||
| Subtotal of cash generated from financing activities | 15,906,941,209.00 | 13,168,823,900.00 |
| Repayments of borrowings | 7,266,785,974.00 | 10,215,385,719.00 |
| Payments for interest and dividends | 640,411,211.00 | 633,721,052.00 |
| Including: Dividends paid by subsidiaries to non-controlling interests | 26,392,667.00 | 29,586,633.00 |
| Cash used in other financing activities | 329,280,153.00 | 650,919,985.00 |
| Subtotal of cash used in financing activities | 8,236,477,338.00 | 11,500,026,756.00 |
| Net cash generated from/used in financing activities | 7,670,463,871.00 | 1,668,797,144.00 |
| 4. Effect of foreign exchange rate changes on cash and cash equivalents | -26,758,509.00 | 141,176,713.00 |
| 5. Net increase in cash and cash equivalents | 819,626,094.00 | -2,733,385,875.00 |
| Add: Cash and cash equivalents, beginning of the period | 17,637,742,929.00 | 25,702,383,482.00 |
| 6. Cash and cash equivalents, end of the period | 18,457,369,023.00 | 22,968,997,607.00 |
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
| Item | Q1 2020 | Q1 2019 |
| 1. Cash flows from operating activities: | ||
| Proceeds from sale of commodities and rendering of services | 189,757,308.00 | 323,551,914.00 |
| Tax rebates | 332,021.00 | |
| Cash generated from other operating activities | 8,341,488,901.00 | 6,660,157,054.00 |
| Subtotal of cash generated from operating activities | 8,531,246,209.00 | 6,984,040,989.00 |
| Payments for commodities and services | 185,587,256.00 | 362,320,629.00 |
| Cash paid to and for employees | 56,588,057.00 | 44,495,298.00 |
| Taxes paid | 8,220,063.00 | 18,593,335.00 |
| Cash used in other operating activities | 316,261,198.00 | 2,809,080,047.00 |
| Subtotal of cash used in operating activities | 566,656,574.00 | 3,234,489,309.00 |
| Net cash generated from/used in operating activities | 7,964,589,635.00 | 3,749,551,680.00 |
| 2. Cash flows from investing activities: | ||
| Proceeds from disinvestment | 1,365,307,500.00 | 5,542,600,000.00 |
| Return on investment | 11,669,831.00 | 54,718,062.00 |
| Net proceeds from the disposal of fixed assets, intangible assets and other long-lived assets | 88,286.00 | |
| Net proceeds from the disposal of subsidiaries and other business units | ||
| Cash generated from other investing activities | ||
| Subtotal of cash generated from investing activities | 1,376,977,331.00 | 5,597,406,348.00 |
| Payments for the acquisition of fixed assets, intangible assets and other long-lived assets | 5,391,188.00 | 4,812,806.00 |
| Payments for investments | 1,969,900,000.00 | 1,992,870,615.00 |
| Net payments for the acquisition of subsidiaries and other business units | ||
| Cash used in other investing activities | ||
| Subtotal of cash used in investing activities | 1,975,291,188.00 | 1,997,683,421.00 |
| Net cash generated from/used in investing activities | -598,313,857.00 | 3,599,722,927.00 |
| 3. Cash flows from financing activities: | ||
| Capital contributions received | ||
| Borrowings obtained | 8,612,000,000.00 | 3,810,956,000.00 |
| Cash generated from other financing activities | ||
| Subtotal of cash generated from financing activities | 8,612,000,000.00 | 3,810,956,000.00 |
| Repayments of borrowings | 4,272,903,033.00 | 7,080,956,000.00 |
| Payments for interest and dividends | 168,428,437.00 | 323,287,951.00 |
| Cash used in other financing activities | 1,332,082.00 | 650,919,985.00 |
| Subtotal of cash used in financing activities | 4,442,663,552.00 | 8,055,163,936.00 |
| Net cash generated from/used in financing activities | 4,169,336,448.00 | -4,244,207,936.00 |
| 4. Effect of foreign exchange rate changes on cash and cash equivalents | -3,131,768.00 | -30,210,032.00 |
| 5. Net increase in cash and cash equivalents | 11,532,480,458.00 | 3,074,856,639.00 |
| Add: Cash and cash equivalents, beginning of the period | 3,941,090,221.00 | 1,328,680,629.00 |
| 6. Cash and cash equivalents, end of the period | 15,473,570,679.00 | 4,403,537,268.00 |
II Adjustments to the Financial Statements
1. Adjustments to the Financial Statements at the Beginning of the First Execution Year of any NewStandards Governing Revenue or Leases in 2020The consolidated balance sheet:
Unit: RMB
| Item | 31 December 2019 | 1 January 2020 | Adjustment |
| Current assets: | |||
| Monetary assets | 18,648,184,663.00 | 18,648,184,663.00 | |
| Settlement reserve | |||
| Interbank loans granted | |||
| Held-for-trading financial assets | 6,074,750,918.00 | 6,074,750,918.00 | |
| Derivative financial assets | 159,035,592.00 | 159,035,592.00 | |
| Notes receivable | 228,941,977.00 | 228,941,977.00 | |
| Accounts receivable | 8,340,353,992.00 | 8,340,353,992.00 | |
| Accounts receivable financing | |||
| Prepayments | 364,422,948.00 | 364,422,948.00 | |
| Premiums receivable | |||
| Reinsurance receivables | |||
| Receivable reinsurance contract reserve | |||
| Other receivables | 2,750,041,514.00 | 2,750,041,514.00 |
| Including: Interest receivable | |||
| Dividends receivable | 5,771,104.00 | 5,771,104.00 | |
| Financial assets purchased under resale agreements | |||
| Inventories | 5,677,963,123.00 | 5,677,963,123.00 | |
| Contractual assets | |||
| Assets classified as held for sale | |||
| Current portion of non-current assets | |||
| Other current assets | 5,911,827,639.00 | 5,911,827,639.00 | |
| Total current assets | 48,155,522,366.00 | 48,155,522,366.00 | |
| Non-current assets: | |||
| Loans and advances to customers | 3,637,768,065.00 | 3,637,768,065.00 | |
| Investments in debt obligations | 20,373,264.00 | 20,373,264.00 | |
| Investments in other debt obligations | |||
| Long-term receivables | |||
| Long-term equity investments | 17,194,284,162.00 | 17,194,284,162.00 | |
| Investments in other equity instruments | 279,883,515.00 | 279,883,515.00 | |
| Other non-current financial assets | 2,542,689,268.00 | 2,542,689,268.00 | |
| Investment property | 82,272,964.00 | 82,272,964.00 | |
| Fixed assets | 45,459,070,330.00 | 45,459,070,330.00 | |
| Construction in progress | 33,578,289,802.00 | 33,578,289,802.00 | |
| Productive living assets | |||
| Oil and gas assets | |||
| Use rights assets | |||
| Intangible assets | 5,684,584,119.00 | 5,684,584,119.00 | |
| R&D expense | 1,548,470,972.00 | 1,548,470,972.00 | |
| Goodwill | 2,452,186.00 | 2,452,186.00 |
| Long-term prepaid expense | 1,567,690,992.00 | 1,567,690,992.00 | |
| Deferred income tax assets | 840,874,034.00 | 840,874,034.00 | |
| Other non-current assets | 4,250,658,887.00 | 4,250,658,887.00 | |
| Total non-current assets | 116,689,362,560.00 | 116,689,362,560.00 | |
| Total assets | 164,844,884,926.00 | 164,844,884,926.00 | |
| Current liabilities: | |||
| Short-term borrowings | 12,069,657,099.00 | 12,069,657,099.00 | |
| Borrowings from the central bank | 573,222,113.00 | 573,222,113.00 | |
| Interbank loans obtained | |||
| Held-for-trading financial liabilities | 188,220,097.00 | 188,220,097.00 | |
| Derivative financial liabilities | 84,704,591.00 | 84,704,591.00 | |
| Notes payable | 1,720,401,552.00 | 1,720,401,552.00 | |
| Accounts payable | 11,549,133,141.00 | 11,549,133,141.00 | |
| Advances from customers | 141,748,956.00 | 5,499,574.00 | -136,249,382.00 |
| Contractual liabilities | 133,818,206.00 | 133,818,206.00 | |
| Financial assets sold under repurchase agreements | |||
| Customer deposits and interbank deposits | 1,355,128,509.00 | 1,355,128,509.00 | |
| Payables for acting trading of securities | |||
| Payables for underwriting of securities | |||
| Payroll payable | 1,094,216,685.00 | 1,094,216,685.00 | |
| Taxes payable | 226,806,037.00 | 229,237,213.00 | 2,431,176.00 |
| Other payables | 12,293,565,901.00 | 12,293,565,901.00 | |
| Including: Interest payable | |||
| Dividends payable | 11,058,225.00 | 11,058,225.00 | |
| Handling charges and commissions payable | |||
| Reinsurance payables |
| Liabilities directly associated with assets classified as held for sale | |||
| Current portion of non-current liabilities | 1,691,963,496.00 | 1,691,963,496.00 | |
| Other current liabilities | 69,021,962.00 | 69,021,962.00 | |
| Total current liabilities | 43,057,790,139.00 | 43,057,790,139.00 | |
| Non-current liabilities: | |||
| Insurance contract reserve | |||
| Long-term borrowings | 38,512,059,200.00 | 38,512,059,200.00 | |
| Bonds payable | 16,479,085,461.00 | 16,479,085,461.00 | |
| Including: Preferred shares | |||
| Perpetual bonds | |||
| Lease liabilities | |||
| Long-term payables | 24,206,057.00 | 24,206,057.00 | |
| Long-term payroll payable | 23,017,619.00 | 23,017,619.00 | |
| Provisions | |||
| Deferred income | 1,912,421,056.00 | 1,912,421,056.00 | |
| Deferred income tax liabilities | 952,677,822.00 | 952,677,822.00 | |
| Other non-current liabilities | 482,232.00 | 482,232.00 | |
| Total non-current liabilities | 57,903,949,447.00 | 57,903,949,447.00 | |
| Total liabilities | 100,961,739,586.00 | 100,961,739,586.00 | |
| Owners’ equity: | |||
| Share capital | 13,528,438,719.00 | 13,528,438,719.00 | |
| Other equity instruments | |||
| Including: Preferred shares | |||
| Perpetual bonds | |||
| Capital reserves | 5,716,667,384.00 | 5,716,667,384.00 | |
| Less: Treasury stock | 1,952,956,751.00 | 1,952,956,751.00 | |
| Other comprehensive income | -534,081,855.00 | -534,081,855.00 | |
| Specific reserve |
| Surplus reserves | 2,238,368,089.00 | 2,238,368,089.00 | |
| General reserve | 360,766.00 | 360,766.00 | |
| Retained earnings | 11,115,149,885.00 | 11,115,149,885.00 | |
| Total equity attributable to owners of the Company as the parent | 30,111,946,237.00 | 30,111,946,237.00 | |
| Non-controlling interests | 33,771,199,103.00 | 33,771,199,103.00 | |
| Total owners’ equity | 63,883,145,340.00 | 63,883,145,340.00 | |
| Total liabilities and owners’ equity | 164,844,884,926.00 | 164,844,884,926.00 |
The balance sheet of the Company as the parent:
Unit: RMB
| Item | 31 December 2019 | 1 January 2020 | Adjustment |
| Current assets: | |||
| Monetary assets | 3,966,899,016.00 | 3,966,899,016.00 | |
| Held-for-trading financial assets | 2,969,105,570.00 | 2,969,105,570.00 | |
| Derivative financial assets | |||
| Notes receivable | 22,514,486.00 | 22,514,486.00 | |
| Accounts receivable | 445,089,599.00 | 445,089,599.00 | |
| Accounts receivable financing | |||
| Prepayments | 97,127,177.00 | 97,127,177.00 | |
| Other receivables | 17,129,473,443.00 | 17,129,473,443.00 | |
| Including: Interest receivable | |||
| Dividends receivable | 4,211,824,115.00 | 4,211,824,115.00 | |
| Inventories | 14,868,714.00 | 14,868,714.00 | |
| Contractual assets | |||
| Assets classified as held for sale | |||
| Current portion of non-current assets | |||
| Other current assets | 6,471,074.00 | 6,471,074.00 | |
| Total current assets | 24,651,549,079.00 | 24,651,549,079.00 | |
| Non-current assets: |
| Investments in debt obligations | |||
| Investments in other debt obligations | |||
| Long-term receivables | |||
| Long-term equity investments | 39,297,272,437.00 | 39,297,272,437.00 | |
| Investments in other equity instruments | 15,000,000.00 | 15,000,000.00 | |
| Other non-current financial assets | 1,540,912,643.00 | 1,540,912,643.00 | |
| Investment property | 92,622,685.00 | 92,622,685.00 | |
| Fixed assets | 54,238,373.00 | 54,238,373.00 | |
| Construction in progress | 1,241,308.00 | 1,241,308.00 | |
| Productive living assets | |||
| Oil and gas assets | |||
| Use rights assets | |||
| Intangible assets | 19,144,884.00 | 19,144,884.00 | |
| R&D expense | |||
| Goodwill | |||
| Long-term prepaid expense | 454,968,882.00 | 454,968,882.00 | |
| Deferred income tax assets | |||
| Other non-current assets | |||
| Total non-current assets | 41,475,401,212.00 | 41,475,401,212.00 | |
| Total assets | 66,126,950,291.00 | 66,126,950,291.00 | |
| Current liabilities: | |||
| Short-term borrowings | 6,484,481,271.00 | 6,484,481,271.00 | |
| Held-for-trading financial liabilities | |||
| Derivative financial liabilities | 5,980,760.00 | 5,980,760.00 | |
| Notes payable | 30,282,528.00 | 30,282,528.00 | |
| Accounts payable | 424,224,599.00 | 424,224,599.00 | |
| Advances from customers | 17,470,841.00 | 80,718.00 | -17,390,123.00 |
| Contractual liabilities | 17,390,123.00 | 17,390,123.00 | |
| Payroll payable | 125,095,153.00 | 125,095,153.00 |
| Taxes payable | 10,354,865.00 | 10,354,865.00 | |
| Other payables | 9,347,609,813.00 | 9,347,609,813.00 | |
| Including: Interest payable | |||
| Dividends payable | 11,057,515.00 | 11,057,515.00 | |
| Liabilities directly associated with assets classified as held for sale | |||
| Current portion of non-current liabilities | 847,326,922.00 | 847,326,922.00 | |
| Other current liabilities | |||
| Total current liabilities | 17,292,826,752.00 | 17,292,826,752.00 | |
| Non-current liabilities: | |||
| Long-term borrowings | 2,110,000,000.00 | 2,110,000,000.00 | |
| Bonds payable | 16,479,085,461.00 | 16,479,085,461.00 | |
| Including: Preferred shares | |||
| Perpetual bonds | |||
| Lease liabilities | |||
| Long-term payables | |||
| Long-term payroll payable | 23,017,619.00 | 23,017,619.00 | |
| Provisions | |||
| Deferred income | 51,561,600.00 | 51,561,600.00 | |
| Deferred income tax liabilities | |||
| Other non-current liabilities | |||
| Total non-current liabilities | 18,663,664,680.00 | 18,663,664,680.00 | |
| Total liabilities | 35,956,491,432.00 | 35,956,491,432.00 | |
| Owners’ equity: | |||
| Share capital | 13,528,438,719.00 | 13,528,438,719.00 | |
| Other equity instruments | |||
| Including: Preferred shares | |||
| Perpetual bonds |
| Capital reserves | 8,382,776,032.00 | 8,382,776,032.00 | |
| Less: Treasury stock | 1,952,956,751.00 | 1,952,956,751.00 | |
| Other comprehensive income | 56,064,337.00 | 56,064,337.00 | |
| Specific reserve | |||
| Surplus reserves | 2,036,303,650.00 | 2,036,303,650.00 | |
| Retained earnings | 8,119,832,872.00 | 8,119,832,872.00 | |
| Total owners’ equity | 30,170,458,859.00 | 30,170,458,859.00 | |
| Total liabilities and owners’ equity | 66,126,950,291.00 | 66,126,950,291.00 |
2. Retrospective Restatement of Comparative Data due to the First Execution of the New AccountingStandards Governing Revenue and Leases in 2020
□ Applicable ■ Not applicable
III Independent Auditor’s ReportIndicate whether the financial statements above have been audited by an independent auditor.
□ Yes ■ No