Stock Code: 688007 Stock Short Name: Appotronics
Appotronics Corporation LimitedThe Third Quarter Report in 2020
CONTENT
I. Important Notes ............................................................................................ 3
II. Basic Information ....................................................................................... 3
III. Significant Events ...................................................................................... 8
IV. Annex ........................................................................................................ 16
I. Important Notes
1.1 The Board of Directors, the Board of Supervisors, directors, supervisors and senior officers of the
Company hereby warrant that the information contained in this Quarter Report is true, accurate andcomplete and this Quarter Report is free from any misrepresentation, misleading statement ormaterial omission, and agree to assume joint and several liability for this Quarter Report.
1.2 All directors of the Company attended the meeting of the Board of Directors for deliberation of this
Quarter Report.
1.3 BO Lianming, Principal of the Company; ZHAO Ruijin, the Person in Charge of the Accounting
Body; and WEI Yanlin, the Chief Accountant (the Person in Charge of Accounting) herebyrepresent that the financial statements contained in this Quarter Report are true, accurate andcomplete.
1.4 The Company's third quarter report has not been audited.
II. Basic Information
2.1 Major financial data
In RMB
At the end of thereporting period
At the end of the prior year
Changes at the end of thereporting period from theend of the prior year (%)Total assets 3,064,551,514.663,099,508,090.85-1.13Net assetsattributable toshareholders ofthe listedcompany
2,012,293,789.691,974,559,837.641.91From the beginning of
the year to the end ofthe reporting period
(Jan.-Sep.)
From the beginning of theprior year to the end of thereporting period of the prioryear (Jan.-Sep.)
Changes over the sameperiod of the prior year (%)Net cash flowfrom operatingactivities
113,316,743.2954,312,138.69108.64From the beginning of
the year to the end of
From the beginning of theprior year to the end of the
Changes over the sameperiod of the prior year (%)
the reporting period
(Jan.-Sep.)
reporting period of the prior
year (Jan.-Sep.)Operatingincome
1,238,398,708.871,351,772,312.07-8.39Net profitsattributable toshareholders ofthe listedcompany
44,138,225.23124,130,427.05-64.44Net profitsattributable toshareholders ofthe listedcompany afterdeduction ofnon-recurringprofits or losses
-11,822,043.7190,158,518.82-113.11
Weightedaverage return onnet assets (%)
2.2112.21Decrease by 10%Basic earningsper share(RMB/share)
0.100.31
-67.74Diluted earningsper share(RMB/share)
0.100.31
-67.74Proportion ofR&Dinvestments tothe operatingincome (%)
11.8310.16
Increase by 1.67%
Operating AnalysisIn the third quarter, the Company recovered nicely, represented by a positive year-on-year growth inoperating income and continuous improvement in profitability. Revenue in the third quarter amounted toRMB 522 million, achieving a positive growth, up 4.81% year on year and 27.68% month on month.During the reporting period, the net cash flow from operating activities was RMB 113 million, up
108.64% year on year.
1.The Company has demonstrated the strength of operations in fields of commercial education and
engineering since household business developed fast and cinema business recovered continuously. In thethird quarter, the Company’s revenue in non-cinema businesses was RMB 450 million overall, up 58.47%year on year and 21.71% month on month, in which household products achieved a revenue amounting toRMB 250 million, up 138.45% year on year. During the reporting period, the Company’s key subsidiary,Fengmi (Beijing) Technology Co., Ltd., as successfully introduced strategic investments, furtheraccelerated the outbreak of laser display technology applications and promoted the rapid development ofthe laser display industry. The Company’s cinema business revived strongly, as the revenue from the
cinema service recovering to 9.47%, 64.91% and 83.16% of that in the same period of last year in July,August and September respectively. With normal services available in cinemas, the Company hasresumed its cinema service businesses basically.
2. The Company has achieved milestones in patent operation, including authorizing patent licenses to
enterprises in intelligent projection industry with advanced and efficient core devices supplied, andconcluding strategic cooperation agreements with partners, in which the partners would continue topurchase core device products from the Company in next five years, playing important roles for thedevelopment of the Company’s core device business. These milestones are significant signs to evidencethe Company’s persistence on exploring operation mode of intellectual property rights and great efforts toprotect core technology achievements, and further confirm the Company’s leading role in original laserdisplay technology.
3. The Company has made breakthrough progress in new products. The 100-inch flexible Fresnel
anti-light screen firstly launched by the Company globally, has greatly enhanced the display effect byadopting the ALFA technology independently developed by the Company which was in advance in lightshaping and light absorption, and by practicing the micro-nano structure and nano-coating design.Comparing with traditional products, this product is significantly advantaged in costs and performance.Now, as the Company can produce this product in mass, consumers will enjoy portable large-screeninteractive entertainment experience due to its accessibility to various application scenarios.
4. Despite the impact of the COVID-19, the Company continues to make more investments in research
and development in emerging areas, and has established the AR Division for providing a broad platformfor the exploration of the “next curve” as technology innovation is the foot-stone of any enterprise. In thethird quarter, the Company’s R&D expenses were RMB 59,262,400, up 23.26% year on year. TheCompany has obtained 45 new domestic and foreign authorized patents, and applied 68 new domestic andforeign patents, including 55 domestic and foreign invention patents, and 31 new PCT internationalpatents.
Items and amounts of non-recurring profit or loss
√Applicable □ N/A
In RMBItem
Amount of thecurrent period
(Jul.-Sep.)
From the beginning of the
year to the end of thereporting period (Jan.-Sep.)
DescriptionProfit or loss on disposal ofnon-current assets
162,789.52208,729.85
Government grants recognized inprofit or loss other than grants whichare closely related to the Company’sbusiness and are either in fixedamounts or determined underquantitative methods in accordancewith the national standard
3,983,553.2733,835,240.75
Net profit or loss of subsidiaries fromthe beginning of the period up to thebusiness combination date
5,827,864.1417,483,592.42
recognized as a result of businesscombination of enterprises involvingentities under common controlProfit or loss on changes in the fairvalue of held-for-trading financialassets, derivative financial assets,held-for-trading financial liabilitiesand derivative financial liabilities andinvestment income on disposal ofheld-for-trading financial assets,derivative financial assets,held-for-trading financial liabilities,derivative financial liabilities andother debt investments, other thanthose used in the effective hedgingactivities relating to normal operatingbusiness
1,934,383.5612,759,177.27
Other non-operating income orexpenses other than the above
596,713.59230,307.70
Effects attributable to minorityinterests (net of tax)
-263,601.44-2,201,678.67
Income tax effects -841,371.79-6,355,100.38
Total 11,400,330.8555,960,268.94
2.2 Total number of shareholders, and the shareholding of top ten shareholders and top ten unrestricted
shareholders as of the end of reporting period
In ShareTotal number of shareholders (account) 16,247
The shareholding of top ten shareholders
Shareholder name(full name)
Number ofshares heldat the end ofthe period
Proportion (%)
Number ofrestrictedshares held
Number ofrestrictedsharesincludingshares leasedout forrefinancingbusiness
Descriptionof pledge orfreeze
Nature of
shareholdersIfpledgedorfrozen
NumberShenzhenAppotronicsHoldings Limited
79,762,679 17.6679,762,67979,762,679No 0
Non-state-ow
ned
corporationin China
SAIF IV HongKong (ChinaInvestments)Limited
58,707,119 13.0000No 0
OverseacorporationCITIC PEInvestment (HongKong) 2016Limited
41,774,562 9.2500No 0
OverseacorporationNantong StraitAppotronicsInvestmentPartnership (LP)
25,064,737 5.5500No 0 OtherShenzhen YuanshiLaser IndustrialInvestmentConsultingPartnership (LP)
24,139,500 5.3524,139,50024,139,500No 0 OtherShenzhenAppotronics DayeInvestmentPartnership (LP)
20,430,250 4.5220,430,25020,430,250No 0 OtherGREEN FUTUREHOLDINGSLIMITED
16,504,518 3.6600No 0
OverseacorporationShenzhenAppotronicsHongye InvestmentPartnership (LP)
15,662,374 3.4715,662,37415,662,374No 0 OtherShenzhen JinleijingInvestment LimitedPartnership (LP)
12,353,106 2.7412,353,10612,353,106No 0 OtherShenzhenChengguhui EquityInvestmentPartnership (LP)
10,443,640 2.3100No 0 OtherThe shareholding of top ten shareholders of non-restricted sharesShareholder name Number of unrestricted
circulating shares
Category and number of sharesCategory NumberSAIF IV Hong Kong (ChinaInvestments) Limited
58,707,119
RMB ordinary
shares
58,707,119CITIC PE Investment (Hong Kong)2016 Limited
41,774,562
RMB ordinaryshares
41,774,562
Nantong Strait AppotronicsInvestment Partnership (LP)
25,064,737
RMB ordinaryshares
25,064,737GREEN FUTURE HOLDINGSLIMITED
16,504,518
RMB ordinaryshares
16,504,518Shenzhen Chengguhui EquityInvestment Partnership (LP)
10,443,640
RMB ordinaryshares
10,443,640SMART TEAM INVESTMENTLIMITED
6,799,660
RMB ordinaryshares
6,799,660CAI Kunliang 6,106,243
RMB ordinaryshares
6,106,243ShenZhen Xiaoxiang Junyi AssetManagement Co., Ltd. -JunyiPrivate Placement No.1 PrivatelyOffered Investment Funds
5,849,872
RMB ordinaryshares
5,849,872ZHENG Yongshi 5,833,817
RMB ordinary
shares
5,833,817Shenzhen Liansong CapitalManagement Limited Partnership(LP)
5,833,817
RMB ordinaryshares
5,833,817Explanation for related-partyrelationship or concerted actionsamong aforementionedshareholders
As of the end of the reporting period, the Company has received nostatement from aforementioned shareholders to confirm there is arelated-party relationship or concerted action, except the concertedaction among Shenzhen Appotronics Holdings Limited, ShenzhenYuanshi Laser Industrial Investment Consulting Partnership (LP),Shenzhen Appotronics Daye Investment Partnership ( LP), ShenzhenAppotronics Hongye Investment Partnership (LP), and ShenzhenJinleijing Investment Limited Partnership (LP).Explanation on preferredshareholders of voting powerrecovered and shareholdingnumbers
N/A
2.3 Total number of preferred shareholders, and the shareholding of top ten preferred shareholders and
top ten unrestricted preferred shareholders as of the end of reporting period
□ Applicable √ N/A
III. Significant Events
3.1 Significant changes in the Company’s main accounting line items and financial highlights and
reasons thereof
√Applicable □ N/A
1. Changes in line items of the balance sheet and reasons thereof
In RMBItem September 30,
2020
December 31,
2019
Proportion ofchange (%)
Reason for change
Cash andbankbalances
483,912,743.79
875,858,784.5
-44.75
Primarily due to increasedoversea investments, morepayments used for purchase ofwealth management products,and repayment of certainborrowings in the currentperiodAccountsreceivable
99,577,072.66
176,035,155.2
-43.43
Primarily due to changes inproduct sales structure andmodel in the current reportingperiod as influenced byCOVID-19Receivables financing
12,362,600.00 1,980,500.00524.22
Primarily due to receipt of morebank acceptance bills in thecurrent periodInventories
477,741,934.81
299,966,170.3
59.27
Primarily due to increasedmaterial safety stock inresponse to COVID-19 andincreased stock of finishedgoods in response to growth inthe household businessContractassets
2,953,407.97 -N/A
Primarily due to theimplementation of the newrevenue standardLong-termreceivables
12,746,195.72 -N/A
Primarily due to recognition ofrevenue from sales ofproducts by installment with afinancing nature in the currentperiodLong-termequityinvestments
271,239,198.05
139,534,371.9
94.39
Primarily due to recognition ofinvestment in GDC andchanges in investment incomeConstruction inprogress
36,727,517.41 20,132,004.0782.43
Primarily due to the increasedinvestments in construction inprogress of the headquarterbuilding in the current periodNotes 116,480,308.72 37,335,841.79211.98Primarily due to more
payable payments made by bank
acceptance bills in the currentperiodContractliabilities
39,375,031.62 -N/A
Primarily due to theimplementation of the newrevenue standardEmployeebenefitspayable
18,451,259.89 50,586,932.71-63.53
Primarily due to the payment of2019 year-end bonus in thecurrent periodTaxespayable
15,633,660.66 42,924,647.79-63.58
Primarily due to the decreasedpayment of enterprise incometax and the decline in taxespayable in the current periodOtherpayables
33,606,944.36 14,364,076.43133.97
Primarily due to increasedgovernment grants payable tocooperative entities andborrowings made bysubsidiaries from minorityshareholdersNon-currentliabilitiesdue withinone year
144,256,472.46 64,968,795.02122.04
Primarily due to the increasedbalance on long-termborrowings due within one year
Othercurrentliabilities
3,481,306.95 -N/A
Primarily due to increasedoutput VAT to be recognizedin contractual liabilities causedby the implementation of thenew revenue standardLong-termborrowings
72,269,365.00
279,615,107.2
-74.15
Primarily due to increasedbalance on non-currentliabilities due within one yeartransferred from long-termborrowingsProvisions 36,085,966.30 27,072,676.4933.29
Primarily due to the provisionmade for three-guaranteeservices not yet incurredDeferredtaxliabilities
1,897,071.51 -N/A
Primarily due to deferred taxliabilities recognized forincome of installmentcollection
2. Changes in line items of the income statement and reasons thereof
In RMB
Item For the period
from January 1,
2020 toSeptember 30,2020
For the periodfrom January 1,2019 toSeptember 30,
2019
Proportio
n ofchange
(%)
Reason for change
Financialexpenses
9,040,635.11 24,776,270.90-63.51
Primarily due to decreased loaninterest expenses and increaseddeposit interest incomeOther income 38,477,908.99 21,665,297.8877.60
Primarily due to increasedgovernment grants recognized in thecurrent periodNon-operatingincome
876,830.38 3,054,939.31-71.30
Primarily due to receipt ofcompensations for litigationsettlement in the prior periodIncome taxexpenses
18,096,689.22 52,507,610.31-65.54
Primarily due to the decreasedcurrent tax expenses caused by lessprofits before tax in the currentperiod
Net profits 16,647,218.80 160,004,297.63-89.60
Primarily due to decreased grossprofits, since the Company becameless profitable as a result of decreasedcinema service businesses due toCOVID-19 and changes in theCompany’s product structure in thecurrent periodNet profitsattributable toshareholders ofthe ParentCompany
44,138,225.2 124,130,427.05-64.44
Primarily due to decreases in netprofitsProfits or lossesattributable tominorityshareholders
-27,491,006.43 35,873,870.58-176.63
Primarily due to losses fromsubsidiaries controlled by theCompany in the current periodOthercomprehensiveincome that canbe attributableto owners of theParentCompany, net oftax
2,205,949.42 5,330,380.33-58.62
Primarily due to changes in exchangedifferences on translation of financialstatements denominated in foreigncurrencies and other comprehensiveincome from translation of financialstatement of the investee caused byexchange fluctuationsOther 6,635,497.46 -N/APrimarily due to increases in other
comprehensiveincome that canbe reclassifiedto profit or lossunder the equitymethod
comprehensive income of theinvestee that can be recognized andtransferred to profit or loss in thecurrent periodExchangedifferences ontranslation offinancialstatementsdenominated inforeigncurrencies
-4,429,548.04 5,330,380.33-183.10
Primarily due to exchangefluctuations
Basic earningsper share
0.10 0.31-67.74
Primarily due to the decline inearnings per share caused bydecreased net profits attributable toshareholders of the listed Company
3. Changes in line items of the cash flow statement and reasons thereof
In RMB
Item
For the periodfrom January 1,
2020 to
September 30,
2020
For the periodfrom January 1,2019 toSeptember 30,
2019
Proportionof change
(%)
Reason for change
Net cash flowfrom operatingactivities
113,316,743.29 54,312,138.69108.64
Primarily due to the increased amountof collection from businesses,decreased expenditures underreasonable control, and decreasedpayments of taxes and leviesNet cash flowfrom financingactivities
-181,011,186.9
1,000,513,933.9
-118.09
Primarily due to no equity capitalcontributed to the Company in thecurrent period while a number of fundsraised in the prior period by IPO, andrepayment of bank borrowings insuccessionEffect offoreignexchange ratechanges on cashand cash
-3,483,946.39 3,876,393.28-189.88
Primarily due to exchange profit orloss and the exchange differences ontranslation of financial statementsdenominated in foreign currencies
3.2 Description of analysis on progresses of significant events and their influences and solutions
√Applicable □ N/A
(I) Litigation
1.Civil litigation and arbitration cases where the Company acted as a defendant
As of the disclosure date of the report, there have been 4 civil litigation cases where the Companywas a defendant, with details as below:
2.Civil litigation and arbitration cases where the Company acted as a plaintiff
As of the disclosure date of the report, there have been 45 civil litigation cases where the Companyacted as a plaintiff. In these cases, 43 cases were caused by infringement of invention patents with relevantclaims as follows: requiring the defendant to stop infringing the Company’s patents for invention anddestroy the equipment and mold, etc. used to produce the infringed products; requiring the defendant tocompensate the plaintiff with economic losses and reasonable expenses incurred for stopping theinfringement, and to bear the joint and several liability. No other credit and debt disputes were involved.And 2 cases were brought for correcting the inventors of the patents, with relevant claims of correcting LIYi and HU Fei as the inventors of the US Patent No. 9,024,241 and the China Patent No.ZL201610387831.8.
3. Progress on cases.
(1) In March 2020, the Company concluded the Mediation Agreement with Casio Computer Co.,
Ltd., pursuant to which both parties voluntarily reached a mediation on a number of litigation cases, and
equivalents
Case No.
Cause of
action
Plaintiff Defendant/AppelleePatents involved
Amountinvolved
Progress(2019) Yue 73Zhi Min ChuNo.662
Infringementof patent rightsof inventions
DeltaElectronics,Inc.
AppotronicsCorporation Limited;Shenzhen Futia
Suopuni Projectio
nn
Video Syste
nm
Commercial Firm
ZL201610387831.8
RMB16,145,300
Suspensionof hearing(2019) Jing 73Min ChuNo.1275
Infringement of patentrights ofinventions
DeltaElectronics,Inc.
Fengmi (Beijing)Technology Co.,Ltd.; AppotronicsCorporation Limited
ZL201410249663.7
RMB16,010,000
Pending(2019) Jing 73Min ChuNo.1276
ZL201610387831.8
RMB16,010,000
Pending(2019) Jing 73Min ChuNo.1278
ZL201010624724.5
RMB16,010,000
Pending
withdrew relevant cases respectively. As of the disclosure date of the report, the withdrawal of cases byboth parties has been completed.
(2) In August 2020, the Company concluded the Mediation Agreement with Chengdu Xgimi
Technology Co., Ltd., pursuant to which both parties voluntarily reached a mediation on a number oflitigation cases, and withdrew relevant cases respectively. As of the disclosure date of the report, thewithdrawal of cases by both parties has been completed.
(3) The Company has received the Civil Judgement ((2019) Jing 73 Min Chu No.1277) decided by
Beijing Intellectual Property Court in September 2020, in which Beijing Intellectual Property Courtrejected the litigation brought by the plaintiff (Delta) against the defendant (the Company) forinfringement of invention patents since the patents involved in this case was announced as invalidate byChina National Intellectual Property Administration.
(II) Invalidation plea
1. Invalidation plea cases where the Company acted as a patentee
As of the disclosure date of the report, there have been 2 invalidation plea cases where the Companyacted as a patentee, with details as below:
SerialNo.
Case code Current
Patentee
Patent No.involved
Petitioner forinvalidation
Remark
4W110045 Appotronics
CorporationLimited
ZL200880107739.5Delta
Electronics(Shanghai) Co.,Ltd.
China National Intellectual PropertyAdministration accepted theinvalidation plea. Details weredisclosed in 2020-007 TemporaryAnnouncement.
4W110680 Appotronics
CorporationLimited
ZL200880107739.5WEI Qun China National Intellectual Property
Administration accepted theinvalidation plea. Details weredisclosed in 2020-045 TemporaryAnnouncement.
2. Invalidation plea cases where the Company acted a petitioner
As of the disclosure date of the report, there have been 3 invalidation plea cases where the Companyacted as a petitioner, all of which are related to the invalidation plea against patents held by DeltaElectronics, Inc.
3.3 Commitments failed in completion as scheduled within the reporting period
□ Applicable √ N/A
3.4 Warning of the estimate that the accumulated net profits from the beginning of the year to the end of
the next reporting period will be negative or will change significantly comparing with the same
period of the previous year, and description of reasons
□Applicable √ N/A
Company
name
Appotronics CorporationLimitedLegalRepresentative
BO LianmingDateOctober 29, 2020
IV.Annex
4.1 Financial statements
Consolidated Balance Sheet
September 30, 2020Prepared by: Appotronics Corporation Limited
In RMB, UnauditedItem September 30, 2020 December 31, 2019Current Assets:
Cash and bank balances 483,912,743.79875,858,784.58Balances with clearing agenciesPlacements with banks and otherfinancial institutionsHeld-for-trading financial assets 664,000,000.00540,000,000.00Derivative financial assetsNotes receivable 3,578,388.844,042,559.63Accounts receivable 99,577,072.66176,035,155.24Receivables financing 12,362,600.001,980,500.00Prepayments 35,448,165.4235,070,999.13Premiums receivableAmounts receivable underreinsurance contractsReinsurer’s share of insurancecontract reservesOther receivables 12,796,292.059,618,750.08Including: Interest receivable
Dividends receivableFinancial assets purchased underresale agreementsInventories 477,741,934.81299,966,170.35Contract assets 2,953,407.97Held-for-sale assetsNon-current assets due within oneyear
Other current assets 35,010,163.9644,405,513.30Total Current Assets 1,827,380,769.501,986,978,432.31Non-current Assets:
Loans and advancesDebt investmentsOther debt investmentsLong-term receivables 12,746,195.72
Long-term equity investments 271,239,198.05139,534,371.94Other equity instrumentinvestments
11,975,419.3811,975,419.38Other non-current financial assetsInvestment propertiesFixed assets 450,146,136.15471,204,340.95Construction in progress 36,727,517.4120,132,004.07Bearer biological assetsOil and gas assetsUse right assetsIntangible assets 324,511,996.30332,331,324.07Development expenditureGoodwillLong-term prepaid expenses 13,383,417.4016,908,070.34Deferred tax assets 108,168,696.46109,023,941.85Other non-current assets 8,272,168.2911,420,185.94Total Non-current Assets 1,237,170,745.161,112,529,658.54Total assets 3,064,551,514.663,099,508,090.85Current Liabilities:
Short-term borrowings 54,021,724.0376,765,319.05Loans from the central bankTaking from banks and otherfinancial institutionsHeld-for-trading financialliabilitiesDerivative financial liabilitiesNotes payable 116,480,308.7237,335,841.79Accounts payable 201,363,644.22176,624,445.46Receipts in advance 171,459,573.95184,444,643.33Contract liabilities 39,375,031.62Financial assets sold underrepurchase agreementsCustomer deposits and depositsfrom banks and other financialinstitutionsFunds from securities tradingagencyFunds from underwritingsecurities agency
Employee benefits payable 18,451,259.8950,586,932.71Taxes payable 15,633,660.6642,924,647.79Other payables 33,606,944.3614,364,076.43
Including: Interest payable
Dividends payableFees and commissions payableAmounts payable underreinsurance contractsHeld-for-sale liabilitiesNon-current liabilities due withinone year
144,256,472.4664,968,795.02Other current liabilities 3,481,306.95
Total Current Liabilities 798,129,926.86648,014,701.58Non-current Liabilities:
Insurance contract reservesLong-term borrowings 72,269,365.00279,615,107.27Bonds payableIncluding: Preferred shares
Perpetual bondsLeasing liabilitiesLong-term payables 3,405,050.003,488,100.00Long-term employee benefitspayable
Provisions 36,085,966.3027,072,676.49Deferred income 16,669,272.1617,108,361.69Deferred tax liabilities 1,897,071.51Other non-current liabilitiesTotal Non-current Liabilities 130,326,724.97327,284,245.45
Total Liabilities 928,456,651.83975,298,947.03Owners’ (or Shareholders’)equity:
Paid-in capital (or share capital) 451,554,411.00451,554,411.00Other equity instrumentsIncluding: Preferred shares
Perpetual bondsCapital reserve 1,231,919,941.731,207,942,318.37Less: Treasury sharesOther comprehensive income 5,493,013.273,287,063.85Special reserveSurplus reserve 22,800,224.1322,800,224.13General risk reserveRetained profits 300,526,199.56288,975,820.29Total Owners’(or Shareholders’)Equity Attributable to Owners of theParent Company
2,012,293,789.691,974,559,837.64
Minority interests 123,801,073.14149,649,306.18Total Owners’ (orShareholders’) Equity
2,136,094,862.832,124,209,143.82Total Liabilities and Owners’(or Shareholders’) Equity
3,064,551,514.663,099,508,090.85
Legal Representative: Person in Charge of the Accounting Body: Chief Accountant:
BO Lianming ZHAO Ruijin WEI Yanlin
Balance Sheet of the Parent Company
September 30, 2020Prepared by: Appotronics Corporation Limited
In RMB, UnauditedItem September 30, 2020 December 31, 2019Current Assets:
Cash and bank balances 216,612,378.99570,479,390.49Held-for-trading financial assets 664,000,000.00540,000,000.00Derivative financial assetsNotes receivable 2,092,388.843,542,559.63Accounts receivable 463,796,378.00299,315,776.44Receivables financing 963,600.00442,500.00Prepayments 8,721,611.476,410,257.48Other receivables 66,009,326.5567,227,575.21Including: Interest receivable
Dividends receivableInventories 181,941,472.22135,617,379.22Contract assets 2,922,380.97Held-for-sale assetsNon-current assets due within oneyearOther current assets 865,332.7312,280,164.39Total Current Assets 1,607,924,869.771,635,315,602.86Non-current Assets:
Debt investmentsOther debt investmentsLong-term receivables 12,746,195.72Long-term equity investments 396,013,887.97257,795,276.13Other equity instrumentinvestments
7,075,419.387,075,419.38Other non-current financial assetsInvestment properties
Fixed assets 56,765,974.5160,391,512.92Construction in progress 25,048,282.581,385,496.59Bearer biological assetsOil and gas assetsUse right assetsIntangible assets 323,310,924.93330,796,423.87Development expenditureGoodwillLong-term prepaid expenses 10,805,041.0512,771,126.83Deferred tax assets 10,644,168.169,545,438.20Other non-current assets 8,019,915.946,744,453.85
Total Non-current Assets 850,429,810.24686,505,147.77Total assets 2,458,354,680.012,321,820,750.63Current Liabilities:
Short-term borrowings 51,888,902.8610,217,738.36Held-for-trading financialliabilitiesDerivative financial liabilitiesNotes payable 29,637,714.7837,335,841.79Accounts payable 202,684,447.31162,596,838.45Receipts in advance 3,626,119.8411,116,659.11Contract liabilities 18,804,754.20Employee benefits payable 10,011,782.3526,985,668.92Taxes payable 9,235,517.951,534,242.70Other payables 39,949,486.9042,599,703.36Including: Interest payable
Dividends payableHeld-for-sale liabilitiesNon-current liabilities due withinone yearOther current liabilities 1,111,100.27
Total Current Liabilities 366,949,826.46292,386,692.69Non-current Liabilities:
Long-term borrowingsBonds payableIncluding: Preferred shares
Perpetual bondsLeasing liabilitiesLong-term payables 3,405,050.003,488,100.00Long-term employee benefitspayableProvisions 20,322,447.2114,631,273.00
Deferred income 14,116,988.2615,724,174.30Deferred tax liabilities 1,897,071.51Other non-current liabilitiesTotal Non-current Liabilities 39,741,556.9833,843,547.30Total Liabilities 406,691,383.44326,230,239.99Owners’ (or Shareholders’)equity:
Paid-in capital (or share capital) 451,554,411.00451,554,411.00Other equity instrumentsIncluding: Preferred shares
Perpetual bondsCapital reserve 1,337,176,090.851,310,939,867.82Less: Treasury sharesOther comprehensive incomeSpecial reserveSurplus reserve 21,522,683.4021,522,683.40Retained profits 241,410,111.32211,573,548.42
Total Owners’ (orShareholders’) Equity
2,051,663,296.571,995,590,510.64Total Liabilities and Owners’(or Shareholders’) Equity
2,458,354,680.012,321,820,750.63
Legal Representative: Person in Charge of the Accounting Body: Chief Accountant:
BO Lianming ZHAO Ruijin WEI Yanlin
Consolidated Income StatementFor the period from January 1, 2020 to September 30, 2020Prepared by: Appotronics Corporation Limited
In RMB, UnauditedItem
The thirdquarter in 2020
(Jul.-Sep.)
The thirdquarter in 2019
(Jul.-Sep.)
First threequarters in 2020
(Jan.-Sep.)
First threequarters in 2019
(Jan.-Sep.)I. Total operating income 522,373,501.53498,415,347.231,238,398,708.87 1,351,772,312.07Including: Operating income 522,373,501.53498,415,347.231,238,398,708.87 1,351,772,312.07
Interest incomePremiums earnedFee and commissionincome
II. Total operating costs 492,353,168.32411,966,261.961,248,451,362.20 1,154,091,473.61Including: Operating costs 362,665,544.45284,068,967.95892,453,334.39 795,826,871.07
Interest expenses
Fee and commissionexpenses
Surrenders
Claims and policyholderbenefits (net of amountsrecoverable from reinsurers)
Net withdrawal ofinsurance contract reserves
Insurance policyholderdividends
Expenses for reinsuranceaccepted
Taxes and levies 1,875,651.831,366,675.044,205,362.39 5,703,626.02
Selling expenses 32,244,998.4140,911,236.2583,078,892.91 101,496,726.09
Administrative expenses 35,301,623.4730,123,132.33113,115,280.56 88,900,870.55
R&D expenses 59,262,406.0948,077,619.18146,557,856.84 137,387,108.98
Financial expenses 1,002,944.077,418,631.219,040,635.11 24,776,270.90
Including: Interestexpense
4,581,708.839,497,830.7416,194,534.70 27,765,589.66Interest income 2,747,375.10930,400.887,366,346.43 3,917,258.16Add: other income 5,555,874.024,248,188.7738,477,908.99 21,665,297.88
Investment income (loss isindicated by “-”)
883,334.961,336,694.8812,610,023.47 -2,123,921.67
Including: Income frominvestments in associates and jointventures
-1,051,048.60590,426.97-149,153.80 -2,867,879.34Gains fromderecognition of financial assetsat amortized assets
Foreign exchange gains(loss is indicated by “-”)
Gains from net exposurehedges (loss is indicated by “-”)
Gains from changes in fairvalues (loss is indicated by “-”)
Losses of creditimpairment (loss is indicated by“-”)
28,945.51-1,048,679.972,199,052.47 -1,810,440.85
Impairment losses ofassets (loss is indicated by “-”)
3,180,219.96-3,528,161.53-8,929,461.13 -4,907,457.63
Gains from disposal ofassets (loss is indicated by “-”)
266,622.24416,243.15III. Operating profit (loss is 39,935,329.9087,457,127.4234,721,113.62 210,504,316.19
indicated by “-”)
Add: Non-operating income 606,214.90724,763.47876,830.38 3,054,939.31Less: Non-operating expenses 113,334.0316,012.88854,035.98 1,047,347.56IV. Total profits (total losses areindicated by “-”)
40,428,210.7788,165,878.0134,743,908.02 212,511,907.94Less: Income tax expenses 15,402,747.8019,367,396.5718,096,689.22 52,507,610.31V. Net profits (net losses areindicated by “-”)
25,025,462.9768,798,481.4416,647,218.80 160,004,297.63(I) Categorized by the continuity of operation
1. Net profits from
continuing operations (net lossesare indicated by “-”)
25,025,462.9768,798,481.4416,647,218.80 160,004,297.63
2. Net profits from
discontinued operations (netlosses are indicated by “-”)
(II) Categorized by the ownership
1.Net profits attributable to
shareholders of the ParentCompany (net losses are indicatedby “-”)
29,810,782.2757,550,852.9944,138,225.23 124,130,427.05
2. Profits or losses
attributable to minorityshareholders (net losses areindicated by “-”)
-4,785,319.3011,247,628.45-27,491,006.43 35,873,870.58VI. Other comprehensive income,net of tax
1,196,980.135,961,476.672,236,630.70 5,526,550.64(I) Other comprehensiveincome that can be attributable toowners of the Parent Company,net of tax
1,192,134.225,763,041.542,205,949.42 5,330,380.33
1. Other comprehensive
income that cannot be reclassifiedsubsequently to profit or loss
(1) Changes from
remeasurement of defined benefitplans
(2) Other comprehensive
income that cannot be reclassifiedto profit or loss under the equitymethod
(3) Changes in fair value of
investments in other equityinstruments
(4) Changes in fair value of
enterprises’ own credit risks
2.Other comprehensive
income that will be reclassified toprofit or loss
1,192,134.225,763,041.542,205,949.42 5,330,380.33
(1) Other comprehensive
income that can be reclassified toprofit or loss under the equitymethod
6,771,203.776,635,497.46
(2) Changes in fair value of
other debt investments
(3) Amount of financial assets
reclassified to othercomprehensive income
(4) Provision for credit
impairment of other debtinvestments
(5) Reserve for cash flow
hedges
(6) Exchange differences on
translation of financial statementsdenominated in foreign currencies
-5,579,069.555,763,041.54-4,429,548.04 5,330,380.33
(7) Others(II) Other comprehensiveincome that can be attributable tominority shareholders, net of tax
4,845.91198,435.1330,681.28 196,170.31VII. Total comprehensive income 26,222,443.1074,759,958.1118,883,849.50 165,530,848.27
(I) Total comprehensiveincome that can be attributable toowners of the Parent Company
31,002,916.4963,313,894.5346,344,174.65 129,460,807.38
(II) Total comprehensiveincome that can be attributable tominority shareholders
-4,780,473.3911,446,063.58-27,460,325.15 36,070,040.89VIII. Earnings per share:
(I) Basic earnings per share(RMB/share)
0.070.130.10 0.31
(II) Diluted earnings per share(RMB/share)
0.070.130.10 0.31
For business combination involving entities under common control occurred during the period, net profitof the acquiree generated before the business combination is nil, and net profit of the acquiree generated inprior period is nil.
Legal Representative: Person in Charge of the Accounting Body: Chief Accountant:
BO Lianming ZHAO Ruijin WEI Yanlin
Income Statement of the Parent CompanyFor the period from January 1, 2020 to September 30, 2020Prepared by: Appotronics Corporation Limited
In RMB, UnauditedItem
The thirdquarter in 2020(Jul.-Sep.)
The thirdquarter in 2019
(Jul.-Sep.)
First threequarters in2020(Jan.-Sep.)
First threequarters in2019 (Jan.-Sep.)I. Operating income 321,136,628.42307,161,249.72706,036,006.83 734,845,754.76Less: Operating costs 210,335,903.75210,261,659.31466,996,690.72 500,905,328.28Taxes and levies 1,391,857.62902,012.242,743,998.63 3,973,767.05Selling expenses 18,123,753.8918,079,644.2645,650,045.32 58,924,010.31Administrativeexpenses
24,400,714.2320,134,847.7980,711,100.08 59,260,571.86R&D expenses 26,576,762.2628,831,641.7077,662,616.80 84,997,067.84Financialexpenses
-4,809,654.16-2,880,026.75-11,027,775.23 -3,006,419.68Including:
Interest expense
283,643.732,335,383.75709,466.06 4,389,365.84Interestincome
4,571,775.392,935,596.6513,654,169.54 7,069,117.92Add: other income 4,129,368.65607,742.7830,529,269.12 10,475,701.91Investmentincome (loss is indicatedby “-”)
1,934,383.56743,957.6712,759,177.27 679,415.34Including:
Income frominvestments in associatesand joint ventures
Gains fromderecognition offinancial assets atamortized assets
Gains from netexposure hedges (loss isindicated by “-”)
Gains fromchanges in fair values
(loss is indicated by “-”)
Losses of creditimpairment (loss isindicated by “-”)
-2,016,863.43-871,600.60-2,161,444.58 -12,156.94
Impairmentlosses of assets (loss isindicated by “-”)
3,899,393.36-4,198,384.12-6,700,815.24 -5,699,937.03
Gains fromdisposal of assets (loss isindicated by “-”)
II. Operating profit (lossis indicated by “-”)
53,063,572.9728,113,186.9077,725,517.08 35,234,452.38Add: Non-operatingincome
412,668.90724,525.69665,988.51 3,050,319.64Less: Non-operatingexpenses
103,832.722,883.78454,220.06 842,320.05III. Total profits (totallosses are indicated by“-”)
53,372,409.1528,834,828.8177,937,285.53 37,442,451.97Less: Income taxexpenses
9,475,176.744,351,071.4914,234,141.80 5,609,048.39IV. Net profits (net lossesare indicated by “-”)
43,897,232.4124,483,757.3263,703,143.73 31,833,403.58(I) Net profits fromcontinuing operations(net losses are indicatedby “-”)
43,897,232.4124,483,757.3263,703,143.73 31,833,403.58(II) Net profits fromdiscontinued operations(net losses are indicatedby “-”)
V. Other comprehensiveincome, net of tax
(I) Othercomprehensive incomethat cannot bereclassified subsequentlyto profit or loss
1.Changes from
remeasurement ofdefined benefit plans
2. Other
comprehensive income
that cannot bereclassified to profit orloss under the equitymethod
3.Changes in fair
value of investments inother equity instruments
4.Changes in fair
value of enterprises’own credit risks
(II) Othercomprehensive incomethat will be reclassifiedto profit or loss
1. Other
comprehensive incomethat can be reclassified toprofit or loss under theequity method
2. Changes in fair
value of other debtinvestments
3. Amount of
financial assetsreclassified to othercomprehensive income
4.Provision for
credit impairment ofother debt investments
5. Reserve for cash
flow hedges
6. Exchange
differences ontranslation of financialstatements denominatedin foreign currencies
7. OthersVI. Total comprehensiveincome
43,897,232.4124,483,757.3263,703,143.73 31,833,403.58VII. Earnings per share:
(I) Basic earningsper share (RMB/share)
0.100.060.14 0.08
(II) Diluted earnings 0.100.060.14 0.08
per share (RMB/share)
Legal Representative: Person in Charge of the Accounting Body: Chief Accountant:
BO Lianming ZHAO Ruijin WEI Yanlin
Consolidated Cash Flow StatementFor the period from January 1, 2020 to September 30, 2020Prepared by: Appotronics Corporation Limited
In RMB, UnauditedItem
First three quarters in 2020
(Jan.-Sep.)
First three quarters in 2019
(Jan.-Sep.)I. Cash Flows from OperatingActivities:
Cash receipts from the sale of goodsand the rendering of services
1,457,706,115.991,524,765,547.43
Net increase in customer deposits anddeposits from banks and other financialinstitutions
Net increase in loans from the centralbank
Net increase in taking from banks andother financial institutions
Cash receipts from premiums underdirect insurance contracts
Net cash receipts from reinsurancebusiness
Net cash receipts frompolicyholders’ deposits and investmentcontract liabilities
Cash receipts from interest, fees andcommissions
Net increase in taking from banks
Net increase in financial assets soldunder repurchase arrangements
Net cash received from securitiestrading agencies
Receipts of tax refunds 5,764,495.553,992,454.55
Other cash receipts relating tooperating activities
131,484,147.03
60,269,533.11Sub-total of cash inflows from 1,594,954,758.571,589,027,535.09
operating activitiesCash payments for goods purchasedand services received
1,026,554,782.15 1,000,432,638.11Net increase in loans and advances tocustomersNet increase in balance with thecentral bank and due from banks andother financial institutionsCash payments for claims andpolicyholders’ benefits under directinsurance contractsNet increase in placements with banksand other financial institutionsCash payments for interest, fees andcommissionsCash payments for insurancepolicyholder dividends
Cash payments to and on behalf ofemployees
224,599,412.16212,824,743.40
Payments of various types of taxes 55,076,208.73122,094,156.48
Other cash payments relating tooperating activities
175,407,612.24199,363,858.41Sub-total of cash outflows fromoperating activities
1,481,638,015.281,534,715,396.40Net cash flow from operatingactivities
113,316,743.2954,312,138.69II. Cash Flows from InvestingActivities:
Cash receipts from disposals andrecovery of investments
1,810,000,000.00193,700,000.00
Cash receipts from investment income12,759,177.27743,957.67
Net cash receipts from disposals offixed assets, intangible assets and otherlong-term assets
3,600.004,467.91
Net cash receipts from disposals ofsubsidiaries and other business units
Other cash receipts relating toinvesting activitiesSub-total of cash inflows frominvesting activities
1,822,762,777.27194,448,425.58
Cash payments to acquire or constructfixed assets, intangible assets and otherlong-term assets
44,898,632.06214,874,928.72
Cash payments to acquire investments2,062,213,540.001,049,000,000.00Net increase in pledged loansreceivablesNet cash payments for acquisitions ofsubsidiaries and other business unitsOther cash payments relating toinvesting activities
Sub-total of cash outflows frominvesting activities
2,107,112,172.061,263,874,928.72Net cash flow from investingactivities
-284,349,394.79-1,069,426,503.14III. Cash Flows from FinancingActivities:
Cash receipts from capitalcontributions
1,190,000,000.00
Including: cash receipts from capitalcontributions from minority shareholdersof subsidiaries
Cash receipts from borrowings 98,922,683.45339,450,000.00
Other cash receipts relating tofinancing activities
19,320,000.00Sub-total of cash inflows fromfinancing activities
118,242,683.451,529,450,000.00Cash repayments of borrowings 248,568,075.70390,125,379.80Cash payments for distribution ofdividends or profits or settlement ofinterest expenses
50,497,914.2926,476,981.84Including: payments for distribution ofdividends or profits to minorityshareholders of subsidiariesOther cash payments relating tofinancing activities
187,880.36112,333,704.41Sub-total of cash outflows fromfinancing activities
299,253,870.35528,936,066.05Net cash flow from financingactivities
-181,011,186.901,000,513,933.95IV. Effect of Foreign Exchange RateChanges on Cash and CashEquivalents
-3,483,946.393,876,393.28V. Net Increase in Cash and CashEquivalents
-355,527,784.79
-10,724,037.22Add: Opening balance of cash andcash equivalents
829,789,487.86
472,508,550.40
VI. Closing Balance of Cash and CashEquivalents
474,261,703.07461,784,513.18
Legal Representative: Person in Charge of the Accounting Body: Chief Accountant:
BO Lianming ZHAO Ruijin WEI Yanlin
Cash Flow Statement of the Parent CompanyFor the period from January 1, 2020 to September 30, 2020Prepared by: Appotronics Corporation Limited
In RMB, UnauditedItem
First three quarters in 2020
(Jan.-Sep.)
First three quarters in2019 (Jan.-Sep.)I. Cash Flows from OperatingActivities:
Cash receipts from the sale of goodsand the rendering of services
623,172,212.09759,373,200.75
Receipts of tax refunds 3,108,523.77
Other cash receipts relating tooperating activities
185,835,186.09189,854,012.75Sub-total of cash inflows fromoperating activities
812,115,921.95949,227,213.50Cash payments for goods purchasedand services received
538,963,144.43478,755,326.24Cash payments to and on behalf ofemployees
135,740,648.27134,584,562.50Payments of various types of taxes 12,715,535.0345,613,336.41Other cash payments relating tooperating activities
135,880,309.94292,741,755.03Sub-total of cash outflows fromoperating activities
823,299,637.67951,694,980.18Net cash flow from operatingactivities
-11,183,715.72-2,467,766.68II. Cash Flows from InvestingActivities:
Cash receipts from disposals andrecovery of investments
1,810,000,000.00194,635,457.67
Cash receipts from investment income12,759,177.27743,957.67
Net cash receipts from disposals offixed assets, intangible assets and otherlong-term assets
3,600.00
Net cash receipts from disposals ofsubsidiaries and other business unitsOther cash receipts relating toinvesting activities
283,360.00Sub-total of cash inflows frominvesting activities
1,823,046,137.27195,379,415.34Cash payments to acquire or constructfixed assets, intangible assets and otherlong-term assets
34,717,483.03206,491,618.76Cash payments to acquire investments2,065,213,540.001,084,364,000.00Net cash payments for acquisitions ofsubsidiaries and other business unitsOther cash payments relating toinvesting activities
33,440,160.00Sub-total of cash outflows frominvesting activities
2,133,371,183.031,290,855,618.76Net cash flow from investingactivities
-310,325,045.76-1,095,476,203.42III. Cash Flows from FinancingActivities:
Cash receipts from capitalcontributions
1,190,000,000.00
Cash receipts from borrowings 52,241,387.30132,000,000.00
Other cash receipts relating tofinancing activitiesSub-total of cash inflows fromfinancing activities
52,241,387.301,322,000,000.00
Cash repayments of borrowings 10,000,000.00184,440,000.00
Cash payments for distribution ofdividends or profits or settlement ofinterest expenses
34,626,843.264,661,973.39
Other cash payments relating tofinancing activities
22,587.36112,333,704.41Sub-total of cash outflows fromfinancing activities
44,649,430.62301,435,677.80Net cash flow from financingactivities
7,591,956.681,020,564,322.20IV. Effect of Foreign Exchange RateChanges on Cash and CashEquivalents
-34,785.591,707,762.33V. Net Increase in Cash and CashEquivalents
-313,951,590.39-75,671,885.57Add: Opening balance of cash and 524,648,100.62295,049,085.02
cash equivalentsVI. Closing Balance of Cash and CashEquivalents
210,696,510.23219,377,199.45
Legal Representative: Person in Charge of the Accounting Body: Chief Accountant:
BO Lianming ZHAO Ruijin WEI Yanlin
4.2 Description of adjustments in opening balances of line items in financial statements of the year due to
the implementation of new revenue standard and new lease standard since 2020
√Applicable □ N/A
Consolidated Balance Sheet
In RMBItem December 31, 2019 January 1, 2020 Adjusted amountCurrent Assets:
Cash and bank balances 875,858,784.58875,858,784.58Balances with clearing agenciesPlacements with banks and otherfinancial institutions
Held-for-trading financial assets 540,000,000.00540,000,000.00Derivative financial assetsNotes receivable 4,042,559.634,042,559.63Accounts receivable 176,035,155.24191,622,712.01 15,587,556.77Receivables financing 1,980,500.001,980,500.00Prepayments 35,070,999.1335,070,999.13Premiums receivableAmounts receivable underreinsurance contracts
Reinsurer’s share of insurancecontract reserves
Other receivables 9,618,750.089,618,750.08
Including: Interest receivable
Dividends receivable
Financial assets purchased underresale agreements
Inventories 299,966,170.35283,610,860.13 -16,355,310.22
Contract assets 3,740,605.96 3,740,605.96
Held-for-sale assets
Non-current assets due withinone year
Other current assets 44,405,513.3042,064,888.10 -2,340,625.20
Total Current Assets 1,986,978,432.311,987,610,659.62 632,227.31Non-current Assets:
Loans and advancesDebt investmentsOther debt investmentsLong-term receivablesLong-term equity investments 139,534,371.94139,534,371.94Other equity instrumentinvestments
11,975,419.3811,975,419.38Other non-current financialassets
Investment propertiesFixed assets 471,204,340.95471,204,340.95Construction in progress 20,132,004.0720,132,004.07Bearer biological assetsOil and gas assetsUse right assetsIntangible assets 332,331,324.07332,331,324.07Development expenditureGoodwillLong-term prepaid expenses 16,908,070.3416,908,070.34Deferred tax assets 109,023,941.85109,023,941.85Other non-current assets 11,420,185.9411,420,185.94Total Non-current Assets 1,112,529,658.541,112,529,658.54Total assets 3,099,508,090.853,100,140,318.16 632,227.31Current Liabilities:
Short-term borrowings 76,765,319.0576,765,319.05Loans from the central bankTaking from banks and otherfinancial institutions
Held-for-trading financialliabilities
Derivative financial liabilities
Notes payable 37,335,841.7937,335,841.79
Accounts payable 176,624,445.46176,624,445.46
Receipts in advance 184,444,643.33167,534,200.30 -16,910,443.03
Contract liabilities 15,777,305.81 15,777,305.81
Financial assets sold underrepurchase agreements
Customer deposits and depositsfrom banks and other financialinstitutions
Funds from securities trading
agencyFunds from underwritingsecurities agency
Employee benefits payable 50,586,932.7150,586,932.71Taxes payable 42,924,647.7942,924,647.79Other payables 14,364,076.4314,364,076.43Including: Interest payable
Dividends payableFees and commissions payableAmounts payable underreinsurance contracts
Held-for-sale liabilitiesNon-current liabilities duewithin one year
64,968,795.0264,968,795.02Other current liabilities 1,133,137.22 1,133,137.22Total Current Liabilities 648,014,701.58648,014,701.58Non-current Liabilities:
Insurance contract reservesLong-term borrowings 279,615,107.27279,615,107.27Bonds payableIncluding: Preferred shares
Perpetual bondsLeasing liabilitiesLong-term payables 3,488,100.003,488,100.00Long-term employee benefitspayable
Provisions 27,072,676.4927,072,676.49Deferred income 17,108,361.6917,108,361.69Deferred tax liabilitiesOther non-current liabilitiesTotal Non-current Liabilities 327,284,245.45327,284,245.45Total Liabilities 975,298,947.03975,298,947.03Owners’ (or Shareholders’) equity:
Paid-in capital (or share capital) 451,554,411.00451,554,411.00Other equity instrumentsIncluding: Preferred shares
Perpetual bondsCapital reserve 1,207,942,318.371,207,942,318.37Less: Treasury sharesOther comprehensive income 3,287,063.853,287,063.85Special reserveSurplus reserve 22,800,224.1322,800,224.13
General risk reserveRetained profits 288,975,820.29290,254,555.17 1,278,734.88Total Owners’ (orShareholders’) Equity Attributableto Owners of the Parent Company
1,974,559,837.641,975,838,572.52 1,278,734.88Minority interests 149,649,306.18149,002,798.61 -646,507.57Total Owners’ (orShareholders’) Equity
2,124,209,143.822,124,841,371.13 632,227.31Total Liabilities andOwners’ (or Shareholders’) Equity
3,099,508,090.853,100,140,318.16 632,227.31
Description of adjustments on each item:
√Applicable □ N/A
In accordance with the Accounting Standards for Business Enterprises No.14- Revenue (Cai Kuai[2017] No. 2) issued by the Ministry of Finance on July 5, 2017, for enterprises listed in domestic andoversea stock exchange concurrently and enterprises listed overseas with the financial statements preparedunder international financial reporting standards or accounting standards for business enterprises, the newrevenue standard shall be implemented from January 1, 2018; and for other enterprises listed domestically,the revenue standard shall be implemented from January 1, 2020. As a domestic listed company, theCompany adopted the new revenue standard as at January 1, 2020 on the basis of making adjustments onthe opening balance of relevant items recognized in the financial statements of 2020 with the data incomparable period unadjusted, according to which: (1) the goods payments received in advanceoriginally qualified for conditions of “Receipts in advance” were charged to the line item of “Contractliabilities”; (2) the rights of the Company for collecting the considerations for goods that have beentransferred to customers, which depend on factors other than the lapse of time, were charged to the lineitem of “Contract assets”; (3) for goods sold under the model of “profit distribution”, income fromcustomers received but not recognized were changed as it satisfied the condition of revenue recognitionunder the new revenue standard.
Balance Sheet of the Parent Company
In RMBItem December 31, 2019 January 1, 2020 Adjusted amountCurrent Assets:
Cash and bank balances 570,479,390.49570,479,390.49Held-for-trading financialassets
540,000,000.00540,000,000.00Derivative financial assetsNotes receivable 3,542,559.633,542,559.63Accounts receivable 299,315,776.44295,616,359.63 -3,699,416.81Receivables financing 442,500.00442,500.00Prepayments 6,410,257.486,410,257.48Other receivables 67,227,575.2167,227,575.21Including: Interest receivable
Dividends receivableInventories 135,617,379.22135,617,379.22Contract assets 3,699,416.81 3,699,416.81Held-for-sale assetsNon-current assets due withinone year
Other current assets 12,280,164.3912,280,164.39Total Current Assets 1,635,315,602.861,635,315,602.86Non-current Assets:
Debt investmentsOther debt investmentsLong-term receivablesLong-term equity investments 257,795,276.13257,795,276.13Other equity instrumentinvestments
7,075,419.387,075,419.38Other non-current financialassets
Investment propertiesFixed assets 60,391,512.9260,391,512.92Construction in progress 1,385,496.591,385,496.59Bearer biological assetsOil and gas assetsUse right assetsIntangible assets 330,796,423.87330,796,423.87Development expenditureGoodwillLong-term prepaid expenses 12,771,126.8312,771,126.83Deferred tax assets 9,545,438.209,545,438.20Other non-current assets 6,744,453.856,744,453.85Total Non-current Assets 686,505,147.77686,505,147.77Total assets 2,321,820,750.632,321,820,750.63Current Liabilities:
Short-term borrowings 10,217,738.3610,217,738.36
Held-for-trading financialliabilities
Derivative financial liabilities
Notes payable 37,335,841.7937,335,841.79
Accounts payable 162,596,838.45162,596,838.45
Receipts in advance 11,116,659.114,387,326.61 -6,729,332.50
Contract liabilities 6,485,831.14 6,485,831.14
Employee benefits payable 26,985,668.9226,985,668.92
Taxes payable 1,534,242.701,534,242.70
Other payables 42,599,703.3642,599,703.36Including: Interest payable
Dividends payableHeld-for-sale liabilitiesNon-current liabilities duewithin one year
Other current liabilities 243,501.36 243,501.36Total Current Liabilities 292,386,692.69292,386,692.69Non-current Liabilities:
Long-term borrowingsBonds payableIncluding: Preferred shares
Perpetual bondsLeasing liabilitiesLong-term payables 3,488,100.003,488,100.00
Long-term employee benefitspayable
Provisions 14,631,273.0014,631,273.00
Deferred income 15,724,174.3015,724,174.30
Deferred tax liabilities
Other non-current liabilities
Total Non-current Liabilities 33,843,547.3033,843,547.30
Total Liabilities 326,230,239.99326,230,239.99
Owners’ (or Shareholders’) equity:
Paid-in capital (or share capital) 451,554,411.00451,554,411.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve 1,310,939,867.821,310,939,867.82
Less: Treasury shares
Other comprehensive income
Special reserve
Surplus reserve 21,522,683.4021,522,683.40
Retained profits 211,573,548.42211,573,548.42
Total Owners’ (orShareholders’) Equity
1,995,590,510.641,995,590,510.64
Total Liabilities andOwners’ (or Shareholders’)Equity
2,321,820,750.632,321,820,750.63
Description of adjustments on each item:
√Applicable □ N/A
In accordance with the Accounting Standards for Business Enterprises No.14- Revenue (Cai Kuai[2017] No. 2) issued by the Ministry of Finance on July 5, 2017, for enterprises listed in domestic andoversea stock exchange concurrently and enterprises listed overseas with the financial statements preparedunder international financial reporting standards or accounting standards for business enterprises, the newrevenue standard shall be implemented from January 1, 2018; and for other enterprises listed domestically,the revenue standard shall be implemented from January 1, 2020. As a domestic listed company, theCompany adopted the new revenue standard as at January 1, 2020 on the basis of making adjustments onthe opening balance of relevant items recognized in the financial statements of 2020 with the data incomparable period unadjusted, according to which: (1) the goods payments received in advance originallyqualified for conditions of “Receipts in advance” were charged to the line item of “Contract liabilities”; (2)the rights of the Company for collecting the considerations for goods that have been transferred tocustomers, which depend on factors other than the lapse of time, were charged to the line item of “Contractassets”.
4.3 Description of retrospective adjustments in comparable data for previous periods upon the first
adoption of the new revenue standard and new lease standard since 2020
□ Applicable √ N/A
4.4 Auditor’s report
□ Applicable √ N/A