HANGZHOU HIKVISION DIGITAL
TECHNOLOGY CO., LTD.
2020 Quarter 1 ReportJanuary to March 2020
April 25
th2020
Section I Important Notes, Contents and DefinitionsThe Board of Directors, Board of Supervisors, directors, supervisors and seniormanagement of Hangzhou Hikvision Digital Technology Co., Ltd. (hereinafter referredto as the “Company”) hereby guarantee that the information presented in this reportshall be together be wholly liable for the truthfulness, accuracy and completeness of itscontents and free of any false records, misleading statements or material omissions,and will undertake individual and joint legal liabilities.All directors of the Company have attended the board meeting to review thisreport.Chen Zongnian, the Company's legal representative, Jin Yan, the person in chargeof the accounting work, and Zhan Junhua, the person in charge of accounting institution(accounting supervisor) hereby declare and warrant that the financial statements in thisreport are authentic, accurate and complete.
Note:
This document is a translated version of the Chinese version 2020 Q1 Financial Report (“2020年第一季度报告全文”), and the published 2020 Q1 report in the Chinese version shall prevail. Thecomplete published Chinese 2020 Q1 Financial Report may be obtained at http://www.cninfo.com.cn.
Section II Corporate ProfileI. Key Accounting Data and Financial IndicatorsWhether the Company performed a retroactive adjustment or restatement of the previous accounting data
□Yes√ No
| 2020 Q1 | 2019 Q1 | YoY Change(%) between 2020 Q1 and 2019 Q1 | |
| Operating income (RMB) | 9,428,902,974.38 | 9,942,448,619.42 | -5.17% |
| Net profits attributable to shareholders of the Company (RMB) | 1,496,269,608.01 | 1,536,118,222.96 | -2.59% |
| Net profits attributable to shareholders of the Company excluding non-recurring gains and losses (RMB) | 1,469,074,026.95 | 1,482,828,488.96 | -0.93% |
| Net cash flows from operating activities (RMB) | -3,982,048,164.94 | -3,038,198,689.80 | -31.07% |
| Basic earnings per share (RMB/share) | 0.163 | 0.168 | -2.98% |
| Diluted earnings per share (RMB/share) | 0.163 | 0.167 | -2.40% |
| Weighted average Return on Equity (ROE) | 3.28% | 4.00% | -0.72% |
| At March 31st 2020 | At December 31st 2019 | Change(%) between December 31st 2019 and March 31st 2020 | |
| Total assets (RMB) | 73,083,912,948.30 | 75,358,000,240.29 | -3.02% |
| Net assets attributable to shareholders of the Company (RMB) | 46,391,759,940.30 | 44,904,033,876.83 | 3.31% |
The total share capital of the Company as of the previous trading day of the financial report disclosure:
| The total share capital of the Company as of the previous trading day of the financial report disclosure (share) | 9,345,010,696 |
| Item | January 1st –March 31st 2020 |
| Profit or loss from disposal of non-current assets (including the write-off for the impairment provision of assets) | 1,353.60 |
| The government subsidies included in the current profits and losses (excluding the government subsidy closely related to regular course of business of the Company and government subsidy based on standard quota or quantitative continuous application according to the state industrial policy.) | 47,181,064.42 |
| Profits and losses attributed to change in fair value for held-for-trading financial assets, derivative financial assets, held-for-trading financial liabilities, and derivative financial liabilities; and investment income from disposal of held-for-trading financial assets, derivative financial assets, held-for-trading financial liabilities, derivative financial liabilities and other debt investments, excluding the effective hedging business related to the regular business operation of the Company. | -20,854,729.27 |
| Other non-operating income and expenditures except the items mentioned above | 17,465,256.84 |
| Less: Impact of income tax | 13,090,870.14 |
| Impact of the minority interests (after tax) | 3,506,494.39 |
| Total | 27,195,581.06 |
II. Total Number of Shareholders at the end of the reporting period and Information for Top 10 Shareholders
1. Total number of common shareholders and preferred shareholders with resumed voting rights and information about top 10 shareholders
Unit: Share
| Total number of common shareholders at the end of the reporting period | 312,557 | Total number of preferred shareholders (if any) whose voting rights have been recovered at the end of the reporting period | 0 | ||||
| Particulars about top 10 shareholders | |||||||
| Name of shareholder | Nature of shareholder | Share- holding percentage (%) | Total shares held at the period-end | The number of common shares held with trading restrictions | Pledged or frozen | ||
| Status | Amount | ||||||
| China Electronics Technology HIK Group Co., Ltd. | Domestic State-owned corporation | 38.88% | 3,632,897,256 | 0 | Pledged | 50,000,000 | |
| Gong Hongjia | Overseas individual | 13.43% | 1,255,056,700 | 941,292,525 | Pledged | 594,030,000 | |
| Hong Kong Securities Clearing Company Ltd.(HKSCC) | Overseas corporation | 5.33% | 498,128,526 | 0 | - | ||
| Xinjiang Weixun Investment Management Limited Partnership | Domestic non-state-owned corporation | 4.82% | 450,795,176 | 0 | Pledged | 151,258,998 | |
| Xinjiang Pukang Investment Limited Partnership | Domestic non-state-owned corporation | 1.95% | 182,510,174 | 0 | Pledged | 48,000,000 | |
| Hu Yangzhong | Domestic Individual | 1.95% | 182,186,477 | 136,639,858 | Pledged | 53,650,000 | |
| The 52nd Research Institute at China Electronics Technology Group Corporation | Domestic State-owned corporation | 1.93% | 180,775,044 | 0 | - | ||
| CITIC Securities Company Limited | Domestic State-owned corporation | 1.02% | 95,387,791 | 0 | - | ||
| Central Huijin Investment Ltd. | Domestic State-owned corporation | 0.70% | 65,818,800 | 0 | - | ||
| Guo Minfang | Domestic Individual | 0.43% | 40,094,699 | 0 | - | ||
| Particulars about shares held by the Top 10 common shareholders holding shares that are not subject to trading restriction(s) | |||
| Name of shareholder | Number of common shares without trading restrictions held at the period-end | Type of shares | |
| Type | Number | ||
| China Electronics Technology HIK Group Co., Ltd. | 3,632,897,256 | RMB ordinary shares | 3,632,897,256 |
| Hong Kong Securities Clearing Company Ltd.(HKSCC) | 498,128,526 | RMB ordinary shares | 498,128,526 |
| Xinjiang Weixun Investment Management Limited Partnership | 450,795,176 | RMB ordinary shares | 450,795,176 |
| Gong Hongjia | 313,764,175 | RMB ordinary shares | 313,764,175 |
| Xinjiang Pukang Investment Limited Partnership | 182,510,174 | RMB ordinary shares | 182,510,174 |
| The 52nd Research Institute at China Electronics Technology Group Co. Ltd. | 180,775,044 | RMB ordinary shares | 180,775,044 |
| CITIC Securities Company Limited | 95,387,791 | RMB ordinary shares | 95,387,791 |
| Central Huijin Investment Ltd. | 65,818,800 | RMB ordinary shares | 65,818,800 |
| Hu Yangzhong | 45,546,619 | RMB ordinary shares | 45,546,619 |
| Guo Minfang | 40,094,699 | RMB ordinary shares | 40,094,699 |
| Explanation on associated relationship and concerted actions among above shareholders | China Electronics Technology HIK Group Co., Ltd. and The 52nd Research Institute at China Electronics Technology Group are all subject to control of China Electronics Technology Group Corporation. Ms. Chen Chunmei, limited partner of Xinjiang Pukang Investment Limited Partnership, is the spouse of Mr. Gong Hongjia, foreign individual shareholder of the Company. Hu Yangzhong, domestic individual, is holding shares in both Xinjiang Weixun Investment Management Limited Partnership and Xinjiang Pukang Investment Limited Partnership. Except for these, the Company does not know whether the other shareholders are related parties or whether they are acting-in-concert parties in accordance with the Measures for Management of the Disclosure of the Shareholding Changes of Shareholders of the Listed Company. | ||
Any of the Company’s top 10 common shareholders or top 10 non-restricted common shareholders conducts anyagreed buy-back in the reporting period?
□ Applicable √ Inapplicable
No such cases in the reporting period.
2. Total number of preferred shareholders and information about Top 10 preferred shareholders
□ Applicable √ Inapplicable
Section III Significant Events
1. Information and explanation about variations in key financial statement items and financial
indicators during the reporting period.
√Applicable □Inapplicable
1.1 Explanation for variations in balance sheet items
| Item | Balance at March 31st 2020 (RMB) | Balance at December 31st 2019 (RMB) | YoY change (%) | Note of Changes |
| Notes receivable | 1,365,969,491.58 | 973,236,789.02 | 2.10% | Increase in note settlement |
| Receivables for financing | 911,405,211.10 | 1,257,385,053.02 | ||
| Prepayments | 422,525,123.92 | 309,685,733.32 | 36.44% | Increase in procurement for stock-ups |
| Contract assets | 684,021,982.98 | 0.00 | 100.00% | According to the new revenue standard, part of the accounts receivable and inventory amounts were reclassified into contract assets |
| Non-current assets due within one year | 850,213,235.57 | 528,469,701.75 | 60.88% | Increase in long-term receivables due within one year |
| Long-term equity investment | 502,429,960.56 | 252,165,321.49 | 99.25% | Increase in external equity investments |
| Short-term borrowings | 3,920,225,074.32 | 2,640,082,485.15 | 48.49% | Increased demand for short-term working capital |
| Notes payable | 1,691,696,312.66 | 1,239,584,016.70 | 36.47% | Increase in notes settlement |
| Accounts payable | 8,024,133,798.90 | 12,700,075,307.70 | -36.82% | Increase in procurement payments due |
| Receipts in advance | 0.00 | 1,020,989,460.61 | -100.00% | According to the new revenue standard, receipts in advance was reclassified to contract liabilities |
| Contract liabilities | 1,328,269,263.91 | 0.00 | 100.00% | |
| Payroll payable | 773,825,350.06 | 2,359,674,640.12 | -67.21% | The 2019 year-end bonus was distributed in this quarter |
| Taxes payable | 661,628,310.56 | 991,342,805.91 | -33.26% | 2019 corporate income tax payable was paid this year |
| Other payables | 2,420,969,896.27 | 1,568,744,599.94 | 54.33% | Increase in endorsed acceptance bills that have not expired and were not terminated |
| Other comprehensive income | -87,978,481.56 | -53,541,146.99 | -64.32% | Impact of foreign exchange fluctuation |
1.2 Explanation for variations in income statement items
| Item | 2020 Q1 (RMB) | 2019 Q1 (RMB) | YoY Change (%) | Note of changes |
| Financial expense | -209,496,786.15 | 140,437,311.57 | -249.17% | Increase in foreign exchange gains subject to exchange rate fluctuations. |
| Item | 2020 Q1 (RMB) | 2019 Q1 (RMB) | YoY Change (%) | Note of changes |
| Net cash flows from operating activities | -3,982,048,164.94 | -3,038,198,689.80 | -31.07% | Increase in stock-ups in the current reporting period |
| Net cash flows from investing activities | -824,520,039.21 | -447,200,463.78 | -84.37% | Expenditure on equity investment activities increased in the current period |
| Net cash flows from financing activities | 1,257,055,108.43 | 895,763,947.35 | 40.33% | EURO debt was repaid at maturity during the prior reporting period, and there was no similar activity in this period |
5. Securities investment
□Applicable √Inapplicable
No such case during the reporting period.
6. Entrusted financial management
□Applicable √ Inapplicable
No such case in the reporting period.
7. Derivatives investment
□Applicable √ Inapplicable
8. Illegal provision of guarantees for external parties
□ Applicable √ Inapplicable
No such case in the reporting period.
9. The Company’s funds used by the controlling shareholder or its related parties for non-operating purposes
□ Applicable √ Inapplicable
No such case in the reporting period.
10. Schedule for the reception activities including research, communication and interviewsduring the report period
√ Applicable □ Inapplicable
10.1 Reception of research activities during 2020 Q1
| Time of reception | Method of reception | Type of reception object | Index of basic situation of the research |
| From December 23rd 2019 to January 3rd 2020 | Site Research and telephone communication | Institutional investors | CNINF, Investor Relations Activity Record: From December 23rd 2019 to January 3rd 2020 |
| From January 6th 2020 to January 17th 2020 | Site Research and telephone communication | Institutional investors | CNINF, Investor Relations Activity Record: From January 6th 2020 to January 17th 2020 |
| From February 10th 2020 to February 21st 2020 | Telephone communication | Institutional investors | CNINF, Investor Relations Activity Record: From February 10th 2020 to February 21st 2020 |
| Time of reception | Method of reception | Type of reception object | Index of basic situation of the research |
| From February 24th 2020 to March 6th 2020 | Telephone communication | Institutional investors | CNINF, Investor Relations Activity Record: From February 24th 2020 to March 6th 2020 |
| From March 9th 2020 to March 25th 2020 | Telephone communication | Institutional investors | CNINF, Investor Relations Activity Record: From March 9th 2020 to March 25th 2020 |
| Time of conference | Location | Conference Name | Type of reception object | Method of reception |
| January 2020 | Beijing | Morgan Stanley 2020 China New Economy Summit | All kinds of investors | One-on-One, One-on-multi, small group Meetings, and etc. |
| January 2020 | Beijing | NDR- GF Securities | All kinds of investors | One-on-One, One-on-multi, small group Meetings, and etc. |
| January 2020 | Shanghai | NDR- GF Securities | All kinds of investors | One-on-One, One-on-multi, small group Meetings, and etc. |
| January 2020 | Shanghai | UBS 20th Greater China Conference 2020 | All kinds of investors | One-on-One, One-on-multi, small group Meetings, and etc. |
| February 2020 | Online meeting | JP Morgan China Opportunities Forum | All kinds of investors | One-on-One, One-on-multi, small group Meetings, and etc. |
| March 2019 | Online meeting | 2020 Daiwa Securities Tokyo Investment Seminar | All kinds of investors | One-on-One, One-on-multi, small group Meetings, and etc. |
| March 2019 | Online meeting | Huatai Securities Spring Online Investment Conference | All kinds of investors | One-on-One, One-on-multi, small group Meetings, and etc. |
| March 2019 | Online meeting | Guotai Junan Securities Spring Investment Strategy-Online Conference | All kinds of investors | One-on-One, One-on-multi, small group Meetings, and etc. |
| March 2019 | Online meeting | Shenwan Hongyuan Securities Spring TMT Online Investment Strategy Conference | All kinds of investors | One-on-One, One-on-multi, small group Meetings, and etc. |
| Number of daily research received (On-site and telephone conference, times) | 63 |
| Number of institutional investors received (ppl) | 748 |
| Number of individual investors received (ppl) | 0 |
| Number of investor relations conference participated | 9 |
Section IV Financial Reports
4.1 Financial Reports
1. Consolidated Balance Sheet
Prepared by Hangzhou Hikvision Digital Technology Co., Ltd.
March 31
st2020
Unit: RMB
| Item | March 31st 2020 | December 31st 2019 |
| Current Assets: | ||
| Cash and bank balances | 23,536,405,727.53 | 27,071,948,919.78 |
| Held-for-trading financial assets | 6,463,111.42 | 181.76 |
| Notes receivable | 1,365,969,491.58 | 973,236,789.02 |
| Accounts receivable | 19,745,451,603.67 | 21,307,927,200.28 |
| Receivables for financing | 911,405,211.10 | 1,257,385,053.02 |
| Prepayments | 422,525,123.92 | 309,685,733.32 |
| Other receivables | 534,063,450.43 | 555,246,545.48 |
| Inventories | 12,473,934,982.92 | 11,267,986,843.11 |
| Contract assets | 684,021,982.98 | |
| Non-current assets due within one year | 850,213,235.57 | 528,469,701.75 |
| Other current assets | 731,181,002.33 | 754,456,821.72 |
| Total Current Assets | 61,261,634,923.45 | 64,026,343,789.24 |
| Non-current Assets: | ||
| Long-term receivables | 1,374,117,938.32 | 1,382,536,761.22 |
| Long-term equity investment | 502,429,960.56 | 252,165,321.49 |
| Other non-current financial assets | 278,741,899.60 | 312,398,267.44 |
| Fixed assets | 5,905,611,428.36 | 5,791,218,720.87 |
| Construction in progress | 813,441,522.73 | 631,555,479.06 |
| Intangible assets | 1,034,467,754.62 | 1,046,122,507.64 |
| Goodwill | 275,731,063.11 | 273,611,961.96 |
| Long-term deferred expenses | 101,475,615.67 | 87,611,490.75 |
| Deferred tax assets | 687,350,139.82 | 688,849,263.70 |
| Other non-current assets | 848,910,702.06 | 865,586,676.92 |
| Total Non-current Assets | 11,822,278,024.85 | 11,331,656,451.05 |
| Total Assets | 73,083,912,948.30 | 75,358,000,240.29 |
| Current Liabilities: | ||
| Short-term borrowings | 3,920,225,074.32 | 2,640,082,485.15 |
| Held-for-trading financial liabilities | 4,330,190.92 | 652,428.18 |
| Notes payable | 1,691,696,312.66 | 1,239,584,016.70 |
| Accounts payable | 8,024,133,798.90 | 12,700,075,307.70 |
| Item | March 31st 2020 | December 31st 2019 |
| Receipts in advance | 1,020,989,460.61 | |
| Contract liabilities | 1,328,269,263.91 | |
| Payroll payable | 773,825,350.06 | 2,359,674,640.12 |
| Taxes payable | 661,628,310.56 | 991,342,805.91 |
| Other payables | 2,420,969,896.27 | 1,568,744,599.94 |
| Including : Interests payable | ||
| Dividends payable | 108,129,385.24 | 108,129,385.24 |
| Non-current liabilities due within one year | 72,306,225.37 | 86,123,154.06 |
| Other current liabilities | 913,534,538.26 | 913,534,538.26 |
| Total Current Liabilities | 19,810,918,961.23 | 23,520,803,436.63 |
| Non-current Liabilities: | ||
| Long-term borrowings | 4,624,468,571.42 | 4,604,168,571.43 |
| Long-term payables | 49,999,355.44 | 50,181,416.72 |
| Provisions | 90,897,887.83 | 90,570,669.01 |
| Deferred income | 239,264,526.07 | 333,589,831.30 |
| Deferred tax liabilities | 44,697,606.43 | 51,088,103.96 |
| Other non-current liabilities | 1,234,739,326.10 | 1,234,739,326.10 |
| Total non-current liabilities | 6,284,067,273.29 | 6,364,337,918.52 |
| Total liabilities | 26,094,986,234.52 | 29,885,141,355.15 |
| Owners’ Equity | ||
| Share capital | 9,345,010,696.00 | 9,345,010,696.00 |
| Capital reserves | 4,152,837,488.36 | 4,126,943,698.96 |
| Less: Treasury shares | 2,148,273,864.36 | 2,148,273,864.36 |
| Other comprehensive income | -87,978,481.56 | -53,541,146.99 |
| Surplus reserves | 4,672,505,348.00 | 4,672,505,348.00 |
| Retained earnings | 30,457,658,753.86 | 28,961,389,145.22 |
| Total owners' equity attributable to owner of the Company | 46,391,759,940.30 | 44,904,033,876.83 |
| Minority equity | 597,166,773.48 | 568,825,008.31 |
| Total owners' equity | 46,988,926,713.78 | 45,472,858,885.14 |
| Total liabilities and owners' equity | 73,083,912,948.30 | 75,358,000,240.29 |
2. Balance Sheet of the Parent Company
Unit: RMB
| Item | March 31st 2020 | December 31st 2019 |
| Current Assets: | ||
| Cash and bank balances | 15,546,769,017.53 | 16,851,590,525.05 |
| Notes receivable | 91,432,718.13 | 149,703,073.98 |
| Accounts receivable | 25,839,656,758.55 | 25,107,965,925.08 |
| Receivables for financing | 78,929,604.86 | 84,839,695.67 |
| Prepayments | 109,684,470.29 | 160,688,588.99 |
| Other receivables | 4,428,832,953.59 | 921,275,388.15 |
| Including: Interests receivable | ||
| Dividends receivable | 2,550,000.00 | 2,550,000.00 |
| Inventories | 173,366,082.77 | 171,243,815.97 |
| Contract assets | 43,635,774.66 | |
| Non-current liabilities due within one year | 70,759,608.49 | 4,513,795.81 |
| Other current assets | 39,787,852.86 | 23,117,398.50 |
| Total Current Assets | 46,422,854,841.73 | 43,474,938,207.20 |
| Non-current Assets: | ||
| Long-term receivables | 104,545,999.82 | 681,568.43 |
| Long-term equity investment | 5,644,773,449.64 | 5,074,018,030.44 |
| Other non-current financial assets | 275,847,679.60 | 309,504,047.44 |
| Fixed assets | 2,838,898,332.28 | 2,831,295,145.61 |
| Construction in progress | 209,201,248.81 | 153,416,054.28 |
| Intangible assets | 183,008,204.81 | 188,362,883.75 |
| Goodwill | ||
| Long-term deferred expenses | 37,623,666.39 | 34,199,446.06 |
| Deferred tax assets | 126,357,792.34 | 126,357,792.34 |
| Other non-current assets | 5,067,204.75 | 21,619,464.07 |
| Total Non-current Assets | 9,425,323,578.44 | 8,739,454,432.42 |
| Total Assets | 55,848,178,420.17 | 52,214,392,639.62 |
| Current Liabilities: | ||
| Short-term borrowings | 3,202,796,305.56 | 2,001,781,388.89 |
| Accounts payable | 395,707,161.10 | 450,983,270.08 |
| Receipts in advance | 227,242,328.23 |
| Item | March 31st 2020 | December 31st 2019 |
| Contract liabilities | 287,987,412.68 | |
| Payroll payable | 446,112,132.54 | 1,564,304,003.49 |
| Taxes payable | 359,116,847.63 | 796,890,945.83 |
| Other payables | 3,071,765,431.55 | 533,325,191.05 |
| Including : Interests payable | ||
| Dividends payable | 105,679,385.24 | 105,679,385.24 |
| Non-current liabilities due within one year | 4,286,163.56 | 9,539,251.98 |
| Other current liabilities | 913,534,538.26 | 913,534,538.26 |
| Total Current Liabilities | 8,681,305,992.88 | 6,497,600,917.81 |
| Non-current Liabilities: | ||
| Long-term borrowings | 3,123,520,000.00 | 3,126,200,000.00 |
| Provisions | 62,863,096.83 | 62,863,096.83 |
| Deferred Income | 174,843,995.95 | 162,018,728.45 |
| Other non-current liabilities | 1,234,739,326.10 | 1,234,739,326.10 |
| Total non-current liabilities | 4,595,966,418.88 | 4,585,821,151.38 |
| Total liabilities | 13,277,272,411.76 | 11,083,422,069.19 |
| Owners’ Equity | ||
| Share capital | 9,345,010,696.00 | 9,345,010,696.00 |
| Capital reserves | 4,124,533,976.33 | 4,064,833,739.52 |
| Less: Treasury shares | 2,148,273,864.36 | 2,148,273,864.36 |
| Surplus reserves | 4,672,505,348.00 | 4,672,505,348.00 |
| Retained earnings | 26,577,129,852.44 | 25,196,894,651.27 |
| Total owners' equity | 42,570,906,008.41 | 41,130,970,570.43 |
| Total liabilities and owners' equity | 55,848,178,420.17 | 52,214,392,639.62 |
3. Consolidated Income Statement
Unit: RMB
| Item | 2020 Q1 | 2019 Q1 |
| I. Total operating income | 9,428,902,974.38 | 9,942,448,619.42 |
| Including: operating income | 9,428,902,974.38 | 9,942,448,619.42 |
| II．Total operating costs | 7,747,072,149.74 | 8,420,108,460.52 |
| Including：Total operating costs | 4,963,386,892.35 | 5,485,765,941.97 |
| Business taxes and surcharges | 49,517,189.63 | 77,337,440.61 |
| Selling expenses | 1,375,631,338.26 | 1,317,557,509.65 |
| Administrative expenses | 349,741,964.56 | 339,835,080.69 |
| Research and Development (R&D) expenses | 1,218,291,551.09 | 1,059,175,176.03 |
| Financial expenses | -209,496,786.15 | 140,437,311.57 |
| Including：Interest expenses | 48,701,459.47 | 55,224,699.96 |
| Interest income | 153,642,155.64 | 152,237,461.48 |
| Add: Other Income | 301,718,659.20 | 339,329,038.35 |
| Investment income (loss) | -2,717,395.11 | 15,739,354.54 |
| Including: Investment gains (losses) in associated enterprise and joint-venture enterprise | -9,935,360.93 | -3,572,139.83 |
| Gains (losses) from changes in fair values | -28,072,695.09 | 3,301,205.32 |
| Credit impairment losses (“-“) | 2,621,244.53 | -36,910,026.13 |
| Impairment losses (“-“) of assets | -103,828,115.83 | -2,541,417.08 |
| Asset disposal income (loss) | 1,353.60 | 408,476.41 |
| III. Operating profit (loss) | 1,851,553,875.94 | 1,841,666,790.31 |
| Add: Non-operating income | 24,229,257.85 | 20,519,688.26 |
| Less: Non-operating expenses | 4,819,979.49 | 2,085,124.56 |
| IV. Total profit (loss) | 1,870,963,154.30 | 1,860,101,354.01 |
| Less: Income tax expenses | 317,562,607.29 | 342,176,314.58 |
| V. Net profit (loss) | 1,553,400,547.01 | 1,517,925,039.43 |
| 5.1 Classification by operation continuity | ||
| (a) Net profit (loss) on continuous operation | 1,553,400,547.01 | 1,517,925,039.43 |
| (b) Net profit (loss) on terminated operation | ||
| 5.2 Classification by attribution of ownership | ||
| (a) Net profit attributable to owners of parent company | 1,496,269,608.01 | 1,536,118,222.96 |
| (b) Profit or loss attributable to minority shareholders | 57,130,939.00 | -18,193,183.53 |
| VI. Other comprehensive income, net of income tax | -37,242,955.93 | 3,421,375.11 |
| Item | 2020 Q1 | 2019 Q1 |
| Other comprehensive income attributable to owners of the Company, net of tax | -34,437,334.57 | 3,297,750.86 |
| (I) Items that will not be reclassified subsequently to profit or loss | ||
| (II) Other comprehensive income to be reclassified to profit or loss in subsequent periods | -34,437,334.57 | 3,297,750.86 |
| Exchange differences arising on conversion of financial statements denominated in foreign currencies | -34,437,334.57 | -6,370,529.23 |
| Gains and losses from changes in fair value of other current assets | 9,668,280.09 | |
| Other comprehensive income attributable to minority interests, net of tax | -2,805,621.36 | 123,624.25 |
| VII. Total comprehensive income | 1,516,157,591.08 | 1,521,346,414.54 |
| Total comprehensive income attributable to owners of the parent company | 1,461,832,273.44 | 1,539,415,973.82 |
| Total comprehensive income attributable to minority shareholders | 54,325,317.64 | -18,069,559.28 |
| VIII. Earnings per share | ||
| (I) Basic earnings per share | 0.163 | 0.168 |
| (II) Diluted earnings per share | 0.163 | 0.167 |
| Item | 2020 Q1 | 2019 Q1 |
| I. Total operating income | 3,888,284,807.12 | 4,377,811,528.72 |
| Less: Total operating Cost | 1,214,991,297.16 | 1,280,978,910.20 |
| Business taxes and surcharges | 36,706,687.00 | 52,619,746.17 |
| Selling expenses | 511,328,876.11 | 595,502,558.08 |
| Administrative expenses | 145,493,911.77 | 146,822,872.04 |
| Research and Development (R&D) expenses | 830,544,229.73 | 754,601,871.17 |
| Financial expenses | -143,585,206.84 | -32,942,250.80 |
| Including : Interest expenses | 8,098,667.88 | 31,341,521.92 |
| Interest income | 113,932,437.22 | 139,063,199.07 |
| Add: Other income | 255,891,866.72 | 300,013,588.73 |
| Investment income (loss) | -6,057,956.31 | 14,758,099.27 |
| Including: Investment gain (loss) in associated enterprise and joint-venture enterprise | -6,057,956.31 | -2,599,121.60 |
| Gains (losses) from changes in fair values | -30,856,367.84 | |
| Credit impairment losses (“-“) | 19,945,798.13 | -3,691,052.90 |
| Impairment losses (“-“) of assets | 1,062,741.98 |
| Item | 2020 Q1 | 2019 Q1 |
| Asset disposal income (loss) | 137.59 | 83,734.40 |
| II. Operating profit (loss) | 1,532,791,232.46 | 1,891,392,191.36 |
| Add: Non-operating income | 1,636,767.26 | 5,055,004.45 |
| Less: Non-operating expenses | 812,202.21 | 941,317.88 |
| III. Total profit (loss) | 1,533,615,797.51 | 1,895,505,877.93 |
| Less: Income tax expenses | 153,380,596.34 | 283,570,730.09 |
| IV. Net profit (loss) | 1,380,235,201.17 | 1,611,935,147.84 |
| (a) Net profit (loss) on continuous operation | 1,380,235,201.17 | 1,611,935,147.84 |
| (b) Net profit (loss) on terminated operation | ||
| V. Other comprehensive income, net of income tax | -30,941.41 | |
| (I) Items that will not be reclassified subsequently to profit or loss | ||
| (II) Other comprehensive income to be reclassified to profit or loss in subsequent periods | -30,941.41 | |
| Gains and losses from changes in fair value of other current assets | -30,941.41 | |
| others | ||
| VI. Total comprehensive income | 1,380,235,201.17 | 1,611,904,206.43 |
| Item | 2020 Q1 | 2019 Q1 |
| I. Cash flows from operating activities: | ||
| Cash received from sale of goods or rendering of services | 12,364,575,383.68 | 11,410,249,255.26 |
| Receipts of tax refunds | 701,767,590.55 | 830,266,831.46 |
| Other cash receipts relating to operating activities | 253,999,575.53 | 209,492,317.37 |
| Sub-total of cash inflows from operating activities | 13,320,342,549.76 | 12,450,008,404.09 |
| Cash payments for goods purchased and services received | 11,970,068,113.92 | 9,892,084,287.80 |
| Cash paid to and on behalf of employees | 3,665,925,547.95 | 2,928,612,571.38 |
| Payments of various types of taxes | 1,179,545,852.70 | 1,659,735,081.63 |
| Other cash payments relating to operating activities | 486,851,200.13 | 1,007,775,153.08 |
| Sub-total of cash outflows from operating activities | 17,302,390,714.70 | 15,488,207,093.89 |
| Net Cash flows from Operating Activities | -3,982,048,164.94 | -3,038,198,689.80 |
| II. Cash flows from Investing Activities: |
| Item | 2020 Q1 | 2019 Q1 |
| Cash receipts from recovery of investments | 2,800,000.00 | |
| Cash receipts from investment income | 7,216,471.65 | |
| Net cash receipts from disposals of fixed assets, intangible assets and other long-term assets | 3,661,297.33 | 2,029,190.08 |
| Net cash received from disposal of subsidiaries and other business units | 6,909,760.56 | |
| Other cash receipts relating to investing activities | 19,764,416.70 | 1,344,387.34 |
| Sub-total of cash inflows from investing activities | 33,442,185.68 | 10,283,337.98 |
| Cash payments to acquire or construct fixed assets, intangible assets and other long-term assets | 545,872,224.89 | 382,139,108.19 |
| Net cash paid to acquire subsidiaries and other business units | 312,090,000.00 | |
| Other cash payments relating to investing activities | 75,344,693.57 | |
| Sub-total of cash outflows from investing activities | 857,962,224.89 | 457,483,801.76 |
| Net cash flows from Investing Activities | -824,520,039.21 | -447,200,463.78 |
| III. Cash flows from financing activities: | ||
| Cash receipts from capital contributions | 4,500,000.00 | 1,020,000.00 |
| Including: cash receipts from capital contributions from minority owners of subsidiaries | ||
| Cash receipts from borrowings | 1,825,210,239.36 | 5,211,271,526.27 |
| Sub-total of cash inflows from financing activities | 1,829,710,239.36 | 5,212,291,526.27 |
| Cash repayments of borrowings | 518,982,508.77 | 1,149,914,953.81 |
| Cash repayments of bonds | 3,079,240,000.00 | |
| Cash payments for distribution of dividends or profits or settlement of interest expenses | 53,672,622.16 | 85,277,545.11 |
| Other cash payments relating to financing activities | 2,095,080.00 | |
| Sub-total of cash outflows from financing activities | 572,655,130.93 | 4,316,527,578.92 |
| Net cash flows from Financing Activities | 1,257,055,108.43 | 895,763,947.35 |
| IV. Effect of foreign exchange rate changes on Cash and Cash Equivalents | 14,803,212.07 | -322,299,460.18 |
| V. Net Increase in Cash and Cash Equivalents | -3,534,709,883.65 | -2,911,934,666.41 |
| Add: Opening balance of Cash and Cash Equivalents | 26,515,668,008.40 | 26,023,738,992.19 |
| VI. Closing Balance of Cash and Cash Equivalents | 22,980,958,124.75 | 23,111,804,325.78 |
6. Cash Flow Statement of the Parent Company
Unit: RMB
| Item | 2020 Q1 | 2019 Q1 |
| I. Cash flows from Operating Activities:: | ||
| Cash receipts from the sale of goods and the rendering of services | 3,440,793,769.61 | 1,728,586,413.34 |
| Receipts of tax refunds | 233,879,202.17 | 269,765,182.91 |
| Other cash receipts relating to operating activities | 196,263,149.03 | 167,939,793.53 |
| Sub-total of cash inflows from operating activities | 3,870,936,120.81 | 2,166,291,389.78 |
| Cash payments for goods acquired and services received | 1,457,795,777.54 | 435,382,368.46 |
| Cash payments to and on behalf of employees | 2,125,981,304.27 | 1,706,007,499.64 |
| Payments of various types of taxes | 860,524,128.27 | 1,065,301,762.99 |
| Other cash payments relating to operating activities | 3,788,161,986.18 | 546,402,252.58 |
| Sub-total of cash outflows from operating activities | 8,232,463,196.26 | 3,753,093,883.67 |
| Net Cash flows from Operating Activities | -4,361,527,075.45 | -1,586,802,493.89 |
| II. Cash flows from Investing Activities: | ||
| Cash receipts from recovery of investments | 2,800,000.00 | |
| Net cash receipts from disposals of fixed assets, intangible assets and other long-term assets | 1,190,957.34 | 1,699,547.18 |
| Net cash receipts from disposals of subsidiaries and other business units | 22,061,775.64 | |
| Other cash receipts relating to investing activities | 2,543,566,042.49 | 1,690,715,119.13 |
| Sub-total of cash inflows from investing activities | 2,547,556,999.83 | 1,714,476,441.95 |
| Cash payments to acquire or construct fixed assets, intangible assets and other long-term assets | 147,896,373.36 | 84,514,098.16 |
| Cash payments to acquire investments | ||
| Net cash paid to acquire subsidiaries and other business units | 623,491,250.00 | 10,000,000.00 |
| Other cash payments relating to investing activities | 300,811,908.38 | |
| Sub-total of cash outflows from investing activities | 771,387,623.36 | 395,326,006.54 |
| Net Cash flows from Investing Activities | 1,776,169,376.47 | 1,319,150,435.41 |
| III. Cash flows from Financing Activities | ||
| Cash receipts from capital contributions | 4,714,600.00 | |
| Cash receipts from borrowings | 1,214,164,938.24 | 3,279,240,000.00 |
| Sub-total of cash inflows from financing activities | 1,218,879,538.24 | 3,279,240,000.00 |
| Cash repayments of borrowings | 8,863,858.01 | |
| Cash repayments of bonds | 3,079,240,000.00 |
| Item | 2020 Q1 | 2019 Q1 |
| Cash payments for distribution of dividends or profits or settlement of interest expenses | 13,231,510.58 | 64,608,843.51 |
| Other cash payments relating to financing activities | 2,095,080.00 | |
| Sub-total of cash outflows from financing activities | 22,095,368.59 | 3,145,943,923.51 |
| Net Cash flows from Financing Activities | 1,196,784,169.65 | 133,296,076.49 |
| IV. Effect of foreign exchange rate changes on Cash and Cash Equivalents | 85,110,683.25 | -195,291,375.88 |
| V. Net increase in cash and cash equivalents | -1,303,462,846.08 | -329,647,357.87 |
| Add: Beginning balance of cash and cash equivalents | 16,656,028,410.72 | 18,998,934,287.59 |
| VI. Closing Balance of Cash and Cash Equivalents | 15,352,565,564.64 | 18,669,286,929.72 |
| Item | December 31st 2019 | January 1st 2020 | Adjustments |
| Current Assets: | |||
| Cash and bank balances | 27,071,948,919.78 | 27,071,948,919.78 | 0.00 |
| Held-for-trading financial assets | 181.76 | 181.76 | 0.00 |
| Notes receivable | 973,236,789.02 | 973,236,789.02 | 0.00 |
| Accounts receivable | 21,307,927,200.28 | 21,272,964,582.56 | -34,962,617.72 |
| Receivables for financing | 1,257,385,053.02 | 1,257,385,053.02 | 0.00 |
| Prepayments | 309,685,733.32 | 309,685,733.32 | 0.00 |
| Other receivables | 555,246,545.48 | 555,246,545.48 | 0.00 |
| Inventories | 11,267,986,843.11 | 10,756,027,592.41 | -511,959,250.70 |
| Contract assets | 546,921,868.42 | 546,921,868.42 | |
| Non-current assets due within one year | 528,469,701.75 | 528,469,701.75 | 0.00 |
| Other current assets | 754,456,821.72 | 754,456,821.72 | 0.00 |
| Total Current Assets | 64,026,343,789.24 | 64,026,343,789.24 | 0.00 |
| Non-current Assets: | |||
| Long-term receivables | 1,382,536,761.22 | 1,382,536,761.22 | 0.00 |
| Long-term equity investment | 252,165,321.49 | 252,165,321.49 | 0.00 |
| Other non-current financial assets | 312,398,267.44 | 312,398,267.44 | 0.00 |
| Fixed assets | 5,791,218,720.87 | 5,791,218,720.87 | 0.00 |
| Item | December 31st 2019 | January 1st 2020 | Adjustments |
| Construction in progress | 631,555,479.06 | 631,555,479.06 | 0.00 |
| Intangible assets | 1,046,122,507.64 | 1,046,122,507.64 | 0.00 |
| Goodwill | 273,611,961.96 | 273,611,961.96 | 0.00 |
| Long-term deferred expenses | 87,611,490.75 | 87,611,490.75 | 0.00 |
| Deferred tax assets | 688,849,263.70 | 688,849,263.70 | 0.00 |
| Other non-current assets | 865,586,676.92 | 865,586,676.92 | 0.00 |
| Total Non-current Assets | 11,331,656,451.05 | 11,331,656,451.05 | 0.00 |
| Total Assets | 75,358,000,240.29 | 75,358,000,240.29 | 0.00 |
| Current Liabilities: | |||
| Short-term borrowings | 2,640,082,485.15 | 2,640,082,485.15 | 0.00 |
| Held-for-trading financial liabilities | 652,428.18 | 652,428.18 | 0.00 |
| Notes payable | 1,239,584,016.70 | 1,239,584,016.70 | 0.00 |
| Accounts payable | 12,700,075,307.70 | 12,700,075,307.70 | 0.00 |
| Receipts in advance | 1,020,989,460.61 | -1,020,989,460.61 | |
| Contract liabilities | 1,020,989,460.61 | 1,020,989,460.61 | |
| Payroll payable | 2,359,674,640.12 | 2,359,674,640.12 | 0.00 |
| Taxes payable | 991,342,805.91 | 991,342,805.91 | 0.00 |
| Other payables | 1,568,744,599.94 | 1,568,744,599.94 | 0.00 |
| Including : Interests payable | |||
| Dividends payable | 108,129,385.24 | 108,129,385.24 | 0.00 |
| Non-current liabilities due within one year | 86,123,154.06 | 86,123,154.06 | 0.00 |
| Other current liabilities | 913,534,538.26 | 913,534,538.26 | 0.00 |
| Total Current Liabilities | 23,520,803,436.63 | 23,520,803,436.63 | 0.00 |
| Non-current Liabilities: | |||
| Long-term borrowings | 4,604,168,571.43 | 4,604,168,571.43 | 0.00 |
| Long-term payables | 50,181,416.72 | 50,181,416.72 | 0.00 |
| Provisions | 90,570,669.01 | 90,570,669.01 | 0.00 |
| Deferred income | 333,589,831.30 | 226,340,284.30 | -107,249,547.00 |
| Deferred tax liabilities | 51,088,103.96 | 51,088,103.96 | 0.00 |
| Other non-current liabilities | 1,234,739,326.10 | 1,341,988,873.10 | 107,249,547.00 |
| Total non-current liabilities | 6,364,337,918.52 | 6,364,337,918.52 | 0.00 |
| Total liabilities | 29,885,141,355.15 | 29,885,141,355.15 | 0.00 |
| Owners’ Equity | |||
| Share capital | 9,345,010,696.00 | 9,345,010,696.00 | 0.00 |
| Item | December 31st 2019 | January 1st 2020 | Adjustments |
| Capital reserves | 4,126,943,698.96 | 4,126,943,698.96 | 0.00 |
| Less: Treasury shares | 2,148,273,864.36 | 2,148,273,864.36 | 0.00 |
| Other comprehensive income | -53,541,146.99 | -53,541,146.99 | 0.00 |
| Surplus reserves | 4,672,505,348.00 | 4,672,505,348.00 | 0.00 |
| Retained earnings | 28,961,389,145.22 | 28,961,389,145.22 | 0.00 |
| Total owners' equity attributable to owner of the Company | 44,904,033,876.83 | 44,904,033,876.83 | 0.00 |
| Minority equity | 568,825,008.31 | 568,825,008.31 | 0.00 |
| Total owners' equity | 45,472,858,885.14 | 45,472,858,885.14 | 0.00 |
| Total liabilities and owners' equity | 75,358,000,240.29 | 75,358,000,240.29 | 0.00 |
| Item | December 31st 2019 | January 1st 2020 | Adjustments |
| Current Assets: | |||
| Cash and bank balances | 16,851,590,525.05 | 16,851,590,525.05 | 0.00 |
| Notes receivable | 149,703,073.98 | 149,703,073.98 | 0.00 |
| Accounts receivable | 25,107,965,925.08 | 25,107,965,925.08 | 0.00 |
| Receivables for financing | 84,839,695.67 | 84,839,695.67 | 0.00 |
| Prepayments | 160,688,588.99 | 160,688,588.99 | 0.00 |
| Other receivables | 921,275,388.15 | 921,275,388.15 | 0.00 |
| Including: Interests receivable | |||
| Dividends receivable | 2,550,000.00 | 2,550,000.00 | 0.00 |
| Inventories | 171,243,815.97 | 160,419,083.27 | -10,824,732.70 |
| Contract assets | 10,824,732.70 | 10,824,732.70 | |
| Non-current assets due within one year | 4,513,795.81 | 4,513,795.81 | 0.00 |
| Other current assets | 23,117,398.50 | 23,117,398.50 | 0.00 |
| Total Current Assets | 43,474,938,207.20 | 43,474,938,207.20 | 0.00 |
| Non-current Assets: | |||
| Long-term receivables | 681,568.43 | 681,568.43 | 0.00 |
| Long-term equity investment | 5,074,018,030.44 | 5,074,018,030.44 | 0.00 |
| Other non-current financial assets | 309,504,047.44 | 309,504,047.44 | 0.00 |
| Fixed assets | 2,831,295,145.61 | 2,831,295,145.61 | 0.00 |
| Construction in progress | 153,416,054.28 | 153,416,054.28 | 0.00 |
| Intangible assets | 188,362,883.75 | 188,362,883.75 | 0.00 |
| Long-term deferred expenses | 34,199,446.06 | 34,199,446.06 | 0.00 |
| Deferred tax assets | 126,357,792.34 | 126,357,792.34 | 0.00 |
| Other non-current assets | 21,619,464.07 | 21,619,464.07 | 0.00 |
| Item | December 31st 2019 | January 1st 2020 | Adjustments |
| Total Non-current Assets | 8,739,454,432.42 | 8,739,454,432.42 | 0.00 |
| Total Assets | 52,214,392,639.62 | 52,214,392,639.62 | 0.00 |
| Current Liabilities: | |||
| Short-term borrowings | 2,001,781,388.89 | 2,001,781,388.89 | 0.00 |
| Accounts payable | 450,983,270.08 | 450,983,270.08 | 0.00 |
| Receipts in advance | 227,242,328.23 | -227,242,328.23 | |
| Contract liabilities | 227,242,328.23 | 227,242,328.23 | |
| Payroll payable | 1,564,304,003.49 | 1,564,304,003.49 | 0.00 |
| Taxes payable | 796,890,945.83 | 796,890,945.83 | 0.00 |
| Other payables | 533,325,191.05 | 533,325,191.05 | 0.00 |
| Including : Interests payable | |||
| Dividends payable | 105,679,385.24 | 105,679,385.24 | 0.00 |
| Non-current liabilities due within one year | 9,539,251.98 | 9,539,251.98 | 0.00 |
| Other current liabilities | 913,534,538.26 | 913,534,538.26 | 0.00 |
| Total Current Liabilities | 6,497,600,917.81 | 6,497,600,917.81 | 0.00 |
| Non-current Liabilities: | |||
| Long-term borrowings | 3,126,200,000.00 | 3,126,200,000.00 | 0.00 |
| Provisions | 62,863,096.83 | 62,863,096.83 | 0.00 |
| Deferred income | 162,018,728.45 | 162,018,728.45 | 0.00 |
| Other non-current liabilities | 1,234,739,326.10 | 1,234,739,326.10 | 0.00 |
| Total non-current liabilities | 4,585,821,151.38 | 4,585,821,151.38 | 0.00 |
| Total liabilities | 11,083,422,069.19 | 11,083,422,069.19 | 0.00 |
| Owners’ Equity | |||
| Share capital | 9,345,010,696.00 | 9,345,010,696.00 | 0.00 |
| Capital reserves | 4,064,833,739.52 | 4,064,833,739.52 | 0.00 |
| Less: Treasury shares | 2,148,273,864.36 | 2,148,273,864.36 | 0.00 |
| Surplus reserves | 4,672,505,348.00 | 4,672,505,348.00 | 0.00 |
| Retained earnings | 25,196,894,651.27 | 25,196,894,651.27 | 0.00 |
| Total owners' equity | 41,130,970,570.43 | 41,130,970,570.43 | 0.00 |
| Total liabilities and owners' equity | 52,214,392,639.62 | 52,214,392,639.62 | 0.00 |
(2) Description of retrospective adjustment to prior comparative data for the implementation of the newrevenue standard since 2020.
√Applicable □Inapplicable
The new revenue standard establishes a new revenue recognition model for regulating revenue fromcontracts with customers. According to the new revenue standard, the method of revenue recognition shouldreflect the entity's mode of transferring goods or services to customers, and the amount of revenue should reflectthe amount of consideration that the entity expects to be entitled to due to the transfer of such goods and servicesto customers. At the same time, the new revenue standard also regulates the judgments and estimates requiredfor each step of revenue recognition. The Company only adjusted the cumulative impact of contracts that havenot been completed on January 1
st 2020. For contract changed before or on January 1
st
2020, the Companyadopted a simplified approach to all these contracts based on the final arrangements on contract changes,identified the fulfilled and unfulfilled performance obligations, determined the transaction price, and allocatedthe transaction price between the fulfilled and unfulfilled performance obligations.
The impact of the implementation of the new revenue standard on January 1
st2020 balance sheet items is asfollows:
Consolidated Balance Sheet
Unit: RMB
| Book value presented according to former revenue standards on December 31st 2019 | Reclassification | Book value presented according to the New Revenue Standard on January 1st 2020 | |
| Accounts receivable | 21,307,927,200.28 | -34,962,617.72 | 21,272,964,582.56 |
| Inventories | 11,267,986,843.11 | -511,959,250.70 | 10,756,027,592.41 |
| Contract assets | 546,921,868.42 | 546,921,868.42 | |
| Other non-current assets- Completed but unsettled assets formed by construction contracts | 751,457,739.44 | -751,457,739.44 | |
| Other non-current assets-contract assets | 751,457,739.44 | 751,457,739.44 | |
| Receipts in advance | 1,020,989,460.61 | -1,020,989,460.61 | |
| Contract liabilities | 1,020,989,460.61 | 1,020,989,460.61 | |
| Deferred income | 333,589,831.30 | -107,249,547.00 | 226,340,284.30 |
| Other non-current liabilities-contract liabilities | 107,249,547.00 | 107,249,547.00 |
Balance Sheet of the Parent Company
Unit: RMB
| Book value presented according to former revenue standards on December 31st 2019 | Reclassification | Book value presented according to the New Revenue Standards on January 1st 2020 | |
| Inventories | 171,243,815.97 | -10,824,732.70 | 160,419,083.27 |
| Contract assets | 10,824,732.70 | 10,824,732.70 | |
| Receipts in advance | 227,242,328.23 | -227,242,328.23 | |
| Contract liabilities | 227,242,328.23 | 227,242,328.23 |