HANGZHOU HIKVISION DIGITAL
TECHNOLOGY CO., LTD.
2020 Quarter 3 ReportJuly to September 2020
October 24
th2020
Section I Important Notes, Contents and DefinitionsThe Board of Directors, Board of Supervisors, directors, supervisors and seniormanagement of Hangzhou Hikvision Digital Technology Co., Ltd. (hereinafter referredto as the “Company”) hereby guarantee that the information presented in this reportshall be together be wholly liable for the truthfulness, accuracy and completeness of itscontents and free of any false records, misleading statements or material omissions,and will undertake individual and joint legal liabilities.All directors of the Company have attended the board meeting to review thisquarterly report.Chen Zongnian, the Company's legal representative, Jin Yan, the person in chargeof the accounting work, and Zhan Junhua, the person in charge of accounting institution(accounting supervisor) hereby declare and warrant that the financial statements in thisreport are authentic, accurate and complete.
Note:
This document is a translated version of the Chinese version 2020 Q3 Financial Report (“2020年第三季度报告全文”), and the published 2020 Q3 report in the Chinese version shall prevail. Thecomplete published Chinese 2020 Q3 Financial Report may be obtained at http://www.cninfo.com.cn.
Section II Corporate ProfileI. Key Accounting Data and Financial IndicatorsWhether the Company performed a retroactive adjustment or restatement of the previous accounting data
□Yes√ No
| At September 30th 2020 | At December 31st 2019 | Change(%) between December 31st 2019 and September 30th 2020 | |||
| Total assets (RMB) | 79,216,734,278.27 | 75,358,000,240.29 | 5.12% | ||
| Net assets attributable to shareholders of the Company (RMB) | 47,800,785,407.20 | 44,904,033,876.83 | 6.45% | ||
| 2020 Q3 | YoY Change(%) between 2020 Q3 and 2019 Q3 | 2020 Q1~Q3 | YoY Change(%) between 2019 Q1~Q3 and 2020 Q1~Q3 | ||
| Operating income (RMB) | 17,750,035,645.86 | 11.53% | 42,021,194,889.62 | 5.48% | |
| Net profits attributable to shareholders of the Company (RMB) | 3,814,978,645.77 | 0.12% | 8,438,951,476.64 | 5.13% | |
| Net profits attributable to shareholders of the Company excluding non-recurring gains and losses (RMB) | 3,576,189,605.69 | -2.48% | 8,039,687,983.37 | 3.21% | |
| Net cash flows from operating activities (RMB) | 5,464,651,652.26 | 883.95% | 5,534,617,992.83 | 4352.08% | |
| Basic earnings per share (RMB/share) | 0.405 | 1.25% | 0.909 | 5.70% | |
| Diluted earnings per share (RMB/share) | 0.405 | 1.25% | 0.909 | 5.70% | |
| Weighted average Return on Equity (ROE) | 8.34% | -1.30% | 18.12% | -2.32% | |
The total share capital of the Company as of the previous trading day of the financial report disclosure:
| The total share capital of the Company as of the previous trading day of the financial report disclosure (share) | 9,345,010,696 |
| Fully diluted earnings per share (RMB/share) calculated with the latest share capital | 0.903 |
| Item | January 1st 2020–September 30th 2020 |
| Profit or loss from disposal of non-current assets (including the write-off for the impairment provision of assets) | 304,642.17 |
| The government subsidies included in the current profits and losses (excluding the government subsidy closely related to regular course of business of the Company and government subsidy based on standard quota or quantitative continuous application according to the state industrial policy.) | 483,576,325.24 |
| Profits and losses attributed to change in fair value for held-for-trading financial assets, derivative financial assets, held-for-trading financial liabilities, and derivative financial liabilities; and investment income from disposal of held-for-trading financial assets, derivative financial assets, held-for-trading financial liabilities, derivative financial liabilities and other debt investments, excluding the effective hedging business related to the regular business operation of the Company. | 37,532,757.35 |
| Other non-operating income and expenditures except the items mentioned above | 30,885,184.58 |
| Less: Impact of income tax | 123,079,331.88 |
| Impact of the minority interests (after tax) | 29,956,084.19 |
| Total | 399,263,493.27 |
II. Total Number of Shareholders at the end of the reporting period and Information for Top 10 Shareholders
1. Number of common shareholders and preferred shareholders with resumed voting rights and information about top 10 shareholders
Unit: Share
| Total number of common shareholders at the end of the reporting period | 242,350 | Total number of preferred shareholders (if any) whose voting rights have been recovered at the end of the reporting period | 0 | ||||
| Particulars about top 10 shareholders | |||||||
| Name of shareholder | Nature of shareholder | Share- holding percentage (%) | Total shares held at the period-end | The number of common shares held with trading restrictions | Pledged or frozen | ||
| Status | Amount | ||||||
| China Electronics Technology HIK Group Co., Ltd. | Domestic State-owned corporation | 38.88% | 3,632,897,256 | 0 | Pledged | 50,000,000 | |
| Gong Hongjia | Overseas individual | 12.43% | 1,161,608,214 | 941,292,525 | Pledged | 444,540,000 | |
| Hong Kong Securities Clearing Company Ltd.(HKSCC) | Overseas corporation | 5.97% | 558,304,047 | 0 | - | ||
| Xinjiang Weixun Investment Management Limited Partnership | Domestic non-state-owned corporation | 4.82% | 450,795,176 | 0 | Pledged | 93,148,998 | |
| Perseverance Asset Management L.L.P.－Perseverance LinShan No.1 YuanWang Fund | Funds, financial products, etc. | 2.47% | 231,000,026 | 0 | |||
| Xinjiang Pukang Investment Limited Partnership | Domestic non-state-owned corporation | 1.95% | 182,510,174 | 0 | Pledged | 127,700,000 | |
| Hu Yangzhong | Domestic Individual | 1.95% | 182,186,477 | 136,639,858 | Pledged | 8,150,000 | |
| The 52nd Research Institute at China Electronics Technology Group Corporation | Domestic State-owned corporation | 1.93% | 180,775,044 | 0 | - | ||
| CITIC Securities Company Limited | Domestic State-owned corporation | 1.21% | 113,094,618 | 0 | - | ||
| Central Huijin Investment Ltd. | Domestic State-owned corporation | 0.70% | 65,818,800 | 0 | - | ||
| Particulars about shares held by the Top 10 common shareholders holding shares that are not subject to trading restriction(s) | |||
| Name of shareholder | Number of common shares without trading restrictions held at the period-end | Type of shares | |
| Type | Number | ||
| China Electronics Technology HIK Group Co., Ltd. | 3,632,897,256 | RMB ordinary shares | 3,632,897,256 |
| Hong Kong Securities Clearing Company Ltd.(HKSCC) | 558,304,047 | RMB ordinary shares | 558,304,047 |
| Xinjiang Weixun Investment Management Limited Partnership | 450,795,176 | RMB ordinary shares | 450,795,176 |
| Perseverance Asset Management L.L.P.－Perseverance LinShan No.1 YuanWang Fund | 231,000,026 | RMB ordinary shares | 231,000,026 |
| Gong Hongjia | 220,315,689 | RMB ordinary shares | 220,315,689 |
| Xinjiang Pukang Investment Limited Partnership | 182,510,174 | RMB ordinary shares | 182,510,174 |
| The 52nd Research Institute at China Electronics Technology Group Co. Ltd. | 180,775,044 | RMB ordinary shares | 180,775,044 |
| CITIC Securities Company Limited | 113,094,618 | RMB ordinary shares | 113,094,618 |
| Central Huijin Investment Ltd. | 65,818,800 | RMB ordinary shares | 65,818,800 |
| Hu Yangzhong | 45,546,619 | RMB ordinary shares | 45,546,619 |
| Explanation on associated relationship and concerted actions among above shareholders | China Electronics Technology HIK Group Co., Ltd. and The 52nd Research Institute at China Electronics Technology Group are all subject to control of China Electronics Technology Group Corporation. Ms. Chen Chunmei, limited partner of Xinjiang Pukang Investment Limited Partnership, is the spouse of Mr. Gong Hongjia, foreign individual shareholder of the Company. Hu Yangzhong, domestic individual, is holding shares in both Xinjiang Weixun Investment Management Limited Partnership and Xinjiang Pukang Investment Limited Partnership. Except for these, the Company does not know whether the other shareholders are related parties or whether they are acting-in-concert parties in accordance with the Measures for Management of the Disclosure of the Shareholding Changes of Shareholders of the Listed Company. | ||
Any of the Company’s top 10 common shareholders or top 10 non-restricted common shareholders conducts anyagreed buy-back in the reporting period?
□ Applicable √ Inapplicable
No such cases in the reporting period.
2. Total number of preferred shareholders and information about Top 10 preferred shareholders
□ Applicable √ Inapplicable
Section III Significant Events
1. Information and explanation about variations in key financial statement items and financial
indicators during the reporting period.
√Applicable □Inapplicable
1.1 Explanation for variations in balance sheet items
| Item | Balance at September 30th 2020 (RMB) | Balance at December 31st 2019 (RMB) | YoY change (%) | Note of Changes |
| Contract assets | 126,490,278.41 | 0.00 | 100.00% | According to the new revenue standard, part of the completed and unsettled assets and accounts receivable are reclassified to contract assets. |
| Other non-current assets | 542,886,697.82 | 865,586,676.92 | -37.28% | Decrease in unsettled assets that have been completed for more than one year according to the construction progress of the projects |
| Non-current assets due within one year | 1,036,003,483.96 | 528,469,701.75 | 96.04% | Increase in long-term receivables confirmed by installment sales of goods |
| Long-term receivables | 1,975,160,938.45 | 1,382,536,761.22 | 42.86% | |
| Long-term equity investment | 521,779,447.88 | 252,165,321.49 | 106.92% | Increase in external equity investments |
| Other non-current financial assets | 458,565,043.51 | 312,398,267.44 | 46.79% | Increase in external equity investments |
| Construction in progress | 1,248,463,158.58 | 631,555,479.06 | 97.68% | Mainly due to increased investment in the second phase of the Chengdu Technology Base, Hangzhou Innovation Industrial Base and Chongqing Technology Base |
| Short-term borrowings | 4,339,565,033.35 | 2,640,082,485.15 | 64.37% | Increased demand for short-term working capital |
| Notes payable | 610,407,561.05 | 1,239,584,016.70 | -50.76% | Increase in purchase payment due |
| Taxes payable | 1,798,414,632.65 | 991,342,805.91 | 81.41% | Increase in unpaid corporate income tax |
| Other payables | 2,227,367,991.23 | 1,568,744,599.94 | 41.98% | Increase in accrued expenses and unpaid dividends payable |
| Non-current liabilities due within one year | 207,812,149.40 | 86,123,154.06 | 141.30% | Increase in long-term loans due within one year |
| Other current liabilities | 1,817,675,879.67 | 913,534,538.26 | 98.97% | The Company issued 1 billion RMB of short-term commercial paper during the current reporting period |
| Deferred income tax liabilities | 95,017,852.70 | 51,088,103.96 | 85.99% | Increased taxable temporary differences such as accelerated depreciation |
| Other comprehensive income | -88,048,825.29 | -53,541,146.99 | -64.45% | Exchange rate fluctuations caused a decrease in the conversion differences of foreign currency statements |
| Item | 2020 Q1~Q3 (RMB) | 2019 Q1~Q3 (RMB) | YoY Change (%) | Note of changes |
| Financial expense | 154,708,009.70 | -626,571,624.15 | 124.69% | Increase in foreign exchange losses subject to exchange rate fluctuations. |
| Investment Income | 124,741,116.75 | 29,551,998.27 | 322.11% | Increase in investment dividends |
| Gains from changes in fair value | 40,458,673.51 | 11,214,933.39 | 260.76% | Increase in gains from changes in fair value of other non-current financial assets |
| Asset impairment loss | -260,366,239.98 | -149,483,833.80 | 74.18% | Increase in provision for impairment of inventory |
| Item | 2020 Q1~Q3 (RMB) | 2019 Q1~Q3 (RMB) | YoY Change (%) | Note of changes |
| Net cash flows from operating activities | 5,534,617,992.83 | 124,315,235.40 | 4352.08% | Mainly the increase in sales collection for the current reporting period |
| Net cash flows from investing activities | -1,803,764,753.48 | -1,257,968,335.26 | -43.39% | Increase in external equity investment and long-term asset purchase and construction expenditures |
asset group of the thermal imaging division of Hikvision at a consideration of RMB 801.14 million (excluding tax) to HangzhouHikmicro Sensing Technology Co., Ltd., a holding subsidiary of innovative business. The above transfer was completed in July2020.On May 23
th 2020, the Company disclosed the Announcement on the pre-disclosure of Shareholding Reduction (No. 2020-034): The shareholder, Gong Hongjia, who holds 1,255,056,700 shares of the Company (accounting for 13.43% of the Company’stotal share capital) plans to reduce his holdings of the Company's shares, not exceeding 2% of the Company's total share capital,within six months after 15 trading days from the date of the announcement. On September 3
rd2020, the Company received theGong Hongjia’s Notification Letter on the Completion of the Implementation of the Share Reduction Plan issued by shareholderGong Hongjia. Gong Hongjia reduced his holdings of the Company’s shares by a total of 93,448,486 shares (accounting for 1.00%of the current Company’s total share capital) through bidding transactions. The implementation of the reduction plan is completed,and the remaining shares of the reduction plan will no longer be reduced through bidding transactions. For details, please refer tothe Announcement on Share Reduction by Shareholders (No. 2020-050) disclosed by the Company on September 4
th
2020.
| Overview of significant events | Disclosure Date | Temporary public disclosure website index |
| Proposal on Transfer of Part of Assets to the Company’s Holding Subsidiary of Innovative Business | July 25th 2020 | www.cninfo.com.cn |
| Announcement on Share Reduction by Shareholders | September 4th 2020 | www.cninfo.com.cn |
2. Details in derivatives investment
√Applicable □Inapplicable
Unit: 0,000 RMB
| Name of derivative investment operator | Relation-ship | Whether related transaction exists | Types of derivatives investment | Initial investment amount of derivatives investment | Start Date | Expiration date | Initial investment amount | Purchase amount during the current reporting period | Amount sold during the current reporting period | Amount of impairment provision (if any) | Closing investment amount | The proportion of the closing investment amount to the Company’s net assets at the end of the reporting period | Actual profit and loss amount during the reporting period |
| Commercial bank | No | No | Foreign exchange contract | 98,489.32 | December 5th 2019 | November 3rd 2020 | 98,489.32 | 151,174.96 | - | - | 20,152.37 | 0.42% | -314.59 |
| Total | 98,489.32 | -- | -- | 98,489.32 | 151,174.96 | - | - | 20,152.37 | 0.42% | -314.59 | |||
| Source of funds for derivatives investments | Own capital | ||||||||||||
| Litigation involved (if applicable) | Not applicable | ||||||||||||
| Disclosure date of the board of directors announcement for the approval of derivatives investment (if any) | April 20th 2019 / December 25th 2019 | ||||||||||||
| Disclosure date of the announcement of the shareholders meeting for the approval of derivatives investment (if any) | May 16th 2020 | ||||||||||||
| Risk analysis and control measures for derivatives holdings during the reporting period (including but not limited to market risk, liquidity risk, credit risk, operational risk, legal risk, etc.) | For specific information on risk analysis and control measures, please refer to the Announcement on Conducting Foreign Exchange Hedging Transactions in 2019 (Announcement No. 2019-021) disclosed by the Company on April 20th 2019 and Announcement on the Implementation of Foreign Exchange Hedging Transactions in 2020 (Announcement No. 2019-065) disclosed on December 25th 2019. | ||||||||||||
| Changes in market prices or product fair values of invested derivatives during the reporting period. The analysis of the fair value of derivatives should disclose the specific methods used and related assumptions and parameter settings | The Company's accounting for the fair value of derivatives is mainly for the unexpired contracts of forward foreign exchange settlement and sale transactions signed by the Company and banks during the reporting period. Based on the difference between the quotation of the unexpired forward foreign exchange settlement and sale contract at the end of the period and the forward foreign exchange price, the held-for-trading financial assets or held-for-trading financial liabilities are recognized. | ||||||||||||
| Explanation of whether the Company’s derivatives accounting policies and specific accounting principles have changed significantly during the reporting period compared with the previous reporting period | Not applicable |
| Independent directors' specific opinions on the Company's derivatives investment and risk control | Not applicable |
10. The Company’s funds used by the controlling shareholder or its related parties for non-operating purposes
□ Applicable √ Inapplicable
No such case in the reporting period.
11. Schedule for the reception activities including research, communication and interviewsduring the reporting period
√ Applicable □ Inapplicable
11.1 Reception of research activities during 2020 Q3
| Time of reception | Location | Method of reception | Type of reception object | Index of basic situation of the research activities |
| July 25th 2020 | Corporate Headquarter conference room | Performance Result Conference Call | Institutional investors; Individuals | CNINF, Investor Relations Activity Record: July 25TH 2020 |
| From July 27th 2020 to August 10th 2020 | Corporate Headquarter conference room | On-site Research and telephone communication | Institutional investors | CNINF, Investor Relations Activity Record: From July 27th 2020 to August 10th 2020 |
| From August 11th 2020 to August 21st 2020 | Corporate Headquarter conference room | On-site Research and telephone communication | Institutional investors | CNINF, Investor Relations Activity Record: From August 11th 2020 to August 21st 2020 |
| From August 24th 2020 to September 4th 2020 | Corporate Headquarter conference room | On-site Research and telephone communication | Institutional investors | CNINF, Investor Relations Activity Record: From August 24th 2020 to September 4th 2020 |
| From September 7th 2020 to September 25th 2020 | Corporate Headquarter conference room | On-site Research and telephone communication | Institutional investors | CNINF, Investor Relations Activity Record: From September 7th 2020 to September 25th 2020 |
11.2 Participation of conferences for investor relationship activities during 2020 Q3
| Time of conference | Location | Conference Name | Type of reception object | Method of reception |
| July 2020 | Virtual Conference | Europe Virtual NDR-via CICC | All kinds of investors | One-on-One, One-on-multi, small group Meetings, and etc. |
| August 2020 | Virtual Conference | Hongkong Virtual NDR-via Bernstein | All kinds of investors | One-on-One, One-on-multi, small group Meetings, and etc. |
| August 2020 | Virtual Conference | Hongkong Virtual NDR-via Jefferies | All kinds of investors | One-on-One, One-on-multi, small group Meetings, and etc. |
| August 2020 | Virtual Conference | U.S.A Virtual NDR- via Jefferies | All kinds of investors | One-on-One, One-on-multi, small group Meetings, and etc. |
| August 2020 | Shanghai | NDR-via Guangfa Securities | All kinds of investors | One-on-One, One-on-multi, small group Meetings, and etc. |
| August 2020 | Shenzhen, Guangzhou | NDR-via Shenwan Hongyuan Securities | All kinds of investors | One-on-One, One-on-multi, small group Meetings, and etc. |
| August 2020 | Virtual Conference | Europe and U.S.A. NDR-via Bernstein | All kinds of investors | One-on-One, One-on-multi, small group Meetings, and etc. |
| August 2020 | Beijing | NDR-via CITIC Securities | All kinds of investors | One-on-One, One-on-multi, small group Meetings, and etc. |
| August 2020 | Virtual Conference | Nomura Virtual China Investor Forum 2020 | All kinds of investors | One-on-One, One-on-multi, small group Meetings, and etc. |
| August 2020 | Virtual Conference | UBS 2020 China A-Share Virtual Conference | All kinds of investors | One-on-One, One-on-multi, small group Meetings, and etc. |
| August 2020 | Virtual Conference | Goldman Sachs China A-Share Conference | All kinds of investors | One-on-One, One-on-multi, small group Meetings, and etc. |
| September 2020 | Virtual Conference | Huachuang Securities 2020 Autumn Conference | All kinds of investors | One-on-One, One-on-multi, small group Meetings, and etc. |
| September 2020 | Virtual Conference | Morgan Stanley Virtual Asia TMT Conference | All kinds of investors | One-on-One, One-on-multi, small group Meetings, and etc. |
| September 2020 | Virtual Conference | 21st Credit Suisse Asian Technology Conference (virtual event) | All kinds of investors | One-on-One, One-on-multi, small group Meetings, and etc. |
| September 2020 | Virtual Conference | The 27th CITIC Securities-CLSA Flagship Investor Forum | All kinds of investors | One-on-One, One-on-multi, small group Meetings, and etc. |
| September 2020 | Virtual Conference | Jefferies Inaugural Jefferies Asia Forum | All kinds of investors | One-on-One, One-on-multi, small group Meetings, and etc. |
| September 2020 | Virtual Conference | Bernstein 17th Annual Pan European Strategic Decisions Conference | All kinds of investors | One-on-One, One-on-multi, small group Meetings, and etc. |
11.3 Investor relations activity statistics during 2020 Q3
| Number of daily research received (On-site and telephone conference, times) | 89 |
| Number of institutional investors received (ppl) | 1,094 |
| Number of individual investors received (ppl) | 17 |
| Number of investor relations conference participated | 17 |
Section IV Financial Reports
4.1 Financial Reports
1. Consolidated Balance Sheet
September 30
th
2020
Unit: RMB
| Item | September 30th 2020 | December 31st 2019 |
| Current Assets: | ||
| Cash and bank balances | 26,724,024,164.26 | 27,071,948,919.78 |
| Held-for-trading financial assets | 3,699,122.53 | 181.76 |
| Notes receivable | 1,011,138,678.03 | 973,236,789.02 |
| Accounts receivable | 23,081,153,716.66 | 21,307,927,200.28 |
| Receivables for financing | 1,401,626,436.20 | 1,257,385,053.02 |
| Prepayments | 353,652,040.44 | 309,685,733.32 |
| Other receivables | 487,082,928.46 | 555,246,545.48 |
| Inventories | 11,152,999,292.02 | 11,267,986,843.11 |
| Contract assets | 126,490,278.41 | - |
| Non-current assets due within one year | 1,036,003,483.96 | 528,469,701.75 |
| Other current assets | 709,905,750.73 | 754,456,821.72 |
| Total Current Assets | 66,087,775,891.70 | 64,026,343,789.24 |
| Non-current Assets: | ||
| Long-term receivables | 1,975,160,938.45 | 1,382,536,761.22 |
| Long-term equity investment | 521,779,447.88 | 252,165,321.49 |
| Other non-current financial assets | 458,565,043.51 | 312,398,267.44 |
| Fixed assets | 5,949,833,303.19 | 5,791,218,720.87 |
| Construction in progress | 1,248,463,158.58 | 631,555,479.06 |
| Intangible assets | 1,180,714,269.67 | 1,046,122,507.64 |
| Goodwill | 270,239,159.35 | 273,611,961.96 |
| Long-term deferred expenses | 95,363,789.29 | 87,611,490.75 |
| Deferred tax assets | 885,952,578.83 | 688,849,263.70 |
| Other non-current assets | 542,886,697.82 | 865,586,676.92 |
| Total Non-current Assets | 13,128,958,386.57 | 11,331,656,451.05 |
| Total Assets | 79,216,734,278.27 | 75,358,000,240.29 |
| Current Liabilities: | ||
| Short-term borrowings | 4,339,565,033.35 | 2,640,082,485.15 |
| Held-for-trading financial liabilities | 7,004.35 | 652,428.18 |
| Notes payable | 610,407,561.05 | 1,239,584,016.70 |
| Accounts payable | 9,818,653,069.71 | 12,700,075,307.70 |
| Contract Liabilities | 1,352,215,377.01 | - |
| Item | September 30th 2020 | December 31st 2019 |
| Receipts in advance | 1,020,989,460.61 | |
| Payroll payable | 2,235,616,280.86 | 2,359,674,640.12 |
| Taxes payable | 1,798,414,632.65 | 991,342,805.91 |
| Other payables | 2,227,367,991.23 | 1,568,744,599.94 |
| Including : Interests payable | ||
| Dividends payable | 205,898,523.84 | 108,129,385.24 |
| Non-current liabilities due within one year | 207,812,149.40 | 86,123,154.06 |
| Other current liabilities | 1,817,675,879.67 | 913,534,538.26 |
| Total Current Liabilities | 24,407,734,979.28 | 23,520,803,436.63 |
| Non-current Liabilities: | ||
| Long-term borrowings | 4,797,581,206.34 | 4,604,168,571.43 |
| Long-term payables | 49,212,312.82 | 50,181,416.72 |
| Provisions | 85,303,772.07 | 90,570,669.01 |
| Deferred income | 192,809,629.77 | 333,589,831.30 |
| Deferred tax liabilities | 95,017,852.70 | 51,088,103.96 |
| Other non-current liabilities | 1,234,739,326.10 | 1,234,739,326.10 |
| Total non-current liabilities | 6,454,664,099.80 | 6,364,337,918.52 |
| Total liabilities | 30,862,399,079.08 | 29,885,141,355.15 |
| Owners’ Equity | ||
| Share capital | 9,345,010,696.00 | 9,345,010,696.00 |
| Capital reserves | 5,058,308,870.67 | 4,126,943,698.96 |
| Less: Treasury shares | 2,046,939,271.56 | 2,148,273,864.36 |
| Other comprehensive income | (88,048,825.29) | (53,541,146.99) |
| Surplus reserves | 4,672,505,348.00 | 4,672,505,348.00 |
| Retained earnings | 30,859,948,589.38 | 28,961,389,145.22 |
| Total owners' equity attributable to owner of the Company | 47,800,785,407.20 | 44,904,033,876.83 |
| Minority equity | 553,549,791.99 | 568,825,008.31 |
| Total owners' equity | 48,354,335,199.19 | 45,472,858,885.14 |
| Total liabilities and owners' equity | 79,216,734,278.27 | 75,358,000,240.29 |
2. Balance Sheet of the Parent Company
Unit: RMB
| Item | September 30th 2020 | December 31st 2019 |
| Current Assets: | ||
| Cash and bank balances | 18,431,399,544.71 | 16,851,590,525.05 |
| Notes receivable | 122,418,086.27 | 149,703,073.98 |
| Accounts receivable | 29,999,914,461.83 | 25,107,965,925.08 |
| Receivables for financing | 97,128,786.70 | 84,839,695.67 |
| Prepayments | 177,688,053.30 | 160,688,588.99 |
| Other receivables | 1,525,238,871.47 | 921,275,388.15 |
| Including: Interests receivable | ||
| Dividends receivable | - | 2,550,000.00 |
| Inventories | 221,715,239.78 | 171,243,815.97 |
| Contract assets | 5,484,332.44 | - |
| Non-current assets due within one year | 94,087,854.60 | 4,513,795.81 |
| Other current assets | 21,460,416.80 | 23,117,398.50 |
| Total Current Assets | 50,696,535,647.90 | 43,474,938,207.20 |
| Non-current Assets: | ||
| Long-term receivables | 68,593,256.43 | 681,568.43 |
| Long-term equity investment | 6,044,491,821.20 | 5,074,018,030.44 |
| Other non-current financial assets | 455,670,823.51 | 309,504,047.44 |
| Fixed assets | 2,806,275,072.45 | 2,831,295,145.61 |
| Construction in progress | 344,069,153.59 | 153,416,054.28 |
| Intangible assets | 165,825,318.15 | 188,362,883.75 |
| Long-term deferred expenses | 44,329,900.69 | 34,199,446.06 |
| Deferred tax assets | 176,930,540.34 | 126,357,792.34 |
| Other non-current assets | 18,749,006.23 | 21,619,464.07 |
| Total Non-current Assets | 10,124,934,892.59 | 8,739,454,432.42 |
| Total Assets | 60,821,470,540.49 | 52,214,392,639.62 |
| Current Liabilities: | ||
| Short-term borrowings | 3,482,751,236.09 | 2,001,781,388.89 |
| Accounts payable | 449,065,134.95 | 450,983,270.08 |
| Contract liabilities | 318,991,129.74 | - |
| Receipts in advance | 227,242,328.23 |
| Item | September 30th 2020 | December 31st 2019 |
| Payroll payable | 1,424,975,531.91 | 1,564,304,003.49 |
| Taxes payable | 1,519,649,694.85 | 796,890,945.83 |
| Other payables | 2,258,051,626.19 | 533,325,191.05 |
| Including : Interests payable | ||
| Dividends payable | 205,898,523.84 | 105,679,385.24 |
| Non-current liabilities due within one year | 4,445,607.82 | 9,539,251.98 |
| Other current liabilities | 1,817,675,879.77 | 913,534,538.26 |
| Total Current Liabilities | 11,275,605,841.32 | 6,497,600,917.81 |
| Non-current Liabilities: | ||
| Long-term borrowings | 3,197,640,000.00 | 3,126,200,000.00 |
| Provisions | 51,992,619.07 | 62,863,096.83 |
| Deferred Income | 123,060,667.94 | 162,018,728.45 |
| Other non-current liabilities | 1,234,739,326.10 | 1,234,739,326.10 |
| Total non-current liabilities | 4,607,432,613.11 | 4,585,821,151.38 |
| Total liabilities | 15,883,038,454.43 | 11,083,422,069.19 |
| Owners’ Equity | ||
| Share capital | 9,345,010,696.00 | 9,345,010,696.00 |
| Capital reserves | 4,665,997,632.43 | 4,064,833,739.52 |
| Less: Treasury shares | 2,046,939,271.56 | 2,148,273,864.36 |
| Surplus reserves | 4,672,505,348.00 | 4,672,505,348.00 |
| Retained earnings | 28,301,857,681.19 | 25,196,894,651.27 |
| Total owners' equity | 44,938,432,086.06 | 41,130,970,570.43 |
| Total liabilities and owners' equity | 60,821,470,540.49 | 52,214,392,639.62 |
3. Consolidated Income Statement
Unit: RMB
| Item | 2020 Q3 | 2019 Q3 |
| I. Total operating income | 17,750,035,645.86 | 15,915,642,804.35 |
| II．Total operating costs | 14,236,690,054.68 | 11,986,336,953.81 |
| Including：Total operating costs | 9,777,113,666.40 | 8,496,804,444.94 |
| Business taxes and surcharges | 115,971,298.33 | 96,963,076.85 |
| Selling expenses | 1,813,548,049.93 | 1,940,139,966.75 |
| Administrative expenses | 470,051,489.24 | 446,580,701.06 |
| Research and Development (R&D) expenses | 1,677,325,334.35 | 1,502,476,961.10 |
| Financial expenses | 382,680,216.43 | (496,628,196.89) |
| Including：Interest expenses | 54,235,983.98 | 74,410,747.56 |
| Interest income | 157,417,761.75 | 161,426,059.65 |
| Add: Other Income | 695,122,842.24 | 580,970,230.04 |
| Investment income (loss) | (25,478,592.81) | 8,327,642.30 |
| Including: Investment gains (losses) in associated enterprise and joint-venture enterprise | (13,390,249.40) | 5,825,385.04 |
| Gains from changes in fair values | 60,895,110.47 | 9,348,538.93 |
| Credit impairment losses (“-“) | (56,336,117.60) | (144,256,060.56) |
| Impairment losses (“-“) of assets | (94,972,081.65) | (69,340,091.15) |
| Asset disposal income | 283,087.18 | 389,512.37 |
| III. Operating profit | 4,092,859,839.01 | 4,314,745,622.47 |
| Add: Non-operating income | 19,780,669.56 | 20,153,328.90 |
| Less: Non-operating expenses | 5,510,143.35 | 3,644,173.04 |
| IV. Total profit | 4,107,130,365.22 | 4,331,254,778.33 |
| Less: Income tax expenses | 196,804,188.85 | 460,924,198.11 |
| V. Net profit | 3,910,326,176.37 | 3,870,330,580.22 |
| 5.1 Classification by operation continuity | ||
| (a) Net profit on continuous operation | 3,910,326,176.37 | 3,870,330,580.22 |
| 5.2 Classification by attribution of ownership | ||
| (a) Profit or loss attributable to minority shareholders | 95,347,530.60 | 59,751,625.33 |
| (b) Net profit attributable to owners of parent company | 3,814,978,645.77 | 3,810,578,954.89 |
| VI. Other comprehensive income, net of income tax | (9,595,165.08) | (5,267,606.68) |
| Other comprehensive income attributable to owners of the Company, net of tax | (10,024,762.83) | (5,162,206.61) |
| (I) Items that will not be reclassified subsequently to profit or loss |
| Item | 2020 Q3 | 2019 Q3 |
| (II) Other comprehensive income to be reclassified to profit or loss in subsequent periods | (10,024,762.83) | (5,162,206.61) |
| Exchange differences arising on conversion of financial statements denominated in foreign currencies | (10,024,762.83) | (6,527,620.17) |
| Gains and losses from changes in fair value of other current assets | 1,365,413.56 | |
| Other comprehensive income attributable to minority interests, net of tax | 429,597.75 | (105,400.07) |
| VII. Total comprehensive income | 3,900,731,011.29 | 3,865,062,973.54 |
| Total comprehensive income attributable to owners of the parent company | 3,804,953,882.94 | 3,805,416,748.28 |
| Total comprehensive income attributable to minority shareholders | 95,777,128.35 | 59,646,225.26 |
| VIII. Earnings per share | ||
| (I) Basic earnings per share | 0.405 | 0.400 |
| (II) Diluted earnings per share | 0.405 | 0.400 |
| Item | 2020 Q3 | 2019 Q3 |
| I. Total operating income | 7,511,924,308.00 | 6,920,272,660.94 |
| Less: Total operating Cost | 1,956,223,390.19 | 2,180,260,453.52 |
| Business taxes and surcharges | 84,476,812.68 | 67,760,722.14 |
| Selling expenses | 628,836,225.71 | 852,081,852.19 |
| Administrative expenses | 202,054,745.57 | 184,623,515.65 |
| Research and Development (R&D) expenses | 1,067,748,117.12 | 1,095,442,523.12 |
| Financial expenses | (37,892,562.70) | (361,435,536.59) |
| Including : Interest expenses | 8,885,004.93 | 6,808,200.57 |
| Interest income | 110,979,371.45 | 124,514,655.05 |
| Add: Other income | 553,775,426.53 | 434,811,042.75 |
| Investment income | 793,888,185.71 | 2,102,615.50 |
| Including: Investment gain (loss) in associated enterprise and joint-venture enterprise | (8,930,255.92) | 2,102,615.50 |
| Gains from changes in fair values | 49,112,093.33 | 10,635,547.81 |
| Credit impairment losses (“-“) | (11,379,036.94) | (30,515,452.66) |
| Impairment losses (“-“) of assets | 500,808.24 | 1,753,720.58 |
| Asset disposal income | 7,882.27 | 10,098.01 |
| II. Operating profit | 4,996,382,938.57 | 3,320,336,702.90 |
| Add: Non-operating income | 3,145,560.28 | 4,577,655.07 |
| Item | 2020 Q3 | 2019 Q3 |
| Less: Non-operating expenses | 2,846,523.76 | 1,684,190.05 |
| III. Total profit | 4,996,681,975.09 | 3,323,230,167.92 |
| Less: Income tax expenses | 293,424,076.90 | 151,477,969.94 |
| IV. Net profit | 4,703,257,898.19 | 3,171,752,197.98 |
| (a) Net profit on continuous operation | 4,703,257,898.19 | 3,171,752,197.98 |
| V. Other comprehensive income, net of income tax | (1,937,862.58) | |
| (I) Items that will not be reclassified subsequently to profit or loss | ||
| (II) Other comprehensive income to be reclassified to profit or loss in subsequent periods | (1,937,862.58) | |
| Gains and losses from changes in fair value of other current assets | (1,937,862.58) | |
| VI. Total comprehensive income | 4,703,257,898.19 | 3,169,814,335.40 |
| Item | 2020 Q1-Q3 | 2019 Q1-Q3 |
| I. Total operating income | 42,021,194,889.62 | 39,838,916,228.85 |
| II．Total operating costs | 33,719,184,646.63 | 31,313,618,168.78 |
| Including：Total operating costs | 21,970,833,611.78 | 21,337,310,778.62 |
| Business taxes and surcharges | 284,043,463.58 | 264,510,982.77 |
| Selling expenses | 5,233,839,568.35 | 5,153,400,075.91 |
| Administrative expenses | 1,335,010,979.18 | 1,177,690,944.82 |
| Research and Development (R&D) expenses | 4,740,749,014.04 | 4,007,277,010.81 |
| Financial expenses | 154,708,009.70 | (626,571,624.15) |
| Including：Interest expenses | 148,373,068.03 | 167,413,125.18 |
| Interest income | 464,390,827.93 | 454,438,589.00 |
| Add: Other Income | 1,689,901,236.39 | 1,303,536,451.58 |
| Investment income | 124,741,116.75 | 29,551,998.27 |
| Including: Investment gains (losses) in associated enterprise and joint-venture enterprise | (22,332,967.09) | 1,610,229.42 |
| Gains from changes in fair values | 40,458,673.51 | 11,214,933.39 |
| Credit impairment losses (“-“) | (209,108,587.37) | (278,782,493.13) |
| Impairment losses (“-“) of assets | (260,366,239.98) | (149,483,833.80) |
| Asset disposal income | 304,642.17 | 1,199,556.27 |
| Item | 2020 Q1-Q3 | 2019 Q1-Q3 |
| III. Operating profit | 9,687,941,084.46 | 9,442,534,672.65 |
| Add: Non-operating income | 51,501,876.64 | 58,460,407.50 |
| Less: Non-operating expenses | 12,888,908.91 | 12,058,354.95 |
| IV. Total profit | 9,726,554,052.19 | 9,488,936,725.20 |
| Less: Income tax expenses | 1,149,356,334.82 | 1,394,844,854.79 |
| V. Net profit | 8,577,197,717.37 | 8,094,091,870.41 |
| 5.1 Classification by operation continuity | ||
| (a) Net profit on continuous operation | 8,577,197,717.37 | 8,094,091,870.41 |
| 5.2 Classification by attribution of ownership | ||
| (a) Profit or loss attributable to minority shareholders | 138,246,240.73 | 66,757,705.28 |
| (b) Net profit attributable to owners of parent company | 8,438,951,476.64 | 8,027,334,165.13 |
| VI. Other comprehensive income, net of income tax | (36,391,343.45) | 224,061.25 |
| Other comprehensive income attributable to owners of the parent company, net of tax | (34,507,678.30) | (239,399.77) |
| (I) Items that will not be reclassified subsequently to profit or loss | ||
| (II) Other comprehensive income to be reclassified to profit or loss in subsequent periods | (34,507,678.30) | (239,399.77) |
| 1.Exchange differences arising on conversion of financial statements denominated in foreign currencies | (34,507,678.30) | (15,729,788.42) |
| 2.Gains and losses from changes in fair value of other current assets | 15,490,388.65 | |
| Other comprehensive income attributable to minority interests, net of tax | (1,883,665.15) | 463,461.02 |
| VII. Total comprehensive income | 8,540,806,373.92 | 8,094,315,931.66 |
| Total comprehensive income attributable to owners of the parent company | 8,404,443,798.34 | 8,027,094,765.36 |
| Total comprehensive income attributable to minority shareholders | 136,362,575.58 | 67,221,166.30 |
| VIII. Earnings per share | ||
| (I) Basic earnings per share | 0.909 | 0.860 |
| (II) Diluted earnings per share | 0.909 | 0.860 |
| Item | 2020 Q1-Q3 | 2019 Q1-Q3 |
| I. Total operating income | 19,096,192,393.23 | 17,354,516,639.53 |
| Less: Total operating Cost | 4,878,230,387.67 | 5,260,041,102.44 |
| Business taxes and surcharges | 212,000,163.18 | 179,363,153.88 |
| Item | 2020 Q1-Q3 | 2019 Q1-Q3 |
| Selling expenses | 2,007,406,390.91 | 2,352,469,006.14 |
| Administrative expenses | 584,100,618.17 | 531,467,438.33 |
| Research and Development (R&D) expenses | 3,258,134,217.35 | 2,875,427,888.71 |
| Financial expenses | (238,495,703.61) | (436,020,048.92) |
| Including : Interest expenses | 22,674,749.11 | 49,350,390.76 |
| Interest income | 326,480,965.28 | 392,680,476.99 |
| Add: Other income | 1,351,019,789.13 | 1,070,578,767.20 |
| Investment income | 986,594,188.91 | 19,153,543.65 |
| Including: Investment loss in associated enterprise and joint-venture enterprise | (12,559,206.81) | (772,376.22) |
| Gains from changes in fair values | 36,094,761.07 | 12,788,786.31 |
| Credit impairment losses (“-“) | (26,484,698.83) | 622,905,019.26 |
| Impairment losses (“-“) of assets | 1,595,892.90 | 51,323,003.42 |
| Asset disposal income | 10,746.11 | 191,846.66 |
| II. Operating profit | 10,743,646,998.85 | 8,368,709,065.45 |
| Add: Non-operating income | 11,895,468.93 | 12,793,513.71 |
| Less: Non-operating expenses | 4,114,046.66 | 6,921,272.37 |
| III. Total profit | 10,751,428,421.12 | 8,374,581,306.79 |
| Less: Income tax expenses | 1,106,073,358.20 | 997,044,554.62 |
| IV. Net profit | 9,645,355,062.92 | 7,377,536,752.17 |
| (a) Net profit on continuous operation | 9,645,355,062.92 | 7,377,536,752.17 |
| V. Other comprehensive income, net of income tax | (774,633.17) | |
| (I) Items that will not be reclassified subsequently to profit or loss | ||
| (II) Other comprehensive income to be reclassified to profit or loss in subsequent periods | (774,633.17) | |
| 1.Gains and losses from changes in fair value of other current assets | (774,633.17) | |
| VI. Total comprehensive income | 9,645,355,062.92 | 7,376,762,119.00 |
7. Consolidated Cash Flow Statement from January 1
st 2020 to September 30
th2020Unit: RMB
| Item | 2020 Q1-Q3 | 2019 Q1-Q3 |
| I. Cash flows from operating activities: | ||
| Cash received from sale of goods or rendering of services | 44,732,201,357.96 | 39,797,920,691.39 |
| Receipts of tax refunds | 2,519,486,353.29 | 2,205,856,683.57 |
| Other cash receipts relating to operating activities | 1,120,966,888.55 | 1,108,671,779.38 |
| Sub-total of cash inflows from operating activities | 48,372,654,599.80 | 43,112,449,154.34 |
| Cash payments for goods purchased and services received | 28,365,300,528.80 | 29,259,780,105.41 |
| Cash paid to and on behalf of employees | 7,786,708,739.25 | 6,690,990,896.32 |
| Payments of various types of taxes | 3,516,698,560.06 | 3,748,604,004.24 |
| Other cash payments relating to operating activities | 3,169,328,778.86 | 3,288,758,912.97 |
| Sub-total of cash outflows from operating activities | 42,838,036,606.97 | 42,988,133,918.94 |
| Net Cash flows from Operating Activities | 5,534,617,992.83 | 124,315,235.40 |
| II. Cash flows from Investing Activities: | ||
| Cash receipts from recovery of investments | 1,436,901,231.06 | |
| Cash receipts from investment income | 151,548,143.79 | 10,579,222.38 |
| Net cash receipts from disposals of fixed assets, intangible assets and other long-term assets | 21,360,710.88 | 56,062,267.50 |
| Other cash receipts relating to investing activities | 24,102,324.29 | 18,166,664.71 |
| Sub-total of cash inflows from investing activities | 1,633,912,410.02 | 84,808,154.59 |
| Cash payments to acquire or construct fixed assets, intangible assets and other long-term assets | 1,605,697,549.12 | 1,274,540,687.78 |
| Cash paid to acquire investments | 1,831,979,614.38 | 2,884,220.00 |
| Net cash paid to acquire subsidiaries and other business units | 65,351,582.07 | |
| Sub-total of cash outflows from investing activities | 3,437,677,163.50 | 1,342,776,489.85 |
| Net cash flows from Investing Activities | (1,803,764,753.48) | (1,257,968,335.26) |
| III. Cash flows from financing activities: | ||
| Cash receipts from capital contributions | 159,764,987.03 | 113,220,262.15 |
| Including: cash receipts from capital contributions from minority owners of subsidiaries | 159,764,987.03 | 113,220,262.15 |
| Cash receipts from borrowings | 3,681,920,917.95 | 7,150,799,943.42 |
| Cash receipts from issuance of bonds | 999,500,000.00 | |
| Sub-total of cash inflows from financing activities | 4,841,185,904.98 | 7,264,020,205.57 |
| Cash repayments of borrowings | 1,734,060,296.82 | 2,826,949,887.78 |
| Cash repayments of bonds | 3,079,240,000.00 |
| Cash payments for distribution of dividends or profits or settlement of interest expenses | 6,599,275,667.73 | 5,808,192,337.22 |
| Other cash payments relating to financing activities | 64,290,000.00 | 26,897,116.20 |
| Sub-total of cash outflows from financing activities | 8,397,625,964.55 | 11,741,279,341.20 |
| Net cash flows from Financing Activities | (3,556,440,059.57) | (4,477,259,135.63) |
| IV. Effect of foreign exchange rate changes on Cash and Cash Equivalents | (418,677,132.16) | 314,124,262.83 |
| V. Net Increase in Cash and Cash Equivalents | (244,263,952.38) | (5,296,787,972.66) |
| Add: Opening balance of Cash and Cash Equivalents | 26,515,668,008.40 | 26,031,011,733.89 |
| VI. Closing Balance of Cash and Cash Equivalents | 26,271,404,056.02 | 20,734,223,761.23 |
| Item | 2020 Q1-Q3 | 2019 Q1-Q3 |
| I. Cash flows from Operating Activities:: | ||
| Cash receipts from the sale of goods and the rendering of services | 16,415,929,623.98 | 12,029,215,025.03 |
| Receipts of tax refunds | 1,151,059,755.24 | 934,577,449.38 |
| Other cash receipts relating to operating activities | 601,515,335.11 | 596,615,907.62 |
| Sub-total of cash inflows from operating activities | 18,168,504,714.33 | 13,560,408,382.03 |
| Cash payments for goods acquired and services received | 5,642,609,260.24 | 6,141,625,941.11 |
| Cash payments to and on behalf of employees | 4,067,488,635.30 | 3,826,354,338.41 |
| Payments of various types of taxes | 2,309,740,849.52 | 2,274,516,905.16 |
| Other cash payments relating to operating activities | 1,077,193,118.06 | 1,374,026,139.24 |
| Sub-total of cash outflows from operating activities | 13,097,031,863.12 | 13,616,523,323.92 |
| Net Cash flows from Operating Activities | 5,071,472,851.21 | (56,114,941.89) |
| II. Cash flows from Investing Activities: | ||
| Cash receipts from recovery of investments | 2,800,000.00 | |
| Cash receipts from investment income | 153,552,279.56 | 2,568,699.00 |
| Net cash receipts from disposals of fixed assets, intangible assets and other long-term assets | 5,422,277.99 | 3,976,093.24 |
| Other cash receipts relating to investing activities | 1,655,981,987.34 | 3,066,451,513.72 |
| Sub-total of cash inflows from investing activities | 1,817,756,544.89 | 3,072,996,305.96 |
| Cash payments to acquire or construct fixed assets, intangible assets and other long-term assets | 360,168,318.03 | 264,771,882.74 |
| Cash payments to acquire investments | 922,603,054.15 | |
| Net cash paid to acquire subsidiaries and other business units | 414,400,000.00 | |
| Other cash payments relating to investing activities | 982,391,211.78 | |
| Sub-total of cash outflows from investing activities | 1,282,771,372.18 | 1,661,563,094.52 |
| Net Cash flows from Investing Activities | 534,985,172.71 | 1,411,433,211.44 |
| III. Cash flows from Financing Activities | ||
| Cash receipts from borrowings | 2,480,000,000.00 | 3,679,240,000.00 |
| Cash receipts from issuance of bonds | 999,500,000.00 | |
| Sub-total of cash inflows from financing activities | 3,479,500,000.00 | 3,679,240,000.00 |
| Cash repayments of borrowings | 1,000,000,000.00 | |
| Cash repayments of bonds | 3,079,240,000.00 | |
| Cash payments for distribution of dividends or profits or settlement of interest expenses | 6,468,742,388.72 | 5,669,311,652.85 |
| Other cash payments relating to financing activities | 26,897,116.20 | |
| Sub-total of cash outflows from financing activities | 7,468,742,388.72 | 8,775,448,769.05 |
| Net Cash flows from Financing Activities | (3,989,242,388.72) | (5,096,208,769.05) |
| IV. Effect of foreign exchange rate changes on Cash and Cash Equivalents | (36,671,500.59) | 140,012,598.62 |
| V. Net increase in cash and cash equivalents | 1,580,544,134.61 | (3,600,877,900.88) |
| Add: Beginning balance of cash and cash equivalents | 16,656,028,410.72 | 18,998,934,287.59 |
| VI. Closing Balance of Cash and Cash Equivalents | 18,236,572,545.33 | 15,398,056,386.71 |
| Item | December 31st 2019 | January 1st 2020 | Adjustments |
| Current Assets: | |||
| Cash and bank balances | 27,071,948,919.78 | 27,071,948,919.78 | 0.00 |
| Held-for-trading financial assets | 181.76 | 181.76 | 0.00 |
| Item | December 31st 2019 | January 1st 2020 | Adjustments |
| Notes receivable | 973,236,789.02 | 973,236,789.02 | 0.00 |
| Accounts receivable | 21,307,927,200.28 | 21,272,964,582.56 | -34,962,617.72 |
| Receivables for financing | 1,257,385,053.02 | 1,257,385,053.02 | 0.00 |
| Prepayments | 309,685,733.32 | 309,685,733.32 | 0.00 |
| Other receivables | 555,246,545.48 | 555,246,545.48 | 0.00 |
| Inventories | 11,267,986,843.11 | 10,756,027,592.41 | -511,959,250.70 |
| Contract assets | 546,921,868.42 | 546,921,868.42 | |
| Non-current assets due within one year | 528,469,701.75 | 528,469,701.75 | 0.00 |
| Other current assets | 754,456,821.72 | 754,456,821.72 | 0.00 |
| Total Current Assets | 64,026,343,789.24 | 64,026,343,789.24 | 0.00 |
| Non-current Assets: | |||
| Long-term receivables | 1,382,536,761.22 | 1,382,536,761.22 | 0.00 |
| Long-term equity investment | 252,165,321.49 | 252,165,321.49 | 0.00 |
| Other non-current financial assets | 312,398,267.44 | 312,398,267.44 | 0.00 |
| Fixed assets | 5,791,218,720.87 | 5,791,218,720.87 | 0.00 |
| Construction in progress | 631,555,479.06 | 631,555,479.06 | 0.00 |
| Intangible assets | 1,046,122,507.64 | 1,046,122,507.64 | 0.00 |
| Goodwill | 273,611,961.96 | 273,611,961.96 | 0.00 |
| Long-term deferred expenses | 87,611,490.75 | 87,611,490.75 | 0.00 |
| Deferred tax assets | 688,849,263.70 | 688,849,263.70 | 0.00 |
| Other non-current assets | 865,586,676.92 | 865,586,676.92 | 0.00 |
| Total Non-current Assets | 11,331,656,451.05 | 11,331,656,451.05 | 0.00 |
| Total Assets | 75,358,000,240.29 | 75,358,000,240.29 | 0.00 |
| Current Liabilities: | |||
| Short-term borrowings | 2,640,082,485.15 | 2,640,082,485.15 | 0.00 |
| Held-for-trading financial liabilities | 652,428.18 | 652,428.18 | 0.00 |
| Notes payable | 1,239,584,016.70 | 1,239,584,016.70 | 0.00 |
| Accounts payable | 12,700,075,307.70 | 12,700,075,307.70 | 0.00 |
| Receipts in advance | 1,020,989,460.61 | -1,020,989,460.61 | |
| Contract liabilities | 1,128,239,007.61 | 1,128,239,007.61 | |
| Payroll payable | 2,359,674,640.12 | 2,359,674,640.12 | 0.00 |
| Taxes payable | 991,342,805.91 | 991,342,805.91 | 0.00 |
| Other payables | 1,568,744,599.94 | 1,568,744,599.94 | 0.00 |
| Including : Interests payable | |||
| Dividends payable | 108,129,385.24 | 108,129,385.24 | 0.00 |
| Non-current liabilities due within | 86,123,154.06 | 86,123,154.06 | 0.00 |
| Item | December 31st 2019 | January 1st 2020 | Adjustments |
| one year | |||
| Other current liabilities | 913,534,538.26 | 913,534,538.26 | 0.00 |
| Total Current Liabilities | 23,520,803,436.63 | 23,628,052,983.63 | 107,249,547.00 |
| Non-current Liabilities: | |||
| Long-term borrowings | 4,604,168,571.43 | 4,604,168,571.43 | 0.00 |
| Long-term payables | 50,181,416.72 | 50,181,416.72 | 0.00 |
| Provisions | 90,570,669.01 | 90,570,669.01 | 0.00 |
| Deferred income | 333,589,831.30 | 226,340,284.30 | -107,249,547.00 |
| Deferred tax liabilities | 51,088,103.96 | 51,088,103.96 | 0.00 |
| Other non-current liabilities | 1,234,739,326.10 | 1,234,739,326.10 | 0.00 |
| Total non-current liabilities | 6,364,337,918.52 | 6,257,088,371.52 | -107,249,547.00 |
| Total liabilities | 29,885,141,355.15 | 29,885,141,355.15 | 0.00 |
| Owners’ Equity | |||
| Share capital | 9,345,010,696.00 | 9,345,010,696.00 | 0.00 |
| Capital reserves | 4,126,943,698.96 | 4,126,943,698.96 | 0.00 |
| Less: Treasury shares | 2,148,273,864.36 | 2,148,273,864.36 | 0.00 |
| Other comprehensive income | -53,541,146.99 | -53,541,146.99 | 0.00 |
| Surplus reserves | 4,672,505,348.00 | 4,672,505,348.00 | 0.00 |
| Retained earnings | 28,961,389,145.22 | 28,961,389,145.22 | 0.00 |
| Total owners' equity attributable to owner of the Company | 44,904,033,876.83 | 44,904,033,876.83 | 0.00 |
| Minority equity | 568,825,008.31 | 568,825,008.31 | 0.00 |
| Total owners' equity | 45,472,858,885.14 | 45,472,858,885.14 | 0.00 |
| Total liabilities and owners' equity | 75,358,000,240.29 | 75,358,000,240.29 | 0.00 |
| Item | December 31st 2019 | January 1st 2020 | Adjustments |
| Current Assets: | |||
| Cash and bank balances | 16,851,590,525.05 | 16,851,590,525.05 | 0.00 |
| Notes receivable | 149,703,073.98 | 149,703,073.98 | 0.00 |
| Accounts receivable | 25,107,965,925.08 | 25,107,965,925.08 | 0.00 |
| Receivables for financing | 84,839,695.67 | 84,839,695.67 | 0.00 |
| Prepayments | 160,688,588.99 | 160,688,588.99 | 0.00 |
| Other receivables | 921,275,388.15 | 921,275,388.15 | 0.00 |
| Including: Interests receivable |
| Item | December 31st 2019 | January 1st 2020 | Adjustments |
| Dividends receivable | 2,550,000.00 | 2,550,000.00 | 0.00 |
| Inventories | 171,243,815.97 | 160,419,083.27 | -10,824,732.70 |
| Contract assets | 10,824,732.70 | 10,824,732.70 | |
| Non-current assets due within one year | 4,513,795.81 | 4,513,795.81 | 0.00 |
| Other current assets | 23,117,398.50 | 23,117,398.50 | 0.00 |
| Total Current Assets | 43,474,938,207.20 | 43,474,938,207.20 | 0.00 |
| Non-current Assets: | |||
| Long-term receivables | 681,568.43 | 681,568.43 | 0.00 |
| Long-term equity investment | 5,074,018,030.44 | 5,074,018,030.44 | 0.00 |
| Other non-current financial assets | 309,504,047.44 | 309,504,047.44 | 0.00 |
| Fixed assets | 2,831,295,145.61 | 2,831,295,145.61 | 0.00 |
| Construction in progress | 153,416,054.28 | 153,416,054.28 | 0.00 |
| Intangible assets | 188,362,883.75 | 188,362,883.75 | 0.00 |
| Long-term deferred expenses | 34,199,446.06 | 34,199,446.06 | 0.00 |
| Deferred tax assets | 126,357,792.34 | 126,357,792.34 | 0.00 |
| Other non-current assets | 21,619,464.07 | 21,619,464.07 | 0.00 |
| Total Non-current Assets | 8,739,454,432.42 | 8,739,454,432.42 | 0.00 |
| Total Assets | 52,214,392,639.62 | 52,214,392,639.62 | 0.00 |
| Current Liabilities: | |||
| Short-term borrowings | 2,001,781,388.89 | 2,001,781,388.89 | 0.00 |
| Accounts payable | 450,983,270.08 | 450,983,270.08 | 0.00 |
| Receipts in advance | 227,242,328.23 | -227,242,328.23 | |
| Contract liabilities | 227,242,328.23 | 227,242,328.23 | |
| Payroll payable | 1,564,304,003.49 | 1,564,304,003.49 | 0.00 |
| Taxes payable | 796,890,945.83 | 796,890,945.83 | 0.00 |
| Other payables | 533,325,191.05 | 533,325,191.05 | 0.00 |
| Including : Interests payable | |||
| Dividends payable | 105,679,385.24 | 105,679,385.24 | 0.00 |
| Non-current liabilities due within one year | 9,539,251.98 | 9,539,251.98 | 0.00 |
| Other current liabilities | 913,534,538.26 | 913,534,538.26 | 0.00 |
| Total Current Liabilities | 6,497,600,917.81 | 6,497,600,917.81 | 0.00 |
| Non-current Liabilities: | |||
| Long-term borrowings | 3,126,200,000.00 | 3,126,200,000.00 | 0.00 |
| Provisions | 62,863,096.83 | 62,863,096.83 | 0.00 |
| Deferred income | 162,018,728.45 | 162,018,728.45 | 0.00 |
| Other non-current liabilities | 1,234,739,326.10 | 1,234,739,326.10 | 0.00 |
| Item | December 31st 2019 | January 1st 2020 | Adjustments |
| Total non-current liabilities | 4,585,821,151.38 | 4,585,821,151.38 | 0.00 |
| Total liabilities | 11,083,422,069.19 | 11,083,422,069.19 | 0.00 |
| Owners’ Equity | |||
| Share capital | 9,345,010,696.00 | 9,345,010,696.00 | 0.00 |
| Capital reserves | 4,064,833,739.52 | 4,064,833,739.52 | 0.00 |
| Less: Treasury shares | 2,148,273,864.36 | 2,148,273,864.36 | 0.00 |
| Surplus reserves | 4,672,505,348.00 | 4,672,505,348.00 | 0.00 |
| Retained earnings | 25,196,894,651.27 | 25,196,894,651.27 | 0.00 |
| Total owners' equity | 41,130,970,570.43 | 41,130,970,570.43 | 0.00 |
| Total liabilities and owners' equity | 52,214,392,639.62 | 52,214,392,639.62 | 0.00 |
(2) Description of retrospective adjustment to prior comparative data for the implementation of the newrevenue standard since 2020.
√Applicable □Inapplicable
Consolidated Balance Sheet
Unit: RMB
| Book value presented according to former revenue standards on December 31st 2019 | Reclassification | Book value presented according to the New Revenue Standard on January 1st 2020 | |
| Accounts receivable (Note 1) | 21,307,927,200.28 | -34,962,617.72 | 21,272,964,582.56 |
| Inventories (Note 1) | 11,267,986,843.11 | -511,959,250.70 | 10,756,027,592.41 |
| Contract assets (Note 1) | 546,921,868.42 | 546,921,868.42 | |
| Other non-current assets- Completed but unsettled assets formed by construction contracts (Note 1) | 751,457,739.44 | -751,457,739.44 | |
| Other non-current assets-contract assets (Note 1) | 751,457,739.44 | 751,457,739.44 | |
| Receipts in advance (Note 2) | 1,020,989,460.61 | -1,020,989,460.61 | |
| Contract liabilities (Note 2) | 1,128,239,007.61 | 1,128,239,007.61 | |
| Deferred income (Note 2) | 333,589,831.30 | -107,249,547.00 | 226,340,284.30 |
Balance Sheet of the Parent Company
Unit: RMB
| Book value presented according to former revenue standards on December 31st 2019 | Reclassification | Book value presented according to the New Revenue Standards on January 1st 2020 | |
| Inventories (Note 1) | 171,243,815.97 | -10,824,732.70 | 160,419,083.27 |
| Contract assets (Note 1) | 10,824,732.70 | 10,824,732.70 | |
| Receipts in advance (Note 2) | 227,242,328.23 | -227,242,328.23 | |
| Contract liabilities (Note 2) | 227,242,328.23 | 227,242,328.23 |
4.3 Audit Report
Whether audit has been performed on this 2020 3
rdQuarter Report
□ Yes √ No
The Company’s 2020 3
rdQuarter report has not been audited
HANGZHOU HIKVISION DIGITAL TECHNOLOGY CO., LTD.Chairman: Chen ZongnianOctober 24
th2020
Note: This document is a translated version of the Chinese version 2020 Q3 Financial Report(“2020年第三季度报告全文”), and the published 2020 Q3 report in the Chinese version shallprevail. The complete published Chinese 2020 Q3 Financial Report may be obtained athttp://www.cninfo.com.cn.