| Stock Code: 688007 | Stock Short Name: Appotronics |
Appotronics Corporation Limited
2024 Semiannual Report
August 2024
本报告为深圳光峰科技股份有限公司自愿披露的《2024年半年度报告（英文版）》，对本报告的中英文版本理解上发生歧义时，以中文版本为准。
This is 2024 Semiannual Report (English Version) voluntarily disclosed by AppotronicsCorporation Limited. In the event of any discrepancy between the English and Chineseversions of this Report, the Chinese version shall prevail.
Important Note
I. The Board of Directors, the Board of Supervisors, directors, supervisors and senior officers ofthe Company hereby warrant that the information contained in this Semiannual Report is true,accurate and complete and this Semiannual Report is free from any misrepresentation, misleadingstatement or material omission, and agree to assume joint and several liability for this SemiannualReport.II. Alert of significant risksThe Company has described in detail the risks that may exist in the production and operation of theCompany in this Report. Refer to “Section III Discussion and Analysis of the Management - V. Riskfactors” for the relevant risks. The investors should be aware of the risk of investment.III. All directors of the Company attended the meeting of the Board of Directors.IV. This Semiannual Report has not been audited.V. LI Yi, Principal of the Company, WANG Yingxia, Person in Charge of the Accounting Work,and WANG Yingxia, Person in Charge of the Accounting Body (Chief Accountant), hereby warrantthat the financial report contained in this Semiannual Report is true, accurate and complete.VI. Profit distribution proposal or proposal for capitalization of capital reserve approved by theBoard of Directors during the reporting period
NoneVII. Is there any material event concerning any special arrangement of corporate governance?
□ Applicable√ N/A
VIII. Risk statement regarding forward-looking statements
√ Applicable□ N/A
The forward-looking statements contained herein regarding the future plans, development strategiesor other matters of the Company do not constitute any substantive covenant made by the Company to theinvestors. Investors and relevant personnel should sufficiently know about the risks in this aspect, andunderstand the differences among plans, predictions, and promises. The investors should be aware of therisk of investment.IX. Is there any non-operating occupation of funds by the controlling shareholder or other affiliates?
NoX. Is there any external guarantee provided in contravention of the stipulated decision-makingprocedure?
No
XI. Are the majority of the directors unable to guarantee the truthfulness, accuracy andcompleteness of the Semiannual Report disclosed by the Company?NoXII. Others
□ Applicable√ N/A
Table of Contents
Section I Definitions ...... 5
Section II Company Profile and Financial Highlights ...... 6
Section III Discussion and Analysis of the Management ...... 11
Section IV Corporate Governance ...... 32
Section V Environment and Social Responsibilities ...... 35
Section VI Significant Matters ...... 38
Section VII Changes in Shares and Shareholders ...... 57
Section VIII Preferred Shares ...... 64
Section IX Bonds ...... 65
Section X Financial Report ...... 66
List of DocumentsAvailable for Inspection
Company, Person in Charge of the Accounting Work, and
| Person in Charge |
of the Accounting Body (Chief Accountant)
disclosed during the reporting period
Section I DefinitionsFor purpose of this Report, unless the context otherwise requires, the following terms shall have themeanings indicated below:
| Terms | |
| Company or Appotronics | |
means Appotronics Corporation Limited
| Appotronics Ltd. | means | Appotronics Corporation Ltd., the predecessor of the Company |
| CINEAPPO | means | CINEAPPO Laser Cinema Technology (Beijing) Co., Ltd. |
| Formovie, Chongqing Formovie |
means Formovie (Chongqing) Innovative Technology Co., Ltd.
| Appotronics HK | means | Appotronics Hong Kong Limited |
| Appotronics Daye | means | Shenzhen Appotronics Daye Investment Partnership (LP) |
| Appotronics Deye | means | Shenzhen Appotronics Deye Consulting Partnership (LP) |
| Appotronics Hongye | means | Shenzhen Appotronics Hongye Investment Partnership (LP) |
| Appotronics Chengye | means | Shenzhen Appotronics Chengye Consulting Partnership (LP) |
| Jinleijing | means | Shenzhen Jinleijing Investment Limited Partnership (LP) |
| Blackpine | means | Blackpine Investment Corp. Ltd. |
| CINIONIC | means | Cinionic Limited (previously known as Barco Cineappo Limited) |
| GDC BVI | means | GDC Technology Limited (British Virgin Islands) |
| GDC Cayman | means | GDC Technology Limited (Cayman Islands) |
| SSE | means | Shanghai Stock Exchange |
| Delta Electronics or Delta |
means Delta Electronics, Inc.
| AI | means | Artificial Intelligence |
| AR | means | Augmented Reality |
| DCI | means | Digital Cinema Initiatives of the United States |
| DLP | means | Digital Light Processing |
LCOS means
| Liquid Crystal on Silicon, a new reflective display technology that organically combines LCD and CMOS integrated circuits | ||
| LCD | means | Liquid Crystal Display |
| RGB | means | Optical three primary colors, R: red, G: green, B: blue |
| LED | means | Light Emitting Node, a common light emitting device |
4K means
| A screen resolution of digital products, representing the screen resolution of 4096×2160, which is an ultra-high-definition resolution | ||
| ADB | means | Adaptive Driving Beam |
| Tier 1 | means | Tier 1 supplier for automobile manufacturers |
Section II Company Profile and Financial HighlightsI. Company profile
深圳光峰科技股份有限公司
| Chinese name | |
| Short name in Chinese |
光峰科技
| English name | Appotronics Corporation Limited |
| Short name in English | Appotronics |
| Legal representative | LI Yi |
Registered address
Historical changes ofthe Company’sregistered address
| 20-22/F, Hi-tech Zone Union Tower, No. 63 Xuefu Road, Yuehai Street, Nanshan District, Shenzhen |
| 1. October 24, 2006, Room 10, 14/F, Fangda Building, Keji South 12th Road, South |
Area, High-tech Industrial Zone, Nanshan District, Shenzhen
2. September 6, 2007, Room 03, 17/F, Overseas Chinese High-
South Area, High-tech Industrial Zone, Nanshan District, Shenzhen
3. June 7, 2011, Area A, 1/F, Building 13, Xili Wenguang Industrial Zone, Nansha
| n |
District, Shenzhen
to Chaguang Road, Xili Township, Nanshan District, Shenzhen
5. December 14, 2017, 21-22/F, Hi-
| tech Zone Union Tower, No. 63 Xuefu Road, |
Yuehai Street, Nanshan District, Shenzhen
6. August 1, 2018, 20-22/F, Hi-
Office address
| tech Zone Union Tower, No. 63 Xuefu Road, Yuehai Street, Nanshan District, Shenzhen | |
| 20-22/F, Hi-tech Zone Union Tower, No. 63 Xuefu Road, Yuehai Street, Nanshan District, Shenzhen | |
| Postal code of office address |
518052
| Website | http://www.appotronics.com |
| ir@appotronics.cn |
II. Contact person and contact information
| Board Secretary (Domestic |
representative for information
Securities affairs representative
| disclosure) | ||
| Name | CHEN Yasha | WANG Weiqi |
Address
| 20-22/F, Hi-tech Zone Union Tower, No. 63 Xuefu Road, Yuehai Street, Nanshan District, Shenzhen | |
| Telephone | 0755-32950536 |
| Facsimile | 0755-86186299 |
| ir@appotronics.cn |
III. Description of changes to the media for information disclosure and place for keeping
semiannual reportsDesignated newspaper for informationdisclosure
Shanghai Securities News (https://www.cnstock.com)Securities Times (http://www.stcn.com)
| Securities Daily (http://www.zqrb.cn) | |
| Websites for publishing the semiannual reports | Shanghai Stock Exchange website (http://www.sse.com.cn) |
| Place for keeping the semiannual reports | Office of the Board of Directors |
N/A
IV. Stock/depository receipts of the Company(I) Stock of the Company
√ Applicable□ N/A
Reference to changes during thereporting period
Stock of the Company
Stock class Stock exchange and board
| Stock of the Company | ||
| Stock short name | ||
Stock code
A-shares
| Former stock short name | ||
| Shanghai Stock Exchange, STAR Market |
Appotronics 688007 N/A
(II) Depository receipts of the Company
□ Applicable√ N/A
V. Other related information
□ Applicable√ N/A
VI. Main accounting data and financial indicators of the Company(I) Main accounting data
In RMBMain accounting data
reporting period
| (Jan. - Jun.) |
Prior period
Change over theprior period (%)
| Operating income | 1,081,409,500.21 | 1,073,249,037.75 | 0.76 |
| Net profit attributable to shareholders of the listed company |
10,909,613.44 74,914,640.95 -85.44
after deduction of non-recurring
| profit or loss |
13,479,287.51 34,228,839.62 -60.62
-79,146,670.23 114,738,832.13 -168.98
At the end of thereporting period
At the end of the
prior year
| Net cash flows from operating activities | ||
| Changes at the end |
of the reportingperiod from the end
| of the prior year (%) | ||
| Net assets attributable to shareholders of the listed company |
2,750,858,141.24 2,818,869,452.99 -2.41
| Total assets | 4,283,671,300.74 | 4,220,570,891.16 | 1.50 |
(II) Financial highlights
Financial highlights
reporting
period
| (Jan. - Jun.) |
Prior period
Change over theprior period (%)
0.02 0.16 -87.50
| Basic earnings per share (RMB/share) |
| Diluted earnings per share (RMB/share) |
0.02 0.16 -87.50
deduction of non-recurring profit or
| loss (RMB/share) |
0.03 0.07 -57.14
0.39 2.78
| Weighted average return on net assets (%) | -2.39 percentage points | |
| Weighted average return on net |
assets after deduction of non-
0.48 1.27
-0.79 percentagepoints
| recurring profit or loss (%) |
| Proportion of R&D investments to operating income (%) |
10.32 11.78
Explanation about the main accounting data and financial highlights
√ Applicable□ N/A
1. During the reporting period, we achieved rapid development of the automotive optics business,
achieving the operating income of RMB 241 million, including about RMB 200 million achieved in the
ndquarter of 2024.
2. During the reporting period, the net profit attributable to shareholders of the listed company and the net
profit attributable to shareholders of the listed company after deduction of non-recurring profit or lossdecreased by 85.44% and 60.62% year on year, respectively; the basic earnings per share, diluted earningsper share, and basic earnings per share after deduction of non-recurring profit or loss decreased by 87.50%,
87.50%, and 57.14%, respectively year on year, primarily due to the following:
(1) During the reporting period, we took the initiative to adjust the policy for consumer business operation
and accelerated the pace of clearing the inventory of consumer products, which led to the decrease in boththe ratio and gross profit margin of incomes from the consumer business, while our automotive businessentered the intense delivery period and increased its ratio among the businesses. The difference in theproduct portfolio led to the decrease in the overall gross profit margin by 6.65 percentage points.
(2) During the reporting period, the arbitration case between the Company and relevant GDC entities was
still under trial; after investigation and evidence collection, multiple hearings, request for remedies, etc.,the legal service fees settled for this arbitration case during the reporting period was RMB 18.4509 million;meanwhile, given the performance loss of GDC, the profit and loss adjustment during the period of holdingthe long-term equity investment and the fair value transferred to other non-current financial assets weremeasured and recognized as investment losses. With the impact of such factors eliminated, the Company’snet profit attributable to the parent company and the net profit attributable to the parent company net ofnon-recurring profit or loss are as follows:
-1.46 percentagepointsFinancial indicators with the impact related to GDC
eliminated
| Financial indicators with the impact related to GDC eliminated | During the reporting period (in RMB 0’000) |
| Net profit attributable to shareholders of the listed company |
7,063.50
3,585.16
3. During the reporting period, the net cash flows from operating activities decreased by 168.98% year on
year, which was primarily due to the increase in the operating capital required in response to the growthin our automotive business, and the increase in restricted monetary funds (for details, refer to“Encumbrances on major assets as of the end of the reporting period” in Section III Discussion and
Analysis of the Management). The net cash flows from operating activities without the impact of restrictedmonetary funds is RMB 33.5993 million.VII. Differences in accounting data under Chinese accounting standards and overseas accounting
standards
□ Applicable√ N/A
VIII. Items and amounts of non-recurring profit or loss
√ Applicable□ N/A
In RMB
| Item of non-recurring profit or loss | Amount | Note (if applicable) |
| Gain or loss on disposal of non-current assets, including write-off of provision for asset impairment |
-542,907.96
effects on t
| he profit or loss of the Company according to the provisions of national policies) |
6,613,195.04
X
| VII.67 of Section X, and VII.74 of Section | ||
| Profit or loss on changes in the fair value of financial assets |
and financial liabilities held by non-financial enterprises andprofit or loss on the disposal of financial assets and financial
19,343,730.90
| liabilities, other than those used in the effective hedging activities related to normal operating business of the Company | VII.68 of Section X, |
and
X
| VII.70 of Section | ||
| Income earned from lending funds to non-financial institutions and recognized in profit or loss |
| Profit or loss on entrusted investments or assets management | 6,982,910.02 | VII. 68 of Section X |
| Profit or loss on entrusted loans |
| Losses on assets due to force majeure events, e.g. natural disasters |
518,247.41
| Reversal of impairment loss on accounts receivable tested for impairment individually |
| The excess of attributable fair value of identifiable net assets |
over the consideration paid for the acquisition of subsidiaries,
| associates and joint ventures |
result of a business combination involving entities under
| common control |
7,005,333.38
| Profit or loss on exchange of non-monetary assets |
| Profit or loss on debt restructuring |
| One-off expenses incurred by the enterprise for discontinued |
operating activities, such as
| expenditures for employee placement, etc. |
| One-off effect on the profit or loss for the current period due to an adjustment in taxation, accounting, and other laws and regulations |
| Share-based payment expenses recognized on a one-off basis for canceling or modifying an equity incentive plan |
change in fair value of employee benefits payable after the
| exercise date |
| Profit or loss on changes in the fair value of investment properties that are subsequently measured using the fair value |
| model | |
| Profit or loss attributable to the evidently unfair transaction price |
| Profit or loss arising from contingencies other than those related to normal operating business |
| Custodian fees earned from entrusted operation |
| Other non-operating income and expenses | 1,103,459.06 |
| Other gains or losses meeting the definition of non-recurring profit or loss | -37,353,061.61 |
VII. 68 of Section X
| Less: Effect of income taxes | 4,782,728.03 | |
| Effects attributable to minority interests (net of tax) | 1,457,852.28 | |
| Total | -2,569,674.07 |
It is required to specify the reason for defining items not illustrated in Information Disclosure andPresentation Rules for Companies Making Public Offering of Securities No. 1 - Non-recurring Profit orLoss as non-recurring profit or loss items of significant amounts, and reason for defining non-recurringprofit or loss items illustrated in Information Disclosure and Presentation Rules for Companies MakingPublic Offering of Securities No. 1 - Non-recurring Profit or Loss as recurring profit or loss items
√ Applicable□ N/A
In RMB
| Item | Amount involved | Reason |
GDCTechnologyLimited (BVI)
-37,353,061.61
participating company GDC BVI; as a result, the accountingmethod was adjusted from long-
| term equity investment to |
other non-
financial assets at fair value through profit or loss. The profitor loss arising from the remeasurement based on fair value isrecognized in non-recurring profit or loss, and presented underother profit or loss items meeting the definition of non-
| recurring profit or loss. |
IX. Explanation about performance indicators not under the Accounting Standards for Business
Enterprises
□ Applicable√ N/A
Section III Discussion and Analysis of the ManagementI. Industry and main business during the reporting period
1. Main business
The Company, as a global leading enterprise in the field of laser display technology, stays market andcustomer demand-oriented, and continues to engage in the research, development, production, and salesof laser display core devices and complete equipment based on the proprietary semiconductor laser lightsource technologies and architecture to provide customers with all-around and multi-field solutions.
2. Main products and services
Our existing mature business scenarios include cinema projection, large venue, education, household,etc., while the new automotive business is a significant growth pole of the Company. Our products maybe mainly classified into core laser display devices and complete laser display equipment. The core devicescan be further classified into core devices for automotive optics, laser light source, laser TV and smartmini projection light generator, and high-gain and high-contrast ratio projection screens, etc., and completeequipment can be classified into laser smart mini projector, laser TV, laser cinema projector, laser largevenue projector, laser education projector and others. The services the Company performs include lasercinema projection services, VLED LED Cinema projection solution, large venue projection automatic 3DMapping, and corresponding system solutions.
3. Industry in which the Company operates
3.1 Development stage, basic characteristics and main technical barriers of the industry
(1) Development stage of the industry
As an emerging industry, laser display is at a stage of rapid growth, and its growth drivers mainlycome from: 1. technological progress has spawned emerging application fields, and semiconductor laserlight source technology has been applied to the automotive optics, AR, and other fields, and the markethas great potential for explosion; 2. the laser display industry in which the Company operates is one of thestrategic emerging industries receiving the major support from the state for accelerated development. Withthe support of national and industry policies, more and more domestic enterprises and scientific researchinstitutions enter the upstream and downstream fields of the laser display industry chain, strengthen theindustrial chain, actively develop and iterate technology, thus further increasing the localization rate ofcore components.
(2) Basic characteristics of the industry
In 2007, the ALPD
?semiconductor laser light source technology invented by our R&D team createda wholly new semiconductor laser light source. Technically matching with multiple chip and technicalroutes and being suitable for DLP, LCOS, and LCD technologies, the ALPD
?
semiconductor laser lightsource technology made a breakthrough in the application of core devices and imaging solutions of laserdisplay in the field of display, thus becoming the mainstream technical route for the laser display industry.
In terms of application, in addition to traditional applications such as cinema, large venue, andeducation, emerging industries such as intelligent cockpit, laser headlight, intelligent networking, AR, and
AI are booming, and gradually become a new application development focus of the laser display industry,and the overall scale of the industry continues to expand, which is expected to help to broaden theapplication scenarios of the ALPD
?semiconductor laser light source technology.
(3) Main technical barriers
Laser display technologies, as an important direction for the development of the display industry,have the feature of high technical barriers, where the specific barriers include: light source technologies,optical engine and imaging devices, signal processing circuits, screen technologies, heat dissipationtechnologies, color management, standard formulation, patented technologies, research and developmentcapabilities, etc. In the laser light source technology, a laser beam is used to transmit through images;optical engine and imaging devices include optical imaging devices, optical engine and drive circuits, forwhich precision manufacturing and integration are the key to achieve high-quality display effects; thescreen technology ensures image quality and color accuracy. The high barriers of laser displaytechnologies also indicate huge market potentials and development prospect. Thanks to the increasingmaturity and decreasing costs of laser display technologies, laser display is expected to enhance its positionon the display market in the future.
We are committed in the breakthroughs, innovations, expansion of application scenarios, andindustrialization of semiconductor laser light source technologies; in particular, we have profoundaccumulation in light source technologies, optical engine and imaging technologies, screen technologies,etc., and have created technology reserves and patent portfolios covering the whole technology chain oflaser display technology from key system architecture, core devices to key algorithms. Meanwhile, theCompany has devoted many R&D resources in the miniaturization of laser display system, light sourcearchitecture, complete equipment structure, machine perception, and the preparation and processing ofthin film materials to maintaining the leading position in the industry. As a Leader Level Member of theLaser Illuminated Projector Association (LIPA), we have participated in the preparation of theinternational laser display standard.
3.2 Analysis of the position of the Company in the industry and changes therein
The ALPD
?semiconductor laser light source technology, as the mainstream technology in the fieldof laser display, has the advantages of high brightness, small size, long service life, wide color gamut,energy conservation and environmental protection, etc.
As the inventor of the ALPD
?semiconductor laser light source technology and the leader in the laserdisplay industry, we have built a patent moat around the underlying technical architecture of ALPD
?
semiconductor laser light source technology, and created technology reserves and patent portfolioscovering the whole technology chain of laser display technology from key system architecture, coredevices to key algorithms; projection brands entering the technology route of laser phosphor technologiescan hardly bypass our underlying patent layout. In addition, we are committed in the breakthroughs,innovations, expansion of application scenarios, and industrialization of semiconductor laser light sourcetechnology. Thanks to the core competitive advantages consisting of “patent moat + technical barriers”,the Company continuously holds a key position at the upstream core device stage.
II. Core technologies and progress in R&D of technologies
1. Core technologies and their advancement, and changes during the reporting period
The ALPD
?is our original semiconductor laser light source technology of great significance in thedisplay industry.
1) Original creation: In the past lighting and display, the rare earth phosphor is used only in LED
light sources, while we made the original creation of using rare earth phosphor in laser light sources.
2) Uniqueness: To improve the stability of the rare earth phosphor after being excited by laser, we
explored a unique impulse mode and created unique impulse architecture, which is under strict patentprotection.
3) Flexibility: Since the ALPD
?semiconductor laser light source technology combines twomaterials/devices, there are many methods of adjustment between the two portions in this architecture,including ① adjustable blue light distribution to output light that is adjustable in space; ② variousphosphor powders to achieve flexible color segments; and ③ adjustable ratio and strength among colorsegments after the blue light is excited. Therefore, the output light is adjustable in terms of strengthdistribution, brightness distribution, color temperature, and color to meet the requirements for differentscenarios.
4) Significance of the industry: Despite the long history of using a laser light source in the display
industry, subject to the high cost of red and green lasers, it was hard to make breakthroughs in theindustrialization of laser light sources. However, our ALPD
?semiconductor laser light source technologygreatly promoted the process of commercialization and industrialization of laser in the projection displayindustry.
5) Significance in materials: The ALPD
?semiconductor laser light source technology relies on theblue laser and rare earth phosphor more than the RGB technology. The blue laser and blue LED share thegallium nitride material system; given the developed LED industry in China, there is a favorable basis ofthe gallium nitride system industry. In terms of the rare earth phosphor, since China has the most abundantrare earth resources in the world, and rare earth phosphor is one of the important applications of the rareearth element, China has the advantages of resource reserves in the world in terms of rare earth phosphor.We have created a perfect combination point between the two material systems for which China has theindustry advantages, which provided the basic conditions for the long-lasting development of thistechnology architecture.National scientific and technology awards
□ Applicable√ N/A
Qualification of national “little giant” enterprises in specialized, refined, differential, and innovativeaspects, and “leading enterprise” in the manufacturing industry
□ Applicable√ N/A
2. R&D achievements during the reporting period
(1) Core devices
In the field of automotive core components, we have successfully integrated automobile-gradeprojection giant screen as an important component into the smart cockpit, which have been exclusivelyadopted on mainstream automobile models including AITO M9, Stelato S9, etc. This is theimplementation of a significant innovative application in cockpit display. In addition, an upgrade versionof a new generation of vehicle-mounted projection system is continuously under development. Thevehicle-mounted projection system 2.0 solution will double both the brightness and resolution, while thescreen will be upgraded with anti-ambient light screen materials, so as to provide users with betterwatching experience and continuously reduce the price of nominated automobile models. In the aspect ofheadlights, we released the world’s first ALL-in-ONE all-purpose laser headlight at the BeijingInternational Automotive Exhibition in 2024. Unlike conventional headlights with only the lightingfunction, the ALL-in-ONE all-purpose laser headlight can achieve the effects of “accurate lighting +accurate display” with one headlight module to provide users with comprehensive functions of lighting,colorful display, front fog light, ADB, etc. By greatly reducing the power consumption and volume of theentire headlight system, this allows automotive manufacturers to upgrade functions while reducing thecosts of the comprehensive platform, thus attracting wide attention from automotive manufacturers andtier 1 suppliers. The ALL-in-ONE all-purpose laser headlight is the only headlight on the market that canachieve colorful display. It facilitates the designing of automobile front face while meeting requirementsin all aspects of security, social interaction, and personalization. It can be equipped on various mainstreamautomobile models, and we are making active efforts to promote the cooperation with various automobilemanufacturers.
(2) Branded complete equipment
During the reporting period, we released a flagship new product - S Pro series large venue projector,which is the first large venue projector of over 10,000 lumens and 4K resolution in China. It fills the gapof domestic large venue projectors in the range of 15,000-20,000 lumens and creates new qualityproductive forces for the development of the industry. As the first application of ALPD
?
5.0 super
panchromatic laser technology in the field of large venue projection, the S Pro series large venue projectoris ideal for such application scenarios like exhibition, cultural tourism, outdoor landscape, stageperformance, etc. Meanwhile, we upgraded the “Appotronics dedicated control APCS 2.0 system” tosupport the control and on-site monitoring of up to 3,000 projectors, thus providing a highly efficient andsmooth solution for the sites of large-scale events.List of intellectual property rights acquired during the reporting period
| Increase | Total | |||
| Applications (pcs) | Granted (pcs) | Applications (pcs) | Granted (pcs) | |
| Patent for invention | ||||
34 67 1,745 1,148
58 61 932 829
| Patent for utility model | ||||
| Patent for design | 4 | 5 | 242 | 234 |
| Software copyright |
2 2 144 144
| Others | 16 | 35 | 1,165 | 1,086 |
| Total | 114 | 170 | 4,228 | 3,441 |
Note: 1. The “others” shown in the above table refers to the Company’s trademarks.
3. R&D investments
In RMB
| Current period | Prior period | % Change | |
| R&D investments expensed | 111,618,787.20 | 126,406,142.12 | -11.70 |
| R&D investments capitalized | - | - | - |
| Total R&D investments | 111,618,787.20 | 126,406,142.12 | -11.70 |
| Proportion of R&D investments to operating income (%) |
10.32 11.78
| -1.46 percentage points | ||
| Proportion of R&D investments capitalized (%) |
- -
Reason for the material change in the total R&D investments compared with last year
□ Applicable√ N/A
Reason for the great change in the proportion of R&D investments capitalized and explanationabout the rationality thereof
□ Applicable√ N/A
4. R&D projects
√ Applicable□ N/A
In RMB 0’000No. Project
Estimatedtotalinvestment
Investment inthe currentperiod
Aggregateinvestment
Progressor interimresults
Goals
Technological level
Application scenario
Innovativeopticalapplication
25,072.00 4,904.48 18,109.02
Massproduction
Leading inthe industry
| Provide customized automotive optical products for vehicle manufacturer brands, and develop AR optical modules, etc. | Automotive, AR, and other innovative |
scenarios.
Core device
generatorproject
12,678.00 1,337.30 9,690.89
Massproduction
| light source and light | Continuously develop the new |
generation of ALPD
?semiconductorlaser light source technology to achieve
Leading inthe industry
Continuous
| light sources and light generators with lower cost, wider color gamut, higher brightness, and higher energy efficiency. | development of core technologies and core |
dev
various fields.
Cinemaproducts
15,516.00 1,373.20 12,921.39
Massproduction
| ices for use in | ||
| Develop DCI-compliant and highly |
cost-
projectors; and DCI-
| compliant LED cinema screen for cinema projection halls. |
Leading inthe industry
Intended for the high-
and projection halls atcinemas.
Dedicateddisplayproducts
10,892.00 1,238.38 8,834.28
Massproduction
| end household market | ||
| Develop multiple laser large venue projectors with high brightness, education projectors, and business |
projectors with cost effectiveness to
Leading inthe industry
Large venue projector,
| meet different user needs. | business education projector and other |
fields.
Householdproducts
32,930.00 2,308.52 29,268.33
Massproduction
development of high-performance andhigh-cost-
| effectiveness products, and make breakthroughs in technology innovation, product form innovation, |
Leading inthe industry
Household smart miniprojectors
TVs.
advantageous performance such as highbrightness and eye-friendliness to meet
| various user requirements. |
Total - 97,088.00 11,161.88 78,823.91 - - - -
5. R&D staff
In RMB 0’000
| Basic information | ||
| Current period | Prior period | |
| Number of R&D staff (persons) | 432 | 465 |
| Proportion of R&D staff to total employees of the Company (%) | ||
29.09 31.33
| Total compensation of R&D staff | 7,717.83 | 8,664.32 |
| Average compensation of R&D staff | 17.87 | 18.63 |
| Education | ||
| Academic background | Number | Percentage (%) |
| Master and above | 119 | 27.55 |
| Bachelor and below | 313 | 72.45 |
| Total | 432 | 100 |
| Age structure | ||
| Age | Number | Percentage (%) |
| Below 30 (exclusive) | 132 | 30.56 |
| 30-40 (including 30, excluding 40) | 206 | 47.69 |
| 40 and above | 94 | 21.76 |
| Total | 432 | 100 |
6. Other information
□ Applicable√ N/A
III. Analysis of core competitiveness during the reporting period(I) Analysis of core competitiveness
√ Applicable□ N/A
1. High-quality R&D team to promote the innovation and development of the laser display industry
The Company stays innovation-driven, continues to increase R&D investment in forward-lookingtechnology arrangement and product technology development. As a high-tech enterprise, the Companywill continue to improve R&D capabilities as the main theme of the Company’s core competitiveness, andcontinue to improve the R&D system. The Company has established a leading R&D team in opticalmodules, mechanical designing, thermal simulation, software and hardware control and preparation of rareearth phosphor materials, developed and innovated the laser display technology for many years, thushaving accumulated profound R&D technical strength and got a deep understanding and judgment of theindustry’s cutting-edge technology and development trend.
We have set up a research institute and a research and development center to jointly coordinatetechnology and product planning, thus creating an efficient cycle from technology to product and then tobusiness. The research institute is committed to the research and verification of forward-lookingtechnologies and cultivation of solutions for innovative technologies, innovative products, and newapplication scenarios, thus ensuring forward allocation of R&D resources and forward-looking layout ofR&D technologies; the R&D center, combining the technology achievements of the research institute,coordinates the management of the whole process from new product development until mass productionand launch. Thanks to the close coordination between the research institute and the R&D center, we have
obviously improved the R&D efficiency while ensuring the rapid productization and commercializationof the latest R&D achievements and continuously promoting technological innovation and productupgrade.
2. Build a patent moat around the underlying technical architecture
The Company takes the underlying technical architecture patent of the original semiconductor laserlight source technology as the center, and builds a solid and interconnected intellectual property patentsystem, and it is difficult for competitors to fully imitate or directly bypass the underlying patentarrangement of the Company’s laser phosphor technology route. The Company actively responds to thenational “intellectual property power strategy” and increases the proportion of high-value patents. As ofJune 30, 2024, the Company had a total of 2,919 patents filed and granted throughout the world, including2,211 patents granted throughout the world, of which 1,148 ones were patents for invention. In terms oftechnology patents for automotive core components, we have 61 new patents granted and filed forautomotive optics technologies during the reporting period; as of June 30, 2024, we have a total of 245patents for automobile technologies granted and filed, an increase of 39.20% year on year.
In terms of technology leadership, the Company’s original semiconductor laser light sourcetechnology has become the mainstream technology in the current laser display field, and as the underlyingkey architecture technology, it has been used more than 679 times by leading companies in the sameindustry, such as Philips of the Netherlands, Osram of Germany, and Epson of Japan.
3. Relying on the technical advantages of core devices, all-round strategic arrangement for
application scenarios is made
Based on our advantages in core devices and technologies and the market development trend, we arecontinuously committed to the breakthrough and innovation of semiconductor laser light sourcetechnologies, expansion of application scenarios, and industrial promotion. We will insist on reasonableinvestment for the cinema and dedicated display scenarios to continuously create new growth points; wewill enhance investment in the automotive business to expand the business scope of the Company andmake full efforts to create the new growth source for the Company; meanwhile, we will implementinnovative application for core devices in new fields and new racetracks to expand to the AI, AR, robot,and other fields, thereby continuously improving the long-lasting value of core devices and expanding thespace of growth.(II) Events occurred during the reporting period that have a material effect on the Company’s core
competitiveness, analysis of the effect and countermeasures
□ Applicable√ N/A
IV. Discussion and analysis of business situations
During the reporting period, we persisted in the development strategy of “core technologies + coredevices + application scenarios” to accelerate business transformation of the Company. In the first half of2024, we achieved rapid development of the automotive optics business, achieving the operating incomeof RMB 241 million, including about RMB 200 million achieved in the 2
ndquarter of 2024, indicatingthat the business has entered the revenue contribution period.
During the reporting period, we took active measures to adjust the business structure andcontinuously improve the overall operating quality. Thanks to rapid volume increase of the automotivebusiness, we achieved the total operating income of RMB 1.081 billion, a slight increase year on year. Theautomotive business is a new business scenario expanded by the Company in 2022. Based on ourtechnology advantages and rapid implementation of strategic transformation, this business developedrapidly to support the Company’s performance. At present, we are taking active measures to delivernominated products for the automotive business while actively striving for new nominations, which isexpected to strongly support the growth of both incomes and profits for the Company in the future. Duringthe reporting period, we achieved the net profit attributable to the parent company of RMB 10.9096 million,primary due to the legal service fees for the arbitration case with the participating company GDC and theinvestment losses caused by the equity interests in GDC as other non-current financial assets. With thefactors above eliminated, the profitability of our main businesses remained stable.In the first half of 2024, we achieved obvious optimization in the operating quality - the sellingexpenses reduced by RMB 44.0768 million year on year, reducing the rate of selling expenses to 9.18%;Formovie recorded the loss of RMB 48.5262 million in the first half of 2024, where the losses werereduced by RMB 30.6906 million. The Company is firmly determined to solve the problems left over fromthe rapid development in early stages.At present, we are making breakthroughs to larger business racetracks, which is in line with thetechnology and industry chain layout for both the upstream and downstream of the Company. Thanks tothe years of efforts in the automobile racetrack, we will see more obvious structural changes and businessoptimization in the future.
1. Development of the Company’s main businesses during the reporting period is as follows:
1.1 The start of an intense delivery period for M9 leads to the income of RMB 241 million from the
automotive optics business
Given the development toward electric, intelligent, and Internet-connected vehicles, vehicles aretransforming from a merely transportation means to an intelligent and mobile life space. Therefore, the“experience of five senses” created by smart cockpits became a key point for major automobilemanufacturers to produce differentiated products. In the first half of 2024, we grasped the opportunity ofvehicle intelligentization development by continuously focusing on the logic of cooperation with majorcustomers to make full use of the technology competitiveness and nomination experience in automotiveoptics, and actively expanded the nomination cooperation with Chinese and foreign leading automobilemanufacturers.
By now, we have acquired 7 nominations from automobile manufacturers, including 2 AITO models(both of which are smart cockpit display products, where AITO M9 has achieved mass production), 1model of Beijing Electric Vehicle (where Stelato S9 has been implemented), 2 models of BYD (smartcockpit display, and headlight module), HASCO Vision (PGU display module of AR-HUD), andMercedes-Benz Smart #5 concept vehicle (colorful projection headlight). In March 2024, AITO M9, thefirst nominated automobile model of the Company entered the stage of intense mass production and
delivery, making the breakthrough from zero to one for the automotive optics business. As of thedisclosure date of this Report, according to the official information, over 120,000 M9 vehicles have beenbooked with down payment made.The increase in the shipment of AITO M9 vehicles manifested our success in building the firstbenchmark product of automobile-grade projection giant screens in the intelligent vehicle industry.Meanwhile, the increasing interests of automobile manufacturers in vehicle-mounted large projectionscreens provide a solid foundation for the Company to acquire more nominations from automobilemanufacturers. In May 2024, we received another Notice of Development Nomination from Seres, underwhich we are designated to supply smart cockpit display products for new AITO models. This nominationis expected to achieve mass production and delivery in 2025, which will cause positive effects on theoperating performance of the Company during the life cycle of such project. In August 2024, Stelato S9,another nominated model of the Company, was officially released and entered the delivery period. Thismodel, being equipped with our automobile-grade projection giant screens, realized the coverage ofautomobile-grade projection giant screens for automobile models at reduced prices for the first time.We pay attention to the combination of intelligentization and innovation for vehicle-mountedproducts. In the field of headlights, we released the world’s first ALL-in-ONE laser headlights at the 2024Beijing International Automotive Exhibition. Thanks to the light modulation and color temperatureadjustment achieved through the ALPD
?
semiconductor laser technology, this ALL-in-ONE laserheadlight integrated multiple functions into one small-size headlight module, including high beamassistance, adaptive driving beam (ADB), front fog light with adaptive color temperature, and colorfulDLP display, covering both directions of “accurate lighting + accurate display” while matching with moreapplication scenarios and functions, thus reducing the part costs and difficulty in supply chain managementfor customers; meanwhile, on the basis of vehicle security and differentiated experience, this laserheadlight facilitates the designing of automobile front face and significantly improves function upgrade.Given that the ALL-in-ONE laser headlight adopts the ALPD
?semiconductor laser light source, it hasadvantages of higher brightness, slower light attenuation, higher light-emitting efficiency, longer servicelife, better stability, etc. compared with conventional headlights. At present, we are making efforts topromote the ALL-in-ONE laser headlights to major automobile manufacturers and taking active measuresto achieve nomination cooperation around this product.
1.2 The cinema business maintains its position as a “cash cow” to continuously provide stable cash
flow for the CompanyIn the 1
st
quarter of 2024, the record-breaking Spring Festival box office and the continuous releaseof film watching demands driven by outstanding films led to an active film market, which achieved theoperating income of RMB 153 million for our cinema business. The film market was relatively normalunder the impact of film supply in the 2
nd
quarter of 2024. The performance of our cinema business in the
nd
quarter decreased on a quarter-on-quarter basis - achieving the operating income of RMB 114 million;however, the position of the cinema business as a “cash cow” of the Company remained unchanged andcontinuously provided stable cash flow for the Company.
During the reporting period, we made use of our profound accumulation and technical advantages inthe cinema industry to actively promote the ALPD
?laser light source projection solution and the VLEDLED Cinema projection solution, so as to improve the resilience of the cinema industry for high-qualitydevelopment.
1.3 Stable development of the dedicated display business to empower the high-quality development
of the culture industry with scientific and technology innovation
In light of the increasing integration of IP, technology, and cultural tourism and the emergence ofimmersive cultural tourism, we take the trend of refined, digitalized, and quality-oriented cultural tourismindustry by providing products and services that are more adaptive. During the reporting period, weachieved the operating income of RMB 201 million from the dedicated display business, essentiallysustaining the level in the last year; where the large venue business contributed the operating income ofRMB 124 million, up by nearly 24%.
In the first half of 2024, we made use of high-brightness large venue projectors to successfullyimplement the benchmark project of the global tour of “Encounter Sanxingdui - 12K Macro View ofNational Treasure”, which has become a representative work of China presented to the world; moreover,we made great efforts to implement multiple benchmark projects, including “Panda Planet” - the firstofficial immersive panda lighting exhibition, “Meeting Matsu” - a large immersive digital lighting show,so as to empower the culture industry for high-quality development with scientific and technologyinnovation.
2. Continuous R&D investments in cutting-edge fields for expansion to the field of AI and AR smart
glasses
During the reporting period, we continuously promoted the integration of laser display technologieswith new technologies to expand to artificial intelligence (AI), augmented reality (AR), and robot fields.We have released the world’s first AR optical module with over 10,000 PPI that we developedindependently. It is suitable for AR glasses to solve the pain point of light weight for daily wearing, therebymeeting the brightness requirements for multiple indoor and outdoor application scenarios when used inconsumer AR glasses or AI smart glasses. It is expected that smart glasses will not be limited to the existingAI speech interaction in the future, but will be integrated with AR display to create a mainstream trend.Being equipped with an optical solution and display module, smart glasses can achieve functions andexperience that are more immersive for users. By now, our R&D teams have achieved about 200 patentsgranted or filed in the AR and AI fields, including over 30 new patents related to AR and AI granted orfiled during the reporting period. In terms of the optical solution for light sources, we focus on the lightwave guide technology and have acquired the capabilities of independent designing and sample supply insmall batches; with respect to light generators, we have multiple technology routes for LCOS, DLP,Microled, laser scanning, etc. ready, all of which can be used for product development in response to thedemands of complete equipment manufacturers.
Since the smart glasses industry is in the stage of early development and user cultivation at present,we firmly continue our investments in small sizes, light weight, and lower costs to work with complete
equipment manufacturers in exploring innovative solutions for smart glasses and providing diversifiedsolutions for complete equipment manufacturers.
Significant changes in the operations of the Company during the reporting period, and the eventsthat have or are expected to have a significant impact on the operations of the Company during thereporting period
□ Applicable√ N/A
V. Risk factors
√ Applicable□ N/A
1. Cyclical fluctuation risks of the macro environment and the consumer electronics industry
At present, given that the global economy is experiencing cyclical fluctuation, the public are moreprudent in consumption, which slows down the demands on the consumer electronics market. As optionalconsumption products, smart projection products are facing more significant short-term fluctuation. Slowrecovery of demands in the consumer electronics industry in the future may still cause adverse effects tothe operating incomes and profits of our businesses related to household projection.
We will continue to enhance efforts for studying the macro-economic conditions, closely follow thedevelopment trend of the consumer electronics industry, conduct in-depth research into market demands,constantly enhance efforts for product R&D and technology investment, improve our R&D and productdesigning competence, assess risks rapidly, and take initiative to make relevant business adjustment, thusimproving the risk tolerance of the Company.
2. Financial risks
(1) Risk of impairment of accounts receivable
As of the end of the reporting period, the book value of our accounts receivable was RMB 322.4292million, accounting for 7.53% of our total assets. Our products are generally delivered after receiving thepayment therefor. We give certain credit period to some major and high-quality customers. In case of anymaterial adverse change in the business condition of our customers, we may be unable to recover certainaccounts receivable, which may have an adverse effect on our operating performance in the future.
The Company strengthens risk management and control, continuously tracks and controls customercredit, and strengthens the assessment of accounts receivable collection, and establishes an early warningsystem for overdue accounts receivable; for individual customers who maliciously default and have a longperiod of arrears, payment will be recovered through arbitration, litigation and other legal methods.
(2) Risk of impairment of inventories
As of the end of the reporting period, the book value of our inventories was RMB 660.4429 million,accounting for 15.42% of our assets. Our inventories mainly comprise raw materials and goods in stock.In the event of any significant change in the competition pattern of the industry, and material innovationin laser display technology and products, the recoverable amount of the inventories will be lower thantheir book value. The impairment of inventories will have a negative effect on our earnings. The Companywill pay close attention to the changes in supply and demand of the industrial chain, and promptly carryout production and marketing coordination according to the market and production conditions to reduce
product inventory risks.
(3) Risk of impairment of fixed assets
As of the end of the reporting period, the book value of our fixed asset was RMB 308.1233 million,accounting for 7.19% of our assets. Our fixed assets mainly consist of production equipment and cinemaprojector light sources for lease, where the cinema projector light sources account for 63.20%. If forcemajeure factors result in shutdown of cinemas, the cinema projector light sources may be idle, causingrisks of impairment of fixed assets and adverse effects to the operation of the Company. In order to copewith the above risks, the Company will pay close attention to the status of fixed assets, strengthencommunication with business departments, improve the efficiency of asset use, and reduce the risk ofimpairment. In the meanwhile, for assets that show signs of impairment, the Company will measure therecoverable amount and make an impairment provision for fixed assets based on the difference betweenthe recoverable amount and the book value.
(4) Risk of exchange rate movement
The Company’s procurement and sales involve a variety of foreign currencies, of which dollar is themain foreign currency. If the exchange rate of the relevant currency fluctuates, it will have a certain impacton the Company’s financial position. In this regard, in order to effectively avoid the risks of the foreignexchange market, prevent large fluctuations in the exchange rate from adversely affecting the Company’sbusiness performance, improve the efficiency of the use of foreign exchange funds, and reasonably reducefinancial costs, the Company carries out foreign exchange derivatives and other businesses in a timelymanner to reduce the risk of exchange rate fluctuations.
(5) Risk of changes in fair values
As of June 30, 2024, the subsidiary Appotronics HK held other non-current financial assets for theequity interests in GDC BVI with the fair value of RMB 99.44 million. In the event of great fluctuation inthe performance of GDC BVI or other material changes in its operating environment in the future, theequity assets held by the Company in GDC BVI may experience the risk of fair value changes.
3. Risks in failing to implement investment projects as expected
Under the impact of changes in the internal and external environment, there are risks that theCompany cannot implement investment projects as expected. Despite the efforts of the Company inenhancing the management over investment projects, accelerating the progress of investment projects, andconstantly monitoring the progress of such investment projects, in the actual implementation, theCompany still cannot avoid situation like delayed construction compared with the plan, or adjustment tothe implementation plan or solution in response to industry and market development. Upon the occurrenceof such circumstances, the Company will make decisions in accordance with relevant provisions andpromptly fulfill its obligations for information disclosure.
4. Risks in the arbitration with relevant parties of the participating company GDC BVI
At present, the Company is in the process of arbitration and counter arbitration with relevant partiesof GDC concerning the rights and interests of the parties. Given that the case is under trial at present, theimpact of such case on the profit or loss of the Company cannot be determined; the eventual actual impact
depends on the award of the arbitration tribunal or the negotiation between the parties. The Company hasengaged a professional attorney team and taken relevant legal measures to safeguard the legitimate rightsand interests of the Company and all shareholders in accordance with the law, and will promptly fulfillthe information disclosure obligations in accordance with relevant provisions.VI. Main business activities during the reporting periodRefer to “IV. Discussion and analysis of business situations” in this Section for details.(I) Analysis of main business1 Analysis of changes in the items of financial statements
In RMB
| Item | Current period | Prior period | % Change |
| Operating income | 1,081,409,500.21 | 1,073,249,037.75 | 0.76 |
| Operating costs | 745,633,299.59 | 668,659,467.49 | 11.51 |
| Selling expenses | 99,322,901.25 | 143,399,660.02 | -30.74 |
| Administrative expenses | 82,242,537.80 | 86,696,223.82 | -5.14 |
| Financial expenses | -5,958,395.29 | -17,021,406.56 | N/A |
| R&D expenses | 111,618,787.20 | 126,406,142.12 | -11.70 |
| Net cash flows from operating activities |
-79,146,670.23 114,738,832.13 -168.98
-1,573,699.63 -260,010,504.24 N/A
| Net cash flows from investment activities |
| Net cash flows from financing activities |
-96,516,389.72 110,646,737.55 -187.23Description of reasons for changes in the selling expenses: The selling expenses decreased by 30.74% yearon year, mainly due to the year-on-year decrease in the marketing expenses during the reporting period;Description of reasons for changes in the financial expenses: The financial expenses increased by RMB
11.0630 million year on year, primarily due to the year-on-year decrease in the foreign exchange gains
during the reporting period;Description of reasons for changes in the net cash flows from operating activities: The net cash flows fromoperating activities decreased by 168.98% year on year, which was primarily due to the increase in theoperating capital required in response to the growth in our automotive business, and the increase inrestricted monetary funds;Description of reasons for changes in the net cash flows from investment activities: The net cash flowsfrom investment activities increased by RMB 258 million year on year, primarily due to the year-on-yeardecrease in the purchase of wealth management products during the reporting period;Description of reasons for changes in the net cash flows from financing activities: The net cash flows fromfinancing activities decreased by 187.23% year on year, primarily due to the year-on-year decrease in thenew bank borrowings.2 Detailed description of major changes in the business types, profit composition or profit sourcesof the Company during the period
□ Applicable√ N/A
(II) Explanation about material change in profit due to non-main business
□ Applicable√ N/A
(III) Analysis of assets and liabilities
√ Applicable□ N/A
1. Status of assets and liabilities
In RMBProject
| Balance at the end of the | % of total assets at | Balance at the end of the | % of total assets at |
% Change Explanation
| period | the end of |
the period
| prior period | the end of |
the prior
Notesreceivable
4,167,483.04 0.10 8,951,308.71 0.21 -53.44
| period | ||
| Primarily due to the acceptance of |
not
that became due atthe
| beginning of the reporting period |
Accountsreceivable
322,429,228.84 7.53 180,290,007.90 4.27 78.84
receivables for theincreasing
| incomes from the |
automotive
Receivablesfinancing
65,953,036.07 1.54 11,387,400.00 0.27 479.18
| business in the current period |
| Primarily due to the increase in bank acceptance |
bills received in
Long-termequityinvestment
6,183,769.99 0.14144,726,776.43
| the current period | ||
3.43 -95.73
Company’ssignificant
| influence on the |
participating
BVI, which led to
| a change in the |
accountingmethod from long-
other non-current
| financial assets | ||
| Other non- |
currentfinancial
99,443,720.92 2.32 -
| assets |
- N/A Same as the aboveLong-termprepaidexpenses
3,881,364.11 0.09 6,318,145.33 0.15 -38.57
Other non-currentassets
18,308,105.15 0.43 29,348,748.27 0.70 -37.62
| Primarily due to the amortization made in the current period |
| Primarily due to the decrease in prepayments for |
long-
acquired
| in the current period |
Short-termborrowings
50,032,500.00 1.17 80,036,500.00 1.90 -37.49
short-
| term bank borrowings in the |
Notespayable
105,114,863.34 2.45 76,001,079.07 1.80 38.31
| current period |
| Primarily due to the increase in bank acceptance |
bills issued in the
Accountspayable
403,638,748.50 9.42 247,318,466.10 5.86 63.21
| current period |
| Primarily due to the increase in payables for procurement for the increasing procurement for the automotive business in the current period |
Employeebenefitspayable
31,408,872.42 0.73 66,874,234.47 1.58 -53.03
and wages as wellas bonuses for the
| preceding year in the current period |
Taxespayable
10,162,408.56 0.24 6,142,704.23 0.15 65.44
the increase in the
| provision for income tax payable made in the current period |
Otherpayables
90,355,287.99 2.11 54,142,509.17 1.28 66.88
the dividend forthe last year
| declared in the first half of the |
year which has not
Deferredincome
3,200,397.19 0.07 4,627,972.56 0.11 -30.85
| been paid |
| Primarily due to the conversion to |
other incomes in
Other informationNone
2. Overseas assets
√ Applicable□ N/A
(1) Size of assets
Including: overseas assets of RMB 315.2881 million, representing 7.32% of the total assets.
(2) Explanation about the high proportion of overseas assets
□ Applicable√ N/A
Other informationNone
3. Encumbrances on major assets as of the end of the reporting period
√ Applicable□ N/A
In RMB
the current periodItem
| Item | Closing balance of book value | Reason |
| Other monetary funds | 18,679,342.40 | Security deposits |
| Bank deposits | 81,733,534.26 | Term deposits and interests |
| Intangible assets | 264,503,999.76 | Loan mortgage |
| Bank deposits | 112,745,931.53 |
Refer to the note below
| Accounts receivable | 17,291,094.19 |
| Other receivables | 14,367,063.15 |
| Other current assets | 753,231.42 |
| Other non-current financial assets |
99,443,720.92
| Fixed assets | 2,243,955.29 | |
| Right-of-use assets | 1,116,734.85 | |
| Total | 612,878,607.77 |
Note:
1. Because GDC BVI requested the U.S. arbitration tribunal to intervene in the implementation of the
equity transaction plan released by the Company in April 2024, considering that this arbitration case wasunder trial and out of the respect for the arbitration trial, Appotronics HK constrained itself at the end ofthe reporting period and suspended the efforts for promoting conditions for the equity transaction. For thesake of prudence, the Company recorded all the assets of Appotronics HK as restricted assets. The partiesare in negotiation with each other at present, and the specific result of negotiation will be announcedseparately.
2. This arbitration case is still under trial at present. The self-constraint on the assets above does not
indicate the arbitration result of this case, while the final arbitration result is up to the decision of thearbitration tribunal.
4. Other information
□ Applicable√ N/A
(IV) Analysis of investmentsOverall analysis of external equity investments
√ Applicable□ N/A
In RMB
| Investment amount in the reporting period (in RMB) | Investment amount in the same period of the prior year (in RMB) | Range of change |
| 6,183,769.99 | 156,523,146.05 | -96.05% |
1. Material equity investments
□ Applicable√ N/A
2. Material non-equity investments
□ Applicable√ N/A
3. Financial assets at fair value
√ Applicable□ N/A
In RMBAssetcategory
Openingbalance
Gain or losson changes infair value for
the period
fair value
changesincluded in
| equity |
Impairment
of thecurrentperiod
Purchaseamount forthe current
period
Sale/redemption
for the current
period
Otherchanges
Closingbalance
| Equities | 12,880,000.00 | 10,062,500.00 | 22,942,500.00 | 0.00 | ||||
| Others | 519,592,819.38 | -4,900,000.00 | 56,565,636.07 | 99,443,720.92 | 675,602,176.37 | |||
| Total | 532,472,819.38 | 10,062,500.00 | -4,900,000.00 | 56,565,636.07 | 22,942,500.00 | 99,443,720.92 | 675,602,176.37 |
Description of securities investments
√ Applicable□ N/A
In RMBSecurity
type
Securi
tycode
Shortname
Initialinvestment
cost
Sourc
e offunds
Opening book
value
Gain or losson changesin fair value
for theperiod
Cumulative
fair value
changesincluded in
equity
haseamountforthecurre
| nt |
Sale for
thecurrentperiod
Gains orlosses from
disposal
Closi
ngbalance ofbookvalue
Accounti
ng item
| period | ||
| Domestic and |
overseas
835438
Gabrie
lle
14,000,000.00
Self-ownedcapital
12,880,000.00 10,062,500.00
22,942,500.00
9,281,230.90 0
| shares | Held-for- |
tradingfinancial
Total - - 14,000,000.00 - 12,880,000.00 10,062,500.00
| assets | ||
| 22,942,500.00 |
9,281,230.90 0 -Description of derivative investments
□ Applicable√ N/A
4. Description of investments in private equity investment funds
□ Applicable√ N/A
Other informationNone
(V) Sale of material assets and equities
□ Applicable√ N/A
(VI) Analysis of major investees
√ Applicable□ N/A
In RMB 0’000
| Company name | Main business | Registered capital | Shareholding ratio | Total assets | Net assets | Operating income | Net profit |
CINEAPPO
of cinemaprojectionservices
| and sales |
of
10,000.00 67.80% 72,147.33 52,269.41 24,241.44 5,189.17
ChongqingFormovie
| projectors |
| R&D and |
sale ofhouseholddisplay
7,017.54 39.19% 43,894.04
-31,329.14
23,879.28
-4,852.62
(VII) Structured entities controlled by the Company
□ Applicable√ N/A
VII. Other disclosures
□ Applicable√ N/A
Section IV Corporate Governance
I. General meetings of shareholders held
Session
Date ofmeeting
resolutionspublished on the
designated
| website |
Date ofdisclosureofresolutions
Resolutions
stextraordinarygeneral meetingof shareholdersin 2024
April 24,2024
www.sse.com.cn
April 25,2024
the Resolutions of the 1
st
Extraordinary General Meetingof Shareholders in 2024 (No.2024-
| 029) disclosed by the Company at the website of the Shanghai Stock Exchange (www.sse.com.cn) on April 25, 2024 for details. |
Annual general
meeting ofshareholders in
2023
June 3, 2024 www.sse.com.cn
June 4,2024
Shareholders in 2023 (No. 2024-047) disclosed by the Company
| at the website of the Shanghai Stock Exchange (www.sse.com.cn) on June 4, 2024 for details. |
Extraordinary general meeting of shareholders requested by the preferred shareholders withrestitution of voting right
□ Applicable√ N/A
Explanation about the general meetings of shareholders
√ Applicable□ N/A
During the reporting period, the Company held 1 extraordinary general meeting and 1 annual generalmeeting. After being certified by Beijing Zhong Lun (Shenzhen) Law Firm engaged by the Company, theconvening and holding procedures of general meetings of shareholders, the qualifications of the personsattending the meeting and conveners, the voting procedures and results comply with the relevantprovisions of the Companies Law, the Rules for General Meetings of Shareholders and other laws,regulations and normative documents as well as the provisions of the Articles of Association, and are legaland valid.All proposals submitted by the Board of Directors of the Company to the general meeting have beenreviewed and passed.II. Changes in directors, supervisors, senior officers and key technical staff
√ Applicable□ N/A
Name Position Change
WANG Lin Key technical staff Left the Company
Description of changes in directors, supervisors, senior officers and key technical staff
√ Applicable□ N/A
During the reporting period, Mr. WANG Lin resigned from the position as key technical staff of theCompany due to personal and family reasons. For details, refer to the Announcement on Change in theCompany’s Key Technical Staff (No. 2024-052) disclosed by the Company on Shanghai Stock Exchange(www.sse.com.cn) on June 29, 2024.Description of determination of key technical staff of the Company
√ Applicable□ N/A
The key technical staff of the Company were determined by taking into account the following factors
(1) play an important role in the Company’s R&D system or hold an important position in the Company’s
R&D department;
(2) lead the R&D of multiple core technologies of the Company during the period of service;
(3) obtain several patents in the capacity as inventor or designer, and make outstanding contributions to
the core technologies of the Company;
(4) have a deep professional knowledge background in the laser display industry, broad work
qualifications or project experience.Any candidate shall meet at least two of the above criteria at the same time, and then with the approval ofthe Chairman, may be determined as a key technician of the Company.III. Proposals for profit distribution or capitalization of the capital reserveProfit distribution proposal or proposal for capitalization of the capital reserve during the reportingperiod
No
| Whether to implement profit distribution or capitalization of the capital reserve |
| Number of bonus shares distributed per 10 shares |
-
-
| Cash dividends distributed per 10 shares (inclusive of tax) |
| Number of shares distributed out of the capital reserve |
-
| Description of the proposal for profit distribution or capitalization of the capital reserve |
| - |
IV. Share incentive plan, employee stock ownership plan or other employee incentive measures of
the Company and their effect(I) Equity incentives already disclosed in the interim announcements about which no new
information is available
√ Applicable□ N/A
Summary Reference
of Directors and the 23
rd
| meeting of the second Board of |
Supervisors on January 16, 2024, at which the Proposal on
| Invalidating Partial Granted but Not Vested Restricted | Refer to the relevant announcements disclosed by the Company at the website of the Shanghai Stock Exchange |
the First Vesting Period in the Reserved Grant under 2021Second Restricted Share Incentive Plan
| and other proposals were reviewed and passed. | (www.sse.com.cn) on January 17, 2024 |
for details.
Incentive Plan and the first vesting period reserved for the2022 Restricted Share Incentive Plan became available for
| trading on February 2, 2024. | Refer to the relevant announcements disclosed by the Company at the website of the Shanghai Stock Exchange (www.sse.com.cn) on January 31, 2024 for details. |
| The Company held the 33rd meeting of the second Board |
of Directors and the 25
thmeeting of the second Board ofSupervisors on May 30, 2024, at which the Proposal on
Shares and the Proposal on Meeting Vesting Criteria forthe Second Vesting Period in the Initial Grant under 2022Restricted Share Incentive Plan and other proposals were
| reviewed and passed. | Refer to the relevant announcements disclosed by the Company at the website of the Shanghai Stock Exchange (www.sse.com.cn) on June 1, 2024 for |
details.2,528,250 new shares for the second vesting period in theinitial
became available for trading on June 20, 2024.
| grant of the 2022 Restricted Share Incentive Plan | Refer to the relevant announcements disclosed by the Company at the website of the Shanghai Stock Exchange (www.sse.com.cn) on June 18, 2024 for details. |
(II) Incentives that have not been disclosed in any interim announcement or about which there is
new information availableShare incentives
□ Applicable√ N/A
Other information
□ Applicable√ N/A
Employee stock ownership plan
□ Applicable√ N/A
Other incentives
□ Applicable√ N/A
Section V Environment and Social Responsibilities
(1). Environment
Yes
| Whether mechanisms related to environmental protection have been established |
| Investment in environmental protection funds during the reporting period (in RMB 0’000) |
14.35
(I) Environmental protection information of the Company and its major subsidiaries that areidentified as major polluters by the environmental protection authority
□ Applicable√ N/A
(II) Environmental protection information of any company that is not identified as a major polluter
√ Applicable□ N/A
1. Administrative penalties imposed due to environmental issues
□ Applicable√ N/A
2. Disclosure of other environmental protection information with reference to that of major
polluters
√ Applicable□ N/A
The Company, as a global leading enterprise in the field of laser display technology, continuouslyengages in the research, development, production, and sales of laser display core devices and completeequipment based on the proprietary semiconductor laser light source technologies and architecture to applysemiconductor laser light source technologies to various fields, making it a low energy consumptionenterprise. During the reporting period, the Company had no production or operating entity included inthe list of major polluters identified by the environmental protection authority, did not conduct its routineproduction and operation in the heavy pollution industry identified by relevant national laws andregulations, and its production and operating activities had little impact on environment.During its production, the Company mainly emits waste gas, waste water and solid waste, which havebeen properly handled in accordance with the requirements of relevant authorities and industrial parks. Interms of waste gas, our production and operation generated few waste gases, mainly including tin-containing waste gas and non-methane hydrocarbons. The waste gases were treated by environmentalprotection treatment facilities such as UV photolysis, activated carbon adsorption devices, air purificationequipment, etc., and emitted in strict compliance with the level 2 environmental protection standard ofEmission Limits of Air Pollutants of Guangdong Province (DB44/27-2001); moreover, we engage aprofessional third-party inspection institution every year to monitor and assess the waste gas emitted. Ofthe waste water, domestic sewage is pre-processed according to standards, and discharged through themunicipal sewage pipelines to the regional water quality purification plant for in-depth processing. Theindustrial wastewater is uniformly recycled and treated by a qualified environmental protection company.
Furthermore, the Company actively optimizes the production process and reduces sewage discharge. Withrespect to solid waste, industrial solid waste is treated by a qualified environmental protection company,while recyclable waste is collected and sorted by the Company’s cleaning staff and then recovered by therelevant resource recovery unit.
3. Reason for failure to disclose other environmental protection information
□ Applicable√ N/A
(III) New information about the environmental protection information disclosed during the
reporting period
□ Applicable√ N/A
(IV) Relevant information conducive to protecting ecology, preventing pollution and fulfillingenvironmental responsibilities
√ Applicable□ N/A
The Company is committed to building a standardized management system for environment andsocial responsibilities that is leading in the industry. We have passed and maintained the certification ofISO 14001 Environment Management System since 2008. Meanwhile, we have obtained multipleinternational standard system certifications from third-party institutions, including the QC 080000Hazardous Substance Process Management (HSPM) System Certification, ISO 14064-1 Greenhouse GasVerification Certification, and ISO 50001 Energy Management System Certification, etc., whichdemonstrated our insistence on energy conservation, emission reduction, and energy efficiencyimprovement. All of our products are green products and have passed China environmental labelingproduct certification, RoHS, REACH and other certifications.During our operation, we took active measures to promote the building of a comprehensiveinformation system and make use of digitalization tools like online process approval, electronic notes, etc.to improve the efficiency of information communication and reduce the consumption of office suppliessuch as paper and printers and waste generation. We promote green office among employees by measuresincluding shutting down devices when leaving their posts, turning off the light for one hour at the lunchbreak, and taking the employee bus, etc., to improve the awareness of energy conservation andenvironmental protection. Meanwhile, we took strict measures to implement energy conservation andemission reduction, and are committed to implementing the operating idea of sustainable development andenvironmental protection through routine management covering water conservation, electricityconservation, etc.(V) Measures taken to reduce carbon emissions during the reporting period and their effect
Yes
| Whether carbon reduction measures are in place |
| Reduction of CO |
48,176 (current period)/537,418 (cumulative)
| equivalent emissions (in tons) | |
| Types of carbon reduction measures (e.g., using clean energy to generate electricity, using carbon reduction | As of the end of the reporting period, we have installed over |
30,800 sets of our ALPD
?
new
| products that contribute to carbon reduction, etc.) | of about 347 million hours. This saved electricity by about |
625 million kWh
over 0.5374 million tons in total.Specific description
√ Applicable□ N/A
Based on the statistics on multiple tests, compared with conventional xenon lamp light sources, theALPD
?laser projection light source can save electricity by 1.8 kWh per hour, while 1 kWh of electricitywill lead to 0.86 kg carbon dioxide.
As of the end of the reporting period, we have installed over 30,800 sets of our ALPD
?laserprojection solution throughout China, achieving the total light source operation of about 347 million hours.This saved electricity by about 625 million kWh and reduced carbon dioxide emission by over 0.5374million tons in total.
(2). Information on consolidation and expansion of the results of poverty alleviation, rural
revitalization and other specific work
□ Applicable√ N/A
Section VI Significant MattersI. Fulfillment of covenants(I) Covenants made by the actual controller, shareholders, affiliates and acquirer of the Company, the Company itself and other related parties during the
reporting period or the outstanding covenants made by them in the prior periods
√ Applicable□ N/A
Backgroundof covenant
Covenanttype
Covenantor
Covenantcontent
Date ofcovenant
there’s atime limit
for thefulfillment
of the
| covenant |
Period ofcovenant
thecovenanthas been
strictlyfulfilled
| on time |
Reason for
failure tofulfill thecovenant on
time (ifapplicable)
Actionplan iffailing tofulfill thecovenant
on time
Covenant
IPO
Restrictionon the saleof shares
| relating to | Covenant by the controlling shareholder regarding restriction on the sale of shares held by him, | |
voluntary lock-
shares, intention to hold anddispose of shares and other
| issues | Refer to the |
IPOProspectus
March 22,2019
Yes
stated below
Yes N/A N/A
| 36 months after completion of the IPO and the extended period | ||
| Covenant by the actual controller regarding restriction on the sale of shares held by him, |
voluntary lock-
shares, intention to hold and
| dispose of shares and other |
issues
IPOProspectus
March 22,2019
Yes
| Refer to the | 36 months after completion of the IPO and the extended period stated below, and 6 months |
after terminationof employment
Yes N/A N/A
voluntary lock-
| up of such |
shares, intention to hold and
| dispose of shares and other issues | Refer to the |
IPOProspectus
March 22,2019
Yes
stated below
Yes N/A N/A
| 36 months after completion of the IPO and the extended period | ||
| Covenant by HU Fei, as a member of key technical |
staff, regarding restriction on
him, voluntary lock-
| up of |
such shares, intention to hold
other issues
| and dispose of shares and | Refer to the |
IPOProspectus
March 22,2019
Yes
after termination
| of employment with the Company |
Yes N/A N/A
on the sale of shares held by
| them, intention to hold and dispose of shares and other issues | Refer to the |
IPOProspectus
March 22,2019
Yes
months from theIPO, and 4 years
| from the expiry of the lockup |
period
Yes N/A N/A
Others
| Issuer’s covenant regarding measures against fraud in IPO | Refer to the |
IPO
March 22,2019
No Permanent Yes N/A N/A
| Prospectus | |
| Controlling shareholder, actual controller and their concert parties’ covenant regarding measures against fraud in IPO | Refer to the |
IPOProspectus
March 22,2019
No Permanent Yes N/A N/A
senior officers’ covenant
| regarding measures against fraud in IPO | Refer to the |
IPOProspectus
March 22,2019
No Permanent Yes N/A N/A
| Issuer’s covenant regarding remedial measures for diluted earnings in the current period | Refer to the |
IPOProspectus
March22, 2019
No Permanent Yes N/A N/A
regarding remedial measures
| for diluted earnings in the current period | Refer to the |
IPOProspectus
March22, 2019
No Permanent Yes N/A N/A
officers’ covenant regarding
| remedial measures for diluted earnings in the current period | Refer to the |
IPOProspectus
March22, 2019
No Permanent Yes N/A N/A
profit distribution policy
| Issuer’s covenant regarding | Refer to the |
IPO
March22, 2019
No Permanent Yes N/A N/A
| Prospectus | |
| Issuer’s covenant regarding restraint measures and |
liability for compensation inthe event of failure to fulfill
| its covenants | Refer to the |
IPOProspectus
March22, 2019
No Permanent Yes N/A N/A
regarding restraint measures
| and liability for |
compensation in the event of
| failure to fulfill their covenants | Refer to the |
IPOProspectus
March22, 2019
No Permanent Yes N/A N/A
regarding restraint measures
| and liability for |
compensation in the event of
| failure to fulfill their covenants | Refer to the |
IPOProspectus
March 22,2019
No Term of office Yes N/A N/A
Resolvehorizontalcompetition
issues
| Controlling shareholder’s covenant on avoiding horizontal competition and regulating and reducing related-party transactions | Refer to the |
IPOProspectus
March 22,2019
No Permanent Yes N/A N/A
and reducing related-party
| transactions | Refer to the |
IPOProspectus
March 22,2019
No Permanent Yes N/A N/A
Covenantrelated to
shareincentives
Others
Covenant by the grantee ofshare incentives regardinginformation disclosuredocuments
RestrictedShare
| Incentive Plan |
(Draft)
October25, 2021
Yes
Execution
| of the Company | period of the equity incentive |
plan
Yes N/A N/A
2022RestrictedShare
| Incentive Plan |
(Draft)
May 25,2022
Yes
Execution
| of the Company | period of the equity incentive |
plan
Yes N/A N/A
Company’s covenant onrefraining from providingfinancial assistance
RestrictedShare
| Incentive Plan |
October25, 2021
Yes
Execution
plan
Yes N/A N/A
| (Draft) of the Company |
| Refer to the |
2022RestrictedShare
(Draft)
| of the Company |
May 25,2022
Yes
Execution
plan
Yes N/A N/A
II. Non-operating occupation of funds by the controlling shareholder and other affiliates during the reporting period
□ Applicable√ N/A
III. Guarantees in violation of applicable regulations
□ Applicable√ N/A
IV. Audit of semiannual report
□ Applicable√ N/A
V. Changes in matters involved by non-standard audit opinions in the previous annual report and treatment thereof
□ Applicable√ N/A
VI. Matters relating to bankruptcy and reorganization
□ Applicable√ N/A
VII. Material litigations and arbitrations
√ The Company was involved in material litigations or arbitrations during the reporting period
□ The Company was not involved in material litigations or arbitrations during the reporting period
(I) Litigations and arbitrations already disclosed in interim announcements about which no new information is available
√ Applicable□ N/A
Summary and type of case Reference
period of theequity incentiveI. 01-22-0001-2735 In March 2022, GDC Cayman and GDC BVI initiated the
arbitration against the Company and its wholly-owned subsidiary Appotronics HK inrespect of the dispute over the implementation of the Settlement Agreement. Later, theCompany raised counter-
| claims against GDC Cayman, GDC BVI, Mr. ZHANG |
Wanneng and his ma
Refer to the
| nagement team on the ground that GDC Cayman, GDC BVI, Mr. ZHANG Wanneng and his management team violated the provisions of the Shareholders’ | Announcement on Arbitration with GDC Cayman and |
GDC BVI (No. 2022-028) disclosed by the Company at the website ofthe Shanghai Stock Exchange (www.sse.com.cn) on April 2, 2022 fordetails.
(II) Litigations and arbitrations that have not been disclosed in interim announcements or about which there is new information available
√ Applicable□ N/A
In RMB 0’000
Agreement and Settlement Agreement.During the reporting period:
Plaintiff/claimant Defendant/respondent
Partyjointlyandseverallyliable
Type oflitigation/arbitration
Background
Amountclaimed
| During the reporting period: | ||
| Whether | ||
anyprovisionisrecognizedand the
Status
Result
andeffect
Enforcement ofjudgment/award
AppotronicsCorporation
Limited
Delta Electronics, Inc. -
| amount | ||
| Infringement on |
patent for invention
property
| litigation, the plaintiff held that the |
defendant, DeltaElectronics,Inc., initiated anintellectualpropertylitigationmaliciously
plaintiff, which
| infringed the |
1,000.00 No
Caseclosed
approvedtowithdrawthe case
-
Espedeo Holdings
Limited
Appotronics HongKong Limited
- Contract dispute
| rights and interests of the plaintiff. |
| HKIAC/A24154 arbitration case of contract dispute, in which the claimant held that the |
respondent
SalesAgreement,
| which resulted in economic losses to the claimant. | No less |
thanUSD
3.1671
million
No
Received
ofarbitration
| the notice | Trial not |
completed
-
Note: Espedeo Holdings Limited is a wholly-owned subsidiary of GDC BVI.
Other information
√ Applicable□ N/A
As of the end of the reporting period, 18 petitions for invalidation were submitted for our patent for invention No. ZL200880107739.5, and 12 petitions forinvalidation were submitted for our patent for invention No. ZL200810065225.X, of which 29 invalidation cases with the Company as the patentee have been decidedby the China National Intellectual Property Administration, with the patents sustained, or withdrawn by the petitioner, and only 1 case is in trial at the China NationalIntellectual Property Administration.There is 1 invalidation petition raised against other patents of the Company, which is under trial at the China National Intellectual Property Administration.
VIII. Penalties imposed on the listed company and its directors, supervisors, senior officers,
controlling shareholder, actual controller for suspected violation of laws and regulations andrectification of the relevant violations
□ Applicable√ N/A
IX. Credit standing of the Company and its controlling shareholder and actual controller duringthe reporting period
□ Applicable√ N/A
X. Material related-party transactions(I) Related-party transactions in connection with day-to-day operation
1. Matters already disclosed in the interim announcements about which no new information is
available
√ Applicable□ N/A
| Summary | Reference |
| The Company expects to engage in daily related-party transactions with China Film Equipment Co., Ltd. and its affiliates, Xiaomi |
Communications Co., Ltd. and its affiliates, and
Ltd. for the amount of RMB 322.7000 million in
| 2024. |
Refer to the
Daily Related-party Transactions in 2024 (No.2024-
| 036) disclosed by the Company at the website of the Shanghai Stock Exchange |
(www.sse.com.cn) on April 27, 2024.
2. Matters already disclosed in the interim announcements about which there is new information
available
□ Applicable√ N/A
3. Matters that have not been disclosed in any interim announcement
□ Applicable√ N/A
(II) Related-party transactions involving acquisition or sale of assets or equities
1. Matters already disclosed in the interim announcements about which no new information is
available
√ Applicable□ N/A
Summary Reference
participating company
| GDC BVI to the development of the Company, and further concentrate the Company’s resources on the development of growth businesses, the Company |
transferred the 51% equity interests it held in the wholly-owned subsidiary Appotronics HK to Long Pine Investment,Inc., an enterprise under the indirect control of the actual
Refer to the Announcement on the
| controller of the Company. After this transaction was completed, Appotronics HK was no longer included in the scope of the Company’s consolidated statements. | Transfer of Partial Equities in |
Subsidiary and Related-partyTransactions (No. 2024-021)
Exchange (www.sse.com.cn) on April13, 2024.
2. Matters already disclosed in the interim announcements about which there is new information
available
□ Applicable√ N/A
3. Matters that have not been disclosed in any interim announcement
□ Applicable√ N/A
4. Fulfillment of performance covenants (if any) during the reporting period
□ Applicable√ N/A
(III) Material related-party transactions involving joint external investments
1. Matters already disclosed in the interim announcements about which no new information is
available
□ Applicable√ N/A
2. Matters already disclosed in the interim announcements about which there is new information
available
□ Applicable√ N/A
3. Matters that have not been disclosed in any interim announcement
□ Applicable√ N/A
(IV) Accounts receivable from and payable to related parties
1. Matters already disclosed in the interim announcements about which no new information is
available
□ Applicable√ N/A
2. Matters already disclosed in the interim announcements about which there is new information
available
□ Applicable√ N/A
3. Matters that have not been disclosed in any interim announcement
□ Applicable√ N/A
(V) Financial business between the Company and its affiliated financial companies, or between the
Company’s controlled financial companies and affiliates
□ Applicable√ N/A
(VI) Other material related-party transactions
□ Applicable√ N/A
(VII) Others
□ Applicable√ N/A
XI. Material contracts and performance thereof(I) Trusteeship, contracting and lease
□ Applicable√ N/A
(II) Material guarantees that have been performed or have not yet been fully performed during the reporting period
√ Applicable□ N/A
In RMB 0’000External guarantees provided by the Company (excluding those provided for the subsidiaries)
Guarant
or
Relationship betweentheguarantorand thelistedcompany
Obligor
Guaranteedamount
Commencement dateofguarantee(signingdate ofagreement)
Inception
| date of |
guaran
tee
Expirydate ofguarantee
Type ofguarantee
Principa
l debt
Collater
al (ifany)
Whether the
obligationguaranteed
has beendischarged
r theobligatio
nguaranteed hasbecome
| overdue | Amount |
of the
obligati
onguarant
eed
Count
er-guara
ntee
Relate
d-partyguara
nteeor not
Relate
d-partyrelatio
n
| overdue | |||
| Total amount of guarantees provided during the reporting period (excluding those provided for the subsidiaries) | 0 | ||
| Balance of guarantees as of the end of the reporting period (A) (excluding those provided for the subsidiaries) | 0 | ||
Guarantees provided by the Company or its subsidiaries for the subsidiaries of the Company
Guarantor
Relationshipbetween the
guarantor
and the
listedcompany
Obligor
Relationship betweenthe obligor
and thelistedcompany
Guaranteed amount
Commencement date ofguarantee(signing dateof agreement)
Inception
date ofguarantee
Expiry date of
guarantee
Typeofguaran
tee
Whet
hertheobligationguaranteed
hasbeendischarged
hertheobligationguaranteed hasbeco
meover
| due |
Amount of
theoverd
ueobligationguaranteed
Whet
herthere’
s acount
erguara
ntee
nicsCorporation
| Limited |
Headquarters
CINEAPP
CinemaTechnolog
Controlledsubsidiary
4,000.00 2023/10/26 2023/8/25
| O Laser | Three years from the |
expiry of the performance
Jointandseveralliability
No No - No
AppotronicsCorporationLimited
Headquarters
| y (Beijing) Co., Ltd. |
| CINEAPPO Laser |
CinemaTechnolog
Controlledsubsidiary
5,000.00 2023/10/16 2023/10/16
| y (Beijing) Co., Ltd. | The guarantee period is |
three years from the date
determination period.
Jointandseveralliability
No No - No
AppotronicsCorporationLimited
Headquarters
CINEAPP
| of termination of claims | ||
| O Laser |
CinemaTechnolog
Co., Ltd.
Controlledsubsidiary
10,000.00 2023/11/3 2023/11/3
| y (Beijing) | The period of guarantee |
by the guarantor is threeyears from the expiry of
the period of guarantee
| under each master contract shall be calculated separately. |
Jointandseveralliability
No No - No
AppotronicsCorporationLimited
Headquarters
(Chongqing)InnovativeTechnolog
| y Co., Ltd. |
Controlledsubsidiary
20,000.00 2021/9/10 2021/9/10 2028/4/25
Jointandseveralliability
No No - NoAppotronicsCorporationLimited
Headquarters
(Chongqing)InnovativeTechnolog
| y Co., Ltd. |
Controlledsubsidiary
9,000.00 2021/12/6 2021/12/6 2026/12/30
Jointandseveralliability
No No - NoAppotronicsCorporationLimited
Headquarters
(Chongqing)InnovativeTechnolog
| y Co., Ltd. |
Controlledsubsidiary
12,000.00 2024/3/29 2023/3/24
Three years after the due
under the specific facilityin the master contract.
Jointandseveralliability
No No - No
AppotronicsCorporationLimited
Headquarters
Formovie(Chongqing)InnovativeTechnology Co., Ltd.
Controlledsubsidiary
5,000.00 2024/3/26 2021/12/21
date (
| which will not be |
adjusted due to
and payable among all the
| financings drawn and |
used during the period ofoccurrence of guaranteed
agreement or/and inter-
| bank borrowing. |
Jointandseveralliability
No No - No
6,729.84
| Total amount of guarantees provided for the subsidiaries during the reporting period |
| Balance of guarantees provided for the subsidiaries as of the end of the reporting period (B) |
33,771.13Total amount of guarantees provided by the Company (including those provided for the subsidiaries)Total amount guaranteed (A+B) 33,771.13
12.28
| Proportion of total amount guaranteed to the net assets of the Company (%) | |
| Including: | |
| Total amount of guarantees provided for the shareholders, actual controller and their affiliates (C) | |
32,641.30
| Total amount of debt guarantees directly or indirectly provided for the obligors whose equity-debt ratio exceeds 70% (D) |
| Total amount guaranteed in excess of 50% of the net assets of the Company (E) |
| Total amount guaranteed (C+D+E) | 32,641.30 |
| Explanation about outstanding guarantees for which the Company may assume joint and several liability |
N/A
| Explanation about guarantees |
N/A
(III) Other material contracts
□ Applicable√ N/A
XII. Use of offering proceeds
√ Applicable□ N/A
(I) Overall use of offering proceeds
√ Applicable□ N/A
In RMB 0’000
Source
ofofferingproceeds
Date ofreceivingofferingproceeds
Totalofferingproceeds
Netofferingproceeds
afterdeductionof offering
expenses
(1)
Totalofferingproceedscommitted
in theprospectusor offering
circular
(2)
Totalexcessofferingproceeds
(3) = (1)
- (2)
Cumulative
totalofferingproceedsused as ofthe end of
thereportingperiod (4)
Including:
Cumulativetotal excess
offeringproceedsused as ofthe end of
thereportingperiod (5)
Cumulativeinvestmentprogress of
offeringproceeds as
of the end
of thereportingperiod (%)
(6)=(4)/(1)
investmentprogress of
excessofferingproceedsused as ofthe end of
thereportingperiod (%)
| (7)=(5)/(3) |
Amountinvested
in thisyear (8)
Ratio of
theamountinvested
in thisyear (%)
(9)=(8)/(1)
Totalofferingproceedswith thepurposechanged
public
| offering |
July 16,
2019
119,000.00 106,247.08 100,000.00 6,247.08 97,453.49 7,013.54 91.72 112.27 7,637.38 7.19 NoneTotal - 119,000.00 106,247.08 100,000.00 6,247.08 97,453.49 7,013.54 - - 7,637.38 - -
(II) Breakdown of investment projects
√ Applicable□ N/A
1. Breakdown use of offering proceeds
√ Applicable□ N/A
In RMB 0’000Source of
offeringproceeds
Project Nature
it is aninvestmen
| t project | Whet |
herchan
| ge of | Total |
investmentamount
| planned | Amount |
invested
in this
| year | Cumulati |
ve totaloffering
| proceeds | Cumula |
tiveinvestm
| ent | Date |
for theprojec
| t to | Com |
pleted or
| not | Whet |
herthe
| invest | Specifi |
creason
| for | Bene |
fitsreali
| zed | Benefits or |
R&D
| results | Materia |
lchanges
Balance
prospectu
s orofferingcircular
| in the | inves |
tmen
t isinvol
ved
offeringproceeds(1)
| with | used as of |
the end of
thereportingperiod (2)
as of the
end of
thereporting period(%)
(3) =
(2)/(1)
| progress | reach |
theworkingcondition foritsintended use[Note
| 1] | ment |
progr
essmeets
theprogr
essplann
ed
toachievethe
| plan of |
investmentprogress
thecurrentyear
| in | achieved by |
theproject
feasibility; if any,describethespecificreasons
Initialpublicoffering
| project | ||
| R&D and |
industriali
newgeneration
| of laser |
display
Productionandconstruction
Yes No 31,300.00 - 27,931.11 89.24
Decem
ber2022
Yes Yes N/A
N/A[Note
2]
N/A No
5,161.67[Note 3]
Initialpublicoffering
| products |
| R&D center at the head office of |
Appotroni
R&D Yes No 28,400.00 2,008.62 24,226.92 85.31
March2025
No Yes N/A N/A N/A No N/A
Initialpublicoffering
| cs [Note 4] |
| Information system |
upgradeand
Operationmanagement
Yes No 7,000.00 552.95 4,742.42 67.75
March
2025
No Yes N/A N/A N/A No N/A
Initialpublicoffering
Supplementaryworkingcapital[Note 5]
| building | |
| Supple |
menting theworking
Yes No 33,300.00 - 33,539.50 100.72 N/A Yes Yes N/A N/A N/A No N/A
repayment of
| loans | ||
| Initial |
public
| offering | Share |
repurchase
Others No No
7,075.81[Note 7]
5,075.81 7,013.54 99.12 N/A No Yes N/A N/A N/A No N/A
| [Note 6] | ||||||||||||||||
| Total | - | - | - | - | 107,075.81 | 7,637.38 | 97,453.49 | - | - | - | - | - | - | - | - | 5,161.67 |
[Note 1] On March 18, 2022, the Company held the 9
th
meeting of the second Board of Directors and the 8
th
meeting of the second Board of Supervisors, approvingthe Proposal on Postponing Some Investment Projects through deliberation, and agreeing the Company to adjust the time for some investment projects to reach theworking condition for its intended use. On December 8, 2023, the Company held the 24
th meeting of the second Board of Directors and the 22
thmeeting of the secondBoard of Supervisors, approving the Proposal on Postponing Some Investment Projects through deliberation, and agreeing the Company to postpone the time forsome investment projects to reach the working condition for its intended use. The time of reaching the working condition for its intended use of the investment projects“R&D center at the head office of Appotronics” and “information system upgrade and building” were adjusted to March 2025;[Note 2] The expected benefit of the “R&D and industrialization of new generation of laser display products” is an additional capacity of 135,000 sets per year. Afterthis project was implemented, the Company has achieved the target production capability; the Company’s actual output varies with the market demands. Given thefactors such as tense supply chain and changes in macro conditions both in and outside of China, the Company’s actual output did not achieve the target additionaloutput;[Note 3] On April 26, 2023, the Company held the 19
th meeting of the second Board of Directors and the 18
thmeeting of the second Board of Supervisors respectively,which deliberated and approved the Proposal on the Completion of Part of the Company’s Investment Projects and Permanent Replenishment of Liquidity with theSurplus Raised Funds, and agreed that the Company would close the investment project “R&D and industrialization of new generation of laser display products”, anda total of RMB 51.6167 million saved (as of December 31, 2022) shall be used for permanent replenishment of the working capital. As at the date of remittance, theactual balance in the special account was RMB 52.0022 million (including the interest income and wealth management income, net of handling fees). This specialaccount (Huaxia Bank Co., Ltd. Shenzhen Houhai Sub-branch, account number: 10869000000305964) has been deregistered on May 17, 2023, and the funds havebeen transferred to the general account of the Company;[Note 4] The Company held the 19
th meeting of the second Board of Directors and the 18
thmeeting of the second Board of Supervisors on April 26, 2023 and theannual general meeting for 2022 on May 19, 2023, respectively, approving the Proposal on Adjusting Internal Investment Structure of Some Investment Projectsthrough deliberation, and agreeing the Company to adjust the internal investment structure of the investment project “R&D center at the head office of Appotronics”,and to decrease the “equipment purchase expenses” by RMB 65.0000 million and increase the “R&D expenditures” by RMB 65.0000 million;[Note 5] During the project, the total wealth management returns of RMB 2.3950 million were realized from the special account of supplementary working capital,which have been put into use in the project (supplementary working capital). As of the date of approval for issue of this Report, the special account (Huaxia Bank Co.,Ltd. Shenzhen Houhai Sub-branch, account number: 10869000000251463) has been deregistered. The interest of RMB 1,418.11 incurred after the project has beenpaid to the basic account of the Company to be used as supplementary working capital;[Note 6] The Company held the 9
th meeting of the second Board of Directors and the 1
st
extraordinary general meeting of shareholders for 2022 respectively on March18, 2022 and March 29, 2022, approving the Proposal on Repurchase of Shares of the Company through Call Auction through deliberation, and agreeing the Companyto use the excess offering funds to repurchase some RMB-denominated ordinary shares (A shares) issued by it through call auction;
The Company held the 27
thmeeting of the second Board of Directors on January 31, 2024, approving the Proposal on Repurchase of Shares of the Company throughCall Auction through deliberation, and agreeing the Company to use the excess offering funds and own funds to repurchase some RMB-denominated ordinary shares(A shares) issued by it through call auction;and the Company held the 31
stmeeting of the second Board of Directors on April 17, 2024, approving the Proposal on 2024 Second Repurchase of Shares of theCompany through Call Auction through deliberation, and agreeing the Company to use the excess offering funds and own funds to repurchase some RMB-denominatedordinary shares (A shares) issued by it through call auction.[Note 7] There was a difference between the committed investment by the end of the period and the total offering proceeds committed, which was primarily due tothe repurchase made with the incomes from wealth management of excess offering proceeds and interests on deposits.[Note 8] Subject to the restriction of relevant management measures and banks’ requirements in operation, the Company paid expenses including salaries, socialinsurance premiums, and contributions for housing funds for investment projects with non-offering proceeds, and then repaid such expenses by transferring funds ofthe corresponding amount from the special account of offering proceeds to the general account of the Company;[Note 9] Some sum values do not correspond to the aggregate of breakdown values in the table above due to rounding.
2. Breakdown use of excess offering proceeds
√ Applicable□ N/A
In RMB 0’000Purpose Nature
Total excess offeringproceeds planned for
investment (1)
Cumulative total offering proceeds used asof the end of the reporting period (2)
of the end of the reporting period
(%)
| (3) = (2)/(1) |
Remark
Others 2,000.00 1937.73 96.89 Repurchase in 2022
| Share repurchase |
| Share repurchase |
Others 4,121.12 4,121.12 100.00 Repurchase in 2024
Others 954.69 954.69 100.00
| Share repurchase | Second repurchase in 2024 |
Total - 7,075.81 7,013.54 - -
(III) Change in or termination of investment projects during the reporting period
□ Applicable√ N/A
(IV) Other information about the use of offering proceeds during the reporting period
1. Early investment and replacement of projects invested with offering proceeds
□ Applicable√ N/A
2. Supplement the working capital with idle offering proceeds
□ Applicable√ N/A
3. Cash management of idle offering proceeds, and investment in relevant products
√ Applicable□ N/A
In RMB 0’000
Date ofdeliberation by theBoard of Directors
Effectiveamountdeliberated
for cashmanagement
of offering
proceeds
Start date End date
Balance of
cashmanagementat the end of
the period
thegreatestbalanceexceeds
theauthorized
amountduring the
| period | |||||
| June 25, 2023 | 24,900.00 | June 25, 2023 | June 25, 2024 |
8,300.00
| No | |||||
| May 30, 2024 | 11,600.00 | May 30, 2024 | May 30, 2025 | No |
Other information
The Proposal on Cash Management of Temporarily Idle Offering Proceeds was approved throughdeliberation at the 20
th meeting of the second Board of Directors and the 19
th
meeting of the second Boardof Supervisors held by the Company on June 25, 2023. It was approved that, without affecting the normalimplementation of the investment plan for offering proceeds, a maximum of RMB 249.00 milliontemporarily idle offering proceeds may be put under cash management to purchase investment productsfeaturing high security, good liquidity, and guarantee of the principal (including but not limited tostructural deposits, agreement deposits, notice deposits, term deposits, large-amount deposit note, andreturn notes), where the total amount for purchasing return notes shall be no more than RMB 100 million,which shall be effective within 12 months from the review and approval.
The Proposal on Cash Management of Temporarily Idle Offering Proceeds was approved throughdeliberation at the 33
th
meeting of the second Board of Directors and the 25
th
meeting of the second Boardof Supervisors held by the Company on May 30, 2024. It was approved that, without affecting the normalimplementation of the investment plan for offering proceeds, a maximum of RMB 116.00 million(inclusive) temporarily idle offering proceeds may be put under cash management to purchase investmentproducts featuring high security, good liquidity, and guarantee of the principal (including but not limitedto structural deposits, notice deposits, term deposits, large-amount deposit note, and return notes), wherethe total amount for purchasing return notes shall be no more than RMB 50.00 million (inclusive), whichshall be effective within 12 months from the review and approval.
4. Others
√ Applicable□ N/A
1. The Company held the 27
thmeeting of the second Board of Directors on January 31, 2024,approving the Proposal on Repurchase of Shares of the Company through Call Auction through
deliberation, and agreeing the Company to use the excess offering proceeds and own funds to repurchasesome RMB-denominated ordinary shares (A shares) issued by it through call auction via the stock tradingsystem of the Shanghai Stock Exchange, with the repurchase price not exceeding RMB 27.00 per share(inclusive), the repurchase funds totaling no more than RMB 60.00 million (inclusive) and no less thanRMB 30.00 million (inclusive), and the repurchase period being six months from the date on which thisshare repurchase plan is approved by the Board of Directors.
As of April 15, 2024, the Company repurchased 3,351,740 shares in the aggregate through callauction in 2024 and paid RMB 59,981,548.54 (excluding stamp duty, commissions and other transactionfees). The repurchase of shares has been completed.
2. The Company held the 31
stmeeting of the second Board of Directors on April 17, 2024, approvingthe Proposal on 2024 Second Repurchase of Shares of the Company through Call Auction throughdeliberation, and agreeing the Company to use the excess offering proceeds and own funds to repurchasesome RMB-denominated ordinary shares (A shares) issued by it through call auction via the stock tradingsystem of the Shanghai Stock Exchange, with the repurchase price not exceeding RMB 27.00 per share(inclusive), the repurchase funds totaling no more than RMB 30.00 million (inclusive) and no less thanRMB 20.00 million (inclusive), and the repurchase period being no more than six months from the dateon which this share repurchase plan is approved by the Board of Directors.
As of June 30, 2024, the Company repurchased 1,590,743 shares in the aggregate through call auctionin 2024 at the second phase and paid RMB 29,532,119.79 (excluding stamp duty, commissions and othertransaction fees).
XIII. Other significant matters
□ Applicable√ N/A
Section VII Changes in Shares and Shareholders
I. Changes in shares(I) Statement of changes in shares
1. Statement of changes in shares
Unit: Share
| Before the change | +/- | After the change | |
Quantity
Percentage
(%)
of new
| shares |
Bonusshares
of capital
| reserve |
Others Sub-total Quantity
Percentage(%)
| I. Non-tradable shares | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 1. Shares held by the State | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. Shares held by State-owned corporations |
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
| 3. Shares held by other domestic investors |
| Including: Shares held by |
domestic non-state-owned
0 0 0 0 0 0 0 0 0
| corporations |
| Shares held by domestic natural persons |
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
| 4. Shares held by foreign investors |
| Including: Shares held by foreign corporations |
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
| Shares held by foreign natural persons | |||||||||
| II. Tradable shares | 462,211,338 | 100 | 0 | 0 | 0 | 2,922,290 | 2,922,290 | 465,133,628 | 100 |
| 1. RMB-denominated ordinary shares |
462,211,338 100 0 0 0 2,922,290 2,922,290 465,133,628 100
denominated shares listed
| domestically |
0 0 0 0 0 0 0 0 0
denominated shares listed
| overseas |
0 0 0 0 0 0 0 0 0
| 4. Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| III. Total shares | 462,211,338 | 100 | 0 | 0 | 0 | 2,922,290 | 2,922,290 | 465,133,628 | 100 |
2. Explanation about changes in shares
√ Applicable□ N/A
(1) On February 2, 2024, 394,040 new shares reserved by the Company for the first vesting period under the 2021 Second Restricted Share Incentive Plan and
the first vesting period reserved for the 2022 Restricted Share Incentive Plan became available for trading, increasing the Company’s shares from 462,211,338 sharesto 462,605,378 shares;
(2) On June 20, 2024, 2,528,250 new shares for the second vesting period in the initial grant under the 2022 Restricted Share Incentive Plan became available for
trading, increasing the Company’s shares from 462,605,378 shares to 465,133,628 shares.
3. Effect of the changes in shares on the earnings per share, net assets per share and other financial indicators for the duration after the reporting period
to the disclosure date of the semiannual report (if any)
□ Applicable√ N/A
4. Other information disclosed as the Company deems necessary or required by the securities regulatory authority
□ Applicable√ N/A
(II) Changes in non-tradable shares
□ Applicable√ N/A
II. Shareholders(I) Total number of shareholders:
16,858
| Total number of ordinary shareholders as of the end of the reporting period (accounts) |
| Total number of shareholders of preferred shares |
whose voting right has been restituted as of the end of
| the reporting period (accounts) |
| Total number of shareholders holding shares with |
special voting rights as of the end of the reporting
Number of holders of depository receipts
□ Applicable√ N/A
(II) Shares held by top 10 shareholders and top 10 holders of tradable shares as of the end of the
reporting periodShares held by top 10 shareholders through both the general securities account and the customercredit transaction guarantee securities account of a securities company
□ Applicable√ N/A
Unit: ShareShares held by top 10 shareholders (excluding shares lent out under the refinancing arrangement)
Shareholder(Full name)
Changeduring
thereportingperiod
Balance ofsharesheld as ofthe end of
thereporting
period
Percentage
(%)
Numberof non-tradable
shares
held
period (accounts)
Number of
non-tradableshares held,includingthe shares
lent outunder therefinancing
| arrangement |
Shares pledged,marked, orfrozen
Shareholder
natureSharestatus
Quantity
AppotronicsHoldings
| Limited |
0 79,762,679 17.15 0 0 None 0
non-state-
owned
| corporation | ||
| Shenzhen |
Yuanshi LaserIndustrialInvestmentConsultingPartnership
0 24,139,500 5.19 0 0 None 0
Domesticnon-state-
ownedcorporation
| (LP) |
| Nantong Strait |
AppotronicsInvestmentPartnership
0 18,381,208 3.95 0 0 None 0
Domesticnon-state-
ownedcorporation
| (LP) |
| Shenzhen |
AppotronicsDayeInvestmentPartnership
0 17,056,167 3.67 0 0 None 0
Domesticnon-state-
ownedcorporation
AppotronicsHongyeInvestmentPartnership
| (LP) |
0 13,601,344 2.92 0 0 None 0
Domesticnon-state-ownedcorporation
AppotronicsChengyeConsultingPartnership
| (LP) |
0 10,394,846 2.23 0 0 None 0
Domesticnon-state-ownedcorporation
Co., Ltd. -Stable IncomeBondSecuritiesInvestment
| Fund of E Fund |
-92,255 9,945,837 2.14 0 0 None 0 Others
JinleijingInvestmentLimitedPartnership
| (LP) |
0 9,892,706 2.13 0 0 None 0
Domesticnon-state-ownedcorporationLUO Xiaobin
-1,601,000
4,403,004 0.95 0 0 None 0
natural
| person |
LONGZaiping
-15,200 4,135,800 0.89 0 0 None 0
natural
| person |
Shares held by top 10 holders of tradable shares (excluding shares lent out under the refinancing arrangement)
Shareholder
| Number of tradable shares held | Type and number of shares | |
| Type | Quantity | |
Shenzhen Appotronics Holdings Limited 79,762,679
79,762,679
| RMB-denominated ordinary share | ||
| Shenzhen Yuanshi Laser Industrial Investment Consulting Partnership (LP) |
24,139,500
24,139,500
| RMB-denominated ordinary share | ||
| Nantong Strait Appotronics Investment Partnership (LP) |
18,381,208
18,381,208
| RMB-denominated ordinary share | ||
| Shenzhen Appotronics Daye Investment Partnership (LP) |
17,056,167
17,056,167
| RMB-denominated ordinary share | ||
| Shenzhen Appotronics Hongye Investment Partnership (LP) |
13,601,344
13,601,344
| RMB-denominated ordinary share | ||
| Shenzhen Appotronics Chengye Consulting Partnership (LP) |
10,394,846
10,394,846
| RMB-denominated ordinary share | ||
| Bank of China Co., Ltd. - Stable Income |
Bond Securities Investment Fund of E
9,945,837
RMB-denominated
ordinary share
9,945,837
| Fund |
| Shenzhen Jinleijing Investment Limited Partnership (LP) |
9,892,706
9,892,706LUO Xiaobin 4,403,004
| RMB-denominated ordinary share |
| RMB-denominated ordinary share |
4,403,004LONG Zaiping 4,135,800
4,135,800
shareholders among top 10
| shareholders | As of the end of the reporting period, the Company has repurchased 5,842,483 shares, accounting for 1.26% of the Company’s total share capital of 465,133,628 shares. |
| Description of entrusting voting right, |
entrusted voting right and waiver of
N/A
Affiliates or concert parties among theshareholders stated above
| voting right of the shareholders above | |
| 1. As of June 30, 2024, the following entities in top 10 shareholders of the Company constituted persons acting in concert: Shenzhen Appotronics |
Holdings Limited, Shenzhen Yuanshi Laser Industrial Investment ConsultingPartnership (LP), Shenzhen Appotronics Daye Investment Partnership (LP),
Chengye Consulting Partnership (LP);
2. Except for the above, we are not aware whether there are affiliates or
concert parties as defined in the Administrative Measures for the Acquisition
| of the Listed Companies among other shareholders. | |
| Holders of preferred shares whose |
voting rights have been restituted and
N/A
Lending of shares in refinancing businesses by shareholders holding over 5% shares, top 10shareholders, and top 10 holders of tradable shares
□ Applicable√ N/A
Changes from the prior period due to lending/payback in refinancing businesses by top 10shareholders and top 10 holders of tradable shares
□ Applicable√ N/A
Number of non-tradable shares held by top 10 holders and lock-up period
□ Applicable√ N/A
Statement of top 10 holders of domestic depository receipts as of the end of the reporting period
□ Applicable√ N/A
Participation in the lending of shares in refinancing businesses by holders holding over 5%depository receipts, top 10 holders of depository receipts, and top 10 holders of tradable shares
□ Applicable√ N/A
Changes from the prior period due to lending/payback in refinancing businesses by top 10 holdersof depository receipts and top 10 holders of tradable depository receipts
□ Applicable√ N/A
Number of non-tradable depository receipts held by top 10 holders and lock-up period
□ Applicable√ N/A
(III) Statement of top 10 shareholders by number of votes held as of the end of the reporting period
□ Applicable√ N/A
(IV) Strategic investors or general corporations that become top 10 shareholders as a result of
allotment of new shares/depository receipts
□ Applicable√ N/A
III. Directors, supervisors, senior officers and key technical staff(I) Changes in shareholding of current directors, supervisors, senior officers and key technicalstaff and the former directors, supervisors, senior officers and key technical staff who left theCompany during the reporting period
√ Applicable□ N/A
Unit: ShareName Title
Openingshareholding
Closingshareholding
shareholdingduring thereporting
| period |
Cause ofchange
| WANG Yingxia | Director, Financial Director |
128,124 178,124 50,000 Share incentiveHU Fei
265,316 317,816 52,500 Share incentiveYU Xin
| Key technical staff |
| Key technical staff |
290,752 390,752 100,000 Share incentive
| WANG Zeqin | Key technical staff |
229,752 282,252 52,500 Share incentive
| GUO Zuqiang | Key technical staff |
215,052 267,552 52,500 Share incentiveWANG Lin
Key technicalstaff (retired)
240,752 294,252 53,500
incentive,purchased onthe secondary
| market |
Other information
□ Applicable√ N/A
(II) Share incentives granted to directors, supervisors, senior officers and key technical staff during
the reporting period
1.Share options
□ Applicable√ N/A
2.Type I restricted shares
□ Applicable√ N/A
3.Type II restricted shares
√ Applicable□ N/A
Unit: Share
Name Title
Number ofrestricted
sharesalreadygranted as at
thebeginning ofthe reporting
period
Number ofrestricted
sharesgrantedduring thereporting
period
Number
ofrestricted shares
thatcould be
vestedin thereporting period
ofrestricted shares
thathavebeenvestedin thereportin
| g period |
Number ofrestrictedshares already
granted as ofthe end of the
reporting
periodLI Yi
3,500,000 - 0 0 3,500,000
| Chairman & General Manager | |
| WANG Yingxia | Director, Financial Director |
470,560 - 50,000 50,000 470,560
Board Secretary 432,750 - 75,000 0 432,750
| HU Fei | Key technical staff | 540,000 | - | 52,500 | 52,500 | 540,000 |
| YU Xin | Key technical staff | 1,070,000 | - | 100,000 | 100,000 | 1,070,000 |
| WANG Zeqin |
Key technical staff 632,000 - 52,500 52,500 632,000
Key technical staff 626,000 - 52,500 52,500 626,000
| GUO Zuqiang | ||||||
| Total | - | 72,713,10 | - | 382,500 | 307,500 | 7,271,310 |
(III) Other information
□ Applicable√ N/A
IV. Changes in the controlling shareholder or actual controller
□ Applicable√ N/A
V. Implementation of and changes in arrangements relating to depository receipts during the
reporting period
□ Applicable√ N/A
VI. Shares with special voting rights
□ Applicable√ N/A
Section VIII Preferred Shares
□ Applicable√ N/A
Section IX BondsI. Corporate bonds (including enterprise bonds) and non-financial corporate debt financinginstruments
□ Applicable√ N/A
II. Convertible corporate bonds
□ Applicable√ N/A
Section X Financial ReportI. Auditor’s report
□ Applicable√ N/A
II. Financial statements
Consolidated Balance Sheet
June 30, 2024Prepared by: Appotronics Corporation Limited
In RMB
| Item | Note | June 30, 2024 | December 31, 2023 |
| Current Assets: | |||
| Monetary funds | VII. 1 | 1,334,828,141.48 | 1,386,828,549.06 |
| Balances with clearing agencies | |||
| Placements with banks and other financial institutions | |||
| Held-for-trading financial assets | VII. 2 | 503,130,000.00 | 514,010,000.00 |
| Derivative financial assets | |||
| Notes receivable | VII. 4 | 4,167,483.04 | 8,951,308.71 |
| Accounts receivable | VII. 5 | 322,429,228.84 | 180,290,007.90 |
| Receivables financing | VII. 7 | 65,953,036.07 | 11,387,400.00 |
| Prepayments | VII. 8 | 34,708,582.94 | 35,112,661.82 |
| Premiums receivable | |||
| Amounts receivable under reinsurance contracts |
| Reinsurer’s share of insurance contract reserves |
| Other receivables | VII. 9 | 30,579,134.59 | 30,698,687.55 |
| Including: Interest receivable | |||
| Dividend receivable | 14,111,064.00 | 14,023,746.00 | |
| Financial assets purchased under resale agreements | |||
| Inventories | VII. 10 | 660,442,864.55 | 656,346,799.67 |
| Including: Data resources | |||
| Contract assets | VII. 6 | 1,830,851.39 | 1,664,740.29 |
| Assets held for sale | |||
| Non-current assets due within 1 year | VII. 12 | 50,522,240.47 | 41,997,218.73 |
| Other current assets | VII. 13 | 49,455,379.32 | 48,417,270.11 |
| Total current assets | 3,058,046,942.69 | 2,915,704,643.84 | |
| Non-current Assets: | |||
| Loans and advances | |||
| Debt investments | |||
| Other debt investments | |||
| Long-term receivables | VII. 16 | 22,102,504.94 | 26,000,543.13 |
| Long-term equity investment | VII. 17 | 6,183,769.99 | 144,726,776.43 |
| Investment in other equity instruments | VII. 18 | 7,075,419.38 | 7,075,419.38 |
| Other non-current financial assets | VII. 19 | 99,443,720.92 | |
| Investment property | |||
| Fixed assets | VII. 21 | 308,123,259.75 | 336,276,793.84 |
| Construction in progress | VII. 22 | 372,111,349.09 | 347,777,138.86 |
| Productive biological assets | |||
| Oil and gas assets | |||
| Right-of-use assets | VII. 25 | 29,026,784.06 | 40,016,903.67 |
| Intangible assets | VII. 26 | 275,487,807.09 | 281,961,046.22 |
| Including: Data resources | |||
| Development expenditure | |||
| Including: Data resources | |||
| Goodwill | |||
| Long-term prepaid expenses | VII. 28 | 3,881,364.11 | 6,318,145.33 |
| Deferred tax assets | VII. 29 | 83,880,273.57 | 85,364,732.19 |
| Other non-current assets | VII. 30 | 18,308,105.15 | 29,348,748.27 |
| Total non-current assets | 1,225,624,358.05 | 1,304,866,247.32 | |
| Total assets | 4,283,671,300.74 | 4,220,570,891.16 | |
| Current Liabilities: | |||
| Short-term borrowings | VII. 32 | 50,032,500.00 | 80,036,500.00 |
| Loans from the central bank | |||
| Taking from banks and other financial institutions | |||
| Held-for-trading financial liabilities | |||
| Derivative financial liabilities | |||
| Notes payable | VII. 35 | 105,114,863.34 | 76,001,079.07 |
| Accounts payable | VII. 36 | 403,638,748.50 | 247,318,466.10 |
| Advance from customers | VII. 37 | 101,638,526.13 | 110,573,711.24 |
| Contract liabilities | VII. 38 | 43,087,407.22 | 45,416,445.99 |
| Financial assets sold under repurchase agreements | |||
| Customer deposits and deposits from banks and other financial institutions | |||
| Funds from securities trading agency | |||
| Funds from underwriting securities agency | |||
| Employee benefits payable | VII. 39 | 31,408,872.42 | 66,874,234.47 |
| Taxes payable | VII. 40 | 10,162,408.56 | 6,142,704.23 |
| Other payables | VII. 41 | 90,355,287.99 | 54,142,509.17 |
| Including: Interest payable | |||
| Dividend payable | VII. 41 | 32,084,193.96 | |
| Fees and commissions payable | |||
| Amounts payable under reinsurance contracts | |||
| Liabilities held for sale | |||
| Non-current liabilities due within 1 year | VII. 43 | 324,824,694.69 | 268,748,151.67 |
| Other current liabilities | VII. 44 | 15,980,408.92 | 18,441,685.83 |
| Total current liabilities | 1,176,243,717.77 | 973,695,487.77 | |
| Non-current Liabilities: | |||
| Insurance contract reserves | |||
| Long-term borrowings | VII. 45 | 321,652,760.09 | 370,649,631.22 |
| Bonds payable | |||
| Including: Preferred shares | |||
| Perpetual bonds | |||
| Lease liabilities | VII. 47 | 11,990,866.87 | 15,548,985.71 |
| Long-term payables | |||
| Long-term employee benefits payable | |||
| Provisions | VII. 50 | 54,298,545.77 | 58,180,985.08 |
| Deferred income | VII. 51 | 3,200,397.19 | 4,627,972.56 |
| Deferred tax liabilities | VII. 29 | 1,773,955.14 | 1,229,654.81 |
| Other non-current liabilities | |||
| Total non-current liabilities | 392,916,525.06 | 450,237,229.38 | |
| Total liabilities | 1,569,160,242.83 | 1,423,932,717.15 | |
| Owners’ Equity (Or Shareholders’ Equity): | |||
| Paid-in capital (or share capital) | VII. 53 | 465,133,628.00 | 462,211,338.00 |
| Other equity instruments | |||
| Including: Preferred shares | |||
| Perpetual bonds | |||
| Capital reserve | VII. 55 | 1,654,818,814.25 | 1,616,489,567.43 |
| Less: Treasury shares | VII. 56 | 108,917,776.63 | 19,377,297.59 |
| Other comprehensive income | VII. 57 | 9,002,284.77 | 7,550,073.78 |
| Special reserve | |||
| Surplus reserve | VII. 59 | 84,873,365.32 | 84,873,365.32 |
| General risk reserve | |||
| Retained profits | VII. 60 | 645,947,825.53 | 667,122,406.05 |
| Total owners’ (or shareholders’) equity attributable to owners of the parent company | |||
2,750,858,141.24 2,818,869,452.99
| Minority interests | -36,347,083.33 | -22,231,278.98 | |
| Total owners’ (or shareholders’) equity | 2,714,511,057.91 | 2,796,638,174.01 | |
| Total liabilities and owners’ (or shareholders’) equity |
4,283,671,300.74 4,220,570,891.16
| Principal of the Company: | Person in Charge of the Accounting Work: | Person in Charge of the Accounting Body: |
| LI Yi | WANG Yingxia | WANG Yingxia |
Balance Sheet of the Parent Company
June 30, 2024Prepared by: Appotronics Corporation Limited
In RMB
| Item | Note | June 30, 2024 | December 31, 2023 |
| Current Assets: | |||
| Monetary funds | 825,062,184.73 | 885,876,318.51 | |
| Held-for-trading financial assets | 503,130,000.00 | 514,010,000.00 | |
| Derivative financial assets | |||
| Notes receivable | 2,369,663.04 | 8,951,308.71 | |
| Accounts receivable | XIX. 1 | 633,845,471.71 | 462,480,236.37 |
| Receivables financing | 62,086,236.07 | 5,996,000.00 | |
| Prepayments | 7,986,712.86 | 6,081,606.52 | |
| Other receivables | XIX. 2 | 358,976,925.08 | 14,978,163.24 |
| Including: Interest receivable | |||
| Dividend receivable | |||
| Inventories | 403,429,133.81 | 360,986,333.90 | |
| Including: Data resources | |||
| Contract assets | 1,694,051.39 | 1,664,740.29 | |
| Assets held for sale | |||
| Non-current assets due within 1 year | |||
| Other current assets | 31,399,670.31 | 26,620,443.94 | |
| Total current assets | 2,829,980,049.00 | 2,287,645,151.48 | |
| Non-current Assets: | |||
| Debt investments | |||
| Other debt investments | |||
| Long-term receivables | |||
| Long-term equity investment | XIX. 3 | 165,039,611.88 | 469,318,028.03 |
| Investment in other equity instruments | 7,075,419.38 | 7,075,419.38 | |
| Other non-current financial assets | |||
| Investment property | |||
| Fixed assets | 85,027,283.16 | 65,177,438.43 | |
| Construction in progress | 369,194,706.11 | 344,481,907.55 | |
| Productive biological assets | |||
| Oil and gas assets | |||
| Right-of-use assets | 19,055,339.41 | 30,017,024.96 | |
| Intangible assets | 277,124,967.21 | 283,883,645.37 | |
| Including: Data resources | |||
| Development expenditure | |||
| Including: Data resources | |||
| Goodwill | |||
| Long-term prepaid expenses | 643,301.76 | 1,450,084.92 | |
| Deferred tax assets | 29,764,368.94 | 33,459,331.86 | |
| Other non-current assets | 17,584,475.85 | 28,174,416.97 | |
| Total non-current assets | 970,509,473.70 | 1,263,037,297.47 | |
| Total assets | 3,800,489,522.70 | 3,550,682,448.95 | |
| Current Liabilities: | |||
| Short-term borrowings | 50,032,500.00 | 50,010,833.33 | |
| Held-for-trading financial liabilities | |||
| Derivative financial liabilities | |||
| Notes payable | 50,510,028.75 | 31,461,205.72 | |
| Accounts payable | 414,426,069.74 | 274,312,877.51 | |
| Advance from customers | |||
| Contract liabilities | 21,490,848.79 | 18,743,336.81 | |
| Employee benefits payable | 14,392,537.21 | 34,021,863.01 | |
| Taxes payable | 1,808,367.01 | 3,596,744.97 | |
| Other payables | 87,189,488.58 | 15,161,050.55 | |
| Including: Interest payable | |||
| Dividend payable | 32,084,193.96 | ||
| Liabilities held for sale | |||
| Non-current liabilities due within 1 year | 107,424,303.89 | 61,007,143.63 | |
| Other current liabilities | 2,082,604.36 | 3,912,927.75 | |
| Total current liabilities | 749,356,748.33 | 492,227,983.28 | |
| Non-current Liabilities: | |||
| Long-term borrowings | 251,598,892.31 | 233,506,228.03 | |
| Bonds payable | |||
| Including: Preferred shares | |||
| Perpetual bonds | |||
| Lease liabilities | 7,680,532.57 | 10,326,879.29 | |
| Long-term payables | |||
| Long-term employee benefits payable | |||
| Provisions | 20,349,383.48 | 20,925,309.05 | |
| Deferred income | 1,836,760.80 | 2,718,881.63 | |
| Deferred tax liabilities | |||
| Other non-current liabilities | |||
| Total non-current liabilities | 281,465,569.16 | 267,477,298.00 | |
| Total liabilities | 1,030,822,317.49 | 759,705,281.28 | |
| Owners’ Equity (Or Shareholders’ Equity): | |||
| Paid-in capital (or share capital) | 465,133,628.00 | 462,211,338.00 | |
| Other equity instruments | |||
| Including: Preferred shares | |||
| Perpetual bonds | |||
| Capital reserve | 1,672,569,968.45 | 1,625,258,496.25 | |
| Less: Treasury shares | 108,917,776.63 | 19,377,297.59 | |
| Other comprehensive income | |||
| Special reserve | |||
| Surplus reserve | 83,595,824.59 | 83,595,824.59 | |
| Retained profits | 657,285,560.80 | 639,288,806.42 | |
| Total owners’ (or shareholders’) equity | 2,769,667,205.21 | 2,790,977,167.67 | |
| Total liabilities and owners’ (or shareholders’) equity |
3,800,489,522.70 3,550,682,448.95
| Principal of the Company: | Person in Charge of the Accounting Work: | Person in Charge of the Accounting Body: |
| LI Yi | WANG Yingxia | WANG Yingxia |
Consolidated Income Statement
Jan. - Jun. 2024
In RMBItem Note
| Half year of 2024 | Half year of 2023 | ||
| I. Total operating income | 1,081,409,500.21 | 1,073,249,037.75 | |
| Including: Operating income | VII. 61 | 1,081,409,500.21 | 1,073,249,037.75 |
| Interest income | |||
| Premiums earned | |||
| Fee and commission income | |||
| II. Total operating costs | 1,036,598,728.95 | 1,012,145,838.42 | |
| Including: Operating costs | VII. 61 | 745,633,299.59 | 668,659,467.49 |
| Interest expenses | |||
| Fee and commission expenses | |||
| Surrenders | |||
| Claims and policyholder benefits (net of amounts recoverable from reinsurers) | |||
| Net withdrawal of insurance contract reserves | |||
| Insurance policyholder dividends | |||
| Expenses for reinsurance accepted | |||
| Taxes and surcharges | VII. 62 | 3,739,598.40 | 4,005,751.53 |
| Selling expenses | VII. 63 | 99,322,901.25 | 143,399,660.02 |
| Administrative expenses | VII. 64 | 82,242,537.80 | 86,696,223.82 |
| R&D expenses | VII. 65 | 111,618,787.20 | 126,406,142.12 |
| Financial expenses | VII. 66 | -5,958,395.29 | -17,021,406.56 |
| Including: Interest expense | 9,734,387.32 | 7,061,642.05 | |
| Interest income | 16,592,276.86 | 15,604,073.30 | |
| Add: Other income | VII. 67 | 14,929,412.51 | 23,608,983.31 |
| Investment income (loss is indicated by “-”) |
VII. 68 -25,806,969.54 -2,806,106.20
-41,711,273.01 -8,071,814.75
| Including: Income from investments in associates and joint ventures |
| Gains from derecognition of |
financial assets at amortized cost
| (loss is indicated by “-”) | |||
| Foreign exchange gains (loss is indicated by “-”) |
| Gains from net exposure hedges (loss is indicated by “-”) | |||
| Gains from changes in fair values (loss is indicated by “-”) |
VII. 70 10,062,500.00
VII. 72 -10,437,805.62 -3,513,083.07
| Losses of credit impairment (loss is indicated by “-”) |
| Impairment losses of assets (loss is indicated by “-”) |
VII. 73 -27,861,537.16 -29,013,931.74
VII. 71 -9,895.34 15,262.15
| Gains from disposal of assets (loss is indicated by “-”) | |||
| III. Operating profit (loss is indicated by “-”) | 5,686,476.11 | 49,394,323.78 | |
| Add: Non-operating income | VII. 74 | 1,177,978.86 | 9,424,347.83 |
| Less: Non-operating expenses | VII. 75 | 577,532.42 | 641,261.92 |
| IV. Total profits (total losses are indicated by “-”) |
6,286,922.55 58,177,409.69
| Less: Income tax expenses | VII. 76 | 9,216,850.86 | 18,649,943.64 |
| V. Net profits (net losses are indicated by “-”) | -2,929,928.31 | 39,527,466.05 | |
| (I) Categorized by the continuity of operation | |||
| 1. Net profits from continuing operations (net losses are indicated by “-”) | |||
-2,929,928.31 39,527,466.05
| 2. Net profits from discontinued operations (net losses are indicated by “-”) | |||
| (II) Categorized by the ownership | |||
| 1. Net profits attributable to shareholders of | |||
the parent company (net losses are indicated by
| “-”) |
10,909,613.44 74,914,640.95
| 2. Profits or losses attributable to minority shareholders (net losses are indicated by “-”) |
-13,839,541.75 -35,387,174.90
| VI. Other comprehensive income, net of tax | 1,505,432.81 | 5,158,805.71 | |
| (I) Other comprehensive income that can be attributable to owners of the parent company, net of tax |
1,452,210.99 6,714,283.50
| 1. Other comprehensive income that cannot be reclassified subsequently to profit or loss | |||
| (1) Changes from remeasurement of defined benefit plans | |||
| (2) Other comprehensive income that cannot be |
reclassified to profit or loss under the equity
| method | |||
| (3) Changes in fair value of investments in other equity instruments | |||
| (4) Changes in fair value of enterprises’ own credit risks | |||
| 2. Other comprehensive income that will be reclassified to profit or loss |
1,452,210.99 6,714,283.50
| (1) Other comprehensive income that will be reclassified to profit or loss under the equity method |
-4,176,328.87
| (2) Changes in fair value of other debt investments | |||
| (3) Amount of financial assets reclassified to other comprehensive income | |||
| (4) Provision for credit impairment of other debt investments |
| (5) Reserve for cash flow hedges | |||
| (6) Exchange differences on translation of |
financial statements denominated in foreign
| currencies |
1,452,210.99 10,890,612.37
| (7) Others | |||
| (II) Other comprehensive income that can be attributable to minority shareholders, net of tax |
53,221.82 -1,555,477.79
| VII. Total comprehensive income | -1,424,495.50 | 44,686,271.76 | |
| (I) Total comprehensive income that can be attributable to owners of the parent company |
12,361,824.43 81,628,924.45
| (II) Total comprehensive income that can be attributable to minority shareholders |
-13,786,319.93 -36,942,652.69
| VIII. Earnings per share: | |||
| (I) Basic earnings per share (RMB/share) | 0.02 | 0.16 | |
| (II) Diluted earnings per share (RMB/share) | 0.02 | 0.16 |
In the event of business combinations involving entities under common control during the period, the netprofits realized prior to the combination by the party being absorbed is: RMB 0.00, and the net profitsrealized in the last period by the party being absorbed is: RMB 0.00.
| Principal of the Company: | Person in Charge of the Accounting Work: | Person in Charge of the Accounting Body: |
| LI Yi | WANG Yingxia | WANG Yingxia |
Income Statement of the Parent Company
Jan. - Jun. 2024
In RMBItem
| Note | Half year of 2024 | Half year of 2023 | |
| I. Operating income | XIX. 4 | 710,455,810.59 | 542,956,800.34 |
| Less: Operating costs | XIX. 4 | 560,232,751.34 | 368,571,473.83 |
| Taxes and surcharges | 3,058,211.98 | 3,199,879.01 | |
| Selling expenses | 32,036,077.04 | 37,056,481.71 | |
| Administrative expenses | 37,794,728.35 | 46,709,472.09 | |
| R&D expenses | 72,390,894.41 | 70,859,871.98 | |
| Financial expenses | -10,376,332.95 | -16,034,801.70 | |
| Including: Interest expense | 3,028,119.55 | 3,133,969.39 | |
| Interest income | 14,294,503.35 | 14,313,472.46 | |
| Add: Other income | 9,804,296.31 | 19,359,728.30 | |
| Investment income (loss is indicated by “-”) | XIX. 5 |
36,000,814.10 12,717,708.55
| Including: Income from investments in associates and joint ventures |
-436,832.42
financial assets at amortized cost
| (loss is indicated by “-”) |
| Gains from net exposure hedges (loss is indicated by “-”) |
| Gains from changes in fair values (loss is indicated by “-”) |
10,062,500.00
| Losses of credit impairment (loss is indicated by “-”) |
-6,754,898.59 -2,891,569.80
| Impairment losses of assets (loss is indicated by “-”) |
-13,305,434.47 -7,961,985.67
| Gains from disposal of assets (loss is indicated by “-”) |
12,718.43
| II. Operating profit (loss is indicated by “-”) | 51,126,757.77 | 53,831,023.23 | |
| Add: Non-operating income | 66,902.53 | 362,544.72 | |
| Less: Non-operating expenses | 23,187.55 | 216,230.87 | |
| III. Total profits (total losses are indicated by “-”) |
51,170,472.75 53,977,337.08
| Less: Income tax expenses | 1,089,524.41 | 1,792,767.89 | |
| IV. Net profits (net losses are indicated by “-”) | 50,080,948.34 | 52,184,569.19 | |
| (I) Net profits from continuing operations (net losses are indicated by “-”) |
50,080,948.34 52,184,569.19
| (II) Net profits from discontinued operations (net losses are indicated by “-”) | |||
| V. Other comprehensive income, net of tax | |||
| (I) Other comprehensive income that cannot be reclassified subsequently to profit or loss | |||
| 1. Changes from remeasurement of defined benefit plans | |||
| 2. Other comprehensive income that cannot |
be reclassified to profit or loss under the equity
| method | |||
| 3. Changes in fair value of investments in other equity instruments | |||
| 4. Changes in fair value of enterprises’ own credit risks | |||
| (II) Other comprehensive income that will be reclassified to profit or loss | |||
| 1. Other comprehensive income that will be reclassified to profit or loss under the equity method | |||
| 2. Changes in fair value of other debt investments | |||
| 3. Amount of financial assets reclassified to other comprehensive income | |||
| 4. Provision for credit impairment of other debt investments | |||
| 5. Reserve for cash flow hedges | |||
| 6. Exchange differences on translation of |
financial statements denominated in foreign
| currencies | |||
| 7. Others | |||
| VI. Total comprehensive income | 50,080,948.34 | 52,184,569.19 | |
| VII. Earnings per share: | |||
| (I) Basic earnings per share (RMB/share) | |||
| (II) Diluted earnings per share (RMB/share) |
| Principal of the Company: | Person in Charge of the Accounting Work: | Person in Charge of the Accounting Body: |
| LI Yi | WANG Yingxia | WANG Yingxia |
Consolidated Cash Flow Statement
Jan. - Jun. 2024
In RMBItem Note
| Half year of 2024 | Half year of 2023 | ||
| I. Cash Flows from Operating Activities: | |||
| Cash receipts from the sale of goods and the rendering of services |
992,459,890.22 1,117,055,783.68
| Net increase in customer deposits and deposits from banks and other financial institutions | |||
| Net increase in loans from the central bank | |||
| Net increase in taking from banks and other financial institutions | |||
| Cash receipts from premiums under direct insurance contracts | |||
| Net cash receipts from reinsurance business | |||
| Net cash receipts from policyholders’ deposits and investment contract liabilities | |||
| Cash receipts from interest, fees and commissions | |||
| Net increase in taking from banks | |||
| Net increase in financial assets sold under repurchase arrangements | |||
| Net cash received from securities trading agencies | |||
| Receipts of tax refunds | 4,305,653.31 | 4,435,896.68 | |
| Other cash receipts relating to operating activities |
VII. 78 26,945,289.81 90,837,327.64
1,023,710,833.34 1,212,329,008.00
| Sub-total of cash inflows from operating activities |
| Cash payments for goods purchased and services received |
582,056,304.37 678,514,829.90
| Net increase in loans and advances to customers |
| Net increase in balance with the central bank and due from banks and other financial institutions |
| Cash payments for claims and policyholders’ benefits under direct insurance contracts |
| Net increase in placements with banks and other financial institutions |
| Cash payments for interest, fees and commissions |
| Cash payments for insurance policyholder dividends |
| Cash payments to and on behalf of employees | 229,240,243.70 | 235,611,354.36 | |
| Payments of various types of taxes | 39,923,684.79 | 30,029,161.72 | |
| Other cash payments relating to operating activities |
VII. 78 251,637,270.71 153,434,829.89
| Sub-total of cash outflows from operating activities |
1,102,857,503.57 1,097,590,175.87
| Net cash flows from operating activities | -79,146,670.23 | 114,738,832.13 | |
| II. Cash Flows from Investing Activities: |
VII. 78 780,000,000.00 765,000,000.00
| Cash receipts from disposals and recovery of investments | |||
| Cash receipts from investment income | 26,283,772.27 | 5,265,708.55 | |
| Net cash receipts from disposals of fixed |
assets, intangible assets and other long-term
138,633.58 30,975.00
| assets |
| Net cash receipts from disposals of subsidiaries and other business units |
VII. 78 1,362,168.77
| Other cash receipts relating to investing activities |
| Sub-total of cash inflows from investing activities |
807,784,574.62 770,296,683.55
assets, intangible assets and other long-term
| assets |
39,993,557.76 41,659,342.63
| Cash payments to acquire investments | VII. 78 | 768,000,001.00 | 976,816,480.00 |
| Net increase in pledged loans | |||
| Net cash payments for acquisitions of subsidiaries and other business units |
11,831,365.16
1,364,715.49
| Other cash payments relating to investing activities |
| Sub-total of cash outflows from investing activities |
809,358,274.25 1,030,307,187.79
| Net cash flows from investing activities | -1,573,699.63 | -260,010,504.24 | |
| III. Cash Flows from Financing Activities: | |||
| Cash receipts from capital contributions | 46,113,350.89 | 50,609,959.00 | |
| Including: Cash receipts from capital contributions from minority shareholders of subsidiaries |
| Cash receipts from borrowings | 95,230,654.50 | 265,000,000.00 | |
| Other cash receipts relating to financing activities |
141,344,005.39 315,609,959.00
| Sub-total of cash inflows from financing activities | |||
| Cash repayments of borrowings | 109,082,709.91 | 137,959,994.00 | |
| Cash payments for distribution of dividends or profits or settlement of interest expenses |
22,238,477.89 49,596,180.44
dividends or profits to minority shareholders of
| subsidiaries |
10,626,000.00 11,040,000.00
VII. 78 106,539,207.31 17,407,047.01
| Other cash payments relating to financing activities |
| Sub-total of cash outflows from financing activities |
237,860,395.11 204,963,221.45
| Net cash flows from financing activities | -96,516,389.72 | 110,646,737.55 | |
| IV. Effect of Foreign Exchange Rate Changes on Cash and Cash Equivalents |
1,057,197.12 8,274,666.00
-176,179,562.46 -26,350,268.55
| V. Net Increase in Cash and Cash Equivalents |
| Add: Opening balance of cash and cash equivalents |
1,297,848,895.75 1,254,582,403.12
1,121,669,333.29 1,228,232,134.57
| Principal of the Company: | Person in Charge of the Accounting Work: | Person in Charge of the Accounting Body: |
| LI Yi | WANG Yingxia | WANG Yingxia |
Cash Flow Statement of the Parent Company
Jan. - Jun. 2024
In RMB
| Item | Note | Half year of 2024 | Half year of 2023 |
| I. Cash Flows from Operating Activities: | |||
| Cash receipts from the sale of goods and the rendering of services |
522,941,818.51 631,177,814.33
| Receipts of tax refunds | 728,673.28 | 1,915,638.25 | |
| Other cash receipts relating to operating activities |
52,327,476.52 34,660,128.09
| Sub-total of cash inflows from operating activities |
575,997,968.31 667,753,580.67
| Cash payments for goods purchased and services received |
461,646,914.19 345,900,092.57
| Cash payments to and on behalf of employees | 124,688,419.86 | 147,052,438.69 | |
| Payments of various types of taxes | 13,403,951.33 | 12,354,746.49 | |
| Other cash payments relating to operating activities |
56,817,195.43 36,687,871.73
| Sub-total of cash outflows from operating activities |
656,556,480.81 541,995,149.48
| Net cash flows from operating activities | -80,558,512.50 | 125,758,431.19 | |
| II. Cash Flows from Investing Activities: | |||
| Cash receipts from disposals and recovery of investments |
780,000,000.00 765,000,000.00
| Cash receipts from investment income | 34,480,972.27 | 12,717,708.55 | |
| Net cash receipts from disposals of fixed |
assets, intangible assets and other long-term
| assets |
- 24,975.00
| Net cash receipts from disposals of subsidiaries and other business units | |||
| Other cash receipts relating to investing activities | |||
| Sub-total of cash inflows from investing activities |
814,480,972.27 777,742,683.55
assets, intangible assets and other long-term
| assets |
38,902,930.88 35,226,743.48
| Cash payments to acquire investments | 769,009,109.50 | 976,818,280.00 | |
| Net cash payments for acquisitions of subsidiaries and other business units | |||
| Other cash payments relating to investing activities | |||
| Sub-total of cash outflows from investing activities |
807,912,040.38 1,012,045,023.48
| Net cash flows from investing activities | 6,568,931.89 | -234,302,339.93 | |
| III. Cash Flows from Financing Activities: | |||
| Cash receipts from capital contributions | 46,113,350.89 | 50,609,959.00 | |
| Cash receipts from borrowings | 95,230,654.50 | 135,000,000.00 |
| Other cash receipts relating to financing activities | |||
| Sub-total of cash inflows from financing activities |
141,344,005.39 185,609,959.00
| Cash repayments of borrowings | 22,282,709.91 | 5,750,000.00 | |
| Cash payments for distribution of dividends or profits or settlement of interest expenses |
5,059,880.87 29,004,483.78
| Other cash payments relating to financing activities |
102,144,543.40 12,747,615.67
| Sub-total of cash outflows from financing activities |
129,487,134.18 47,502,099.45
| Net cash flows from financing activities | 11,856,871.21 | 138,107,859.55 | |
| IV. Effect of Foreign Exchange Rate Changes on Cash and Cash Equivalents |
144,876.98 3,294,539.64
| V. Net Increase in Cash and Cash Equivalents |
-61,987,832.42 32,858,490.45
| Add: Opening balance of cash and cash equivalents |
805,019,178.89 634,972,775.32
| VI. Closing Balance of Cash and Cash Equivalents |
743,031,346.47 667,831,265.77
| Principal of the Company: | Person in Charge of the Accounting Work: | Person in Charge of the Accounting Body: |
| LI Yi | WANG Yingxia | WANG Yingxia |
Consolidated Statement of Changes in Owners’ Equity
Jan. - Jun. 2024
In RMB
Item
Equity attributable to owners of the parent company
Minorityinterests
Totalowners’equityPaid-incapital(or sharecapital)
Other equity instruments
Capitalreserve
Less:
Treasuryshares
Othercomprehe
nsive
income
Specialreserve
Surplusreserve
General
riskreserve
Retained
profits
Others Sub-totalPreferred
shares
Perpe
tual
Half year of 2024bonds
Others
| bonds | ||
| I. Closing |
balance ofthe prior
462,211,33
8.00
1,616,489,5
67.43
19,377,297.5
7,550,073.
84,873,3
65.32
667,122,406.
2,818,869,45
2.99
| year |
-22,231,278
.98
2,796,638,17
4.01
Changes inaccounting
| policies |
ions of priorperiod
| errors |
| Others |
| II. Opening |
balance ofthe current
462,211,33
8.00
1,616,489,5
67.43
19,377,297.5
7,550,073.
84,873,3
65.32
667,122,406.
2,818,869,45
2.99
| year |
-22,231,278
.98
2,796,638,17
4.01
for theperiod(decrease isindicated by
| “-”) |
2,922,290.
38,329,246.
89,540,479.0
1,452,210.
-21,174,580.5
-68,011,311.7
-14,115,804.35
-82,127,116.1
comprehensi
| ve income |
1,452,210.
10,909,613.4
12,361,824.4
| 3 | - |
13,786,319
-1,424,495.50
contributions andreduction in
| capital |
2,922,290.
38,329,246.
89,540,479.0
-48,288,942.2
10,296,515.58
-37,992,426.6
sharescontributed
| by owners |
2,922,290.
43,191,060.
89,540,479.0
-43,427,128.1
-43,427,128.1
| 2. Capital |
contributionfromholders ofother equity
| instruments |
basedpaymentrecognizedin owners’
| equity |
3,621,509.6
1,141,021.
4,762,530.64
| 3,621,509.62 | ||
| 4. Others |
8,483,323.6
| 9 |
-
9,155,494.
672,170.87
| 8,483,323.69 | ||
| (III) Profit |
distribution
32,084,193.9
| 6 |
32,084,193.9
| 6 | - |
10,626,000
| .00 | - |
42,710,193.9
| 6 | ||
| 1. Transfer |
to surplus
| reserve |
to general
| risk reserve |
| 3. |
Distributions to owners(orshareholders
-32,084,193.9
-32,084,193.9
-10,626,000
.00
-42,710,193.9
| ) | |||||||||||||||
| 4. Others | |||||||||||||||
| (IV) Transfers |
owners’
| equity |
| 1. |
Capitalization of capital
| reserve |
| 2. |
Capitalization of surplus
| reserve |
| 3. Loss |
offset bysurplus
| reserve |
| 4. Retained |
earningscarriedforwardfromchanges indefinedbenefit
| plans |
| 5. Retained |
earningscarriedforwardfrom othercomprehensi
| ve income | |||||||||||||||
| 6. Others | |||||||||||||||
| (V) Special reserve |
to specialreserve in
| the period |
utilized in
| the period |
| (VI) Others |
balance ofthe current
| year |
465,133,62
8.00
1,654,818,8
14.25
108,917,776.
9,002,284.
84,873,3
65.32
645,947,825.
2,750,858,14
1.24
-36,347,083
.332,714,511,05
7.91
Item
Equity attributable to owners of the parent company
Minorityinterests
Totalowners’
equityPaid-in capital
(or sharecapital)
Half year of 2023
Other
equityinstrument
| s |
Capital reserve
Less:
Treasury
shares
Othercomprehensive income
Specialreserve
Surplusreserve
General
riskreserve
Retained
profits
Others
Sub-total
eferredshar
| es | Pe |
rpetua
lbond
Others
| s | ||
| I. Closing |
balance ofthe prior
457,107,538.00 1,530,752,116.04 19,377,297.59 5,736,897.41 75,519,782.06 597,924,451.67
| year |
2,647,663,487.
93,855,136
.07
2,741,518,62
3.66
Changesinaccountin
| g policies |
| Corre |
ctions ofpriorperiod
| errors |
| Others |
| II. |
Opening
457,107,538.00 1,530,752,116.04 19,377,297.59 5,736,897.41 75,519,782.06 597,924,451.67
2,647,663,487.
93,855,136.072,741,518,62
3.66
| the current year |
| III. |
Changesfor theperiod(decreaseisindicated
| by “-”) |
20,714,249.08 6,714,283.50 50,279,433.90 77,707,966.48
-64,777,884.97
12,930,081.5
comprehensive
| income |
6,714,283.50 74,914,640.95
81,628,924.45
-36,942,652.6944,686,271.7
| (II) |
Owners’contributions andreduction
| in capital |
20,714,249.08
20,714,249.08
-16,795,232.28
3,919,016.80
Ordinarysharescontributed by
| owners |
contribution fromholders ofotherequityinstrument
| s |
basedpaymentrecognized inowners’
| equity |
20,442,747.19
20,442,747.19
3,204,207.
23,646,954.6
| 4. Others |
271,501.89
271,501.89
19,999,439
| .77 | - |
19,727,937.8
| 8 | ||
| (III) Profit |
distributio
| n |
-24,635,207.05 -24,635,207.05
11,040,000
| .00 | - |
35,675,207.0
| 5 | ||
| 1. |
Transferto surplus
| reserve |
| 2. |
Transferto generalrisk
| reserve |
| 3. |
Distributions toowners (orsharehold
| ers) |
-24,635,207.05 -24,635,207.05
-11,040,000
.00
-35,675,207.0
| 4. Others | |||||||||||||||
| (IV) |
Transferswithinowners’
| equity |
| 1. |
Capitalization ofcapital
| reserve |
| 2. |
Capitalization ofsurplus
| reserve |
| 3. Loss |
offset bysurplus
| reserve |
Retainedearningscarriedforwardfromchanges indefinedbenefit
| plans |
| 5. |
Retainedearningscarriedforwardfrom othercomprehensive
| income |
| 6. Others | |||||||||||||||
| (V) |
Special
| reserve |
| 1. |
Transferto specialreserve in
| the period |
| 2. Amount |
utilized in
| the period |
| (VI) Others |
| IV. |
Closingbalance ofthe current
457,107,538.00 1,551,466,365.12 19,377,297.59
12,451,180.9
75,519,782.06 648,203,885.57
| year |
2,725,371,454.
29,077,251
.10
2,754,448,70
5.17
Principal of the Company: LI Yi Person in Charge of the Accounting Work: WANG Yingxia Person in Charge of the Accounting Body: WANG Yingxia
Statement of Changes in Owners’ Equity of the Parent Company
Jan. - Jun. 2024
In RMB
Item
Paid-in capital
(or sharecapital)
| Half year of 2024 | ||
| Other equity instruments | ||
Capital reserve
Less: Treasuryshares
Othercomprehensiveincome
Specialreserve
Surplusreserve
Retainedprofits
Total owners’equity
erre
dshar
| es | Per |
petu
albon
Others
| ds | ||
| I. Closing balance of the prior year |
462,211,338.00 1,625,258,496.25 19,377,297.59 83,595,824.59 639,288,806.42 2,790,977,167.67
| Add: Changes in accounting policies | |||||||||||
| Corrections of prior period errors | |||||||||||
| Others | |||||||||||
| II. Opening balance of the current year |
462,211,338.00 1,625,258,496.25 19,377,297.59 83,595,824.59 639,288,806.42 2,790,977,167.67
period (decrease is
| indicated by “-”) |
2,922,290.00 47,311,472.20 89,540,479.04 17,996,754.38 -21,309,962.46
comprehensive
| income |
50,080,948.34 50,080,948.34
contributions and
| reduction in capital |
2,922,290.00 47,311,472.20 89,540,479.04 -39,306,716.84
contributed by
| owners |
2,922,290.00 43,191,060.89 89,540,479.04 -43,427,128.15
contribution fromholders of other
| equity instruments |
784,440.30 784,440.30
payment recognized
| in owners’ equity |
3,335,971.01 3,335,971.01
| 4. Others |
| (III) Profit distribution |
-32,084,193.96 -32,084,193.96
| 1. Transfer to surplus reserve | |||||||||||
| 2. Distributions to |
owners (or
| shareholders) | -32,084,193.96 | -32,084,193.96 | |||||||||
| 3. Others | |||||||||||
| (IV) Transfers within owners’ equity | |||||||||||
| 1. Capitalization of capital reserve | |||||||||||
| 2. Capitalization of surplus reserve | |||||||||||
| 3. Loss offset by surplus reserve | |||||||||||
| 4. Retained earnings |
carried forward fromchanges in defined
| benefit plans | |||||||||||
| 5. Retained earnings |
carried forward fromother comprehensive
| income | |||||||||||
| 6. Others | |||||||||||
| (V) Special reserve | |||||||||||
| 1. Transfer to special reserve in the period | |||||||||||
| 2. Amount utilized in the period | |||||||||||
| (VI) Others | |||||||||||
| IV. Closing balance of the current year |
465,133,628.00 1,672,569,968.45 108,917,776.63 83,595,824.59 657,285,560.80 2,769,667,205.21
Item
Paid-in capital
(or sharecapital)
| Half year of 2023 | ||
| Other equity instruments | ||
Capital reserve
Less: Treasury
shares
Othercomprehe
nsive
income
Specialreserve
Surplusreserve
Retained
profits
Total owners’
equity
erre
| d | Per |
petu
Others
| shares | bonds | ||
| I. Closing balance of the prior year |
457,107,538.00 1,541,789,874.63 19,377,297.59 74,242,241.33 579,741,763.06 2,633,504,119.43
| Add: Changes in accounting policies |
| Corrections of prior period errors |
| Others | |||||||||||
| II. Opening balance of the current year |
457,107,538.00 1,541,789,874.63 19,377,297.59 74,242,241.33 579,741,763.06 2,633,504,119.43
period (decrease is
| indicated by “-”) |
19,436,223.71 27,549,362.14 46,985,585.85
comprehensive
| income |
52,184,569.19 52,184,569.19
contributions and
| reduction in capital |
19,436,223.71 19,436,223.71
contributed by
| owners |
contribution fromholders of other
| equity instruments |
payment recognized
| in owners’ equity |
19,436,223.71 19,436,223.71
| 4. Others | |||||||||||
| (III) Profit distribution |
-24,635,207.05 -24,635,207.05
| 1. Transfer to surplus reserve |
| 2. Distributions to |
owners (or
-24,635,207.05 -24,635,207.05
| shareholders) | |||||||||||
| 3. Others |
within owners’
| equity |
| 1. Capitalization of capital reserve |
| 2. Capitalization of surplus reserve |
| 3. Loss offset by surplus reserve |
| 4. Retained earnings |
carried forward fromchanges in defined
| benefit plans |
| 5. Retained earnings |
carried forward fromother comprehensive
| income | |||||||||||
| 6. Others | |||||||||||
| (V) Special reserve | |||||||||||
| 1. Transfer to |
special reserve in
| the period |
| 2. Amount utilized in the period |
| (VI) Others | |||||||||||
| IV. Closing balance of the current year |
457,107,538.00 1,561,226,098.34 19,377,297.59 74,242,241.33 607,291,125.20 2,680,489,705.28
Principal of the Company: LI Yi Person in Charge of the Accounting Work: WANG Yingxia Person in Charge of the Accounting Body: WANG Yingxia
III. Company profile
1. Profile
√ Applicable□ N/A
Appotronics Corporation Limited (hereinafter referred to as “Company” or “the Company”),formally named as Appotronics Corporation Ltd. (hereinafter referred to as “Appotronics Ltd.”), wasjointly invested and established by LI Yi and XU Yanzheng, registered in Nanshan Branch of MarketSupervision and Regulation Bureau of Shenzhen Municipality on October 24, 2006, and headquartered inShenzhen City, Guangdong Province. The Company holds the business license bearing the credit code91440300795413991N. Its registered capital is RMB 462,211,338.00 divided into 462,211,338 shares(RMB 1.00 per share), including 462,211,338 unrestricted A shares. The Company’s shares were listedfor trading on Shanghai Stock Exchange on July 22, 2019.The Company can be classified into the computer, communication and other electronic equipmentmanufacturing industry. It mainly engages in research and development, production, sales and leasing of laserdisplay core devices and complete equipment, and can provide customers with technical research anddevelopment services and customized products. Its products mainly include laser optical engines, laser businessand education projectors, smart mini projectors, laser TVs, laser large venue projectors and laser digital cinemaprojectors.
These financial statements have been approved by the 35
thmeeting of the second Board of Directors onAugust 29, 2024 for public disclosure.IV. Basis of preparation of financial statements
1. Basis of preparation
The Company’s financial statements are prepared on a going-concern basis.
2. Going concern
√ Applicable□ N/A
The Company has detected no events or circumstances that may cast significant doubt upon itsability to continue as a going concern within 12 months from the end of reporting period.
V. Significant accounting policies and accounting estimates
Specific accounting policies and accounting estimates:
√ Applicable□ N/A
The Company establishes the specific accounting policies and makes the specific accounting estimateswith respect to inventories, depreciation of fixed assets, construction in progress, intangible assets,recognition of revenues and other transactions and events according to the actual production and operationcharacteristics of the Company.
1. Statement of compliance with the Accounting Standards for Business Enterprises
The financial statements prepared by the Company conform to the requirements of the AccountingStandards for Business Enterprises and truly and completely reflect the Company’s financial position,operating results, changes in shareholders’ equity, cash flows and other related information.
2. Accounting period
The Company’s accounting year is from January 1 to December 31 of each calendar year.
3. Operating cycle
√ Applicable□ N/A
The Company has a relatively short operating cycle, and determines the liquidity of assets and liabilitieson the basis of 12 months.
4. Functional currency
The Company and domestic subsidiaries adopt RMB as their functional currency, while AppotronicsHong Kong Limited and other overseas subsidiaries engaging in overseas operation adopt the currency intheir primary economic environments as their functional currencies.
5. Method and basis for determination of materiality
√ Applicable□ N/A
| Item | Materiality standard |
| Dividends receivable with significant amounts aged more than 1 year |
The Company considers an individual dividend receivable in anamount exceeding 0.3% of the total assets as a significantdividend receivable.
| Significant construction in progress | The Company considers the construction in progress which incurred the amount exceeding 0.3% of the total assets in the current period as a significant construction in progress. |
| Significant cash flow from investing activities |
| The Company considers an individual cash flow from investing activities in an amount exceeding 5% of the total assets as a significant cash flow from investing activities. | |
| Significant subsidiaries and non-wholly |
-owned subsidiaries
ry or significant non-wholly-
| owned subsidiary. | |
| Significant associates |
| The Company considers an associate whose total assets/total revenue exceeds 10% of the group’s total assets/total revenue as a significant associate. | |
| Significant contingencies |
| The Company considers an individual contingency in an amount exceeding 0.3% of the total assets as a significant contingency. | |
| Significant events after the balance sheet date |
6. The accounting treatment of business combinations involving entities under common control and
not involving entities under common control
√ Applicable□ N/A
1. Accounting method for business combinations involving entities under common control
Assets and liabilities acquired from a business combination by the Company are measured at thebook values of the assets and liabilities of the acquiree in the consolidated financial statements of theultimate controller at the date of combination. The difference between the book value of the owners’ equityof the acquiree as stated in the consolidated financial statements of the ultimate controller and the bookvalue of the total consideration paid or total par value of the shares issued in connection with thecombination is treated as an adjustment to the capital reserve. In case the capital reserve is not sufficientto absorb the difference, the remaining balance is adjusted against the retained earnings.
2. Accounting treatment of business combinations not involving entities under common control
Where the cost of combination exceeds the Company’s interest in the fair value of the acquiree’sidentifiable net assets at the date of acquisition, the difference is recognized as goodwill. Where the costof combination is less than the Company’s interest in the fair value of the acquiree’s identifiable net assets,the Company firstly reassesses the fair values of the acquiree’s identifiable assets, liabilities and contingentliabilities and the measurement of the cost of combination. If after that reassessment, the cost ofcombination is still less than the Company’s interest in the fair value of the acquiree’s identifiable netassets, the acquirer recognizes the remaining difference immediately in profit or loss for the current period.
7. Standard for determination of control and method of preparation of consolidated financial
statements
√ Applicable□ N/A
1. Determination of control
Control is the power of an investor over the investee to obtain variable returns by participating in therelevant activities of the investee, and to affect the amount of the return by exercising the power over theinvestee.
2. Method of preparation of consolidated financial statements
The parent company includes all of its controlled subsidiaries in its consolidated financial statements.The consolidated financial statements are prepared by the parent company in accordance with the
Accounting Standards for Business Enterprises No. 33 - Consolidated Financial Statements, on the basisof the respective financial statements of the parent company and its subsidiaries, by reference to otherrelevant data.
8. Classification of joint arrangements and accounting treatment of joint operations
√ Applicable□ N/A
1. Joint arrangements are classified into joint operations and joint ventures.
2. When the Company is a party to a joint operation, the Company recognizes the following items
relating to its interest in the joint operation:
(1) the assets individually held by the Company, and the Company’s share of the assets held jointly;
(2) the liabilities incurred individually by the Company, and the Company’s share of the liabilities
incurred jointly;
(3) the Company’s revenue from the sale of its share of output of the joint operation;
(4) the Company’s share of revenue from the sale of assets by the joint operation; and
(5) the expenses incurred individually by the Company, and the Company’s share of the expenses
incurred jointly.
9. Recognition of cash and cash equivalents
Cash equivalents are the Company’s short-term (generally due within 3 months from the acquisition date),highly liquid investments that are readily convertible to known amounts of cash and which are subject toan insignificant risk of changes in value.
10. Translation of transactions and financial statements denominated in foreign currencies
√ Applicable□ N/A
1. Transactions denominated in foreign currencies
A foreign currency transaction is recorded in RMB, on initial recognition, by applying the spotexchange rate on the date of the transaction. At the balance sheet date, foreign currency monetary itemsare translated into RMB using the spot exchange rates at the balance sheet date. Exchange differencesarising from such translations are recognized in profit or loss for the current period, except for thoseattributable to foreign currency borrowings that have been taken out specifically for the acquisition orconstruction of qualifying assets and accrued interest. Non-monetary items denominated in foreigncurrencies that are measured at historical cost are translated using the foreign exchange rates ruling at thetransaction dates, without adjusting the amounts in RMB. Non-monetary items denominated in foreigncurrencies that are measured at fair value are translated using the foreign exchange rates prevailing at thedates when the fair value was determined, with exchange differences arising from such translationsrecognized in profit or loss for the current period or other comprehensive income.
2. Translation of financial statements denominated in foreign currencies
Asset and liability items on the balance sheet are translated at the spot exchange rate prevailing at thebalance sheet date; owners’ equity items other than “retained profits” are translated at the spot exchangerates at the dates on which such items arose; income and expense items in the income statement aretranslated at the exchange rates that approximate the actual spot exchange rates on the dates of thetransactions. Exchange differences arising from such translations are recognized in other comprehensiveincome.
11. Financial instruments
√ Applicable□ N/A
1. Classification of financial assets and financial liabilities
On initial recognition, the Company’s financial assets are classified into three categories, including
(1) financial assets at amortized cost; (2) financial assets at fair value through other comprehensive income;
and (3) financial assets at fair value through profit or loss for the current period.
Upon initial recognition, the Company’s financial liabilities are classified into four categories,including (1) financial liabilities at fair value through profit or loss for the current period; (2) financialliabilities arising as a result of the transfer of financial assets not meeting the criteria for derecognition or
continuing involvement in the financial assets transferred; (3) financial guarantee contracts not fallingunder Clauses (1) and (2), and loan commitments not falling under Clause (1) and below market interestrate; and (4) financial liabilities at amortized cost.
2. Recognition, measurement and derecognition of financial assets and financial liabilities
(1) Recognition and initial measurement of financial assets and financial liabilities
When the Company becomes a party to a financial instrument contract, a financial asset or liabilityis recognized. Financial assets and liabilities are initially measured at fair value. Transaction costs relatingto financial assets or liabilities at fair value through profit or loss are directly recognized in profit or lossfor the current period. Transaction costs relating to other kinds of financial assets or liabilities are includedin their initially recognized amount. However, the accounts receivable that do not contain any significantfinancing component or are recognized by the Company without taking into consideration the financingcomponents under the contracts with a term of less than one year upon initial recognition are initiallymeasured at transaction price defined in the Accounting Standards for Business Enterprises No. 14 -Revenue.
(2) Subsequent measurement of financial assets
1) Financial assets at amortized cost
Financial assets at amortized cost are subsequently measured at amortized cost using the effectiveinterest method. Gains or losses arising from financial assets at amortized cost that do not belong to anyhedging relationship are recognized in profit or loss for the current period upon derecognition,reclassification, amortization using the effective interest method or recognition of impairment.
2) Investments in debt instruments at fair value through other comprehensive income
Investments in debt instruments at fair value through other comprehensive income are subsequentlymeasured at fair value. Interest, impairment losses or gains and exchange gains or losses calculated usingthe effective interest method are recognized in profit or loss for the current period, and other gains orlosses are recognized in other comprehensive income. Upon derecognition, the aggregate gains or lossespreviously recognized in other comprehensive income are transferred to profit or loss for the current period.
3) Investments in equity instruments at fair value through other comprehensive income
Investments in equity instruments at fair value through other comprehensive income are subsequentlymeasured at fair value. Dividends received (other than those received as recovery of investment cost) arerecognized in profit or loss for the current period, and other gains or losses are recognized in othercomprehensive income. Upon derecognition, the accumulated gains or losses previously recognized inother comprehensive income are transferred to retained earnings.
4) Financial assets at fair value through profit or loss for the current period
Financial assets at fair value through profit or loss for the current period are subsequently measuredat fair value, with gains or losses arising therefrom, including interest and dividend income, recognized inprofit or loss for the current period, except the financial assets belonging to any hedging relationship.
(3) Subsequent measurement of financial liabilities
1) Financial liabilities at fair value through profit or loss for the current period
Financial liabilities at fair value through profit or loss for the current period include financialliabilities held for trading (including derivatives classified as financial liabilities), and financial liabilitiesdirectly designated as at fair value through profit or loss for the current period. Such financial liabilitiesare subsequently measured at fair value. Changes in the fair value of financial liabilities designated as atfair value through profit or loss for the current period arising out of changes in the Company’s own creditrisk are recognized in other comprehensive income, unless such treatment will result in or increase anyaccounting mismatch in profit or loss. Other gains or losses arising from such financial liabilities,including interest expenses and changes in fair value not arising out of changes in the Company’s owncredit risk, are recognized in profit or loss for the current period, except the financial liabilities belongingto any hedging relationship. Upon derecognition, the accumulated gains or losses previously recognizedin other comprehensive income are transferred to retained earnings.
2) Financial liabilities arising as a result of the transfer of financial assets not meeting the criteria for
derecognition or continuing involvement in the financial assets transferredSuch financial liabilities are measured in accordance with the Accounting Standards for BusinessEnterprises No. 23 - Transfer of Financial Assets.
3) Financial guarantee contracts not falling under Clauses 1) and 2), and loan commitments not falling
under Clause 1) and below market interest rateUpon initial recognition, such financial liabilities are subsequently measured at the higher of ①provision for impairment losses determined according to the policy for impairment of financialinstruments; and ② balance of the initially recognized amount after deduction of the accumulatedamortization determined in accordance with the relevant provisions of the Accounting Standards forBusiness Enterprises No. 14 - Revenue.
4) Financial liabilities at amortized cost
Financial liabilities at amortized cost are subsequently measured at amortized cost using the effectiveinterest method. Gains or losses on financial liabilities at amortized cost that do not belong to any hedgingrelationship are recognized in profit or loss for the current period upon derecognition or amortization usingthe effective interest method.
(4) Derecognition of financial assets and financial liabilities
1) Financial assets are derecognized when:
① the contractual right to receive cash flows from the financial assets has expired; or
② the financial assets have been transferred and such transfer meets the criteria for derecognition of
financial assets as set forth in the Accounting Standards for Business Enterprises No. 23 - Transfer ofFinancial Assets.
2) A financial liability (or part thereof) is derecognized accordingly where its present obligation (or
part thereof) is discharged.
3. Recognition and measurement of financial assets transferred
When a financial asset of the Company is transferred, if substantially all the risks and rewardsincidental to the ownership of the financial asset have been transferred, the financial asset is derecognized,and the rights and obligations incurred or retained in such transfer are separately recognized as assets orliabilities (as the case may be); if substantially all the risks and rewards incidental to the ownership of thefinancial asset have been retained, the financial asset transferred continues to be recognized. If theCompany neither transfers nor retains a substantial portion of all risks and rewards incidental to theownership of the financial asset, then: (1) if the Company does not retain control over the financial asset,the financial asset is derecognized, and the rights and obligations incurred or retained in such transfer areseparately recognized as assets or liabilities (as the case may be); and (2) if the Company retains controlover the financial asset, the financial asset continues to be recognized to the extent of the Company’scontinuing involvement in the financial asset transferred, and a corresponding liability is recognized.
If an entire transfer of a financial asset meets the criteria for derecognition, the difference between
(1) the book value of the financial asset transferred at the date of derecognition; and (2) the sum of the
consideration received from the transfer and the portion of the accumulated amount of changes in fairvalue directly recorded as other comprehensive income originally that corresponds to the partderecognized (where the financial asset transferred is an investment in debt instruments at fair valuethrough other comprehensive income) is recognized in profit or loss for the current period. If part of afinancial asset is transferred and the part transferred entirely meets the criteria for derecognition, the totalbook value of the financial asset immediately prior to the transfer is allocated between the partderecognized and the part not derecognized in proportion to their relative fair value at the date of transfer,and the difference between (1) the book value of the part derecognized; and (2) the sum of theconsideration received from the transfer of the part derecognized and the portion of the accumulatedamount of changes in fair value directly recorded as other comprehensive income originally thatcorresponds to the part derecognized (where the financial asset transferred is an investment in debtinstruments at fair value through other comprehensive income) is recognized in profit or loss for the
current period.
4. Determination of fair value of financial assets and financial liabilities
The Company adopts the valuation techniques applicable to the current situations and with sufficientdata available and support of other information, to determine the fair value of financial assets and financialliabilities. The Company classifies the inputs used by the valuation techniques in the following levels anduses them in turn:
(1) Level 1 inputs: quoted market price (unadjusted) in an active market for an identical asset or
liability available at the date of measurement;
(2) Level 2 inputs: inputs other than inputs included within Level 1 that are observable directly or
indirectly. This category includes quoted prices for similar assets or liabilities in active markets, quotedprices for identical or similar assets or liabilities in inactive markets, observable inputs other than quotedprices (such as interest rate and yield curves observable during regular intervals of quotation), and inputsvalidated by the market; and
(3) Level 3 inputs: inputs that are unobservable. This category includes interest rate or stock volatility
that cannot be directly observed or validated by observable market data, future cash flows from retirementobligation incurred in business combinations, and financial forecasts made using own data.
5. Impairment of financial instruments
The Company determines the impairment and assesses provision for impairment losses of financialassets at amortized cost, investments in debt instruments at fair value through other comprehensive income,contract assets, lease receivable, loan commitments other than financial liabilities designated at fair valuethrough profit or loss for the current period, and financial guarantee contracts other than financial liabilitiesdesignated at fair value through profit or loss for the current period and financial liabilities arising as aresult of the transfer of financial assets not meeting the criteria for derecognition or continuinginvolvement in the financial assets transferred, on the basis of expected credit losses.
Expected credit loss is the weighted average of credit losses on financial instruments taking intoaccount the possibility of default. Credit loss is the difference between all contractual cash flows receivableunder the contract and estimated future cash flows discounted at the original effective interest rate, i.e. thepresent value of all cash shortage, wherein the Company’s purchased or originated financial assets thathave become credit-impaired are discounted at their credit-adjusted effective interest rate.
With respect to purchased or originated financial assets that have become credit-impaired, at thebalance sheet date, the Company recognizes a loss allowance equal to the accumulated amount of changesin lifetime expected credit losses since initial recognition.
With respect to lease receivable, accounts receivable and contract assets that are formed fromtransactions under the Accounting Standards for Business Enterprises No. 14 - Revenue, the Companyuses the simple measurement method and recognizes a loss allowance equal to the lifetime expected creditloss.
With respect to financial assets not using the measurement methods stated above, at each balancesheet date, the Company assesses whether the credit risk has increased significantly since initialrecognition, and recognizes a loss allowance equal to the lifetime expected credit loss if the credit risk hasincreased significantly since initial recognition, or to the expected credit losses within the next 12 monthsif the credit risk has not increased significantly since initial recognition.
The Company uses reasonable and supportable information, including forward-looking information,and compares the possibility of default at the balance sheet date with the possibility of default upon initialrecognition, to determine whether the credit risk of the financial instruments has increased significantlysince initial recognition.
At the balance sheet date, if the Company determines that a financial instrument only has low creditrisk, the Company assumes that its credit risk has not increased significantly since initial recognition.
The Company assesses expected credit risk and measures expected credit losses of financialinstruments individually or collectively. When assessing the financial instruments collectively, theCompany includes the financial instruments in different groups according to their common risk
characteristics.At each balance sheet date, the Company re-assesses the expected credit losses, with the amount ofincrease in or reversal of loss allowance recognized in profit or loss for the current period as impairmentlosses or gains. With respect to a financial asset at amortized cost, its book value recorded in the balancesheet is written off against the loss allowance. With respect to an investment in debt instruments at fairvalue through other comprehensive income, the Company recognizes the loss allowance in othercomprehensive income, without reducing its book value.
6. Offsetting of financial assets and financial liabilities
Financial assets and financial liabilities are presented in the balance sheet separately, withoutoffsetting each other. However, the Company may represent the financial assets and financial liabilitieson a net basis in the balance sheet only if: (1) the Company has a legal right that is currently enforceableto set off the recognized financial assets and financial liabilities, and (2) the Company intends either tosettle on a net basis, or to realize the financial asset and settle the financial liability simultaneously.With respect to the transfer of financial assets not meeting the criteria for derecognition, the Companydoes not offset the financial assets transferred against the relevant liabilities.
7. Standard for recognizing and making provision of expected credit losses for receivables and
contract assets
(1) Receivables and contract assets for which the provision of expected credit losses is made by
combination of credit risk characteristicsCategory of combination
determining
| a group |
Method for measuring expected credit losses
receivable
Type of notes
By reference to historic credit loss experience, and takinginto account the current situations and prediction of futureeconomic conditions, calculate the expected credit lossesaccording to the default risk exposure and rate of lifetimeexpected credit loss.
| Bank acceptance bills |
| Commercial acceptance bills receivable |
Accounts receivable - group
consolidation
| of receivables from related parties in the scope of | Accounts |
receivable
parties in the
| scope of consolidation |
Accounts receivable -grouping by aging
Aging
into account the current situations and prediction of future
| economic conditions, prepare a comparison table of the |
aging of accounts receivable and rate of expected credit loss,
Contract assets - contractassets from related parties inthe scope of consolidation
| and calculate the expected credit losses. | |
| Contract assets from |
relatedparties in the
consolidation
| scope of | By reference to historic credit loss experience, and taking |
into account the current situations and prediction of futureeconomic conditions, calculate the expected credit lossesaccording to the default risk exposure and rate of lifetimeexpected credit loss.
Contract assets - grouping byaging
Aging
into account the current situations and prediction of future
| economic conditions, prepare a comparison table of the |
aging of contract assets and rate of lifetime expected credit
| loss, and calculate the expected credit losses. | ||
| Other receivables - grouping |
by aging
Aging
into account the current situations and prediction of future
| economic conditions, prepare a comparison table of the |
Category of combination
determining
| a group |
Method for measuring expected credit losses
Long-term receivables -grouping by aging
Aging
| aging of other receivables and rate of lifetime expected credit loss, and calculate the expected credit losses. |
| By reference to historic credit loss experience, and taking |
into account the current situations and prediction of futureeconomic conditi
aging of long-term receivables and rate of lifetime expected
| credit loss, and calculate the expected credit losses. |
(2) Comparison table of the aging and rate of expected credit loss
Aging
expected creditloss for accounts
| receivable (%) |
Rate of expected
credit loss forcontract assets (%)
Rate of expectedcredit loss for long-term receivables (%)
Rate of expectedcredit loss for other
receivables (%)
(including, the
| same below) |
5.00 5.00 5.00 5.001-2 years
| 25.00 | 25.00 | 25.00 | 25.00 |
2-3 years
| 50.00 | 50.00 | 50.00 | 50.00 |
Over 3 years
| 100.00 | 100.00 | 100.00 | 100.00 |
The age of accounts receivable, contract assets, other receivables, and long-term receivables shall becalculated from the date of occurrence of such amounts.
(3) Standard for recognizing receivables and contract assets for which the provision of expected credit
losses shall be made individuallyThe Company makes provision of expected credit losses individually for receivables and contract assetswith obviously different credit risks and combinations of credit risks.
12. Notes receivable
√ Applicable□ N/A
Category of combination and determination basis for which the provision of bad debts is made bycombination of credit risk characteristics
√ Applicable□ N/A
Refer to V.11 of Section X for details.Age calculation method for identifying combination of credit risk characteristics based on theaccount age
√ Applicable□ N/A
Refer to V.11 of Section X for details.Determination standard for individually making provision for bad debts
√ Applicable□ N/A
Refer to V.11 of Section X for details.
13. Accounts receivable
√ Applicable□ N/A
Category of combination and determination basis for which the provision of bad debts is made bycombination of credit risk characteristics
√ Applicable□ N/A
Refer to V.11 of Section X for details.Age calculation method for identifying combination of credit risk characteristics based on theaccount age
√ Applicable□ N/A
Refer to V.11 of Section X for details.Determination standard for individually making provision for bad debts
√ Applicable□ N/A
Refer to V.11 of Section X for details.
14. Receivables financing
√ Applicable□ N/A
Category of combination and determination basis for which the provision of bad debts is made bycombination of credit risk characteristics
√ Applicable□ N/A
Refer to V.11 of Section X for details.Age calculation method for identifying combination of credit risk characteristics based on theaccount age
√ Applicable□ N/A
Refer to V.11 of Section X for details.Determination standard for individually making provision for bad debts
√ Applicable□ N/A
Refer to V.11 of Section X for details.
15. Other receivables
√ Applicable□ N/A
Category of combination and determination basis for which the provision of bad debts is made bycombination of credit risk characteristics
√ Applicable□ N/A
Refer to V.11 of Section X for details.Age calculation method for identifying combination of credit risk characteristics based on theaccount age
√ Applicable□ N/A
Refer to V.11 of Section X for details.Determination standard for individually making provision for bad debts
√ Applicable□ N/A
Refer to V.11 of Section X for details.
16. Inventories
√ Applicable□ N/A
Categories of inventories, costing method of inventories transferred out, inventory counting system,and amortization method for low cost and short-lived consumable items and packaging materials
√ Applicable□ N/A
1. Categories of inventories
Inventories include finished goods or merchandise held by the Company for sale in the ordinarycourse of business, or work in progress in the process of production for such sale, or materials or suppliesto be consumed in the production process or in the rendering of services.
2. Valuation method of inventories upon delivery
The actual cost of inventories upon delivery is calculated using the moving weighted average method.
3. Inventory count system
The perpetual inventory system is maintained for stock system.
4. Amortization method for low cost and short-lived consumable items and packaging materials
(1) Low cost and short-lived consumable items
Low cost and short-lived consumable items are amortized using the immediate write-off method.
(2) Packaging materials
Packaging materials are amortized using the immediate write-off method.Recognition standard and method for provision of impairment for inventory
√ Applicable□ N/A
At the balance sheet date, inventories are measured at the lower of cost and net realizable value. Ifthe net realizable value is below the cost, a provision for decline in value of inventories is made. Forinventories directly used for sale, the net realizable value is determined as the estimated selling price inthe ordinary course of business less the estimated costs necessary to make the sale and relevant taxes. Forinventories required for processing, the net realizable value is determined as the estimated selling price offinished goods in the ordinary course of business less the estimated costs of completion, and the estimatedcosts necessary to make the sale and relevant taxes. As at the balance sheet date, if in the same item of
inventories, some are agreed with contractual prices while the others are not, the net realizable value forsuch inventories is determined separately, and compared with the costs of the two parts of inventoriesdistinctively, as to determine the provisions or reversal of provisions for decline in value of inventoriesseparately.Category of combination and determination basis for provision for impairment of inventory bycombination, and basis for determining the net realizable value of different types of inventories
□ Applicable√ N/A
Calculation method and determination basis of the net realizable value of each age combination forwhich the net realizable value of inventories is determined by age
□ Applicable√ N/A
17. Contract assets
√ Applicable□ N/A
Recognition method and criteria of contract assets
√ Applicable□ N/A
The Company presents contract assets or contract liabilities in the balance sheet according to therelationship between the performance of contractual obligations and payment by customers. Contractassets and contract liabilities under a same contract are presented at the net amount after offsetting eachother.The Company presents its own right to unconditionally (that is, only depending on the lapse of time)receive consideration from customers as the accounts receivable, and the right to receive the considerationfor which the goods that have been transferred to customers (that is, depending on factors other than thelapse of time) as the contract assets.The obligations of the Company for transferring goods to customers corresponding to considerationsthat have been received or receivable are presented as contract liabilities.Category of combination and determination basis for which the provision of bad debts is made bycombination of credit risk characteristics
√ Applicable□ N/A
Refer to V.11 of Section X for details.Age calculation method for identifying combination of credit risk characteristics based on theaccount age
√ Applicable□ N/A
Refer to V.11 of Section X for details.Determination standard for individually making provision for bad debts
√ Applicable□ N/A
Refer to V.11 of Section X for details.
18. Non-current assets or disposal groups classified as held for sale
□ Applicable√ N/A
Recognition standard and accounting method for non-current assets or disposal groups classified asheld for sale
□ Applicable√ N/A
Determination standard and presentation method for discontinued operation
□ Applicable√ N/A
19. Long-term equity investments
√ Applicable□ N/A
1. Judgments on joint control and significant influence
Joint control is the contractually agreed sharing of control of an arrangement, which exists only whendecisions about the relevant activities of such arrangement require the unanimous consent of the partiessharing control. Significant influence is the power to participate in the financial and operating policydecisions of the investee but does not control or jointly control over those policies.
2. Determination of investment cost
(1) In case of an equity investment acquired through a business combination involving entities under
common control, if the acquirer pays consideration for the business combination by cash, transfer of non-
monetary assets, assumption of liabilities or issuance of equity securities, the initial investment cost of thelong-term equity investment is the Company’s share of the book value of the owners’ equity of the acquireein the consolidated financial statements of the ultimate controller at the date of combination. Thedifference between: (i) the initial investment cost of the long-term equity investment; and (ii) the bookvalue of the consideration paid for the combination or the total par value of the shares issued is treated asan adjustment to the capital reserve. In case the capital reserve is not sufficient to absorb the difference,the remaining balance is adjusted against the retained earnings.For a long-term equity investment acquired through a business combination involving entities undercommon control that is achieved through multiple transactions by steps, the Company shall judge whethersuch transactions constitute a package deal. If such transactions constitute a package deal, the Companyaccounts for such transactions as one transaction to acquire control. If such transactions do not constitutea package deal, the initial investment cost is the Company’s share of the book value of the net assets ofthe acquiree in the consolidated financial statements of the ultimate controller at the date of combination.The difference between: (i) the initial investment cost of the long-term equity investment at the date ofcombination; and (ii) the sum of the book value of long-term equity investment before the combinationand the book value of the consideration paid for acquisition of the additional shares at the date ofcombination is adjusted against the capital reserve. In case the capital reserve is not sufficient to absorbthe difference, the remaining balance is adjusted against the retained earnings.
(2) In case of an equity investment acquired through a business combination not involving entities
under common control, the initial investment cost is the fair value of the carrying amount of theconsideration paid for the combination at the date of acquisition.With respect to a long-term equity investment acquired through a business combination not involvingentities under common control that is achieved through multiple transactions by steps, the accountingtreatment thereof in the separate financial statements is different from that in the consolidated financialstatements as stated below:
1) In the separate financial statements, the sum of the book value of the equity investment originally
held in the acquiree and the additional investment cost incurred is recorded as the initial investment costof the equity investment changed into the cost method.
2) In the consolidated financial statements, it is required to judge whether such transactions constitute
a package deal. If such transactions constitute a package deal, the Company accounts for such transactionsas one transaction to acquire control. If such transactions do not constitute a “package deal”, the Companyre-measures the fair value of the equity held in the acquiree prior to the date of acquisition, and recordsthe difference between the fair value and the book value as investment income for the current period; ifthe equity held in the acquiree prior to the date of acquisition involves other comprehensive income underequity method, such other comprehensive income is transferred to the income of the period in which thedate of acquisition falls, except for other comprehensive income arising from re-measurement by theinvestee of changes in net liabilities or net assets of defined benefit plans.
(3) In the event of no business combination: the initial investment cost is the purchase price actually
paid if it is acquired by cash, or the fair value of the equity securities issued if it is acquired throughissuance of equity securities, or determined in accordance with the Accounting Standards for BusinessEnterprises No. 12 - Debt Restructuring if it is acquired through debt restructuring, or determined inaccordance with the Accounting Standards for Business Enterprises No. 7 - Exchange of Non-monetaryAssets if it is acquired through exchange of non-monetary assets.
3. Subsequent measurement and recognition of profit or loss
Long-term equity investments in investees are measured using the cost method. Long-term equityinvestments in associates and joint ventures are measured using the equity method.
20. Investment property
N/A
21. Fixed assets
(1). Criteria for recognition
√ Applicable□ N/A
Fixed assets are tangible assets held for production of goods, rendering of service, lease or operationand management with a useful life of more than one accounting year. A fixed asset is recognized if theeconomic benefits relating to it are very likely to flow to the Company and its cost can be reliably measured.
(2). Method of depreciation
√ Applicable□ N/A
Category
Method ofdepreciation
Depreciationperiod (years)
Residual ratio
(%)
depreciation rate
| (%) | |||
| Machinery and equipment | Straight line method |
5 5.00 19.00
| Transportation equipment | Straight line method |
5 5.00 19.00
equipment and
| others |
Straight linemethod
3-5 5.00 19.00-31.67
| Operating leased equipment | Straight line method |
3, 7 5.00 31.67, 13.57
22. Construction in progress
√ Applicable□ N/A
1. Construction in progress is recognized if the economic benefits relating to it are very likely to flow
to the Company and its cost can be reliably measured. A construction in progress is measured at the actualcost incurred before it is completed and ready for intended use.
2. When a construction in progress is ready for intended use, it is transferred to fixed assets at its
actual construction cost. A construction in progress that is ready for intended use but the final settlementof which has not yet been completed is transferred to fixed assets at estimated value first, and after thecompletion of final settlement, the estimated value is adjusted according to the actual cost, but the accrueddepreciation is not adjusted.
Category
| Standards and timing for the transfer of construction in progress to fixed assets | |
| Machinery, equipment, and operating leased equipment | When reaching the standard required in the design or specified in the contract after installation and commissioning |
| Houses and buildings | When reaching the working condition for its intended use |
23. Borrowing costs
√ Applicable□ N/A
1. Recognition for capitalization of borrowing costs
Borrowing costs incurred by the Company that are directly attributable to the acquisition,construction or production of a qualifying asset are capitalized as part of the cost of that asset. Otherborrowing costs are recognized as expenses and charged to the current profit or loss.
2. Capitalization period of borrowing costs
(1) Borrowing costs are capitalized when all of the following conditions are met: 1) capital
expenditure has been incurred; 2) borrowing costs have been incurred; and 3) activities relating to theacquisition, construction or production of the asset that are necessary to prepare the asset for its intendeduse or sale have commenced.
(2) Where acquisition and construction or production of a qualified asset is interrupted abnormally
and the interruption period lasts for more than 3 months, the capitalization of the borrowing costs shall be
suspended. The borrowing costs incurred during these periods shall be recognized as expenses for thecurrent period until the acquisition, construction or production of a qualifying asset is resumed.
(3) Capitalization of borrowing costs shall be ceased when acquisition, construction or production of
the qualifying asset has prepared for its intended use or sale.
3. Capitalization rate and capitalization amount of borrowing costs
As for the specific borrowings for the acquisition and construction or production of assets qualifyingfor capitalization, the to-be-capitalized amount of interests shall be determined in light of the actual interestexpense incurred on the current specific borrowings (including the amortization of discounts or premiumsdetermined using the effective interest method) minus the income of interests earned from the unusedborrowings by depositing it in the bank or investment income from such borrowing by making it as atemporary investment; where a general borrowing is used for the acquisition and construction orproduction of assets qualifying for capitalization, the Company shall calculate and determine the to-be-capitalized amount of interests on the general borrowing by multiplying the weighted average value of theaccumulative expenditures to asset minus the specific borrowing by the capitalization rate of the generalborrowing used.
24. Biological assets
□ Applicable√ N/A
25. Oil and gas assets
□ Applicable√ N/A
26. Intangible assets
(1). Service life and determination basis thereof, estimation, amortization method,
or verification
process
√ Applicable□ N/A
1. Intangible assets include land use rights, patents rights, and software etc. and are initially measured
at cost.
2. An intangible asset with a finite service life is amortized over its service life in a systematical and
rational expected realization of economic benefits relative to the intangible asset, or is amortized using thestraight-line method if it is impossible to determine expected realization reliably. Specifically including:
Item
| Service life and determination basis thereof | Amortization method | |
| Land use rights | 30 years/statutory rights | Straight-line method |
| Patent rights | 10 years/statutory rights | Straight-line method |
| Software | 3-5 years/statutory rights | Straight-line method |
(2). Collection scope of R&D expenditures and relevant accounting method
√ Applicable□ N/A
1. Collection scope of R&D expenditures
(1) Personnel and labor expenses
The personnel and labor expenses include the salaries, premiums for basic pension insurance,premiums for basic medical insurance, premiums for unemployment insurance, premiums for employmentinjury insurance, premiums for birth insurance, and housing funds of the Company’s R&D staff, and thelabor expenses of external R&D personnel.
Where an R&D person serves multiple R&D projects at the same time, the personnel expenses arerecognized based on the records of working hours of the R&D personnel in respective R&D projectsprovided by the management departments of the Company, and are allocated in proportion among theR&D projects.
Where the R&D employees and external R&D personnel directly engaging in R&D activities alsoget involved in non-R&D activities, the Company allocates the personnel expenses actually incurred forsuch personnel between the R&D expenses and the production and operation expenses in proportion to
the actual working hours or by using another reasonable method based on the records of working hours ofsuch R&D personnel at different posts.
(2) Expenses of direct investments
The expenses of direct investments refer to the relevant expenditures actually incurred by theCompany for conducting R&D activities, including: 1) expenses of materials, fuels, and power directlyconsumed; 2) expenses for developing and manufacturing molds and process equipment for intermediatetests and product trials, expenses for the procurement of samples, sample devices, and general tests notconstituting fixed assets, and inspection expenses for trial products; and 3) the expenses for themaintenance, adjustment, check, inspection, repair, etc. of the instrument and devices used in R&Dactivities.
(3) Depreciation expenses and long-term prepaid expenses
Depreciation expenses refer to the depreciation costs of instruments, equipment, and buildings usedin R&D activities.
Where the instrument, equipment, and buildings used in R&D activities are also used for non-R&Dactivities at the same time, necessary records are kept for the use of such instruments, equipment, andbuildings, and the depreciation expenses actually incurred are allocated between the R&D expenses andthe production and operation expenses by using a reasonable method based on the actual working hoursand areas in use.
Long-term prepaid expenses refer to the long-term prepaid expenses incurred during thereconstruction, modification, decoration, and repair of R&D facility, which shall be collected accordingto the expenditures actually incurred, and be amortized on an average basis for the specified period.
(4) Amortization expenses of intangible assets
The amortization expenses of intangible assets refer to the amortization expenses of software,intellectual property rights, non-patented technologies (know-how, license, design, calculation method,etc.) used in R&D activities.
(5) Development expenses for outsourced R&D
Development expenses for outsourced R&D refer to the expenses incurred in R&D activitiesconducted by other domestic and overseas institutions or individuals engaged by the Company (the resultsof such R&D activities being owned by the Company and being closely related to the main business ofthe Company).
(6) Other expenses
Other expenses refer to other expenses directly related to R&D activities except for the expensesabove, including expenses for technical books and materials, material translation expenses, expertconsulting fees, insurance premiums for high-tech R&D projects, the expense for the search,demonstration, evaluation, appraisal and acceptance of R&D results, expenses for the application,registration, and agency of intellectual property rights, meeting expenses, travel expenses, communicationexpenses, etc.
2. Expenditures incurred during the research phase of internal R&D projects are included in profit or
loss for the current period when incurred. Expenditures on an internal research and development projectat the development phase are recognized as an intangible asset if all the following conditions are met: (1)it is technically feasible to complete the intangible asset so that it will be available for use or sale; (2) it isintended to complete the intangible asset so that it will be available for use or sale; (3) the pattern in whichthe intangible asset will generate economic results can demonstrate the existence of a market for the outputof the intangible asset or the intangible asset itself, or if it is to be used internally, the usefulness of theintangible asset; (4) there are sufficient technical, financial and other resources available to complete thedevelopment activities and to use or sell the intangible asset; and (5) the expenditures attributable to thedevelopment of the intangible asset can be reliably measured.
27. Impairment of long-term assets
√ Applicable□ N/A
For long-term equity investments, fixed assets, construction in progress, right-of-use assets,intangible assets with a finite service life and other long-term assets, if there’s an indication of impairmentat the balance sheet date, the Company assesses their recoverable amount. Goodwill arising from businesscombinations and intangible assets with an infinite service life are tested for impairment every yearregardless of whether there’s an indication of impairment. Goodwill is tested for impairment together withthe relevant groups of assets or combinations of groups of assets.
If the recoverable amount of a long-term asset is less than its carrying amount, the difference ismeasured as impairment loss of the asset and recognized in profit or loss for the current period.
28. Long-term prepaid expenses
√ Applicable□ N/A
Long-term prepaid expenses are expenses that have already been incurred but should be amortizedover a period of more than one year (excluding one year). Long-term prepaid expenses are stated as theamount actually incurred and shall be amortized evenly by stages within the benefit period or specifiedperiod. If an item of long-term prepaid expenses will not benefit the subsequent periods, the amortizedvalue of the item that has not yet been amortized is wholly transferred to profit or loss for the currentperiod.
29. Contract liabilities
√ Applicable□ N/A
Refer to V.17 of Section X for details.
30. Employee benefits
(1). Accounting treatment of short-term employee benefits
√ Applicable□ N/A
The short-term employee benefits actually incurred are recognized as liabilities in the accountingperiod during which employee services are rendered, and included in profit or loss for the current periodor the cost of related assets.
(2). Accounting treatment of post-employment benefits
√ Applicable□ N/A
Post-employment benefits are classified into defined contribution plans and defined benefit plans.
(1) In the accounting period during which employee services are rendered, the amount in contribution
as calculated according to the defined contribution plan is recognized as liabilities and included in profitor loss for the current period or the cost of related assets.
(2) The accounting treatment of a defined benefit plan generally involves the following steps:
1) According to the projected unit credit method, use unbiased and consistent actuarial assumptions
to estimate demographic variables and financial variables, measure the obligation arising from the definedbenefit plan and determine the period to which the relevant obligation belongs. Meanwhile, discount theobligation arising from the defined benefit plan, in order to determine the present value of the definedbenefit plan obligation and the current service cost;
2) If the defined benefit plan has assets, the deficit or surplus resulting after reducing the present
value of the defined benefit plan obligation by the fair value of the defined benefit plan is recognized as anet liability or asset of the defined benefit plan. If the defined benefit plan has a surplus, the net assets ofthe defined benefit plan are measured at the lower of surplus in the defined benefit plan and asset ceiling;
3) At the end of the reporting period, the cost of employee benefits arising from the defined benefit
plan is recorded as service cost, net interest on the net liabilities or net assets of the defined benefit plan,and changes arising from re-measurement of the net liabilities or net assets of the defined benefit plan,wherein the service cost and the net interest on the net liabilities or net assets of the defined benefit planare included in profit or loss for the current period or the cost of related assets, and the changes arisingfrom re-measurement of the net liabilities or net assets of the defined benefit plan are included in othercomprehensive income, which will not be reserved to profit or loss in subsequent periods, but may betransferred within the scope of equity.
(3). Accounting treatment of termination benefits
√ Applicable□ N/A
If dismissal benefits are provided to employees, the liabilities of employee benefits from the dismissalbenefits are recognized at the earlier of the following and are recognized in the profit or loss for the currentperiod: (1) when the Company can no longer withdraw the offer of termination benefits as a result oftermination of employment or redundancy; or (2) the Company recognizes the restructuring costs orexpenses relating to payment of termination benefits.
(4). Accounting treatment of other long-term employee benefits
□ Applicable√ N/A
31. Provisions
√ Applicable□ N/A
1. An obligation arising from any external guarantee, litigation, product quality warranty, onerous
contract or other contingencies is recognized as a provision if it is a present obligation assumed by theCompany, and it is probable that an outflow of resources embodying economic benefits will be requiredto settle the obligation, and the amount of the obligation can be reliably measured.
2. The amount recognized as a provision is the best estimate of the consideration required to settle
the present obligation. The book value of provisions is reviewed at the balance sheet date.
32. Share-based payments
√ Applicable□ N/A
1. Categories of share-based payments
Share-based payments include equity-settled share-based payments and cash-settled share-basedpayments.
2. Accounting treatment for implementation, modification and termination of share-based payment
plan
(1) Equity-settled share-based payments
Equity-settled share-based payments in exchange for services rendered by employees that can beexecuted immediately upon being granted, are measured at the fair value of the equity instruments at thegrant date, and recognized as related costs or expenses with a corresponding adjustment to capital reserve.At each balance sheet date during the vesting period, equity-settled share-based payments in exchange forservices rendered by employees that cannot be executed until services in the vesting period are completedor required performance conditions are satisfied, are measured at the fair value of the equity instrumentsat the grant date based on the best estimate of exercisable numbers of equity instruments, and recognizedas related costs or expenses with a corresponding adjustment to capital reserve.
For equity-settled share-based payments in exchange for services rendered by other parties, if the fairvalue of services from other parties can be measured reliably, they are measured at the fair value of servicesfrom other parties at the date when such services are received. If the fair value of services from otherparties cannot be measured reliably but the fair value of the equity instruments can be measured reliably,they are measured at the fair value of the equity instruments at the date when such services are received.The fair value of the equity instruments is recognized as related costs or expenses, with a correspondingincrease in owners’ equity.
(2) Cash-settled share-based payments
Cash-settled share-based payments in exchange for services rendered by employees that can beexecuted immediately upon being granted, are recognized as related costs or expenses based on the fairvalue of liabilities assumed by the Company at the grant date, with a corresponding increase in liability.At each balance sheet date during the vesting period, cash-settled share-based payments in exchange forservices rendered by employees that cannot be executed until services in the vesting period are completedor required performance conditions are satisfied, are measured at the fair value of liabilities assumed bythe Company based on the best estimate of exercisable conditions, and recognized as related costs orexpenses and relevant liabilities.
(3) Modification and termination of share-based payment plan
If the modification increases the fair value of the equity instruments granted, the Company willinclude the incremental fair value of the equity instruments granted in the measurement of the amountrecognized for services received. If the modification increases the number of equity instruments granted,the Company will include the fair value of additional equity instruments granted in the measurement ofthe amount recognized for services received. If the Company modifies the exercisable conditions of theshare-based payment plan in a manner beneficial to the employee, the Company will consider the modifiedexercisable conditions when dealing with exercisable conditions.If the modification decreases the fair value of the equity instruments granted, the Company willcontinue to measure the amount recognized for services received at the fair value of the equity instrumentsat the grant date without including the decremental fair value of the equity instruments. If the modificationdecreases the number of equity instruments granted, the Company will treat the decreased number as thecancelled number of equity instruments granted. If the Company modifies the exercisable conditions in amanner unbeneficial to the employee, the Company will not consider the modified exercisable conditionswhen dealing with exercisable conditions.If cancellation or settlement of the equity instruments granted occurs (not due to unsatisfaction ofexercisable conditions) during the vesting period, the Company will account for the cancellation orsettlement of the equity instruments granted as an acceleration of vesting, and recognize immediately theamount that otherwise would have been recognized over the remainder of the vesting period.
33. Preferred shares, perpetual bonds and other financial instruments
□ Applicable√ N/A
34. Revenue
(1). Accounting policies adopted for revenue recognition and measurement by the type of business
√ Applicable□ N/A
1. Principles for revenue recognition
On the commencement date of a contract, the Company evaluates the contract, identifies eachindividual performance obligation contained therein and determines whether each individual performanceobligation is performed over time or at a certain point in time.
When meeting one of the following criteria, it belongs to the obligation performed over time,otherwise it constitutes the obligation performed at a certain point in time: (1) the customer obtains andconsumes the economic benefits generated by the Company’s performance when the Company performsthe contract; (2) the customer can control the products under construction in the process of the Company’sperformance; (3) the products produced in the process of the Company’s performance have irreplaceableuses, and the Company has the right to collect payment for the cumulative performance that has beencompleted up to date throughout the term of the contract.
For the obligation performed over time, the Company recognizes the revenue based on theperformance progress over time. When the performance progress cannot be reasonably determined, andthe costs incurred are expected to be recoverable, revenue is recognized to the extent of costs incurreduntil the performance progress can be reasonably determined. For the obligation performed at a certainpoint in time, the revenue is recognized at the time point when the customer obtains control of the relatedgoods and services. When judging whether the customer has obtained the control of goods, the Companyconsiders the following signs: (1) the Company has the current right to receive payment for such goods,that is, the customer has the current obligation to make payment for such goods; (2) the Company hastransferred the legal ownership of such goods to the customer, that is, the customer has the legal ownershipof such goods; (3) the Company has transferred such goods to the customer physically, that is, the customerhas taken possession of such goods physically; (4) the Company has transferred material risks and rewardsof such goods to the customer, that is, the customer has obtained material risks and rewards of such goods;
(5) the customer has accepted such goods; and (6) other signs that the customer has obtained control of
such goods.
2. Principles for revenue measurement
(1) The Company measures the revenue based on the transaction price allocated to individual
performance obligations. The transaction price is the amount of consideration to which the Company isentitled arising from the transfer of goods or services to the customer, excluding the amount collected onbehalf of a third party and expected to be returned to the customer.
(2) If there is variable consideration in the contract, the Company determines the best estimate of the
variable consideration based on the expected value or the most likely amount. However, variableconsideration is included in the transaction price if, and to the extent that, it is highly probable that itsinclusion will not result in a significant revenue reversal of accumulatively recognized revenue in thefuture when the uncertainty has been subsequently resolved.
(3) If there is a major financing component in the contract, the Company determines the transaction
price based on the presumed amount payable in cash when the customer obtains control of goods orservices. The difference between the transaction price and contract consideration is amortized using theeffective interest method during the term of the contract. If on the commencement of a contract, theCompany expects that the customer’s acquisition of control of goods or services is not more than one yearfrom the customer’s payment therefor, the major financing component in the contract will not beconsidered.
(4) If the contract has two or multiple performance obligations, the Company, on the commencement
of a contract, allocates the transaction price to each individual performance obligation in the contract byreference to relative standalone selling prices of goods promised thereby.
(2). Different revenue recognition and measurement methods for businesses of the same type but
operated under different modes
√ Applicable□ N/A
(1) Revenue from sales of goods
The performance obligation concerning sales of goods (primarily divided into goods sold to thedomestic market and goods exported to overseas markets) by the Company is taken as one satisfied at acertain point in time for the recognition of revenue.Goods sold to the domestic market: 1) Under the direct sale model and the distribution model, theCompany recognizes the revenue when the goods sent have been delivered to customers with customers’receipts given to the Company. For goods sold attached with return conditions, the Company recognizes
the revenue according to the amount of consideration to which it expects to be entitled in exchange fortransferring goods to customers, and recognizes the liabilities according to the expected amount to bereturned due to sales return against the revenue; for goods required for installment and inspection aftersales, the Company recognizes the revenue when such goods have been installed and inspected withcustomers’ acceptance certificate given to the Company; Where the Company shares the profit from thesales of products by downstream end customers, the revenue from such profit sharing is recognized at thebest estimate of the variable consideration determined according to an expected value, which variableconsideration is estimated reasonably at the time of revenue recognition. 2) Under the commissioned salesmode, the Company recognizes the revenue when it receives the list of commissioned sales from thecustomer.
Goods exported to overseas markets: The Company mainly adopts FCA for export of goods. Underthis mode, the Company recognizes revenue when it delivers goods at the designated location with exportcustoms clearance procedures completed.
(2) E-commerce platform revenue
In the e-commerce platform model, the e-commerce platform is responsible for product promotionand order management. Consumers place orders and pay directly to the e-commerce platform, and the e-commerce platform arranges third-party logistics through the Company or ships directly to the consumerby the e-commerce platform after receiving the consumer’s payment. The specific revenue recognitiontime points are: for domestic e-commerce platforms, revenue is recognized according to the time of end
customer receipt; for foreign e-commerce platforms, revenue is recognized after receiving theconfirmation list of the e-commerce platform after checking the reconciliation time agreed in the contract.
(3) Other incomes
Any other performance obligation of the Company is taken as one satisfied over time/at a certainpoint in time for the recognition of revenue. For installation services provided by the Company, theCompany recognizes the revenue when it has completed the services and received customers’ acceptancecertificate; for repair and maintenance services provided by the Company, the Company recognizes therevenue when it has completed the services and received payments; for patrol inspection services providedby the Company, the Company determines the service performance progress by using the output approach,and recognizes the revenue according to the performance progress; for patent licensing services providedby the Company, the Company recognizes the revenue when the patent licensing is completed and handedover; and for technology development services provided by the Company, the Company recognizes therevenue when it has completed the services or when the agreed time point of service acceptance is reached.
35. Contract costs
□ Applicable√ N/A
36. Government grants
√ Applicable□ N/A
1. Government grants are recognized if (1) the Company meets the conditions attaching to the
government grants; and (2) the Company will receive the government grants. Government grants in theform of monetary assets are measured at the amount received or receivable. Government grants in theform of non-monetary assets are measured at fair value, or if their fair value is unavailable, at a nominalamount.
2. Determination and accounting treatment of government grants related to assets
Government grants related to assets are government grants which are offered for purchasing,constructing or otherwise acquiring long-term assets as provided by the applicable government documents.In the absence of such express provision in the applicable government documents, government grantsrelated to assets are those with a primary condition that the Company should purchase, construct orotherwise acquire long-term assets. Government grants related to assets are offset against the book valueof the relevant assets or recognized as deferred income. Government grants related to assets recognized asdeferred income shall be included in profit or loss over the service life of the relevant assets on a reasonableand systemic basis. Government grants measured at nominal amounts are directly recognized in profit orloss for the current period. In case of a sale, transfer, retirement or damage of the relevant assets beforethe end of the intended service life, the balance of the unallocated deferred income is transferred to profitor loss for the period in which the assets are disposed of.
3. Determination and accounting treatment of government grants related to income
Government grants related to income are government grants other than those related to assets.Government grants related to both assets and income in which it is difficult to make a distinction betweenthe portion related to assets and the portion related to income are wholly classified as government grantsrelated to income.Government grants related to income as compensation for expenses or losses to beincurred in subsequent periods are recognized as deferred income and in the period for recognizing therelevant costs, expenses or losses, included in profit or loss for the current period or offset against therelevant costs. Government grants related to income as compensation for expenses or losses alreadyincurred are directly included in profit or loss for the current period or offset against the relevant costs.
4. Government grants related to the daily operations of the Company are recognized in other income
or offset against the relevant costs and expenses depending on the nature of the economic business.Government grants not related to the daily operations of the Company are recognized in non-operatingincome or expenses.
5. Accounting treatment of policy preferential loans and interest subsidies
(1) If the Ministry of Finance appropriates the interest subsidies to the lending bank, who then grants
the loan to the Company at the policy preferential rate, the loan is stated as the amount actually received,and the borrowing cost is calculated according to the principal of the loan and the policy preferential rate.
(2) If the Ministry of Finance directly appropriates the interest subsidies to the Company, the interest
subsidies are offset against the borrowing cost.
37. Deferred tax assets and deferred tax liabilities
√ Applicable□ N/A
1. The difference between the tax base of an asset or liability and its book value (or in case of an item
not recognized as an asset or liability whose tax base can be determined according to the applicable taxlaw, the difference between its tax base and book value) is recognized as a deferred tax asset or deferredtax liability according to the tax rate applicable to the period in which the asset or liability is expected tobe recovered or settled.
2. Deferred tax assets are recognized to the extent of the amount of income tax payable that will be
available in future periods against which deductible temporary differences are deductible. At the balancesheet date, deferred tax assets not recognized in prior periods are recognized if there’s conclusive evidencethat it is probable that sufficient taxable income will be available in future periods against which thedeductible temporary differences are deductible.
3. At the balance sheet date, the book value of deferred tax assets is reviewed and reduced to the
extent that it is no longer probable that sufficient taxable income will be available in future periods toallow the benefit of the deferred tax assets to be utilized. If it is probable that sufficient taxable incomewill be available, the reduced amount is reversed.
4. The income taxes and deferred taxes are included in profit or loss for the current period as income
tax expenses or gains, except the income taxes arising from any: (1) business combination; or (2)transaction or event directly recognized in owners’ equity.
5. The Company presents deferred tax assets and deferred tax liabilities meeting all of the following
conditions as net amounts after offsetting: (1) the Company has the legal right to settle the current taxassets and current tax liabilities on a net basis; and (2) the deferred income tax assets and deferred incometax liabilities are related to the income taxes levied by the same taxation authority on the same taxationsubject, or are not related to the same taxation subject but in every significant future period for reversingdeferred income tax assets and liabilities, the involved taxation subjects intend to settle the total currentincome tax asset and liabilities on a net basis or to realize the assets and settle the liabilities simultaneously.
38. Leases
√ Applicable□ N/A
Determination basis and accounting method for simplified accounting of short-term lease and low-value assets lease as the lessee
√ Applicable□ N/A
On the lease inception date, the Company recognizes a lease with a lease term of not more than 12months and not containing an option as a short-term lease, and recognizes a low-value assets lease for alease in which individually leased assets have a low value when they are new. If the Company subleasesor expects to sublease the leased asset, the original lease is not recognized as a low-value assets lease.For short-term leases and low-value assets leases, the Company recognizes lease payment in the costsof relevant assets or the profit or loss for the current period by using the straight-line method in each periodduring the lease term.Except for short-term leases and low-value assets leases subject to simplified treatment above, on thelease inception date, the Company recognizes right-of-use assets and lease liabilities for leases.
(1) Use right assets
Right-of-use assets are initially measured at cost; the cost includes: 1) initial measurement amount ofleased liabilities; 2) lease payments paid on or prior to the commencement of the lease term, net of thelease incentives (if any) received; 3) initial direct expenses incurred by the lessee; and 4) costs expectedto be incurred by the lessee for dismantling and removing the leased assets, restoring the place of theleased assets, or restoring the leased assets to the state provided under lease provisions.
The Company depreciates right-of-use assets by using the straight-line method. If there is reasonablecertainty that the lessee will obtain ownership of the leased asset by the end of the lease term, the Companydepreciates the leased asset over its service life. If there is no reasonable certainty that the lessee willobtain ownership of the leased asset by the end of the lease term, the Company depreciates the leased assetover the shorter of the lease term and its remaining service life.
(2) Lease liabilities
On the lease inception date, the Company recognizes the present value of lease payments not paid aslease liabilities. The interest rate implicit in the lease is used as the discount rate for calculating the presentvalue of the lease payments; if the interest rate implicit in the lease cannot be determined, the incrementalborrowing interest rate of the Company is used as the discount rate. The difference between the leasepayments and the present value thereof is considered as unrecognized finance charges; in each periodduring the lease term, interest expenses are recognized in the profit or loss for the current period accordingto the discount rate of the present value of recognized lease payments. Variable lease payments notincluded in the measurement of lease liabilities are recognized in the profit or loss for the current periodwhen the actually arise.
Where, after the lease inception date, there are changes in the substantially fixed payment, thepayables expected on the basis of the residual value of the guarantee, the index or ratio used fordetermining the lease payment, the evaluation results or actual exercising of the purchase option, renewaloption or lease termination option, the Company re-measures the lease liability as per the present value ofthe lease payment after the change, and adjust the book value of the right-of-use assets accordingly. Wherethe book value of the use right asset has been reduced to zero, but the lease liability still needs to be furtherreduced, the Company includes the residual amount in the current profit or loss.Categorization standard and accounting method for leases as the lessor
√ Applicable□ N/A
On the lease inception date, the Company classifies a lease in which almost all the risks and rewardsrelated to the ownership of the leased asset have been substantially transferred as a finance lease, andrecognizes all other leases as operating leases.
Operating lease
In each period during the lease term, the Company recognizes lease payments as rental incomes byusing the straight-line method; initial direct expenses incurred are capitalized, and amortized on the samebasis for recognizing lease incomes for recognizing in the profit or loss for each period. The variable leasepayments acquired by the Company that are related to operating leases and not recognized in leasepayments are recognized in the profit or loss for the current period when they actually occur.
39. Other significant accounting policies and accounting estimates
□ Applicable√ N/A
40. Changes in significant accounting policies and accounting estimates
(1). Changes in significant accounting policies
□ Applicable√ N/A
(2). Changes in significant accounting estimates
□ Applicable√ N/A
(3). The first implementation of new accounting standards or standard interpretations from 2024
onwards that involves adjusting the financial statements at the beginning of the year in which they
were first implemented
□ Applicable√ N/A
41. Others
□ Applicable√ N/A
VI. Taxes
1. Major categories of taxes and tax rates
Description of major categories of taxes and tax rates
√ Applicable□ N/A
| Type of tax | Basis | Tax rate |
Value-added tax(VAT)
calculated based on the income from sellinggoods and taxable services in accordance withthe Tax Law, less the input tax allowed to be
| reduced in the period |
3%, 6%, 8%, 9%, 10%,13%
Turnover tax payable 5%, 7%Enterprise incometax
Taxable income
| City maintenance and construction tax | ||
| 6.50%, 8.25%, 8.70%, |
8.84%, 15%, 16.5%, 20%,
| 21%, 23.2%, 25% | ||
| Education surcharges |
Turnover tax payable 3%
Turnover tax payable 2%Disclosure of taxpayers with different rates of enterprise income tax:
√ Applicable□ N/A
Local educationsurchargesTaxpayer
| Taxpayer | Rate of income tax |
| The Company | 15% |
| Formovie (Chongqing) Innovative Technology Co., Ltd. |
15%
| Appotronics Hong Kong Limited | 8.25%, 16.5% |
| Beijing Orient Appotronics Technology Co., Ltd. | 20% |
| JoveAI Innovation, Inc. | 8.70%, 8.84%, 21% |
| Appotronics USA, Inc. | 8.84%, 21% |
| JoveAI Limited | Excluding enterprise income tax |
| Shenzhen Appotronics Display Device Co., Ltd. | 20% |
| Appotronics Technology (Changzhou) Co., Ltd. | 20% |
| Qingda Appotronics (Xiamen) Technology Co., Ltd. |
20%
20%
| Shenzhen Appotronics Home Line Technology Co., Ltd. |
| Shenzhen Appotronics Laser Technology Co., Ltd. |
20%
20%
| Shenzhen Appotronics Xiaoming Technology Co., Ltd. | |
| JoveAI Asia Company Limited | 20% |
| Formovie Limited | 16.5% |
| Chongqing Ewei Ecommerce Co., Ltd. | 20% |
| Chongqing Guangbo Ecommerce Co., Ltd. | 20% |
| Shenzhen Orange Juice Energy Technology Co., Ltd. |
20%
| Tianjin Bonian Film Partnership (LP) | Excluding enterprise income tax |
| CINEAPPO Laser Cinema Technology (Beijing) Co., Ltd. |
15%
16.5%
| Hongkong Orange Juice Energy Technology Co., Limited | |
| Wemax Inc. | 6.50%, 21% |
| Shenzhen Weiwoqi Trading Co., Ltd. | 20% |
| Yaoyouguang (Chongqing) Technology Co., Ltd. | 20% |
| Appotronics International Limited | 16.5% |
| Appotronics Intelligent Manufacturing (Shenzhen) Co., Ltd. |
20%
Excluding enterprise income tax
| Shenzhen Qianhai Taishi Investment Partnership (LP) | |
| Appotronics International 1 Limited | 16.5% |
| Appotronics International 2 Limited | 16.5% |
| Appotronics Hong Kong Holding Limited | 16.5% |
| Appotronics Japan Co., Ltd. | 15%, 23.2% |
| Appotronics Technology (HONG KONG) Limited | 16.5% |
| Shenzhen Muhe Information Technology Co., Ltd. | 20% |
| Shenzhen Xingjin Information Technology Co., Ltd. |
20%
| Other taxpayers except the above | 25% |
Note:
1. Appotronics Hong Kong Limited, as registered in Hong Kong, one of which can apply the two-
level income tax system, namely, applying the tax rate of 8.25% for the first HKD 2 million taxable incomeand 16.50% for the remaining taxable income;
2. JoveAI Limited, as registered in the Cayman Islands, is exempt from enterprise income tax;
3. Appotronics USA, Inc., as registered in the United States, applies the federal enterprise income tax
rate of 21% and the California state enterprise income tax rate of 8.84%;
4. JoveAI Innovation, Inc., as registered in the United States, applies the federal enterprise income
tax rate of 21%, the California state enterprise income tax rate of 8.84%, and the Delaware state enterpriseincome tax rate of 8.70%;
5. JoveAI Asia Company Limited, as registered in Vietnam, applies the enterprise income tax rate of
20%;
6. Formovie Limited, as registered in Hong Kong, applies the income tax rate of 16.50%;
7. Hong Kong Orange Juice Energy Technology Co., Limited, as registered in Hong Kong, applies
an income tax rate of 16.50%;
8. Wemax Inc, as registered in the United States, applies the federal enterprise income tax rate of
21%, and the New York state enterprise income tax rate of 6.50%;
9. Appotronics International Limited, as registered in Hong Kong, applies the income tax rate of
16.50%;
10. Appotronics International 1 Limited, as registered in Hong Kong, applies the income tax rate of
16.50%;
11. Appotronics International 2 Limited, as registered in Hong Kong, applies the income tax rate of
16.50%;
12. Appotronics Hong Kong Holding Limited, as registered in Hong Kong, applies the income tax
rate of 16.50%;
13. Appotronics Technology (Hong Kong) Limited, as registered in Hong Kong, applies the income
tax rate of 16.50%;
14. Appotronics Japan Co., Ltd. is registered in Japan. The legal person tax in Japan (i.e., enterprise
income tax) is collected at two rates: 15% and 23.2%. For companies with a registered capital less than orequal to JPY 100 million, the preferential tax rate of 15% is applicable for profits below JPY 8.00 million.The tax rate of 23.2% is applicable to other profits.
2. Tax incentives
√ Applicable□ N/A
1. Enterprise income tax
(1) On December 19, 2022, the Company obtained the High-tech Enterprise Certificate (Certificate
No.: GR202244206480) jointly issued by Shenzhen Science and Technology Innovation Commission,Shenzhen Finance Bureau and Shenzhen Tax Service of State Taxation Administration with a valid termof three years. Therefore, the Company paid the enterprise income tax at a rate of 15% in 2024.
(2) On November 28, 2022, Formovie (Chongqing) Innovative Technology Co., Ltd. obtained the
High-tech Enterprise Certificate (Certificate No.: GR202251101763) jointly issued by ChongqingMunicipal Science and Technology Bureau, Chongqing Finance Bureau and Chongqing Tax Service ofState Taxation Administration with a valid term of three years. Therefore, the Company paid the enterpriseincome tax at a rate of 15% in 2024.
(3) On October 18, 2022, CINEAPPO Laser Cinema Technology (Beijing) Co., Ltd. obtained the
High-tech Enterprise Certificate (Certificate No.: GR202211008942) jointly issued by Beijing MunicipalScience and Technology Commission, Beijing Finance Bureau and Beijing Tax Service of State TaxationAdministration with a valid term of three years. Therefore, the Company paid the enterprise income tax ata rate of 15% in 2024.
(4) In accordance with the Announcement of the Ministry of Finance and the State Taxation
Administration on Implementing Preferential Income Tax Policies for Micro and Small Enterprises andIndividually-owned Businesses (Cai Shui (2021) No. 12), from January 1, 2021 to December 31, 2022, theannual taxable income of a small low-profit enterprise that is not more than RMB 1 million shall be leviedwith the enterprise income tax rate at a discount of 12.5%, namely, for which the applicable enterpriseincome tax rate is 20%. In accordance with the Announcement of the Ministry of Finance and the StateTaxation Administration on Implementing Preferential Income Tax Policies for Micro and SmallEnterprises and Individually-owned Businesses (Cai Shui (2023) No. 6), from January 1, 2023 toDecember 31, 2024, the annual taxable income of a small low-profit enterprise that is not more than RMB1 million shall be levied with the enterprise income tax rate at a discount of 25%, namely, for which theapplicable enterprise income tax rate is 20%. The following companies are qualified for enjoying such taxincentives: Beijing Orient Appotronics Technology Co., Ltd., Shenzhen Appotronics Display Device Co.,Ltd., Appotronics Technology (Changzhou) Co., Ltd., Qingda Appotronics (Xiamen) Technology Co.,Ltd., Shenzhen Appotronics Home Line Technology Co., Ltd., Shenzhen Appotronics Laser TechnologyCo., Ltd., Shenzhen City Appotronics Xiaoming Technology Co., Ltd., Chongqing Ewei Ecommerce Co.,Ltd., Chongqing Guangbo Ecommerce Co., Ltd., Shenzhen Orange Juice Energy Technology Co., Ltd.,Shenzhen Weiwoqi Trading Co., Ltd., Yaoyouguang (Chongqing) Technology Co., Ltd., AppotronicsIntelligent Manufacturing (Shenzhen) Co., Ltd., Shenzhen Muhe Information Technology Co., Ltd., andShenzhen Xingjin Information Technology Co., Ltd.
2. Value-added tax (VAT)
(1) In accordance with the Notice of the Ministry of Finance and the State Administration of Taxation
on Value-added Tax Policies for Software Products (Cai Shui [2011] No. 100), for self-developed andproduced software products sold by general VAT taxpayers, the tax-refund-upon-collection policy isapplicable to the part of their actual VAT burden in excess of 3% after the VAT has been collected at atax rate of 17%. The Company, Formovie (Beijing) Technology Co., Ltd., and Shenzhen AppotronicsSoftware Technology Co., Ltd. are qualified to enjoy such tax incentives.
(2) In accordance with the Announcement of the Ministry of Finance and the State Taxation
Administration on Additional Deductions for Value-added Taxes of Advanced Manufacturing Enterprises(Announcement No. 43 of 2023 by the Ministry of Finance and the State Taxation Administration),advanced manufacturing enterprises are allowed to deduct an additional 5% of the deductible input taxamount from the payable VAT amount. The Company, and Formovie (Chongqing) Innovative TechnologyCo., Ltd. are qualified for this tax incentive.
(3) The Vietnamese government issued resolution No. 44/2023/ND-CP, under which the VAT rate
of goods and services at the tax rate of 10% is reduced by 2% (to 8%). JoveAI Asia Company Limited isqualified for this tax incentive from July 1, 2023 to December 31, 2024.
3. Others
□ Applicable√ N/A
VII. Notes to items in the consolidated financial statements
1. Monetary funds
√ Applicable□ N/A
In RMB
| Item | Closing balance | Opening balance |
| Cash on hand | 5,769.27 | 5,751.15 |
| Bank deposits | 1,309,440,728.23 | 1,371,185,024.55 |
| Other monetary funds | 25,381,643.98 | 15,637,773.36 |
| Total | 1,334,828,141.48 | 1,386,828,549.06 |
| Including: Total overseas deposits | 138,787,361.68 | 175,001,829.77 |
Other informationNone
2. Held-for-trading financial assets
√ Applicable□ N/A
In RMBItem Closing balance
| Opening balance | Determination reason and basis | ||
| Financial assets at fair value through profit or loss |
503,130,000.00 514,010,000.00
| - | |||
| Including: | |||
| Equity instrument investment | 30,000,000.00 | 42,880,000.00 | - |
| Structural deposits | 473,130,000.00 | 471,130,000.00 | - |
| Total | 503,130,000.00 | 514,010,000.00 | - |
Other information:
□ Applicable√ N/A
3. Derivative financial assets
□ Applicable√ N/A
4. Notes receivable
(1). Categories of notes receivable
√ Applicable□ N/A
In RMB
| Item | Closing balance | Opening balance |
| Bank acceptances | 2,657,820.00 | 1,478,064.00 |
| Commercial acceptances | 1,509,663.04 | 7,473,244.71 |
| Total | 4,167,483.04 | 8,951,308.71 |
(2). Notes receivable pledged by the Company at the end of the period
□ Applicable√ N/A
(3). Notes receivable which are undue as of the balance sheet date but endorsed or discounted by the
Company at the end of the period
√ Applicable□ N/A
In RMBItem
| Amount derecognized at the end of the period | Amount not derecognized at the end of the period | |
| Bank acceptances | 860,000.00 | |
| Commercial acceptances | ||
| Total | 860,000.00 |
(4). Disclosure by categories of provision for bad debts
√ Applicable□ N/A
In RMB
Category
| Closing balance | Opening balance |
Carrying amount
Bookvalue
Carrying amount
| Provision for bad debts | Provision for bad debts |
BookvalueAmount
(%)
Amount
| Percentage | Percentage |
ofprovision
Amount
| (%) | Percentage |
(%)
Amount
| Percentage |
ofprovision
| (%) | ||||||||||
| Provision for bad debts made individually | ||||||||||
| Including: | ||||||||||
| Provision for bad debts made by group | ||||||||||
4,246,939.00
100.00 79,455.96
1.87 4,167,483.04
9,344,637.39
100.00 393,328.68
4.21 8,951,308.71
| Including: | ||||
| Bank | ||||
acceptance
2,657,820.00
| bills |
62.58 - 0.00 2,657,820.00
1,478,064.00
15.82
1,478,064.00
| Commercial |
acceptance
1,589,119.00
| bills |
37.42 79,455.96
5.00 1,509,663.04
7,866,573.39
84.18 393,328.68
5.00 7,473,244.71
| Total | 4,246,939.00 | 100.00 | 79,455.96 | 1.87 | 4,167,483.04 | 9,344,637.39 | 100.00 | 393,328.68 | 4.21 | 8,951,308.71 |
Provision for bad debts made individually:
□ Applicable√ N/A
Provision for bad debts made by group:
√ Applicable□ N/A
Item by group: Commercial acceptance bills
In RMBName
Notes receivable
| Closing balance | |||
| Provision for bad debts | Percentage of provision (%) | ||
| Group of bank acceptance bills | |||
1,589,119.00 79,455.96 5.00
| Group of commercial acceptance bills | |||
| Total | 1,589,119.00 | 79,455.96 | 5.00 |
Description of provision for bad debts made by group
□ Applicable√ N/A
Provision for bad debts made in accordance with the general model of ECL
□ Applicable√ N/A
Basis for determination of each stage and percentage of provision for bad debtsRefer to V.11 of Section X for details.Description of significant changes in the balance of accounts receivable with changed provisions for losses inthe current period:
□ Applicable√ N/A
(5). Provision for bad debts
√ Applicable□ N/A
In RMBCategory
Openingbalance
ClosingbalanceProvision
| Changes for the current period | ||
| Recovery | ||
or
| reversal | Write-off |
or
| cancellation | Other |
changes
debts made
| individually | ||||||
| Provision for bad |
debts made by
393,328.68 -313,872.72 - - 79,455.96
| group | ||||||
| Total | 393,328.68 | -313,872.72 | - | - | 79,455.96 |
Including significant amounts recovered or reversed from the current provision for bad debts:
□ Applicable√ N/A
Other information:
None
(6). Notes receivable actually canceled in the current period
□ Applicable√ N/A
Significant write-off of notes receivable:
□ Applicable√ N/A
Description of notes receivable write-off:
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
5. Accounts receivable
(1). Disclosure by aging
√ Applicable□ N/A
In RMBAging
| Closing balance of carrying amount | Opening balance of carrying amount | |
| Within 1 year | ||
| Including: Sub-items within 1 year | ||
| Within 1 year | 328,728,072.89 | 174,956,389.44 |
| Sub-total of items within 1 year | ||
328,728,072.89 174,956,389.44
| 1 to 2 years | 9,213,965.10 | 18,036,240.20 |
| 2 to 3 years | 7,317,871.66 | 19,637,948.14 |
| Over 3 years | 564,271.86 | 204,186.09 |
| Total | 345,824,181.51 | 212,834,763.87 |
(2). Disclosure by categories of provision for bad debts
√ Applicable□ N/A
In RMBCategory
| Closing balance | Opening balance |
Carrying amount
| Provision for bad debts |
Bookvalue
Carrying amountProvision for bad debts
BookvalueAmount
Percentage
(%)
Amount
| Percent |
age ofprovisio
Amount
Perce
| n (%) | ntage |
(%)
Amount
Percentageof provision
(%)
debtsmadeindividuall
| y |
863,700.00 0.25 863,700.00
100.00 17,568,210.65
8.25
17,568,210.
100.00
debts
| made by group |
344,960,481.
99.75
22,531,252.67
6.53
322,429,2
28.84
195,266,553.2
91.75
14,976,545.
7.67
180,290,00
7.90
| Including: | ||
| By group of aging | 344,960,481. | |
99.75
.67
6.53
| 22,531,252 | 322,429,2 |
28.84
91.75
| 195,266,553.2 | 14,976,545. |
7.67
7.90
| 180,290,00 | ||
| Group of |
related
ofconsolidat
| ion |
Total
100.00
| 345,824,181.51 | 23,394,952.67 |
6.76
| 322,429,228.84 | 212,834,763.87 |
100.00
| 32,544,755.97 |
15.29
Provision for bad debts made individually:
√ Applicable□ N/A
In RMBName
180,290,00
7.90
Closing balance
| Closing balance | |||
| Carrying amount | Provision for bad debts | Percentage of provision (%) | Reason for provision |
Company A 766,700.00 766,700.00 100.00
unrecoverablebecause thecustomer is in
| hardship |
Company B 97,000.00 97,000.00 100.00
unrecoverablebecause thecustomer is in
| hardship | ||||
| Total | 863,700.00 | 863,700.00 | 100.00 | - |
Explanation about provision for bad debts made individually:
□ Applicable√ N/A
Provision for bad debts made by group:
√ Applicable□ N/A
Item by group: By group of aging
In RMBName
Accounts receivable
| Closing balance | |||
| Provision for bad debts | Percentage of provision (%) | ||
| Within 1 year | 328,728,072.89 | 16,436,403.71 | 5.00 |
| 1-2 years | 9,213,965.10 | 2,303,491.27 | 25.00 |
| 2-3 years | 6,454,171.66 | 3,227,085.83 | 50.00 |
| Over 3 years | 564,271.86 | 564,271.86 | 100.00 |
| Total | 344,960,481.51 | 22,531,252.67 | 6.53 |
Description of provision for bad debts made by group:
□ Applicable√ N/A
Provision for bad debts made in accordance with the general model of ECL
□ Applicable√ N/A
Basis for determination of each stage and percentage of provision for bad debts
Refer to V.11 of Section X for details.Description of significant changes in the balance of accounts receivable with changed provisions for losses in
the current period:
□ Applicable√ N/A
(3). Provision for bad debts
√ Applicable□ N/A
In RMB
Category
Openingbalance
ClosingbalanceProvision
| Changes for the current period | ||
| Recovery | ||
or
Write off orcancellation
Otherchanges
| reversal | ||
| Provision |
for baddebts made
17,568,210.65 -502,844.98 16,201,665.67 863,700.00
| individually |
| Provision |
for baddebts made
14,976,545.32 7,655,186.97 100,479.62 22,531,252.67
| by group | ||||||
| Total | 32,544,755.97 | 7,152,341.99 | 16,302,145.29 | 23,394,952.67 |
Including significant amounts recovered or reversed from the current provision for bad debts:
□ Applicable√ N/A
Other information: None
(4). Accounts receivable actually canceled in the current period
√ Applicable□ N/A
In RMB
| Item | Cancellation amount |
| Accounts receivable actually canceled | 16,302,145.29 |
In which significant amounts canceled are described as below:
□ Applicable√ N/A
Description of accounts receivable cancellation:
□ Applicable√ N/A
(5). Top five closing balances of accounts receivable and contract assets categorized by debtors
√ Applicable□ N/A
In RMB
Entity
Closing balance
of accountsreceivable
Closingbalance of
contract
assets
Closing balance
of accountsreceivable andcontract assets
to the total
closingbalance of
accountsreceivable
and
contract
| assets (%) |
Closingbalance ofprovision for
bad debts
| Top 1 | 155,267,717.51 | 155,267,717.51 | 44.61 | 7,763,385.88 | |
| Top 2 | 40,570,851.87 | 40,570,851.87 | 11.66 | 2,028,542.59 | |
| Top 3 | 19,653,629.05 | 19,653,629.05 | 5.65 | 982,681.46 | |
| Top 4 | 17,575,399.68 | 17,575,399.68 | 5.05 | 878,769.98 | |
| Top 5 | 11,115,907.80 | 11,115,907.80 | 3.19 | 3,310,813.01 | |
| Total | 244,183,505.91 | 244,183,505.91 | 70.16 | 14,964,192.93 |
Other information:
None
Other information:
□ Applicable√ N/A
6. Contract assets
(1). Description of contract assets
√ Applicable□ N/A
In RMBItem
| Closing balance | Opening balance |
Carrying
amount
for bad
| debts |
Book value
Carryingamount
for bad
| debts |
Book value
security
| receivable |
2,247,213.57 416,362.18 1,830,851.39 1,867,058.07 214,817.78 1,652,240.29
- - - 25,000.00 12,500.00 12,500.00
| Goods payment | ||||||
| Total | 2,247,213.57 | 416,362.18 | 1,830,851.39 | 1,892,058.07 | 227,317.78 | 1,664,740.29 |
(2). Amount and reasons for major changes in the book value during the reporting period
□ Applicable√ N/A
(3). Disclosure by categories of provision for bad debts
√ Applicable□ N/A
In RMB
Category
| Closing balance | Opening balance | ||
| Carrying amount | Provision for bad debts | ||
Bookvalue
Carrying amount
BookvalueAmo
unt
| Provision for bad debts | ||
| Per |
centage
Amou
nt
Percentage
ofprovision
(%)
Amoun
t
Percentage (%)
Amount
Percentag
e ofprovision
(%)
| (%) | ||
| Provision |
for baddebtsmadeindividuall
| y | ||||||||||
| Including: | ||||||||||
| Provision | ||||||||||
for baddebtsmade by
2,247,
213.57
100.
416,36
2.18
18.53
1,830,8
51.39
1,892,058
.07
100.00
227,317.7
12.01
1,664,74
0.29
| group | |
| Including: | |
| By group of aging | |
2,247,
213.57
100.
416,36
2.18
18.53
1,830,8
51.39
1,892,058
.07
100.00
227,317.7
12.01
1,664,74
0.29
Total
213.57
| 2,247, | 100. |
2.18
18.53
| 416,36 | 1,830,8 |
51.39
.07
100.00
| 1,892,058 | 227,317.7 |
12.01
0.29
Provision for bad debts made individually:
□ Applicable√ N/A
Explanation about provision for bad debts made individually:
□ Applicable√ N/A
Provision for bad debts made by group:
√ Applicable□ N/A
Item by group: By group of aging
In RMB
Name
Contract assets
| Closing balance | |||
| Provision for bad debts | Percentage of provision (%) | ||
| Within 1 year | 1,270,314.69 | 63,515.74 | 5.00 |
| 1-2 years | 542,412.00 | 135,603.00 | 25.00 |
| 2-3 years | 434,486.88 | 217,243.44 | 50.00 |
| Total | 2,247,213.57 | 416,362.18 | 18.53 |
Description of provision for bad debts made by group
□ Applicable√ N/A
Provision for bad debts made in accordance with the general model of ECL
□ Applicable√ N/A
Basis for determination of each stage and percentage of provision for bad debtsRefer to V.11 of Section X for details.Description of significant changes in the balance of contract assets with changed provisions for losses in thecurrent period:
□ Applicable√ N/A
(4). Description of provision for bad debts made on contract assets during the period
√ Applicable□ N/A
In RMBItem Provision
reversal in the
| period |
Write-off/cancellation
Reason
189,044.40
| Provision for bad debts made by group | ||||
| Total | 189,044.40 |
Including significant amounts recovered or reversed from the current provision for bad debts:
□ Applicable√ N/A
Other information:
None
(5). Contract assets actually written off in the current period
□ Applicable√ N/A
Write-off of significant contract assets
□ Applicable√ N/A
Description of write-off of contract assets:
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
7. Receivables financing
(1). Receivables financing presented by category
√ Applicable□ N/A
In RMB
| Item | Closing balance | Opening balance |
| Bank acceptance bills | 65,953,036.07 | 11,387,400.00 |
| Total | 65,953,036.07 | 11,387,400.00 |
(2). Receivables financing pledged by the Company at the end of the period
□ Applicable√ N/A
(3). Receivables financing which is undue as at the balance sheet date but endorsed or discounted by the
Company at the end of the period
√ Applicable□ N/A
In RMB
Item
| Amount derecognized at the end of the period | Amount not derecognized at the end of the period | |
| Bank acceptance bills | 64,994,868.88 | |
| Total | 64,994,868.88 |
(4). Disclosure by categories of provision for bad debts
□ Applicable√ N/A
Provision for bad debts made individually:
□ Applicable√ N/A
Explanation about provision for bad debts made individually:
□ Applicable√ N/A
Provision for bad debts made by group:
□ Applicable√ N/A
Provision for bad debts made in accordance with the general model of ECL
□ Applicable√ N/A
Basis for determination of each stage and percentage of provision for bad debtsN/ADescription of significant changes in the balance of receivables financing with changed provisions forlosses in the current period:
□ Applicable√ N/A
(5). Provision for bad debts
□ Applicable√ N/A
Including significant amounts recovered or reversed from the current provision for bad debts:
□ Applicable√ N/A
Other information:
None
(6). Receivables financing actually written off in the current period
□ Applicable√ N/A
In which significant amounts of receivables financing written off are described as below:
□ Applicable√ N/A
Description of write-off:
□ Applicable√ N/A
(7). Changes in amount and fair value of receivables financing:
□ Applicable√ N/A
(8). Other information:
√ Applicable□ N/A
The acceptors of bank acceptance bills in the receivables financing are commercial banks with highcredit. Because it is less probable that bank acceptance bills will not get paid at maturity, the Companyhas derecognized endorsed or discounted bank acceptance bills. However, if such notes are unable to bepaid at maturity, the Company will still be jointly and severally liable to the note holders pursuant to theNegotiable Instruments Law.
8. Prepayments
(1). Disclosure of prepayments by aging
√ Applicable□ N/A
In RMB
Aging
| Closing balance | Opening balance | |||
| Amount | Percentage (%) | Amount | Percentage (%) | |
| Within 1 year | 26,352,041.27 | 75.92 | 22,863,911.50 | 65.12 |
| 1 to 2 years | 6,121,597.02 | 17.64 | 5,136,169.79 | 14.63 |
| 2 to 3 years | 1,030,904.46 | 2.97 | 725,259.48 | 2.06 |
| Over 3 years | 1,204,040.19 | 3.47 | 6,387,321.05 | 18.19 |
| Total | 34,708,582.94 | 100.00 | 35,112,661.82 | 100.00 |
Reasons for overdue settlement of prepayments with significant amounts aged more than 1 year:
None
(2). Top five closing balances of prepayments categorized by receivers
√ Applicable□ N/A
Entity Carrying amount
| Proportion to the balance of prepayments (%) | ||
| Top 1 | 13,258,171.44 | 38.20 |
| Top 2 | 2,263,401.00 | 6.52 |
| Top 3 | 2,160,293.74 | 6.22 |
| Top 4 | 1,320,966.58 | 3.81 |
| Top 5 | 764,795.00 | 2.20 |
| Sub-total | 19,767,627.76 | 56.95 |
Other information
□ Applicable√ N/A
9. Other receivables
Presented by item
√ Applicable□ N/A
In RMB
| Item | Closing balance | Opening balance |
| Interest receivable | - | |
| Dividend receivable | 14,111,064.00 | 14,023,746.00 |
| Other receivables | 16,468,070.59 | 16,674,941.55 |
| Total | 30,579,134.59 | 30,698,687.55 |
Other information:
□ Applicable√ N/A
Interest receivable
(1). Categories of interest receivable
□ Applicable√ N/A
(2). Significant interests overdue
□ Applicable√ N/A
(3). Disclosure by categories of provision for bad debts
□ Applicable√ N/A
Provision for bad debts made individually:
□ Applicable√ N/A
Explanation about provision for bad debts made individually:
□ Applicable√ N/A
Provision for bad debts made by group:
□ Applicable√ N/A
Provision for bad debts made in accordance with the general model of ECL
□ Applicable√ N/A
(4). Provision for bad debts
□ Applicable√ N/A
Including significant amounts recovered or reversed from the current provision for bad debts:
□ Applicable√ N/A
Other information:
None
(5). Interests receivable actually written off in the current period
□ Applicable√ N/A
In which the write-off of significant interests receivable is described as below:
□ Applicable√ N/A
Description of write-off:
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
Dividends receivable
(1). Dividends receivable
√ Applicable□ N/A
In RMB
| Project (or investee) | Closing balance | Opening balance |
| Dividend distribution from GDC Technology Limited (BVI) |
14,111,064.00
14,023,746.00
| Total | 14,111,064.00 | 14,023,746.00 |
(2). Dividends receivable with significant amounts aged more than 1 year
√ Applicable□ N/A
In RMBProject (or investee)
Closingbalance
Aging
Reason for non-recovery
has occurred and the
| basis for its judgment |
Dividend distributionfrom GDC TechnologyLimited (BVI)
14,111,064.00
2-3 years
| There are matters |
not reached anagreementthroughnegotiation, andthe payment has
not yet been
| made | It is less probable that the |
counterparty has a creditrisk, and no impairmenthas occurred
| Total | 14,111,064.00 | - | - | - |
(3). Disclosure by categories of provision for bad debts
□ Applicable√ N/A
Provision for bad debts made individually:
□ Applicable√ N/A
Explanation about provision for bad debts made individually:
□ Applicable√ N/A
Provision for bad debts made by group:
□ Applicable√ N/A
Provision for bad debts made in accordance with the general model of ECL
□ Applicable√ N/A
(4). Provision for bad debts
□ Applicable√ N/A
Including significant amounts recovered or reversed from the current provision for bad debts:
□ Applicable√ N/A
Other information:
None
(5). Dividend receivable actually written off in the current period
□ Applicable√ N/A
In which the write-off of significant dividend receivable is described as below:
□ Applicable√ N/A
Description of write-off:
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
Other receivables
(1). Disclosure by aging
√ Applicable□ N/A
In RMBAging
| Closing balance of carrying amount | Opening balance of carrying amount | |
| Within 1 year | ||
| Including: Sub-items within 1 year | ||
| Within 1 year | 9,220,288.61 | 8,746,169.48 |
| Sub-total of items within 1 year | 9,220,288.61 | 8,746,169.48 |
| 1 to 2 years | 1,751,724.29 | 2,540,156.84 |
| 2 to 3 years | 556,500.67 | 333,955.74 |
| Over 3 years | 5,935,973.48 | 6,002,199.51 |
| Total | 17,464,487.05 | 17,622,481.57 |
(2). Categories by the nature of other receivables
√ Applicable□ N/A
In RMBNature of receivables
| Closing balance of carrying amount | Opening balance of carrying amount | |
| Deposits/margins/petty cash | 12,151,928.03 | 10,696,150.09 |
| Withholding | 288,290.22 | 393,531.80 |
| Temporary receivables | 5,024,268.80 | 6,532,799.68 |
| Compensation receivable | ||
| Total | 17,464,487.05 | 17,622,481.57 |
(3). Provision for bad debts
√ Applicable□ N/A
In RMBProvision for bad debts
| Stage I | Stage II | Stage III |
Total12-month ECLin the future
(without credit
| impairment) | Lifetime ECL |
(with credit
| impairment) | ||
| Balance as at January 1, 2024 |
839,924.44 107,615.58 947,540.02
- - -
| Balance as at January 1, 2024 in the current period | ||||
| --transferred to Stage II | -16,133.91 | 16,133.91 | - | - |
| --transferred to Stage III | - | - | - | - |
| --reversed to Stage II | - | - | - | - |
| --reversed to Stage I | - | - | - | - |
| Provision | 617.75 | 48,258.69 | - | 48,876.44 |
| Reversal | - | - | - | - |
| Write-off | - | - | - | - |
| Cancellation | - | - | - | - |
| Other changes | - | - | - | - |
| Balance as at June 30, 2024 |
824,408.27 172,008.19 - 996,416.46
Basis for determination of each stage and percentage of provision for bad debtsThe group of deposit and security receivable and other receivables due within one year in the agegroup indicate no obvious increase in the credit risk since initial recognition (stage I), 1-2 years in the agegroup indicate an obvious increase in the credit risk since initial recognition but no credit impairment(stage II), and over 2 years in the age group indicate credit impairment since initial recognition (stage III).
Description of significant changes in the balance of other receivables with changed provisions for lossesin the current period:
□ Applicable√ N/A
Basis for recognizing the amount of provision for bad debts and evaluating whether the credit risk offinancial instruments has been increased significantly in the current period:
□ Applicable√ N/A
(4). Provision for bad debts
√ Applicable□ N/A
In RMB
Category
Openingbalance
ClosingbalanceProvision
Recoveryor reversal
| Changes for the current period | ||
| Write off | ||
orcancellati
on
Otherchanges
| Provision for |
bad debtsmade by
947,540.02 48,876.44 996,416.46
| group | ||||||
| Total | 947,540.02 | 48,876.44 | 996,416.46 |
Including significant amounts recovered or reversed from the current provision for bad debts:
□ Applicable√ N/A
Other information
None
(5). Other receivables actually canceled in the current period
□ Applicable√ N/A
In which significant amounts written off are described as below:
□ Applicable√ N/A
Description of other receivables cancellation:
□ Applicable√ N/A
(6). Top five closing balances of other receivables categorized by debtors
√ Applicable□ N/A
In RMBEntity
Closingbalance
to thebalance of
otherreceivables
| (%) |
Nature of other
receivables
Aging
Provision for
bad debtsClosingbalanceTop 1 3,574,618.00 20.47
| Deposits/margins/petty cash | Over 3 years |
178,730.90Top 2 3,140,000.00 17.98
| Deposits/margins/petty cash | Within 1 year |
157,000.00Top 3 1,310,675.20 7.50
| Deposits/margins/petty cash | Over 3 years |
65,533.76Top 4 500,000.00 2.86
| Deposits/margins/petty cash | Over 3 years |
25,000.00Top 5 365,997.50 2.10
| Deposits/margins/petty cash | Within 1 year |
18,299.88
| Total | 8,891,290.70 | 50.91 | - | - | 444,564.54 |
(7). Presentation in other receivables due to centralized fund management
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
10. Inventories
(1). Categories of inventories
√ Applicable□ N/A
In RMB
Item
| Closing balance | Opening balance |
Carrying
amount
decline in value ofinventories/impairment of contract
| performance cost |
Book value
Carryingamount
decline in value ofinventories/impairment of contract
| performance cost |
Book value
| Raw materials | 419,576,939.48 |
45,526,602.02
| 374,050,337.46 | 443,084,635.75 |
41,537,753.59
| 401,546,882.16 | |||
| Work in progress | 32,388,570.96 |
1,304,922.36
| 31,083,648.60 | 14,472,238.10 |
478,919.67
| 13,993,318.43 | |||
| Goods on hand | 274,503,515.82 |
51,644,200.03
| 222,859,315.79 | 260,003,554.90 |
46,351,531.91
| 213,652,022.99 | ||
| Goods |
upon
12,618,757.
1,288,421.62
11,330,336.
19,510,688.
3,546,615.45
15,964,072.
| delivery |
| Contract |
performan
5,848,636.0
1,554,079.22
4,294,556.8
4,121,745.0
1,554,079.22
2,567,665.8
| ce cost |
| Materials in transit |
180,136.65 180,136.65
for
| consigned |
processin
17,954,682.
1,130,012.78
16,824,669.
8,934,579.8
491,879.01
8,442,700.8
Total
| g | |
| 762,891,102.58 |
102,448,238.03
| 660,442,864.55 | 750,307,578.52 |
93,960,778.85
(2). Data resources recognized as inventory
□ Applicable√ N/A
(3). Provision for decline in value of inventories and impairment of contract performance cost
√ Applicable□ N/A
In RMBItem
Openingbalance
656,346,799.67Increase
| Increase | Decrease |
ClosingbalanceProvision Others
| Reversal or write-off | Others | |||||
| Raw materials | 41,537,753.59 | 8,977,408.68 | 565.49 | 4,989,125.74 | 45,526,602.02 | |
| Work in progress |
478,919.67 1,304,922.36 478,919.67 1,304,922.36
| Goods on hand | 46,351,531.91 | 16,854,553.77 | 17,176.60 | 11,579,062.25 | 51,644,200.03 | |
| Goods upon delivery |
3,546,615.45 -1,119,325.02 3,214.61 1,142,083.42 1,288,421.62
performance
| cost |
1,554,079.22 1,554,079.22
consigned
| processing |
491,879.01 642,612.60 4,478.83 1,130,012.78
| Total | 93,960,778.85 | 26,660,172.39 | 20,956.70 | 18,193,669.91 | 102,448,238.03 |
Reason for reversing or writing off the provisions for decline in value of inventories in the current period
√ Applicable□ N/A
Item
Specific basis for determining the net
realizable value
reversing theprovision forimpairment ofinventory
Reason for writingback the provisionfor impairment ofinventory
Rawmaterials
materials is determined as the historicalaverage selling price or actual averageselling price of finished goods in theordinary course of business less theestimated costs of completion, and theestimated costs necessary to make the
| sale and relevant taxes. |
For the inventories ofwhich a provision forthe decline in valuehas been made in theprior period, their netrealizable valueshave increased
consumed/sold theinventories forwhich a provisionfor impairment ofinventory has beenmade during the
| current period | ||
| Materials in transit, and |
materials forconsignedprocessing
progress is determined as the historicalaverage selling price or actual averageselling price of finished goods in theordinary course of business less theestimated costs of completion, and theestimated costs necessary to make the
| sale and relevant taxes. |
No reversal
| The Company has consumed the inventories for which a provision for impairment of inventory has been made during the current period | ||
| Goods on |
hand
For inventories directly used for sale,the net realizable value is determined asthe historical average selling price oractual average selling price less theestimated costs necessary to make thesale and relevant taxes.
For the inventories ofwhich a provision for
prior period, their net
| realizable values |
have increased
us
| ed/sold the inventories for which a provision for impairment of inventory has been made during the current period | ||
| Goods upon |
delivery
value is determined as the selling priceor actual average selling price less theestimated costs necessary to make thesale and relevant taxes.
No reversal
| For goods delivered, the net realizable | The Company has sold the inventories for which a provision for impairment of inventory has been made during the current period | ||
| Contract |
performancecost
net realizable value is determined as theactual selling price of goods in theordinary course of business less theestimated costs of completion, and theestimated costs necessary to make the
| sale and relevant taxes |
No reversal Non-resalable
Provision for impairment of inventory made by group
□ Applicable√ N/A
Standard for making provision for impairment of inventory by group
□ Applicable√ N/A
(4). Description of capitalized amount of borrowing costs included in the closing balance of inventories,
and the standard and basis for the calculation thereof
□ Applicable√ N/A
(5). Description of amortization of contract performance cost during the period
√ Applicable□ N/A
Item
Openingbalance
Increase Amortization
impairmentmade in the
| current period |
Closingbalance
2,495,126.88 3,731,919.38 1,932,489.40 4,294,556.86
| Entrusted development |
| Overseas freight |
72,538.92 72,538.92
| Sub-total | 2,567,665.80 | 3,731,919.38 | 2,005,028.32 | - | 4,294,556.86 |
Other information:
□ Applicable√ N/A
11. Held-for-sale assets
□ Applicable√ N/A
12. Non-current assets due within 1 year
√ Applicable□ N/A
In RMB
| Item | Closing balance | Opening balance |
| Debt investments due within 1 year | ||
| Other debt investments due within 1 year |
50,522,240.47
| Long-term receivables due within 1 year |
41,997,218.73
| Total | 50,522,240.47 | 41,997,218.73 |
Debt investments due within 1 year
□ Applicable√ N/A
Other debt investments due within 1 year
□ Applicable√ N/A
Other description of non-current assets due within 1 yearNone
13. Other current assets
√ Applicable□ N/A
In RMB
| Item | Closing balance | Opening balance |
| Contract acquisition cost | ||
| Cost of returned goods receivable | 357,888.82 | 1,611,745.50 |
| Input VAT to be deducted | 48,344,259.08 | 46,217,482.57 |
| Prepaid enterprise income tax | 753,231.42 | 588,042.04 |
| Total | 49,455,379.32 | 48,417,270.11 |
Other information:
None
14. Debt investments
(1). Description of debt investments
□ Applicable√ N/A
Changes in the provision for impairment of debt investments in the current period
□ Applicable√ N/A
(2). Debt investments with significant amounts at the end of the period
□ Applicable√ N/A
(3). Description of provision for impairment
□ Applicable√ N/A
Basis for determination of each stage and percentage of provision for impairment:
N/A
Description of significant changes in the balance of debt investments with changed provisions for lossesin the current period:
□ Applicable√ N/A
Basis for recognizing the amount of provision for impairment and evaluating whether the credit risk offinancial instruments has been increased significantly in the current period:
□ Applicable√ N/A
(4). Debt investments actually written off in the current period
□ Applicable√ N/A
In which the write-off of significant debt investments is described as below
□ Applicable√ N/A
Description of write-off of debt investments:
□ Applicable√ N/A
Other information:
None
15. Other debt investments
(1). Description of other debt investments
□ Applicable√ N/A
Changes in the provision for impairment of other debt investments in the current period
□ Applicable√ N/A
(2). Other debt investments with significant amounts at the end of the period
□ Applicable√ N/A
(3). Description of provision for impairment
□ Applicable√ N/A
(4). Other debt investments actually written off in the current period
□ Applicable√ N/A
In which the write-off of significant other debt investments is described as below
□ Applicable√ N/A
Description of write-off of other debt investments:
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
16. Long-term receivables
(1). Description of long-term receivables
√ Applicable□ N/A
In RMBItem
| Closing balance | Opening balance | Range |
ofdiscou
Carrying
amount
nt rateProvision
for bad
| debts |
Book value
Carrying
amount
for bad
| debts |
Book value
25,690,266.46 2,971,279.26 22,718,987.20 29,121,844.28 2,410,050.74 26,711,793.54
4.30%-
4.65%
| Installment collection |
| Including: |
Financingincome not
-616,482.26 -616,482.26 -711,250.41 -711,250.41
| realized | |||||||
| Total | 25,073,784.20 | 2,971,279.26 | 22,102,504.94 | 28,410,593.87 | 2,410,050.74 | 26,000,543.13 |
(2). Disclosure by categories of provision for bad debts
√ Applicable□ N/A
In RMB
Category
| Closing balance | Opening balance |
Carrying
amount
Provision for bad
debts
Bookvalue
Carrying
amount
Provision for bad
debts
Book valueAmount
Percentage(%)
Amount
tage ofprovision
| (%) |
Amo
unt
Percentage (%)
Amo
unt
Percentage
ofprovision
(%)
bad debtsmade
| individually | ||||||||||
| Including: | ||||||||||
| Provision for bad debts made by group | ||||||||||
25,073,784.20
100.0
2,971,279.
11.85
22,102,
504.94
28,410,593.8
100.00
2,410,
050.74
8.48 26,000,543.13
| Including: | |
| Group of | |
aging
3,784
| .20 |
100.0
2,971,279.
11.85
22,102,
504.94
,593.8
| 7 |
100.00
2,410,
050.74
8.48 26,000,543.13
Total
3,784
| .20 |
100.0
2,971,279.
11.85
22,102,
504.94
,593.8
| 7 |
100.00
2,410,
050.74
8.48 26,000,543.13
Provision for bad debts made individually:
□ Applicable√ N/A
Explanation about provision for bad debts made individually:
□ Applicable√ N/A
Provision for bad debts made by group:
√ Applicable□ N/A
Item by group: Group of aging
In RMBName
Long-term receivables
| Closing balance | |||
| Provision for bad debts | Percentage of provision (%) | ||
| Group of aging | 25,073,784.20 | 2,971,279.26 | 11.85 |
| Total | 25,073,784.20 | 2,971,279.26 | 11.85 |
Description of provision for bad debts made by group
□ Applicable√ N/A
Provision for bad debts made in accordance with the general model of ECL
□ Applicable√ N/A
(3). Provision for bad debts
√ Applicable□ N/A
In RMBCategor
y
Openingbalance
Closing balanceProvision
| Changes for the current period | |||
| Recovery or | Write-off | ||
Other changes
al
| revers | or |
cancellatio
| n | ||
| Provisio |
n for baddebtsmade by
2,410,050.74 3,556,553.22 2,995,324.70 2,971,279.26
| group | ||||||
| Total | 2,410,050.74 | 3,556,553.22 | 2,995,324.70 | 2,971,279.26 |
Including significant amounts recovered or reversed from the current provision for bad debts:
□ Applicable√ N/A
Other information:
“Other changes” indicate the provision for impairment corresponding to the long-term receivablesreclassified to be due within one year.
(4). Long-term receivables actually written off in the current period
□ Applicable√ N/A
In which the write-off of significant long-term receivables is described as below:
□ Applicable√ N/A
Description of write-off of long-term receivables:
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
17. Long-term equity investments
(1). Information about long-term equity investments
√ Applicable□ N/A
In RMB
Investee
Openin
gbalance
Closingbalance
Closingbalance ofprovision
forimpairmen
tAdditionalinvestmen
t
Decre
asedinvestment
Investm
entprofit or
lossunderequitymethod
| Changes for the current period | ||
| Adjust | ||
ment
inothercomprehensi
veincom
Otherequit
ychang
es
Declar
edcashdividends orprofits
Provision
forimpairme
nt
Others
| e | |||||||||||
| I. Joint venture | |||||||||||
| Sub-total | |||||||||||
| II. Associates | |||||||||||
| GDC |
TechnologyLimited(BVI)
138,890,6
14.32
-3,921,378.
-1,520,87
2.10
133,448,363.
| 24 |
| Shenzhen |
ZhongjianTechnology
5,836,162.11
-436,832.4
784,44
0.30
6,183,769
.99
| Co., Ltd. |
Sub-total
144,726,7
76.43
-4,358,211.
-1,520,87
2.10
784,44
0.30
133,448,363.
| 24 |
6,183,769.99
Total
144,726,7
76.43
-4,358,211.
-1,520,87
2.10
784,44
0.30
133,448,363.
| 24 |
6,183,769.99
Note: “Others” indicates the amount generated from foreign exchange translation.Based on the dispute under arbitration, during the reporting period, the Company had specific evidenceto prove that it could not exercise significant influence on the participating company GDC BVI, andtherefore changed the accounting method in accordance with the Accounting Standard for BusinessEnterprises to designate GDC BVI as financial assets at fair value through profit or loss, and adjusted itfrom long-term equity investment to other non-current financial assets.
(2). Impairment test of long-term equity investments
□ Applicable√ N/A
None
The net value of the recoverable amount determining by subtracting disposal expenses from thefair value
□ Applicable√ N/A
The recoverable amount is determined according to the present value of the estimated future cashflows
□ Applicable√ N/A
Reason for the obvious difference between the information above and the information used in theimpairment test in previous years or external information
□ Applicable√ N/A
Reason for the obvious difference between the information used by the Company in the impairmenttest in previous years and the actual conditions of the corresponding year
□ Applicable√ N/A
Other informationNone
18. Other equity instrument investments
(1). Description of other equity instrument investments
√ Applicable□ N/A
In RMB
Item
Openingbalance
Closingbalance
Dividends incomerecogniz
ed forthecurrentperiod
Total gainsrecognized
in othercomprehensi
ve income
Total lossesrecognizedin othercomprehensi
ve income
| Changes for the current period | Reasons for | |
designatingas financialassets at fair
valuethrough
othercomprehensi
Addition
alinvestme
nt
Decrease
dinvestme
nt
Gainsrecognized
in othercomprehensive income inthe current
period
Lossesrecognized
in othercomprehensive income inthe current
period
Othe
rs
| ve income | ||
| Shen Zhen |
TimewayingTechnolog
7,075,419.
7,075,419.
Subject to themanagement’s intention ofholding
| y Co., Ltd. |
| Shenzhen |
BevixTechnolog
0.00
0.00
| y Co., Ltd. | Subject to the |
management’s intention of
Total
| holding | ||
| 7,075,419.38 |
/
(2). Description of derecognition in the current period
□ Applicable√ N/A
Other information:
√ Applicable□ N/A
The Company’s equity investments in Shen Zhen Timewaying Technology Co., Ltd., and Shenzhen Bevix Technology Co., Ltd. are mainly for promoting futurebusiness cooperation rather than making transactions, hence they are designated as investments in equity instruments at fair value through other comprehensive income.The cost of Shenzhen Bevix Technology Co., Ltd. is RMB 4,900,000.00, and the fair value change is -RMB 4,900,000.00.
19. Other non-current financial assets
√ Applicable□ N/A
In RMB
| Item | Closing balance | Opening balance |
| GDC Technology Limited (BVI) | 99,443,720.92 | 0 |
| Total | 99,443,720.92 | 0 |
Other information:
Based on the dispute under arbitration, during the reporting period, the Company had specific evidence toprove that it could not exercise significant influence on the participating company GDC BVI, and thereforechanged the accounting method in accordance with the Accounting Standard for Business Enterprises todesignate GDC BVI as financial assets at fair value through profit or loss, and adjusted it from long-termequity investment to other non-current financial assets.
20. Investment property
Measurement mode of investment propertiesN/A
(1). Impairment test of investment properties measured at costs
□ Applicable√ N/A
Other information
□ Applicable√ N/A
The net value of the recoverable amount determining by subtracting disposal expenses from the fairvalue
□ Applicable√ N/A
The recoverable amount is determined according to the present value of the estimated future cash flows
□ Applicable√ N/A
Reason for the obvious difference between the information above and the information used in theimpairment test in previous years or external information
□ Applicable√ N/A
Reason for the obvious difference between the information used by the Company in the impairment testin previous years and the actual conditions of the corresponding year
□ Applicable√ N/A
Other information
□ Applicable√ N/A
21. Fixed assets
Presented by item
√ Applicable□ N/A
In RMB
| Item | Closing balance | Opening balance |
| Fixed assets | 308,123,259.75 | 336,276,793.84 |
| Disposal of fixed assets | ||
| Total | 308,123,259.75 | 336,276,793.84 |
Other information:
N/A
Fixed assets
(1). Description of fixed assets
√ Applicable□ N/A
In RMBItem
Machinery and
equipment
equipment
| Transportation | Electronic |
equipment and
| others | Operating leased |
equipment
Total
173,037,618.56 2,227,745.42 64,110,956.44 665,210,386.30 904,586,706.72
| 1. Opening balance | |||||
| 2. Increase | 20,513,195.94 | 839,623.66 | 13,246,982.13 | 7,798,919.01 | 42,398,720.74 |
| (1) Purchase |
20,482,288.72 832,106.19 13,265,297.58 34,579,692.49
Transfer fromconstruction in
| progress |
7,798,919.01 7,798,919.01
Increase frombusiness
| combination |
Exchange rate
| changes |
30,907.22 7,517.47 -18,315.45 20,109.24
| 3. Decrease | 5,491,494.05 | 1,898,666.17 | 16,662,301.15 | 24,052,461.37 | |
| (1) |
Disposal or
5,491,494.05 1,898,666.17 1,464,702.32 8,854,862.54
| retirement |
| (2) |
Transfer to
15,197,598.83 15,197,598.83
| inventories |
| (3) |
Transfer toconstruction in
| progress |
| 4. Closing balance |
188,059,320.45 3,067,369.08 75,459,272.40 656,347,004.16 922,932,966.09
| II. Accumulated depreciation |
| 1. Opening balance |
97,159,897.17 855,965.15 38,239,794.57 425,973,312.89 562,228,969.78
| 2. Increase | 13,636,959.59 | 235,868.70 | 5,058,451.55 | 42,392,392.06 | 61,323,671.90 |
| (1) Provision |
13,614,452.18 235,512.43 5,057,005.96 42,392,392.06 61,299,362.63
| (2) Purchase |
| (3) |
Exchange rate
22,507.41 356.27 1,445.59 24,309.27
| changes | |||||
| 3. Decrease | 2,348,053.24 | 1,588,247.03 | 11,735,626.91 | 15,671,927.18 | |
| (1) |
Disposal or
2,348,053.24 1,588,247.03 1,390,506.28 5,326,806.55
| retirement |
| (2) |
Transfer to
10,345,120.63 10,345,120.63
| inventories |
| 4. Closing balance |
108,448,803.52 1,091,833.85 41,709,999.09 456,630,078.04 607,880,714.50
| III. Provision for impairment |
| 1. Opening balance |
1,935,931.82 4,145,011.28 6,080,943.10
| 2. Increase | 1,021,252.37 | 1,021,252.37 |
1,021,252.37 1,021,252.37
| (1) Provision | |||||
| 3. Decrease | 173,203.63 | 173,203.63 | |||
| (1) |
Disposal or
173,203.63 173,203.63
| retirement |
| 4. Closing balance |
1,935,931.82 4,993,060.02 6,928,991.84
| IV. Book value | |||||
| 1. Closing book value |
77,674,585.11 1,975,535.23 33,749,273.31 194,723,866.10 308,123,259.75
73,941,789.57 1,371,780.27 25,871,161.87 235,092,062.13 336,276,793.84
(2). Temporarily idle fixed assets
√ Applicable□ N/A
In RMBItem
2. Opening
book value
Original book
value
| Original book value | Accumulated depreciation | Provision for impairment |
Book value Remark
leased
| equipment |
53,173,798.35
38,678,517.22
4,058,493.39
10,436,787.73
(3). Fixed assets leased out under operating lease
√ Applicable□ N/A
In RMB
| Item | Closing balance of book value |
| Operating leased equipment | 184,287,078.37 |
| Sub-total | 184,287,078.37 |
(4). Fixed assets of which certificates of title have not been obtained
□ Applicable√ N/A
(5). Impairment test of fixed assets
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
The net value of the recoverable amount determining by subtracting disposal expenses from the fairvalue
□ Applicable√ N/A
The recoverable amount is determined according to the present value of the estimated future cashflows
□ Applicable√ N/A
Reason for the obvious difference between the information above and the information used in theimpairment test in previous years or external information
□ Applicable√ N/A
Reason for the obvious difference between the information used by the Company in the impairmenttest in previous years and the actual conditions of the corresponding year
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
Disposal of fixed assets
□ Applicable√ N/A
22. Construction in progress
Presented by item
√ Applicable□ N/A
In RMB
| Item | Closing balance | Opening balance |
| Construction in progress | 372,111,349.09 | 347,777,138.86 |
| Materials for construction | ||
| Total | 372,111,349.09 | 347,777,138.86 |
Other information:
NoneConstruction in progress
(1). Description of construction in progress
√ Applicable□ N/A
In RMBItem
| Closing balance | Opening balance |
Carrying
amount
forimpairmen
| t |
Book value
Carrying
amount
forimpairmen
| t |
Book value
| Headquarter buildings | 369,194,706.11 |
| 369,194,706.11 | 344,481,907.55 |
| 344,481,907.55 | ||
| Light |
sources to
2,916,642.98 2,916,642.98 3,295,231.31 3,295,231.31Total
| be leased | |
| 372,111,349.09 |
| 372,111,349.09 | 347,777,138.86 |
(2). Changes in significant constructions in progress for the current period
√ Applicable□ N/A
In RMBItem
Budgetamount
Openingbalance
Incre
ase
Amounttransferr
ed tofixedassets
Otherdecreases
347,777,138.8
Closing
balance
| Amount injected as |
a
of budget
amount
| (%) |
Constructionprogress
Amount
ofaccumula
tedcapitalized interest
| Including |
:
Capitaliz
edinterestfor the
Interestcapitalization rate forthe period
(%)
| period | Source of |
funds
ter
| buildings |
534,635,
200.00
344,481,90
7.55
24,712,
798.56
369,194,
706.11
75.27 75.27
2,417,641.
1.59
owned
| capital | ||
| Light |
sourcesto be
3,295,231.
7,420,3
30.68
7,798,919
.01
2,916,64
2.98
Self-ownedcapitalTotal
| leased | ||||
| 534,635,200.00 | 347,777,138.86 | 32,133,129.24 | 7,798,919.01 |
- - --
(3). Provision for impairment losses for construction in progress in the current period
□ Applicable√ N/A
(4). Impairment test of construction in progress
□ Applicable√ N/A
Other information
□ Applicable√ N/A
The net value of the recoverable amount determining by subtracting disposal expenses from the fairvalue
□ Applicable√ N/A
The recoverable amount is determined according to the present value of the estimated future cashflows
□ Applicable√ N/A
Reason for the obvious difference between the information above and the information used in theimpairment test in previous years or external information
□ Applicable√ N/A
Reason for the obvious difference between the information used by the Company in the impairmenttest in previous years and the actual conditions of the corresponding year
□ Applicable√ N/A
Other information
□ Applicable√ N/A
Materials for construction
□ Applicable√ N/A
23. Productive biological assets
(1). Productive biological assets measured at cost
□ Applicable√ N/A
(2). Impairment test of productive biological assets measured at cost
□ Applicable√ N/A
(3). Productive biological assets measured at fair value
□ Applicable√ N/A
Other information
□ Applicable√ N/A
24. Oil and gas assets
(1). Information about oil and gas assets
□ Applicable√ N/A
(2). Impairment test of oil and gas assets
□ Applicable√ N/A
None
The net value of the recoverable amount determining by subtracting disposal expenses from the fairvalue
□ Applicable√ N/A
The recoverable amount is determined according to the present value of the estimated future cash flows
□ Applicable√ N/A
Reason for the obvious difference between the information above and the information used in theimpairment test in previous years or external information
□ Applicable√ N/A
Reason for the obvious difference between the information used by the Company in the impairment testin previous years and the actual conditions of the corresponding year
□ Applicable√ N/A
Other information:
None
25. Right-of-use asset
(1). Information about right-of-use assets
√ Applicable□ N/A
In RMB
| Item | Houses and buildings | Total |
| I. Original book value |
| 1. Opening balance | 85,664,854.60 | 85,664,854.60 |
| 2. Increase | 6,305,476.26 | 6,305,476.26 |
| 1) Lease in | 6,287,383.76 | 6,287,383.76 |
| 2) Other changes | 18,092.50 | 18,092.50 |
| 3. Decrease | 9,535,418.11 | 9,535,418.11 |
| 1) Disposal | 9,535,418.11 | 9,535,418.11 |
| 4. Closing balance | 82,434,912.75 | 82,434,912.75 |
| II. Accumulated depreciation | ||
| 1. Opening balance | 45,647,950.93 | 45,647,950.93 |
| 2. Increase | 14,138,541.81 | 14,138,541.81 |
| 1) Provision | 14,137,642.55 | 14,137,642.55 |
| 2) Other changes | 899.26 | 899.26 |
| 3. Decrease | 6,378,364.05 | 6,378,364.05 |
| (1) Disposal | 6,378,364.05 | 6,378,364.05 |
| 4. Closing balance | 53,408,128.69 | 53,408,128.69 |
| III. Provision for impairment | ||
| 1. Opening balance | ||
| 2. Increase | ||
| (1) Provision | ||
| 3. Decrease | ||
| (1) Disposal | ||
| 4. Closing balance | ||
| IV. Book value | ||
| 1. Closing book value | 29,026,784.06 | 29,026,784.06 |
| 2. Opening book value | 40,016,903.67 | 40,016,903.67 |
(2). Impairment test of right-of-use assets
□ Applicable√ N/A
Other information:
NoneThe net value of the recoverable amount determining by subtracting disposal expenses from the fairvalue
□ Applicable√ N/A
The recoverable amount is determined according to the present value of the estimated future cash flows
□ Applicable√ N/A
Reason for the obvious difference between the information above and the information used in theimpairment test in previous years or external information
□ Applicable√ N/A
Reason for the obvious difference between the information used by the Company in the impairment testin previous years and the actual conditions of the corresponding year
□ Applicable√ N/A
Other information:
None
26. Intangible assets
(1). Description of intangible assets
√ Applicable□ N/A
In RMB
| Item | Land use rights | Patents | Software | Total |
| I. Original book value | ||||
| 1. Opening balance |
330,630,000.00 20,059,950.00 27,192,435.04 377,882,385.04
| 2. Increase | 1,889,330.87 | 1,889,330.87 | ||
| (1) Purchase | 1,885,497.90 | 1,885,497.90 | ||
| (2) Internal R&D |
| (3) Increase |
from business
| combination |
| (4) Exchange rate changes |
3,832.97
3,832.97
| 3. Decrease | 891,089.12 | 891,089.12 | ||
| (1) Disposal or retirement |
891,089.12
891,089.12
| 4. Closing balance | 330,630,000.00 | 20,059,950.00 | 28,190,676.79 | 378,880,626.79 |
| II. Accumulated amortization |
60,615,500.22 16,390,600.14 15,245,888.60 92,251,988.96
| 1. Opening balance | ||||
| 2. Increase | 5,510,500.02 | 2,258,010.54 | 7,768,510.56 | |
| (1) Provision | 5,510,500.02 | 2,258,010.54 | 7,768,510.56 | |
| (2) Exchange rate changes | ||||
| 3. Decrease | 297,029.68 | 297,029.68 | ||
| (1) Disposal | 297,029.68 | 297,029.68 | ||
| 4. Closing balance |
66,126,000.24
16,390,600.14
17,206,869.46
99,723,469.84
| III. Provision for impairment |
3,669,349.86 3,669,349.86
| 1. Opening balance | ||||
| 2. Increase | ||||
| (1) Provision | ||||
| 3. Decrease | ||||
| (1) Disposal | ||||
| 4. Closing balance |
3,669,349.86
3,669,349.86
| IV. Book value | ||||
| 1. Closing book value |
264,503,999.76
10,983,807.33
275,487,807.09
| 2. Opening book value |
270,014,499.78 11,946,546.44 281,961,046.22
The proportion of intangible assets generated by the Company’s internal research and development tothe balance of intangible assets at the end of the period is 0%.
(2). Data resources recognized as intangible assets
□ Applicable√ N/A
(3). Land use rights of which certificates of title have not been obtained
□ Applicable√ N/A
(1). Impairment test of intangible assets
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
The net value of the recoverable amount determining by subtracting disposal expenses from the fairvalue
□ Applicable√ N/A
The recoverable amount is determined according to the present value of the estimated future cash flows
□ Applicable√ N/A
Reason for the obvious difference between the information above and the information used in theimpairment test in previous years or external information
□ Applicable√ N/A
Reason for the obvious difference between the information used by the Company in the impairment testin previous years and the actual conditions of the corresponding year
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
27. Goodwill
(1). Original book value of goodwill
□ Applicable√ N/A
(2). Impairment provision of goodwill
□ Applicable√ N/A
(3). Relevant information on groups of assets or combinations of groups of assets where the goodwill
is recognized
□ Applicable√ N/A
Changes in groups of assets or combinations of groups of assets
□ Applicable√ N/A
Other information
□ Applicable√ N/A
(4). Specific method for determining the recoverable amount
The recoverable amount is determined as the fair value net of disposal expenses
□ Applicable√ N/A
The recoverable amount is determined according to the present value of the estimated future cash flows
□ Applicable√ N/A
Reason for the obvious difference between the information above and the information used in theimpairment test in previous years or external information
□ Applicable√ N/A
Reason for the obvious difference between the information used by the Company in the impairment testin previous years and the actual conditions of the corresponding year
□ Applicable√ N/A
(5). Performance covenant and impairment of the corresponding goodwill
There is a performance covenant and the reporting period or the prior period is within the period of theperformance covenant when the goodwill is generated
□ Applicable√ N/A
Other information
□ Applicable√ N/A
28. Long-term prepaid expenses
√ Applicable□ N/A
In RMBItem
Increase Amortization
| Opening balance | Other decreases | Closing balance |
6,296,126.87 697,548.87 3,112,311.63 3,881,364.11
| Decoration construction |
| RTO gas for |
the screen
22,018.46 22,018.46
| project | |||||
| Total | 6,318,145.33 | 697,548.87 | 3,134,330.09 | 3,881,364.11 |
Other information:
None
29. Deferred tax assets and deferred tax liabilities
(1). Deferred tax assets that are not offset
√ Applicable□ N/A
In RMBItem
| Closing balance | Opening balance | |
| Deductible | ||
temporary
Deferred tax
assets
| differences | Deductible |
temporary
Deferred tax
assets
| differences | ||
| Provision for impairment of assets |
96,345,264.75 14,463,438.06 74,115,172.24 11,117,383.83
175,058,220.53 26,211,159.26 210,685,301.87 31,602,795.28
| Unrealized profits for insider transactions | ||||
| Deductible losses | 222,129,019.57 | 44,784,854.23 | 239,029,918.69 | 35,854,487.80 |
| Provisions | 39,871,894.24 | 5,980,784.13 | 34,841,473.16 | 5,226,220.97 |
| Other current liabilities | 4,991,932.34 | 748,789.85 | ||
| Share-based payment expenses |
13,098,344.27 1,997,850.64 61,226,650.97 9,183,997.65
| Deferred income | 1,836,760.80 | 275,514.12 | 2,718,881.63 | 407,832.24 |
| Lease liabilities | 23,175,810.55 | 3,579,219.80 | 34,994,645.59 | 5,283,800.22 |
| Held-for-trading financial assets |
990,000.00 148,500.00
| Total | 571,515,314.71 | 97,292,820.24 | 663,593,976.49 | 99,573,807.84 |
(2). Deferred tax liabilities that are not offset
√ Applicable□ N/A
In RMBItem
| Closing balance | Opening balance | |
| Taxable | ||
temporary
Deferred tax
liabilities
| differences | Taxable |
temporary
Deferred tax
liabilities
| differences | ||||
| Long-term receivables | 77,454,128.29 | 11,618,119.24 | 69,036,668.06 | 10,355,500.21 |
| Right-of-use assets | 23,044,255.26 | 3,548,882.57 | 33,667,244.64 | 5,083,230.25 |
| Change in the fair value |
of held-for-trading
130,000.00 19,500.00
| financial assets | ||||
| Total | 100,628,383.55 | 15,186,501.81 | 102,703,912.70 | 15,438,730.46 |
(3). Deferred tax assets and deferred tax liabilities that are presented at the net amount after offset
√ Applicable□ N/A
In RMBItem
Closing set-off
amounts ofdeferred tax
balance ofdeferred tax
| assets or |
Opening set-off
amount ofdeferred tax
balance ofdeferred tax
| assets or |
| assets and liabilities | liabilities after set-off | assets and liabilities | liabilities after set-off | |
| Deferred tax assets | 13,412,546.67 | 83,880,273.57 | 14,209,075.65 | 85,364,732.19 |
| Deferred tax liabilities | 13,412,546.67 | 1,773,955.14 | 14,209,075.65 | 1,229,654.81 |
(4). Details of unrecognized deferred tax assets
√ Applicable□ N/A
In RMB
| Item | Closing balance | Opening balance |
| Deductible losses | 762,189,521.38 | 628,624,774.28 |
| Provision for impairment of assets | 53,245,482.60 | 72,217,063.30 |
| Unrealized profits for insider transactions |
11,273,470.20
17,628,227.02
| Provisions | 22,480,698.79 | 23,992,739.66 |
| Deferred income | 1,363,636.39 | 1,909,090.93 |
| Share-based payment expenses | 2,163,603.74 | 5,716,287.31 |
| Leases | 188,614.47 | 776,044.91 |
| Profit distribution from partnership enterprises |
22,937.98
4,900,000.00 4,900,000.00
| Changes in fair value of investments in other equity instruments | ||
| Total | 857,805,027.57 | 755,787,165.39 |
(5). Deductible losses, for which no deferred tax assets are recognized, will expire in the following years
√ Applicable□ N/A
In RMB
| Year | Closing balance | Opening balance | Remark |
| 2024 | 3,720,201.10 | 3,721,926.96 | |
| 2025 | 4,647,581.11 | 4,647,581.11 | |
| 2026 | 1,066,778.95 | 585,694.63 | |
| 2027 | 6,714,260.92 | 7,264,969.19 | |
| 2028 | 16,654,314.95 | 14,859,636.58 | |
| 2029 | 10,816,991.73 | ||
| 2031 | 86,704,079.12 | 86,704,079.12 | |
| 2032 | 173,940,470.57 | 174,220,126.74 | |
| 2033 | 195,668,349.41 | 168,693,830.07 | |
| 2034 | 71,184,252.21 | ||
| No expiry date | 191,072,241.31 | 167,926,929.88 | |
| Total | 762,189,521.38 | 628,624,774.28 | - |
Other information:
□ Applicable√ N/A
30. Other non-current assets
√ Applicable□ N/A
In RMBItem
| Closing balance | Opening balance |
Carryingamount
for
| impairment |
Book value
Carrying
amount
for
| impairment |
Book value
purchase oflong-term
| assets |
18,308,105.15 18,308,105.15 29,348,748.27 29,348,748.27
| Total | 18,308,105.15 | 18,308,105.15 | 29,348,748.27 | 29,348,748.27 |
Other information:
None
31. Items of restricted assets
√ Applicable□ N/A
In RMBItem
| Closing | Opening |
Carryingamount
Book value
Type ofrestriction
Restrictio
n
Carrying
amount
Book value
Restriction
Monetaryfunds
100,412,876.66 100,412,876.66
Time
| Type of restriction | ||
| deposits and |
interests,
security
deposit,
funds in
restricted
accounts
timedeposits
andinterests,accountsecuritydeposits,
andrestricted
| payments |
88,979,653.31
88,979,653.31
| Time deposits and interests, security deposit, funds in restricted accounts |
| Undue time deposits and interests, account security deposits, and restricted payments | ||
| Intangible assets |
330,630,000.00 264,503,999.76Mortgage
| Mortgage collateral | 330,630,000.00 |
270,014,499.78
| Mortgage | Mortgage collateral | ||
| Monetary funds |
112,745,931.53 112,745,931.53
Refer to thenote below
the note
| below |
| Accounts receivable |
18,366,576.06 17,291,094.19
Refer to thenote below
the note
| below |
| Other receivables |
14,610,056.60 14,367,063.15
Refer to thenote below
the note
| below |
| Other current assets |
753,231.42 753,231.42
Refer to thenote below
the note
| below |
| Other non-current financial assets |
99,443,720.92
99,443,720.92
Refer to thenote below
Refer tothe note
below
| Fixed assets |
6,481,012.00 2,243,955.29
Refer to thenote below
the note
| below |
| Right |
-of-
1,256,326.63 1,116,734.85
Refer to thenote below
| use assets | Refer to |
the note
| below | ||||||||
| Total | 684,699,731.82 | 612,878,607.77 | 419,609,653.31 | 358,994,153.09 |
Note:
1. Since GDC BVI requested the U.S. arbitration tribunal to intervene in the implementation of the equity
transaction plan released by the Company in April 2024, considering that this arbitration case was undertrial and to respect for the arbitration trial, Appotronics HK constrained itself at the end of the period andsuspended the efforts for promoting conditions for the equity transaction. For the sake of prudence, the
Company recorded all the assets of Appotronics HK as restricted assets. The parties are in negotiationwith each other at present, and the specific result of the negotiation will be announced separately.
2. This arbitration case is still under trial at present. The self-constraint on the assets above does not
indicate the arbitration result of this case, while the final arbitration result is subject to the decision of thearbitration tribunal.Other information:
None
32. Short-term borrowings
(1). Categories of short-term borrowings
√ Applicable□ N/A
In RMB
| Item | Closing balance | Opening balance |
| Pledge borrowings | 50,000,000.00 | 50,000,000.00 |
| Guaranteed loans | 30,000,000.00 | |
| Interest payable | 32,500.00 | 36,500.00 |
| Total | 50,032,500.00 | 80,036,500.00 |
Description of categories of short-term borrowings:
None
(2). Short-term borrowings overdue but not yet repaid
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
33. Held-for-trading financial liabilities
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
34. Derivative financial liabilities
□ Applicable√ N/A
35. Notes payable
√ Applicable□ N/A
In RMB
| Category | Closing balance | Opening balance |
| Commercial acceptance bills | ||
| Bank acceptance bills | 105,114,863.34 | 76,001,079.07 |
| Total | 105,114,863.34 | 76,001,079.07 |
Total notes payable matured but not paid yet is RMB 0 at the end of the period.
36. Accounts payable
(1). Presented by accounts payable
√ Applicable□ N/A
In RMB
| Item | Closing balance | Opening balance |
| Amounts payable for purchase | 403,638,748.50 | 247,318,466.10 |
| Total | 403,638,748.50 | 247,318,466.10 |
(2). Accounts payable with significant amounts aged more than 1 year or overdue
□ Applicable√ N/A
Other information:
√ Applicable□ N/A
Top five closing balances of accounts payable categorized by suppliers
Entity Carrying amount
| Proportion to the balance of payables (%) | ||
| Top 1 | 33,499,983.90 | 8.30 |
| Top 2 | 29,699,212.57 | 7.36 |
| Top 3 | 25,405,684.75 | 6.29 |
| Top 4 | 23,459,430.10 | 5.81 |
| Top 5 | 17,527,483.96 | 4.34 |
| Sub-total | 129,591,795.28 | 32.11 |
37. Receipts in advance
(1). Presented by receipts in advance
√ Applicable□ N/A
In RMB
| Item | Closing balance | Opening balance |
| Advance payments of recharge fees |
101,638,526.13 110,573,711.24
| Total | 101,638,526.13 | 110,573,711.24 |
(2). Receipts in advance with significant amounts aged more than 1 year
□ Applicable√ N/A
(3). Amount and reasons for major changes in the book value during the reporting period
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
38. Contract liabilities
(1). Description of contract liabilities
√ Applicable□ N/A
In RMB
| Item | Closing balance | Opening balance |
| Goods payment | 43,087,407.22 | 45,416,445.99 |
| Total | 43,087,407.22 | 45,416,445.99 |
(2). Contract liabilities with significant amounts aged more than 1 year
□ Applicable√ N/A
(3). Amount and reasons for major changes in the book value during the reporting period
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
39. Employee benefits payable
(1). Presented by employee benefits payable
√ Applicable□ N/A
In RMBItem
Increase Decrease
| Opening balance | Closing balance | |||
| I. Short-term benefits | 60,944,415.44 | 182,133,546.01 | 211,896,324.85 | 31,181,636.60 |
| II. Post-employment benefits-defined contribution plan |
235,754.95 7,956,402.06 7,964,921.19 227,235.82
| III. Dismissal benefits | 5,694,064.08 | 1,978,711.22 | 7,672,775.30 | |
| IV. Other benefits due within 1 year | ||||
| Total | 66,874,234.47 | 192,068,659.29 | 227,534,021.34 | 31,408,872.42 |
(2). Presented by short-term employee benefits
√ Applicable□ N/A
In RMBItem
Increase Decrease
| Opening balance | Closing balance | ||
| I. Wages or salaries, |
bonuses, allowances and
60,435,649.25 162,724,378.94 192,456,183.94 30,703,844.25
| subsidies | ||||
| II. Staff welfare | 276,355.00 | 3,396,517.11 | 3,474,660.34 | 198,211.77 |
| III. Social security contributions |
151,646.45 5,606,904.26 5,613,250.27 145,300.44
143,966.79 5,125,273.00 5,131,310.83 137,928.96
| Including: Medical insurance |
| Work injury insurance |
7,662.68 250,195.90 250,504.08 7,354.50
| Maternity insurance | 16.98 | 231,435.36 | 231,435.36 | 16.98 |
| IV. Housing funds | 21,519.00 | 9,829,189.20 | 9,831,900.20 | 18,808.00 |
| V. Union running costs and employee education costs |
59,245.74 576,556.50 520,330.10 115,472.14
| VI. Short-term paid leaves | ||||
| VII. Short-term profit sharing plan | ||||
| Total | 60,944,415.44 | 182,133,546.01 | 211,896,324.85 | 31,181,636.60 |
(3). Presented by defined contribution plan
√ Applicable□ N/A
In RMBItem
Increase Decrease
| Opening balance | Closing balance | |||
| 1. Basic pensions | 228,085.12 | 7,635,064.59 | 7,643,325.55 | 219,824.16 |
| 2. Unemployment insurance |
7,669.83 321,337.47 321,595.64 7,411.66
| 3. Enterprise annuity contribution | ||||
| Total | 235,754.95 | 7,956,402.06 | 7,964,921.19 | 227,235.82 |
Other information:
□ Applicable√ N/A
40. Taxes payable
√ Applicable□ N/A
In RMB
| Item | Closing balance | Opening balance |
| Value-added tax (VAT) | 1,450,683.95 | 359,180.74 |
| Enterprise income tax | 6,178,554.09 | 1,334,766.59 |
| Individual income tax | 1,430,010.73 | 3,528,285.07 |
| City maintenance and construction tax |
385,108.07 293,453.55
| Education surcharges | 167,711.49 | 129,503.34 |
| Local education surcharges | 111,807.65 | 83,464.21 |
| Stamp duty | 429,618.26 | 399,474.92 |
| Annual franchise right tax | 14,519.54 | |
| Urban land use tax | 8,914.32 | 56.27 |
| Total | 10,162,408.56 | 6,142,704.23 |
Other information:
None
41. Other payables
Presented by item
√ Applicable□ N/A
In RMB
| Item | Closing balance | Opening balance |
| Interest payable | ||
| Dividend payable | 32,084,193.96 | |
| Other payables | 58,271,094.03 | 54,142,509.17 |
| Total | 90,355,287.99 | 54,142,509.17 |
Interest payable
□ Applicable√ N/A
Dividends payable
√ Applicable□ N/A
In RMB
| Item | Closing balance | Opening balance |
| Dividends on ordinary shares | 32,084,193.96 | |
| Total | 32,084,193.96 |
Other description, including significant dividend payable with aging of over 1 year, and the reason fornon-payment shall be disclosed:
None
Other payables
(1). Other payables presented by nature
√ Applicable□ N/A
In RMB
| Item | Closing balance | Opening balance |
| Withholding | 518,765.68 | 519,802.15 |
| Deposits/margins | 11,511,206.44 | 14,940,040.78 |
| Withdrawals in advance | 44,476,193.44 | 35,291,543.85 |
| Temporary receipts payable | 1,764,928.47 | 3,391,122.39 |
| Total | 58,271,094.03 | 54,142,509.17 |
(2). Other payables with significant amounts aged more than 1 year or overdue
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
42. Liabilities held for sale
□ Applicable√ N/A
43. Non-current liabilities due within 1 year
√ Applicable□ N/A
In RMB
| Item | Closing balance | Opening balance |
| Long-term borrowings due within 1 year |
307,239,564.91 241,906,668.40
| Bonds payable due within one year |
| Long-term payables due within 1 year |
17,534,937.28 26,571,363.83
| Interest payable | 50,192.50 | 270,119.44 |
| Total | 324,824,694.69 | 268,748,151.67 |
Other information:
None
44. Other current liabilities
√ Applicable□ N/A
In RMB
| Item | Closing balance | Opening balance |
| Rebates payable | 12,437,221.80 | 14,406,021.16 |
| Taxes to be written off | 2,683,187.12 | 4,035,664.67 |
| Endorsement of notes receivable not derecognized |
860,000.00
| Total | 15,980,408.92 | 18,441,685.83 |
Changes in short-term bonds payable:
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
45. Long-term borrowings
(1). Categories of long-term borrowings
√ Applicable□ N/A
In RMB
| Item | Closing balance | Opening balance |
| Guaranteed loans and loans against collateral |
134,360,312.56
| 136,305,570.04 | ||
| Guaranteed loans | 70,053,867.78 | 136,980,000.00 |
| Credit loans | 117,000,000.00 | 97,000,000.00 |
| Interest payable | 238,579.75 | 364,061.18 |
| Total | 321,652,760.09 | 370,649,631.22 |
Description for categories of long-term borrowings:
NoneOther information
□ Applicable√ N/A
46. Bonds payable
(1). Bonds payable
□ Applicable√ N/A
(2). Specific information about bonds payable: (excluding other financial instruments such as
preference shares, perpetual bonds and others classified as financial liabilities)
□ Applicable√ N/A
(3). Description of convertible corporate bonds
□ Applicable√ N/A
Accounting treatment and determination basis of conversion rights
□ Applicable√ N/A
(4). Description of other financial instruments classified as financial liabilities
Basic information on other financial instruments including outstanding preferred shares and perpetualbonds at the end of the period
□ Applicable√ N/A
Changes in financial instruments including outstanding preferred shares and perpetual bonds at the endof the period
□ Applicable√ N/A
Description of other financial instruments classified as financial liabilities
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
47. Lease liabilities
√ Applicable□ N/A
In RMB
| Item | Closing balance | Opening balance |
| Unpaid lease payments | 12,668,162.33 | 16,514,060.82 |
| Less: Financing charges not recognized |
677,295.46
| 965,075.11 | ||
| Total | 11,990,866.87 | 15,548,985.71 |
Other information:
None
48. Long-term payables
Presented by item
□ Applicable√ N/A
Long-term payables
□ Applicable√ N/A
Special payables
□ Applicable√ N/A
49. Long-term employee benefits payable
□ Applicable√ N/A
(1). Long-term employee benefits payable
□ Applicable√ N/A
(2). Changes in defined benefit plan
Present value of the obligations under the defined benefit plan:
□ Applicable√ N/A
Assets under the plan:
□ Applicable√ N/A
Net liabilities (net assets) under the defined benefit plan
□ Applicable√ N/A
Description of the impact of the content of the defined benefit plan and associated risks on the futurecash flow, time, and uncertainty of the Company:
□ Applicable√ N/A
Description of major actuarial assumptions and sensitivity analysis result for the defined benefit plan
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
50. Provisions
√ Applicable□ N/A
In RMB
| Item | Opening balance | Closing balance | Reason |
| Pending litigation | 5,154,659.93 | 3,939,065.02 | |
| Product quality warranty |
50,530,730.18
49,686,637.61
| Expenses for “three guarantees” services | |||
| Amounts payable for goods returned |
2,495,594.97
672,843.14
| Total | 58,180,985.08 | 54,298,545.77 |
Other description, including significant assumptions and estimates relative to material provisions:
None
51. Deferred income
Description of deferred income
√ Applicable□ N/A
In RMB
Item
Increase Decrease
| Opening balance | Closing balance |
Reason
3,749,594.97
| Government grants related to assets |
1,078,195.8 2,671,399.17
Government grantsrelated to income
878,377.59
| The relevant asset is within its service life | ||
333,700.00 683,079.57 528,998.02
relevant costs, expenses,or losses in subsequent
| periods | |||||
| Total | 4,627,972.56 | 333,700.00 | 1,761,275.37 | 3,200,397.19 | - |
Other information:
□ Applicable√ N/A
52. Other non-current liabilities
□ Applicable√ N/A
53. Share capital
√ Applicable□ N/A
In RMB
Openingbalance
| Changes (+, -) | ||
Closing balanceIssuance ofnew shares
Bonusshares
on ofcapital
| reserve |
Others Sub-total
462,211,338.00 2,922,290.00 2,922,290.00 465,133,628.00Other information:
(1) On January 29, 2024, the Company received the additional investment of RMB 7,327,467.64 in total
paid by 10 qualified grantees of share incentives under the 2021 Second Restricted Share Incentive Planand 2022 First Restricted Share Incentive Plan, including RMB 394,040.00 recognized as share capital,RMB 6,933,427.64 recognized as capital premium (share premium), and RMB 2,395,251.2 transferredfrom capital reserve - other capital reserve to capital premium (share premium). Pan-China CertifiedPublic Accountants LLP audited this capital increase and issued a Capital Verification Report (Tian JianYan (2024) No. 7-4).
(2) On June 14, 2024, the Company received the additional investment of RMB 38,785,883.25 in total
paid by 62 qualified grantees of share incentives under the 2022 First Restricted Share Incentive Plan,including RMB 2,528,250.00 recognized as share capital, RMB 36,257,633.25 recognized as capitalpremium (share premium), and RMB 6,977,970.00 transferred from capital reserve - other capital reserveto capital premium (share premium). Pan-China Certified Public Accountants LLP audited this capitalincrease and issued a Capital Verification Report (Tian Jian Yan (2024) No. 7-13).
54. Other equity instruments
(1). Basic information on other financial instruments including outstanding preferred shares and
perpetual bonds at the end of the period
□ Applicable√ N/A
(2). Changes in financial instruments including outstanding preferred shares and perpetual bonds at
the end of the period
□ Applicable√ N/A
Changes of other equity instruments in the current period, reasons for such change and basis for relatedaccounting treatments:
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
55. Capital reserve
√ Applicable□ N/A
In RMB
| Item | Opening balance | Increase | Decrease | Closing balance |
| Capital premium (Share premium) |
1,468,447,805.00
52,564,282.09
| 1,521,012,087.09 | ||||
| Other capital reserve | 148,041,762.43 | -4,861,814.07 | 9,373,221.20 | 133,806,727.16 |
| Total | 1,616,489,567.43 | 47,702,468.02 | 9,373,221.20 | 1,654,818,814.25 |
Other description, including changes in the current period and reasons for changes:
(1) Refer to VII.53 of Section X for the increase in the capital reserve - share premium in the current
period.
(2) Refer to VII.53 of Section X for the decrease in the capital reserve - other capital reserve in the current
period.
(3) The total expense of equity-settled share-based payments amounted to RMB 8,095,798.69, in which
RMB 6,723,490.18 was recognized in the capital reserve (other capital reserve) and RMB 1,372,308.51was charged to the amount attributable to minority interests.
(4) With respect to the temporary difference by which the fair value at the end of period of restricted shares
granted by the Company in the current period is greater than the fair value at the grant date, the Companyrecognized the decrease in deferred tax assets by RMB 3,333,268.04, the decrease in the capital reserve(other capital reserve) by RMB 3,101,980.56, and the decrease in the minority interests by RMB231,287.49.
(5) The capital reserve (other capital reserve) was adjusted by RMB -8,483,323.69 due to the acquisition
of minority interests, increasing the investment in participating companies, and conversion of convertiblebonds of subsidiaries into shares.
56. Treasury shares
√ Applicable□ N/A
In RMB
| Item | Opening balance | Increase | Decrease | Closing balance |
| Treasury shares | 19,377,297.59 | 89,540,479.04 | 108,917,776.63 | |
| Total | 19,377,297.59 | 89,540,479.04 | 108,917,776.63 |
Other description, including changes in the current period and reasons for changes:
None
57. Other comprehensive income
√ Applicable□ N/A
In RMB
Item
Openingbalance
ClosingbalanceAmount incurred for thecurrent period before tax
Less: Amountpreviouslyincluded inothercomprehensiveincome andtransferred toprofit or lossfor the period
| Amount for the current period | ||
| Less: Amount | ||
previouslyincluded inothercomprehensiveincome andtransferred to
retainedearnings for
Less:
Income
taxexpense
Attributableto owners of
the parentcompanyafter tax
Attributableto minorityshareholders
after tax
| the period | ||
| I. Other |
comprehensiveincome that cannotbe reclassifiedsubsequently to
-4,900,000.00 -4,900,000.00
| profit or loss |
| Including: Changes |
from remeasurementof defined benefit
| plans |
| Other |
comprehensiveincome that cannotbe reclassified toprofit or loss under
| the equity method |
| Changes in fair |
value of investmentsin other equity
-4,900,000.00 -4,900,000.00
value of enterprises’
| own credit risks |
comprehensiveincome that will bereclassified to profit
| or loss |
12,450,073.78 -1,282,521.47 -2,787,954.28
1,452,210.99 53,221.84 13,902,284.77
| Including: Other |
comprehensiveincome that will bereclassified to profitor loss under the
-16,306,810.51
0.00
-16,306,810.51
| equity method |
16,306,810.51
0.00
| Changes in fair |
value of other debt
| investments |
| Amount of |
financial assetsreclassified to othercomprehensive
| income |
| Provision for |
credit impairment ofother debt
| investments |
| Reserve for cash flow hedges |
differences ontranslation offinancial statementsdenominated in
| foreign currencies |
28,756,884.29
-1,282,521.4713,518,856.23
-14,854,599.52
53,221.84 13,902,284.77
comprehensive
| income |
7,550,073.78 -1,282,521.47 -2,787,954.28 1,452,210.99 53,221.84 9,002,284.77
Other description, including adjustments on transferring the effective portion of cash flow hedges to amount upon initial recognition of the hedged item:
None
58. Special reserve
□ Applicable√ N/A
59. Surplus reserve
√ Applicable□ N/A
In RMB
| Item | Opening balance | Increase | Decrease | Closing balance |
| Statutory surplus reserve |
84,873,365.32 84,873,365.32
| Discretionary surplus reserves | ||||
| Reserve fund | ||||
| Enterprise development fund |
businesscombination
| involving entities under common control |
| Total | 84,873,365.32 | 84,873,365.32 |
Surplus reserve description, including changes in the current period and reasons for changes:
None
60. Retained profits
√ Applicable□ N/A
In RMB
| Item | Current period | Prior year |
| Retained profits at the end of the prior period before adjustment |
667,122,406.05
| 597,924,451.67 | ||
| Total adjusted undistributed profits at the beginning of the period (Add: +; Less: -) | ||
| Retained profits at the beginning of the period after adjustment |
667,122,406.05
597,924,451.67
| Add: Net profit attributable to owners of the parent company for the period |
10,909,613.44
103,186,743.57
| Less: Appropriation to statutory surplus reserve |
9,353,583.26
| Appropriation to discretionary surplus reserve | ||
| Appropriation to general risk reserve | ||
| Declaration of dividends on ordinary shares |
32,084,193.96
| Conversion of ordinary shares’ dividends into share capital | ||
| Distributed dividend | 24,635,205.93 | |
| Retained profits at the end of the period | 645,947,825.53 | 667,122,406.05 |
Details of adjustments to undistributed profits at the beginning of the period:
1. As a result of the retrospective adjustment of the Accounting Standards for Business Enterprises and
related new regulations, undistributed profits at the beginning of the period were affected by RMB 0.00.
2. Retained profits at the beginning of the period were affected by RMB 0.00 due to changes in accounting
policies.
3. Retained profits at the beginning of the period were affected by RMB 0.00 due to the correction of
significant accounting errors.
4. Retained profits at the beginning of the period were affected by RMB 0.00 due to changes in the scope
of consolidation resulting from business combinations involving entities under common control.
5. Retained profits at the beginning of the period were affected by RMB 0.00 in total due to other
adjustments.
61. Operating income and operating costs
(1). Description of operating income and operating costs
√ Applicable□ N/A
In RMBItem
| During the reporting period | Prior period | |||
| Revenue | Cost | Revenue | Cost | |
| Main business | 1,081,409,500.21 | 745,633,299.59 | 1,073,249,037.75 | 668,659,467.49 |
| Other business | ||||
| Total | 1,081,409,500.21 | 745,633,299.59 | 1,073,249,037.75 | 668,659,467.49 |
(2). Breakdown of operating income and operating cost
□ Applicable√ N/A
Other information
√ Applicable□ N/A
Breakdown of revenue from contracts with customers by category:
In RMB
| During the reporting period | ||
| Item | Operating income | Operating costs |
| Main business areas: | ||
| Domestic | 809,130,906.68 | 617,372,137.92 |
| Overseas | 110,168,311.16 | 58,466,951.37 |
| Sub-total | 919,299,217.84 | 675,839,089.29 |
| Main product type: | ||
| Core device business | 433,840,052.95 | 312,732,607.05 |
| Complete projector equipment | 414,535,359.11 | 305,861,480.63 |
| Others | 70,923,805.78 | 57,245,001.61 |
| Sub-total | 919,299,217.84 | 675,839,089.29 |
| Revenue recognition time: | ||
| Goods (transferred at a time point) | ||
916,302,479.76 674,243,395.72
2,996,738.08 1,595,693.57
| Services (provided during a specific period of time) | ||
| Sub-total | 919,299,217.84 | 675,839,089.29 |
(3). Description of performance obligations
□ Applicable√ N/A
(4). Description of allocation to remaining performance obligations
□ Applicable√ N/A
(5). Material contract changes or material adjustments in transaction prices
□ Applicable√ N/A
Other information:
None
62. Taxes and surcharges
√ Applicable□ N/A
In RMB
| Item | During the reporting period | Prior period |
| City maintenance and construction tax |
1,702,370.48
| 1,849,757.98 | ||
| Education surcharges | 740,255.99 | 810,475.02 |
| Stamp duty | 497,715.63 | 718,782.33 |
| Local education surcharges | 766,086.74 | 540,316.68 |
| Others | 33,169.56 | 86,419.52 |
| Total | 3,739,598.40 | 4,005,751.53 |
Other information:
None
63. Selling expenses
√ Applicable□ N/A
In RMB
Item
Prior period
| During the reporting period | ||
| Marketing fees | 19,608,143.75 | 67,103,262.08 |
| Employee benefits | 36,545,525.82 | 44,813,421.97 |
| After-sale repair expenses | 8,097,912.56 | 8,783,249.44 |
| Travel expenses | 3,747,269.03 | 3,323,826.10 |
| Advertising and business promotion expenses |
1,194,151.94 2,606,865.49
| Business entertainment expenses | 1,290,538.87 | 891,056.45 |
| Service fees | 15,109,595.41 | 6,384,443.11 |
| Other expenses | 13,729,763.88 | 9,493,535.38 |
| Total | 99,322,901.25 | 143,399,660.02 |
Other information:
None
64. Administrative expenses
√ Applicable□ N/A
In RMB
| Item | During the reporting period | Prior period |
| Employee benefits | 34,071,951.83 | 34,743,913.52 |
| Share-based payment expenses | 8,095,829.69 | 25,008,586.26 |
| Service fees | 25,451,519.08 | 13,261,395.13 |
| Depreciation and amortization expenses | 6,284,108.94 | 6,559,184.36 |
| Rent expense | 1,909,486.09 | 2,699,984.57 |
| Other expenses | 6,429,642.17 | 4,423,159.98 |
| Total | 82,242,537.80 | 86,696,223.82 |
Other information:
None
65. R&D expenses
√ Applicable□ N/A
In RMB
| Item | During the reporting period | Prior period |
| Employee benefits | 77,178,286.66 | 86,643,213.03 |
| Material consumption expenses | 9,883,197.10 | 11,968,242.66 |
| Rent expense | 2,194,206.38 | 2,027,319.05 |
| Service fees | 2,959,461.32 | 6,014,448.00 |
| Depreciation and amortization expenses | 8,922,669.56 | 7,408,217.43 |
| Testing expenses | 3,484,793.48 | 2,233,677.17 |
| Patent fees | 3,277,677.31 | 1,909,173.76 |
| Other expenses | 3,718,495.39 | 8,201,851.02 |
| Total | 111,618,787.20 | 126,406,142.12 |
Other information:
None
66. Financial expenses
√ Applicable□ N/A
In RMB
| Item | During the reporting period | Prior period |
| Interest expenses | 9,734,387.30 | 7,061,642.05 |
| Less: Interest income | -16,592,276.88 | -15,604,073.30 |
| Exchange profit or loss | 503,613.81 | -9,807,901.42 |
| Bank service charges | 395,880.48 | 1,328,926.10 |
| Total | -5,958,395.29 | -17,021,406.56 |
Other information:
None
67. Other income
√ Applicable□ N/A
In RMB
| Classified by nature | During the reporting period | Prior period |
| Government grants related to assets | 1,078,195.80 | 1,078,195.80 |
| Government grants related to income | 6,281,595.04 | 17,036,319.77 |
| Refund of transaction fees for withholding individual income taxes | 566,343.98 | 442,061.07 |
| Additional deduction of input VAT | 4,596,330.89 | 620,900.93 |
| Refunds for software of value-added taxes | 2,406,946.80 | 4,431,505.74 |
| Total | 14,929,412.51 | 23,608,983.31 |
Other information:
Government grants recognized in other income in the current period are disclosed in XI of Section X indetail.
68. Investment income
√ Applicable□ N/A
In RMBItem
Prior period
| During the reporting period | |
| Long-term equity investment accounted for using the equity method |
-4,358,211.40 -8,071,814.75
-37,353,061.61
| Investment income from the disposal of long-term equity investments |
| Investment income from held-for-trading financial assets during the holding period |
| Dividend income from other equity instrument investments during the holding period |
| Interest income from debt investments during the holding period |
| Interest income from other debt investments during the holding period |
| Investment income from disposal of held-for-trading financial assets |
16,264,140.92 5,265,708.55
| Investment income from disposal of other equity instrument investments | ||
| Investment income from the disposal of debt investments | ||
| Investment income from the disposal of other debt investments | ||
| Profits from debt restructuring | ||
| Others | -359,837.45 | |
| Total | -25,806,969.54 | -2,806,106.20 |
Other information:
None
69. Income from net exposure hedges
□ Applicable√ N/A
70. Gains from changes in fair values
√ Applicable□ N/A
In RMB
During the reporting period Prior period
| Source of gains from changes in fair values | ||
| Held-for-trading financial assets | 10,062,500.00 | |
| Including: Gains from changes in |
fair values generated by derivative
| financial instruments | ||
| Held-for-trading financial liabilities | ||
| Investment property measured at fair value | ||
| Total | 10,062,500.00 |
Other information:
None
71. Gains on disposal of assets
√ Applicable□ N/A
In RMB
| Item | During the reporting period | Prior period |
| Gains from disposal of fixed assets | -49,364.10 | 18,395.62 |
| Gains from disposal of right-of-use assets | 39,468.76 |
-
| 3,133.47 | ||
| Total | -9,895.34 | 15,262.15 |
Other information:
□ Applicable√ N/A
72. Losses of credit impairment
√ Applicable□ N/A
In RMB
Item
Prior period
| During the reporting period | ||
| Impairment losses of notes receivable | 313,872.72 | -61,544.10 |
| Impairment losses of accounts receivable |
-7,145,762.28 -2,667,868.31
| Impairment losses of other receivables | -49,362.84 | -60,565.45 |
| Impairment losses of debt investments | ||
| Impairment losses of other debt investments |
-3,556,553.22 -723,105.21
| Impairment losses related to financial guarantees | ||
| Total | -10,437,805.62 | -3,513,083.07 |
Other information:
None
73. Impairment losses of assets
√ Applicable□ N/A
In RMBItem
Prior period
| During the reporting period | ||
| I. Impairment losses of contract assets | -189,044.40 | -90,452.65 |
| II. Losses of decline in value of inventories and losses of contract performance cost |
-26,651,240.39 -27,089,793.54
| III. Impairment losses of long-term equity investments | ||
| IV. Impairment losses of investment properties | ||
| V. Impairment losses of fixed assets | -1,021,252.37 | -1,833,685.55 |
| VI. Impairment losses of construction materials | ||
| VII. Impairment losses of construction in progress |
| VIII. Impairment losses of productive biological assets | ||
| IX. Impairment losses of oil and gas assets | ||
| X. Impairment losses of intangible assets | ||
| XI. Goodwill impairment losses | ||
| XII. Others | ||
| Total | -27,861,537.16 | -29,013,931.74 |
Other information:
None
74. Non-operating income
√ Applicable□ N/A
In RMBItem
reporting
| period |
Prior period
non-recurring profit
| or loss for the period | |||
| Total gains from disposal of non-current assets |
11,482.30
| Including: Gains from the disposal of fixed assets |
11,482.30
| Gains from disposal of intangible assets | |||
| Gains from debt restructuring | |||
| Gains from the exchange of non-monetary assets | |||
| Donation receipts | |||
| Government grants | 30,000.00 | 9,000,000.00 | 30,000.00 |
| Amounts not required for payment | 14,610.48 |
233,306.16
| 14,610.48 | |||
| Others | 1,133,368.38 | 179,559.37 | 1,133,368.38 |
| Total | 1,177,978.86 | 9,424,347.83 | 1,177,978.86 |
Other information:
□ Applicable√ N/A
75. Non-operating expenses
√ Applicable□ N/A
In RMBItem
During thereporting period
Prior period
non-recurring profit
| or loss for the period | ||
| Total losses from disposal of non-current assets |
533,012.62 242,877.32
| 533,012.62 | ||
| Including: Losses from disposal of fixed assets |
432,667.15 242,877.32
| 432,667.15 | |||
| Losses from disposal of intangible assets | |||
| Losses from debt restructuring | |||
| Losses from the exchange of non-monetary assets | |||
| External donations | |||
| Penalties and overdue fines | 16,581.33 | 27,463.52 | 16,581.33 |
| Others | 27,938.47 | 370,921.08 | 27,938.47 |
| Total | 577,532.42 | 641,261.92 | 577,532.42 |
Other information:
None
76. Income tax expense
(1). Statement of income tax expense
√ Applicable□ N/A
In RMB
| Item | During the reporting period | Prior period |
| Income tax expense in the current period |
10,521,359.94
8,337,698.37
| Deferred income tax expenses | -1,304,509.08 | 10,312,245.27 |
| Total | 9,216,850.86 | 18,649,943.64 |
(2). Reconciliation of income tax expenses to the accounting profit
√ Applicable□ N/A
In RMB
| Item | During the reporting period |
| Total profit | 6,286,922.55 |
| Income tax expense calculated based on statutory/applicable tax rate |
943,038.36
| Effect of different tax rates of subsidiaries operating in other jurisdictions |
-514,726.20
| Effect of income tax for the period before adjustment |
1,868,596.99
| Effect of non-taxable income | 2,348,336.58 |
| Effect of non-deductible cost, expense and loss | 927,905.43 |
| Effect of utilizing deductible loss not recognized for deferred tax assets for prior period |
-2,145,717.81
| Effect of deductible temporary difference or |
deductible loss not recognized for deferred tax
25,212,443.56
| assets for the current period | |
| Change in the balance of opening deferred tax assets caused by tax rate adjustment |
-12,748,634.41
| Effect of additional deduction of R&D expenses | -11,374,555.60 |
| Others | 4,700,163.96 |
| Income tax expenses | 9,216,850.86 |
Other information:
□ Applicable√ N/A
77. Other comprehensive income
√ Applicable□ N/A
Refer to VII. 57 of Section X for details.
78. Items in the cash flow statement
(1). Cash related to operating activities
Other cash receipts relating to operating activities
√ Applicable□ N/A
In RMB
| Item | During the reporting period | Prior period |
| Interest income | 13,656,180.65 | 15,203,804.27 |
| Government grants | 8,363,175.91 | 31,156,389.47 |
| Recovery of security deposits | 1,256,029.04 | 38,485,289.61 |
| Non-operating income | 75,533.40 | 167,768.72 |
| Other transaction accounts | 3,594,370.81 | 5,824,075.57 |
| Total | 26,945,289.81 | 90,837,327.64 |
Description of other cash receipts relating to operating activities:
NoneOther cash payments relating to operating activities
√ Applicable□ N/A
In RMB
| Item | During the reporting period | Prior period |
| Administrative expenses, selling |
expenses, and R&D expenses paid in
101,451,691.27
| cash | 133,812,521.03 | |
| Non-operating expenses | 14,897.31 | 369,426.97 |
| Payment of security deposits | 31,586,113.28 | 14,513,684.21 |
| Service charges | 496,338.84 | 777,510.79 |
| Addition of restricted monetary funds | 112,745,931.53 | |
| Other transaction accounts | 5,342,298.48 | 3,961,686.89 |
| Total | 251,637,270.71 | 153,434,829.89 |
Description of other cash payments relating to operating activities:
None
(2). Cash related to investing activities
Cash receipts related to significant investing activities
√ Applicable□ N/A
In RMB
| Item | During the reporting period | Prior period |
| Redemption of wealth management products |
766,000,000.00 765,000,000.00
14,000,000.00
| Sales of held-for-trading financial assets | ||
| Total | 780,000,000.00 | 765,000,000.00 |
Description of cash receipts related to significant investing activities:
NoneCash payments related to significant investing activities
√ Applicable□ N/A
In RMB
| Item | During the reporting period | Prior period |
768,000,000.00 976,816,480.00
| Investment and wealth management products | ||
| Acquisition of minority interests | 1.00 | |
| Total | 768,000,001.00 | 976,816,480.00 |
Description of cash payments related to significant investing activities:
NoneOther cash receipts relating to investing activities
√ Applicable□ N/A
In RMB
| Item | During the reporting period | Prior period |
| Refund of down payment for equity investment |
1,362,168.77
| Total | 1,362,168.77 |
Description of other cash receipts related to investing activities:
None
Other cash payments relating to operating activities
√ Applicable□ N/A
In RMB
| Item | During the reporting period | Prior period |
| Down payment for equity investment | 1,364,715.49 | |
| Total | 1,364,715.49 |
Description of other cash payments relating to investing activities:
None
(3). Cash related to financing activities
Other cash receipts relating to financing activities
□ Applicable√ N/A
Other cash payments relating to financing activities
√ Applicable□ N/A
In RMB
| Item | During the reporting period | Prior period |
| Dividend payments | 23,814.21 | |
| Actual lease payment | 16,998,728.27 | 17,383,232.80 |
| Share repurchase payment | 89,540,479.04 | |
| Total | 106,539,207.31 | 17,407,047.01 |
Description of other cash payments relating to financing activities:
NoneChanges in various liabilities due to financing activities
√ Applicable□ N/A
In RMBItem
Openingbalance
| Increase | Decrease |
Closingbalance
| Cash change | Non-cash change | Cash change | Non-cash change | ||
| Short-term borrowings |
80,036,500.00 794,888.87 30,798,888.87 50,032,500.00
liabilities due
| within 1 year |
268,748,151.67 156,938,885.03 100,862,342.01
324,824,694.69
| Long-term borrowings |
370,649,631.22 95,230,654.50 6,053,089.35 6,032,685.19 144,247,929.79 321,652,760.09
| Total | 719,434,282.89 | 95,230,654.50 | 163,786,863.25 | 137,693,916.07 | 144,247,929.79 | 696,509,954.78 |
(4). Description of cash flows stated on a net basis
□ Applicable√ N/A
(5). Significant activities that do not involve receipts and payments of cash in the current period, but
affect the financial position of the enterprise or may affect the cash flows of the enterprise in thefuture
□ Applicable√ N/A
79. Supplementary information to the cash flow statement
(1) Supplementary information to the cash flow statement
√ Applicable□ N/A
In RMBSupplementary information
| Amount for the current period | Amount for the prior period | |
| 1. Reconciliation of net profit to cash flow from operating activities: |
| Net profit | -2,929,928.31 | 39,527,466.05 |
| Add: Provision for impairment of assets | 27,861,537.16 | 29,013,931.74 |
| Impairment losses of credit | 10,437,805.62 | 3,513,083.07 |
| Depreciation of fixed assets, depletion of oil and gas assets, depreciation of productive biological assets | 61,299,362.63 |
59,926,542.86
| Amortization of right-of-use assets | 14,137,642.55 | 14,899,916.76 |
| Amortization of intangible assets | 2,258,010.54 | 2,121,924.37 |
| Amortization of long-term prepaid expenses | 3,134,330.09 | 1,956,826.99 |
| Losses on disposal of fixed assets, intangible assets and other long-term assets (gains are indicated by “-”) |
-15,262.15
533,012.62 231,395.02
| Losses on disposal of fixed assets (gains are indicated by “-”) |
| Losses on changes in fair values (gains are indicated by “-”) |
-10,062,500.00
| Financial expenses (income is indicated by “-”) | 10,538,601.11 | 3,338,040.63 |
| Investment losses (income is indicated by “-”) | 25,806,969.54 | 2,806,106.20 |
| Decrease in deferred tax assets (increase is indicated by “-”) |
-1,848,809.41 10,312,245.28
544,300.33
| Increase in deferred tax liabilities (decrease is indicated by “-”) | ||
| Decrease in inventories (increase is indicated by “-”) | -33,345,046.45 | 104,726,621.15 |
| Decrease in receivables from operating activities (increase is indicated by “-”) | -221,702,868.68 |
18,233,904.75
| Increase in payables from operating activities (decrease is indicated by “-”) | 26,204,459.37 |
-200,944,159.73
| Others | 7,986,451.06 | 25,090,249.13 |
| Net cash flow from operating activities | -79,146,670.23 | 114,738,832.13 |
| 2. Significant investing and financing activities that do not involve cash receipts and payments: |
| Conversion of debt into capital | ||
| Convertible corporate bonds due within 1 year | ||
| Fixed assets acquired under finance leases | ||
| 3. Net changes in cash and cash equivalents: | ||
| Closing balance of cash | 1,121,669,333.29 | 1,228,232,134.57 |
| Less: Opening balance of cash | 1,297,848,895.75 | 1,254,582,403.12 |
| Add: Closing balance of cash equivalents | ||
| Less: Opening balance of cash equivalents | ||
| Net increase in cash and cash equivalents | -176,179,562.46 | -26,350,268.55 |
(2) Net cash paid to acquire subsidiaries for the current period
□ Applicable√ N/A
(3) Net cash receipts from disposal of subsidiaries for the current period
□ Applicable√ N/A
(4) Composition of cash and cash equivalents
√ Applicable□ N/A
In RMB
| Item | Closing balance | Opening balance |
| I. Cash | 1,121,669,333.29 | 1,297,848,895.75 |
| Including: Cash on hand | 5,769.27 | 5,751.15 |
| Bank deposits that can be paid at any time |
1,114,961,262.44 1,289,231,268.27
6,702,301.58 8,611,876.33
| Other monetary funds that can be paid at any time |
| Deposits in the central bank that can be used for payments |
| Deposits made with other banks |
| Placements with banks | ||
| II. Cash equivalents | ||
| Including: Investments in debt securities due within three months |
1,121,669,333.29 1,297,848,895.75
| III. Closing balance of cash and cash equivalents |
| Including: Restricted cash and cash |
equivalents of the parent company or
21,093,827.78 178,753,477.66
(5) Items subject to restriction in use but still presented as cash and cash equivalents
√ Applicable□ N/A
In RMBItem
subsidiaries within the Group
Amount for the current
period
| Amount for the current period | Reason |
Offering proceeds 21,093,827.78
| In a dedicated account for special purposes | ||
| Total | 21,093,827.78 | - |
(6) Monetary funds not classified as cash and cash equivalents
√ Applicable□ N/A
In RMBItem
| Amount for the current period | Amount for the prior period |
ReasonBank deposits 81,733,534.26 40,000,005.49
| Term deposits and interests provided | ||
| Other monetary funds |
18,679,342.40 10,961,787.42 Security deposits
| Bank deposits | 112,745,931.53 | 0 | Restricted for use |
| Total | 213,158,808.19 | 50,961,792.91 | - |
Other information:
□ Applicable√ N/A
80. Notes to items in the statement of changes in owners’ equity
Describe matters such as the names and the adjusted amounts of the items included in “others” in respectof adjustments to the closing balances of the prior year:
□ Applicable√ N/A
81. Foreign currency monetary items
(1).
Foreign currency monetary items
√ Applicable□ N/A
In RMB
Item
Exchange rate
| Closing balance of foreign currency | Closing balance of RMB equivalent | ||
| Monetary funds | 169,029,876.34 | ||
| Including: USD | 23,073,053.59 | 7.1268 | 164,437,038.33 |
| EUR | 418,757.84 | 7.6617 | 3,208,396.94 |
| HKD | 793,026.97 | 0.91268 | 723,779.85 |
| GBP | 564.26 | 9.0430 | 5,102.60 |
| VND | 250,793,845.00 | 0.000286 | 71,727.04 |
| AUD | 11,830.37 | 4.7650 | 56,371.71 |
| CAD | 5,400.58 | 5.2274 | 28,230.99 |
| JPY | 11,158,945.00 | 0.044738 | 499,228.88 |
| Accounts receivable | 27,485,436.99 | ||
| Including: USD | 3,816,853.86 | 7.1268 | 27,201,954.09 |
| EUR | 37,000.00 | 7.6617 | 283,482.90 |
| HKD | |||
| Accounts payable | 75,585,891.73 | ||
| Including: USD | 10,645,822.94 | 7.1268 | 75,870,650.93 |
| JPY | 1,600,000.00 | 0.044738 | 71,580.80 |
Other information:
None
(2). Description of overseas operating entities, including significant overseas operating entities, of
which the major operation place, functional currency and choosing basis as well as the reasonfor change of functional currency should be disclosed
√ Applicable□ N/A
Item
| Major overseas operation place | Functional currency | Basis of choice |
Appotronics Hong Kong Limited Hong Kong USD
Appotronics USA, Inc. USA USD
| Common currency |
| Local |
currency
Cayman Islands USD
| JoveAI Limited | Common |
currencyJoveAI Innovation, Inc. USA USD
currencyFormovie Limited Hong Kong USD
| Local |
| Common currency |
JoveAI Asia Company Limited Vietnam VND
currency
| Local | ||
| Hongkong Orange Juice Energy |
Technology Co., Limited
Hong Kong USD
currencyWemax Inc. USA USD
| Common |
| Local |
currencyAppotronics International Limited Hong Kong USD
currencyAppotronics International 1 Limited Hong Kong USD
| Common |
| Common |
currency
Appotronics International 2 Limited Hong Kong USD
currency
| Common | ||
| Appotronics Hong Kong Holding Limited |
Hong Kong USD
Appotronics Japan Co., Ltd. Japan USD
| Common currency |
| Common |
currency
KONG) Limited
Hong Kong USD
Commoncurrency
82. Leases
(1) As a lessee
√ Applicable□ N/A
Expenses relating to variable lease payments are not included in the measurement of lease liabilities
□ Applicable√ N/A
Simplified handling of lease expenses for short-term leases and low-value asset leases
√ Applicable□ N/A
In RMB
Appotronics Technology (HONG
Item
| Item | Current period | Prior period |
| Expenses related to short-term leases |
1,502,491.09 1,595,808.62
Sale and leaseback transactions and determination basis
□ Applicable√ N/A
The total cash outflow related to the lease is RMB 18,501,219.36.
(2) As a lessor
Operating lease as a lessor
√ Applicable□ N/A
In RMBItem Lease incomes
variable lease payments not
| recognized as lease payments | ||
| Projection services | 162,110,282.37 | 157,844,227.93 |
| Total | 162,110,282.37 | 157,844,227.93 |
Finance lease as a lessor
□ Applicable√ N/A
Reconciliation of undiscounted lease receipts to net investment
□ Applicable√ N/A
Undiscounted lease receipts for the next five years
√ Applicable□ N/A
In RMB
Item
| Yearly undiscounted lease receipts | ||
| Closing balance | Opening balance | |
| Year 1 | 8,317,872.00 | 5,939,650.00 |
| Year 2 | ||
| Year 3 | ||
| Year 4 | ||
| Year 5 | ||
| Total undiscounted lease receipts for the next five years | ||
(3) Sales profit and loss from finance leases recognized as a manufacturer or distributor
□ Applicable√ N/A
Other informationNone
83. Data resources
□ Applicable√ N/A
84. Others
□ Applicable√ N/A
VIII. Research and development expenses
(1).Presentation by the nature of expenses
√ Applicable□ N/A
In RMB
| Item | During the reporting period | Prior period |
| Employee benefits | 77,178,286.66 | 86,643,213.03 |
| Material consumption expenses | 9,883,197.10 | 11,968,242.66 |
| Depreciation and amortization expenses | 8,922,669.56 | 7,408,217.43 |
| Testing expenses | 3,484,793.48 | 2,233,677.17 |
| Service fees | 2,959,461.32 | 6,014,448.00 |
| Rent expense | 2,194,206.38 | 2,027,319.05 |
| Patent fees | 3,277,677.31 | 1,909,173.76 |
| Other expenses | 3,718,495.39 | 8,201,851.02 |
| Total | 111,618,787.20 | 126,406,142.12 |
| Including: Expensed R&D expenditures | 111,618,787.20 | 126,406,142.12 |
| Capitalized R&D expenditures |
Other information:
None
(2).R&D expenditures meeting the capitalization conditions
□ Applicable√ N/A
Significant capitalized R&D projects
□ Applicable√ N/A
Provision for impairment of development expenditures
□ Applicable√ N/A
Other informationNone
(3).Significant outsourced ongoing R&D projects
□ Applicable√ N/A
IX. Changes in the scope of consolidation
1. Business combination not involving enterprises under common control
□ Applicable√ N/A
2. Business combination involving entities under common control
□ Applicable√ N/A
3. Counter purchase
□ Applicable√ N/A
4. Disposal of subsidiaries
Transactions or events in which the Company loses control over subsidiaries
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
Whether there are step-by-step disposal of subsidiaries and loss of control over the subsidiaries during the period
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
5. Changes in scope of consolidation for other reasons
Description of changes in the scope of consolidation for other reasons (e.g., new subsidiary establishment, subsidiary liquidation, etc.) and the relevant information:
√ Applicable□ N/A
| Subsidiary name | Description of change |
| Wemax LLC | Deregistration |
| Formovie Technology Inc. | Deregistration |
| Appotronics International 1 Limited | Newly established |
| Appotronics International 2 Limited | Newly established |
| Appotronics Hong Kong Holding Limited | Newly established |
| Appotronics Japan Co., Ltd. | Newly established |
| Appotronics Technology (HONG KONG) Limited | Newly established |
| Shenzhen Muhe Information Technology Co., Ltd. | Newly established |
| Shenzhen Xingjin Information Technology Co., Ltd. | Newly established |
6. Others
□ Applicable√ N/A
X. Equity in other entities
1. Equity in subsidiaries
(1). Composition of enterprise group
√ Applicable□ N/A
In RMB 0’000Subsidiary
Name
operatio
| n place |
Registeredcapital
Registration place
Business
nature
Acquisitionmethod
| Shareholding ratio (%) | |
| Direct | Indirect |
ShenzhenAppotronicsLaser DisplayTechnologyCo., Ltd.
Shenzhen
CNY3,000.00
Shenzhen
R&D andsales of laserdisplayproducts
100.00
combinationinvolvingenterprisesundercommon
| control | ||
| Appotronics |
Technology(Changzhou)Co., Ltd.Changzho
u
CNY2,000.00
Changzhou
research anddevelopmentof projectionequipment,screen andelectronic
| computer |
100.00
Establishment
AppotronicsSoftwareTechnologyCo., Ltd.
Shenzhen
CNY1,000.00
Shenzhen
| Shenzhen | Technology |
developmentand sales ofcomputersoftware and
100.00
Establishment
ShenzhenAppotronicsDisplay
| hardware | ||
| Device Co., |
Ltd.
Shenzhen CNY 300.00 Shenzhen
development,sales, andtechnicalservices fordisplayproducts;Engaged inimport andexport
| business |
100.00
Establishment
AppotronicsXiaomingTechnologyCo., Ltd.
Shenzhen CNY 200.00 Shenzhen
| Shenzhen | Development, |
consultationand transferof laserdisplay
100.00
Establishment
| technology | ||
| Shenzhen |
AppotronicsHome LineTechnologyCo., Ltd.
Shenzhen CNY 100.00 Shenzhen
developmentrelated tosemiconductoroptoelectronic
| products |
100.00
Establishment
AppotronicsLaserTechnology
| Co., Ltd. |
Shenzhen CNY 100.00 Shenzhen
developmentforsemiconducto
| r |
100.00
Establishment
| optoelectronic devices | ||
| Tianjin |
Bonian FilmPartnership(LP)
Tianjin CNY 824.70 Tianjin
No specificbusinessconducted
99.00 1.00
combinationnotinvolvingenterprisesundercommon
| control | ||
| Beijing |
OrientAppotronicsTechnologyCo., Ltd.
Beijing
CNY1,000.00
Beijing
promotion;computersystems,applicationsoftware
| services |
59.00
Establishment
Appotronics(Xiamen)Technology
| Co., Ltd. |
Shenzhen
CNY1,000.00
Xiamen
Informationtechnologyconsultingservices
51.00
Establishment
(Chongqing)InnovativeTechnology
| Co., Ltd. |
Chongqin
g
CNY7,017.54
Chongqing
Technologyand softwaredevelopment
39.19
Establishment
(Beijing)Technology
| Co., Ltd. |
Beijing
CNY5,000.00
Beijing
Technologyand softwaredevelopment
39.19
Establishment
GuangboEcommerce
| Co., Ltd. |
Chongqin
g
CNY 1.00 Chongqing
No specificbusinessconducted
39.19
Establishment
EweiEcommerce
| Co., Ltd. |
Chongqin
g
CNY 1.00 Chongqing
No specificbusinessconducted
39.19
Establishment
Orange JuiceEnergyTechnology
| Co., Ltd. |
Shenzhen CNY 500.00 Shenzhen
Technologyand softwaredevelopment
39.19
Establishment
Orange JuiceEnergyTechnology
| Co., Limited |
HongKong
HKD 1.00 Hong Kong
Engaged inimport andexportbusiness
39.19
Establishment
USA USD 2.00 USA
| Wemax Inc. | Engaged in |
import andexport
39.19
Establishment
| business | ||
| Shenzhen |
WeiwoqiTrading Co.,Ltd.
Chongqin
g
CNY 1.00 Shenzhen
No specificbusinessconducted
39.19
combinationnotinvolvingenterprises
| under |
| common control | ||
| Yaoyouguang |
(Chongqing)Technology
Chongqin
g
CNY1,000.0
Chongqing
No specificbusinessconducted
39.19
Establishment
| Co., Ltd. |
| Formovie |
Limited
HongKong
HKD 1.00 Hong Kong
business
| conducted |
39.19
Establishment
Laser CinemaTechnology(Beijing) Co.,Ltd.Beijing
CNY10,000.00
Beijing
| CINEAPPO | Research and |
development,production,technicalservices, salesand lease oflaser cinemaprojection
24.84 42.96
Businesscombinationinvolvingenterprisesundercommoncontrol
| equipment | ||
| Appotronics |
Hong KongLimited
HongKong
USD4,320.00
Hong Kong
research, anddevelopmentofsemiconductoroptoelectronicproducts,sales andconsulting,investmentand videocontent value-added
| services |
100.00
Establishment
USA, Inc.
USA 0.00 USA
| Appotronics | R&D, |
manufactureand sales ofsemiconductoroptoelectronic
100.00
| products | Business |
combinationinvolvingenterprisesundercommon
| control | ||
| JoveAI |
Limited
CaymanIslands
USD 0.14
CaymanIslands
business
| conducted |
74.37
Establishment
Innovation,Inc.
USA USD 0.0001 USA
| JoveAI | R&D of laser |
displaysoftware
74.37
Establishment
| system | ||
| JoveAI Asia |
CompanyLimited
Vietnam
VND232,300.00
Vietnam
research anddevelopmentof projectionequipment,screen andelectronic
| computer |
74.37
Establishment
International
| Limited |
HongKong
USD 1.00 Hong Kong
business
| conducted |
100.00
Establishment
IntelligentManufacturing (Shenzhen)Co., Ltd.Shenzhen
CNY5,000.00
Shenzhen
| Appotronics | Semiconduct |
orphotoelectricproduction,research,development,sales, andtechnical
100.00
Establishment
| support | ||
| Shenzhen |
QianhaiTaishiInvestmentPartnership(LP)
Shenzhen
CNY1,000.00
Shenzhen
No specificbusinessconducted
70.00 30.00
combinationnotinvolvingenterprisesundercommon
| control | ||
| Appotronics |
International1 Limited
HongKong
USD 0.0001 Hong Kong
research, anddevelopmentofsemiconductoroptoelectronicproducts,sales andconsulting,investmentand videovalue-added
| services |
100.00
Establishment
International2 Limited
HongKong
USD 0.0001 Hong Kong
| Appotronics | Production, |
research, anddevelopmentofsemiconductoroptoelectronicproducts,sales andconsulting,investmentand videovalue-added
100.00
Establishment
| services | ||
| Appotronics |
Hong KongHolding
HongKong
HKD 1.00 Hong Kong
No specificbusinessconducted
100.00
Establishment
| Limited |
| Appotronics |
Japan Co.,Ltd.
Japan JPY 1.00 Japan
research,development,sales,consulting,andinvestment oflaser displayproducts andprojection
| products, and |
100.00
Establishment
added
| services | ||
| Appotronics |
Technology(HONGKONG)Limited
HongKong
HKD 1.00 Hong Kong
development,sales,investment,andconsulting oflaser displayandprojectionproducts andautomotiveoptics
| products |
100.00
Establishment
MuheInformationTechnology
| Co., Ltd. |
Shenzhen CNY 100.00 Shenzhen
No specificbusinessconducted
100.00
Establishment
XingjinInformationTechnology
| Co., Ltd. |
Shenzhen CNY 50.00 Shenzhen
No specificbusinessconducted
100.00
Establishment
Description of the difference between the proportion of shareholding and the proportion of voting rightsin a subsidiary:
NoneBasis for holding half of the voting rights or below but still controlling the investee, and holding over halfvoting rights but having no control over the investee:
Fengmi (Beijing) Technology Co., Ltd., Formovie Limited, Chongqing Ewei Ecommerce Co., Ltd.,Chongqing Guangbo Ecommerce Co., Ltd., and Yaoyouguang (Chongqing) Technology Co., Ltd. arewholly-owned subsidiaries of Formovie (Chongqing) Innovative Technology Co., Ltd.; Hongkong OrangeJuice Energy Technology Co., Limited, Wemax Inc., and Weiwoqi Trading Co., Ltd. are wholly-ownedsubsidiaries of Shenzhen Orange Juice Energy Technology Co., Ltd.; Shenzhen Orange Juice EnergyTechnology Co., Ltd. is a wholly-owned subsidiary of Formovie (Chongqing) Innovative Technology Co.,Ltd.The Company and Shenzhen Fengye Investment Consulting Limited Partnership (Limited Partnership), aparty acting in concert with the Company, hold a total of 53.6250% voting rights in Formovie (Chongqing)Innovative Technology Co., Ltd., for which the voting rights are exercised according to the opinions ofthe Company. Since the voting rights are sufficient to exercise significant influence on the resolution ofthe general meeting of Formovie (Chongqing) Innovative Technology Co., Ltd., the Company becomesthe controlling shareholder of Formovie (Chongqing) Innovative Technology Co., Ltd.Basis for controls over significant structured entities included in consolidation scope:
NoneBasis to determine the company acts as the agent or the principal:
NoneOther informationNone
(2). Significant non-wholly subsidiaries
√ Applicable□ N/A
In RMB
Subsidiary name
Minorityshareholdingsratio (%)
Profit or lossattributable to
minority
shareholdersfor the currentperiod
declared fordistribution to
minorityshareholders in
the current
| period |
Closing balanceof minority
interests
Innovative Technology
| Co., Ltd. |
60.81 -29,485,389.55 - -190,512,478.97
Cinema Technology
| (Beijing) Co., Ltd. |
32.20 16,709,116.30 10,626,000.00 168,307,485.64
Description of the difference between the proportion of shareholding by minority shareholders and theirproportion of voting rights in a subsidiary:
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
(3). Significant financial information of significant non-wholly subsidiaries
√ Applicable□ N/A
In RMBSubsidiary name
| Closing balance | Opening balance |
Currentassets
current
| assets |
Totalassets
Currentliabilities
current
| liabilities |
Totalliabilities
Current
assets
current
| assets |
Totalassets
Currentliabilities
current
| liabilities |
Totalliabilities
(Chongqing)InnovativeTechnolog
| y Co., Ltd. |
381,814,2
12.22
57,126,19
2.63
438,940,4
04.85
657,832,056
.61
94,399,71
3.09
752,231,769
.70
457,400,671
.99
57,826,13
0.91
515,226,802
.90
616,030,713
.80
165,773,9
38.04
781,804,65
1.84
O LaserCinemaTechnology(Beijing)
| Co., Ltd. |
338,786,6
06.55
382,686,7
42.58
721,473,3
49.13
185,468,213
.19
13,311,08
1.16
198,779,294
.35
344,639,969
.04458,251,1
14.50
802,891,083
.54
284,664,831
.13
13,916,84
9.30
298,581,68
0.43
Subsidiary name
| During the reporting period | Prior period |
Operatingincome
Net profit
Totalcomprehensive
income
fromoperating
| activities |
Operating
income
Net profit
Totalcomprehensive
income
fromoperating
| activities | ||
| Formovie |
(Chongqing)InnovativeTechnology Co.,
238,792,797.72
-48,526,218.42
-48,858,358.67 23,707,356.45 376,001,807.21
-79,216,813.38
-81,240,100.67 -53,694,813.30
CinemaTechnology(Beijing) Co., Ltd.
242,414,426.50 51,891,665.53 51,891,665.53 80,772,259.26 241,876,410.66 47,164,577.56 47,164,577.56 119,896,656.27Other informationNone
(4). Significant limitations on the use of the group assets and payment of the group debts:
□ Applicable√ N/A
(5). Financial or other support provided to structured entities included in consolidated financial
statements:
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
2. Changes of shares of owners’ equity in subsidiaries but continue to remain in control over
transactions of subsidiaries
√ Applicable□ N/A
(1). Description of changes in the share in the owner’s equity of subsidiaries
√ Applicable□ N/A
During the reporting period, Formovie (Chongqing) Innovative Technology Co., Ltd. accepted the15% minority interests in Shenzhen Orange Juice Energy Technology Co., Ltd. at the price of RMB 1, sothat Shenzhen Orange Juice became a wholly-owned subsidiary of Chongqing Formoive, and the equityinterests indirectly held by Appotronics in Shenzhen Orange Juice and its subsidiaries increased from
33.31% to 39.19%.
During the reporting period, the convertible corporate bonds issued by the Company to JoveAI Limited,totaling USD 2,387,397.26 together with the interests thereon, were converted into shares, so that theequity interests held by the Company in JoveAI Limited increased from 64.29% to 74.37%.
(2). Effect of the transaction on the minority interests and the equity attributable to owners of the
parent company
√ Applicable□ N/A
In RMB
JoveAI Limited
| Shenzhen Orange |
Juice Energy
| Technology Co., Ltd. | ||
| Acquisition cost/disposal consideration | ||
| -- Cash | 1.00 | |
| -- Fair value of non-cash assets | 16,846,944.23 | |
| Total acquisition cost/disposal consideration | 16,846,944.23 | 1.00 |
| Less: Share in net assets of subsidiaries |
calculated based on the acquired/disposed
| shareholding ratio | 10,949,896.96 | -3,370,715.70 |
| Difference | 5,897,047.27 | 3,370,716.70 |
| Including: Adjustment to capital reserves | 5,897,047.27 | 3,370,716.70 |
| Adjustment to surplus reserves | ||
| Adjustment to retained profits |
Other information
□ Applicable√ N/A
3. Equity in joint ventures or associates
√ Applicable□ N/A
(1). Significant associates or joint ventures
□ Applicable√ N/A
(2). Major financial information of significant joint ventures
□ Applicable√ N/A
(3). Major financial information of significant associates
□ Applicable√ N/A
(4). Summary financial information of insignificant joint ventures and associates
√ Applicable□ N/A
In RMB
| Closing balance/Amount for the current period | Opening balance/Amount for the prior period | |
| Joint ventures: | ||
| Total book value of investments | ||
| Total amounts calculated based on shareholding proportions | ||
| -- Net profit | ||
| -- Other comprehensive income | ||
| -- Total comprehensive income | ||
| Associates: | ||
| Total book value of investments | ||
6,183,769.99 5,836,162.11
| Total amounts calculated based on shareholding proportions | ||
| -- Net profit | -436,832.42 | |
| -- Other comprehensive income | ||
-436,832.42Other informationNone
(5). Descriptions of significant limitations over the ability of joint ventures or associates to
transfer funds to the Company
□ Applicable√ N/A
(6). Excessive loss of joint venture or associates
□ Applicable√ N/A
(7). Unrecognized commitment relating to investments in joint ventures
□ Applicable√ N/A
(8). Contingent liabilities relating to investments in joint ventures or associates
□ Applicable√ N/A
4. Significant joint operations
□ Applicable√ N/A
5. Interests in structured entities that are not included in consolidated financial statements
Description of structured entities that are not included in consolidated financial statements:
□ Applicable√ N/A
6. Others
□ Applicable√ N/A
XI. Government grants
1. Government grants recognized at the amount receivable at the end of the period
□ Applicable√ N/A
Reason for failing to receive the government grants in the expected amount at the expected time point
□ Applicable√ N/A
2. Liability items related to government grants
□ Applicable√ N/A
3. Government grants included in profit or loss for the period
√ Applicable□ N/A
In RMBType
During the
Prior period
| reporting period | |
| Amount of government grants recognized as other incomes |
14,929,412.51 23,608,983.31
30,000.00 9,000,000.00
| Amount of government grants recognized as non-operating incomes |
| Effect of interest subsidies on the total profit |
300,600.00 6,084,300.00
| Total | 15,260,012.51 | 38,693,283.31 |
Other information:
（1） New government grants in the current period
| Item | Increased government grants for the current period |
| Amount of government grants related to income | 13,531,837.14 |
| Including: Recognized as deferred incomes | 333,700.00 |
| Recognized as other incomes | 13,168,137.14 |
| Recognized as non-operating incomes | 30,000.00 |
| Interest subsidies | 300,600.00 |
| Including: Offset against financial expenses | 300,600.00 |
| Total | 13,832,437.14 |
XII. Risks associated with financial instruments
1. Risks associated with financial instruments
√ Applicable□ N/A
The Company’s risk management objectives are to achieve a proper balance between risks and yield,minimize the adverse impacts of risks on the Company’s operation performance, and maximize thebenefits to the shareholders and other stakeholders. Based on these risk management objectives, theCompany’s basic risk management strategy is to identify and analyze its exposure to various risks,establish an appropriate minimum tolerance to risk, implement risk management, and monitor regularlyand effectively exposures to ensure the risks are monitored at a certain level.
The Company is exposed to various risks associated with financial instruments in its daily routines,primarily including credit risk, liquidity risk and market risk. The management has reviewed and approvedpolicies to manage these risks, summarized as below.
(I) Credit risk
Credit risk refers to the risk that a party of the financial instrument will default on its obligationsresulting in financial loss to the counter-party.
1. Management of credit risk
(1) Evaluation of credit risk
The Company assesses at each balance sheet date whether the credit risk of the underlying financialinstruments has increased significantly since initial recognition. In determining whether the credit risk hasincreased significantly since initial recognition, the Company considers reasonable and supportableinformation that is available without undue additional cost or effort, including quantitative and qualitativeanalysis based on historical data, ranking of external credit risks and forward-looking information. TheCompany compares the risk of a default occurring on a financial instrument as at the balance sheet datewith the risk of a default occurring on the financial instrument as at the date of initial recognition basedon individual financial instruments or a group of financial instruments with similar credit riskcharacteristic, to determine the change of the risk of a default occurring on a financial instrument over theexpected life.
The Company considers the credit risk of financial instruments has increased significantly when oneor more of the following quantitative and qualitative criteria are met:
1) The quantitative criterion primarily refers to a certain percentage of increase in the probability of
default over the remaining life of the financial instruments as of the balance sheet date when comparedwith that at initial recognition of the financial instruments;
2) The qualitative criterion includes, inter alia, adverse material changes in business or financial
conditions that are expected to cause a significant decrease in the debtor’s ability to meet its debtobligations, and an actual or expected significant adverse change in the technological, market, economic,or legal environment of the debtor that results in a significant decrease in the debtor’s ability to meet itsdebt obligations.
(2) Definition of defaulted or credit-impaired assets
A financial asset is defined as defaulted when the financial instrument meets one or more conditionsstated as below, and the criterion of defining defaulted asset is consistent with that of defining credit-impaired asset:
1) significant financial difficulty of the debtor;
2) a breach of contract terms with binding force by the debtor;
3) it is becoming probable that the debtor will enter bankruptcy or other financial reorganization;
4) the creditor of the debtor, for economic or contractual reasons relating to the debtor’s financial
difficulty, has granted to the debtor a concession that the creditor would not otherwise consider.
. Measurement of ECL
Key parameters to measure ECL include the probability of default, loss given default and theexposure at default. The Company established models of the probability of default, loss given default andthe exposure at default on the basis of qualitative analysis of historical statistical data (such as counter-party ranking, guarantee methods, collateral category, and repayment way) and forward-lookinginformation.
. Refer to VII.4, VII.5, VII.6, VII.7, VII.9, and VII.16 of Section X for details of the reconciliation
of the opening balance and the closing balance of provision for impairment of financial instruments.
4. Credit risk exposure and credit risk concentration
The Company’s credit risk is primarily from monetary funds and receivables. In order to control therisks associated with aforementioned items, the Company has taken the following measures.
(1) Monetary funds
The credit risk of the Company is limited because the Company has deposited bank deposits andother monetary funds in banks with high credit ratings.
(2) Receivables and contract assets
The Company regularly evaluates the creditworthiness of its customers with deals on credit, andselects to deal with approved and creditworthy customers subject to the results of the credit assessment bymonitoring the balance of its receivables, so as to ensure that the Company is not exposed to significantrisk of bad debt.
No collateral is required since the Company only deals with third parties that are approved andcreditworthy. The concentrated credit risks are managed by customers. As of June 30, 2024, the Companyis exposed to a certain concentration of credit risks, as the Company’s accounts receivable and contractassets from top 5 customers have accounted for 70.16% of the total balance of accounts receivable(December 31, 2023: 59.01%). The Company held no collateral or other credit ranking measures for thebalance of accounts receivable and contract assets.
The maximum exposure to the Company is the book value of each financial asset in the balance sheet.
(II) Liquidity risk
Liquidity risk refers to the risk that the Company is in shortage of funds to perform obligations thatare settled by delivering cash or another financial asset. Liquidity risk may arise from an inability to sella financial asset at fair value as soon as possible, a counter-party’s inability to pay its contractual liabilities,the accelerated maturity of liabilities, or an inability to generate expected cash flows.
In order to control this risk, the Company balances the continuity and flexibility of financing by usingvarious financing measures such as notes settlement and bank loans comprehensively and adopting bothlong-term and short-term financing methods to optimize the financing structure. The Company hasreceived credit facilities from a number of commercial banks to satisfy its working capital requirementsand capital expenditures.Financial liabilities classified by remaining maturity dates:
Item
Book value
| Closing balance | ||
| Undiscounted | ||
contract amount
Within 1 year 1-3 years Over 3 years
| Bank borrowings |
| 678,975,017.50 | 714,108,213.56 | 383,684,773.71 | 243,076,199.41 | 87,347,240.44 | |
| Notes payable | 105,114,863.34 | 105,114,863.34 | 105,114,863.34 | ||
| Accounts payable |
| 403,638,748.50 | 403,638,748.50 | 403,638,748.50 | |||
| Other payables |
| 90,355,287.99 | 90,355,287.99 | 90,355,287.99 | |||
| Lease liabilities |
| 29,525,804.15 | 31,176,070.69 | 18,507,908.36 | 12,668,162.33 | ||
| Sub-total | 1,307,609,721.48 | 1,344,393,184.08 | 1,001,301,581.90 | 255,744,361.74 | 87,347,240.44 |
(Continued)
| Item | Closing balance of the prior year | ||
| Book value | Undiscounted | ||
contract amount
| Within 1 year | 1-3 years | Over 3 years | |||
| Bank borrowings | 692,862,919.06 | 735,334,807.65 | 343,828,440.51 | 309,926,656.55 | 81,579,710.59 |
| Notes payable |
| 76,001,079.07 | 76,001,079.07 | 76,001,079.07 | |||
| Accounts payable |
| 247,318,466.10 | 247,318,466.10 | 247,318,466.10 | |||
| Other payables |
| 54,142,509.17 | 54,142,509.17 | 54,142,509.17 | |||
| Lease liabilities | 42,120,349.54 | 44,407,139.93 | 27,921,961.12 | 15,610,193.95 | 874,984.86 |
| Sub-total | 1,112,445,322.94 | 1,157,204,001.92 | 749,212,455.97 | 325,536,850.50 | 82,454,695.45 |
(III) Market risk
Market risk refers to the risk that the fair value or future cash flows of a financial instrument willfluctuate because of changes in market prices. Market risk mainly includes interest rate risk and currencyrisk.
1. Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument willfluctuate because of changes in market interest rates. The Company is exposed to the risk of fair valueinterest rate due to financial instruments with a fixed interest rate and to the risk of cash value interest ratedue to financial instruments with a floating interest rate. The Company determines the proportion betweenthe fixed-rate financial instruments and the floating-rate financial instruments based on market conditions,and maintains appropriate portfolios of financial instruments through regular review and monitoring. Thecash flow interest rate risk exposed to the Company relates primarily to the Company’s floating-rateinterest-bearing bank borrowings.
As at June 30, 2024, the principal of the Company’s floating-rate interest-bearing bank borrowingsamounted to RMB 528,840,183.03 (December 31, 2023: RMB 464,442,238.44). On the basis of theassumption that the interest rate has changed 50 basic points, where all other variables are held constant,it will bring no material impacts on the Company’s total profits and shareholders’ equity.
2. Currency risk
Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuatebecause of changes in foreign exchange rates. The Company’s exposure to the currency risk is primarilyassociated with the Company’s monetary assets and liabilities dominated in foreign currencies. If themonetary assets and liabilities dominated in foreign currencies are imbalanced in a short time, theCompany will purchase and sell foreign currencies at the market exchange rate to keep the net riskexposure acceptable.
The closing balance of the Company’s monetary assets and liabilities dominated in foreign currenciesare disclosed in VII.81 of Section X in details.
2. Hedge
(1) The Company conducted hedging businesses for risk management
□ Applicable√ N/A
Other information
□ Applicable√ N/A
(2) The Company conducted qualified hedging businesses and adopted hedging accounting
□ Applicable√ N/A
Other information
□ Applicable√ N/A
(3) The Company conducted hedging businesses for risk management which are expected to achieve
the objectives of hedging management but did not adopt hedging accounting
□ Applicable√ N/A
Other information
□ Applicable√ N/A
3. Transfer of financial assets
(1) Types of transfer
□ Applicable√ N/A
(2) Financial assets derecognized due to transfer
□ Applicable√ N/A
(3) Transferred financial assets with continuous participation
□ Applicable√ N/A
Other information
□ Applicable√ N/A
XIII. Disclosure of fair value
1. The closing balance of the fair value of assets and liabilities measured at fair value
√ Applicable□ N/A
In RMBItem
| Closing balance of fair value | ||||
| Level 1 | Level 2 | Level 3 | Total | |
| I. Continuous fair value measurement | ||||
| (I) Held-for-trading financial assets | ||||
473,130,000.00
30,000,000.00
| 503,130,000.00 | ||||
| 1. Financial assets at fair value through profit or loss |
473,130,000.00
30,000,000.00
| 503,130,000.00 | ||||
| (1) Investment in debt instrument |
| (2) Investment in equity instrument |
30,000,000.00
| 30,000,000.00 | ||||
| (3) Derivative financial assets | ||||
| (4) Structural deposits | 473,130,000.00 | 473,130,000.00 | ||
| 2. Designated as financial assets |
at fair value through profit orloss
| (1) Investment in debt instrument | ||||
| (2) Investment in equity instrument | ||||
| (II) Other debt investments | ||||
| (III) Other equity instrument investments |
7,075,419.38
| 7,075,419.38 | ||||
| (IV) Investment properties | ||||
| 1. Land use right for leasing purpose | ||||
| 2. Buildings leased | ||||
| 3. Land use right held for the |
purpose of transfer after value
| appreciation | ||||
| (V) Biological assets | ||||
| 1. Consumable biological assets | ||||
| 2. Productive biological assets | ||||
| (VI) Receivables financing | 65,953,036.07 | 65,953,036.07 | ||
| (VII) Other non-current financial assets | 99,443,720.92 | 99,443,720.92 | ||
| Total assets continuously measured at fair value |
572,573,720.92
103,028,455.45
| 675,602,176.37 | ||||
| (VI) Held-for-trading financial liabilities | ||||
| 1. Financial liabilities at fair value through profit or loss | ||||
| Including: Held-for-trading bonds issued | ||||
| Derivative financial liabilities | ||||
| Others | ||||
| 2. Designated as financial |
liabilities at fair value through
| profit or loss | ||||
| Total liabilities continuously measured at fair value | ||||
| II. Non-continuous fair value measurement | ||||
| (I) Held-for-sale assets | ||||
| Total assets that are not |
continuously measured at fair
| value |
| Total liabilities that are not |
continuously measured at fair
| value |
2. Basis for determining the market price of continuous and non-continuous level 1 fair value
measurement items
□ Applicable√ N/A
3. Valuation techniques and qualitative and quantitative information of key parameters adopted for
continuous and non-continuous level 2 fair value measurement items
√ Applicable□ N/A
Structured deposits are valued using observable returns, with the sum of expected returns andprincipal determined as fair value when the expected yield is observable, and the principal amount as fairvalue in other cases.
Other non-current financial assets are valued by using the market method to measure and determinethe fair value thereof.
4. Valuation techniques and qualitative and quantitative information of key parameters adopted for
continuous and non-continuous level 3 fair value measurement items
√ Applicable□ N/A
The Company uses specific valuation techniques to determine fair value, and important parametersused include the net assets of the investee unit at the end of the period.
5. Reconciliation between opening and closing book values and sensitivity analysis of unobservable
parameters for continuous level 3 fair value measurement items
□ Applicable√ N/A
6. Where transfers among levels occurred in the period, transfer reasons and policies for determining
transfer time point for continuous fair value measurement items
□ Applicable√ N/A
7. Changes in valuation techniques in the period and reasons for changes
□ Applicable√ N/A
8. Fair value of financial assets and financial liabilities not measured at fair value
□ Applicable√ N/A
9. Others
□ Applicable√ N/A
XIV. Related-party relationships and transactions
1. Parent of the Company
√ Applicable□ N/A
In RMB 0’000Parent
company
Registration
place
Business
nature
Registered
capital
theCompany’sshares held by
the parent
| company (%) | Proportion of |
the Company’s
voting rights
held by the
parent
| company (%) | ||
| Shenzhen |
Appotronics
Holdings
Shenzhen
| Limited | R&D and sales |
ofsemiconductor
1,000 17.15 17.15Description of the parent company of the CompanyNoneThe ultimate controlling party of the Company is LI Yi.Other information:
None
2. Subsidiaries of the Company
√ Applicable□ N/A
Please refer to the description in X of Section X for details about the subsidiaries of the Company.
3. Associates and joint ventures of the Company
Refer to the note for details about the significant joint ventures or associates of the Company.
√ Applicable□ N/A
Please refer to the description in X of Section X for the details about the major joint ventures or associatesof the Company.
Details of other joint ventures or associates having related-party transactions and balances with theCompany in the period or prior periods:
√ Applicable□ N/A
| Associates or joint ventures | Relationship with the Company |
| Shenzhen Zhongjian Technology Co., Ltd. | Associate |
Other information
□ Applicable√ N/A
4. Other related parties of the Company
√ Applicable□ N/A
| Name of other related party | Relationship between other related party and the Company |
| Beijing Donview Education Technology Co., Ltd. and its affiliates | Minority shareholders holding more than 10% shares in the subsidiary and their affiliates |
| Shenzhen YLX Technology Development Co., Ltd. |
Controlled by the same de facto controller
| Xiaomi Communications Co., Ltd. and its affiliates | Minority shareholders holding more than 10% shares in the subsidiary and their affiliates |
China Film Equipment Co., Ltd. and its affiliates
| Minority shareholders holding more than 10% shares in the subsidiary and their affiliates | |
| Shenzhen Lighting Institute | Controlled by the same de facto controller |
Other informationNone
5. Related-party transactions
(1). Sales and purchase of goods, rendering and receipt of services
Purchase of goods/receipt of services
√ Applicable□ N/A
In RMBRelated party
Subjectmatter
During the
reporting
period
Transaction
amountsapproved (ifapplicable)
transactionamounts areexceeded (if
| applicable) |
Prior period
CommunicationsCo., Ltd. and its
| affiliates |
Electroniccomponentsand Service
8,477,705.45 20,200,000.00 No 38,793,268.70
Equipment Co., Ltd.
| and its affiliates | Power, water |
cooling and
12,498,748.28 53,500,000.00 No 11,255,989.49
| services | |
| GDC Technology |
Limited (BVI) and
Electroniccomponents
33,628.32
| its affiliates |
Yes 336,283.18
EducationTechnology Co.,
| Ltd. and its affiliates |
Maintenanceservices
4,198.11
TechnologyDevelopment Co.,
| Ltd. |
Electroniccomponentsand Service
1,419,342.26 5,000,000.00 No 908,182.19
| Total | 22,429,424.31 | 78,700,000.00 | 51,297,921.67 |
Sales of goods/rendering of services
√ Applicable□ N/A
In RMBRelated party Subject matter
Prior period
| During the reporting period | ||
| China Film Equipment Co., Ltd. and its affiliates | Laser light source and cinema projection services |
12,145,223.58 11,606,671.69
Laser TV, smart mini projector 81,183,617.04 80,163,085.66
| Xiaomi Communications Co., Ltd. and its affiliates |
| CINIONIC and its affiliates |
Cinema light source 30,228,389.84
Technology Development
| Co., Ltd. |
Electronic components 1,073,781.77 3,685,678.75
Cinema projectors 133,456.88 294,140.46
| GDC Technology Limited (BVI) and its affiliates |
| Beijing Donview Education Technology Co., Ltd. and its affiliates |
Education projector 2,714.15 2,573.26
Service 269,096.64
| Shenzhen Zhongjian Technology Co., Ltd. | |||
| Total | 94,807,890.06 | 125,980,539.66 |
Description of sales and purchase of goods, rendering and receipt of services
□ Applicable√ N/A
(2). Details of trust with related parties/subcontracting and trust management/contract-issuing
Details of trust/contracting where a group entity is the trustor/main contractor:
□ Applicable√ N/A
Description of trust/subcontracting with related parties
□ Applicable√ N/A
Details of trust/contracting where a group entity is the trustor/main contractor :
□ Applicable√ N/A
Description of management/contract-issuing with related parties
□ Applicable√ N/A
(3). Leases with related parties
The Company as the lessor
□ Applicable√ N/A
The Company as the lessee:
√ Applicable□ N/A
In RMB
Name oflessor
Type of
leasedassets
Simplified handlingof rental costs forshort-term leasesand low-value assetleases (if applicable)
payments notincluded in themeasurement oflease liabilities (if
| applicable) |
Paid rent
Assumed interestexpenses of leaseliabilities
Added right-of-use assets
thereporting
| period |
Priorperiod
thereporting
| period |
Priorperiod
During thereportingperiod
Priorperiod
thereporting
| period |
Priorperiod
During thereportingperiod
Priorperiod
FilmEquipmentCo., Ltd.and its
| affiliates |
Propertylease
7,534.43
14,231.64
2,074,212.12 1,540,920.50 58,907.57 58,659.73 4,048,095.62 3,223,361.75
Description of leases with related parties
□ Applicable√ N/A
(4). Guarantees with related parties
The Company as a guarantor
□ Applicable√ N/A
The Company as a guaranteed party
□ Applicable√ N/A
Description of guarantees with related parties
□ Applicable√ N/A
(5). Borrowings/loans with related parties
□ Applicable√ N/A
(6). Assets transfer/debt restructuring with related parties
□ Applicable√ N/A
(7). Compensation for key management personnel
√ Applicable□ N/A
In RMB 0’000
| Item | During the reporting period | Prior period |
| Compensation for key management personnel |
339.31 368.84
(8). Other related-party transactions
□ Applicable√ N/A
6. Unsettled items receivable from or payable to related parties
(1). Amounts due from related parties
√ Applicable□ N/A
In RMBProject Related party
| Closing balance | Opening balance |
Carryingamount
for bad
| debts |
Carrying
amount
Provision for
bad debts
| Accounts receivable | GDC Technology Limited (BVI) and its affiliates |
785,765.33
196,441.33
801,394.38
| 196,250.40 | |||||
| Accounts receivable | WeCast and its affiliates |
16,541,558.24
| 16,541,558.24 | ||||
| Accounts receivable | Xiaomi Communications Co., Ltd. and its affiliates |
40,570,851.87
2,028,542.59
64,902,941.11
| 3,245,147.06 |
Accountsreceivable
Technology Development
| Co., Ltd. | |||||
| Accounts receivable | China Film Equipment Co., Ltd. and its affiliates |
1,286,849.36
71,918.35
3,299,580.10
| 164,979.01 | |||||
| Sub-total | 42,643,466.56 | 2,296,902.27 | 85,545,473.83 | 20,147,934.71 |
Prepayments
| China Film Equipment Co., Ltd. and its affiliates |
2,160,293.74
1,736,886.89
Prepayments
| GDC Technology Limited (BVI) and its affiliates |
43,716.82
| Sub-total | 2,160,293.74 | 1,780,603.71 | |||
| Other receivables | China Film Equipment Co., Ltd. and its affiliates |
191,444.00
9,572.20
171,450.20
| 8,572.51 | |||||
| Other receivables | GDC Technology Limited (BVI) and its affiliates | 14,111,064.00 |
14,023,746.00
| Other receivables | Xiaomi Communications Co., Ltd. and its affiliates |
100,000.00
5,000.00
200,000.00
| 10,000.00 | |||||
| Sub-total | 14,402,508.00 | 14,572.20 | 14,395,196.20 | 18,572.51 |
(2). Amounts due to related parties
√ Applicable□ N/A
In RMB
| Project | Related party | Closing balance |
of carrying
amount
balance of
carrying
| amount | |||
| Accounts payable | Shenzhen YLX Technology Development Co., Ltd. |
787,976.87
390,043.13
| Accounts payable | Xiaomi Communications Co., Ltd. and its affiliates |
4,219,011.41
| 1,286,376.61 | |||
| Accounts payable | China Film Equipment Co., Ltd. and its affiliates |
7,650,779.35
| 9,319,770.17 | |||
| Sub-total | 12,657,767.63 | 10,996,189.91 | |
| Notes payable | China Film Equipment Co., Ltd. and its affiliates | 6,963,823.46 | |
| Sub-total | 6,963,823.46 | ||
| Advance from customers | China Film Equipment Co., Ltd. and its affiliates |
7,085,653.22
| 8,056,313.86 | |||
| Advance from customers | GDC Technology Limited (BVI) and its affiliates |
46,103.49
| Sub-total | 7,131,756.71 | 8,056,313.86 | |
| Contract liabilities | Xiaomi Communications Co., Ltd. and its affiliates | 105,732.29 | |
| Contract liabilities | China Film Equipment Co., Ltd. and its affiliates | 2,610,805.11 | 1,259,149.95 |
| Contract liabilities | Shenzhen Zhongjian Technology Co., Ltd. | 524,900.52 |
763,039.15
| Sub-total | 3,241,437.92 | 2,022,189.10 |
Other payables
50,000.00
| Beijing Donview Education Technology Co., Ltd. and its affiliates |
50,000.00
Other payables
| Xiaomi Communications Co., Ltd. and its affiliates |
117,916.00
| Other payables | GDC Technology Limited (BVI) and its affiliates | 113,195.00 | 221,249.75 |
| Other payables | China Film Equipment Co., Ltd. and its affiliates | 7,200.00 | |
| Sub-total | 281,111.00 | 278,449.75 | |
| Other current liabilities | Xiaomi Communications Co., Ltd. and its affiliates |
13,745.20
115,422.47
| Other current liabilities | China Film Equipment Co., Ltd. and its affiliates | 2,375,914.12 |
323,036.17
| Other current liabilities | Shenzhen Zhongjian Technology Co., Ltd. |
68,237.07
99,195.09
| Sub-total | 2,457,896.39 | 537,653.73 |
(3). Other items
□ Applicable√ N/A
7. Related party commitments
□ Applicable√ N/A
8. Others
□ Applicable√ N/A
XV. Share-based payments
1. Various equity instruments
√ Applicable□ N/A
Quantity unit: shares In RMBCategor
payee
| y of | Granted in the current period | Exercised in the current period | Unlocked in the current period | Expired in the current period | ||||
| Quantity | Amount | Quantity | Amount | Quantity | Amount | Quantity | Amount | |
| Management members | 2,922,290.00 | 46,113,350.89 | 379,500.00 | 7,480,909.50 | ||||
| Management members (Formoive) | 127,980.00 | 1,079,602.40 | ||||||
| Total | 2,922,290.00 | 46,113,350.89 | 507,480.00 | 8,560,511.90 | ||||
Outstanding share options or other equity instruments at the end of the period
√ Applicable□ N/A
Category of payee
| Outstanding share options at the end of the period | Outstanding other equity instruments at the end of the period | |||
| Exercise price range | Remaining contractual period | Exercise price range | Remaining contractual period | |
| Management | RMB 4.3-22.841/share | 6 | ||
-13 months
| Management (Formoive) | RMB 1 |
-3.42/share
| 24 months |
Other informationNone
2. Equity-settled share-based payments
√ Applicable□ N/A
In RMB
| The method of determining the fair value of equity instruments at the grant date | Option pricing model |
| Significant parameters of the fair value of equity instruments at the grant date |
Actual grant amount
| The basis for determining the number of equity instruments expected to be executed |
| Reasons for the significant difference between the |
estimate in the current period and that in the prior
None
| period |
| Amounts of equity-settled share-based payments accumulated in capital reserve |
141,279,069.96
Other information
(1) Equity-settled share-based payments of Chongqing Formovie In RMB
| The method of determining the fair value of equity instruments at the grant date | Evaluation of all shareholder’s equity interests |
| The basis for determining the number of equity instruments expected to be executed |
Actual grant amount
estimate in the current period and that in the prior
| period |
None
19,675,710.70
(2) All restricted shares granted by the Company are Type II restricted shares, while the registered
capital granted by Chongqing Formovie was treated with reference to Type I restricted shares.
3. Cash-settled share-based payments
□ Applicable√ N/A
4. Share-based payment expenses in the current period
√ Applicable□ N/A
In RMB
| Category of payee | Expenses of equity-settled share-based payments | Expenses of cash-settled share-based payments |
| Management | 8,095,829.69 | |
| Total | 8,095,829.69 |
Other informationNone
5. Modification to and termination of share-based payments
□ Applicable√ N/A
6. Others
□ Applicable√ N/A
XVI. Commitments and contingencies
1. Significant commitments
□ Applicable√ N/A
2. Contingencies
(1). Significant contingencies as of the balance sheet date
√ Applicable□ N/A
Pending litigation
1. Civil litigation and arbitration where the Company acted as the plaintiff/claimant
As of December 30, 2024, the important information about civil litigation and arbitration in which theCompany acted as a plaintiff is specifically as follows:
Cause of action
| Case No. | Plaintiff/Claimant |
Defendant/Respondent
| Patents involved | Amount involved | Progress |
01-22-0001-2735
arbitration
| counterclaim of the dispute over |
theimplementationof the settlement
Appotronics
| agreement | Hong Kong |
Limited,AppotronicsCorporationLimited
ZHANG Wanneng, de facto
(Cayman Islands) and GDCTechnology Limited (British
| Virgin Islands), and the |
management team thereof
N/A
Compensation
million
Accepted
2. Civil litigation and arbitration where the Company acted as the defendant/respondent
As of June 30, 2024, the important information about civil litigation and arbitration in which the Companyacted as a defendant is specifically as follows:
of no less thanUSD 40.00
CaseNo.
Cause of action Plaintiff/Claimant
| Case No. | Defendant/Respondent | Patents involved | Amount involved | Progress |
01-22-0001-2735
arbitration
| counterclaim of the dispute over the implementation of the settlement agreement | GDC Technology Limited (Cayman Islands), GDC Technology Limited (British Virgin Islands) |
Appotronics Hong
AppotronicsCorporationLimited
N/A
| Kong Limited, | USD 38.00 |
million
Accepted
HKIAC/A24
which the claimant held
| that the respondent violated the Purchase and Sales Agreement, which resulted in |
Espedeo HoldingsLimited
Appotronics HongKong Limited
N/A
Compensation
million
Accepted
Note: Espedeo Holdings Limited is a wholly-owned subsidiary of GDC BVI.
(2). Description shall also be provided even if the Company has no significant contingencies to be
disclosed:
□ Applicable√ N/A
3. Others
□ Applicable√ N/A
XVII. Events after the balance sheet date
1. Material non-adjusting event
□ Applicable√ N/A
2. Profit distribution
√ Applicable□ N/A
In RMB
economic losses to theclaimant.Proposed distributions of profits ordividends
| Proposed distributions of profits or dividends | Distribute to all shareholders a cash dividend of RMB 0.7 (tax inclusive) for every 10 shares |
| Profits or dividends declared for |
distribution upon discussion and
32,084,193.96
3. Sales return
□ Applicable√ N/A
4. Description of other events after the balance sheet date
□ Applicable√ N/A
XVIII. Other significant events
1. Corrections of prior period errors
(1). Retrospective application
□ Applicable√ N/A
(2). Prospective application
□ Applicable√ N/A
2. Significant debt restructuring
□ Applicable√ N/A
3. Asset swap
(1). Exchange of non-monetary assets
□ Applicable√ N/A
(2). Other asset swap
□ Applicable√ N/A
4. Annuity plan
□ Applicable√ N/A
5. Discontinued operations
□ Applicable√ N/A
6. Segment reporting
(1). Determination basis and accounting policies of reporting segments
□ Applicable√ N/A
(2). Financial information of reporting segments
□ Applicable√ N/A
(3). If the Company has no reporting segments, or cannot disclose the total assets and liabilities of
reporting segments, specify the reasons
□ Applicable√ N/A
(4). Other information
□ Applicable√ N/A
7. Other significant transactions and matters having an impact on the decisions of investors
□ Applicable√ N/A
8. Others
□ Applicable√ N/A
XIX. Notes to key items in the parent company’s financial statements
1. Accounts receivable
(1). Disclosure by aging
√ Applicable□ N/A
In RMBAging
| Closing balance of carrying amount | Opening balance of carrying amount | |
| Within 1 year | ||
| Including: Sub-items within 1 year | ||
| Within 1 year | 421,719,657.47 | 248,513,107.85 |
| Sub-total of items within 1 year | ||
421,719,657.47 248,513,107.85
| 1 to 2 years | 184,279,529.16 | 168,649,179.18 |
| 2 to 3 years | 39,743,065.70 | 40,720,444.20 |
| Over 3 years | 4,084,113.10 | 13,741,038.86 |
| Total | 649,826,365.43 | 471,623,770.09 |
(2). Disclosure by categories of provision for bad debts
√ Applicable□ N/A
In RMB
Category
| Closing balance | Opening balance |
Carrying amount
Bookvalue
Carrying amount
| Provision for bad debts | Provision for bad debts |
BookvalueAmount
Percentag
e (%)
Amount
e ofprovision
| (%) |
Amount
Percentage (%)
Amount
| Percentage |
ofprovision
| (%) | ||
| Provision for bad debts made |
individuall
863,700.00
| y |
0.13
863,700.00
100.00
863,700.00
0.18
863,700.00
100.00
| Provision for bad debts made by group |
648,962,665.4
99.87
15,117,193.7
2.33
633,845,471.7
470,760,070.0
99.82
8,279,833.
1.76
462,480,236.
Total
100.00
| 649,826,365.43 | 15,980,893.72 |
2.46
| 633,845,471.71 | 471,623,770.09 |
100.00
1.94
| 9,143,533.72 | 462,480,236.37 |
Provision for bad debts made individually:
□ Applicable√ N/A
Provision for bad debts made by group:
√ Applicable□ N/A
Item by group:
In RMBName
Accounts receivable
| Closing balance | |||
| Provision for bad debts | Percentage of provision (%) | ||
| Group of aging | 213,615,923.16 | 15,117,193.72 | 7.08 |
| Group of receivables from | |||
related parties in the scope
435,346,742.27
| of consolidation | |||
| Total | 648,962,665.43 | 15,117,193.72 | 2.33 |
Description of provision for bad debts made by group:
□ Applicable√ N/A
Provision for bad debts made in accordance with the general model of ECL
□ Applicable√ N/A
Basis for determination of each stage and percentage of provision for bad debtsRefer to V.11 of Section X for details.Description of significant changes in the balance of accounts receivable with changed provisions for losses inthe current period:
□ Applicable√ N/A
(3). Provision for bad debts
√ Applicable□ N/A
In RMB
Category
Openingbalance
ClosingbalanceProvision
| Changes for the current period | ||
| Recovery | ||
or
| reversal | Write-off |
or
Otherchanges
| cancellation | ||
| Provision |
for baddebts made
863,700.00 863,700.00
| individually |
| Provision |
for baddebts made
8,279,833.72 6,837,360.00 15,117,193.72
| by group | ||||||
| Total | 9,143,533.72 | 6,837,360.00 | 15,980,893.72 |
Including significant amounts recovered or reversed from the current provision for bad debts:
□ Applicable√ N/A
Other informationNone
(4). Accounts receivable actually canceled in the current period
□ Applicable√ N/A
In which significant amounts canceled are described as below:
□ Applicable√ N/A
Description of accounts receivable cancellation
□ Applicable√ N/A
(5). Top five closing balances of accounts receivable and contract assets categorized by debtors
√ Applicable□ N/A
In RMB
Entity
Closingbalance ofaccountsreceivable
Closingbalance
ofcontractassets
Closing balanceof accountsreceivable andcontract assets
the totalclosingbalance of
accountsreceivableand contract
| assets (%) |
Closingbalance ofprovisionfor baddebts
| Top 1 | 300,883,955.42 | 300,883,955.42 | 46.15 | ||
| Top 2 | 155,267,717.51 | 155,267,717.51 | 23.82 | 7,763,385.88 | |
| Top 3 | 71,097,146.80 | 71,097,146.80 | 10.91 | ||
| Top 4 | 26,115,537.28 | 26,115,537.28 | 4.01 | ||
| Top 5 | 18,198,253.58 | 18,198,253.58 | 2.79 | ||
| Total | 571,562,610.59 | 571,562,610.59 | 87.67 | 7,763,385.88 |
Other informationNoneOther information:
□ Applicable√ N/A
2.Other receivablesPresented by item
√ Applicable□ N/A
In RMB
| Item | Closing balance | Opening balance |
| Interest receivable | ||
| Dividend receivable | ||
| Other receivables | 358,976,925.08 | 14,978,163.24 |
| Total | 358,976,925.08 | 14,978,163.24 |
Other information:
□ Applicable√ N/A
Interest receivable
(1). Categories of interest receivable
□ Applicable√ N/A
(2). Significant interests overdue
□ Applicable√ N/A
(3). Disclosure by categories of provision for bad debts
□ Applicable√ N/A
Provision for bad debts made individually:
□ Applicable√ N/A
Explanation about provision for bad debts made individually:
□ Applicable√ N/A
Provision for bad debts made by group:
□ Applicable√ N/A
Provision for bad debts made in accordance with the general model of ECL
□ Applicable√ N/A
(4). Provision for bad debts
□ Applicable√ N/A
Including significant amounts recovered or reversed from the current provision for bad debts:
□ Applicable√ N/A
Other informationNone
(5). Interests receivable actually written off in the current period
□ Applicable√ N/A
In which the write-off of significant interests receivable is described as below:
□ Applicable√ N/A
Description of write-off:
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
Dividends receivable
(6). Dividends receivable
□ Applicable√ N/A
(7). Dividends receivable with significant amounts aged more than 1 year
□ Applicable√ N/A
(8). Disclosure by categories of provision for bad debts
□ Applicable√ N/A
Provision for bad debts made individually:
□ Applicable√ N/A
Explanation about provision for bad debts made individually:
□ Applicable√ N/A
Provision for bad debts made by group:
□ Applicable√ N/A
Provision for bad debts made in accordance with the general model of ECL
□ Applicable√ N/A
(9). Provision for bad debts
□ Applicable√ N/A
Including significant amounts recovered or reversed from the current provision for bad debts:
□ Applicable√ N/A
Other informationNone
(10). Dividend receivable actually written off in the current period
□ Applicable√ N/A
In which the write-off of significant dividend receivable is described as below:
□ Applicable√ N/A
Description of write-off
□ Applicable√ N/A
Other information
□ Applicable√ N/A
Other receivables
(11). Disclosure by aging
√ Applicable□ N/A
In RMBAging
| Closing balance of carrying amount | Opening balance of carrying amount | |
| Within 1 year | ||
| Including: Sub-items within 1 year | ||
| Within 1 year | 353,583,183.32 | 8,993,196.10 |
| Sub-total of items within 1 year | 353,583,183.32 | 8,993,196.10 |
| 1 to 2 years | 502,678.19 | 835,410.95 |
| 2 to 3 years | 80,446.00 | 82,446.00 |
| Over 3 years | 5,404,349.84 | 5,471,349.86 |
| Total | 359,570,657.35 | 15,382,402.91 |
(12). Categories by the nature
√ Applicable□ N/A
In RMB
Nature of receivables
| Closing balance of carrying amount | Opening balance of carrying amount | |
| Deposits/margins/petty cash | 9,079,343.36 | 7,278,349.93 |
| Amounts with related parties in the scope of consolidation |
348,986,724.81 7,347,685.40
| Temporary receivables | 1,504,589.18 | 756,367.58 |
| Compensation receivable | ||
| Total | 359,570,657.35 | 15,382,402.91 |
(13). Provision for bad debts
√ Applicable□ N/A
In RMBProvision for bad debts
| Stage I | Stage II | Stage III |
Total
ECL in thefuture
| 12-month | Lifetime ECL |
(without creditimpairment)
(with creditimpairment)
| Lifetime ECL | ||
| Balance as at January 1, 2024 |
401,109.93 3,129.74 404,239.67
| Balance as at January 1, 2024 in the current period | ||||
| --transferred to Stage II | -16,133.91 | 16,133.91 | ||
| --transferred to Stage III | ||||
| --reversed to Stage II | ||||
| --reversed to Stage I | ||||
| Provision | 128,086.70 | 61,405.90 | 189,492.60 | |
| Reversal | ||||
| Write-off | ||||
| Cancellation | ||||
| Other changes | ||||
| Balance as at June 30, 2024 | 513,062.72 | 80,669.55 | 593,732.27 |
Basis for determination of each stage and percentage of provision for bad debts
The group of deposit and security receivable, group of amounts from transaction with related partiesin the scope of consolidation, and other receivables due within one year in the age group indicate noobvious increase in the credit risk since initial recognition (stage I), 1-2 years in the age group indicateobvious increase in the credit risk since initial recognition but no credit impairment (stage II), and over 2years in the age group indicate credit impairment since initial recognition (stage III).Description of significant changes in the balance of other receivables with changed provisions for losses in thecurrent period:
□ Applicable√ N/A
Basis for recognizing the amount of provision for bad debts and evaluating whether the credit risk offinancial instruments has been increased significantly in the current period:
□ Applicable√ N/A
(14). Provision for bad debts
√ Applicable□ N/A
In RMB
Category
Openingbalance
ClosingbalanceProvision
| Changes for the current period | |||||
| Recovery or reversal | Write off or cancellation | Other changes | |||
| Provision for | |||||
bad debtsmade by
404,239.67 189,492.60 593,732.27
| group | ||||||
| Total | 404,239.67 | 189,492.60 | 593,732.27 |
Including significant amounts recovered or reversed from the current provision for bad debts:
□ Applicable√ N/A
Other informationNone
(15). Other receivables actually canceled in the current period
□ Applicable√ N/A
In which significant amounts written off are described as below:
□ Applicable√ N/A
Description of other receivables cancellation:
□ Applicable√ N/A
(16). Top five closing balances of other receivables categorized by debtors
√ Applicable□ N/A
In RMBEntity
Closingbalance
to thebalance of
otherreceivables
| (%) |
Nature of other
receivables
Aging
Provision
for bad
debtsClosingbalanceTop 1 319,607,854.98 88.89
parties in the scope of
| consolidation |
Within1 year
Top 2 17,002,815.75 4.73
parties in the scope of
| consolidation |
Within1 year
Top 3 5,778,496.36 1.61
parties in the scope of
| consolidation |
Within1 year
Top 4 5,478,833.19 1.52
parties in the scope of
| consolidation |
Within1 year
Top 5 3,574,618.00 0.99
| Deposits/margins/petty cash | Over 3 years |
178,730.90
| Total | 351,442,618.28 | 97.74 | - | - | 178,730.90 |
(17). Presentation in other receivables due to centralized fund management
□ Applicable√ N/A
Other information
□ Applicable√ N/A
3.Long-term equity investments
√ Applicable□ N/A
In RMBItem
| Closing balance | Opening balance | ||
| Carrying amount | Provision for impairment | ||
Book value
| Carrying amount | Provision for impairment |
Book value
171,683,634.68
| Investments in subsidiaries |
12,827,792.79
158,855,841.89
476,309,658.71
12,827,792.79
463,481,865.92
| Investments in |
associates and
6,183,769.99
| joint ventures |
6,183,769.99
5,836,162.11
5,836,162.11
| Total | 177,867,404.67 | 12,827,792.79 | 165,039,611.88 | 482,145,820.82 | 12,827,792.79 | 469,318,028.03 |
(1). Investments in subsidiaries
√ Applicable□ N/A
In RMB
Investee
Openingbalance
Increase Decrease
Closingbalance
Provisionforimpairment
gbalance ofprovision forimpair
| ment | ||
| CINEAPPO Laser |
Cinema Technology
47,170,375.58 211,270.26 47,381,645.84
| (Beijing) Co., Ltd. |
| Shenzhen Appotronics |
Software Technology
1,386,168.36 1,386,168.36
| Co., Ltd. |
| Beijing Orient |
Appotronics
5,900,000.00 5,900,000.00
| Technology Co., Ltd. |
| Shenzhen Appotronics |
Xiaoming Technology
12,000,000.00 12,000,000
12,000,0
00.00
| Co., Ltd. |
| Fengmi (Beijing) Technology Co., Ltd. |
3,325,738.82 3,325,738.82
(Xiamen) Technology
| Co., Ltd. |
5,100,000.00 5,100,000.00
827,792.
Laser Display
| Technology Co., Ltd. |
18,966,857.26 18,966,857.26
305,944,668.85 98,265.05 306,042,933.90
| Appotronics HongKong Limited | ||||||
| JOVE AI Innovation | 800,010.02 | 800,010.02 | ||||
| Appotronics |
Technology
2,000,000.00 2,000,000.00
| (Changzhou) Co., Ltd. |
| Shenzhen Appotronics |
Display Device Co.,
3,000,000.00 3,000,000.00
| Ltd. |
| Tianjin Bonian Film Partnership (LP) |
26,954,120.20 26,954,120.20
Innovative Technology
| Co., Ltd. |
29,947,919.62 29,947,919.62
Taishi Investment
| Partnership (LP) |
13,813,800.00 13,813,800.00
Information Technology
| Co., Ltd. |
1,000,000.0
1,000,000.00
98,265.06 98,265.06
| Appotronics International Limited |
| Appotronics |
Technology (Hong
9,109.50 9,109.50Total476,309,658.71
| Kong) Limited | ||
| 1,416,909.87 |
306,042,933.90 171,683,634.68
(2). Investments in associates and joint ventures
√ Applicable□ N/A
In RMBInvestee
Openingbalanc
e
Closingbalance
Closingbalance ofprovisionforimpairmentAdditi
onalinvestment
Decre
asedinvestment
| Changes for the current period | ||
| Investme | ||
nt profitor lossunderequity
| method | Adjustm |
ent inothercompreh
ensive
Otherequitychange
s
Declared
cashdividend
s orprofits
Provision
forimpairme
nt
Others
| income | |||||||||||
| I. Joint venture | |||||||||||
| Sub-total | |||||||||||
| II. |
Associate
| s | |||||||||||
| Shenzhen |
ZhongjianTechnolo
| gy Co., Ltd. | 5,836, |
162.11
| - |
436,832.
| 784,44 |
0.30
| 6,183,7 |
69.99
| Sub-total | 5,836, |
162.11
| - |
436,832.
| 42 | 784,44 |
0.30
| 6,183,7 |
69.99
Total
| 5,836, |
162.11
| - |
436,832.
| 42 | 784,44 |
0.30
| 6,183,7 |
69.99
(3). Impairment test of long-term equity investments
□ Applicable√ N/A
Other information
□ Applicable√ N/A
The net value of the recoverable amount determining by subtracting disposal expenses from thefair value
□ Applicable√ N/A
The recoverable amount is determined according to the present value of the estimated future cashflows
□ Applicable√ N/A
Reason for the obvious difference between the information above and the information used in theimpairment test in previous years or external information
□ Applicable√ N/A
Reason for the obvious difference between the information used by the Company in the impairmenttest in previous years and the actual conditions of the corresponding year
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
4. Operating income and operating costs
(1). Description of operating income and operating costs
√ Applicable□ N/A
In RMB
Item
| Item | Amount for the current period | Amount for the prior period |
| Income | Cost | Income | Cost | |
| Main business | 710,455,810.59 | 560,232,751.34 | 542,956,800.34 | 368,571,473.83 |
| Other business | ||||
| Total | 710,455,810.59 | 560,232,751.34 | 542,956,800.34 | 368,571,473.83 |
(2). Breakdown of operating income and operating cost
√ Applicable□ N/A
In RMBCategory of contract
| Total | ||
| Operating income | Operating costs | |
| By the type of goods | ||
| Core device business | 406,521,703.07 | 329,804,210.03 |
| Complete projector equipment | 230,905,727.07 | 161,958,120.25 |
| Other products and businesses | 73,028,380.45 | 68,470,421.06 |
| By operating region | ||
| Sales in China | 636,087,447.01 | 514,820,085.88 |
| Sales outside of China | 74,368,363.58 | 45,412,665.46 |
| Total | 710,455,810.59 | 560,232,751.34 |
Other information
□ Applicable√ N/A
(3). Description of performance obligations
□ Applicable√ N/A
(4). Description of allocation to remaining performance obligations
□ Applicable√ N/A
(5). Material contract changes or material adjustments in transaction prices
□ Applicable√ N/A
Other informationNone5.Investment income
√ Applicable□ N/A
In RMBItem
Prior period
| During the reporting period | |
| Gains from long-term equity investment accounted for using the cost method |
8,197,200.00
| 7,452,000.00 | ||
| Long-term equity investment accounted for using the equity method |
-436,832.42
| Investment income from the disposal of long-term equity investments |
12,336,143.05
| Investment income from held-for-trading financial assets during the holding period | ||
| Dividend income from other equity |
instrument investments during the holding
| period | ||
| Interest income from debt investments during the holding period | ||
| Interest income from other debt investments during the holding period | ||
| Investment income from disposal of held-for-trading financial assets | 16,264,140.92 | 5,265,708.55 |
| Investment income from disposal of other equity instrument investments | ||
| Investment income from the disposal of debt investments | ||
| Investment income from the disposal of other debt investments | ||
| Profits from debt restructuring | ||
| Others | -359,837.45 | |
| Total | 36,000,814.10 | 12,717,708.55 |
Other information:
None6.Others
□ Applicable√ N/A
XX. Supplementary information
1. Breakdown of non-recurring profit or loss for the current period
√ Applicable□ N/A
In RMB
| Item | Amount | Description |
| Gain or loss on disposal of non-current assets, including write-off of provision for asset impairment |
-
| 542,907.96 |
| Government grants recognized in profit or loss for the current period (excluding government grants that are closely related to the business of the Company and are provided in accordance with established standards with continuous effects on the profit or loss of the Company according to the provisions of national policies) | 6,613,195.04 | VII.67 of Section X, and VII.74 of Section X |
-financial enterprises and profit or loss
| on the disposal of financial assets and financial liabilities, other than those used in the effective hedging activities related to the normal operating business of the Company |
19,3
| 43,730.90 | VII.68 of Section X, and VII.70 of Section X |
| Income earned from lending funds to non-financial institutions and recognized in profit or loss |
| Profit or loss on entrusted investments or assets management | 6,982,910.02 | VII. 68 of Section X |
| Profit or loss on entrusted loans | ||
| Losses on assets due to force majeure events, e.g. natural disasters | ||
| Reversal of impairment loss on accounts receivable and contract assets tested for impairment individually |
| The excess of the attributable fair value of identifiable net assets over the consideration paid for the acquisition of subsidiaries, associates and joint ventures |
ecognized as a result of the business
| combination of enterprises involving enterprises under common control | 7,005,333.38 |
| Profit or loss on the exchange of non-monetary assets | ||
| Profit or loss on debt restructuring | ||
| One-off expenses incurred by the enterprise for discontinued operating activities, such as expenditures for employee placement, etc. |
| One-off effect on the profit or loss for the current period due to an adjustment in taxation, accounting, and other laws and regulations |
| Share-based payment expenses recognized on a one-off basis for canceling or modifying an equity incentive plan | ||
| For cash-settled share-based payments, profit or loss from the change in fair value of employee benefits payable after the exercise date |
| Profit or loss on changes in the fair value of investment properties that are subsequently measured using the fair value model |
| Profit or loss attributable to the evidently unfair transaction price | ||
| Profit or loss arising from contingencies other than those related to normal operating business |
| Custodian fees earned from entrusted operation | ||
| Other non-operating income and expenses | 1,103,459.06 | |
| Other gains or losses meeting the definition of non-recurring profit or loss |
-
| 37,353,061.61 | VII. 68 of Section X | |
| Less: Effect of income taxes | 4,782,728.03 | |
| Effects attributable to minority interests (net of tax) | 1,457,852.28 | |
| Total | -2,569,674.07 |
It is required to specify the reason for defining items not illustrated in Information Disclosure andPresentation Rules for Companies Making Public Offering of Securities No. 1 - Non-recurring Profit orLoss as non-recurring profit or loss items of significant amounts, and reasons for defining non-recurringprofit or loss items illustrated in Information Disclosure and Presentation Rules for Companies MakingPublic Offering of Securities No. 1 - Non-recurring Profit or Loss as recurring profit or loss items.
√ Applicable□ N/A
For details, refer to “Section II Company Profile and Financial Highlights - VIII. Items and amounts ofnon-recurring profit or loss” of this semiannual report.Other information
□ Applicable√ N/A
2. Return on net assets and earnings per share
√ Applicable□ N/A
Profit for the reporting period
Weightedaverage returnon net assets (%)
Basic earnings
per share
| Earnings per share | |
| Diluted | |
earnings per
| share | |||
| Net profit attributable to ordinary shareholders of the Company | 0.39 | 0.02 | 0.02 |
| Net profit after deduction of non-recurring profits |
or losses attributable to ordinary shareholders of
| the Company | 0.48 | 0.03 | 0.03 |
3. Differences in accounting data under Chinese accounting standards and overseas accounting
standards
□ Applicable√ N/A
4. Others
□ Applicable√ N/A
Chairman: LI Yi
Approval for submission by the Board of Directors: August 29, 2024Revision information
□ Applicable√ N/A