Stock Code: 002236 Stock Abbreviation: Dahua Notification No.: 2021-117
Zhejiang Dahua Technology Co., Ltd.
2021 Q3 Report
Important Notice:
1. The Board of Directors, the Board of Supervisors, directors, supervisors and seniormanagement members of the Company hereby guarantee that the information presented inthis quarterly report is authentic, accurate, complete and free of any false records,misleading statements or material omissions, and they will bear joint and several liability forsuch information.
2. The Company's legal representative, chief accountant, and person in charge ofaccounting institution (Accounting Officer) hereby declare and warrant that the financialstatements in the quarterly report are authentic, accurate, and complete.
3. Whether the Q3 report has been audited.
□ Yes √ No
I. Key Financial Data(I) Key Accounting Data and Financial Indicators
Whether the Company needs retroactive adjustment or restatement of accounting data in prior years or not
□ Yes √ No
The Company and all members of the Board of Directors hereby guarantee thatthe information disclosed herein is authentic, accurate and complete and free of anyfalse records, misleading statements, or material omissions.
| The Current Reporting Period | Increase/Decrease of the Current Reporting Period Compared with the Same Period of the Previous Year | From the Beginning of the Year to the End of the Current Reporting Period | Increase/Decrease of the Period from the Beginning of the Year to the End of the Current Reporting Period Compared with the Same Period of the Previous Year | |
| Operating Revenue (RMB) | 7,980,099,801.37 | 26.11% | 21,485,105,535.26 | 32.90% |
| Net Profit Attributable to Shareholders of the Listed Company (RMB) | 755,871,328.43 | -48.09% | 2,399,047,215.98 | -15.08% |
| Net Profit Attributable to Shareholders of the Listed Company After Deducting Non-Recurring Gains and Losses (RMB) | 698,121,885.20 | 56.50% | 2,137,713,932.42 | 23.12% |
| Net Cash Flow Generated by Operational Activities (RMB) | —— | —— | -1,213,296,065.50 | -195.69% |
| Basic Earnings per Share (RMB/Share) | 0.26 | -48.00% | 0.81 | -16.49% |
| Diluted Earnings per Share (RMB/Share) | 0.26 | -48.00% | 0.81 | -16.49% |
| Weighted Average ROE | 3.45% | -4.75% | 11.36% | -5.15% |
| At the End of the Current Reporting Period | At the End of the Previous Year | Increase/Decrease at the End of the Current Reporting Period Compared with the End of the Previous Year | ||
| Total Assets (RMB) | 41,530,189,083.92 | 36,595,034,080.75 | 13.49% | |
| Owners' Equity Attributable to Shareholders of the Listed Company (Unit: RMB) | 22,659,120,581.70 | 19,773,030,426.40 | 14.60% | |
(II) Non-recurring Gains or Losses and Their Amounts
√ Applicable □ Not applicable
Unit: RMB
| Item | Amount in the Current Reporting Period | The Amount from the Beginning of the Year to the End of the Current Reporting Period |
| Profits or losses from disposal of non-current assets (including the write-off for the accrued impairment of assets) | 19,464,968.29 | 52,091,462.91 |
| The government subsidies included in the current profits and losses (excluding the government subsidies closely related to regular businesses of the Company, in line with national policies, and consecutively received by a standard quota or quantity) | 56,971,239.95 | 128,060,831.11 |
| Gains or losses from investment or asset management entrusted to others | 38,009,608.95 | 110,959,301.55 |
| Profits and losses resulting from the changes in fair value for holding trading financial assets and trading financial liabilities, and investment income from disposal of trading financial assets, trading financial liabilities, and financial assets available for trading, excluding the effective hedging businesses related to the regular business operation of the Company | -6,466,471.78 | 71,959,225.75 |
| Non-operating revenue and expenses other than the above | -4,145,081.84 | -2,075,738.28 |
| Other gains and losses items that fit the definition of non-recurring gains and losses | 5,848.54 | 175,494.33 |
| Less: Impact of income tax | 21,734,984.55 | 64,705,465.34 |
| Impact of minority equity (after tax) | 24,355,684.33 | 35,131,828.47 |
| Total | 57,749,443.23 | 261,333,283.56 |
Other gains or losses that fit the definition of non-recurring gains or losses:
□ Applicable √ Not applicable
The Company has no other gains or losses that fit the definition of non-recurring gains or losses.
Note for the definition of non-recurring gains and losses set out in the No. 1 Explanatory Announcement on InformationDisclosure for Companies Issuance Their Securities to the Public - Non-recurring gains and losses, as recurring gains andlosses.
□ Applicable √ Not applicable
The Company did not define any non-recurring gains and losses set out in the No. 1 Explanatory Announcement onInformation Disclosure for Companies Issuance Their Securities to the Public - Non-recurring gains and losses asrecurring gains and losses.(III) The Changes in Key Accounting Data and Financial Indicators and the Reasons
√ Applicable □ Not applicable
(I) The changes of assets and liabilities and the reasons
1. Trading financial assets increased by 237.08% compared with the end of the previous year, mainlydue to changes in the fair value of derivative financial instruments in this period;
2. Prepayments increased by 47.69% compared with the end of the previous year, mainly due to theCompany's increased stocking;
3. Other receivables decreased by 37.58% compared with the end of the previous year, mainly due tothe collection of RMB360 million equity transfer receivables of the previous year in the period;
4. Inventory increased by 68.08% compared with the end of the previous year, mainly due to the risingprice of raw materials, the Company's increased stocking for expansion;
5. Other current assets increased by 112.20% compared with the end of the previous year, mainly due tothe reverse repurchase of RMB350 million treasury bonds in the current period compared with the end ofthe previous year and the increase in input tax to be deducted;
6. Long-term equity investment increased by 138.97% compared with the end of the previous year,mainly due to changes in owners' equity of the Company's associates in the current period, and therecognition of corresponding shares by the Company accordingly according to the shareholding ratio;
7. Other non-current financial assets increased by 164.60% compared with the end of the previous year,mainly due to investment of RMB500 million in new asset management plans in this period;
8. Fixed assets increased by 36.28% compared with the end of the previous year, mainly due to thecompletion of the Dahua Intelligent (IoT) Industrial Park Construction Project Phase II and its transferinto fixed assets;
9. The right-of-use assets increased by 100% compared with the end of the previous year, mainly due tothe implementation of the new lease standards and related statement adjustment in this period.
10. Intangible assets increased by 44.65% compared with the end of the previous year, mainly due to thenewly purchased land in this period.
11. Long-term deferred expenses increased by 44.09% compared with the end of the previous year,mainly due to increase in fees for premise decoration in this period;
12. Short-term loans increased by 220.17% compared with the end of the previous year, mainly due tothe increase of short-term bank borrowings in this period;
13. Contract liabilities increased by 49.77% compared with the end of the previous year, mainly due to
the increase of contract advances received in this period;
14. The salary payable to employees decreased by 36.38% compared with end of the previous year,mainly due to the issuance of year-end bonus in this period;
15. The taxes payable decreased by 46.48% compared with the end of the previous year, mainly due tothe decrease in VAT payable and corporate income tax payable;
16. Other payables decreased by 34.74% compared with the end of the previous year, mainly due to thereduction of obligation to repurchase restricted stocks;
17. Non-current liabilities due within one year increased by 473.12% compared with the end of theprevious year, mainly due to the increase in long-term bank borrowings due within one year and leaseliabilities due within one year;
18. Long-term borrowings increased by 76.88% compared with the end of the previous year, mainly dueto the increase of long-term bank borrowings in this period;
19. Lease liabilities increased by 100% compared with the end of the previous year, mainly due to theimplementation of the new lease standards and related statement adjustments in this period;
20. Capital reserve increased by 48.14% compared with the end of the previous year, mainly due to theconfirmed increase of other rights and interests of shareholding companies in this period;
21. Treasury shares decreased by 52.37% compared with the end of the previous year, mainly due tothe reduction of repurchase obligation due to the unlocking of restricted stocks;
22. Other comprehensive incomes increased by 45.34% compared with the end of the previous year,mainly due to the increase brought by foreign currency statement translation.(II) The changes of items in the income statement and the reasons
1. Operating revenue increased by 32.90% compared with same period of the previous year, mainly dueto expansion of the company's sales scale;
2. Operating cost increased by 43.57% compared with same period of the previous year, mainly due tocost increase arising from rising revenue;
3. Financial expenses decreased by 46.34% compared with same period of the previous year, mainlydue to the increase in interest income and the decrease in exchange losses compared with same periodof the previous year;
4. Investment income decreased by 113.26% compared with same period of the previous year, mainlydue to the decrease of equity transfer income and the increase in investment losses recognized forshareholding companies compared with the same period of the previous year;
5. Income from changes in fair value increased by 768.60% compared with same period of the previousyear, mainly due to fair value changes of asset management plans in this period;
6. Credit impairment losses increased by 103.64% compared with same period of the previous year,mainly due to the increase in provision for bad debts accrued in this period compared with the sameperiod of the previous year;
7. Asset impairment losses decreased by 66.11% compared with same period of the previous year,mainly due to the decrease of accrued reserve for stock depreciation in this period compared with the
same period of the previous year;
8. Income from disposal of assets increased by 48262.64% compared with same period of the previousyear, mainly due to the increase in fixed assets disposal in this period compared with the same period ofthe previous year.(III) The changes of items in the cash flow statement and the reasons
1. The net cash flows from operating activities decreased by 195.69% compared with same period of theprevious year, mainly due to the Company's increased stocking in this period;
2. The net cash flows from investment activities decreased by 358.03% compared with same period ofthe previous year, mainly due to the increase in expenses for acquisition and construction of fixed assets,the increase of net cash outflows from entrusted wealth management and investments in financialderivatives, and decrease in cash received from disposal of subsidiaries in this period compared with thesame period of the previous year.II. Information on Shareholders(I) The total number of common shareholders, the number of preferred shareholders withrestored voting rights and shareholding status of the top 10 shareholders
Unit: share
| Total Number of Common Shareholders at The End of The Reporting Period | 107,122 | Total Number of Preferred Shareholders (If Any) Whose Voting Rights have been Recovered at the End of the Reporting Period | 0 | |||
| The shareholdings of the top 10 shareholders | ||||||
| Name of Shareholder | Nature of Shareholder | Shareholding Percentage | Number of Shares Held | Number of Shares Held with Limited Sales Conditions | Pledged, Marked or Frozen Shares | |
| State Of Shares | Number | |||||
| Fu Liquan | Domestic Natural Person | 34.18% | 1,023,868,980 | 767,901,735 | Pledge | 196,127,942 |
| Zhu Jiangming | Domestic Natural Person | 5.36% | 160,577,490 | 120,433,117 | Pledge | 20,300,000 |
| Hong Kong Securities Clearing Co. Ltd. | Overseas Legal Person | 4.63% | 138,731,267 | 0 | ||
| Chen Ailing | Domestic Natural Person | 2.38% | 71,262,813 | 53,447,110 | Pledge | 21,100,000 |
| Wu Jun | Domestic Natural Person | 2.31% | 69,250,886 | 51,938,164 | ||
| China Galaxy Securities Co., Ltd. | State-owned Legal Person | 1.43% | 42,799,551 | 0 | ||
| Industrial and Commercial Bank of China Limited - Zhong Ou China Value Premier Selection Return Hybrid Securities Investment Fund | Others | 1.38% | 41,483,700 | 0 | ||
| China Securities Finance Co., Ltd. | Domestic Non-state-owned Legal | 1.32% | 39,611,241 | 0 | ||
| Person | ||||||
| Agricultural Bank of China Co., Ltd.- China International Fund Management Emerging Power Hybrid Securities Investment Fund | Others | 0.96% | 28,866,428 | 0 | ||
| Shanghai Greenwoods Assets Management Co., Ltd. - Greenwoods Global Fund | Others | 0.87% | 26,096,493 | 0 | ||
| Shareholding List of Top Ten Shareholders Without Limited Sales Condition | ||||||
| Name of Shareholder | Number of Shares Held without Limited Sales Condition | Type of Shares | ||||
| Type of Shares | Number | |||||
| Fu Liquan | 255,967,245 | RMB common stock | 255,967,245 | |||
| Hong Kong Securities Clearing Co. Ltd. | 138,731,267 | RMB common stock | 138,731,267 | |||
| China Galaxy Securities Co., Ltd. | 42,799,551 | RMB common stock | 42,799,551 | |||
| Industrial and Commercial Bank of China Limited - Zhong Ou China Value Premier Selection Return Hybrid Securities Investment Fund | 41,483,700 | RMB common stock | 41,483,700 | |||
| Zhu Jiangming | 40,144,373 | RMB common stock | 40,144,373 | |||
| China Securities Finance Co., Ltd. | 39,611,241 | RMB common stock | 39,611,241 | |||
| Agricultural Bank of China Co., Ltd.- China International Fund Management Emerging Power Hybrid Securities Investment Fund | 28,866,428 | RMB common stock | 28,866,428 | |||
| Shanghai Greenwoods Assets Management Co., Ltd. - Greenwoods Global Fund | 26,096,493 | RMB common stock | 26,096,493 | |||
| National Social Security Fund 111 | 24,137,331 | RMB common stock | 24,137,331 | |||
| China Merchants Bank Co., Ltd. - Yinhua Xinyi Flexible Allocation Hybrid Securities Investment Fund | 22,112,659 | RMB common stock | 22,112,659 | |||
| Description of the Association Relationship or Concerted Action of Above-Mentioned Shareholders | Mr. Fu Liquan And Ms. Chen Ailing Are Husband and Wife. The Company Is Unaware of Whether Other Shareholders Have Associated Relationship or Are Persons Acting in Concert. | |||||
| Explanation on Top Ten Shareholders’ Participation in Securities Margin Trading (If Any) | N/A | |||||
(II) The total number of preferred shareholders and the shareholdings of the top 10 preferredshareholders
□ Applicable √ Not applicable
III. Other Significant Matters
√ Applicable □ Not applicable
1. On March 26, 2021, the Proposal on the Company’s Plan for the Non-public Issuance of Sharesin 2021 and other related proposals were reviewed and approved at the Company's 12
thsession of the
th board of directors and the 8
th
session of the 7
th
board of supervisors. The company planned to issue
312,151,600 non-public shares, and the total amount of funds raised did not exceed RMB 5.6 billion(inclusive). The target company of this non-public issuance is China Mobile Capital Holdings Co., Ltd.,which is the wholly-owned subsidiary of China Mobile Communications Group Co., Ltd.,. Matters relatedto the non-public issuance have been reviewed and approved by the 2020 shareholders’ meeting.The Company disclosed, respectively on June 3, 2021 and June 17, 2021, the Announcement onthe Acceptance of the Non-public Issuance Application by the CSRC and the Announcement onReceiving the First Feedback Given by the CSRC on the Review of Administrative Permits(Announcement number: 2021-073, 2021-078).On July 5, 2021, the Proposal on Adjusting the Company’s Plan for the Non-public Issuance ofShares in 2021 and other proposals related to the issuance were reviewed and approved at theCompany’s 19
th session of the 7
th board of directors and the 12
th
session of the 7
th
board of supervisors.As adjusted, the company planned to issue no more than 288,624,700 non-public shares, and the totalamount of funds raised will not exceed RMB 5.1 billion (inclusive). The target company of this non-publicissuance is China Mobile Capital Holdings Co., Ltd., which is the wholly-owned subsidiary of ChinaMobile Communications Group Co., Ltd. On the same day, the Company disclosed the Reply of ZhejiangDahua Technology Co., Ltd. to the Feedback on the Application for the Non-public Issuance of Shares.The non-public issuance plan can only be implemented after being approved by the CSRC. Theannouncements above have been disclosed through the designated media Securities Times and JuchaoInformation Network (http://www.cninfo.com.cn).
2. On September 28, 2021, the Proposal on Preparing the Spin-off Listing of the Holding Subsidiarywas reviewed and approved at the 21st session of the 7th board of directors and the 14th session of the7th board of supervisors. The Company's board of directors authorized the management to launch thepreliminary preparation for the spin-off listing of its holding subsidiary Zhejiang Huarui Technology Co.,Ltd. on a domestic stock exchange, which includes but is not limited to verifying the feasibility plan,preparing the listing plan, signing agreements involved in the preparation, and other matters related tothe listing, as well as submitting the listing plan and other matters related to the listing respectively to theboard of directors and shareholders' meeting for review after the spin-off listing plan is determined. Formore details, see the Indicative Announcement on Preparing the Spin-off Listing of the HoldingSubsidiary (Announcement No.2021-113) disclosed by the Company on September 29, 2021.
IV. Quarterly Financial Statements(I) Financial Statements
1. Consolidated Balance Sheet
Prepared by: Zhejiang Dahua Technology Co., Ltd.
September 30, 2021
Unit: RMB
| Item | September 30, 2021 | December 31, 2020 |
| Current Assets: | ||
| Cash and Bank Balances | 5,900,823,999.97 | 7,471,652,634.66 |
| Deposit Reservation for Balance | ||
| Loans to Banks and Other Financial Institutions | ||
| Trading Financial Assets | 8,345,068.23 | 2,475,680.45 |
| Derivative Financial Assets | ||
| Notes Receivable | 701,638,559.29 | 232,857,354.55 |
| Accounts Receivable | 13,371,801,715.74 | 12,857,519,110.16 |
| Receivables Financing | 598,769,005.58 | 1,207,879,654.58 |
| Prepayments | 239,634,123.12 | 162,250,648.05 |
| Premium Receivable | ||
| Reinsurance Accounts Receivable | ||
| Reinsurance Contract Reserves Receivable | ||
| Other Receivables | 605,771,161.97 | 970,427,893.48 |
| Including: Interest Receivable | ||
| Dividends Receivable | ||
| Buying Back the Sale of Financial Assets | ||
| Inventory | 8,283,057,482.39 | 4,928,019,838.00 |
| Contract Assets | 85,259,302.29 | 84,825,834.82 |
| Holding For-sale Assets | ||
| Non-current Assets Due within 1 Year | 612,170,843.45 | 635,956,549.07 |
| Other Current Assets | 1,185,003,174.64 | 558,434,219.93 |
| Subtotal of Current Assets | 31,592,274,436.67 | 29,112,299,417.75 |
| Non-current Assets: | ||
| Granting of Loans and Advances | ||
| Investment in Creditor's Rights | ||
| Investment in Other Creditor's Rights | ||
| Long-term Receivables | 2,001,039,216.28 | 2,250,315,769.50 |
| Long-term Equity Investment | 1,089,634,983.73 | 455,977,616.16 |
| Investment in Other Equity Instruments | ||
| Other Non-current Financial Assets | 952,809,855.12 | 360,087,786.34 |
| Investment Property | 321,183,939.71 | 336,008,869.13 |
| Fixed Assets | 2,065,446,363.02 | 1,515,594,629.97 |
| Projects under Construction | 1,471,737,678.05 | 1,164,130,453.03 |
| Productive Biological Assets | ||
| Oil and Gas Assets | ||
| Right-of-use Assets | 255,393,988.22 | |
| Intangible Assets | 588,418,323.99 | 406,777,323.39 |
| Development Expenditure | ||
| Goodwill | 42,685,490.30 | 42,685,490.30 |
| Long-term Deferred Expenses | 46,512,381.53 | 32,280,430.67 |
| Deferred Income Tax Assets | 1,011,564,028.24 | 832,453,676.69 |
| Other Non-current Assets | 91,488,399.06 | 86,422,617.82 |
| Subtotal of Non-current Assets | 9,937,914,647.25 | 7,482,734,663.00 |
| Total Assets | 41,530,189,083.92 | 36,595,034,080.75 |
| Current Liabilities: |
| Short-term Loan | 800,996,316.75 | 250,177,083.34 |
| Borrowings from the Central Bank | ||
| Borrowings from Banks and Other Financial Institutions | ||
| Transactional Financial Liabilities | ||
| Derivative Financial Liabilities | ||
| Notes Payable | 4,057,933,186.57 | 3,258,552,758.17 |
| Accounts Payable | 6,612,618,680.99 | 6,444,787,705.28 |
| Received Prepayments | ||
| Contract Liabilities | 1,005,120,996.39 | 671,120,385.08 |
| Financial Assets Sold for Repurchase | ||
| Deposit Taking and Interbank Deposit | ||
| Receiving from Vicariously Traded Securities | ||
| Receiving from Vicariously Sold Securities | ||
| Payroll Payable | 1,148,623,235.11 | 1,805,464,535.31 |
| Tax Payable | 481,784,866.40 | 900,144,863.67 |
| Other Payables | 633,378,687.35 | 970,552,877.22 |
| Including: Interest Payable | ||
| Dividends Payable | 16,060,762.89 | 12,982,399.27 |
| Service Charge and Commission Payable | ||
| Reinsurance Accounts Payable | ||
| Holding For-sale Liabilities | ||
| Non-current Liabilities Due within 1 Year | 870,522,409.77 | 151,891,709.34 |
| Other Current Liabilities | 246,359,645.17 | 209,401,914.77 |
| Subtotal of Current Liabilities | 15,857,338,024.50 | 14,662,093,832.18 |
| Non-current Liabilities: | ||
| Insurance Contract Reserves | ||
| Long-term Loan | 1,553,000,000.00 | 878,000,000.00 |
| Bonds Payable | ||
| Including: Preferred Stocks | ||
| Perpetual Bonds | ||
| Lease Liabilities | 144,547,776.98 | |
| Long-term Payables | ||
| Long-term Payroll Payable | ||
| Expected Liabilities | 260,155,803.24 | 282,427,517.82 |
| Deferred Income | 105,117,255.53 | 110,469,806.29 |
| Deferred Income Tax Liabilities | 75,145,796.36 | 67,272,768.46 |
| Other Non-current Liabilities | 353,000,628.39 | 391,128,045.90 |
| Subtotal of Non-current Liabilities | 2,490,967,260.50 | 1,729,298,138.47 |
| Total Liabilities | 18,348,305,285.00 | 16,391,391,970.65 |
| Shareholders' Equity: | ||
| Share Capital | 2,994,550,730.00 | 2,995,579,590.00 |
| Other Equity Instruments | ||
| Including: Preferred Stocks | ||
| Perpetual Bonds | ||
| Capital Reserves | 2,947,512,711.28 | 1,989,655,334.05 |
| Less: Treasury Share | 277,169,524.09 | 581,968,930.89 |
| Other Comprehensive Incomes | 88,887,058.73 | 61,157,523.13 |
| Special Reserves | ||
| Surplus Reserves | 1,553,691,005.92 | 1,553,691,005.92 |
| General Risk Reserves | ||
| Undistributed Profits | 15,351,648,599.86 | 13,754,915,904.19 |
| Total Shareholders' Equity Attributable to the Parent Company | 22,659,120,581.70 | 19,773,030,426.40 |
| Minority Shareholders' Equity | 522,763,217.22 | 430,611,683.70 |
| Total Shareholders' Equity | 23,181,883,798.92 | 20,203,642,110.10 |
| Total Liabilities and Shareholders' Equity | 41,530,189,083.92 | 36,595,034,080.75 |
Legal representative: Fu Liquan Person in charge of accounting: Xu Qiaofen Person in charge of the accounting institution: Zhu Zhuling
2. Consolidated Income Statement for the Period from the Beginning of the Year to the End of theReporting Period
Unit: RMB
| Item | Amount Occurred in the Current Period | Amount Occurred in the Previous Period |
| I. Total Operating Revenue | 21,485,105,535.26 | 16,166,204,673.11 |
| Including: Operating Revenue | 21,485,105,535.26 | 16,166,204,673.11 |
| Interest Income | ||
| Earned Premiums | ||
| Service Charge and Commission Income | ||
| II. Total Operating Cost | 19,336,098,032.94 | 14,615,868,742.24 |
| Including: Operating Cost | 12,768,127,643.67 | 8,893,029,099.00 |
| Interest Expenditures | ||
| Service Charge and Commission Expenses | ||
| Surrender Value | ||
| Net Claims Paid | ||
| The Net Amount Withdrawn for Insurance Liability Reserves | ||
| Policyholder Dividend Expense | ||
| Reinsurance Cost | ||
| Taxes and Surcharges | 129,966,366.70 | 101,226,426.00 |
| Sales Expenses | 3,336,109,794.23 | 2,801,268,128.70 |
| Administration expenses | 644,478,415.71 | 560,596,447.94 |
| Research and development expense | 2,364,208,725.24 | 2,086,062,696.34 |
| Financial Expenses | 93,207,087.39 | 173,685,944.26 |
| Including: interest expenses | 69,224,790.43 | 52,037,364.71 |
| Interest Income | 165,190,467.12 | 118,510,356.09 |
| Add: Other Income | 701,607,327.67 | 694,649,909.73 |
| Investment Income (Mark "-" for Loss) | -142,801,874.09 | 1,076,630,992.13 |
| Including: Investment Income from Affiliates and Joint Ventures | -207,504,221.59 | -76,758,388.98 |
| Profits from recognition Termination of Financial Assets at Amortized Cost | ||
| Exchange Gains (Mark "-" for Losses) | ||
| Profit of Net Exposure Hedging (Mark "-" for Loss) |
| Incomes from Changes in Fair Value (losses marked with "-") | 138,013,394.47 | 15,889,143.16 |
| Credit Impairment Losses (Mark "-" for Loss) | -442,062,567.25 | -217,078,819.11 |
| Asset Impairment Losses (Mark "-" for Loss) | -35,822,007.91 | -105,692,735.50 |
| Asset Disposal Income (Mark "-" for Loss) | 33,064,078.63 | 68,366.98 |
| III. Operating Profit (Mark "-" for Loss) | 2,401,005,853.84 | 3,014,802,788.26 |
| Add: Non-operating Revenues | 9,559,210.80 | 8,100,433.16 |
| Less: Non-operating Expenses | 12,094,457.42 | 13,141,979.08 |
| IV. Total Profit (Mark "-" for Total Loss) | 2,398,470,607.22 | 3,009,761,242.34 |
| Less: Income Tax Expense | -12,527,132.44 | 191,074,833.54 |
| V. Net Profit (Mark "-" for Net Loss) | 2,410,997,739.66 | 2,818,686,408.80 |
| (I) Classified by Operation Continuity | ||
| 1. Net Profit as a Going Concern (Mark "-" for Net Loss) | 2,410,997,739.66 | 2,818,686,408.80 |
| 2. Net Profit of Discontinued Operation (Mark "-" for Net Loss) | ||
| (II) Classified by the Attribution of Ownership | ||
| 1. Net Profit Attributable to the Parent Company's Owner | 2,399,047,215.98 | 2,825,124,363.85 |
| 2. Minority Shareholders' Profit and Loss | 11,950,523.68 | -6,437,955.05 |
| VI. Net Amount of Other Comprehensive Incomes after Tax | 27,658,548.27 | 26,522,004.96 |
| Net Amount of Other Comprehensive Incomes after Tax Attributable to the Parent Company's Owner | 27,729,535.60 | 26,521,962.03 |
| (1) Other Comprehensive Income that Cannot Be Reclassified as P/L | ||
| 1. Re-Measure the Variation of The Defined Benefit Plan | ||
| 2. Other Comprehensive Income that Cannot Be Transferred To P/L Under the Equity Method | ||
| 3. Changes in the Fair Value of Investment in Other Equity Instruments | ||
| 4. Changes in the Fair Value of the Credit Risk of The Enterprise | ||
| 5. Others | ||
| (II) Other Comprehensive Income that Will Be Reclassified As P/L | 27,729,535.60 | 26,521,962.03 |
| 1. Other Comprehensive Income that Can Be Transferred To P/L Under the Equity Method | ||
| 2. Changes in The Fair Value of Investment in Other Creditor's Rights | ||
| 3. Financial Assets Reclassified into Other Comprehensive Income | ||
| 4. Provisions for The Credit Impairment of Investment in Other Creditor's Rights | ||
| 5. Cash flow Hedge Reserves | ||
| 6. Currency Translation Difference | 34,171,086.70 | 26,521,962.03 |
| 7. Others | -6,441,551.10 | |
| Net Amount of Other Comprehensive Incomes After Tax Attributable to Minority Shareholders | -70,987.33 | 42.93 |
| VII. Total Comprehensive Income | 2,438,656,287.93 | 2,845,208,413.76 |
| Total Comprehensive Income Attributable to the Parent Company's Owner | 2,426,776,751.58 | 2,851,646,325.88 |
| Total Comprehensive Income Attributable to Minority | 11,879,536.35 | -6,437,912.12 |
| Shareholders | ||
| VIII. Earnings per Share: | ||
| (I) Basic Earnings per Share | 0.81 | 0.97 |
| (II) Diluted Earnings per Share | 0.81 | 0.97 |
Legal representative: Fu Liquan Person in charge of accounting: Xu Qiaofen Person in charge of the accounting institution: Zhu Zhuling
3. Consolidated Cash Flow Statement for the Period from the Beginning of the Year to the End ofthe Reporting Period
Unit: RMB
| Item | Amount Occurred in the Current Period | Amount Occurred in the Previous Period |
| I. Cash Flow Generated by Operational Activities: | ||
| Cash from Sales of Merchandise and Provision of Services | 23,072,421,222.54 | 19,198,302,426.38 |
| Net Increase in Customer's Bank Deposits and Interbank Deposits | ||
| Net Increase in Borrowings from the Central Bank | ||
| Net Increase in Borrowings from Other Financial Institutions | ||
| Cash Arising from Receiving Premiums for the Original Insurance Contract | ||
| Net Amount Arising from Reinsurance Business | ||
| Net Increase in Deposits and Investments from Policyholders | ||
| Cash Arising from Interests, Service Charges and Commissions | ||
| Net Increase in Borrowings from Banks and Other Financial Institutions | ||
| Net Increase in Repurchase Business Funds | ||
| Net Amount of Cash Received from the Vicariously Traded Securities | ||
| Tax Refund | 1,621,238,401.84 | 1,572,217,203.40 |
| Other Received Cashes Related to Operational Activities | 395,183,997.84 | 248,856,876.82 |
| Subtotal of cash inflow from operational activities | 25,088,843,622.22 | 21,019,376,506.60 |
| Cash Paid for Merchandise and Services | 17,442,233,566.18 | 12,357,110,067.90 |
| Net Increase in Loans and Advances to Customers | ||
| Net Increase in Deposits with Central Bank and Other Financial Institutions | ||
| Cash Paid for Original Insurance Contract Claims | ||
| Net increase of funds lent | ||
| Cash Paid for Interests, Service Charges and Commissions | ||
| Cash Paid for Policy Dividends | ||
| Cash Paid to and for Employees | 5,454,101,974.31 | 4,412,528,770.59 |
| Cash Paid for Taxes and Surcharges | 1,705,099,375.11 | 1,602,848,395.17 |
| Other Paid Cashes Related to Operational Activities | 1,700,704,772.12 | 1,378,932,526.92 |
| Subtotal of Cash Outflow from Operational Activities | 26,302,139,687.72 | 19,751,419,760.58 |
| Net Cash Flow Generated by Operating Activities | -1,213,296,065.50 | 1,267,956,746.02 |
| II. Cash Flow from Investment Activities: |
| Cash Arising from Disposal of Investments | 913,324,136.74 | 1,013,800,000.00 |
| Cash Arising from Investment Incomes | 28,141,454.98 | 15,466,185.40 |
| Net Cash Arising from Disposal of Fixed Assets, Intangible Assets and Other Long-term Assets | 48,160,497.82 | 1,174,856.98 |
| Net Cash Arising from Disposal of Subsidiaries and Other Business Units | 360,000,000.00 | 603,416,723.92 |
| Other Received Cashes Related to Investment Activities | 40,401,379.14 | 87,990,213.91 |
| Subtotal of cash inflow from investment activities | 1,390,027,468.68 | 1,721,847,980.21 |
| Cash Paid for Purchase and Construction of Fixed Assets, Intangible Assets and Other Long-term Assets | 872,761,833.74 | 418,198,952.95 |
| Cash Paid for Investments | 1,777,000,000.00 | 1,495,244,946.22 |
| Net Increase in Pledge Loans | ||
| Net Cash Paid for Acquisition of Subsidiaries and Other Business Units | ||
| Other Paid Cashes Related to Investment Activities | 21,546,588.11 | 88,139,757.17 |
| Subtotal of cash outflows from investment activities | 2,671,308,421.85 | 2,001,583,656.34 |
| Net amount of cash flow generated by investment activities | -1,281,280,953.17 | -279,735,676.13 |
| III. Cash Flow from Financing Activities: | ||
| Cash Arising from Absorbing Investments | 55,770,784.31 | 59,440,000.00 |
| Including: Cash Arising from Subsidiaries Absorbing Investments by Minority Shareholders | 55,770,784.31 | 59,440,000.00 |
| Cash Arising from Borrowings | 3,775,310,686.97 | 5,177,593,403.07 |
| Other Received Cashes Related to Financing Activities | 3,210,646,359.16 | |
| Subtotal of cash inflow from financing activities | 3,831,081,471.28 | 8,447,679,762.23 |
| Cash Paid for Debts Repayment | 1,927,003,259.88 | 3,852,221,214.55 |
| Cash Paid for Distribution of Dividends and Profits or Payment of Interests | 854,086,449.21 | 435,782,912.96 |
| Including: Dividends and Profits Paid to Minority Shareholders by Subsidiaries | ||
| Other Paid Cashes Related to Financing Activities | 83,025,300.67 | 2,931,254,424.60 |
| Subtotal of cash outflow from financing activities | 2,864,115,009.76 | 7,219,258,552.11 |
| Net cash flow generated by financing activities | 966,966,461.52 | 1,228,421,210.12 |
| IV. Impact of Fluctuation in Exchange Rate on Cash and Cash Equivalents | -43,649,597.19 | -85,940,173.22 |
| V. Net Increase in Cash and Cash Equivalents | -1,571,260,154.34 | 2,130,702,106.79 |
| Add: Cash and Cash Equivalents at the Commencement of the Period | 7,358,452,769.53 | 2,734,185,976.41 |
| VI. Cash and Cash Equivalents at the End of the Period | 5,787,192,615.19 | 4,864,888,083.20 |
(II) Adjustments to the Financial Statements
1. Details of adjustments to the relevant items of the financial statements at the beginning of yeardue to first implementation of the new lease standards from 2021
√ Applicable □ Not applicable
Whether the accounts of the balance sheet at the beginning of the year shall be adjusted
√ Yes □ No
Consolidated Balance Sheet
Unit: RMB
| Item | December 31, 2020 | January 1, 2021 | Adjusted amount |
| Current Assets: | |||
| Cash and Bank Balances | 7,471,652,634.66 | 7,471,652,634.66 | |
| Deposit Reservation for Balance | |||
| Loans to Banks and Other Financial Institutions | |||
| Trading Financial Assets | 2,475,680.45 | 2,475,680.45 | |
| Derivative Financial Assets | |||
| Notes receivable | 232,857,354.55 | 232,857,354.55 | |
| Accounts receivable | 12,857,519,110.16 | 12,857,519,110.16 | |
| Receivables Financing | 1,207,879,654.58 | 1,207,879,654.58 | |
| Prepayments | 162,250,648.05 | 152,994,874.90 | -9,255,773.15 |
| Premium Receivable | |||
| Reinsurance Accounts Receivable | |||
| Reinsurance Contract Reserves Receivable | |||
| Other Receivables | 970,427,893.48 | 968,975,721.11 | -1,452,172.37 |
| Including: interest receivable | |||
| Dividends Receivable | |||
| Buying Back the Sale of Financial Assets | |||
| Inventory | 4,928,019,838.00 | 4,928,019,838.00 | |
| Contract Assets | 84,825,834.82 | 84,825,834.82 | |
| Holding For-sale Assets | |||
| Non-current Assets Due within 1 Year | 635,956,549.07 | 635,956,549.07 | |
| Other Current Assets | 558,434,219.93 | 558,536,267.47 | 102,047.54 |
| Subtotal of Current Assets | 29,112,299,417.75 | 29,101,693,519.77 | -10,605,897.98 |
| Non-current Assets: | |||
| Granting of Loans and Advances | |||
| Investment in Creditor's Rights | |||
| Investment in Other Creditor's Rights | |||
| Long-term Receivables | 2,250,315,769.50 | 2,250,315,769.50 | |
| Long-term Equity Investment | 455,977,616.16 | 455,977,616.16 | |
| Investment in Other Equity Instruments | |||
| Other Non-current Financial Assets | 360,087,786.34 | 360,087,786.34 | |
| Investment Property | 336,008,869.13 | 336,008,869.13 | |
| Fixed Assets | 1,515,594,629.97 | 1,515,594,629.97 | |
| Projects under Construction | 1,164,130,453.03 | 1,164,130,453.03 | |
| Productive Biological Assets | |||
| Oil and gas assets | |||
| Right-of-use Assets | 155,673,708.67 | 155,673,708.67 | |
| Intangible Assets | 406,777,323.39 | 406,777,323.39 | |
| Development Expenditure |
| Goodwill | 42,685,490.30 | 42,685,490.30 | |
| Long-term Deferred Expenses | 32,280,430.67 | 32,280,430.67 | |
| Deferred Income Tax Assets | 832,453,676.69 | 832,453,676.69 | |
| Other Non-current Assets | 86,422,617.82 | 86,422,617.82 | |
| Subtotal of Non-current Assets | 7,482,734,663.00 | 7,638,408,371.67 | 155,673,708.67 |
| Total Assets | 36,595,034,080.75 | 36,740,101,891.44 | 145,067,810.69 |
| Current Liabilities: | |||
| Short-term Loan | 250,177,083.34 | 250,177,083.34 | |
| Borrowings from the Central Bank | |||
| Borrowings from Banks and Other Financial Institutions | |||
| Transactional financial liabilities | |||
| Derivative Financial Liabilities | |||
| Notes Payable | 3,258,552,758.17 | 3,258,552,758.17 | |
| Accounts Payable | 6,444,787,705.28 | 6,444,787,705.28 | |
| Received Prepayments | |||
| Contract liabilities | 671,120,385.08 | 671,120,385.08 | |
| Financial Assets Sold for Repurchase | |||
| Deposit Taking and Interbank Deposit | |||
| Receiving from Vicariously Traded Securities | |||
| Receiving from Vicariously Sold Securities | |||
| Payroll Payable | 1,805,464,535.31 | 1,805,464,535.31 | |
| Tax Payable | 900,144,863.67 | 900,144,863.67 | |
| Other Payables | 970,552,877.22 | 970,552,877.22 | |
| Including: Interest Payable | |||
| Dividends Payable | 12,982,399.27 | 12,982,399.27 | |
| Service Charge and Commission Payable | |||
| Reinsurance Accounts Payable | |||
| Holding for-sale Liabilities | |||
| Non-current Liabilities Due within 1 Year | 151,891,709.34 | 210,863,157.61 | 58,971,448.27 |
| Other Current Liabilities | 209,401,914.77 | 209,401,914.77 | |
| Subtotal of Current Liabilities | 14,662,093,832.18 | 14,721,065,280.45 | 58,971,448.27 |
| Non-current Liabilities: | |||
| Insurance Contract Reserves | |||
| Long-term Loan | 878,000,000.00 | 878,000,000.00 | |
| Bonds Payable | |||
| Including: Preferred Stocks | |||
| Perpetual Bonds | |||
| Lease Liabilities | 86,096,362.42 | 86,096,362.42 | |
| Long-term Payables | |||
| Long-term Payroll Payable | |||
| Expected Liabilities | 282,427,517.82 | 282,427,517.82 |
| Deferred Income | 110,469,806.29 | 110,469,806.29 | |
| Deferred Income Tax Liabilities | 67,272,768.46 | 67,272,768.46 | |
| Other Non-current Liabilities | 391,128,045.90 | 391,128,045.90 | |
| Subtotal of Non-current Liabilities | 1,729,298,138.47 | 1,815,394,500.89 | 86,096,362.42 |
| Total Liabilities | 16,391,391,970.65 | 16,536,459,781.34 | 145,067,810.69 |
| Shareholders' Equity: | |||
| Share Capital | 2,995,579,590.00 | 2,995,579,590.00 | |
| Other Equity Instruments | |||
| Including: Preferred Stocks | |||
| Perpetual Bonds | |||
| Capital Reserves | 1,989,655,334.05 | 1,989,655,334.05 | |
| Less: Treasury Share | 581,968,930.89 | 581,968,930.89 | |
| Other Comprehensive Incomes | 61,157,523.13 | 61,157,523.13 | |
| Special Reserves | |||
| Surplus Reserves | 1,553,691,005.92 | 1,553,691,005.92 | |
| General Risk Reserves | |||
| Undistributed Profits | 13,754,915,904.19 | 13,754,915,904.19 | |
| Total Shareholders' Equity Attributable to the Parent Company | 19,773,030,426.40 | 19,773,030,426.40 | |
| Minority Shareholders' Equity | 430,611,683.70 | 430,611,683.70 | |
| Total Shareholders' Equity | 20,203,642,110.10 | 20,203,642,110.10 | |
| Total Liabilities and Shareholders' Equity | 36,595,034,080.75 | 36,740,101,891.44 | 145,067,810.69 |
2. Explanation of retroactive adjustments to the comparative data of the previous period due tofirst implementation of the new lease accounting standard from 2021
□ Applicable √ Not applicable
(III) Audit ReportWhether the Q3 report has been audited.
□ Yes √ No
The Q3 report of the Company has not been audited yet.
Board of Directors of Zhejiang Dahua Technology Co., Ltd.
October 30, 2021