Stock Code：688007 Stock Short Name: Appotronics
Appotronics Corporation Limited
Annual Report 2022
2023 April
本报告为深圳光峰科技股份有限公司自愿披露的《2022年年度报告（英文版）》，对本报告的中英文版本理解上发生歧义时，以中文版本为准。
This is Annual Report 2022 (English version) voluntarily disclosed by AppotronicsCorporation Limited. In the event of any discrepancy between the English and Chineseversions of this report, the Chinese version shall prevail.
Maintain long-term strategic focus
Dear Shareholders,We would like to thank you all for your continued support and trust over the last year. Thoughvarious changes afflicted the global economy, Appotronics and various shareholders have tackled thisdifficulty jointly.
Albeit with many uncertainties, we soon made a foray into the automotive optics industry throughour extensive experience. To be specific, we obtained the IATF 16949:2016 certification and providedautomotive optical solutions to carmakers such as some international manufacturer, BYD Auto andSeres. In 2023, BMW’s i Vision Dee stuns the world with Appotronics devices, ushering in a new era offour-window fusion displays. At the same time, our own business also rose by 36.87% year-on-year.According to the 2022 China Projector Market Review released by IDC, our Formovie Projector gaineda 8% share of the home projector market as one of the top three brands. Despite the recurring waves ofCOVID-19, more than 2,700 new laser light source projectors were installed in cinemas throughoutChina. What’s more, our market share of professional displays remained ahead and our market share ofengineering laser projectors ranked first. Besides, our laser projector sales got the first place too.
In 2022, I acted as Appotronics CEO again. Considering the difficulties, not any success mentionedabove was made easily. First of all, I express my deepest gratitude to my team because they maintainedour strategic focus and business resilience. Secondly, I would like to owe these results to our appropriatestrategy. With Technology First in mind, we may create amazing possibilities in every scenario.
Though the revenue increased in 2022, our profits were affected. In operations management, a lotof problems arose. For example, there is still much room for improvement of our manufacturing capacity.Besides, our supply chain is not good enough... At the same time, we must deal with external challengesincluding shrinking demand, supply shocks and expectation weakening.
This year, we will continue to increase our investment in research and development because theinvestments in 2021 (9.47%) and 2022 (10.31%) have brought us a number of technological innovations.In 2022, we developed a pocket-sized optical module, the first commercial AR module with more than10,000 PPI. Also, our latest ALPD
?
5.0 laser display technology made its debut, achieving the maximum
color gamut visible to the human eye while demonstrating remarkable features such as no speckles, lowcost, high efficiency and compact size.
In the first quarter of this year, our R&D investment increased by 15.49% year-on-year. Indeed,innovation is our lifeline and leading competitive edge.
Also, we will continue to improve our management and values. The inadequacy in ourmanufacturing capacity must be overcome. And a change in the supply chain is required. Moreprocedures should be established and the well-established procedures should be improved. Besides,internal audit should be stricter than previously.
Last but not least, we will continue to expand our investment in automotive optical systems. At thejust-concluded Shanghai Auto Show, we presented a model car with the latest immersive laser displayand lights and launched the world's first automotive-grade laser headlight supporting RGB display, aswell as immersive in-car digital interactive solutions such as exterior window display, in-car transparentdisplay, in-car entertainment screen, and smart surface display. Through automotive displays, HUDs andlaser headlights, we along with our partners are exploring new smart car experience for all consumers.
With fast-growing AI web platforms like ChatGPT and advancing smart cockpits, Appotronics will helpbring immersive driving simulation to a new level.
As a saying goes, no great success is achieved with little effort. So, we will uphold our strategy andachieve our goal though more difficulties may lie ahead.Thank all shareholders and friends!Time tells everything!
LI YiApril 2023
Important Note
I. The Board of Directors, the Board of Supervisors, directors, supervisors and senior officers of theCompany hereby warrant that the information contained in this Annual Report is true, accurateand complete and this Annual Report is free from any misrepresentation, misleading statement ormaterial omission, and agree to assume joint and several liability for this Annual Report.II. The Company did not make profits at the time of getting listed, and has not made profits by now
□ Yes √ No
III. Alert of significant risks
The Company has described in detail the risks that may exist in the production and operation of theCompany. Refer to “Section III Discussion and Analysis of the Management- Risk factors” for the relevantrisks.IV. All directors of the Company attended the meeting of the Board of Directors.V. Pan-China Certified Public Accountants (Special General Partnership) issued a standard
unqualified auditor’s report to the Company.VI. LI Yi, Principal of the Company, WANG Yingxia, Person in Charge of the Accounting Body and
WANG Yingxia, Chief Accountant, hereby represent that the financial statements contained in this
Annual Report are true, accurate and complete.VII. Profit distribution proposal or proposal for capitalization of capital reserve approved by the Board
of Directors during the reporting period
Audited by Pan-China Certified Public Accountants (Special General Partnership), the Company's netprofit attributable to shareholders of listed companies in 2022 was RMB119,440,773.77, the net profitrealized by the parent company was RMB192,539,137.52, and the profit available for distribution byshareholders of the parent company at the end of the year was RMB579,741,763.06. The Company proposedto distribute a cash dividend of 0.54 yuan (tax inclusive) to all shareholders for every 10 shares, and as of thedisclosure date of this report, the total share capital of the Company was 457,107,538 shares, after deductingthe number of shares in the special securities account for repurchase of 900,000 shares, the total proposedcash dividend was RMB24,635,207.05 (tax inclusive), accounting for 20.63% of the net profit attributable toshareholders of the listed Company in 2022. This year, no capital reserve will be converted into share capital,and no bonus shares will be issued. The proposal has been deliberated and approved by the 19th meeting ofthe second Board of Directors and the 18th meeting of the second Board of Supervisors, and needs to besubmitted to the Company's General Meeting of Shareholders for deliberation.
At the same time, according to the relevant provisions of the Self-Regulatory Guidelines for ListedCompanies on the Shanghai Stock Exchange No.7-Share Repurchase, the repurchase amount ofRMB19,371,239.41 (excluding stamp duty, transaction commissions and other transaction costs)implemented by the Company in 2022 is regarded as cash dividends, and the proportion of the repurchaseamount to the net profit attributable to shareholders of the listed company in 2022 is 16.22%.VIII. Is there any material event concerning any special arrangement of corporate governance?
□ Applicable √ N/A
IX. Risk statement regarding forward-looking statements
√ Applicable □ N/A
The forward-looking statements contained herein regarding the future plans, development strategies orother matters of the Company do not constitute any substantive covenant made by the Company to theinvestors. Investors and relevant personnel should have sufficient know about the risks in this aspect, andunderstand the differences among plans, predictions, and promises. The investors should be aware of the riskof investment.X. Is there any non-operating occupation of funds by the controlling shareholder or its affiliates?
No
XI. Is there any external guarantee provided in contravention of the stipulated decision-makingprocedureNo
XII. Are the majority of the directors unable to guarantee the truthfulness, accuracy and completenessof the Annual Report disclosed by the Company?No
XIII. Others
□ Applicable √ N/A
Table of Contents
Section I Definitions ...... 4
Section II Company Profile and Financial Highlights ...... 6
Section III Discussion and Analysis of the Management ...... 11
Section IV Corporate Governance ...... 41
Section V Environment, Social Responsibility, and Other Corporate Governance ...... 62
Section VI Significant Matters ...... 71
Section VII Changes in Shares and Shareholders ...... 94
Section VIII Preferred Shares ...... 103
Section IX Corporate Bonds ...... 104
Section X Financial Report ...... 105
| List of Documents Available for Inspection | Financial Statements with seals and signatures of the Principal of the Company,the Person in Charge of the Accounting Body, and Chief Accountant |
| Original Auditor’s Report with seals of the accounting firm and seals and signatures of the certified public accountants | |
| All original documents and announcements of the Company publicly disclosed in the websites designated by the Company as of the reporting period |
Section I Definitions
I.DefinitionsFor purpose of this report, unless the context otherwise requires, the following terms shall have themeanings indicated below:
| Terms | ||
| Company or Appotronics | means | Appotronics Corporation Limited |
| Appotronics Ltd. | means | Appotronics Corporation Ltd., the former name of the Company |
| CINEAPPO | means | CINEAPPO Laser Cinema Technology (Beijing) Co., Ltd. |
| Formovie | means | Formovie (Chongqing) Innovative Technology Co., Ltd. |
| Appotronics HK | means | Appotronics Hong Kong Limited |
| Appotronics Daye | means | Shenzhen Appotronics Daye Investment Partnership (LP) |
| Appotronics Deye | means | Shenzhen Appotronics Deye Consulting Partnership (LP) |
| Appotronics Hongye | means | Shenzhen Appotronics Hongye Investment Partnership (LP) |
| Jinleijing | means | Shenzhen Jinleijing Investment Limited Partnership (LP) |
| Appotronics Chengye | means | Shenzhen Appotronics Chengye Consulting Partnership (LP) |
| XGIMI | means | Chengdu XGIMI Technology Co., Ltd. |
| Anker | means | Anker Innovations Technology Co., Ltd. |
| Zebao | means | Shenzhen Sunvalley Innovation Technology Co., Ltd |
| Dangbei | means | Hangzhou Dangbei Network Technology Co., Ltd. |
| Delta Electronics, Delta | means | Delta Electronics, Inc. |
| Blackpine | means | Blackpine Investment Corp. Ltd. |
| AR | means | Augmented Reality |
| HUD | means | head-up display |
| CES | means | International Consumer Electronics Show |
| PPI | means | Pixels Per Inch |
| ODM | means | Original Design Manufacturer |
| EVT | means | Engineering Verification Test |
| DVT | means | Design Verification Test |
| PVT | means | Production/Process/Pilot Run verification test |
| MP | means | Mass Production |
| CINIONIC | means | Cinionic Limited (previously known as Barco Cineappo Limited)） |
| WeCast | means | WeCast Technology Corp. |
| GDC BVI | means | GDC Technology Limited（British Virgin Islands） |
| GDC Cayman | means | GDC Technology Limited（Cayman Islands） |
| DCI | means | Digital Cinema Initiatives，Digital Cinema Initiatives of the United States |
| DLP | means | Digital Light Processing |
| LCOS | means | Liquid Crystal on Silicon，LCD and a new reflective display technology that organically combines CMOS integrated circuits |
| LCD | means | Liquid Crystal Display |
| RGB | means | Optical Three Primary Colors, R:Red, G:Green, B:Blue |
| ADB | means | Adaptive Driving Beam |
| AI | means | Artificial Intelligence |
| AIGC | means | AI generated content |
| AIOT | means | Artificial Intelligence & Internet of Things |
| ChatGPT | means | Chat Generative Pre-trained Transformer，and a chatbot model published by OpenAI |
| Midjourney | means | AI painting tools |
| Micro LED | means | Micro Light Emitting Diode Display |
| PCT | means | Patent Cooperation Treaty |
| IDC | means | International Data Corporation |
| AVC Revo | means | Asia Vital Components Revo |
Section II Company Profile and Financial Highlights
I. Company profile
| Chinese name | 深圳光峰科技股份有限公司 |
| Shortname in Chinese | 光峰科技 |
| English name | Appotronics Corporation Limited |
| Short name in English | Appotronics |
| Legal representative | LI Yi |
| Registered address | 20-22/F, Hi-tech Zone Union Tower, No. 63 Xuefu Road, Yuehai Street, Nanshan District, Shenzhen |
| Historical changes of the Company’s registered address | 1. October 24, 2006, Room 10, 14/F, Fangda Building, Keji South 12th Road, South Area, High-tech Industrial Zone, Nanshan District, Shenzhen 2. September 6, 2007, Room 03, 17/F, Overseas Chinese High-tech Venture Building, South Area, High-tech Industrial Zone, Nanshan District, Shenzhen 3. June 7, 2011, Area A, 1/F, Building 13, Xili Wenguang Industrial Zone, Nanshan District, Shenzhen 4. October 24, 2012, 401Shenzhen IC Design and Application Industrial Park, South to Chaguang Road, Xili Township, Nanshan District, Shenzhen 5. December 14, 2017, 21-22/F, Hi-tech Zone Union Tower, No. 63 Xuefu Road, Yuehai Street, Nanshan District, Shenzhen 6. August 1, 2018, 20-22/F, Hi-tech Zone Union Tower, No. 63 Xuefu Road, Yuehai Street, Nanshan District, Shenzhen |
| Office address | 20-22/F, Hi-tech Zone Union Tower, No. 63 Xuefu Road, Yuehai Street, Nanshan District, Shenzhen |
| Postal code of office address | 518052 |
| Website | http://www.appotronics.com |
| ir@appotronics.cn |
II. Contact person and contact information
| Board Secretary (Domestic representative for information disclosure) | |
| Name | CHEN Yasha |
| Address | 20-22/F, Hi-tech Zone Union Tower,No. 63 Xuefu Road, Yuehai Street,Nanshan District, Shenzhen |
| Telephone | 0755-32950536 |
| Facsimile | 0755-86186299 |
| ir@appotronics.cn |
III. Media for information disclosure and place for keeping the annual reports
| Name and website of the media on which the Company discloses its annual report | China Securities Journal (https://www.cs.com.cn) Shanghai Securities News (https://www.cnstock.com) Securities Times (http://www.stcn.com) Securities Daily (http://www.zqrb.cn) |
| Website of the securities exchange on which the Company discloses its annual report | Shanghai Stock Exchange website (http://www.sse.com.cn) |
| Place for keeping the annual reports | Office of the Board of Directors |
IV. Stock and depository receipts of the Company(I) Stock of the Company
√ Applicable □ N/A
| Stock of the Company | ||||
| Type of stock | Stock exchange and board | Stock short name | Stock code | Former stock short name |
| A-shares | Shanghai Stock Exchange, STAR Market | Appotronics | 688007 | N/A |
(II) Depository receipts of the Company
□ Applicable √ N/A
V. Other related information
| Domestic accounting firm appointed by the Company | Name | Pan-China Certified Public Accountants (Special General Partnership) |
| Office address | 6/F, No. 128 Xixi Road, Xihu District, Hangzhou, Zhejiang | |
| Accountants signing the report | WEI Biaowen, NIU Chunjun | |
| Sponsor performing the duty of continuous supervision within the reporting period | Name | Huatai United Securities Co., Ltd. |
| Office address | Floor 27, Fund Building, No.5999, Yitian Road, Lianhua Street, Futian District, Shenzhen | |
| Sponsor representatives signing the report | ZHANG Guanfeng, QIN Lin | |
| Period of continuous supervision | From July 22, 2019 to December 31, 2022 |
VI. Main accounting data and financial highlights in the past three years(I) Main accounting data
In RMB
| Main accounting data | 2022 | 2021 | %Change (2022v 2021) | 2020 |
| Operating income | 2,541,144,635.15 | 2,498,228,401.78 | 1.72 | 1,948,884,176.83 |
| Net profit attributable to shareholders of the listed company | 119,440,773.77 | 233,364,344.09 | -48.82 | 113,847,873.06 |
| Net profit attributable to shareholders of the listed company after deduction of non- recurring profit or loss | 64,813,134.02 | 124,279,830.79 | -47.85 | 40,289,988.80 |
| Net cash flow from operating activities | 177,350,715.69 | 58,337,226.84 | 204.01 | 52,390,430.42 |
| At the end of 2022 | At the end of 2021 | %Change (2022v 2021) | At the end of 2020 | |
| Net assets attributable to shareholders of the listed company | 2,647,663,487.59 | 2,438,064,581.44 | 8.60 | 2,091,599,671.75 |
| Total assets | 4,333,350,260.15 | 4,097,230,955.90 | 5.76 | 3,226,204,326.69 |
(II) Financial highlights
| Financial highlights | 2022 | 2021 | %Change (2022v 2021) | 2020 |
| Basic earnings per share (RMB/share) | 0.26 | 0.52 | -50.00 | 0.25 |
| Diluted earnings per share (RMB/share) | 0.26 | 0.51 | -49.02 | 0.25 |
| Basic earnings per share after deduction of non-recurring profit or loss (RMB/share) | 0.14 | 0.27 | -48.15 | 0.09 |
| Weighted average return on net assets (%) | 4.73 | 10.26 | - 5.53 percentage points | 5.62 |
| Weighted average return on net assets after deduction of non-recurring profit or loss (%) | 2.57 | 5.46 | - 2.89 percentage point | 1.99 |
| Proportion of R&D investments to operating income (%) | 10.31 | 9.47 | -0.84 percentage point | 10.49 |
Explanation about the main accounting data and financial highlights in the past three years
√ Applicable □ N/A
During the reporting period, the net profit attributable to shareholders of the listed company and the netprofit attributable to shareholders of the listed company after deduction of non-recurring profit or lossdecreased 48.82% and 47.85%, respectively; the basic earnings per share, diluted earnings per share, andbasic earnings per share after deduction of non-recurring profit or loss decreased by 50.00%,49.02%, and
48.15%, primarily due to the following:
1. Changes in revenue structure, of which the revenue of the cinema projection service businessdecreased by 25.41% year-on-year;
2. Expenses increased, including a year-on-year increase of RMB81.9049 million in sales expenses anda year-on-year increase of RMB25.4062 million in R&D expenses;
3. Non-recurring profit and loss during the reporting period decreased by RMB54.4569 millionyear-on-year.
During the reporting period, the net cash flow generated by operating activities increased by 204.01%year-on-year, mainly due to the year-on-year increase in sales collection and the decrease in purchasepayments caused by the optimization of the account period.
VII. Differences in accounting data under Chinese accounting standards and overseas accountingstandards(I) Differences in net profit and net assets attributable to shareholders of the listed company disclosed
on the financial statements according to the international accounting standards and the Chinese
accounting standards
□ Applicable √ N/A
(II) Differences in net profit and net assets attributable to shareholders of the listed company disclosed
on the financial statements according to the overseas accounting standards and the Chinese
accounting standards
□ Applicable √ N/A
(III) Explanation about the difference between overseas and Chinese accounting standards
□ Applicable √ N/A
VIII. Financial highlights in 2022 by quarter
In RMB
| 1st quarter (Jan. - Mar.) | 2nd quarter (Apr. - Jun.) | 3rd quarter (Jul. - Sep.) | 4th quarter (Oct. - Dec.) | |
| Operating income | 525,139,870.53 | 744,182,331.58 | 606,484,116.96 | 665,338,316.08 |
| Net profit attributable to shareholders of the listed company | 17,858,914.53 | 28,107,566.57 | 45,389,736.02 | 28,084,556.65 |
| Net profit attributable to shareholders of the listed company after deduction of non- recurring profit or loss | 550,708.61 | 21,454,678.31 | 32,170,896.11 | 10,636,850.99 |
| Net cash flow from operating activities | -68,223,422.47 | -10,329,937.20 | 89,773,197.08 | 166,130,878.28 |
Explanation about the difference between quarterly data and the data disclosed on regular reports
□ Applicable √ N/A
IX. Items and amounts of non-recurring profit or loss
√ Applicable □ N/A
In RMB
| Item of non-recurring profit or loss | 2022 | Note (if applicable) | 2021 | 2020 |
| Gain or loss on disposal of non- current assets | -5,668,573.43 | 1,437,535.03 | -1,112,121.13 | |
| Government grants recognized in profit or loss for the current period (excluding government grants that are closely related to the business of the Company and are provided in fixed amount or quantity continuously according to the applicable polices and standards of the country) | 40,229,974.94 | Section X VII. 84 | 87,716,471.20 | 40,750,823.51 |
| Profit or loss on entrusted investments or assets management | 12,637,561.73 | Section X VII. 68 | 9,776,977.44 | 18,624,853.96 |
| Debt restructuring gains and losses | -912,618.35 | |||
| Net profit or loss of subsidiaries from the beginning of the period up to the business combination date recognized as a result of business combination of enterprises involving enterprises under common control | 27,765,106.19 | 14,561,407.47 | 23,593,500.83 | |
| Profit or loss on changes in the fair value of held-for-trading financial assets, derivative financial assets, held-for-trading financial liabilities and derivative financial liabilities and investment income on disposal of held-for-trading financial assets, derivative financial assets, held-for-trading financial liabilities, derivative financial liabilities and other debt investments, other than those used in the effective hedging activities relating to normal operating business | -3,120,000.00 | Section X VII. 70 | 40,127,764.00 | |
| Reversal of impairment loss on accounts receivable and contract assets tested for impairment individually | 837,824.59 | |||
| Other non-operating income and expenses | -679,415.19 | 865,330.69 | 2,429,083.25 | |
| Other gains or losses meeting the definition of non-recurring profit or loss | 362,064.36 | -9,823,212.01 | 323,003.17 | |
| Less: Effect of income taxes | 4,542,972.68 | 7,304,758.42 | 9,068,330.19 | |
| Effects attributable to minority interests (after tax) | 12,281,312.41 | 28,273,002.10 | 1,982,929.14 | |
| Total | 54,627,639.75 | 109,084,513.30 | 73,557,884.26 |
For non-recurring profit and loss items defined by the Company as defined in the Interpretive Announcementon Information Disclosure of Companies Offering Securities to the Public No.1-Non-Recurring Profit andLoss, and the items of non-recurring profit and loss listed in the Explanatory Announcement on InformationDisclosure of Companies Offering Securities to the Public No.1-Non-Recurring Profit and Loss that aredefined as recurring profit and loss, reasons should be given.
□ Applicable √ N/A
X. Items at fair value
√ Applicable □ N/A
In RMB
| Item | Opening balance | Closing balance | Change | Effect on profit for the current period |
| Held-for-trading financial assets | 417,200,000.00 | 352,880,000.00 | -64,320,000.00 | 9,517,561.73 |
| Receivables financing | 244,860.00 | 4,279,041.00 | 4,034,181.00 | |
| Investment in other equity instruments | 7,075,419.38 | 7,075,419.38 | ||
| Total | 424,520,279.38 | 364,234,460.38 | -60,285,819.00 | 9,517,561.73 |
XI. Explanation about performance indicators not under the Accounting Standards for Business
Enterprises
√ Applicable □ N/A
The table below lists relevant indicators about the net profit excluding the effect of share-basedpayment expenses:
In RMB
| Item | 2022 | 2021 | Change (%) |
| Net profit attributable to shareholders of the listed company excluding the effect of share- based payment expenses | 171,801,853.92 | 277,641,613.32 | -38.12 |
| Net profit attributable to shareholders of the listed company after deduction of non-recurring profit or loss excluding the effect of share-based payment expenses | 117,175,029.32 | 164,481,340.03 | -28.76 |
XII. Explanations of information suspension or exemption due to state secrets, commercial secrets,
and other reasons
□ Applicable √ N/A
Section III Discussion and Analysis of the ManagementI. Analysis of business conditions during the reporting period
In 2022, in the face of the repeated epidemic and the complex and severe international and domesticenvironment, the Company has always adhered to the strategic principle of "core technologies+ core devices+application scenarios" and actively responded to the challenges met in the business environment. We need tofoster new opportunities amidst crises, open up new horizons on a shifting landscape. The Company firmlygrasps the market opportunities brought by the steady advancement of the "core devices" strategy, continuesto increase R&D investment in core technologies and growth businesses, continuously enhances theCompany's core competitive advantages, and pursues the Company's high-quality growth.
During the reporting period, the Company made breakthroughs in the automotive optics and successfullycreated a new growth curve; the household core device business has grown rapidly, and the upstream anddownstream circle of friends in the ecological chain has continued to expand; although greatly affected by theepidemic, the cinema business and professional display business as a whole have shown strong developmentresilience, the basic operation foundation is solid, and the overseas business has opened up a new situation.The Company's operating profit was under short-term pressure, but the overall operating situation maintaineda steady development trend, achieving an operating income of RMB2.541 billion, a year-on-year increase of
1.72%.
1. Core device business
? Grasp the trend of automotive intelligence for embracing the new track of the automotive optics
(1) Vast automotive display market space, accumulate strength to design the three product lines
The intelligence of automobiles has become a development trend in the automotive field, and newrequirements have been put forward for automotive displays by the intelligent cockpit, stimulating innovativeapplications of laser projection display in automotive displays, including roof screens, transparent windowdisplays, rollable large screen projection, AR-HUD, smart surface displays, smart laser headlights, etc. Themarket space of the automotive optical track is broad, and with the accelerated popularization of automotiveintelligence and technology, the market scale of the industry is growing rapidly.
2022 is the first year of the Company's automotive business development, and the Company is preparingto lay out three product lines: automotive display, laser headlights, and HUD. With the advantages of smallvolume, high brightness and non-trace display of ALPD
?laser display core technology, the Company'svehicle-mounted intelligent projection display solution can turn any surface in the car into a digital interactiveinterface, realizing a variety of typical application scenarios, such as in-plane sunroof display, side windowprojection, smart surface display, and vehicle-mounted large-screen projection, so that drivers and passengerscan experience the functionality or entertainment brought by ubiquitous display. The multi-scene,single-machine multi-function projection display of the Company's intelligent cockpit can provide a newvisual experience for automotive customers and maximize the intelligent display value of electric vehicles. Inaddition, the Company's vehicle-mounted business has carried out leading technology and product portfolio insub-fields such as HUD and laser headlights, seizing the development opportunities of the automotive opticsmarket.
Figure 1: Appotronics's vehicle-mounted business provides a variety of application solutions
| Laser headlights | automotive display |
Transparentdisplay (carwindows, sunroof)
| Transparent display (car windows, sunroof) | Rollable large screen (can be automatically operated) | Smart surface display (any interior surface) | Body display (exterior surface) | Laser headlight (high brightness, high precision) | Higher-efficiency HUD |
(2) It has successively obtained fixed orders from a number of automakers and continued to increase thecarrying capacity of ALPD
In April 2022, the Company obtained IATF 16949:2016 quality management system certification,indicating that the design and manufacture of vehicle-mounted laser optical engines and projectors fully metthe quality management system requirements of the International Automotive Working Group, and obtainedan access to enter the domestic and foreign automotive supply chain.
With its profound technology accumulation in the field of optics, the Company has obtained theDevelopment Nomination Letter issued by BYD, an internationally renowned brand car Company, Seres andmany other well-known car companies, realizing the rapid growth of automotive optical business.
At CES 2023, automotive brand BMW unveiled the world's first concept car I Vision Dee equipped withfour-window fusion display technology. The concept car Dee is equipped with the world's premierefour-window fusion display technology, making "window transparent display" an important change for thenext generation of smart cars. The core device of this technology is provided by the Company, usingultra-small, high-brightness ALPD
?DLP optical machine to make projection display on the surface of the sidewindow a reality, with external display through the internal projection and internal display through theexternal projection, and drivers and passengers can interact with the display screen outside the car or insidethe car.
Figure 2: Live display diagram of BMW I Vision Dee concept car side window display
(3) Forward arrangement of automotive optical technology patents, continuous expansion of businesscooperation ecosystem
The Company attaches great importance to the patent arrangement of automotive optical technology andprovide solid patent protection for the development of this business. During the reporting period, theCompany produced 81 new authorizations and patents related to automotive optical technology, ayear-on-year increase of 326.32%; as of December 31, 2022, the cumulative number of patents authorized andapplied for related to vehicle-mounted designs was 148, a year-on-year increase of 82.72%.
At the 2022 (6th) High-tech Intelligent Vehicle Annual Conference, the Company's vehicle-mountedlaser projection display technology won the 2022 Intelligent Vehicle Innovation Technology Award.Appotronics also won the vice president unit seat of Shenzhen Automotive Electronics Industry Association,aiming to promote the development of automotive electronic display and lighting electronics industry, andcontinuously bring new technologies and new solutions to the automotive industry.
With the growing demand for automotive intelligence and technology, the intelligence of electricvehicles has ushered in a rapid development period, and the vehicle-mounted laser track has entered a stage ofrapid development. With deep technology accumulation in optics, the Company will use technology toempower diversified vehicle-mounted application scenarios, actively cooperate with excellent domestic andforeign vehicle manufacturers and upstream and downstream partners in the supply chain, and strive to builda healthy automotive optical industry ecosystem.? Rapid growth in the household core device business for gaining more powerful brand value
influence
During the reporting period, the Company accelerated the arrangement of the To C core device business,
and the household core device business achieved an overall operating income of RMB413 million, ayear-on-year increase of 68.93%. Relying on the core advantages of ALPD
?
laser display technology, theCompany continues to supply customized laser micro-projectors or laser TV optical machines and other coredevices for partners such as Dangbei, Anker, and XGIMI. Among them, the laser projectors X3 and X3 Proreleased by the Company and Dangbei are deeply loved by consumers and have become the hot-sellingprojection products in the market.? Breakthroughs have been made in innovative fields such as AR and roboticsIn May 2022, the Company announced the world's first pocket-sized AR commercial optical moduledeveloped by itself with a PPI of more than 10,000, which made a breakthrough in the underlying technicalarchitecture and made significant progress at the high pixel density level.Relying on the advantages of self-developed laser light machine such as high brightness, small size,excellent heat dissipation and high energy efficiency, the Company reached a strategic cooperation withMidea Group to provide projection solutions for the first generation of home service robots released by it.This strategic cooperation fully reflects the Company's ability of laser implantation to enter the mobile devicefiled, which will help the Company cultivate and broaden the innovative application scenarios of coredevices.
2. Non-core device business
? C-end products are in a stage of well-grounded development, and own-brand business maintaineda growing trendIn 2022, Formovie continued to focus on its own brand and released a number of new smart projectorproducts, and its own brand business increased by 36.87% year-on-year, accounting for 66.11% of Formovie'stotal revenue. In the 2022 shipment ranking of the domestic consumer projector market (that is, the homeprojector market), the shipments of Formovie's own brand (excluding ODM) increased by 100.4%year-on-year, and the market share reached 8%, ranking the top three (data source: IDC). During the reportingperiod, the overall sales volume of the sub-brand Xiaoming series projectors increased by 119.98%year-on-year, and the sales volume increased by 167.97% year-on-year.? The professional display business ranks first in the market, accelerating the arrangement of
overseas marketsIn the engineering business, the Company's market share remains ahead, in the 2022 laser projectionengineering market, the Company's engineering projector sales share reached 14.5%, up 2.7 percentage pointsyear-on-year, ranking first in the market; the share of sales was 13.5%, up 3.4 percentage points year-on-year,ranking second in the market (data source: AVC Revo). The Company adhered to the innovation drive, andlaunched the new laser 3DLP high-brightness engineering projector G series during the reporting period tofurther enrich the high-brightness engineering projector product category. The Company continues to deepencustomer cooperation, focusing on creating Xinjiang's first global "walking immersion" super sensoryperformance All Celebrate and Dance Including Xinjiang, Meeting the museum?Beijing 798 Hall and otherinfluential cases with industry influence to enhance the brand influence in the engineering business market.
Figure 3: Case display of benchmarking projects in the engineering machinery in 2022Under the influence of relatively weak market demand for general education, the Company accelerated
Jiangxi Wuyuan Wunuzhou Huiyi Cultural Tourism characteristic town (T-series)Xinjiang Hetian Yotegan Old City| Large-scale live performance All Celebrate andDance Including Xinjiang (G-series, S-series)
Xinjiang Hetian Yotegan Old City| Large-scale live performance All Celebrate andDance Including Xinjiang (G-series, S-series)"Fascinating Zuoquan" light and shadow show in Zuoquan County, Shanxi Province(T series)
"Fascinating Zuoquan" light and shadow show in Zuoquan County, Shanxi Province(T series)Meet Dunhuang Light and Shadow Art Exhibition (Beijing/Haikou/Nanjing/Chengdu)
its transformation to higher vocational education, and successively won the bid for Northeastern University,Sichuan Normal University, Beijing Information Science and Technology University and other universityprojection program projects. In the field of business and education, the Company's shipments in the laserprojection business education market ranked first in the industry in 2022 (data source: AVC Revo). Itsoverseas special display business field has covered some countries such as North America, East Asia, andCentral Asia.? The cinema business has been significantly impacted by the epidemic, accumulating momentum tomeet the market recoveryAffected by multiple factors such as the long-term shutdown of cinemas and insufficient film sources,the Company's cinema projection service business has been affected to a certain extent. However, with yearsof deep cultivation and leading advantages, the Company achieved nearly 2,700 sets of new laser cinema lightsources installed nationwide during the reporting period. As of the end of the reporting period, the number ofALPD?
laser light source projection solutions of its subsidiary CINEAPPO installed in China has exceeded27,700 sets. The Company also actively responds to the national "dual carbon" policy, pays attention to theenergy-saving and environmental protection performance of products and reduces carbon emissions. In termsof overseas cinema market, with the rapid recovery of overseas cinema market and the boost of movieviewing demand, the Company's overseas cinema light source sales performed well.
With restrictions eased down, sufficient film sources and favorable policies in the film industry, theCompany will actively seize the opportunity to promote the development of the cinema business, and drivethe high-quality development of domestic and foreign markets with product advantages and channel upgrades.II. Main business, business model, industry situation and research and development situation of theCompany during the reporting period(I) Major business, main products or services
1. The main business engaged in by the Company
The Company, as a global leading enterprise in the laser display, adheres to the market and customerdemand-oriented, continues to focus on the original laser display technology and architecture as the lead, anddevotes itself to researching and developing, producing and selling laser display core devices and completemachines. The Company applies laser display technology to traditional applications such as home projection,cinema projection, engineering, business and education, and successfully enters the field of the automotiveoptics, lays out and expands new fields such as aviation display, AR, and robotics, and is committed toproviding customers with a full range of laser technology solutions.
2. The Company's main products and services
The Company's products are mainly divided into laser display core devices and complete laser displayequipment according to major categories. Among them, the core devices are further divided into laser lightsources (cinema light sources, engineering light sources), laser intelligent mini projectors, automotive opticalcore devices (automotive displays, HUDs, laser headlights) and systems, laser TV light machines, etc.;complete equipment can be further divided into intelligent mini projector, laser TV, laser movie projector,laser engineering projector, laser education projector, etc. The Company mainly provides laser cinemaprojection services, intelligent large-screen ecosystem Feng OS and corresponding system solutions.(II) Main business model
According to industrial policy, industry characteristics, upstream and downstream development andcustomer needs, combined with the Company's development strategy, competitive advantage, serviceexperience and other factors, the Company develops a relatively mature business model, with independentand complete R&D, procurement, production and sales system.
1. R&D mode
The Company adheres to the innovation-driven, continuously improves the R&D system that adopts theindependent R&D mode, and separates technology development and product development in terms oforganizational structure and development process. In terms of technology development, the Company focuseson the continuous innovation and mastery of core technologies and key technologies, and pays attention touser needs-oriented, and introduce product development after the technology is mature, so as to maintain theCompany's core competitiveness in technology and leading position in the industry; in terms of productdevelopment, according to the differentiated needs of different market segments, the Company sets upproduct lines and teams for product planning, divides it into feasibility \EVT\DVT\PVT\MP and other stagesto achieve rapid response to market demand.
2. Procurement model
The Company maintains long-term and in-depth cooperation with many suppliers, constantly strengthens
supply chain management and quality management, and always adopts diversified procurement. Theprocurement mode consists of front-end procurement services such as supplier selection, determination ofpurchase price, cooperative business system, and establishment of supplier platform, as well as back-endbusiness such as purchase order execution and delivery.
3. Production mode
The Company implements the model of "independent production as the mainstay, supplemented byoutsourced production" with an independent production system. The Company's external sales and projectionservices of light sources, optical core devices and core processes in the production process are completed bythe Company independently; To C intelligent mini projector, laser mini projector, laser TV complete machine,etc. are mainly outsourced, and other complete products are produced by itself.
4. Sales model
(1) Product sales model
The Company's marketing service network is laid out well, matching various application marketsegments. It adopts the product sales model combining "direct sales, distribution and agent sales", andachieves mutual penetration and coordinated development both online and offline to respond to customerneeds in a timely and rapid manner;
(2) Cinema projection service mode
The Company's holding subsidiary, CINEAPPO, provides laser film projection services to downstreamcinema customers, and charges service fees according to the length of time (the fees are charged by the houror a certain period of time) the cinema uses the light source, in this case the cinema does not need to purchaselight source equipment, thereby effectively alleviating its financial pressure and reducing its labor andmaintenance costs.
(3) Automotive optical business cooperation model
According to the needs of OEMs and the design of their own production lines, the Company designs anddevelops automotive optical products, and accepts the audit and certification of car companies at all stagesuntil it receives mass production confirmation. The Company's specific supply process is as follows:
Before the mass production of the project, the Company obtains the project designation point and signsrelevant sales contracts with the car company, stipulating the rights and obligations of both parties.
The designated-point contract usually uses the project usage within the procurement period as areference to determine the purchased products, model specifications, supply terms, etc., and thedesignated-point supplier supplies and provides services according to the contract provisions, and settles andpays regularly. Regarding the Company's products, the mode of synchronous research and development withcar companies is adopted, so the project progress after signing the designated-point contract is closely relatedto the development progress of customer models.
After the mass production of the project, car company requires the Company to conduct mass production,puts forward specific delivery arrangements, and after the car company confirms the receipt, it will pay theCompany according to the price agreed by both parties.(III) The situation of the industry
1.The development stage, basic characteristics, and main technical thresholds of the industry
(1) Industry development stage
As an emerging industry, laser display is at a stage of rapid growth, and its growth drivers mainly comefrom: First, technological progress has spawned emerging application fields, and laser display technology hasbeen applied to the automotive optics and other fields, and the market has great potential for explosion;second, the “14th Five-Year Plan” listed laser display in the Ministry of Science and Technology's "NewDisplay and Strategic Electronic Materials Key Special Project". With the support of national and industrypolicies, more and more domestic enterprises and scientific research institutions enter the upstream anddownstream fields of the laser display industry chain, strengthen the industrial chain, actively develop anditerate technology, thus further increasing the localization rate of core components of products.
(2) Basic characteristics of the industry
In 2007, the ALPD
?laser display pioneered by the Company's R&D team broke through the applicationbottleneck of the core devices and imaging solutions of laser display in the display field, and became themainstream technology of the laser display industry, and has been widely used in vehicle-mounted, household,cinema, engineering, business and education and other fields.
In terms of technology, ALPD
?laser display has become the mainstream technology, which can bematched with a variety of chips and technical routes, suitable for DLP, LCOS and LCD technology; in termsof market, in addition to traditional applications such as cinema, engineering, business and education,
emerging industries such as intelligent cockpit, intelligent networking, AR, and AI are booming, andgradually become a new application development focus of the laser display industry, and the overall scale ofthe industry continues to expand, which is expected to help to broaden the market growth space of ALPD
?
laser display technology.
(3) Main technical barriers
Laser display products cover optics, electronics, materials, physics, mechanical design, precisionmanufacturing and other fields. The key to product performance improvement lies in the core devices whilethe research and development and iteration of core devices are subject to high technical barriers and strongpatent barriers. In terms of specific application fields, the technical barriers of the TO C market and theinnovative application market lie in high efficiency, small size, and high-performance price ratio, while thetechnical barriers of the TO B market lie in the continuous upgrading of performance, such as brightness,color, dynamic range, etc.It is worth mentioning that ALPD
?
laser display technology, as the only laser display technology thatmeets the requirements of automotive regulations, can solve the problem of compliance of red laser vehiclespecifications in RGB light sources, and has significant technical advantages in the automotive optics.
2.Analysis of the Company's position in the industry and its changes
As a new generation of display technology, laser display is widely used in the market with its advantagesof high brightness, small volume, long service life, wide color gamut, energy saving and environmentalprotection. In addition to the traditional display field, it can also be applied to innovative fields such asvehicle-mounted, AR, and aviation.As a leader in the laser display industry, the Company has laid out a patent moat around the underlyingtechnical architecture of laser phosphor display technology, which is difficult to be bypassed by companies inthe industry entering the laser phosphor technology route. The Company is committed to the breakthroughand innovation of laser display technology, the development of application scenarios and the industrializationpromotion, and thus forms the technical reserve and patent arrangement of the whole technology chain oflaser display from key system architecture, core devices to key algorithms. With the core competitiveadvantage of "patent moat+ technical barriers", the Company has its voice at the upstream core device stagein the laser display industry.
3.The development and future development trend of new technologies, new industries, new formats andnew models during the reporting period
(1) Accelerated development of automotive intelligence leads to considerable market potential of theautomotive optics
A. Automotive intelligence
In terms of demand, the automobile consumer group is younger, and the demand for automotiveintelligence will explode. According to SIC data, in 2020, the proportion of car buyers after the post-90sgeneration accounted for about 26%, and by 2025 this proportion will quickly increase to 38%, and morethan 52% of car buyers will be the post-90s generation in 2030. As Generation Z gradually becomes themain group of car buyers, the preference for intelligent driving, high-tech and other configurations is stronger,and the demand for automotive intelligence will further improve.
In terms of supply, in recent years, blockbuster models of various new energy vehicle companies havebeen launched one after another, thus greatly inspiring the market enthusiasm, and more intelligent vehicleswill be launched soon. In the medium and long term, in the future, China's smart electric vehicle market willpresent a diversified competitive pattern, with the subsequent domestic intelligent vehicle supply significantlyincreased, industrial development showed an accelerated trend. In order to accelerate the construction of anintelligent transportation system, China has issued a number of policies and regulations to promote theintelligent upgrade of the automotive industry. With the support of multiple policies, the transportation fieldof China's automobile market is developing towards intelligence and Internet connectivity.
B. Intelligent cockpit
Automotive intelligence starts first, followed by the era of intelligent cockpit. The intelligent cockpit isin a period of rapid growth with accelerated application. With the change of consumer demand, consumers'positioning of cars is gradually evolving from travel tools to the third space, and intelligent cockpits are givenstronger interactive attributes. Compared with traditional cockpits, intelligent cockpits have outstandingadvantages in interactive performance, sense of technology, comfort, safety and other fields, and the relatedhardware industry has broad growth space.
In 2030, the global automotive intelligent cockpit market will reach $68.1 billion, of which the Chinese
market will exceed RMB160 billion; China's intelligent cockpit market share will further rise to 37%,becoming the world's leading smart cockpit consumer market (Source: IHS forecast). In the intelligent cockpitindustry chain, some subdivisions have seen rapid growth opportunities:
Head-up display (HUD): W-HUD is the current mainstream program, and AR-HUD, combining virtualimage and real scene, is expected to become the mainstream in the future, with more integrated display effect,richer information content. As the terminal car manufacturers accelerate the promotion of front-mountedHUD, the penetration rate of HUD continues to increase, and it is expected to further increase. In terms ofmarket size, according to the data of Yiou Think Tank, the market size of China's automotive front-mountedHUD will reach RMB2.96 billion in 2021, and the market size is expected to reach RMB31.74 billion in 2025,with a compound annual growth rate of 81%, and the overall scale is expected to achieve rapid growth in thefuture.
Automotive display: As a terminal system, automotive display helps realize the human-computerinteraction, and the multi-screen automotive display is in great demand. The driver enters commands on thedisplay by voice, touch, etc., and the display uploads the command to the system and outputs. The vehicle isequipped with a central display, instrument panel display, head-up display, rearview mirror display, and frontand rear entertainment screens. According to Omdia, global automotive display shipments in 2020 was 140million, and the market size reached $7.2 billion, and it is expected that automotive display shipments will be230 million in 2025, with a five-year compound growth rate of 10%, and the automotive display market sizewill be $12.8 billion, with a five-year compound growth rate of 12%.
Relying on the characteristics of high brightness, small size, high energy efficiency ratio, and the abilityto convert any surface into a digital interactive interface, laser display has become a new display technologyafter LCD in the field of automotive display, and has become one of the mainstream technologies attractingcar companies.
C. Automotive lighting
At first, automotive headlights are designed to meet the night visual needs, providing basic lighting fordrivers driving at night and providing low and high beam. With the development of technology, greaterdriving safety is required at night. For example, to minimize the effect of headlight glare, which is easy tocause traffic accidents. AFS (adaptive headlight system) and ADB (adaptive high beam system) lightingsystems emerge. In the third stage, automotive lamp shows the potential of rich personalization and infinitescene interaction expansion in the era of intelligent automobiles, so that the display function is introduced intothe lamp, thus more interactive behavior between the lamp and driver, and a trend of display+ lightingintegration, including road surface projection, pixelated signal lights, etc.
The market penetration rate of ADB headlamps in 2022 is only 3.2% while the market penetration ofADB headlamps is expected to reach 13.2% by 2026, driving the overall lamp market value to reach $39.496billion in 2026, with a compound annual growth rate of 4.7% from 2021 to 2026 (Source: TrendForce).
(2) Laser display is integrated with new technologies for expansion into new fields such as robots andAR
A. Artificial intelligence empowers terminal devices with more "intelligence"
With the iterative update of a new generation of artificial intelligence technologies and applications suchas ChatGPT 4 and Midjourney V5 and their excellent content generation capabilities, artificial intelligence(AI) has begun to reach the general public users on the C-end, and AIGC (artificial intelligence contentgeneration) technology is gradually changing the current content production mode and bringing new changes.
The new direction of artificial intelligence technology represented by GPT has begun to provide moreand broader scene channels for potential downstream applications of electronic products, and it is expected toform a path with computing power chips→ computing power devices→ cloud-side servers →end side AIOTas the core for the hardware. With the application of artificial intelligence technology in mobile phones, smarthomes, smart cameras, drones, self-driving cars and other terminals, terminal devices will be given more"intelligence".
According to qubit calculations, the domestic AIGC market size is expected to reach RMB17 billion in2023, and from 2025, as the industrial ecology becomes more and more perfect, its application will flourishand drive the rapid growth of the industry, and starting from 2028, AIGC will develop a complete industrialchain and continue to expand and deepen commercialization scenarios, and the market size is expected toexceed RMB1 trillion by 2030.
B. Artificial intelligence accelerates the industrialization of robots
AI and robot develop independently, with the emergence of deep algorithms in 2006, robots started to beused. In March 2023, Google launched PaLM-E, the world's largest visual language model, to realize thesynchronous training of robot vision and text; at the same time, Microsoft released a paper to integrate
CHATGPT into robot training, which attracted widespread attention in the industry. Multimodal’s applicationin robots is on trend, which will further empower robots to reduce robot programming costs, improvehuman-computer interaction capabilities and make scenarios more vivid. Based on factors such as faulttolerance, To C-end applications are ideal scenarios, and scenarios such as home companion service robots,food delivery robots, and mobile robots will be the first to be applied. With the technical iteration and costreduction of general AI products, it is expected to create more core scenarios in the future and achieve AIinclusiveness.
Laser display technology is one of the mainstream technical routes, which can be matched with a varietyof chips and technical routes, suitable for DLP, LCOS and LCD technology. It is compatible with the latesttechnologies such as human-machine interaction, intelligent identification, Internet of Things, cloud platformand big data. Among them, with the rapid development of AI artificial intelligence, the Company's coredevice business with first-mover advantage will be more creative and imaginative. Relying on the deeptechnology accumulation in the field of laser display, the Company provided projection solutions for the firstgeneration of home service robots released by Midea Group in 2022, and successfully entered the field ofgrowing robots.
C. AR display, the mainstream display technology of the future
AR display can superimpose virtual reality in real scenes to achieve enhanced display, and therefore canbe applied in industry, medical, remote communication, sports, daily information display and other aspects.With the continuous advancement of virtual display technology and the promotion of virtual personalassistants by major technology giants, glasses AR products are expected to usher in a period of rapiddevelopment.
AR glasses optical imaging systems currently use more solutions for free-form surfaces, birdbaths andoptical waveguides. From the prospective of performance, optical waveguides have obvious advantages inlens thickness, field of view, light transmittance, etc., and have the highest technical barriers. In terms ofdisplay, silicon-based OLED screen is widely used, and Micro LED has also been pursued by the industry,but problems related to brightness, service life, power consumption, cost, yield and other aspects remain to besolved.
From the perspective of technical architecture, AR display is similar to projection-type display, and withthe accumulation of technology in laser display, the Company possesses the imaging optics, illuminationoptics, algorithms and other technology and industrial chain resources required for AR technology researchand development.
In May 2022, the Company announced the world's first self-developed AR optical module with PPIexceeding 10,000, which focused on making breakthroughs in the underlying technical architecture andmaking significant progress at the high pixel density level. Based on the innovation in optical, structure,algorithm and other technical fields, the Company has developed SPD (super pixel density) technology,which achieves over 10,000 PPI, 720p resolution, 40 degrees of field of view and power consumption below200mW in a volume of 0.5cc (cubic centimeters), and the image definition is more than twice the industryaverage under the same volume.(IV) Core technology and R&D progress
1. Core technology and its advancement and changes during the reporting period
The Company is committed to the breakthrough and innovation of laser display technology, thedevelopment of application scenarios and the industrialization promotion, and thus forms the technical reserveand patent arrangement of the whole technology chain of laser display from key system architecture, coredevices to key algorithms. At the same time, the Company continues to invest R&D resources in laser displaysystem miniaturization, miniaturization, light source architecture, complete machine structure, completemachine perception, thin film material preparation and processing to maintain the industry-leading level. As aLeader Level Member of the International Laser Projector Association, the Company participates in thedevelopment of international standards for laser display.
With the support of accumulated data, algorithms and design solutions, the Company has the ability toquickly provide products and solutions that meet different application scenarios such as movie screening,home entertainment, outdoor display, ultra-large area display, immersive display and so on. Meanwhile, theCompany has successively made breakthroughs in the fields of automotive-grade laser optical machine, wide
color gamut high dynamic range optical machine, AR optical module and other fields, and achievedmarket-oriented promotion.National Scientific and Technology Awards
□ Applicable √ N/A
Qualifications of national "little giant" enterprises in specialized, refinement, differential, and innovation, and"leading enterprise" in the manufacturing industry
□ Applicable √ N/A
2. R&D achievements during the reporting period
During the reporting period, the Company made the following achievements in technology and productinnovation:
(1) Core devices
In terms of cutting-edge technology, the Company officially released ALPD
?
5.0 laser display
technology in November 2022, which greatly improved the color gamut range by maintaining the originaltechnical advantages of ALPD
?without speckle, low cost and high luminous efficiency by way of lightsource control matching software algorithm, reaching 120% Rec.2020, 165% DCI-P3, 210% Rec.709 to meetthe color gamut requirements of the 4K standard. It helps achieve the maximum color gamut visible to thehuman eye, thereby improving the visual experience.
In terms of automotive optics, the Company has developed multiple automotive-grade products such asautomotive laser display, HUD PGU, and pixelated intelligent headlights that met automotive standards, andcarried out mass production and research and development of automotive-grade optical machines based on thedesignated projects of automotive enterprises.
In terms of innovative applications, based on multiple technological innovations such as optics, structure,and algorithms, the Company has developed SPD (super pixel density) technology, and announced the world'sfirst self-developed AR optical commercial module with PPI exceeding 10,000 in May 2022, which made abreakthrough in the underlying technical architecture and significant progress at the high pixel density level;the Company provided projection solutions for the first generation of home service robots released by MideaGroup, successfully applying laser display light machine to intelligent home service robots and achieving thefirst mass production delivery. In addition, the "zero" post-focal optical machine solution is anothertechnological innovation of the Company. Compared with the traditional optical machine, it has no prism, nobackfocus block, thus minimizing the volume of the optical machine, and will see more development ininnovative fields such as mobile phones, AR, and vehicles in the future.
(2) Complete machine
In the field of household projection, during the reporting period, Formovie Technology released anumber of smart projectors, including V10 projector, S5 laser intelligent mini projector, Xiaoming Q2 and Q2Pro intelligent projectors, enriching the projection product matrix to meet the diversified projection needs ofconsumers. In May 2022, Formovie Technology officially released its flagship new V10 4Kultra-high-definition projector, with a brightness of more than 2,500 lumens, achieving a leading position inits class and 3,840*2,160 resolution, 8.3 million pixels, and AI image quality enhancement function,presenting ultra-high-definition extreme vision; it pioneers the industry in the 2.1-channel speaker design.
In the field of household TV, during the reporting period, Formovie launched Formovie Theater, afull-color laser TV product with 4K resolution and BT.2020 color gamut overseas, which was the first laserTV to achieve far-field voice through Android TV 11.0 and Google. For the sound quality, the Companyjointly developed and debugged with the well-known brand B&W to achieve the leading sound effect andimage quality synchronization in the industry.
In the field of engineering applications, as the first enterprise in China to independently develop 3DLPhigh-lumen engineering machines, the Company launched a new generation of G series high-brightnessengineering projectors, using high-efficiency liquid cooling system and 3DLP imaging technology to achieve25,000 lumens of high brightness, effectively supplementing the brightness and price range of the previousgeneration of T series high-brightness engineering machines, and realizing wider application coverage ofhigh-brightness engineering projectors in cultural tourism, night tourism economy and other fields.
List of intellectual property rights acquired during the reporting period
| Newly added in the current year | Total |
| Applications (pcs) | Granted (pcs) | Applications (pcs) | Granted (pcs) | |
| Patent for invention | 222 | 148 | 1,622 | 966 |
| Patent forutility model | 174 | 181 | 715 | 605 |
| Patent for design | 32 | 37 | 219 | 202 |
| Software copyright | 20 | 16 | 133 | 127 |
| Others | 136 | 163 | 1,130 | 980 |
| Total | 584 | 545 | 3,819 | 2,880 |
Note: 1. “Others” in the table above refer to trademarks of the Company; 2. during the reporting period, theCompany filed 73 PCT international patent applications.
3. R&D investments
In RMB
| Current year | Last year | Change (%) | |
| R&D investments expensed | 262,108,405.90 | 236,702,224.29 | 10.73 |
| R&D investments capitalized | - | - | - |
| Total R&D investments | 262,108,405.90 | 236,702,224.29 | 10.73 |
| Proportion of R&D investments to operating income (%) | 10.31 | 9.47 | +0.84 percentage points |
| Proportion of R&D investments apitalized (%) | - | - | - |
Reason for the material change in the total R&D investments compared with last year
□ Applicable √ N/A
Reasons of the great change in the proportion of R&D investments capitalized and explanationabout the rationality there of
□ Applicable √ N/A
4. R&D projects
√ Applicable □ N/A
In RMB
| No. | Item | Estimated total investment | Investment in the current period | Aggregate investment | Progress Or interim results | Goals | Technological level | Application scenario |
| 1 | Trichromatic Laser Display Complete Equipment Production Demonstration Line | 102,840,000.00 | 26,082,494.49 | 95,703,192.76 | Mass production | This project will research the industrialization of the technology of RGB trichromatic laser with phosphor to satisfy the market demands for RGB trichromatic laser display, build a mass production line for trichromatic laser display complete equipment, acquire proprietary IP, and realize large-scale application of trichromatic laser display products. | This project will greatly promote the industrial upgrading of trichromatic laser display technology, and gain international competitive edge for proprietary trichromatic laser display technology. | This project will establish a trichromatic laser display complete equipment production demonstration line. |
| 2 | Innovative projection optics applications | 170,870,000.00 | 39,009,880.78 | 39,009,880.78 | Pilot test | Carry out customized research and development, design and production of vehicle-mounted projection products for different models according to the requirements of automobile manufacturers; research and develop AR optical modules; provide projection solutions in the field of IoT AloT. | Take the lead in the industry | It is used in innovative projection display scenarios such as vehicle-mounted, AR, and IoT AloT. |
| 3 | Laser TV | 102,040,000.00 | 30,547,199.52 | 85,019,675.97 | Mass production | Combined with the new-generation light generator technology, equipped with the independently developed FengOS system and screen, with obvious improvement in cost effectiveness, color gamut, and ease of use. | Take the lead in the industry. | 4K household laser TVs. |
| 4 | Laser cinema projector | 114,640,000.00 | 37,483,782.58 | 81,073,194.57 | Mass production | Research and develop low-cost, DCI-compliant laser cinema projectors for high-end home use and DCI-compliant cinema LED screens. | Take the lead in the industry, DCI standard household projector and cinema LED screen. | It is used in high-end home markets and cinema screening halls. |
| 5 | Core device light source and light generator project | 100,620,000.00 | 28,797,886.91 | 55,046,595.96 | Mass production | It adopts a new generation of optical machine technology to realize lower cost, wider color gamut, higher brightness, and higher energy efficiency ratio of light source optical machine. | Take the lead in the industry and make significant improvement in cost performance, color gamut, light efficiency, etc., to better meet the actual needs of customers. | It is used in the upgrading of cinema projector light source, three-color laser TV, laser mini projector and other market fields. |
| 6 | Intelligent mini projector | 174,520,000.00 | 72,119,130.48 | 91,234,969.04 | Mass production | Research and develop high-performance, cost-effective intelligent mini projectors, lay out different product series, make breakthroughs in technological innovation, product form innovation and quality upgrade to meet different user needs. | Take the lead in the industry | Household mini projector market |
| 7 | Professional display products (engineering+ business education) | 80,040,000.00 | 28,068,031.14 | 44,303,175.89 | Mass production | Develop a variety of high-brightness laser engineering projectors and cost-effective intelligent business projectors, etc according to the needs of different market users. | Take the lead in the industry | It is used in high-end engineering projection, business education and other market fields. |
| Total | / | 845,570,000.00 | 262,108,405.90 | 491,390,684.97 | / | / | / | / |
Remark
Not
5. R&D staff
In RMB 0’000
| Basic information | ||
| Amount of the current period | Previous period | |
| Number of R&D staff (persons) | 521 | 456 |
| Proportion of R&D staff to total employees of the Company (%) | 31.83 | 29.14 |
| Total compensation of R&D staff | 16,993.04 | 14,761.07 |
| Average compensation of R&D staff | 32.62 | 32.37 |
| Academic structure of the R&D staff | ||
| Academic category | Person in the academic category | |
| Master and above | 140 | |
| Bachelor and below | 381 | |
| Age structure of the R&D staff | ||
| Age category | Person in the age category | |
| Below 30 (exclusive) | 198 | |
| 30-40 (including 30, excluding 40) | 222 | |
| 40 and above | 101 | |
Reason for material changes in the composition of the R&D staff, and impact on the future development of theCompany
□ Applicable √ N/A
6. Other information
□ Applicable √ N/A
III. Analysis of core competitiveness during the reporting period(I) Analysis of core competitiveness
√ Applicable ?N/A
1. The R&D team is strong, accelerating the development and iteration of productsThe Company adheres to innovation-driven, continues to increase R&D investment in forward-lookingtechnology arrangement and product technology development. As a high-tech enterprise, the Company willcontinue to improve R&D capabilities as the main theme of the Company's core competitiveness, andcontinue to improve the R&D system. With Mr. LI Yi, chairman and general manager, as the core personnelof R&D, the Company has established a leading R&D team in optics and display devices, developed andinnovated the laser display technology for many years, thus having accumulated profound R&D technicalstrength and got a deep understanding and judgment of the industry's cutting-edge technology anddevelopment trend.The Company has set up a research institute and a research and development center to jointly coordinatetechnology planning, development and accumulation. The institute carries out forward-looking producttechnology research and product verification, develops it into a new product line, and ensures that R&Dresources are advanced; the R&D center, combining the R&D and scientific research achievements of theresearch institute, coordinates the management of new product development until mass production and launch.With leading R&D technical resources, the Company significantly improves the efficiency of R&D planningthrough the cooperation of R&D center and research institute, and applies the latest R&D achievements toprojection display products.
2. Relying on the technical advantages of core devices, all-round forward-looking strategic arrangementis madeBased on the technical advantages of core devices and market development trends, the Company hasbeen committed to the breakthrough and innovation of laser display technology, the development of
application scenarios and the industrialization promotion, and thus forms the technical reserve and patentarrangement of the whole technology chain of laser display from key system architecture, core devices to keyalgorithms, and constantly optimizes and improves the strategic arrangement of automotive display, aviationdisplay, AR and other application fields. We promote the innovative application of core devices in new fieldsand new tracks, and continue to broaden the long-term growth space of core device value.
3. Build a patent moat around the underlying technical architecture
The Company takes the underlying technical architecture patent of the original laser display technologyas the center, and builds a solid and interconnected intellectual property patent system, and it is difficult forcompetitors to fully imitate or directly by the underlying patent arrangement of the Company's laserfluorescence technology route. The Company actively responds to the national "intellectual property powerstrategy" and increases the proportion of high-value patents. As of December 31, 2022, the Company hasapplied for and authorized patents in 2,629 cases worldwide, and obtained 1,773 authorized patentsworldwide, including 966 authorized invention patents.In terms of technology leadership, the Company's original laser phosphor display has become themainstream technology in the current laser display field, and as the underlying key architecture technology, ithas been used more than 660 times by companies in the same industry, such as Philips of the Netherlands,Osram of Germany, Epson of Japan, NEC and other companies.
(II) Events occurred during the reporting period that have a material effect on the Company’score
competitiveness, analysis of the effect and countermeasures
□ Applicable √ N/A
IV. Risk factors(I) Risk of not making a profit
□ Applicable √ N/A
(II) Risk of significant decrease in operating performance or loss
□ Applicable √ N/A
(III) Risk related to core competitiveness
√ Applicable □ N/A
The risk that technological innovation will fall short of expectations
The Company needs to accurately grasp the development trend of industry technology and application,and constantly develop and optimize its own technical capabilities to provide services and products that meetmarket demand and customer standards. If we fail to make effective judgments on the direction oftechnological innovation, or fail to achieve continuous technological innovation, or fail to make effectiveR&D investment due to financial constraints, or face risks such as the loss of core technology personnel andtechnology leakage, adverse effects such as weakening competitiveness may occur.
The Company will continue to timely and accurately grasp the technological development trend of thelaser display industry, further strengthen technical advantages and technology development, increaseinvestment in research and development, and consolidate its own industry position and enhance productcompetitiveness on the basis of maintaining existing technical advantages.(IV) Operating risk
√ Applicable □ N/A
Risk related to the supply of important raw materials
Core suppliers may not be able to supply parts in time or guarantee both quality and quantity, resulting ina slowdown in the growth rate of the Company's related business, delayed of the shipment progress of somecore devices or complete machine products, and the Company’s growth rate of business performance will notmeet expectations as a result.
The Company has established stable cooperative relations with existing suppliers, and pays attention tothe supply and demand of important raw materials market and price changes, and ensures the supply of rawmaterials and controls procurement costs through measures such as early procurement, strengtheningcooperation with strategic suppliers, and seeking domestic device substitution. At the same time, the
Company will improve the planning of product sales, production efficiency, and the turnover speed of coreparts.(V) Financial risk
√ Applicable □ N/A
1. Risk of impairment of accounts receivable
As of the end of the reporting period, the carrying value of the Company's accounts receivable wasRMB208.2602 million, accounting for 4.81% of assets. The Company's product sales mainly adopt themethod of paying before the deliver, and we leave a certain credit period to some key high-quality largecustomers. If a material adverse change in the customer's operating conditions occurs, there may be a risk thatthe accounts receivable will not be collected, which may adversely affect the Company's future performance.The Company strengthens risk management and control, continuously tracks and controls customercredit, and urges customers to settle and pay in a timely manner, strengthen the assessment of accountsreceivable collection, and establish an early warning system for overdue accounts receivable; for individualcustomers who maliciously default and have a long period of arrears, payment will be recovered througharbitration, litigation and other legal methods.
2. Risk of impairment of inventories
As of the end of the reporting period, the carrying value of the Company's inventory was RMB865.6400million, accounting for 19.98% of assets. The Company's inventory is mainly composed of raw materials andinventory goods. If the competitive landscape of the industry changes significantly, and there is a majorinnovation in laser display technology and products, the recoverable amount of inventory may be lower thanits carrying value, resulting in inventory impairment, which will have a negative impact on the Company'sprofitability. The Company will pay close attention to the changes in supply and demand of the industrialchain, timely carry out production and marketing coordination according to the market and productionconditions to reduce product inventory risks.
3. Risks of impairment of fixed assets
As of the end of the reporting period, the carrying value of the Company's fixed assets wasRMB427.5397 million, accounting for 9.87% of the assets. The Company's fixed assets are mainly composedof production equipment and rental cinema projector light sources, of which cinema projector light sourcesaccount for 74.13%. If the theater is shut down due to force majeure, the light source of the cinema projectormay be idle, resulting in impairment of fixed assets, which will adversely affect the Company's operation. Inorder to cope with the above risks, the Company will pay close attention to the status of fixed assets,strengthen communication with business departments, improve the efficiency of asset use, and reduce the riskof impairment. In the meanwhile, for assets that show signs of impairment, the Company will measure therecoverable amount and make an impairment provision for fixed assets based on the difference between therecoverable amount and the carrying value.
4. Risk of exchange rate changes
The Company's procurement and sales involve a variety of foreign currencies, of which dollar is themain foreign currency. If the exchange rate of the relevant currency fluctuates, it will have a certain impact onthe Company's financial position. In this regard, in order to effectively avoid the risks of the foreign exchangemarket, prevent large fluctuations in the exchange rate from adversely affecting the Company's businessperformance, improve the efficiency of the use of foreign exchange funds, and reasonably reduce financialcosts, the Company carries out foreign exchange derivatives and other businesses in a timely manner toreduce the risk of exchange rate fluctuations.(VI) Industrial risk
√ Applicable □ N/A
Risk of increased competition in the household smart projection market
With the continuous influx of new brands and the continuous investment of domestic independent brandcompanies in this field, the competition of the home smart projection market has become more and morefierce. If the Company fails to update and meet the needs of the application field in terms of technology,products, costs, services and other aspects in the future, or there are mergers and acquisitions between
competitors, integration and concentration of their own advantageous resources, or market competition leadsto a significant decline in product prices, the Company will face the market share decline, businessperformance growth slowdown or even decline in the field of home intelligent projection.The Company needs to continue to strengthen the innovation and optimization of intelligent projectionproducts and channels, accurately grasp the application rhythm of the terminal market, maintain thecompetitiveness of the Company's household projection products to maintain its leading position to ensurestrong competitiveness in the market.(VII) Risk of macro-environment
√ Applicable □ N/A
At present, the global economy is witnessing cyclical fluctuations, the domestic and foreign economicsituation is complex and changeable, and the economic pattern is accelerating its restructuring. If the domesticand foreign macro economy continues to decline in the future, it may adversely affect the Company'soperating conditions, and even affect the Company's profitability.The Company will continue to strengthen the study and judgment of the macroeconomic situation, payclose attention to the political, economic and international trade environment and tariff changes of majorcountries, quickly assess risks and actively adjust relevant businesses to reduce the adverse impact of changesin the international trade environment.(VIII) Risk related to depository receipts
□ Applicable √ N/A
(IX) Other significant risks
√ Applicable □ N/A
1. Risks in intellectual property rights
The Company has always attached importance to the research and development of independentintellectual property rights, but intellectual property disputes between the Company and competitors or thirdparties are likely to occur, and some competitors or third parties may maliciously file lawsuits against theCompany. Such intellectual property disputes may adversely affect the Company's normal business activitiesand hinder the Company's market expansion and market competitiveness.
The Company has built a system for the creation, management, application and protection of intellectualproperty rights, and continuously improved key technologies and patent management and protectionmechanisms. On the one hand, it actively designs the arrangement of intellectual property rights globally andimplements an early warning mechanism for intellectual property risks; on the other hand, it formulates andimproves measures to respond to intellectual property disputes. Multiple measures have been taken to protectthe legitimate rights and interests of the Company and avoid market or economic losses caused by intellectualproperty disputes.
2. Risks in implementing investment projects
Affected by force majeure, the Company faces risks such as slowdown of the capacity expansion andunsatisfied construction progress of the headquarters building in the process of implementing fundraising andinvestment projects. The Company will strengthen the management of fundraising and investment projects,accelerate the progress of project construction, and track the progress of fundraising and investment projectsin real time, but in the implementation process, it is not ruled out that the final implementation progress maybe slower than planned, and the implementation plan or plan needs to be adjusted according to thedevelopment of the industry and market. In the event of the foregoing, the Company will performdecision-making procedures in accordance with relevant regulations and disclose information in a timelymanner.
3. Risk related to the management of cinema light source
In the laser film projection service business, the customer pays to use the laser light source according tothe duration of using the light source, and bears the daily storage, maintenance and damage compensation ofthe light source, but the Company still faces the asset impairment caused by the damage or loss of the lightsource due to poor storage of the cinema.
In order to cope with the above risks, the Company collects a light source deposit from new leasing
customers, and limits the average monthly minimum screening time of the theater to improve the efficiency oflight source use. In addition, the Company realizes the linkage of screening time data between the leasingplatform and the third-party platform, and timely discovers and handles theaters with risks, so as tocontinuously improve the quality and safety of leasing operations.
4. Risks in the arbitration with relevant parties of the participating company GDC BVIAt present, the Company is in the process of arbitration and counter arbitration with relevant parties ofGDC concerning the rights and interests of the parties. Because GDC Cayman,GDC BVI, Mr. ZHANGWanneng and his management team violated the provisions of the Shareholders’ Agreement andSettlement Agreement, including but not limited to the appointment of directors in violation of corporategovernance regulations, violation of protective provisions for the Company, and failing to purchase theminimum quantity of C5 projectors and core device parts by the end of 2021.There will be uncertainties about the Company's cooperation with GDC BVI regarding the procurementof cinema hardware products; since the arbitration case has not yet commenced, its impact on the Company'sprofit and loss cannot be determined, and the final actual impact shall be subject to the arbitral tribunal'sverdict or negotiation between the parties. The Company has hired a team of professional lawyers to takerelevant legal measures to protect the legitimate rights and interests of the Company and all shareholders inaccordance with the law, and will fulfill its information disclosure obligations in a timely manner inaccordance with relevant regulations.V. Main business activities during the reporting period
During the reporting period, under the background of complex and changeable macro environment athome and abroad, the Company's operating profit was under pressure in the short term, but the Companyactively responded to the challenges of the operating environment and achieved operating income ofRMB2.541 billion, a year-on-year increase of 1.72%; the net profit attributable to shareholders of listedcompanies was RMB119 million, down 48.82% from the same period last year; the net profit attributable toshareholders of the listed company deducted non-recurring profits and losses was RMB65 million, down
47.85% from the same period last year. At the end of the reporting period, the Company's total assets reachedRMB4.333 billion, an increase of 5.76% over the beginning of the period; the net assets attributable toshareholders of the listed company were RMB2.648 billion, an increase of 8.60% over the beginning of theperiod.(I) Analysis of main business
1. Analysis of changes in statement of income and statement of cash flows lines
In RMB
| Item | Amount of the current period | Amount of the prior period | Change ratio（%） |
| Operating income | 2,541,144,635.15 | 2,498,228,401.78 | 1.72 |
| Operating costs | 1,711,732,842.88 | 1,651,089,557.25 | 3.67 |
| Selling expenses | 334,758,958.86 | 252,854,103.31 | 32.39 |
| Administrative expenses | 193,554,776.41 | 187,933,417.27 | 2.99 |
| R&D expenses | -9,162,605.79 | 1,300,380.36 | -804.61 |
| Financial expenses | 262,108,405.90 | 236,702,224.29 | 10.73 |
| Net cash flow from operating activities | 177,350,715.69 | 58,337,226.84 | 204.01 |
| Net cash flows from investment activities | 47,917,226.22 | -444,906,406.98 | Not Applicable |
| Net cash flows from financing activities | 116,013,055.07 | 295,570,009.05 | -60.75 |
Reasons for the change in sales expenses: In 2022, sales expenses accumulated to RMB334.759 million, anincrease of 32.39% year-on-year, mainly due to the Company’s increased investment in its own brands,year-on-year increased marketing expenses and increased staff salary;Reasons for the change in financial expenses: In 2022, the cumulative financial expenses incurred were-RMB9.1626 million, a year-on-year decrease of RMB10.463 million, mainly due to exchange gains caused byexchange rate changes;Reasons for the change in net cash flow from operating activities: Net cash flow from operating activitieswas RMB177.3507 million, an increase of RMB119.0135 million over the same period of the previous year,
mainly due to the increase in sales collection and the decrease in purchase payments caused by the optimizationof the account period;Reasons for the change in net cash flow from investment activities: net cash flow from investment activitieswas RMB47.9172 million, an increase of RMB492.8236 million over the same period of the previous year,mainly due to the decrease in the structured wealth management purchased in the current period compared withthe same period of the previous year and the disposal of the equity recovery investment funds of theshareholding company Cinionic in the current period;Reasons for the change in net cash flow from financing activities: Net cash flow from financing activitieswas RMB116.0131 million, a decrease of RMB179.557 million from the same period of the previous year,mainly due to the introduction of strategic investment by the Company's subsidiaries in the same period of theprevious year.Detailed description of major changes in the business types, profit composition or profit sources of theCompany
□ Applicable √ N/A
2. Analysis of revenue and costs
√ Applicable □ N/A
During the reporting period, our operating income was RMB 2.541 billion, increased by 1.72% year on year.
(1). Main business by industry, product, region, and sales mode
In RMB 0’000
| Main business by industry | ||||||
| Industry | Operating income | Operating costs | Gross margin (%) | % Change in operating | % Change in operating cost | % Change in gross margin |
| Laser display | 254,114.46 | 171,173.28 | 32.64 | 1.72 | 3.67 | -1.27 percentage points |
| Main business byproduct | ||||||
| Product | Operating income | Operating costs | Gross margin (%) | % Change in operating income | % Change in operating cost | % Change in gross margin |
| 1. Sales | 225,924.34 | 157,009.04 | 30.50 | 6.60 | 4.96 | +1.09 percentage points |
| (1) Light source and light machine | 52,028.14 | 29,582.96 | 43.14 | 80.14 | 105.15 | -6.93percentage points |
| (2) Complete laser projector | 151,966.54 | 109,619.82 | 27.87 | -11.03 | -12.80 | +1.46percentage points |
| Laser cinema projector | 3,085.79 | 1,817.15 | 41.11 | -50.65 | -46.97 | -4.08percentage points |
| Laser TV | 40,940.28 | 25,989.79 | 36.52 | -27.13 | -34.24 | +6.86percentage points |
| Professional display projector | 43,386.12 | 25,369.13 | 41.53 | -15.19 | -14.58 | -0.42percentage points |
| Smart mini projector | 64,554.35 | 56,443.75 | 12.56 | 12.84 | 6.38 | +5.31percentage points |
| (3) Other products | 21,929.66 | 17,806.26 | 18.80 | 79.05 | 88.23 | -3.96percentage points |
| 2. Cinema projection service | 26,898.39 | 13,741.61 | 48.91 | -25.41 | -3.99 | -11.40percentage points |
| 3. Other business | 1,291.73 | 422.63 | 67.28 | -29.31 | -64.99 | +33.33percentage points |
| Main business by region | ||||||
| Region | Operating income | Operating costs | Gross margin (%) | % Change in operating income | % Change in operating cost | % Change in gross margin |
| Domestic | 212,026.97 | 147,173.87 | 30.59 | -8.55 | -5.29 | -2.39percentage points |
| Overseas | 42,087.49 | 23,999.41 | 42.98 | 134.23 | 146.95 | -2.94percentage points |
| Main business by sales mode | ||||||
| Sales mode | Operating income | Operating costs | Gross margin (%) | % Change in operating income | % Change in operating cost | % Change in gross margin |
| Direct sales | 157,493.60 | 112,145.62 | 28.79 | 2.11 | -0.05 | +1.54percentage points |
| Distribution | 69,644.52 | 45,241.22 | 35.04 | 19.90 | 21.21 | -0.70percentage points |
| Commissioned sales | 77.95 | 44.83 | 42.49 | -94.58 | -96.47 | +30.75percentage points |
| Projection services | 26,898.39 | 13,741.61 | 48.91 | -25.41 | -3.99 | -11.40percentage points |
Description of main business by sector, product, region, and sales mode:
1. Description of sub-products: The Company's main business consists of products sale and projectionservices, and the operating income during the reporting period was RMB2.541 billion, a year-on-year increaseof 1.72%, of which the operating income of light source and optical machine was RMB520.2814 million, ayear-on-year increase of 80.14%, mainly due to the increase in sales of laser micro-projectors.
2. Description of the situation by region: The Company's export operating income in the reporting period wasRMB420.8749 million, a year-on-year increase of 134.23%, mainly due to the growth of oversease-commerce business and the recovery of sales growth in overseas cinema markets.
3. Description of the sales model: The Company's sales model is divided into product sales and screeningservices, and product sales are mainly supplemented by direct sales and distribution, of which the salesrevenue is RMB0.7795 million , down 94.58% year-on-year, mainly due to the change of the Company's salesstrategy, and conversion of part of the sales business to self-developed business.
(2). Analysis of output and sales volume
√ Applicable □ N/A
| Main products | Unit | Output | Sales volume | Stock | % Change in output | % Change in sales volume | % Change in stock |
| Optical engine and complete equipment | Set | 628,861.00 | 568,696.00 | 154,288.00 | 19.99 | 24.48 | 63.92 |
Explanation about output and sales volume
We supplied part of laser light source produced under operating leases, used part of laser TV lightgenerators produced to manufacture laser TV products, and used part of laser mini projector light generators forproduction laser mini projectors, which were not included in the production and sales volume.During the reporting period, the Company's production and sales increased year-on-year, due to theincreased stocking and inventory of micro-projectors in peak season, and the inventory increased by 63.92%year-on-year.
(3). Performance of significant procurement contracts and significant sales contracts
□ Applicable √ N/A
(4). Analysis of costs
In RMB 0’000
| Costs by industry | |||||||
| Industry | Components of cost | Amount for the current period | Ratio in total costs for the current period (%) | Amount of the prior period | Ratio in total costs for the prior period (%) | % Change in amount | Situation Description |
| Laser display | 171,173.28 | 100.00 | 165,108.96 | 100.00 | 3.67 | ||
| Costs byproduct | |||||||
| Product | Components of cost | Amount for the current period | Ratio in total costs for the current period (%) | Amount of the prior period | Ratio in total costs for the prior period (%) | % Change in amount | Situation Description |
| 1. Sales | Direct materials | 141,494.05 | 90.12 | 134,461.73 | 89.89 | 5.23 | |
| Direct labor | 4,866.31 | 3.10 | 4,054.86 | 2.71 | 20.01 | ||
| Indirect expenses | 10,648.68 | 6.78 | 11,072.43 | 7.40 | -3.83 | ||
| Subtotal | 157,009.04 | 100.00 | 149,589.02 | 100.00 | 4.96 | ||
| 2.Cinema projection business | Depreciation of light source | 8,522.20 | 62.02 | 7,665.61 | 53.56 | 11.17 | |
| Software license fee | 1,048.06 | 7.63 | 1,439.08 | 10.05 | -27.17 | ||
| Technical service fee | 3,565.57 | 25.95 | 4,434.46 | 30.98 | -19.59 | ||
| Labor cost | 605.78 | 4.41 | 773.73 | 5.41 | -21.71 | ||
| Subtotal | 13,741.61 | 100.00 | 14,312.88 | 100.00 | -3.99 | ||
| 3.Other business | 422.63 | 100.00 | 1,207.06 | 100.00 | -64.99 | ||
| Total | 171,173.28 | 100.00 | 165,108.96 | 100.00 | 3.67 | ||
Explanation about cost analysis
1. Sales costs mainly comprise direct materials, direct labor and indirect expenses, of which, the costs ofdirect materials account for 90.12%.
2. For the leasing service business, variable cost items such as technical service fees, software usage fees,and labor costs decreased year-on-year, mainly due to the decrease in theater screening time; the depreciationof the light source is calculated adopting the average life method whether it is used or not, and the increase inthe current period is mainly caused by the increase in assets.
(5). Change in the scope of consolidation due to changes in equity interests held in major subsidiaries
during the reporting period
√ Applicable □ N/A
Increased consolidation scope:
| Company name | Acquisition of shares | The day on which the equity was acquired | Amount of capital contribution | Percentage of capital contribution |
| Weiwoqi Trading Co.,Ltd | Business combinations that are not under common control | 2022.06.15 | 33.31% | |
| Hongkong Orange Juice Energy Technology Co., Limited | Found | 2022.03.15 | 33.31% | |
| Wemax INC | Found | 2022.03.19 | 33.31% | |
| Yaoyouguang (Chongqing) Technology Co., Ltd. | Found | 2022.10.28 | 39.19% | |
| Appotronics International Limited | Found | 2022.04.26 | 100.00% | |
| Appotronics Intelligent Manufacturing (Shenzhen) Co., Ltd. | Found | 2022.08.17 | 100.00% |
(6). Significant changes in or adjustments to the businesses, products, or services of the Companyduring the reporting period
□ Applicable √ N/A
(7). Main customers and main suppliers
A. The Company’s major customers of the sales
√ Applicable □ N/A
The sales to top 5 customers were RMB 1,003.4696 million, representing 39.49% of the total annualsales, of which the sales to related parties were RMB 487.4308 million, representing 19.18% of the totalannual sales.Top 5 customers
√ Applicable □ N/A
In RMB 0’000
| No. | Customer | Sales | % of total annual sales | Related to the listed company or not |
| 1 | Customer 1 | 39,314.98 | 15.47 | Yes |
| 2 | Customer 2 | 19,274.84 | 7.59 | No |
| 3 | Customer 3 | 18,344.38 | 7.22 | No |
| 4 | Customer 4 | 18,175.59 | 7.15 | No |
| 5 | Customer 5 | 5,237.17 | 2.06 | No |
| Total | - | 100,346.96 | 39.49 | / |
Description of sales to a single customer accounting for over 50% of the total sales value, newcustomer in the top 5 customers, or serious dependance on a small number of customers during thereporting period
√ Applicable □ N/A
Customer 5 is the top five new customersB. Information on major suppliers of the Company
√ Applicable □ N/A
The procurement amount of the top five suppliers was RMB792.8062 million, accounting for 36.98% ofthe total annual procurement; among the top five suppliers, the purchase amount of related parties wasRMB146.6225 million, accounting for 6.84% of the total annual procurement.Top 5 suppliers
√ Applicable □ N/A
In RMB 0’000
| No. | Supplier | Procurement cost | % of total annual purchase cost | Related to the listed company or not |
| 1 | Supplier 1 | 22,386.91 | 10.44 | No |
| 2 | Supplier 2 | 19,123.39 | 8.92 | No |
| 3 | Supplier 3 | 17,129.12 | 7.99 | No |
| 4 | Supplier 4 | 14,662.25 | 6.84 | Yes |
| 5 | Supplier 5 | 5,978.95 | 2.79 | No |
| Total | / | 79,280.62 | 36.98 | / |
Description of purchase from a single supplier accounting for over 50% of the total sales value, newsupplier in the top 5 suppliers, or serious dependance on a small number of suppliers during thereporting period
□ Applicable √ N/A
3. Expenses
√ Applicable □ N/A
| Unit: In RMB | |||
| Item | Amount of the current period | Amount of the prior period | % Change |
| Selling expenses | 334,758,958.86 | 252,854,103.31 | 32.39 |
| Administrative expenses | 193,554,776.41 | 187,933,417.27 | 2.99 |
| R&D expenses | 262,108,405.90 | 236,702,224.29 | 10.73 |
| Financial expenses | -9,162,605.79 | 1,300,380.36 | -804.61 |
(1) In 2022, the sales expenses accumulated to RMB334.7590 million, an increase of 32.39% year-on-year,mainly due to the Company’s increased investment in its own brands, year-on-year increased marketingexpenses and increase in sales staff compensation;
(2) The cumulative financial expenses incurred in 2022 were -RMB9.1626 million, a year-on-year decrease ofRMB10.463 million, mainly due to exchange gains caused by exchange rate changes.
4. Cash flow
√ Applicable □ N/A
| Unit: In RMB | |||
| Item | Amount of the current period | Amount of the prior period | % Change |
| Net cash flow from operating activities | 177,350,715.69 | 58,337,226.84 | 204.01 |
| Net cash flows from investment activities | 47,917,226.22 | -444,906,406.98 | N/A |
| Net cash flows from financing activities | 116,013,055.06 | 295,570,009.05 | -60.75 |
Reasons for the change in net cash flow from operating activities: Net cash flow from operating activitieswas RMB177.3507 million, an increase of RMB119.0135 million over the same period of the previous year,mainly due to the increase in sales collection and the decrease in purchase payments caused by theoptimization of the account period;Reasons for the change in net cash flow from investment activities: net cash flow from investmentactivities was RMB47.9172 million, an increase of RMB492.8236 million over the same period of theprevious year, mainly due to the decrease in the structured wealth management purchased in the currentperiod compared with the same period of the previous year and the disposal of the equity recovery investmentfunds of the shareholding company Cinionic in the current period;Reasons for the change in net cash flow from financing activities: Net cash flow from financing activitieswas RMB116.0131 million, a decrease of RMB179.557 million from the same period of the previous year,mainly due to the introduction of strategic investment by the Company's subsidiaries in the same period of theprevious year.(II) Explanation about material change in profit due to non-main business
□ Applicable √ N/
(III) Analysis of assets and liabilities
√ Applicable □ N/A
1. Status of assets and liabilities
In RMB
| Item | Balance at the end of the period | % of total assets at the end of the period | Balance as at December 31, 2021 | % of total Assetsas at December 31, 2021 | %Change in amount | Explanation |
| Monetary capital | 1,355,882,208.63 | 31.29 | 957,729,831.15 | 23.38 | 41.57 | Primarily due to the increase in receivables and bank borrowings in the current period |
| Notes receivable | 2,234,687.77 | 0.05 | 5,256,603.03 | 0.13 | -57.49 | Primarily due to the collection of notes receivable at maturity in the current period |
| Accounts receivable | 208,260,235.79 | 4.81 | 403,134,471.87 | 9.84 | -48.34 | Primarily due to an increase in recover ables |
| for the current period | ||||||
| Receivables financing | 4,279,041.00 | 0.10 | 244,860.00 | 0.01 | 1,647.55 | Primarily due to the collection of matured bank acceptance bills |
| Prepayments | 48,445,976.86 | 1.12 | 98,116,970.83 | 2.39 | -50.62 | Primarily due to the decrease in procurement requirements in the current period and the corresponding decrease in advance payments |
| Contract assets | 1,061,581.35 | 0.02 | 3,903,859.23 | 0.10 | -72.81 | Primarily due to the collection of customer payments in the current period |
| Non-current assets due within one year | 13,431,554.82 | 0.31 | 3,473,049.18 | 0.08 | 286.74 | Primarily due to the Reclassificatio of long-term receivables due within one year |
| Other current assets | 106,502,611.79 | 2.46 | 52,761,820.83 | 1.29 | 101.86 | Primarily due to the increase in the input VAT to be deducted |
| Long-term accounts receivable | 11,524,193.80 | 0.27 | 5,793,552.74 | 0.14 | 98.91 | Primarily due to the increase in the Company's installment collection business |
| Long-term equity investment | 162,394,917.57 | 3.75 | 293,601,085.27 | 7.17 | -44.69 | Primarily due to the disposal of the equity interest in Cinionic, a shareholding company, in the current period |
| Construction in progress | 278,978,057.73 | 6.44 | 148,620,511.35 | 3.63 | 87.71 | Primarily due to the increase in the investment for the construction in progress of the headquarters building during the reporting period |
| Right-of-use assets | 62,255,670.29 | 1.44 | 26,803,910.76 | 0.65 | 132.26 | Primarily due to the impact of implementing the New Lease Standard |
| Long-term prepaid expenses | 5,990,984.03 | 0.14 | 10,126,164.82 | 0.25 | -40.84 | Primarily due to the amortization of expenses such as renovation of the Company |
| Short-term borrowings | 129,589,634.03 | 2.99 | 5,570,878.11 | 0.14 | 2,226.20 | Primarily due to the new bank borrowings and intra-group bankers' acceptance bill discounting in the current period |
| Notes payable | 201,299,388.57 | 4.65 | 134,378,967.61 | 3.28 | 49.80 | Primarily due to the increase in the proportion of bankers' acceptances issued during the period to pay the price due |
| Accounts payable | 276,845,321.28 | 6.39 | 419,966,567.27 | 10.25 | -34.08 | Primarily due to a decrease in purchases in the current period and an increase in bankers' acceptances payable |
| Taxes payable | 8,272,768.90 | 0.19 | 19,546,190.23 | 0.48 | -57.68 | Primarily due to the decrease in the amount of corporate income tax |
| payable accrued | ||||||
| Other current liabilities | 28,383,608.37 | 0.66 | 19,561,104.12 | 0.48 | 45.10 | Primarily due to the increase in rebates payable for the period |
| Leasing liabilities | 34,319,284.23 | 0.79 | 10,789,352.69 | 0.26 | 218.08 | Primarily due to the impact of implementing the New Lease Standard |
| Estimated liabilities | 56,463,882.87 | 1.30 | 36,428,688.94 | 0.89 | 55.00 | Primarily due to the increase in the cost of three guarantees accrued in the current period |
Other information
None
2. Overseas assets
√ Applicable □ N/A
(1) Size of assets
The overseas assets were RMB 560.6319 million, representing 12.94% of the total assets.
(2) Explanation about the high proportion of overseas assets
□ Applicable √ N/A
3. Encumbrances on assets as of the end of the reporting period
√ Applicable □ N/A
Unit: In RMB
| Item | Carrying value at the end of the period | Reasons for limitation |
| Other monetary funds | 60,141,839.19 | Cash deposit |
| Bank deposits | 40,000,000.00 | Fixed term deposit |
| Bank deposits | 1,111,250.50 | Accounts with restricted payments |
| Bank deposits | 46,710.53 | Accrue of interest |
| Bank deposits | 5.29 | Accounts not handling for a long time |
| Intangible assets | 281,035,499.82 | Mortgage guarantee |
| Total | 382,335,305.33 |
4. Other information
□ Applicable √ N/A
(IV) Analysis of operation information of the industry
√ Applicable □ N/A
For details of the analysis of industry operating information during the reporting period, please refer to(II) Main business, business model, industry situation and research and development situation of theCompany during the reporting period of Section Ⅲ Discussion and Analysis of the Management.
(V) Analysis of investmentsOverall analysis of external equity investments
√ Applicable □ N/A
In RMB
| Investment in the reporting period (in RMB) | Investment in the same period of last year (in RMB) | Range of change |
| 162,394,917.57 | 293,601,085.27 | -44.69% |
Note: The main reasons for the changes during the reporting period are described in (Ⅴ), (Ⅵ) of Section III.
1. Material equity investments
□ Applicable √ N/A
2. Material non-equity investments
□ Applicable √ N/A
3. Financial assets at fair value
√ Applicable □ N/A
In RMB
| Asset category | Amount at the beginning of the period | Gain or loss on changes in fair value for the period | Cumulative fair value changes included in equity | Impairment of the current period | The purchase amount for the current period | Sale/redemption for the current period | Other changes | Amount at the end of the period |
| Shares | 16,200,000.00 | -3,320,000.00 | 12,880,000.00 | |||||
| Others | 408,320,279.38 | -4,900,000.00 | 56,965,819.00 | 351,354,460.38 | ||||
| Total | 424,520,279.38 | -3,320,000.00 | -4,900,000.00 | 56,965,819.00 | 364,234,460.38 |
Note: Other investments are mainly structured deposits and other equity instruments, as detailed in Section Ⅹ and Section XI.Description of securities investment
√Applicable ?N/A
In RMB
| Security type | Security code | Abbreviation of securities | Initial investment cost | Capital source | Carrying value at the beginning of the period | Gain or loss on changes in fair value for the period | Cumulative fair value changes included in equity | Purchase amount for the current period | Sale for the current period | Disposal of profit and loss | Carrying value at the end of the period | Accounting items |
| Domestic and foreign shares | 835438 | Gabrielle | 14,000,000.00 | Self-owned capital | 16,200,000.00 | -3,320,000.00 | 12,880,000.00 | Tradable financial assets | ||||
| Total | - | - | 14,000,000.00 | - | 16,200,000.00 | -3,320,000.00 | 12,880,000.00 | - |
Private equity investment
□ Applicable √ N/A
Derivatives investment
□ Applicable √ N/A
4. Specific progress of material assets restructuring and integration during the reporting period
□ Applicable √ N/A
(VI) Sale of material assets and equities
□ Applicable √ N/A
To further optimize the Company's asset structure and effectively integrate the Company's resources based on Company’s operation and development, during thereporting period, the Company transferred its 20% equity interest in Cinionic Limited to the transferee, Barco Visual Electronics Company Limited for $20 million, and thetransaction was completed. Upon completion of the transaction, the Company will no longer hold equity interest in Cinionic Limited. Due to the difference in conversioncaused by exchange rate fluctuations, the Company recognized a gain or loss on disposal of -$704,670.16 (equivalent to -RMB4,700,290.90).(VII) Analysis of major investees
√ Applicable □ N/A
In RMB 0’000
| Company | Main business | Registered capital | Shareholding percentage | Total assets | Net assets | Operating income | Net profit |
| CINEAPPO | Provision of cinema laser light source lease service and sales of projectors | 10,000.00 | 63.20% | 85,120.11 | 42,873.59 | 33,682.91 | 1,153.46 |
| Formovie (Chongqing) | R&D and sale of household display products | 7,017.54 | 39.19% | 94,209.96 | -7,927.15 | 115,933.32 | -14,217.05 |
| Appotronics HK | R&D and sale of laser light source | 30,116.15 | 100.00% | 48,935.32 | 36,605.30 | 19,090.82 | -1,205.54 |
(VIII) Structured entities controlled by the Company
□ Applicable √ N/A
VI. Discussion and analysis of future development of the Company(I) Structure and trend of the industry
√ Applicable □ N/A
In terms of the automotive optics business, the industry is in the stage from 0 to 1, enjoying apromising future. According to data from the China Association of Automobile Manufacturers, China'sannual sales of new energy vehicles in 2022 will be 6.887 million units, a year-on-year increase of 93.4%,maintaining the world's first place for eight consecutive years.
With the acceleration of vehicle electrification, intelligent process, and the upgrading and strengtheningof user experience, new requirements are put forward for vehicle displays, stimulating innovative applicationsof laser projection displays in vehicle displays. Potential application scenarios include roof screens,transparent window displays, rollable large screen projection, AR-HUD, smart surface display, smart lights,etc., and the market size is expected to exceed RMB100 billion.
In terms of cinema projection service business, the industry has gone through a difficult time andis expected to embrace a promising future. In 2022, the domestic film market was seriously impacted dueto force majeure, and 40% of cinemas were closed for nearly 100 days, and film projection was stopped then.According to the public information of the National Film Administration, the total box office of China's filmmarket in 2022 was RMB30.067 billion, a year-on-year decrease of 36%, and the national cinema industry isunder great pressure.
Due to multiple favorable factors such as the optimization and adjustment of prevention and controlpolicies, the gradual recovery of offline entertainment consumption, and the continuous release ofhigh-quality films, it is expected that the national film projection market will start to develop in 2023, and theupgrading of cinemas will be improved, accelerating the pace of industry recovery.
In terms of professional display business, the market is gradually recovering. The engineeringmarket industry is becoming more and more concentrated, the cultural tourism in various provinces hasresumed its construction, and the digitization of visits in various places remains the focus of promotingmarket recovery. It is predicted that the average annual compound growth rate of the laser projectionengineering market in 2022~2025 will be 14.6% (data source: AVC Revo).
With the obvious recovery trend of offline consumption, business market demand is expected to recoveras well, and the average annual compound growth rate of the laser projection business market in 2022~2025will be 17.6% (data source: AVC Revo). In terms of the education market, under the background of domesticfilm procurement, although domestic head brands have development opportunities, they are still facinglong-term growth pressure, and the average annual compound growth rate of the laser projection educationmarket in 2022~2025 will be 2.4% (data source: AVC Revo).
In terms of smart projection business, mass consumption investment is more cautiously conducted,and high-cost performance will be one of the main themes of market growth in 2023. In 2023, massconsumption investment will be more cautiously conducted. When choosing products, consumers may use amore positive attitude than ever to compare prices, judge trends from a more professional perspective, andconfirm their needs more rationally, so the high-cost performance of products will be one of the main themesof market growth in 2023. At the same time, there will still be an influx of new brands into the projectiontrack in 2023, causing the competition between projection brands to intensify, which requires major projectionmanufacturers to improve their core competitive advantages and actively compete for market share in thefierce market competition. In 2022, China's smart projection market sales will increase by 28.6% year-on-year,and at the same time, it is predicted that China's smart projection market sales will increase by 19%year-on-year in 2023, and the growth rate of this market will gradually slow down from a high-speed growthstate (Source: RUNTO).
Compared fierce competition between major entities in China, the overseas projection market is stilldominated by traditional projection, the intelligent projection market is still at the early stage of development,and the penetration rate of intelligent micro-projection products is not as good as that of China. In 2022,China exported 9.382 million projectors, with an export value of RMB12.35 billion (data source: the GeneralAdministration of Customs). With the gradual improvement of overseas consumers' awareness of smart miniprojectors, the overseas smart projection market is expected to further expand.
(II) Development strategy of the Company
√ Applicable □ N/A
In the future, the Company plans to drive the display industry, with the mission and vision of "New light,New life", and the development strategy of "core technologies+ core devices+ application scenarios", andcontinues to promote the breakthrough and innovation of laser display technology, accelerate the developmentof application scenarios and promote the deep industrialization of laser display technology, aiming to expandand strengthen the laser display industry ecology.
(III) Business plan
√ Applicable □ N/A
In 2023, the Company will continue to adhere to the development strategy of "core technologies+ coredevices+ application scenarios", continue to increase R&D investment in growth businesses such asautomotive optics taking the market and customer needs as the guide to realize the combination of customerneeds and technological innovation, create a new growth pole of the Company's performance, and go all outto pursue the Company's high-quality growth.
In terms of the automotive optics business, the Company will continue to develop vehicle display,lighting system and AR-HUD; adhering to the development route of leading customers and the goal ofobtaining more high-quality fixed-point cooperation, we will carry out multi-level and all-round cooperationwith excellent domestic and foreign vehicle manufacturers.
In terms of cinema projection service business, the Company will continue to optimize the brightness,color, dynamic range and other aspects of core products, give full play to the advantages of product energyconservation and environmental protection, continue to expand the scale of light source upgrading andtransformation business and upgrade customer and equipment maintenance systems to bring customers abetter service experience. With the boost of overseas cinema market demand, the Company will give full playto the core competitiveness of products, vigorously carry out overseas light source transformation business,and increase the market share of overseas markets.
In terms of professional display business, the Company continues to strengthen the arrangement of laserhighlighting products, increase the arrangement in lighting, cultural tourism, large-scale venue performingarts market, etc., as well as accelerate the transformation of education business to higher vocational education,and actively develop the overseas professional display market to further expand the coverage of overseasmarkets.
In terms of intelligent projection, the Company will strengthen the core technology competitivenessthrough technology iteration and product power improvement, accelerate the overseas arrangement whiledeeply cultivating the domestic projection market, and jointly expand and strengthen the laser displayindustry. The subsidiary Formovie Technology will deepen the cost-effective product route, enrich thecategories of its own brand intelligent projection products, and continue to focus on the construction of itsown brand.
In terms of other innovative businesses, the Company increases its core competitive advantages, deepensthe strategic arrangement of cutting-edge application fields, and accelerates the commercialization ofinnovative technologies such as AR optics and ALPD
?
5.0 laser display technology with display products.
(IV) Others
□ Applicable √ N/A
VII. Information not disclosed according to the standard due to inapplicability of the standard,
involving State secrets or trade secrets or other reasons, and explanation about the relevantreasons
□ Applicable √ N/A
Section IV Corporate Governance
I. Corporate governance
√ Applicable □ N/A
During the reporting period, in accordance with the requirements of laws and regulations such as theCompany Law, the Securities Law, the Rules for the Listing of Stocks on the Science and TechnologyInnovation Board of the Shanghai Stock Exchange, the Self-Regulatory Guidelines for Listed Companies onthe Science and Technology Innovation Board of the Shanghai Stock Exchange and the Articles of Association,and in combination with the actual operating conditions of the Company, the Company continuouslyimproved the corporate governance structure, continued to improve the Company's internal governance andcontrol system, and the Company's standard operation level and governance level. During the reporting period,the actual status of corporate governance met the requirements of the relevant regulatory documents on thegovernance of listed companies.(Ⅰ) About the Company and its controlling shareholdersDuring the reporting period, the controlling shareholders and actual controllers of the Company regulatedtheir own behavior, exercised their shareholder rights and fulfilled their obligations in strict accordance withthe Governance Guidelines for Listed Companies, the Rules for the Listing of Stocks on the Science andTechnology Innovation Board of the Shanghai Stock Exchange, and the Self-Regulatory Guidelines for ListedCompanies on the Science and Technology Innovation Board of the Shanghai Stock Exchange. TheCompany's major decisions are subject to the corresponding approval procedures in accordance with theArticles of Association, etc., and the controlling shareholders and actual controllers have no right to directly orindirectly interfere in the Company's decision-making and business activities beyond the shareholders' generalmeeting. In the Company, controlling shareholder cannot occupy the Company's funds or provide guaranteesfor other controlling shareholders; the Company has an independent and complete business system andindependent operation ability.（II）Shareholders and the General Meeting of ShareholdersThe General Meeting of Shareholders is the highest authority of the Company. During the reportingperiod, the Company held a total of 4 general meetings of shareholders; the convening, convening, voting,information disclosure, etc. of the shareholders' general meeting are strictly carried out in accordance withprovisions and requirements of relevant laws and regulations, normative documents and Company rules andregulations such as the Company Law, the Articles of Association, and the Rules of Procedure of the GeneralMeeting of Shareholders, and the content of the resolution is legal and valid, and the witness lawyer shallwitness the scene and issue a legal opinion. The Company treats all shareholders equally, allows moreshareholders to participate in the shareholders' meeting through legal and effective methods such as on-siteand online, fully protects the equal rights of all shareholders, especially small and medium-sized shareholders,ensuring that each shareholder has the right to know and participate in the Company's affairs in accordancewith the law, and fully exercise the right to vote.
（III）Directors and the Board of Directors
The Board of Directors is the permanent decision-making and management body of the Company.During the reporting period, the Company held a total of 11 meetings of the Board of Directors; theconvocation and convening of the Board of Directors are legal and compliant, and the Company strictlycomplies with provisions and requirements of relevant laws and regulations, normative documents andCompany rules and regulations such as the Articles of Association and the Rules of Procedure of the Board ofDirectors. The second Board of Directors of the Company has 7 directors, including 3 independent directors,and the composition of the Board of Directors and the qualifications of the Board of Directors meet therequirements of laws and regulations, and all of them have the professional knowledge, skills and qualitynecessary for directors. All directors carry out their work in accordance with regulations and requirements,attend the Board of Directors, special committees and shareholders' meetings on time, perform their dutiesand obligations diligently and conscientiously, and actively safeguard the overall interests of the Companyand shareholders; at the same time, they can actively participate in relevant training and be familiar withrelevant laws and regulations.
The Board of Directors has four special committees: Audit Committee, Remuneration and AssessmentCommittee, Strategy Committee and Nomination Committee, whose personnel composition and qualificationsmeet the requirements of laws and regulations and the Articles of Association, and the members of theCommittee are diligent and conscientious to provide full protection for the Board of Directors to makescientific decisions on the Company.
（IV）Supervisors and the Board of Supervisor
The Board of Supervisors is the supervisory body of the Company. During the reporting period, theCompany held a total of 11 supervisory meetings; the convocation and convening of the Board of Supervisorsare legally compliant, and the Company strictly complies with the relevant laws and regulations, normativedocuments and provisions and requirements of the Company's rules and regulations such as the Articles ofAssociation and the Rules of Procedure of the Board of Supervisors. The second Board of Supervisors of theCompany is composed of 3 supervisors, including 1 employee representative supervisor, the composition ofthe Board of Supervisors and the qualifications of the members of the Board of Supervisors meet therequirements of laws and regulations, and they all have professional knowledge and work experience. Allsupervisors can independently and effectively perform their duties of supervising and inspecting majormatters and financial status of the Company, as well as directors and senior management, and activelysafeguard the legitimate rights and interests of the Company and all shareholders.（V）Information disclosure and investor relations managementDuring the reporting period, the Company further improved the information disclosure management, inaccordance with relevant laws and regulations, the Information Disclosure Management System and InvestorRelations Management System and other relevant requirements, the Company's disclosed information is true,accurate, complete, timely and fair, the disclosure content is concise and easy to understand, and fully revealsrisks to facilitates all shareholders to consult. The designated website for the Company's informationdisclosure is the Shanghai Stock Exchange website (www.sse.com.cn), and the designated newspapers forinformation disclosure are China Securities News, Shanghai Securities News, Securities Daily and SecuritiesTimes to ensure that the shareholders of the Company can obtain the Company's information fairly.The Company attaches importance to investor relations management, enables investors to learn about theCompany's operation through field research, investor hotline (0755-32950536), investor email(IR@appotronics.cn), online performance briefing, Shanghai Stock Exchange "E Interactive" platform andWeChat public account (Appotronics) and other channels to ensure active communication with investors, toprotect investors' right to know and participate, effectively safeguard the legitimate rights and interests ofinvestors, especially small and medium-sized investors, and improve the smooth information exchangebetween investors and the Company.
（VI）Registration of insiders
During the reporting period, in accordance with laws and regulations and the relevant requirements ofthe Insider Information Management System on insider management, the Company registered and filedrelevant personnel involved in insider information in the regular reporting, repurchase of shares and otherrelevant major events; during the trading window period, the Company reminded the Company's directors,supervisors, senior management, core technical personnel and other information insiders. At the same time,the Company's directors, supervisors, senior management and related personnel have continuouslystrengthened the publicity and study of laws and regulations related to the prevention and control of insidertrading, strengthened the awareness of confidentiality, and no cases of information insiders illegally usinginsider information to buy and sell the Company's stocks have been found.
Is there major deviation in the corporate governance from laws, administrative regulations, and theregulations of CSRC on the governance of listed companies; if yes, specify the reasons.
□ Applicable √ N/A
II. Give an explanation if the Company cannot guarantee its independence and ability to operate
independently due to its relationship with the controlling shareholder in business, personnel, assets,
organization, financial and other affairs.
□ Applicable √ N/A
Information about the business identical or similar to that of the Company operated by the controllingshareholder, actual controller, and other units under their control, impact of horizontal competition ormajor changes in horizontal competition on the Company, measures that have been taken, solutionprogress, and subsequent solution plans.
□ Applicable √ N/A
Information about horizontal competition operated by the controlling shareholder, actual controller, andother units under their control causing material adverse effects to the Company.
□ Applicable √ N/A
III. General meetings of shareholders held
| Session | Date of meeting | Reference to Resolutions published on the designated website | Date of disclosure of resolutions | Resolution |
| 1st extraordinary general meeting of shareholders in 2022 | March 29,2022 | www.sse.com.cn | March 30,2022 | All proposals are reviewed and passed. |
| 2nd extraordinary general meeting of shareholders in 2022 | April 22,2022 | www.sse.com.cn | April 23,2022 | |
| Annual general meeting of shareholders in 2021 | May 25,2022 | www.sse.com.cn | May 26,2022 | |
| 3rd extraordinary general meeting of shareholders in 2022 | September 6,2022 | www.sse.com.cn | September 7,2022 |
Extraordinary general meetings convened at the request of preferred shareholders with resumed voting rights
□ Applicable √ N/A
Explanation about the general meetings of shareholders
□ Applicable √ N/A
IV. Implementation of and changes in arrangements of differentiated voting rights during thereporting period
□ Applicable √ N/A
V. Governance of red-chip structure companies
□ Applicable √ N/A
VI. Directors, supervisors, and senior officers(I) Changes in shareholding and remunerations of current directors, supervisors, senior officers and key technical staff and the former directors, supervisors,senior officers and key technical staff who left the Company during the reporting period
√ Applicable □ N/A
Unit: Share
| Name | Title (Note) | Gender | Age | Beginning date of term of office | Expiry date of term of office | Number of shares held as at January 1, 2021 | Number of shares held as at December 31, 2021 | Change in shareholding | Cause of change | Total Remuneration (inclusive of tax) received from the Company during the reporting period (in RMB 0’000) | Whether or not receive any remuneration from any affiliate of the Company |
| LI Yi | Chairman | Male | 52 | July 18, 2018 | August 2,2024 | 0 | 0 | - | - | 308.77 | No |
| General Manager | December 31, 2021 | ||||||||||
| key technical staff | - | ||||||||||
| YU Zhuoping | Director | Male | 62 | March 29, 2022 | August 2, 2024 | 0 | 0 | - | - | 10.86 | No |
| ZHANG Wei | Director | Male | 47 | August 3,2021 | August 2, 2024 | 0 | 0 | - | - | 225.83 | No |
| Deputy Genera Manager | December 31, 2021 | ||||||||||
| NING Xiangdong | Independent director | Male | 57 | July 18, 2018 | August 2,2024 | 0 | 0 | - | - | 18 | No |
| TANG Guliang | Independent director | Male | 60 | July 18, 2018 | August 2,2024 | 0 | 0 | - | - | 18 | No |
| CHEN Youchun | Independent director | Male | 46 | August 3, 2021 | August 2,2024 | 0 | 0 | - | - | 18 | No |
| WANG Yingxia | Director on behalf of the staff and workers | Female | 41 | July 15, 2021 | August 2,2024 | 6,000 | 78,124 | 72,124 | Equity incentives | 77.07 | No |
| Financial Director | August 3,2021 | ||||||||||
| GAO Lijing | Chairperson of the Board of Supervisors | Female | 42 | July 18, 2018 | August 2,2024 | 0 | 0 | - | - | 71.59 | No |
| SUN Hongdeng | Supervisor | Male | 41 | August 3,2021 | August 2,2024 | 3,000 | 3,000 | - | - | 68 | No |
| WANG Yanyun | Director on behalf of the staff and workers | Female | 46 | July 18, 2018 | August 2,2024 | 0 | 0 | - | - | 42.35 | No |
| Chen Yasha | Board Secretary | Female | 32 | April 29,2022 | August 2,2024 | 0 | 18,750 | 18,750 | Equity incentives | 30.98 | No |
| HU Fei | Key technical staff | Male | 42 | - | - | 30,000 | 190,316 | 160,316 | Equity incentives | 137.71 | No |
| YU Xin | Key technical staff | Male | 42 | - | - | 15,000 | 103,752 | 88,752 | Equity incentives | 134.15 | No |
| WANG Lin | Key technical staff | Male | 41 | - | - | 13,000 | 101,752 | 88,752 | Equity incentives | 84.95 | No |
| WANG Zeqin | Key technical staff | Male | 45 | August 23，2021 | - | 0 | 90,752 | 90,752 | Equity incentives | 89.32 | No |
| GUO Zuqiang | Key technical staff | Male | 32 | - | - | 0 | 76,052 | 76,052 | Equity incentives | 69.45 | No |
| BO Lianming | Director (retired) | Male | 60 | July 18, 2018 | March 11, 2022 | 30,000 | 30,000 | - | - | - | No |
| LIANG Guanning | Deputy General Manager(retired) | Male | 43 | December 31, 2021 | July 1,2022 | 0 | 0 | - | - | 110.62 | No |
| YAN Li | Board Secretary(retired) | Female | 39 | May 19, 2020 | April 29,2022 | 15,000 | 15,000 | - | - | 19.79 | No |
| Total | - | - | - | - | - | 112,000 | 707,498 | 595,498 | - | 1,535.43 | / |
Note:
(1) As of the end of the reporting period, LI Yi indirectly holds the Company's shares through Shenzhen Appotronics Holdings Limited, Shenzhen Yuanshi Laser Industrial InvestmentConsulting Partnership (LP), Shenzhen Appotronics Daye Investment Partnership (LP), Shenzhen Appotronics Hongye Investment Partnership (LP), Shenzhen Jinleijing Investment LimitedPartnership(LP) and Shenzhen Appotronics Chengye Consulting Partnership(LP); WANG Yingxia, GAO Lijing, WANG Yanyun, HU Fei, YU Xin, GUO Zuqiang, WANG Lin, etc.indirectly hold the Company's shares through the shareholding platforms Shenzhen Appotronics Hongye Investment Partnership (LP) and Shenzhen Appotronics Daye Investment Partnership(LP); YU Xin and GUO Zuqiang indirectly hold the Company's shares through the shareholding platform Shenzhen Appotronics Daye Investment Partnership (LP); WANG Lin indirectlyholds Company's shares through the shareholding platform Shenzhen Appotronics Hongye Investment Partnership (LP). The aforesaid indirect shareholding has not changed during thereporting period;
(2) The Company held the eighth meeting of the second session of the Board of Directors on March 11, 2022 and March 29, 2022, and the first extraordinary General Meeting of Shareholdersin 2022 respectively, and elected Mr. YU Zhuoping as the director of the second Board of Directors of the Company, and the above disclosed remuneration is his total pre-tax remunerationobtained from the Company from May 2022 to the end of the reporting period;The Company held the 12th meeting of the second session of the Board of Directors on April 29, 2022, and appointed Ms. CHEN Yasha as the secretary of the second session of theBoard of Directors of the Company, and the above disclosed remuneration was her total amount of pre-tax remuneration received from the Company from April 2022 to the end of thereporting period.
(3) Mr. LIANG Guanning, the former deputy general manager of the Company, resigned from the position of Deputy General Manager of the Company on July 1, 2022 due to personalreasons, and the above disclosed remuneration is his total pre-tax remuneration received from the Company from January 1, 2022 to June 30, 2022; Ms. YAN Li, the former secretary of theBoard of Directors of the Company, resigned as the secretary of the Board of Directors of the Company on April 29, 2022 due to family and physical reasons, and the above disclosedremuneration is the total amount of pre-tax remuneration received by her from the Company from January 1, 2022 to April 29, 2022.
| Name | Main work experience |
| LI Yi | LI Yi, male, Chinese, received a bachelor's degree from Tsinghua University and a master's and doctoral degree from the University of Rochester. He founded the Company in October 2006 and served as the chairman of the Company since December 2010, and won the honors of "2020 Shenzhen Science and Technology Award Mayor Award" and "2021 Quality Development Leader". |
| YU Zhuoping | YU Zhuoping, male, born in January 1960, Chinese, with no right of permanent residence abroad, obtained a bachelor's degree and a master's degree in mechanical engineering from Tongji University, and a doctorate degree in automotive engineering from Tsinghua University. He is currently a professor at Tongji University, director of the National Intelligent New Energy Vehicle Collaborative Innovation Center, vice chairman of the Society of Automotive Engineers of China, vice chairman and director of the Expert Committee of China Hydrogen Energy Alliance, chairman of Tongji Automobile Design and Research Institute Co., Ltd., chairman of Nanchang Jiling New Energy Technology Co., Ltd., director of Shanghai Motor Vehicle Testing and Certification Technology Research Center Co., Ltd., director of Beijing Guohydrogen Zhonglian Hydrogen Technology Research Institute Co., Ltd., chairman of Shanghai Intelligent New Energy Vehicle Technology Innovation Platform Co., Ltd., director of Appotronics Corporation Limited, non-executive director of Huazhong In-Vehicle Holdings Co., Ltd., independent director of Weichai Power Co., Ltd., independent director of Huayu Automotive Systems Co., Ltd., independent director of Shanghai Highly (Group) Co., Ltd., independent director of Ningbo Shenglong Automotive Powertrain System Co., Ltd., and independent director of Jiangling Motors Co., Ltd. |
| ZHANG Wei | ZHANG Wei, male, born in November 1975, Chinese, received a doctorate degree from Indiana University, and is a practicing lawyer in the State of New York. He is currently the director and deputy general manager of Appotronics Corporation Limited, and has served as the legal director of Legend Holdings Co., Ltd., the general manager of the legal department of China Vanke Co., Ltd., the vice president of Qifei International Development Co., Ltd., the vice president of Tianjin Qisi Technology Co., Ltd., and the independent director of Appotronics Corporation Limited. |
| WANG Yingxia | WANG Yingxia, female, born in September 1982, Chinese, with no right of permanent residence abroad, got the bachelor degree. She is currently the director and financial director of Appotronics Corporation Limited, and has successively served as the financial director and financial manager of YLX Incorporated, and the deputy director of the finance department of Appotronics Corporation Limited. |
| NING Xiangdong | NING Xiangdong, male, born in May 1965, Chinese, with no right of permanent residence abroad, got the Ph.D. of Tsinghua University. He is currently a professor and doctoral supervisor of the School of Economics and Management of Tsinghua University, and an independent director of Appotronics Corporation Limited, an independent director of Sinopec Marketing Co., Ltd., an independent director of Sinochem Energy Co., Ltd., an independent director of MH Robot＆Automation Co., Ltd., an independent director of Xiamen Bank Co., Ltd., an external director of Shandong Heavy Industry Group Co., Ltd., a supervisor of Beijing Xiaoheiban Edu＆Tech Co., Ltd., and a former teaching assistant, lecturer and associate professor of Tsinghua University, executive deputy director of China Center for Economic Research, Tsinghua University. |
| TANG Guliang | TANG Guliang, male, born in August 1962, Chinese, with no right of permanent residence abroad, received a doctorate degree from the Institute of Fiscal Science, Ministry of Finance. He is currently a professor and doctoral supervisor of the International Business School of the University of International Business and Economics, an independent director of Appotronics Corporation Limited, an independent director of Shanghai Fosun Pharmaceutical (Group) Co., Ltd., an independent director of Jointown Pharmaceutical Group Co., Ltd., an independent director of Chongqing Changan Automobile Co., Ltd., an independent director of Jic Leasing Co., Ltd., an independent director of Three Gorges Capital Holdings Co., Ltd., and was the dean and professor of the School of Accountancy of Beijing Technology and Business University (formerly Beijing Business School). |
| CHEN Youchun | CHEN Youchun, male, born in April 1976, Chinese, with no right of permanent residence abroad, obtained a bachelor's degree from Southwest University of Political Science and Law and Northumbria University in the United Kingdom, a master's degree from Wuhan University, and a doctorate degree from Southwest University of Political Science and Law. He is currently a partner of Beijing JunZeJun (Shenzhen) Law Firm, and an independent director of Appotronics Corporation Limited, an independent director of Nuode New Materials Co., Ltd., an independent director of ValueHD Corporation, and an independent director of Joy Wing Mau Fruit Technologies Co., Ltd. |
| GAO Lijing | GAO Lijing, female, born in June 1980, Chinese, with no right of permanent residence abroad, master's degree student at Chinese University of Hong Kong, obtained legal professional qualification certificate through the national judicial examination. She is currently the chairman of the supervisory board and the deputy |
| general manager of the legal center of Appotronics Corporation Limited, and has worked in the South China Intellectual Property Office of Foxconn Technology Group Co., Ltd. and the Intellectual Property and Legal Affairs Center of Netac Technology Co., Ltd. | |
| SUN Hongden | SUN Hongdeng, male, born in January 1981, Chinese, with no right of permanent residence abroad, a Master of Arts from Hong Kong Metropolitan University. He is currently a supervisor and director of the audit department of Appotronics Corporation Limited, and once worked for Huawei Technologies Co., Ltd. |
| WANG Yanyun | WANG Yanyun, female, born in April 1977, Chinese, with no right of permanent residence abroad, obtained a bachelor degree. She is currently a supervisor and deputy director of public affairs of Appotronics Corporation Limited, and joined the Company in July 2013. |
| Chen Yasha | CHEN Yasha, female, born in January 1990, Chinese, no right of permanent residence abroad, obtained the master's degree in finance, and the qualification certificate of board secretary of the science and technology innovation board and the qualification certificate of board secretary of the new third board. She joined the Company's board office in September 2018 and is currently the secretary of the Board of Directors of Appotronics Corporation Limited. |
| HU Fei | HU Fei, male, born in March 1980, Chinese, with no right of permanent residence abroad, received bachelor's, master's and doctoral degrees from Tsinghua University, and master's degree from Rentslill Institute of Technology. He is currently the core technical personnel and general manager of the product technology research and development center (II) of Appotronics Corporation Limited., successively served as a software engineer of Optical Research Associates, the vice president of research and development of YLX Incorporated and Shenzhen Appotronics Optoelectronic Technology Co., Ltd., and the chief technology officer and deputy general manager of Appotronics Corporation Limited. |
| YU Xin | YU Xin, male, born in February 1980, Chinese, with no right of permanent residence abroad, received a doctorate from Tsinghua University. He is currently the core technical personnel and vice president of Appotronics Corporation Limited., and has successively served as a senior software engineer at Schlumberger Technologies Co., Ltd., a senior researcher at Shenzhen Zhongguang Industrial Technology Research Institute, a senior researcher at Appotronics Corporation Limited., a general manager of the Cinema Solutions Business Unit, and the general manager of the Innovation Center and Cinema Business Division. |
| WANG Lin | WANG Lin, male, born in September 1981, Chinese, with no right of permanent residence abroad, obtained a bachelor's degree from the University of Science and Technology of China, a master's degree from Tsinghua University, and a doctorate degree from the Polytechnic University of Madrid, Spain. He is currently the core technical personnel of Appotronics Corporation Limited., the deputy general manager of the product technology research and development center (II), and has successively served as a senior optical engineer of Shanghai Philips Lighting (China) Investment Co., Ltd., and a senior optical researcher of Appotronics Corporation Limited. |
| WANG Zeqin | WANG Zeqin, male, born in December 1977, Chinese, with no right of permanent residence abroad, obtained a bachelor's degree from Jilin University, majoring in optoelectronic technology. He is currently the core technical personnel and the person in charge of the product technology R&D center (Ⅰ) of Appotronics Corporation Limited., successively served as R&D engineer and R&D expert of O-Net Information Technology (Shenzhen) Co., Ltd., researcher of Shenzhen YLX Incorporated, R&D director of R&D center of Appotronics Corporation Limited., person in charge of core device R&D center and complete machine R&D center. |
| GUO Zuqiang | GUO Zuqiang, male, born in April 1990, Chinese, with no right of permanent residence abroad, received a master's degree from Tsinghua University. He is currently the core technical personnel and the person in charge of the core device R&D center of Appotronics Corporation Limited., and has successively served as an optical engineer of YLX Incorporated and the R&D manager of Appotronics Corporation Limited. |
Other information
□ Applicable √ N/A
(II) Posts held by current directors, supervisors and senior officers and the former directors, supervisors and senior officers who left the Company during the
reporting period
1. Posts held at corporate shareholders of the Company
√ Applicable □ N/A
| Name | Corporate shareholder | Posts held at corporate shareholder | Beginning date of term of office | Expiry date of term of office |
| LI Yi | Shenzhen Appotronics Holdings Limited | Director | January 2014 | - |
| Shenzhen Appotronics Daye Investment Partnership (LP) | Representative of Managing Partner | October 2016 | - | |
| Shenzhen Appotronics Hongye Investment Partnership (LP) | Representative of Managing Partner | December 2015 | - | |
| Shenzhen Jinleijing Investment Limited Partnership (LP) | Representative of Managing Partner | October 2016 | - | |
| Shenzhen Yuanshi Laser Industrial Investment Consulting Partnership (LP) | Representative of Managing Partner | June 2016 | - | |
| Shenzhen Appotronics Chengye Consulting Partnership (LP) | Representative of Managing Partner | July 2017 | - | |
| Blackpine Investment Corp. Limited | Director | September 2018 | - | |
| Explanation about the posts held at corporate shareholders of the Company | None | |||
2. Posts held at other entities
√ Applicable □ N/A
| Name | Other entity | Posts held at other entity | Beginning date of term of office | Expiry date of term of office |
| LI Yi | Shenzhen YLX Technology Development Co., Ltd. | Chairman | January 2007 | - |
| Shenzhen Guangfeng Optoelectronic Technology Development Co., Ltd | Director and General Manager | October 2017 | - | |
| Shenzhen Appotronics Deye Consulting Partnership (LP) | Representative of Managing Partner | May 2018 | - | |
| Shenzhen Qingda Yifeng Investment Consulting Partnership (LP) | Representative of Managing Partner | October 2016 | - | |
| YLX (HONG KONG) Limited | Director | June 2008 | - | |
| APEX Fund Managed Limited | Director | November 2013 | - | |
| Long Pine Investment Ltd. | Director | September 2016 | - | |
| Atria Light Ltd. | Director | April 2018 | - | |
| Atria Light Hong Kong Limited | Director | April 2018 | - | |
| Longpines Financial Investment Ltd. | Director | May 2018 | - | |
| YU Zhuoping | Tongji University | professor | 1985 | - |
| National Intelligent New Energy Vehicle Collaborative Innovation Center | Director | 2012 | - | |
| Tongji Automotive Design and Research Institute Co., Ltd. | Director | December 2017 | - | |
| Shanghai AINEV Innovative Platform Co., Ltd. | Director | March 2018 | - |
| Huazhong In-Vehicle Holdings Co., Ltd. | Non-executive Director | August 2019 | - | |
| Weichai Power Co., Ltd. | Independent director | July 2020 | - | |
| Nanchang Jiling New Energy Technology Co., Ltd. | Director | August 2020 | - | |
| Shanghai Highly (Group) Co., Ltd. | Independent director | September 2020 | - | |
| Ningbo Shenglong Automotive Powertrain System Co., Ltd. | Independent director | October 2020 | - | |
| Beijing Guoqing Zhonglian Hydrogen Energy Technology Research Institute Co., Ltd. | Director | October 2020 | - | |
| Shanghai Motor Vehicle Inspection Certification & Tech Innovation Center Co., Ltd. | Director | April 2021 | - | |
| Huayu Automotive Systems Co., Ltd. | Independent director | July 2021 | - | |
| Jiangling Motors Corporation Limited | Independent director | October 2021 | - | |
| ZHANG Wei | GDC Technology Limited | Director | November 2022 | - |
| AVIC Vanke Co., Ltd. | Director | January 2018 | - | |
| Hengqin Vanke Cloudland Commercial Services Co., Ltd. | Director & General Manager | May 2017 | - | |
| Lijiang Banyan Tree International Travel Agency Co., Ltd. | Director | March 2018 | - | |
| Lijiang Banyan Tree Property Services Co., Ltd. | Director | May 2018 | - | |
| Lijiang Angsana Real Estate Development Co., Ltd. | Director | July 2018 | - | |
| Yangshuo Banyan Tree Hotel Co., Ltd. | Director | September 2018 | - | |
| Huangshan Banyan Tree Property Management Co., Ltd. | Director | September 2018 | - | |
| Huangshan Banyan Tree Tourism Development Co., Ltd. | Director | September 2018 | - | |
| Zhenro Services Group Co., Ltd. | Director | June 2020 | - | |
| Hangzhou Qifei Huachuang Technology Co., Ltd. | Director | January 2021 | - | |
| WANG Yingxia | Shenzhen Tiwu Technology Co., Ltd | Supervisor | January 2018 | - |
| NING Xiangdong | Tsinghua University | Professor & Doctoral Tutor | 1990 | - |
| Sinopec Sales Co., Ltd. | Independent director | December 2018 | - | |
| Shandong Heavy Industry Group Co., Ltd. | External director | December 2019 | - | |
| Xiamen Bank Co., Ltd. | Independent director | October 2017 | - | |
| Sinochem Energy Co., Ltd. | Independent director | August 2018 | - | |
| Beijing Shengge Education Technology Co., Ltd | Supervisor | January 2021 | - | |
| MH Robot & Automation Co., Ltd. | Independent director | December 2022 | - | |
| TANG Guliang | University of International Business and Economics | Professor & Doctoral Tutor | March 2006 | - |
| China JIC Leasing Co., Ltd. | Independent director | April 2017 | - | |
| Shanghai Fosun Pharmaceutical (Group) Co., Ltd. | Independent director | December 2019 | - | |
| Three Gorges Capital Holdings Co., Ltd. | Independent director | July 2019 | - | |
| Jointown Pharmaceutical Group Co., Ltd. | Independent director | November 2020 | - | |
| Chongqing Chang'an Automobile Co., Ltd | Independent director | June 2022 | - | |
| CHEN Youchun | Beijing Junzejun (Shenzhen) Law Firm | Partner | July 2004 | - |
| Nord New Materials Co., Ltd | Independent director | February 2018 | - | |
| Shenzhen Weihai De Technology Co., Ltd | Independent director | July 2020 | - | |
| Xinrongmao Fruit Industry Technology Group Co., Ltd | Independent director | October 2019 | - | |
| Explanation about the posts held at other entities | None | |||
(III) Remunerations of directors, supervisors, senior officers and key technical staff
√ Applicable □ N/A
In RMB 0’000
| Decision-making procedure regarding the remunerations of directors, supervisors and senior officers | According to the Articles of Association, the remuneration of directors is submitted to the Board of Directors and the General Meeting of Shareholders respectively after deliberation by the remuneration and evaluation committee of the Board of Directors, the remuneration matters of supervisors are deliberated by the Board of Supervisors and submitted to the General Meeting of Shareholders for deliberation, and the remuneration matters of executives are submitted to the Board of Directors for deliberation after deliberation by the remuneration and evaluation committee. |
| Basis for determining the remunerations of directors, supervisors and senior officers | For directors, supervisors and senior management who receive remuneration in the Company, their remuneration shall be determined in accordance with the relevant provisions of the Articles of Association and other relevant provisions, taking into account the market, industry level and personal ability, and the degree of contribution to the Company; non-independent directors who do not receive remuneration in the Company receive directors' allowances in accordance with the remuneration package approved by the general meeting; independent directors receive independent director allowance in accordance with the remuneration package approved by the General Meeting of Shareholders. The Board of Directors of the Company has established a Remuneration and Appraisal Committee, which is responsible for evaluating the performance of the Company's directors and senior management, as well as formulating and reviewing remuneration policies and plans. |
| Remunerations actually paid to directors,supervisors and senior officers | During the reporting period, the remunerations actually paid to directors, supervisors and senior officers are consistent with the relevant information disclosed by the Company. |
| Total remunerations paid to directors, supervisors and senior officers as of the end of the reporting period | 1,535.43 |
| Total remunerations paid to key technical staff as of the end of the reporting period | 824.35 |
Note: Dr. LI Yi, Chairman of the Company, General Manager of the Company, are key technical staff of the Company, and the remunerations actually paid to keytechnical staff as of the end of the reporting period contain their remunerations.
(IV) Changes in directors, supervisors, senior officers and key technical staff
√ Applicable □ N/A
| Name | Position | Change | Cause of change |
| YU Zhuoping | Director | Elected | After the deliberation and approval of the Company’s eighth meeting of the second Board of Directors and the first extraordinary General Meeting of Shareholders in 2022, Mr. YU Zhuoping was elected as a director of the second Board of Directors of the Company. |
| Chen Yasha | Secretary of the Board of Directors | Recruited | After the deliberation and approval of the Company’s 12th meeting of the second Board of Directors, Ms.CHEN Yasha was appointed as the secretary of the second Board of Directors of the Company. |
| BO Lianming | Director | Left the Company | Resigned as a director of the second term of the Board and a member of the Strategy Committee of the second term of the Board of Directors due to personal health matters. |
| LIANG Guanning | Deputy General Manager | Left the Company | Resigned as the deputy general manager of the Company due to personal reasons. |
| YAN Li | Secretary of the Board of Directors | Left the Company | Resigned as the secretary of the Company’s second Board of Directors due to personal, family and physical reasons. |
(V) Penalties imposed by the securities regulatory authorities in the past three years
□ Applicable √ N/A
(VI) Others
□ Applicable √ N/A
VII. Board meetings held during the reporting period
| Session | Date of meeting | Resolution |
| 8th meeting of the second Board of Directors | March 11,2022 | The meeting deliberated and approved 6 proposals, including Proposal on Electing Mr. YU Zhuoping as a Non-Independent Director of the Company and the Proposal on the Estimated Comprehensive Credit Line and Guarantee Line of the Company and its Subsidiaries in 2022. |
| 9th meeting of the second Board of Directors | March 18,2022 | The meeting deliberated and approved 2 proposals, including Proposal on the Extension of Some Fundraising and Investment Projects and the Proposal on the Plan of Repurchasing the Company's Shares by Centralized Bidding Transaction. |
| 10th meeting of the second Board of Directors | April 6,2022 | The meeting deliberated and approved 3 proposals, including the Proposal on the Company's Shareholder Return Plan for the Next Three Years (2022-2024) and the Proposal on the New Special Account for Over-raised Funds. |
| 11th meeting of the second Board of Directors | April 25,2022 | The meeting deliberated and approved 17 proposals including the Proposals on the Company's <2021 Annual Report of the Board of Directors> and the Proposal on the Company's <2021 Annual General Manager Work Report>. |
| 12th meeting of the seco | April 29,2022 | The meeting deliberated and approved 4 proposals, including the Proposal on the Company's <2022 Restricted Stock |
| nd Board of Directors | Incentive Plan (Draft)> and Summary Thereof, and the Proposal on the Company's <2022 Restricted Stock Incentive Plan Implementation Assessment Management Measures>. | |
| 13th meeting of the second Board of Directors | May 25,2022 | The meeting deliberated and approved the Proposal on the Initial Grant of Restricted Shares to Incentive Recipients. |
| 14th meeting of the second Board of Directors | June 29,2022 | The meeting deliberated and approved 5 proposals, including the Proposal on the Use of Temporarily Idle Raised Funds for Cash Management and the Proposal on Adjusting the Internal Investment Structure of Some Fundraising and Investment Projects. |
| 15th meeting of the second Board of Directors | August 18,2022 | The meeting deliberated and approved 6 proposals, including the Full Text of the 2022 Semi-annual Report and Summary Thereof, and the 2022 Semi-annual Special Report on the Deposit and Use of Raised Funds. |
| 16th meeting of the second Board of Directors | October 28,2022 | The meeting deliberated and approved 3 proposals, including the Third Quarter Report of 2022 and Proposal on Carrying out Foreign Exchange Derivatives Trading Business. |
| 17th meeting of the second Board of Directors | November 14,2022 | The meeting deliberated and approved 2 proposals, including the Proposal on the Cancellation of Partially Granted 2019 Restricted Stocks and The Third Vesting Period of the Initial Granted Part of the 2019 Restricted Stock Incentive Plan and the Second Vesting Period of the Reserved Granted Part Meet the Vesting Conditions. |
| 18th meeting of the second Board of Directors | December 27,2022 | The meeting deliberated and approved 2 proposals, including Proposal on Granting Reserved Restricted Shares to Incentive Recipients of the 2022 Restricted Stock Incentive Plan and the Proposal on Changing the Registered Capital and Amendment<Articles of Association> and Granting Part of the Second Vesting Period to Meet the Vesting Conditions. |
VIII. Performance of duties by the directors(I) Attendance by the directors of the meetings of the Board of Directors and shareholders
| Name of the Director | Whether or not an independent director | Attendance of the meetings of the Board of Directors | Attendance of the general meetings of shareholders | ||||||
| Meetings the director should have attended in 2021 | Meetings attended in person | Meetings attended through communication equipment | Meetings attended by proxy | Absence times | Whether the director has been absent from two consecutive meetings | General meetings of shareholders attended | |||
| LI Yi | NO | 11 | 11 | 9 | 0 | 0 | No | 4 | |
| YU Zhuoping | NO | 9 | 9 | 7 | 0 | 0 | No | 3 | |
| ZHANG Wei | NO | 11 | 11 | 9 | 0 | 0 | No | 4 | |
| WANG Yingxia | NO | 11 | 11 | 9 | 0 | 0 | No | 4 | |
| NING Xiangdong | Yes | 11 | 11 | 9 | 0 | 0 | No | 4 | |
| TANG Guliang | Yes | 11 | 11 | 9 | 0 | 0 | No | 4 | |
| CHEN Youchun | Yes | 11 | 11 | 9 | 0 | 0 | No | 4 | |
Explanation about absence from two consecutive meetings of the Board of Directors
□ Applicable √ N/A
| Meetings of the Board of Directors held in 2012 | 11 |
| Where: Face-to-face meetings | 0 |
| Meeting held through communication equipment | 9 |
| Meetings held both in the form of face-to-face meeting and through communication equipment | 2 |
(II) Objections raised by directors to matters of the Company
□ Applicable √ N/A
(III) Others
□ Applicable √ N/A
IX. Specific-purpose committees under the Board of Directors
√ Applicable □ N/A
(1). Members of specific-purpose committees under the Board of Directors
| Category of specific-purpose committee | Members |
| Audit Committee | TANG Guliang (chairperson), CHEN Youchun, LI Yi |
| Nomination Committee | CHEN Youchun (chairperson), NING Xiangdong, LI Yi |
| Compensation and Performance Assessment Committee | NING Xiangdong (chairperson), TANG Guliang, ZHANG Wei |
| Strategy Committee | LI Yi (chairperson), YU Zhuoping, NING Xiangdong |
(2). The Audit Committee held 7 meetings during the reporting period
| Date of meeting | Content of meeting | Major opinions and suggestions | Performance of other duties |
| April 3,2022 | The meeting deliberated and approved the Proposal on the Company's Shareholder Return Plan for the Next Three Years (2022-2024) | All proposals are reviewed and passed. | None |
| April 13,2022 | Report on the audit implementation stage of the 2021 financial statements. | ||
| April 15,2022 | The meeting deliberated and approved 8 proposals, including the Proposal on the Company’s < Report on the Performance of Duties of the Audit Committee of the Board of Directors in 2021> and the Proposal on the Company's <2021 Annual Financial Final Report>. | ||
| April 25,2022 | Report on the completion of the audit of the 2021 financial statements. | ||
| August 15,2022 | The meeting deliberated and approved 2 proposals, including the Full Text of the 2022 Semi-annual Report and Summary Thereof and the Proposal on the Expected Situation of New Daily Related Party Transactions in 2022. | ||
| October 28,2022 | The meeting deliberated and approved 3 proposals, including the Third Quarter Report of 2022 and the Proposal on Carrying out Foreign Exchange Derivatives Trading Business. | ||
| December 23,2022 | Report on the audit plan for the 2022 financial statements. |
(3). The Nomination Committee held 2 meetings during the reporting period
| Date of meeting | Content of meeting | Major opinions and suggestions | Performance of other duties |
| March 8,2022 | The meeting deliberated and approved the Proposal on Electing Mr. YU Zhuoping as a Non-Independent Director of the Company | All proposals are reviewed and passed. | None |
| April 27,2022 | The meeting deliberated and approved the Proposal on the Appointment of the Secretary of the Board of Directors of the Company. |
(4). The Remuneration and Appraisal Committee held 4 meetings during the reporting period
| Date of meeting | Content of meeting | Major opinions and suggestions | Performance of other duties |
| April 15,2022 | The meeting deliberated and approved 2 proposals, including Proposal on the Company's Directors in 2021 and 2022 Remuneration Plan and the Proposal on the Company's Senior Management's 2021 Remuneration and 2022 Annual Remuneration Plan. | All proposals are reviewed and passed. | None |
| April 27,2022 | The meeting deliberated and approved 2 proposals, including Proposal on the Company's < 2022 Restricted Stock Incentive Plan (Draft) and Summary Thereof> and the Proposal on the <Implementation Assessment Management Measures for the Company's 2022 Restricted Stock Incentive Plan>. | ||
| June 27,2022 | The meeting deliberated and approved 2 proposals, including Proposal on the Cancellation of Partially Granted 2021 Restricted Stocks and the Third Vesting Period of the Initial Granted Part of the 2021 Restricted Stock Incentive Plan and the Second Vesting Period of the Reserved Granted Part Meet the Vesting Conditions. | ||
| November 13,2022 | The meeting deliberated and approved 2 proposals, including the Proposal on the Cancellation of Partially Granted 2019 Restricted Stocks and The Third Vesting Period of the Initial Granted Part of the 2019 Restricted Stock Incentive Plan and the Second Vesting Period of the Reserved Granted Part Meet the Vesting Conditions. |
(5). The Strategy Comittee held 1 meeting during the reporting period
| Date of meeting | Content of meeting | Major opinions and suggestions | Performance of other duties |
| October 28,2022 | The meeting deliberated and approved 2 proposals, including the Proposal on Carrying out Foreign Exchange Derivatives Trading Business and Management System for Foreign Exchange Derivatives Trading Business. | All proposals are reviewed and passed. | None |
(6). Specific description of objections
□ Applicable √ N/A
X. Risks of the Company identified by the Board of Supervisors
□ Applicable √ N/A
The Board of Supervisors raised no objections with respect to matters under supervision during thereporting period.XI. Employees of the parent company and major subsidiaries as of the end of the reporting period(I) Employees
| Number of active employees of the parent company | 1,200 |
| Number of active employees of major subsidiaries | 437 |
| Total number of active employees | 1,637 |
| Number of retired employees for whom the parent company and major subsidiaries need to pay certain expenses | 0 |
| Profession | |
| Category | Number of employees |
| Production staff | 688 |
| Sales staff | 230 |
| Technology staff | 521 |
| Financial staff | 41 |
| Management staff and administrative staff | 157 |
| Total | 1,637 |
| Education | |
| Level of education | Number |
| Master and above | 192 |
| Undergraduate | 734 |
| College or below | 711 |
| Total | 1,637 |
(II) Compensation policy
√ Applicable □ N/A
During the reporting period, the Company continued to take "distributing according to work, prioritizingefficiency and stressing equity and sustainable development" as the basic principles of salary management,combined with the Company's development strategy, annual business objectives, economic benefits, andcontinuously improved the salary performance management system with reference to market and industryconditions. The Company's employee salary depends on Company's economic benefits and the completion ofpersonal post responsibility goals, and the structural salary distribution form of "determining the salary bypost, determining the level by ability, and determining the award by performance". The salary is composed ofbasic salary, welfare allowance, performance bonus, etc., and assessment and incentive plans for employeesin different positions according to job classification are formulated to mobilize the enthusiasm of employeesin different positions.For directors, supervisors and senior management who receive remuneration in the Company, theCompany determines their remuneration in accordance with provisions of the Articles of Association andother relevant provisions, taking into account the market, industry level and personal ability, and the degree ofcontribution to the Company; for employees in other positions, the Company determines their basic salarybased on the international and local laws and regulations, combining the market, industry level, jobdifferentiation, ability and work experience and other factors, and determines their performance payaccording to the actual assessment situation.(III) Training programs
√ Applicable □ N/A
Adhering to the talent concept of "gathering top talents, working with excellent people, and achievingmore talents" and considering the Company's strategic development goals and actual needs of businessdevelopment, the Company continues to improve the talent training system, strengthen training management
to improve the business ability of employees and grow together with the Company, providing solid supportfor the Company's strategic development.
During the reporting period, the Company continued to focus on promoting organizational performanceimprovement as the core purpose, conducting training and product development targeting problems toempower core key talents to solve practical problems on the one hand, and develop various professionalknowledge/skills courses for key elites in various professional fields of the organization on the other hand.Moreover, the Company is committed to creating a sustainable talent training system, and continuouslyimproves the course system by introducing professional training at home and abroad and hiring well-knownlecturers in the industry to teach in-house products, technology, management, employee development andother professional courses. In order to promote employees’ diversified and comprehensive development, theCompany actively builds an internal lecturer team, encourages employees to continuously improve theirprofessionalism and professional skills, and stimulates their professional innovation and development.(IV) Outsourced workers
√ Applicable □ N/A
| Total man-hours of outsourced workers | 213,211 hours |
| Total remunerations paid to outsourced workers | RMB 5,120,958.64 |
XII. Proposals for profit distribution and capitalization of the capital reserve(I) Establishment, implementation or adjustment of the cash dividend policy
√ Applicable □ N/A
1. Cash dividend policy：
In April 2022, the Company's Board of Directors formulated the Shareholder Return Plan for the NextThree Years in accordance with relevant laws and regulations and the Articles of Association, and establisheda clear profit distribution mechanism on the basis of actively rewarding shareholders and sustainabledevelopment of the Company.
2.Implementation of cash dividend policy：
The Company held the 11th meeting of the second session of the Board of Directors on April 25, 2022and the 2021 Annual General Meeting on May 25, 2022, and deliberated and approved the Proposal on theCompany's 2021 Annual Profit Distribution Plan, the specific plan was: based on the total share capitalregistered on the record date of the implementation of equity distribution after deducting the shares in theCompany's special securities account for repurchase, a cash dividend of 1.05 yuan (tax inclusive) will bedistributed to all shareholders for every 10 shares, and the total amount of cash dividends will beRMB47,539,474.61 (tax inclusive). The distributed profit will not be converted into capital reserve funds, andbonus shares will not be given. The Company disclosed the 2021 Annual Equity Distribution ImplementationAnnouncement on June 22, 2022, the equity registration date for this dividend distribution is June 28, 2022,and the ex-dividend date is June 29, 2022. The Company's 2021 equity distribution plan has beenimplemented.(II) Special explanation about the cash dividend policy
√ Applicable □ N/A
| Whether the policy is in compliance with the provisions of the Articles of Association or the requirements of resolutions ed at the general meeting | √ Yes □ No |
| Are the distribution standards and ratios specific and clear | √ Yes □ No |
| Are the relevant decision-making procedure and mechanism complete | √ Yes □ No |
| Whether independent directors perform their duties and roles | √ Yes □ No |
| Whether small- and medium-sized shareholders have sufficient opportunities to express their opinions and requests, and are their legitimate rights and interests under sufficient protection | √ Yes □ No |
(III) If the Company made a profit in the reporting period and there’s profit distributable by theparent company to the shareholders, but the Company does not propose to distribute profits in cash,the Company shall explain the reason in detail and use of the undistributed profit.
□ Applicable √ N/A
(IV) Profit distribution and conversion of capital reserve into equity capital during the reportingperiod
√Applicable ?N/A
In RMB
| Number of bonus shares per 10 shares (in share) | 0 |
| Dividend per 10 shares (in RMB) (tax inclusive) | 0.54 |
| Conversion amount per 10 shares (in share) | - |
| Cash dividend amount (tax inclusive) | 24,635,207.05 |
| Net profit attributable to common shareholders of the listed company in the annual consolidated statements of dividends | 119,440,773.77 |
| Percentage of net profit attributable to common shareholders of listed companies in the consolidated statements (%) | 20.63 |
| The amount of cash dividends included in the repurchase of shares in cash | 19,371,239.41 |
| Total dividend amount (tax inclusive) | 44,006,446.46 |
| Total dividend amount as a percentage of net profit attributable to common shareholders of the listed company in the consolidated statements (%) | 36.85 |
Audited by Pan-China Certified Public Accountants (Special General Partnership), the Company's netprofit attributable to shareholders of listed companies in 2022 was RMB119.4408 million, the net profitrealized by the parent company was RMB192.5391 million, and the profit available for distribution byshareholders of the parent company at the end of the year was RMB579.7418 million.
The Company intended to distribute a cash dividend of 0.54 yuan (tax inclusive) to all shareholdersfor every 10 shares, and as of the disclosure date of this report, the total share capital of the Company was457,107,538 shares, after deducting the number of shares in the special securities account for repurchase of900,000 shares, the total proposed cash dividend was RMB24,635,207.05 (tax inclusive), accounting for
20.63% of the net profit attributable to shareholders of the listed Company in 2022. This year, no capitalreserve will be converted into share capital, and no bonus shares will be issued.
At the same time, according to the relevant provisions of the Self-Regulatory Guidelines for ListedCompanies on the Shanghai Stock Exchange No.7-Share Repurchase, the repurchase amount ofRMB19,371,239.41 (excluding stamp duty, transaction commissions and other transaction costs)implemented by the Company in 2022 was regarded as cash dividends, and the proportion of the repurchaseamount to the net profit attributable to shareholders of the listed company in 2022 was 16.22%. The proposalhas been deliberated and approved by the 19th meeting of the second Board of Directors, and needed to besubmitted to the Company's General Meeting of Shareholders for deliberation.XIII. Share incentive plan, employee stock ownership plan and other employee incentive measures of
the Company and their effect(I) Overview of share incentives
√ Applicable □ N/A
1. Share incentive plan during the reporting period
In RMB
| Name of plan | Type of incentive | Number of target shares | Proportion of target shares(%) | Number Of grantees | Proportion Of grantees (%) | Price of target shares granted |
| 2019 Restricted Share Incentive Plan | Type II restricted shares | 5,500,000 | 1.20 | 206 | 12.58 | 17.265 |
| 2021 Restricted Share Incentive Plan | Type II restricted shares | 18,500,000 | 4.05 | 242 | 14.78 | 17.34、18.34、20.84 |
| 2021 Second Restricted Share Incentive Plan | Type II restricted shares | 10,500,000 | 2.30 | 64 | 3.91 | 19.895、22.895 |
| 2022 Restricted | Type II | 10,500,000 | 2.30 | 107 | 6.54 | 15.395 |
| Share Incentive Plan | restricted shares |
Note: (1) The proportion of the number of incentive recipients refers to the proportion of the number ofincentive targets to the number of companies at the end of this reporting period;
(2) The price at which the target shares are granted under the equity incentive plan above has been adjustedaccording to the implementation of past profit distributions.
2. Implementation progress of the share incentive during the reporting period
√ Applicable □ N/A
Unit: share
| Name of plan | Number of equity incentives granted at the beginning of the year | Number of new equity incentives granted during the reporting period | Number of vested/exercised/unlocked during the reporting period | Number of vested/exercised/unlocked during the reporting period | Grant Price/Exercise Price (in RMB) | Number of equity incentives granted at the end of the period | Number of shares vested/exercised/unlocked at the end of the period |
| 2019 Restricted Share Incentive Plan | 1,829,600 | - | 1,493,140 | 1,469,140 | 17.265 | 0 | 1,469,140 |
| 2021 Restricted Share Incentive Plan | 17,100,000 | 1,400,000 | 4,084,700 | 2,881,497 | 17.34、18.34 | 8,529,528 | 2,881,497 |
| 2021 Second Restricted Share Incentive Plan | 8,400,000 | 2,100,000 | - | - | 19.895、22.895 | 10,500,000 | - |
| 2022 Restricted Share Incentive Plan | - | 8,648,080 | - | - | 15.395 | 8,648,080 | - |
3. Share-based payment recognized due to the share incentive during the reporting period
√ Applicable □ N/A
In RMB 0’000
| Name of plan | Completion of company-level assessment indicators during the reporting period | Share payment recognized during the reporting period |
| 2019 Restricted Share Incentive Plan | N/A | 363.71 |
| 2021 Restricted Share Incentive Plan | Not up to standard | 815.93 |
| 2021 Second Restricted Share Incentive Plan | Up to standard | 3,533.50 |
| 2022 Restricted Share Incentive Plan | Up to standard | 813.48 |
| Total | - | 5,526.62 |
(II) Incentives already disclosed in the interim announcements about which no new information isavailable
√ Applicable □ N/A
| Overview of Matters | Reference |
| On March 11, 2022 and March 29, 2022, the Company held the eighth meeting of the second session of the Board of Directors, the seventh meeting of the second session of the Board of Supervisors and the first extraordinary General Meeting of Shareholders in 2022, respectively, and the Proposal on Adjusting the Grant Price of Restricted Shares under the 2021 Restricted Stock Incentive Plan and the Proposal on Granting Reserved Restricted Stock to the Incentive Recipients of the 2021 Restricted Stock Incentive Plan and Proposal on Granting Reserved Restricted Stock to Incentive Recipients of the Second Restricted Stock Incentive Plan in 2021 and other related proposals have been deliberated and approved. | For details, please refer to the relevant announcements disclosed by the Company on the Shanghai Stock Exchange website (www.sse.com.cn) on March 14, 2022 and March 30, 2022 respectively. |
| On April 29, 2022, the Company held the 12th meeting of the second session of the Board of Directors and the 11th meeting of the second session of the Board of Supervisors, and the Proposal on the Company's <2022 Restricted Stock Incentive Plan (Draft)> and Summary Thereof and other relevant proposals have been deliberated and approved. | For details, please refer to the relevant announcement disclosed by the Company on the Shanghai Stock Exchange website (www.sse.com.cn) on |
| April 30, 2022. | |
| The Company held the 2021 Annual General Meeting on May 25, 2022, and the Proposal on the Company's <2022 Restricted Stock Incentive Plan (Draft) > and Summary Thereof and other relevant proposals have been deliberated and approved. | For details, please refer to the relevant announcement disclosed by the Company on the Shanghai Stock Exchange website (www.sse.com.cn) on May 26, 2022. |
| On May 25, 2022, the Company held the 13th meeting of the second session of the Board of Directors and the 12th meeting of the second session of the Board of Supervisors, and the Proposal on the Initial Grant of Restricted Shares to Incentive Recipients has been deliberated and approved. | |
| On June 29, 2022, the Company held the 14th meeting of the second session of the Board of Directors and the 13th meeting of the second session of the Board of Supervisors, and deliberated and approved the Proposal on the Cancellation of Partially Granted 2021 Restricted Stocks, the Proposal on Adjusting the Grant Price of the Company's Restricted Stock Incentive Plan, and the Proposal on the Initial Grant of the Company's 2021 Restricted Stock Incentive Plan to Meet the Vesting Conditions for the Initial Vesting Period and other relevant proposals. | For details, please refer to the relevant announcement disclosed by the Company on the Shanghai Stock Exchange website (www.sse.com.cn) on June 30, 2022. |
| On November 14, 2022, the Company held the 17th meeting of the second session of the Board of Directors and the 16th meeting of the second session of the Board of Supervisors, and deliberated and approved The Third Vesting Period of the Initial Granted Part of the 2019 Restricted Stock Incentive Plan and the Second Vesting Period of the Reserved Granted Part Meet the Vesting Conditions and Proposal on the Cancellation of Partially Granted Restricted Stocks and other relevant proposals. | For details, please refer to the relevant announcement disclosed by the Company on the Shanghai Stock Exchange website (www.sse.com.cn) on November 15, 2022. |
| On December 27, 2022, the Company held the 18th meeting of the second session of the Board of Directors and the 17th meeting of the second session of the Board of Supervisors, and deliberated and approved the Proposal on Granting Reserved Restricted Shares to Incentive Recipients of the 2022 Restricted Stock Incentive Plan and other proposals. | For details, please refer to the relevant announcement disclosed by the Company on the Shanghai Stock Exchange website (www.sse.com.cn) on December 29, 2022. |
Other information
□ Applicable √ N/A
Employee stock ownership plan
□ Applicable √ N/A
Other incentives
□ Applicable √ N/A
(III) Share incentives granted to directors, senior officers and key technical staff during the reportingperiod
1. Share options
□ Applicable √ N/A
2. Type I restricted shares
□ Applicable √ N/A
3. Type II restricted shares
√ Applicable □ N/A
Unit: Share
| Name | Title | Number of Restricted shares already granted as at the beginning of the reporting period | Number of Restricted shares granted during the reporting period | Exercise price of the restricted shares granted (RMB per share) | Number of restricted shares that could be vested in the reporting period | Number of restriced shares actually vested in the reporting period | Number of restricted shares already granted as of the end of the reporting period | Market Price as of the end of the reporting period (RMB per share) |
| LI Yi | Chairman, General Manager | 3,500,000 | 0 | 15.395 | 1,203,160 | 0 | 3,500,000 | 24.86 |
| Zhang Wei | Director and Deputy General | 0 | 700,000 | 15.395 | 0 | 0 | 700,000 | 24.86 |
| Manager | ||||||||
| Wang Yingxia | Director, Financial Director | 370,560 | 100,000 | 15.395 | 72,124 | 72,124 | 470,560 | 24.86 |
| Chen Yasha | Board Secretary | 222,750 | 210,000 | 15.395 | 18,750 | 18,750 | 432,750 | 24.86 |
| HU Fei | Key technical staff | 390,000 | 150,000 | 15.395 | 160,316 | 160,316 | 540,000 | 24.86 |
| YU Xin | Key technical staff | 520,000 | 550,000 | 15.395 | 88,752 | 88,752 | 1,070,000 | 24.86 |
| WANG Lin | Key technical staff | 420,000 | 210,000 | 15.395 | 88,752 | 88,752 | 630,000 | 24.86 |
| WANG Zeqin | Key technical staff | 422,000 | 210,000 | 15.395 | 90,752 | 90,752 | 632,000 | 24.86 |
| GUO Zuqiang | Key technical staff | 416,000 | 210,000 | 15.395 | 84,752 | 84,752 | 626,000 | 24.86 |
| Total | - | 6,261,310 | 2,340,000 | - | 1,807,358 | 604,198 | 8,601,310 | - |
(IV) Performance assessment mechanism for senior officers and the establishment and implementationof incentive mechanism for senior officers during the reporting period
√ Applicable □ N/A
The Board of Directors of the Company has established a Remuneration and Appraisal Committee,which is responsible for evaluating the performance of the Company's directors and senior management, aswell as formulating and reviewing remuneration policies and plans. The Company has established andcontinuously improved the employee performance evaluation system and salary system, formulated employeeassessment and incentive programs for different job levels and responsibilities according to job classification,and then motivated the work enthusiasm of employees in different positions. During the reporting period, theCompany's senior management personnel performed their duties diligently and conscientiously in accordancewith relevant regulations; the remuneration of senior management shall consist of basic salary and incentivebonus, etc., and shall be deliberated and approved by the Board of Directors.In addition, in order to further improve the Company's long-term incentive mechanism, motivate corepersonnel who play an important role in the Company's new growth curve in the future, and motivate theenthusiasm of targeting employees, the Company has successively launched restricted stock incentive plans toensure the realization of the Company's development strategy and business objectives.XIV. Measures and implementation for building internal control regulations during the reporting
period
√ Applicable □ N/A
(1) Internal control construction
During the reporting period, the Company carried out end-to-end business process audits in accordancewith the Basic Standards for Enterprise Internal Control, relevant guidelines and internal control regulatoryrequirements, and the priority of the Company's operational business, identified risks in the existing businessprocesses through a deep understanding of business logic, the objectives of business process design, andmulti-dimensional verification of actual business data, and led the business responsible units to carry outtimely rectification of process risks. Through circular audit and evaluation activities, we continue to improvethe internal control awareness of business personnel, drive business units to independently identify andimprove process risks, and improve the overall ability of internal control and governance of the Company. Onthe other hand, we strengthen the exercise of supervision power under the leadership of the audit committeeof the Board of Directors, strengthen the supervision of internal audit on the Company's internal control riskassessment, explore the root cause of risk problems, and ensure a thorough closed loop of internal control riskissues.
(2) Internal control supervision and evaluation
During the reporting period, the Company organized and carried out the internal control evaluation in2022 in accordance with the procedures stipulated in the Company's internal control standard system and the
Company's internal control evaluation method. According to the identification of material deficiencies in theCompany's internal control, the Company does not have material and important deficiencies in internalcontrol over financial reporting and non-financial reporting. The Board of Directors of the Company believesthat the internal control of financial reporting and non-financial reporting in all major business aspects hasbeen effectively conducted in accordance with the requirements of the enterprise's internal control standardsystem and relevant regulations. For details, please refer to the 2022 Annual Internal Control EvaluationReport disclosed by the Company on the Shanghai Stock Exchange website (www.sse.com.cn) on April 28,2023.Explanation about material loopholes in internal controls during the reporting period
□ Applicable √ N/A
XV. Management and control over subsidiaries during the reporting period
√ Applicable □ N/A
The Company manages its stable operation of its subsidiaries in accordance with laws and regulations,the Articles of Association, and the Internal Control Management System. It has realized the supervision andrisk assessment coverage of the internal audit on the legal compliance, asset safety, the authenticity andintegrity of financial reports and related information of the subsidiary's operation and management, andoptimized and adapted the business process in combination with the actual business scenario throughparticipation in the event to achieve standardized and efficient business operation. During the reporting period,the Company's subsidiaries operated normally, there were no undisclosed matters that should be disclosed, nomajor defects or omissions affecting the Company's business development, and the control was effective.XVI. Explanation about the auditor’s report on internal controls
√ Applicable □ N/A
For details, please refer to the 2022 Annual Internal Control Evaluation Report disclosed by theCompany on the Shanghai Stock Exchange website (www.sse.com.cn) on April 28, 2023.Whether an auditor’s report on internal controls has been disclosed: YesOpinions in the audit report on internal controls: Standard unqualified opinionXVII. Rectification of issues detected during the self-inspection of governance of the listed
companynot have
XVIII. Others
□ Applicable √ N/A
Section V Environment, Social Responsibility, and Other Corporate
Governance
I. Statement of the Board of Directors on ESGSince its listing on the Science and Technology Innovation Board in July 2019, the Company hasvoluntarily disclosed independent ESG reports (social responsibility reports) for the fourth consecutive year,actively assumed its social responsibilities as a corporate citizen, and continuously improved the transparencyof the Company's ESG information disclosure. During the reporting period, the Company's ESG work wasrated Wind ESG A, and at the same time, it was honored and recognized by the CaiLian News SocialResponsibility Pioneer Enterprise Award and the Daily Economic News Qingxin 2022 Green Practice PioneerShortlisted Project.
In order to promote the effective implementation of the Company's ESG work, the Company hasestablished and continuously improved the linked ESG management communication and coordinationmechanism. As the first responsible person for ESG, the Chairman is responsible for reviewing and makingdecisions on the strategy and goals of the Company's ESG work; functional departments, business units andsubsidiaries are responsible for formulating corresponding ESG goals and plans, implementing corporatestrategies, and maintaining communication with internal and external stakeholders. The Company's informalESG working group is responsible for ESG information collection and report preparation, and regularlyreports ESG matters to the management, forming a work promotion mode of deliberation anddecision-making, overall supervision and step-by-step implementation.
1. Sustainable R&D and innovation
As the world's leading laser display technology enterprise, the Company has always placed scientific andtechnological innovation at the core of the overall development, promoted high-quality development withscientific and technological innovation, and focused on the transformation of R&D achievements, improvedthe level of industrialization, and made full use of its scientific and technological achievements to positivelyinfluence the industry. During the reporting period, the Company's R&D investment reached RMB262million, made R&D breakthroughs in the automotive optics, AR optical modules, and ALPD
?
5.0, and was
awarded "National Intellectual Property Demonstration Enterprise" in terms of intellectual property rights.
By the end of the reporting period, the Company's ALPD
?laser light source projection solution hadexceeded 27,700 sets installed in China, with a total operating time of about 236 million hours, saving about425 million kWh of electricity and reducing CO
emissions by about 186 million cubic meters, setting anindustry model to help achieve the national dual carbon goal.
2. Reliable environment and climate management
Referring to the TCFD's Recommendations of the Working Group on Climate-related FinancialInformation Disclosure, the Company has completed the identification of climate risks and opportunities itfaces, and strictly promoted green production. During the reporting period, the Company's factory in Fuyong,Shenzhen, has an average annual water consumption decreased by 56.67% per product, an average electricityconsumption decreased by 29.39% year-on-year, and achieved zero complaints about environmentalprotection problems. After professional testing by qualified third-party environmental testing institutions,disposal of wastewater, waste gas and noise meet the requirements of national and regional laws andregulations.
In daily operations, the Company and its subsidiaries advocate green office, encourage employees torecycle office supplies, and reduce the use of paper through an efficient online work platform system.
3. Diversified corporate governance structure
The Company is committed to building an open and diversified governance system, improving thecorporate governance structure, and steadily improving corporate governance. The second Board of Directorsof the Company has 7 directors, including 3 independent directors and 1 employee representative director.The Board of Directors has set four special committees: Audit Committee, Remuneration and AssessmentCommittee, Strategy Committee and Nomination Committee, and the members of the Board of Directors arediligent and conscientious to provide full guarantee for the Board's scientific decision-making of theCompany.
The second Board of Supervisors of the Company is composed of 3 supervisors, including 1 employeerepresentative supervisor, the composition of the Board of Supervisors and the qualifications of the membersof the Board of Supervisors meet the requirements of laws and regulations, and they all have professionalknowledge and work experience.
During the reporting period, the Company held 4 general meetings of shareholders, 11 meetings of theBoard of Directors, 11 meetings of the Board of Supervisors and 14 special committees of the Board of
Directors to deliberate on regular reports, repurchase matters, equity incentive plans and other matters,standardize the operation system of the three meetings, and improve the internal governance.
4. Actively assume social responsibility
As a leader in the laser display industry, the Company works with global partners to improve the productquality and service quality of projection display products, applies international advanced standardization workexperience, so as to lead and promote the healthy and sustainable development of the industry. By the end ofthe reporting period, the Company had participated in the formulation of 10 international standards, 9 nationalstandards and 22 industry standards, released 8 group standards with industry associations and enterprises inthe industry, and won 6 Shenzhen standard honors. The Company always follows the value concept of"people-oriented", adheres to equal employment, and deepens the communication mechanism to ensure thatemployees' voices are heard and provide the support and help they need. During the reporting period, theCompany organized activities such as CEO Face-to-face Communication Meeting and Fresh GraduatesCommunication Meeting to establish a transparent, fair and interactive corporate culture, encourageemployees to participate in enterprise management, and protect employees' right to know and participate.
As an enterprise enthusiastically participating in public welfare undertakings, the Company is committedto the fulfillment of social responsibility and the promotion of public welfare undertakings. During thereporting period, in order to pay tribute to the anti-epidemic Company, a batch of laser projectors weredonated to the Shenzhen Municipal Health Commission through the Shenzhen Red Cross Society for thefamily education of the children of anti-epidemic medical workers, and initiated a series of actions in Qianxi,Guizhou to nurture talents and help farmers prosper, and won "Chunhui Action Contribution Award" of theOrganization Department of the Guizhou Province.
For details, please refer to the 2022 Environmental, Social and Governance (ESG) Report disclosed onthe Shanghai Stock Exchange website (www.sse.com.cn) on the same day.
II. Environment
| Whether mechanisms related to environmental protection have been established | YES |
| Investment in environmental protection funds during the reporting period (unit:RMB 0’000 ) | 21.06 |
(I) Whether the Company is a major polluter identified by the environmental protection authority
□ Yes √ No
During the reporting period, the Company has no production or operating entity included in the list ofmajor polluters identified by the environmental protection authority.
(II) Administrative penalties imposed due to environmental issues during the reporting period
During the reporting period, the Company experienced no administrative penalty imposed due toenvironmental issues.(III) Information of resource and energy consumption and emissions
√ Applicable □ N/A
The Company, as the world's leading laser display technology enterprise, takes ALPD
?laser displaytechnology and architecture as the lead, researches, develops, produces and sells laser display core devicesand machines, applied laser display technology to different scenarios, causing low-energy consumption. In theCompany's daily production and operation activities, it mainly consumes electricity, water and other resources,and the main emissions are waste gas, waste water and solid waste. During the reporting period, the Companyhas entrusted qualified third-party environmental testing institutions to conduct testing, and the disposal ofwastewater and waste gas meets the requirements of national and regional laws and regulations.
1. Green-house gas emission
√ Applicable □ N/A
During the Company's daily production activities, carbon dioxide, methane and other greenhouse gasesare not directly emitted, but electricity, water and other resources which belong to the greenhouse gasequivalent emissions will be consumed. The Company continues to promote emission reduction, carry outlow-carbon technology research and development with its own technology research and developmentadvantages, accelerate the process improvement in each production and manufacturing link, increase the useof renewable energy and reduce carbon emissions.
2. Energy and resource consumption
√ Applicable □ N/A
Under the principle of green production, the Company continuously optimizes the production process,adopts advanced energy-saving technology to ensure minimized impact on the environment in the productionprocess and sustainable development and environmental protection. During the reporting period, theCompany did not receive any environmental complaints from environmental protection departments, relevantorganizations and other companies, and there were no individual or unit complaints, no environmentalpollution incidents, at the same time, the Company's annual average water consumption per product decreasedby 56.67% year-on-year, and the average electricity consumption decreased by 29.39% year-on-year.
3. Emission of wastes and pollutants
√ Applicable □ N/A
1. Wastewater
The domestic wastewater generated by the Company's office is uniformly dealt with by the officebuilding and industrial park property, and discharged into the municipal sewage pipe network after itspre-treatment meets the standard. During the reporting period, the third-party institution tested the wastewatergenerated by the Company's production activities in accordance with the Guangdong Province LocalStandard Water Pollutant Discharge Limit, and the test results all met the discharge standards.
2. Exhaust gas
The Company's production activities produce less waste gas, mainly tin-containing waste gas andnon-methane total hydrocarbons, which are treated through UV photolysis, activated carbon adsorption device,air purification equipment, etc., and the exhaust emission concentration after treatment reaches theenvironmental protection standard Air Pollutant Emission Limit (DB44/27-2001 secondary standard) wherethe production and operation entity is located, and a third-party testing agency is entrusted to test, and the testresults all meet the discharge standards.
3. Waste
The Company's waste is mainly divided into three categories: recyclable, non-recyclable and hazardouswaste, which are collected separately and transferred to the renewable resources company for compliancetreatment. The Company checks the business qualifications of renewable resources companies every year, andsigns relevant recycling contracts with them; in addition, the Company pays the management fee to theproperty every month to ensure that the waste generated by the Company does not have an impact on theenvironment.
Management regulations of the Company for environment protection
√ Applicable □ N/A
The Company has formulated the Chemical Dangerous Goods Control Procedures in accordance withrelevant regulations, instructed employees to manage chemicals, and confirmed on site that the management,transfer and recycling of chemicals meet the requirements for designated special areas for the storage ofchemicals. At the same time, the Company formulates the relevant Emergency Plan and EmergencyPreparedness and Response Control Procedures involving chemicals, fires and other emergencies, and at thesame time arrange safety officers to carry out daily safety inspections, combined with department inspections,the Company also conducts training and publicity of fire protection knowledge for employees, and makesemergency plans for fire accidents. On-site inspections show that the management meets relevantrequirements.
Additionally, the Company formulates the Energy Resource Consumption Control Procedure and relatedenvironmental objectives, guides and supervises the Company's employees to control the energy resourceconsumption, and the administration department makes monthly statistics on the Company's monthly wateruse, electricity consumption and office paper, warning employees to save water and electricity and eliminatewaste.
(IV) Measures taken to reduce carbon emissions during the reporting period and their effect
√ Applicable □ N/A
| Whether carbon reduction measures are in place | Yes |
| Reduction of CO2 equivalent emissions (in tons) | 365,500 |
| Types of carbon reduction measures (e.g., using clean energy to generate electricity, using carbon reduction technologies in the production process, developing and producing new products that contribute to carbon reduction, etc.) | The Company's ALPD? laser light source projection solution has exceeded 27,700 sets installed in China, with a total operating time of about 236 million hours, saving about 425 million kWh of electricity and reducing carbon dioxide emissions by about 186 million cubic meters. |
Specific instructions
√ Applicable □ N/A
As of the end of the reporting period, the Company had a total operating time of 236 million hours of allALPD?laser light source solutions in China. Compared with xenon lamps, the average power saving per houris about 1.8 degrees, which means that 425 million kWh can be saved after conversion. According to thegeneration of one kilowatt-hour of electricity to produce 0.86kg of carbon dioxide, and the volume of one tonof CO
is 509m
, the volume of CO
produced by one kilowatt-hour of electricity is 0.48 m
, so the powersaving of about 425 million kWh helps reduce emissions by about 186 million cubic meters.(V) New technologies, new products, and new services for carbon emission reduction
√ Applicable □ N/A
Laser is currently the world's brightest and purest artificial light source, enjoying incomparableadvantages among traditional display technologies, such as eye protection, great color performance, largescreen, and energy saving. The Company makes full use of advantages in light source and technology, andconstantly improves product energy efficiency. In R&D and design process, the Company pays specialattention to environmental protection, energy saving, low carbon and other concepts. In November 2022, theCompany released ALPD
?
5.0 laser display technology with an energy efficiency of more than 20lm/W, about100% higher than other light sources, significantly reducing energy consumption and improving brightness.At the same time, diffuse reflection imaging of household projection products can avoid direct light exposureand harmful blue light, thus reducing visual fatigue, and effectively protecting human eye health.(VI) Relevant information conducive to protecting ecology, preventing pollution and fulfilling
environmental responsibilities
√ Applicable □ N/A
The Company vigorously promotes digital construction, establishes an online work platform system torealize online approval of office service contracts, and introduces Anyin electronic signature service, andcarries out data linkage with ERP procurement contracts and CRM sales contracts, avoiding a large number ofprocurement contract printing and sealing, which helps to improve the Company's overall office efficiencyand reduce paper consumption.III. Performance of social responsibilities(I) Social contributions of the main business and industry key indicatorsThe Company, as a global leading enterprise in the field of laser display technology, adheres to themarket and customer demand-oriented, continues to focus on the original laser display technology andarchitecture as the lead, research and development, production and sales of laser display core devices andcomplete machines, applies laser display technology to household display, cinema projection, businesseducation, engineering and other application scenarios, and successfully expands to new fields such asautomotive display, aviation display, AR, etc., to provide customers with a full range of laser displaysolutions and technical support.The Company created the first ALPD
?laser display technology in the world in 2007, enjoyingadvantages of volume, weight, brightness and energy efficiency that other display technologies don’t have,and obvious advantages in industrialization. The Company's original laser phosphor display has become themainstream technology in the current laser display field, and as the underlying key architecture technology, ithas been used more than 660 times by companies such as Philips of the Netherlands, Osram of Germany,Epson of Japan, NEC.
In terms of industry development, the Company's ALPD
?laser display technology ensures the leadingposition in the international scope of Chinese technology. The Company focuses on the needs of nationalstrategic development, serves as the leader of major national scientific research projects, actively participatesin the exhibition of scientific and technological innovation achievements and professional forums,conferences and other activities held by authoritative institutions at home and abroad, takes the initiative toundertake national topics, formulates domestic and foreign standards, applies for international awards, etc.,facilitating high-quality development of the laser display industry. In 2022, the Company participated in thedrafting of the first domestic laser TV industry standard and formulation of the White Paper on theDevelopment of Laser Display Technology and Intellectual Property, and obtained the Shenzhen standardcertification of intelligent display terminal products.(II) Types of and contributions for public charity activities
| Type | Sum | Remark |
| External donations | 125.97 | |
| Where: Funds (RMB 0’000) | ||
| Value of materials (RMB 0’000) | 125.97 | Through the Shenzhen Red Cross Society, a batch of ultra-short throw laser projectors were donated to the Shenzhen Municipal Health Commission for family education of the children of anti-epidemic medical workers. |
| Rural revitalization | 9.8 | |
| Where: Funds (RMB 0’000) | 8 | Purchasing thousands of agricultural products from Qianxi, Guizhou, to help rural revitalization with practical actions. |
| Value of materials (RMB 0’000) | 1.8 | Donated smart screens to Liulin Village, Bailiu Village and Pingfeng Village in Badu Yao Nationality Township, Tianlin County, Guangxi, to help revitalize rural culture. |
1. Specific information about public charity activities
√ Applicable □ N/A
In order to pay tribute to the frontline anti-epidemic medical workers, the Company donated a total of300 ultra-short throw laser projectors with a total value of RMB1.2597 million to the Shenzhen MunicipalHealth Commission through the Shenzhen Red Cross Society, which were distributed by the ShenzhenMunicipal Health Commission to 29 medical units, including the Shenzhen CDC and Shenzhen EmergencyCenter, for the family education of the children of anti-epidemic medical workers.
The Company continues to support Shenzhen's urban strategy of building a "Child-friendly City", andhas been awarded the title of "Nanshan District Science Popularization Base", which has become an importantmeasure for the Company to practice social responsibility, promote scientific and technological innovationand sustainable development, promote the popularization of science and technology and talent training, andenhance the connection and cooperation between enterprises and society. In 2022, the Company's sciencepopularization base received a total of 6 children's science popularization public welfare visits, with a total ofabout 100 children.
2. Information on consolidation and expansion of the results of poverty alleviation, rural
revitalization and other specific work
√ Applicable □ N/A
The Company actively practices social responsibility, and contributes to the cause of rural revitalizationby purchasing and supporting farmers with science and technology responding to the call for ruralrevitalization. During the reporting period, after understanding the difficulties in agricultural product sales inGantang Town and Huaxi Township, Qianxi, Guizhou Province, the Company established the "2022Mid-Autumn Festival Public Welfare Agricultural Assistance Action" project to help poor areas to sellagricultural products.
Recommended by the Youth League Committee of Guizhou Qianxi, the Company won the red-headeddocument commendation of the "Chunhui Action Contribution Award" of the Organization Department of theGuizhou Provincial Party Committee due to a series of actions to revitalize talents and help farmers in Qianxi,Guizhou.
During the reporting period, the Company and the China Aerospace Science and Cultural Innovation(CASCI) launched the "Radiance Project - Science and Technology to Help Rural Revitalization, Walk withLight to Build Dreams of Aerospace" series activities, and sent intelligent screens to Liulin Village, BailiuVillage and Pingfeng Village, Badu Yao Nationality Township, Tianlin County, Guangxi. Through the smart
screen, villagers can carry out daily village affairs, training and learning, hold festival activities, etc. moreconveniently and efficiently, thus promoting the revitalization of rural culture.(III) Protection of the rights and interests of shareholders and creditorsThe Company has established a diversified governance structure, fully mobilized resources from allparties to promote synergy with the aim to improve the corporate governance. The Company carries out itswork in accordance with provisions and requirements of the Company Law, the Securities Law, theGovernance Guidelines for Listed Companies, the relevant laws, regulations and normative documents of theChina Securities Regulatory Commission and the Shanghai Stock Exchange. The Board of Directors is thepermanent decision-making and management body of the Company with four special committees: StrategyCommittee, Remuneration and Appraisal Committee, Nomination Committee and Audit Committee.Moreover, we have formed a corporate governance structure with clear rights and responsibilities between theshareholders' meeting, the Board of Directors, the Board of Supervisors and managers, each performing itsown duties with effective checks and balances, scientific decision-making and coordinated operation. Wecontinuously improve the corporate governance structure, optimize the "three meetings and one layer"operation mechanism, and promote the continuous optimization of corporate governance efficiency.(IV) Protection of the rights and interests of employeesThe Company actively advocates the value concept of "people-oriented", has formulated comprehensivehuman resource management norms to ensure that the rights and interests of employees are protected, andcontinues to improve the employee management system. The Company attaches great importance to thewelfare of employees, competitive salary and benefits, and high-quality training opportunities. The Companyis committed to providing a humanized working environment for employees to ensure that their work andquality of life are improved. The Company deepens the communication mechanism, listens to the thoughts ofemployees, and provides them with the support and help they need.
During the reporting period, the Company organized activities such as CEO Face-to-faceCommunication Meeting and Fresh Graduates Communication Meeting to establish a transparent, fair andinteractive corporate culture, encourage employees to participate in enterprise management, and protectemployees' right to know and participate.In order to encourage employees to communicate and learn from each other after work, enhance mutualunderstanding and trust, improve teamwork ability and work efficiency, the Company organized AfricanDrum Learning Activities, Qixi Festival Poetry Competition, Basketball Competition, Single Club MovieViewing Activities and other team building activities, at the same time, the Company's labor union opened andoperated yoga, dance, badminton, reading and other association clubs.The Company is concerned about employees in difficulty. To help them, we launch a help plan, andformulate the Measures for the Management of Trade Union Love Help Fund, and the Company's labor unionwill issue relief funds as appropriate to employees who are hospitalized due to illness, or suffer suddenaccidental injuries, natural disasters and man-made disasters that cause difficulties to employees' families.Since the implementation of the measures, the Company has helped nearly 10 employees and families.In terms of personal growth and career development of employees, the Company has built a series oftalent training systems for Aurora, Sharp Light, Xuguang and Starlight, and created all-round training plansfor fresh graduates, reserve cadres, grassroots managers and middle managers. As of December 31, 2022, theCompany has launched six phases of the Starlight Program, cultivating nearly 220 trainees, and the totaltraining hours of the Company's employees have reached 17,600 hours.In addition, the Company continues to innovate and implement safety management measures, fulfill thestatutory responsibility for safe production, strengthen the due diligence supervision of safe production, andcarry out in-depth investigation of potential safety hazards and safe operation guarantee, so as to strengthenthe safety defense line and provide a solid guarantee for the steady growth and development of the Company.Employee share ownership
| Number of employees owning shares (persons) | 224 |
| Ratio of employees owning shares to the total number of employees (%) | 13.68 |
| Number of shares owned by employees (0’000 shares) | 3,384.67 |
| Ratio of shares owned by employees to the total share capital (%) | 7.41 |
(V) Protection of the rights and interests of suppliers, customers and consumersThe Company attaches importance to cooperation with suppliers and strategic partners. Based on cleanprocurement and responsible procurement guidelines, we select and purchase environmentally friendly rawmaterials, and actively lay out the core areas and links of the industrial chain, taking it as an important part ofthe Company's production and operation. The Company continues to strengthen the corporate responsibilitymanagement of suppliers, standardize procurement transactions, improve the sustainable competitiveness ofthe supply chain, work with suppliers to develop together and build a responsible value chain. During thereporting period, the proportion of corporate responsible procurement was 100%. The Company is committedto providing high-quality products and excellent services, focusing on customer needs and experience. Interms of product marketing, we actively explore marketing strategies and adopt multi-channel and diversifiedsales channel development strategies, which will enhance the stickiness between brands and users. At thesame time, the Company pays attention to marketing compliance, adopts active marketing strategies todevelop the market under the baseline of compliance with relevant regulations and standards.In addition, the Company stresses the protection of customer privacy, encrypts all information related tocustomer privacy in accordance with relevant laws and regulations, adopts safe and reliable storage methodsto prevent information leakage, and conducts strict training and management for internal employees to ensurethat they fully recognize the importance of customer privacy and master relevant protection skills.(VI) Product safetyThe Company attaches great importance to the quality management of products, always takes highstandards, high quality, high efficiency as the goal. The Company passed the ISO 9001 quality managementsystem certification in 2006, and began to introduce IATF 16949 quality management system in 2021.Furthermore, the Company has formulated a series of normative documents to guide the strengthening ofquality management, promote the construction of quality culture concept, system& process construction,laboratory system construction, quality monitoring system construction to achieve quality management in thewhole process.
In addition, the Company has created a "zero-defect" quality culture of Appotronics, pursued productionmonitoring, aging time, and 5S visualization in the whole process system, and conducted quality monitoringin every link of production management. Through strengthening quality management, the Company'sproducts can meet the Company's high-end core devices, household laser intelligent projection, laser filmprojection equipment, laser engineering machines, laser business and education products, laser TV and othermulti-line display solutions, and have been highly recognized by leading users in the industry. At the sametime, the Company attaches importance to product quality training to achieve 100% coverage of productquality training for all employees.(VII) Other information about the performance of social responsibilities
√ Applicable □ N/A
The Company takes promoting the integration of science and technology and culture as its ownresponsibility, and promotes the dissemination of traditional culture through large-scale cultural tourism,theatrical performances, landscape lighting, night tour light shows and other ways. During the reportingperiod, the Company's G series engineering projectors helped create Xinjiang's first global immersionperformance All celebrate and dance including Xinjiang, which combined new light and shadow technologywith historical and cultural stories, bringing unprecedented sensory experience and emotional resonance to theaudience; the Company's engineering T series enabled Jiangxi Wuyuan Cultural Tourism Town to create amagnificent "big lake show" in the real scene show, with huge images covering the three major scenes of Huischool architecture, sacred tree sculpture and water curtain, and achieved the Mapping projection show on the59-meter-high jade tower, telling historical legends to audiences. In the future, the Company will continue toexplore the integration of science and technology and culture, launch more innovative products, inject newvitality into the cultural and creative industry, and promote the upgrading and development of the culturalindustry.
As a leader in the laser display industry, the Company works with global partners to improve the qualityand service quality of laser display products, improve human health and safety, protect the environment andpromote sustainable development. What’s more, the Company applies international advanced standardizationwork experience to lead and promote the healthy and sustainable development of the industry. As ofDecember 31, 2022, the Company has participated in the formulation of 10 international standards, 9 nationalstandards, 22 industry standards, and 8 group standards, and has won 4 national enterprise standard "leader"honors and 6 Shenzhen standard honors.
The Company actively improves the positive social influence of products, starting from product designthat reduces the cost of use, integrating advanced technology functions, and also pays attention to humanizeddesign to meet the needs and expectations of consumers and ensure the convenience and comfort when usingthe product. In addition, the Company also actively promotes scientific and technological knowledge, so thatmore people can feel the charm of laser display technology.IV. Other corporate governance(I) Investor relation and protection
| Type | Times | Remark |
| Convening performance briefings | 2 | In May 2022 and August 2022, two performance briefing meetings were held in the form of video and text, with the Chairman as the keynote speaker, to help investors gain an in-depth understanding of the Company's business performance and respond to hot issues. |
| Conduct investor relation management activities through new media | 27 | The main information release channel for investors is the "Appotronics" public account, which synchronizes the Company's financial reports and other major matters, and at the same time short videos are released through the "Appotronics Technology" video account to provide investors with three-dimensional and comprehensive company information. |
| Column of investor relation on the official website | √ Yes □ No | For details of the visible content, please refer to the investor relations page of the Company's official website: https://www.appotronics.com/investor_team.html |
Specific information about investor relation management and investor protection
√ Applicable □ N/A
During the reporting period, the Company conducted over 260 roadshows, including road shows,anti-road shows, online and offline strategy meetings, investor open days (excluding daily short telephonecommunication) involving over 600 buyer investors and efficient conversion. The Company answered over700 IR hotlines, regularly replied to about 100 investor inquiries on the open communication platform, aimingto convey the Company's value, effectively protect the rights and interests of investors, and establish an imageof good capital market.
In addition, as a member unit of Shenzhen Association of Listed Companies, the Company activelyparticipates in experience exchange meetings and seminars organized by the association, establishes andimproves the professional work system of investment and customs, spread regulatory policies and informationrelated to investment work, provides policy suggestions for regulatory authorities, and participates in theconstruction of the integrity evaluation system of listed companies and the construction of professional talentpool.Explanation about communication with investors by other means
√ Applicable □ N/A
During the reporting period, research institutions such as Huaxi Securities, Guosen Securities,Huachuang Securities, and Great Wall Securities issued a total of 69 research reports on the Company; amongthem, 17 in-depth research reports and 52 update/review research reports can help investors better understandthe Company's business and value.(II) Transparency of information disclosure
√ Applicable □ N/A
During the reporting period, the Company further improved the information disclosure management, inaccordance with relevant laws and regulations and the Information Disclosure Management System and otherrelevant requirements, the Company's information disclosure is true, accurate, complete, timely and fair. Weactively and repeatedly carried out voluntary information disclosure, issued ESG reports and letters toshareholders, and guided investors to pay attention to corporate responsibility and the Company's long-termdevelopment strategy; we disclosed that the Company has obtained the nomination letter of well-known carcompanies at home and abroad, timely reflected the progress of the Company's automotive business to helpinvestors make decisions; we disclosed the English version of the regular report to allow overseas investors tofully understand the Company's development, etc.
(III) Protection of intellectual property rights and information security
√ Applicable □ N/A
Focusing on ALPD
?laser display technology, the Company continues to lay out globally intellectualproperty rights, establishes a sound domestic and foreign intellectual property protection system andintellectual property system, guarantees research and development achievements, protects intellectualproperty rights from infringement, and ensure the effective development of the Company's various productionand business activities. At the same time, the Company respects the intellectual property rights of others,cooperates with an open attitude, and promotes the healthy development of the laser display industry.As of December 31, 2022, the Company has applied for and authorized patents in 2,629 cases worldwide,and obtained 1,773 authorized patents worldwide, including 966 authorized invention patents. Moreover, theCompany won the 9th Guangdong Patent Excellence Award, the 22nd China Patent Excellence Award, andwas certified as "National Intellectual Property Model Enterprise" by the State Intellectual Property Office.(IV) Information about participation of institutional investors in corporate governance
√ Applicable □ N/A
During the reporting period, the Company's institutional investors actively participated in the voting ofthe Company's shareholders' meeting, fully exercised the right to know, the right to vote and othershareholder rights, and improved the supervision and recommendation of company governance. TheCompany fully recognizes the long-term and important role of institutional investors in promoting theimprovement of company governance capabilities, thus accepting suggestions and suggestions frominstitutional investors on the Company's development and maintaining proactive two-way communication,transmits the Company's dynamics, so as to help the management make more accurate judgments anddecisions quickly, and continuously improve company governance.For example, investors have reported to the Company that the Company is a technology enterprise withdeep R&D strength and technical advantages in the industry, while the cost of investors' cognition oftechnical advantages is high, so they recommend the Company to increase the proportion of popular sciencecontent such as technical principle analysis in the official WeChat public account, and ensure that informationis easier to understand. After learning about it, the Company's management has begun to establish a sciencepopularization mechanism, select technical issues and content that investors are highly concerned about, writeand publish tweets, and reduce the cost of investor awareness.(V) Other corporate governance
□ Applicable √ N/A
Section VI Significant MattersI. Fulfillment of covenants(I) Covenants made by the actual controller, shareholders, affiliates and acquirer of the Company, the Company itself and other related parties during the
reporting period or the outstanding covenants made by them in the prior periods
√ Applicable □ N/A
| Background of covenant | Covenant Type | Covenantor | Covenant Content | Validity period of covenant | Whether there’s a time limit for the fulfillment of the covenant | Whether the covenant has been strictly fulfilled on time | Reason for failure to fulfill the covenant on time (if applicable) | Action plan If failing to fulfill the covenant on time |
| Covenant relating to IPO | Restriction on the sale of shares | Covenant by the controlling shareholder regarding restriction on the sale of shares held by him, voluntary lock-up of such shares, extension of lock-up period, intention to hold and dispose of shares and other issues | Refer to IPO Prospectus | 36 months After completion of the IPO and the extended period stated below | Yes | Yes | N/A | N/A |
| Covenant relating to IPO | Restriction on the sale of shares | Covenant by the actual controller regarding restriction on the sale of shares held by him, voluntary lock-up of such shares, extension of lock-up period, intention to hold and dispose of shares and other issues | Refer to IPO Prospectus | 36 months after completion of the IPO and the extended period stated below, and 6 months after termination of employment with the Company | Yes | Yes | N/A | N/A |
| Covenant relating to IPO | Restriction on the sale of shares | Covenant by the concert parties of the actual controller regarding restriction on the sale of shares held by them, voluntary lock-up of such shares, extension of lock-up period, intention to hold and dispose of shares and other issues | Refer to IPO Prospectus | 36 months after completion of the IPO and the extended period stated below | Yes | Yes | N/A | N/A |
| Covenant relating to IPO | Restriction on the sale of shares | Commitments by HU Fei, a core technical officer, on the restricted sale of shares, voluntary lock-up of shares, extension of lock-up period, shareholders' shareholding and intention to reduce shareholding | Refer to IPO Prospectus | 12 months after completion of the IPO and the extended period stated below, and 6 months after termination of employment | Yes | Yes | N/A | N/A |
| Covenant relating to IPO | Others | Issuer’s plan for stabilizing the Company’s stock price and covenant regarding share | Refer to IPO Prospectus | 36 months after completion of the IPO | Yes | Yes | N/A | N/A |
| repurchase measures within three years after the listing | and listing of stock | |||||||
| Covenant relating to IPO | Others | Controlling shareholder and the actual controller’s plan for stabilizing the Company’s stock price and covenant regarding share repurchase measures within three years after the listing | Refer to IPO Prospectus | 36 months after completion of the IPO and listing of stock | Yes | Yes | N/A | N/A |
| Covenant relating to IPO | Others | Directors and senior officers’ plan for stabilizing the Company’s stock price and covenant regarding share repurchase measures within three years after the listing | Refer to IPO Prospectus | 36 months after completion of the IPO and listing of stock | Yes | Yes | N/A | N/A |
| Covenant relating to IPO | Others | Issuer’s covenant regarding measures against fraud in IPO | Refer to IPO Prospectus | Permanent | No | Yes | N/A | N/A |
| Covenant relating to IPO | Others | Controlling shareholder, actual controller and their concert parties’ covenant regarding measures against fraud in IPO | Refer to IPO Prospectus | Permanent | No | Yes | N/A | N/A |
| Covenant relating to IPO | Others | Directors, supervisors and senior officers’covenant regarding measures against fraud in IPO | Refer to IPO Prospectus | Permanent | No | Yes | N/A | N/A |
| Covenant relating to IPO | Others | Issuer’s covenant regarding remedial measures for diluted earnings in the current period | Refer to IPO Prospectus | Permanent | No | Yes | N/A | N/A |
| Covenant relating to IPO | Others | Controlling shareholder, actual controller and their concert parties’ covenant regarding remedial measures for diluted earnings in the current period | Refer to IPO Prospectus | Permanent | No | Yes | N/A | N/A |
| Covenant relating to IPO | Others | Directors, supervisors and senior officers’ covenant regarding remedial measures for diluted earnings in the current period | Refer to IPO Prospectus | Permanent | No | Yes | N/A | N/A |
| Covenant relating to IPO | Others | Issuer’s covenant regarding profit distribution policy | Refer to IPO Prospectus | Permanent | No | Yes | N/A | N/A |
| Covenant relating to IPO | Others | Issuer’s covenant regarding restraint measures and liability for compensation in the event of failure to fulfill its covenants | Refer to IPO Prospectus | Permanent | No | Yes | N/A | N/A |
| Covenant relating to IPO | Others | Controlling shareholder, actual controller and their concert parties’ covenant regarding restraint measures | Refer to IPO Prospectus | Permanent | No | Yes | N/A | N/A |
| Covenant relating to IPO | Others | Directors, supervisors and senior officers’ covenant regarding restraint measures and liability for compensation in the event of failure to fulfill their covenants | Refer to IPO Prospectus | Term of office | No | Yes | N/A | N/A |
| Covenant relating to IPO | Resolve horizontal competition issues | Controlling shareholder’s covenant on avoiding horizontal competition and regulating and reducing related-party transactions | Refer to IPO Prospectus | Permanent | No | Yes | N/A | N/A |
| Resolve related- party transaction issues | Actual controller’s covenant on avoiding horizontal competition and regulating and reducing related-party transactions | Refer to IPO Prospectus | Permanent | No | Yes | N/A | N/A | |
| Covenant related to share incentives | Others | Covenant by the grantee of share incentives information documents regarding disclosure | For details, refer< to the 2019 Restricted Share Incentive Plan (Draft)> <the 2021 Restrict Share Incentive Plan (Draft),>and<the 2021 Second Restricted Share Incentive Plan (Draft)> of the Company ,<to the 2022 Restricted Share Incentive Plan (Draft)> | Permanent | No | Yes | N/A | N/A |
| Others | Company’s covenant on refraining from providing financial assistance | For details, refer< to the 2019 Restricted Share Incentive Plan (Draft)> <the 2021 Restrict Share Incentive Plan (Draft),>and<the 2021 Second Restricted Share Incentive Plan (Draft)> of the Company ,<to the 2022 Restricted Share Incentive Plan (Draft)> | Permanent | No | Yes | N/A | N/A |
(II) If the Company has made any profit forecast on its assets or project and the reporting period falls
within the period of such profit forecast, explanation about whether the goal has been achievedand the relevant reasonsExplanation about whether the goal has been achieved and the relevant reasons
□ Reached □ Not reached √ N/A
(III) Fulfillment of performance covenant and the relevant effect on goodwill impairment test
□ Applicable √ N/A
II. Non-operating occupation of funds by the controlling shareholder or its affiliates during thereporting period
□ Applicable √ N/A
III. Guarantees in violation of regulations
□ Applicable √ N/A
IV. Explanation of the Board of Directors about the modified audit opinion issued by the accounting
firm
□ Applicable √ N/A
V. Explanation about the reasons and effect of changes in accounting policies and accounting
estimates and correction of material accounting errors(I) Analysis of the reasons of changes in accounting policies and accounting estimates and therelevant effect
√ Applicable □ N/A
For details, refer to “V.44 Changes insignificant accounting policies and accounting estimates” in “Section XFinancial Report” herein.(II) Explanation about the reasons and effect of correction of material accounting errors
□ Applicable √ N/A
(III) Communication with the former accounting firm
□ Applicable √ N/A
(IV) Other information
□ Applicable √ N/A
VI. Appointment and termination of appointment of accounting firm
In RMB 0’000
| Current accounting firm | |
| Name of domestic accounting firm | Pan-China Certified Public Accountants (Special General Partnership) |
| Fee payable to domestic accounting firm | 140.00 |
| Audit period of domestic accounting firm | 7 years |
| Name of certified public accountants of the domestic accounting firm | WEI Biaowen, NIU Chunjun |
| The audit years of certified public accountants of the domestic accounting firm | WEI Biaowen's audit service period is 2 years, and NIU Chunjun's audit service period is 3 years |
| Name | Fee | |
| Internal Control Audit Accounting Firm | Pan-China Certified Public Accountants (Special General Partnership) | 15 |
| Sponsor | Huatai United Securities Co., Ltd. | - |
Explanation about the appointment and termination of appointment of accounting firm
√ Applicable □ N/A
The Company engaged Pan-China Certified Public Accountants (Special General Partnership) as theaudit of the Company's 2022 financial statements and internal control auditor of financial reports, with a totalannual fee of RMB 1.4 million (tax inclusive).
Explanation about re-appointment of accounting firm during the audit period
□ Applicable √ N/A
VII. Delisting risks(I) Reasons causing the delisting risk warning
□ Applicable √ N/A
(II) Response measures taken by the Company
□ Applicable √ N/A
(III) Risk of delisting and the reason
□ Applicable √ N/A
VIII. Matters relating to bankruptcy and reorganization
□ Applicable √ N/A
IX. Material litigations and arbitrations
√ The Company was involved in material litigations or arbitration during the current year
□ The Company was not involved in material litigations or arbitration during the current year(I) Litigations and arbitrations already disclosed in interim announcements about which no new information is available
√ Applicable □ N/A
| Summary and type of case | Reference |
| Ⅰ. (2020) Yue 73 Zhi Min Chu No. 1335-1341, No. 1353, No. 1355-1361 In August 2020, the Company initiated a civil litigation on the grounds that Delta Electronics (Shanghai) Co., Ltd., Delta Video Display System (Wujiang) Ltd., Digital Protection (Beijing) Electronics Technology Co., Ltd. and other entities infringed the patents for invention ZL200880107739.5 and ZL200810065225.X owned by the Company, requesting the court to order to stop the acts of infringing the Company's invention patent rights and infringement damages of RMB 80 million shall be paid. | For details, please refer to the Announcement on Filing a Lawsuit against Delta Electronics (Shanghai) Co., Ltd. and Other Entities (Announcement No. 2020-037) disclosed by the Company on Shanghai Stock Exchange website (www.sse.com.cn) on August 11, 2020. |
| Ⅱ. (2021) Chuan 01 Zhi Min Chu No. 685 and No. 686 In December 2021, Delta Electronics Industry Co., Ltd. initiated a civil litigation on the grounds that the Company infringed the patents for invention ZL201610387831.8 and ZL201110041436.1, requesting the court to order to stop the acts of infringing the Company's invention patent rights and infringement damages of RMB 32.02 million shall be paid. | For details, please refer to the Litigation Announcement on Delta's Malicious Litigation (Announcement No. 2021-097) disclosed by the Company on Shanghai Stock Exchange website (www.sse.com.cn) on December 21, 2021. |
| III. (2021) Yue 73 Zhi Min Chu No. 1860 In December 2021, Delta maliciously initiated an intellectual property litigation against the Company. Since such act infringed the Company's rights and interests, the Company sued Delta to Guangzhou Intellectual Property Court on December 17, 2021, on the ground of such malicious act, involving an amount of RMB 10 million. | For details, please refer to the Litigation Announcement on Delta's Malicious Litigation (Announcement No. 2021-097) disclosed by the Company on Shanghai Stock Exchange website (www.sse.com.cn) on December 21, 2021. |
| IV．01-22-0001-2735 In March 2022, GDC Cayman and GDC BVI initiated an arbitration against the Company and its wholly-owned subsidiary, Appotronics Hong Kong Limited targeting the execution dispute over Settlement Agreement, involving an amount of $38 million. Subsequently, the Company initiated an arbitration counterclaim against GDC Cayman, GDC BVI, Mr. Zhang Maneng and their management team for violating the terms of the Shareholders' Agreement and the Settlement Agreement, involving an amount of not less than $40 million. | For details, please refer to the Announcement on Arbitration Matters with GDC Cayman and GDCBVI (Announcement No. 2022-028) disclosed by the Company on Shanghai Stock Exchange website (www.sse.com.cn) on April 2, 2022. |
(II) Litigations and arbitrations that have not been disclosed in interim announcements or about which there’s new information available
√ Applicable □ N/A
In RMB 0’000
| During the reporting period: | |||||||||
| Plaintiff/claimant | Defendant/respondent | Party jointly and severally liable | Type of litigation/arbitration | Background | Amount claimed | Whether any provision is recognized and the amount | Status | Result and effect | Enforcement of judgment/award |
| Delta Electronics, Inc. | Appotronics Corporation Limited | Futian SPN Projector & Video System Firm of Shenzhen | Infringement on patent for invention | [2019] Yue 73 Zhi Min Chu No. 662, the Plaintiff alleges that it is the owner of the patent for invention ZL201610387831.8 and the Defendant infringed such patent for invention of the Plaintiff and caused economic losses to the Plaintiff. | 1,614.53 | No | The plaintiff withdrew the complaint | The court made a decision to withdraw the case | - |
| Delta Electronics Industry Co., Ltd. | Appotronics Corporation Limited | Fengmi (Beijing) Technology Co., Ltd. | Infringement on patent for invention | [2019] Jing 73 MinChu No.1275, the Plaintiff alleges that it is the owner of the patent for invention ZL201610387831.8 and the Defendant infringed such patent for invention of the Plaintiff and caused economic losses to the Plaintiff. | 1,601.00 | No | Under trial of the second instance First instance judgment: ruled to dismiss all of Delta's claims. Under trial of the second instance | The trial has not yet been concluded | - |
| Delta Electronics Industry Co., Ltd. | Appotronics Corporation Limited | Fengmi (Beijing) Technology Co., Ltd. | Infringement on patent for invention | [2019] Jing 73 MinChu No.1276, the Plaintiff alleges that it is the owner of the patent for invention ZL201410249663.7 and the Defendant infringed such patent for invention of the Plaintiff and caused economic losses to the Plaintiff. | 1,601.00 | No | The plaintiff withdrew the complaint | The court made a decision to withdraw the case | - |
| Delta Electronics Industry Co., Ltd. | Appotronics Corporation Limited | Shanghai Haichi Digital Technology Co., Ltd. | Infringement on patent for invention | [2019] Hu 73 Zhi Min Chu No.1070, the Plaintiff alleges that it is the owner of the patent for invention ZL201110041436.1 and the Defendant infringed such patent for invention of the Plaintiff and caused economic losses to the Plaintiff. | 1,601.00 | No | Under trial of the first instance | The trial has not yet been concluded | - |
| Delta Electronics Industry Co., Ltd. | Appotronics Corporation Limited | Chengdu Jinxi Guangxian Information Technology Co., Ltd. | Infringement on patent for invention | [2021] Chuan 01 Zhi Min Chu No.684, the Plaintiff alleges that it is the owner of the patent for invention ZL201410249663.7 and the Defendant infringed such patent for invention of the Plaintiff and caused economic losses to the Plaintiff. | 1,601.00 | No | The plaintiff withdrew the complaint | The court made a decision to withdraw the case | - |
| Shenzhen Wanbo Technology Co., Ltd. | Shenzhen Appotronics Xiaoming Technology Co., Ltd. | Fengmi (Beijing) Technology Co., Ltd.；Zhejiang Tmall Network Co., Ltd. | Infringement on patent for appearance design | [2022] Zhe 01 MinChu No.157, the Plaintiff alleges that it is the owner of the patent for invention ZL201930556138.3 and the Defendant infringed such patent for invention of the Plaintiff and caused economic losses to the Plaintiff. | 300.00 | No | The plaintiff withdrew the complaint | The court made a decision to withdraw the case | - |
| Appotronics Corporation Limited | Delta Electronics Business Management (Shanghai) Co., Ltd. | Delta Video Display System (Wujiang) Limited; Shenzhen Super Network Technology Co., Ltd. | Infringement on patent for invention | (2019) Yue 03 MinChu No.2942, No. 2945, No.2947, No.2949, and No.2950, the Plaintiff alleges that the Defendant 1, Defendant 2, and Defendant 3 infringed the patent for invention 200880107739.5 of the Plaintiff and caused economic losses to the Plaintiff. | 2,800.00 | No | Under trial of the second instance | The trial has not yet been concluded | - |
| Appotronics Corporation Limited | Delta Electronics Industry Co., Ltd. | Correction of patent inventors | 19-cv-00466-RGD-LRLCase of correction of patent inventors The Plaintiff petitions the court to change the inventors of the patent for invention No.9024241 to HU Fei and LI Yi. | / | No | The parties settled and withdrew the case | - | ||
| Appotronics Corporation Limited Li Yi Hu Fei | Delta Electronics Industry Co., Ltd. | Zhang Kesu, Hua Jianhao, Wang Bo | Patent ownership disputes | [2021] Yue 03MC No.2295 The Plaintiff petitions the court to order the patent for invention No.ZL201610387831.8 fluroscent color wheel and its applicable light source system belongs to the Company. | 30.00 | No | The court made a decision to withdraw the case | - | |
| Appotronics Corporation Limited | Shenzhen Creality 3d Technology Co., Ltd. | Disputes over sales contracts | [2022] Yue 0305MC No.10069 Case of disputes over sales contracts The plaintiff initiated a lawsuit with the court over the disputes over sales contacts to order the defendant to return purchase price and pay liquidated damages. | 21.99 | No | The parties settled and withdrew the case | - |
| Appotronics Corporation Limited | Huaxia Jingrui Lighting Technology(Beijing)Co., Ltd. | Disputes over sales contracts | [2023] Yue 0305 Settlement before initiating a lawsuit No.25324 Case of disputes over sales contacts The plaintiff petitions the court to order the defendant to pay purchase price and liquidated damages of RMB1.2195 million. | 121.95 | No | Reach a settlement | - | ||
| Qingda Appotronics (Xiamen) Technology Co., Ltd. | Yunzhi Feiyang (Beijing) Network Technology Co., Ltd. | Disputes over sales contracts | No.XA20220598 Arbitration of disputes over sales contacts The Plaintiff initiated a lawsuit in court over disputes over sales contracts, petitioned the court to order the defendant to pay the purchase price, liquidated damages, etc. | 21.48 | No | Reach a settlement | - |
(III) Other information
√ Applicable □ N/A
(1) As of the end of the reporting period, the Company's ZL200880107739.5 invention patent has been requested for invalidation for a total of 15 times, theCompany's ZL200810065225.X invention patent has been requested for invalidation for a total of 11 times, the aforesaid 25 cases of invalidation request have beendecided by the State Intellectual Property Office to maintain the validity of the patent right examination decision or the applicant withdrew the case on its own initiative,and 1 case is under the national intellectual property trial.
(2) As of the end of the reporting period, the Company's ZL201110086731.9 invention patent has been requested for invalidation for 6 times, and the aforementioned6 cases of invalidation request have been decided by the State Intellectual Property Office to maintain the validity of the patent right or the applicant withdrew the case onits own initiative.
(3) As of the end of the reporting period, the Company initiated an invalidation request against the patents held by Delta Electronics Industry Co., Ltd., and two caseswere pending trial by the State Intellectual Property Office.
(4) As of the end of the reporting period, the Company's patent as the patentee has been filed with an invalidation request, and there are 3 cases under the trial of theState Intellectual Property Office, the patents involved are "light source structure based on phosphor to improve light conversion efficiency" (patent number:
200810065225.X), "a kind of luminescent ceramic and light-emitting device for high-power light source" (patent number: 201510219000.5), "optical system and projectiondevice" (patent number: ZL202220267901.7).
X. Penalties imposed on the listed company and its directors, supervisors, senior officers,controlling shareholder, actual controller for suspected violation of laws and regulations andrectification of the relevant violations
□ Applicable √ N/A
XI. Credit standing of the Company and its controlling shareholder and actual controller during thereporting period
□ Applicable √ N/A
XII. Material related-party transactions(I) Related-party transactions in connection with day-to-day operation
1. Matters already disclosed in the interim announcements about which no new information isavailable
□ Applicable √ N/A
2. Matters already disclosed in the interim announcements about which there’s new informationavailable
√ Applicable □ N/A
In RMB 0’000
| Category of related-party transaction | Related party | Projected amounts for the reporting period | Actual amounts incurred during the reporting period | Reason for the great difference between the expected amount and the actual amount |
| Provide a related party With products, goods,leases and services | Xiaomi Communications Co.,Ltd.and its affiliates | 91,000.00 | 39,314.98 | Falling demand |
| CFEC and its affiliates | 5,200.00 | 2,979.08 | Theaters were closed, film releases were postponed, and demand declined | |
| CINIONIC and its affiliates | 13,500.00 | 9,428.09 | Project extension | |
| Beijing Donview Education Technology Co., Ltd. and its affiliates | 350.00 | 194.06 | N/A | |
| GDC and its affiliates | 1,300.00 | 1,115.59 | N/A | |
| Shenzhen Yili Ruiguang Technology Development Co., Ltd | 300.00 | 333.85 | N/A | |
| WeCast and its affiliates | 0.00 | -578.04 | Refund of goods | |
| Subtotal | 111,650.00 | 52,787.61 | ||
| Purchasing goods and raw materials from a related party | Xiaomi Communications Co.,Ltd.， and its affiliates | 36,000.00 | 14,639.65 | The sales business structure changed and the demand for procurement decreased |
| CFEC and its affiliates | 1,200.00 | 375.44 | Theaters were closed, film releases were postponed, and procurement demand declined | |
| WeCast and its affiliates | 0.00 | 18.80 | N/A | |
| GDC Technology Limited (BVI) and its affiliated companies | 0.00 | 42.48 | N/A | |
| Shenzhen Yili Ruiguang Technology Development Co., Ltd | 600.00 | 272.03 | N/A | |
| Subtotal | 37,800.00 | 15,348.40 |
| Receive labor services from a related part | Xiaomi Communications Co.,Ltd.and its affiliates | 100.00 | 22.60 | N/A |
| CFEC and its affiliates | 4,000.00 | 1,696.08 | Theaters were closed, film releases were postponed, and procurement demand declined | |
| Beijing Donview Education Technology Co., Ltd. and its affiliates | 0.00 | 0.35 | N/A | |
| Shenzhen Zhongguang Industrial Technology Research Institute | 0.00 | 2.36 | N/A | |
| Subtotal | 4,100.00 | 1,721.39 | ||
| Property lease | CFEC and its affiliates | 180.00 | 99.09 | N/A |
| Subtotal | 180.00 | 99.09 | ||
| Total | 153,730.00 | 69,956.49 |
3. Matters that have not been disclosed in any interim announcement
□ Applicable √ N/A
(II) Related-party transactions involving acquisition or sale of assets or equities
1. Matters already disclosed in the interim announcements about which no new information is
available
□ Applicable √ N/A
2. Matters already disclosed in the interim announcements about which there’s new informationavailable
□ Applicable √ N/A
3. Matters that have not been disclosed in any interim announcement
□ Applicable √ N/A
4. Fulfillment of performance covenants (if any) during the reporting period
√ Applicable □ N/A
(III) Related-party transactions involving joint external investments
1. Matters already disclosed in the interim announcements about which no new information isavailable
□ Applicable √ N/A
2. Matters already disclosed in the interim announcements about which there’s new information
available
□ Applicable √ N/A
3. Matters that have not been disclosed in any interim announcement
□ Applicable √ N/A
(IV) Accounts receivable from and payable to related parties
1. Matters already disclosed in the interim announcements about which no new information isavailable
□ Applicable √ N/A
2. Matters already disclosed in the interim announcements about which there’s new informationavailable
□ Applicable √ N/A
3. Matters that have not been disclosed in any interim announcement
□ Applicable √ N/A
(V) Financial business between the Company and its affiliated financial companies, or between theCompany’s controlled financial companies and affiliates
□ Applicable √ N/A
(VI) Others
□ Applicable √ N/A
XIII. Material contracts and performance thereof(I) Trusteeship, contracting and lease
1. Trusteeship
□ Applicable √ N/A
2. Contracting
□ Applicable √ N/A
3. Lease
√ Applicable □ N/A
In RMB 0’000
| Lessor | Name of lessee | Leased assets | Amount of leased assets | Lease start date | Lease end date | Lease income | Basis for determining lease income | Impact of lease income on the Company | Related-party transaction or not | Relationship |
| Shenzhen Meisheng Industry Co., Ltd. | Appotronics Corporation Limited | Office,R&D,factory, employee dormitory | 1,317.42 | 2022.12.01 | 2024.11.30 | / | / | / | No | None |
Description of lease
None
(II) Guarantees
√ Applicable □ N/A
In RMB 0’000
| Guarantees provided by the Company or its subsidiaries for the subsidiaries of the Company | ||||||||||||
| Guarantors | The relationship between the guarantor and the listed company | Secured Parties | The relationship between the secured party and the listed company | Amount of guarantee | Date of guarantee (date of signing of the agreement) | Guarantee start date | Guarantee maturity date | Type of Guarantee | Whether the guarantee has been fulfilled | Whether the guarantee is overdue | Guarantee overdue amount | Whether there is a counter-guarantee |
| Appotronics Corporation Limited | Corporate Headquarters | CINEAPPO Laser Cinema Technology (Beijing) Co., Ltd. | Holding subsidiaries | 50,000.00 | 2021-12-29 | 2021-12-29 | Three years after the expiration of the period of performance of the obligations under the main contract | Joint and several liability guarantees | NO | NO | NO | |
| Appotronics Corporation Limited | Corporate Headquarters | CINEAPPO Laser Cinema Technology (Beijing) Co., Ltd. | Holding subsidiaries | 23,000.00 | 2021-1-26 | 2021-1-26 | Two years after the date of expiry of the period of performance of the obligations | Joint and several liability guarantees | NO | NO | NO | |
| Appotronics Corporation Limited | Corporate Headquarters | CINEAPPO Laser Cinema Technology (Beijing) Co., Ltd. | Holding subsidiaries | 4,000.00 | 2021-12-27 | 2021-12-27 | Three years after the date of expiry of the period of performance of the obligation | Joint and several liability guarantees | NO | NO | NO | |
| Appotronics Corporation Limited | Corporate Headquarters | CINEAPPO Laser Cinema Technology (Beijing) Co., Ltd. | Holding subsidiaries | 5,000.00 | 2021-12-27 | 2021-12-27 | The guarantee period is three years, starting from the date of termination of the period in which the claim is determined | Joint and several liability guarantees | NO | NO | NO | |
| Appotronics Corporation Limited | Corporate Headquarters | CINEAPPO Laser Cinema Technology (Beijing) Co., Ltd. | Holding subsidiaries | 10,000.00 | 2022-12-30 | 2022-12-30 | The guarantee period is three years, starting from the date of termination of the period in which the claim is determined | Joint and several liability guarantees | NO | NO | NO | |
| Appotronics Corporation | Corporate Headquarters | Formovie (Chongqing) | Holding subsidiaries | 20,000.00 | 2021-9-10 | 2021-9-10 | Three years from the date of expiry of the | Joint and several liability | NO | NO | NO | |
| Limited | Innovative Technology Co., Ltd. | period for performance of the obligations stipulated in the main contract | guarantees | |||||||||
| Appotronics Corporation Limited | Corporate Headquarters | Formovie (Chongqing) Innovative Technology Co., Ltd. | Holding subsidiaries | 9,000.00 | 2021-12-6 | 2021-12-6 | Two years after the expiration of the performance period of the obligation stipulated in the debt contract | Joint and several liability guarantees | NO | NO | NO | |
| Appotronics Corporation Limited | Corporate Headquarters | Formovie (Chongqing) Innovative Technology Co., Ltd. | Holding subsidiaries | 30,000.00 | 2022-9-16 | 2022-9-16 | Three years from the date of expiry of the period for performance of the obligations stipulated in the main contract | Joint and several liability guarantees | NO | NO | NO | |
| Appotronics Corporation Limited | Corporate Headquarters | Formovie (Chongqing) Innovative Technology Co., Ltd. | Holding subsidiaries | 12,000.00 | 2022-12-22 | 2022-12-22 | Until three years after the date of payment of the latest of all financing drawn and used during the period of occurrence of the secured obligation under the Master Agreement or Interbank Loan, which should not be adjusted for early maturity | Joint and several liability guarantees | NO | NO | NO | |
| Appotronics Corporation Limited | Corporate Headquarters | Formovie (Chongqing) Innovative Technology Co., Ltd. | Holding subsidiaries | 5,000.00 | 2021-12-29 | 2021-12-29 | The guarantee period is three years, starting from the date of termination of the period in which the claim is determined | Joint and several liability guarantees | NO | NO | NO | |
| Appotronics Corporation Limited | Corporate Headquarters | Fengmi (Beijing) Technology Co., Ltd. | Holding company | 15,000.00 | 2022-6-13 | 2022-6-13 | The guarantee period is three years, starting from the date of termination of the period in which the claim is determined | Joint and several liability guarantees | NO | NO | NO | |
| Appotronics | Corporate | Formovie | Holding | 15,000.00 | 2021-8-23 | 2021-8-23 | Three years after the | Joint and several | NO | NO | NO |
| Corporation Limited | Headquarters | (Chongqing) Innovative Technology Co., Ltd. | subsidiaries | expiration of the period of performance of the obligations under the main contract | liability guarantees | ||||||||
| Appotronics Corporation Limited | Corporate Headquarters | Fengmi (Beijing) Technology Co., Ltd. | Holding company | 20,000.00 | 2021-8-23 | 2021-8-23 | Three years from the date of expiry of the period for performance of the obligations stipulated in the main contract | Joint and several liability guarantees | NO | NO | NO | ||
| Total amount of guarantees provided for the subsidiaries during the reporting period | 59,657.67 | ||||||||||||
| Balance of guarantees provided for the subsidiaries as of the end of the reporting period (B) | 64,795.08 | ||||||||||||
| Total amount of guarantees provided by the Company (including those provided for the subsidiaries) | |||||||||||||
| Total amount guaranteed (A+B) | 64,795.08 | ||||||||||||
| Proportion of total amount guaranteed to the net assets of the Company (%) | 24.47 | ||||||||||||
| Including: | |||||||||||||
| Total amount of guarantees provided for the shareholders, actual controller and their affiliates (C) | 0.00 | ||||||||||||
| Total amount of debt guarantees directly or indirectly provided for the obligors whose equity-debt ratio exceeds 70% (D) | 43,326.35 | ||||||||||||
| Total amount guaranteed in excess of 50% of the net assets of the Company (E) | 0.00 | ||||||||||||
| Total amount guaranteed (C+D+E) | 43,326.35 | ||||||||||||
| Explanation about outstanding guarantees for which the Company may assume joint and several liability | N/A | ||||||||||||
| Explanation about guarantees | N/A | ||||||||||||
(III) Entrusted cash asset management
1. Entrusted wealth management
(1) Overall situation of entrusted wealth management
√ Applicable □ N/A
In RMB 0’000
| Type | Source of funds | Total amount | Outstanding amount | Overdue amount |
| Bank wealth management amount | Idle funds raised | 37,100.00 | 18,000.00 | |
| Bank wealth management amount | Self-funded capital | 30,000.00 | 13,000.00 | |
| Brokerage products | Self-funded capital | 2,000.00 |
Other information
□ Applicable √ N/A
(2) Single entrusted wealth management
□ Applicable √ N/A
In RMB 0’000
| Entrusted | Types of entrusted financial management | The amount entrusted financial management | The start date of entrusted financial management | The terminate date of entrusted financial management | Funding sources | Funds investment | How remuneration is determined | Annualized rate of return | Expected benefits (if any) | Actual gains or losses | Actual takebacks | Whether or not due process has been carried out | Whether there is an entrusted financial plan in the future | Amount of impairment provision (if any)) |
| China CITIC Bank Shenzhen Longhua Sub-branch | Bank structured deposits | 18,000.00 | December 31, 2022 | March 31, 2023 | Raising funds | Contract agreement | 2.73% | 121.17 | Not expired | YES | YES | |||
| Shanghai Pudong Development Bank Shenzhen Branch | Bank structured deposits | 5,000.00 | October 8, 2022 | January 9, 2023 | Self-owned funds | Contract agreement | 3.25% | 41.08 | Not expired | YES | YES | |||
| Bank of Hangzhou Shenzhen Bay Sub-branch | Bank structured deposits | 5,000.00 | December 28, 2022 | March 30, 2023 | Self-owned funds | Contract agreement | 3.00% | 37.81 | Not expired | YES | YES | |||
| Bank of Hangzhou Shenzhen Bay Sub-branch | Bank structured deposits | 3,000.00 | December 28, 2022 | June 30, 2023 | Self-owned funds | Contract agreement | 3.00% | 45.37 | Not expired | YES | YES |
Other information
□ Applicable √ N/A
(3) Provision for impairment of entrusted wealth management products
□ Applicable √ N/A
2. Entrusted loans
(1) Overall situation of entrusted loans
□ Applicable √ N/A
Other information
□ Applicable √ N/A
(2) Single entrusted loans
□ Applicable √ N/A
Other information
□ Applicable √ N/A
(3) Provision for impairment of entrusted loans
□ Applicable √ N/A
3. Other information
□ Applicable √ N/A
(IV) Other material contracts
□ Applicable √ N/A
XIV. Use of offering proceeds
√ Applicable □ N/A
(I) Overall use of funds raised
√ Applicable □ N/A
In RMB
| Source of offering proceeds | Total offering proceeds | Net offering proceeds after deduction of offering expenses | Total offering proceeds committed | Total offering proceeds committed after adjustment (1) | Cumulative total offering proceeds used as of the end of the reporting period (2) | Cumulative investment progress as of the end of the reporting period (%) (3)=(2)/(1) | Amount invested in this year (4) | Ratio of the amount invested in this year (%) (5)=(4)/(1) |
| Initial public offering | 1,190,000,000.00 | 1,062,470,797.73 | 1,062,470,797.73 | 1,062,470,797.73 | 754,523,632.82 | 71.02 | 192,129,484.87 | 18.08 |
(II) Breakdown of investment projects
√ Applicable □ N/A
In RMB
| Item | Whether changeof invesment is involved | Source of offering proceeds | Total investment from the offering proceeds committed for the project | Total investmen t from the offering proceeds after adjustment (1) | Cumulative total offering proceeds used as of the end of the reporting period (2) | Cumulative investment progress as of the end of the reporting period (%) (3)=(2)/( 1) | Date for the project to reach the working condition for its intended Use[Note 1] | Completed or not | Whether the investment progress meets the progress planned | Specific reason for failing to achieve the plan of investment progress | Benefits or R&D results achieved by the project | Material changes in the project feasibility, if any, describe the specific reasons | Balance amount and reasons thereof |
| R&D and industrialization of new generation of laser display products | No | Initial public offering | 313,000,000.00 | 313,000,000.00 | 279,311,086.99 | 89.24 | December 2022 | Yes | Yes | N/A | 505,067,854.84[Note 4] | No | [Note 6] |
| R&D center at the head office of Appotronics[Not | No | Initial public offering | 284,000,000.00 | 284,000,000.00 | 86,369,838.08 | 30.41 | December 2023 | No | No | Due to the complex construction geological conditions of the | N/A | No | N/A |
| e 5] | project, the construction progress of the headquarters building has slowed down, and the project needs to be put into large-scale use after the completion of the construction of the Company's headquarters building, thus delaying the implementation progress of the project. | ||||||||||||
| Information system upgrade and building | No | Initial public offering | 70,000,000.00 | 70,000,000.00 | 34,070,372.54 | 48.67 | December 2023 | No | No | Since the main body of the head office building of the Company is stillunder construction,the prerequisites for implementing this project have not been satisfied. | N/A | No | N/A |
| Supplementary working capital[Note 2] | No | Initial public offering | 333,000,000.00 | 333,000,000.00 | 335,395,037.62 | 100.72 | N/A | Yes | Yes | N/A | N/A | No | N/A |
| Share repurchase [Note 3] | No | Initial public offering | 20,000,000.00 | 20,000,000.00 | 19,377,297.59 | 96.89 | September 2023 | Yes | Yes | N/A | N/A | No | N/A |
| Other over-raised funds | No | Initial public offering | 42,470,797.73 | 42,470,797.73 | - | N/A | No | Yes | N/A | N/A | No | N/A |
[Note 1]On March 18, 2022, the 9
thmeeting of the second Board of Directors and the 8
thmeeting of the second of Board of Supervisors reviewed the Proposal onPostponing Some Investment Projects, approving the Company to adjust the time for some investment projects to reach the working condition for its intended use.[Note 2]During the project, the total wealth management returns of RMB2.3950 million were realized from the special account of supplementary working capital, whichhave been put into use in the project (supplementary working capital). As of the date of approval for issue of this Report, the special account (Huaxia Bank Co., Ltd.Houhai Branch, account number: 10869000000251463) has been deregistered on July 30, 2020. The interest RMB1,418.11 incurred after the project has been paid to thebasic account of the Company to be used as supplementary working capital.[Note 3] The ninth meeting of the second session of the Board of Directors and the first extraordinary General Meeting of Shareholders in 2022 held on March 18, 2022and March 29, 2022 respectively deliberated and approved the Proposal on the Repurchase of the Company's Shares by Centralized Auction Transaction, and agreed thatthe Company would repurchase part of the issued RMB ordinary shares (A shares) of the Company through the Shanghai Stock Exchange trading system in a centralizedauction trading way.[Note 4] The incremental sales revenue before and after the investment is used as the benefit indicator for the current year.[Note 5] On April 26, 2023, the Company held the 19th meeting of the second session of the Board of Directors and the 18th meeting of the second session of the Board ofSupervisors respectively, deliberated and approved the Proposal on the Company Adjusting the Internal Investment Structure of Some Fundraising and InvestmentProjects, and agreed that the Company would adjust the internal investment structure of the fundraising project Appotronics Headquarters R&D Center Project, and reducethe "equipment purchase cost" of the project by RMB65 million and the "R&D expenditure" by RMB65 million.[Note 6] As of December 31, 2022, the R&D and industrialization project of a new generation of laser display products has been completed, with a total of RMB279.3111million of raised funds, accounting for 89.24% of the total amount of funds committed by the Company. On April 26, 2023, the Company held the 19th meeting of thesecond session of the Board of Directors and the 18th meeting of the second session of the Board of Supervisors, deliberated and approved the Proposal on the Completionof Part of the Company's Fundraising Projects and Permanent Replenishment of Liquidity with the Surplus Raised Funds, and agreed that the Company would close thefundraising project "a new generation of laser display product research and development and industrialization project", and a total of RMB51.6167 million is saved (as ofDecember 31, 2022, including interest income and wealth management income after deducting handling fees, the actual amount is subject to the balance of the specialaccount on the day the funds are transferred out) for permanent replenishment of liquidity.
(III) Change in investment projects during the reporting period
□ Applicable √ N/A
(IV) Other information about the use of offering proceeds during the reporting period
1. Early investment and replacement of offering proceeds
□ Applicable √ N/A
2. Supplement the working capital with idle offering proceeds
□ Applicable √ N/A
3. Cash management of idle offering proceeds, and investment in relevant products
√ Applicable □ N/A
On July 15, 2021, the Proposal on Cash Management of Temporarily Idle Offering Proceeds was reviewedand ed at the 32
nd
meeting of the first Board of Directors and the 19
thmeeting of the first Board ofSupervisors. It was approved that, without affecting the normal implementation of the investment plan foroffering proceeds, a maximum of RMB602 million temporarily idle offering proceeds maybe put under cashmanagement to purchase investment products featuring high security, good liquidity, and guarantee of theprincipal (including but not limited to structural deposits, agreement deposits, notice deposits, termdeposits, large-amount deposit note, and return notes), where the total amount forpurchasing return notes shall be no more than RMB200 million for no more than 12 months, which shall beeffective within 12 months from the review and approval by the Board of Directors and Board ofSupervisors.On June 29, 2022, the Proposal on Cash Management of Temporarily Idle Offering Proceeds was reviewedand ed at the 14
nd
meeting of the second Board of Directors and the 13
th
meeting of the secondBoard of Supervisors. It was approved that, without affecting the normal implementation of the investmentplan for offering proceeds, a maximum of RMB469 million temporarily idle offering proceeds maybe putunder cash management to purchase investment products featuring high security, good liquidity, andguarantee of the principal (including but not limited to structural deposits, agreement deposits, noticedeposits, term deposits, large-amount deposit note, and return notes), where the totalamount for purchasing return notes shall be no more than RMB100 million for no more than 12 months,which shall be effective within 12 months from the review and approval by the Board of Directors andBoard of Supervisors.
4. Supplement working capital or repay bank loans with excess offering proceeds
□ Applicable √ N/A
5. Others
√ Applicable □ N/A
1. On March 18, 2022, the Company held the ninth meeting of the second session of the Board ofDirectors and the eighth meeting of the second session of the Board of Supervisors, respectively, deliberatedand approved the Proposal on the Extension of Partial Fundraising and Investment Projects, and agreed thatthe Company would adjust the time for some fundraising and investment projects to reach the intended stateof use. For details, please refer to the Announcement on the Extension of Partial Fundraising and InvestmentProjects (Announcement No. 2022-019) disclosed on the Shanghai Stock Exchange website(www.sse.com.cn) on March 21, 2022.
2. On March 18, 2022 and March 29, 2022, the Company held the ninth meeting of the second session ofthe Board of Directors and the first extraordinary General Meeting of Shareholders in 2022, respectively,deliberated and approved the Proposal on the Repurchase of the Company's Shares by Centralized BiddingTransaction, and agreed that the Company would repurchase part of the Company's issued RMB ordinaryshares (A shares) through the Shanghai Stock Exchange trading system through the Shanghai Stock Exchangetrading system, and the total amount of repurchase funds shall not be less than RMB 10 million (including theprincipal amount). The repurchase price shall not exceed RMB 20 million (including the principal amount),and the repurchase price shall not exceed RMB 26.89 per share (including the principal amount, the adjustedprice of the 2021 equity distribution), and the repurchase period shall be within 6 months from the date ofapproval of the repurchase plan by the General Meeting of Shareholders.
As of December 31, 2022, the Company has repurchased a total of 900,000 shares through centralizedbidding transactions, accounting for 0.1969% of the Company's total share capital, and paid an amount ofRMB 19,377,297.59 (including stamp duty, transaction commissions and other transaction fees), and therepurchase of shares has been implemented.
3. On June 29, 2022, the Company held the 14th meeting of the second session of the Board of Directorsand the 13th meeting of the second session of the board of supervisors, deliberated and approved the Proposalon Adjusting the Internal Investment Structure of Some Fundraising and Investment Projects, and agreed thatthe Company would adjust the internal investment structure of the new generation of laser display productresearch and development and industrialization projects of the fundraising and investment projects, and theCompany would reduce the equipment purchase cost in the internal investment structure of the fundraisingand investment projects by RMB53.802 million, and increase the R&D expenditure items by RMB53.802million.XV. Explanation about other significant matters having significant influence on the value judgementand investment decision-making of investors
□ Applicable √ N/A
Section VII Changes in Shares and ShareholdersI. Changes in share capital(I) Statement of changes in shares
1. Statement of changes in shares
Unit: Share
| Before the change | +/- | After the change | |||||||
| Number | Percentage (%) | New shares | Bonus shares | Capitalization of capital reserve | Others | Subtotal | Number | Percentage (%) | |
| I. Non-tradable shares | 166,736,766 | 36.83 | 0 | 0 | 0 | -166,736,766 | -166,736,766 | 0 | 0 |
| 1. Shares held by the State | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2. Shares held by State-owned corporations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. Shares held by other domestic investors | 162,742,755 | 35.95 | 0 | 0 | 0 | -162,742,755 | -162,742,755 | 0 | 0 |
| Including: Shares held by domestic non- stated-owned corporations | 162,742,755 | 35.95 | 0 | 0 | 0 | -162,742,755 | -162,742,755 | 0 | 0 |
| Shares held by domestic natural persons | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. Shares held by foreign investors | 3,994,011 | 0.88 | 0 | 0 | 0 | -3,994,011 | -3,994,011 | 0 | 0 |
| Including: Shares held by foreign corporations | 3,994,011 | 0.88 | 0 | 0 | 0 | -3,994,011 | -3,994,011 | 0 | 0 |
| Shares held by foreign natural persons | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| II. Tradable shares | 286,020,135 | 63.17 | 0 | 0 | 0 | 171,087,403 | 171,087,403 | 457,107,538 | 100 |
| 1. RMB-denominated ordinary shares | 286,020,135 | 63.17 | 0 | 0 | 0 | 171,087,403 | 171,087,403 | 457,107,538 | 100 |
| 2. Foreign currency-denominated shares listed domestically | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3. Foreign currency-denominated shares listed overseas | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 4. Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| III. Total shares | 452,756,901 | 100 | 0 | 0 | 0 | 4,350,637 | 4,350,637 | 457,107,538 | 100 |
2. Explanation about changes in shares
√ Applicable □ N/A
(1) On July 19, 2022, the Company's 2021 Restricted Stock Incentive Plan granted 2,881,497 new shares in the first vesting period for the first time and were listed andcirculated, and the total share capital of the Company increased from 452,756,901 shares to 455,638,398 shares;
(2) On July 22, 2022, a total of 166,736,766 shares of the Company's initial public offering restricted shares held by the Company's seven shareholders were released fromsale and listed and circulated;
(3) On December 2, 2022, the Company's 2019 Restricted Stock Incentive Plan granted for the first time 1,469,140 new shares for the third vesting period and reserved forthe second vesting period and listed and circulated, and the total share capital of the Company increased from 455,638,398 shares to 457,107,538 shares.
3. Effect of the changes in shares on the earnings per share, net assets per share and other financial indicators of the most recent year and the most recentreporting period (if any)
√ Applicable □ N/A
4. Other information disclosed as the Company deems necessary or required by the securities regulatory authority
□ Applicable √ N/A
(II) Changes in non-tradable shares
√ Applicable □ N/A
Unit: Share
| Shareholder | Balance of non-tradable shares as at January 1, 2020 | Number of non-tradable shares unlocked in 2020 | Number of non-tradable shares increased in 2020 | Balance of non-tradable shares as at December 31, 2020 | Reason for restriction | Unlock date |
| Shenzhen Appotronics Holdings Limited | 79,762,679 | 79,762,679 | 0 | 0 | Initial Offer Shares Restricted Sale | July 22, 2022 |
| Shenzhen Yuanshi Laser Industrial Investment Consulting Partnership (LP) | 24,139,500 | 24,139,500 | 0 | 0 | Initial Offer Shares Restricted Sale | July 22, 2022 |
| Shenzhen Appotronics Daye Investment Partnership (LP) | 20,430,250 | 20,430,250 | 0 | 0 | Initial Offer Shares Restricted Sale | July 22, 2022 |
| Shenzhen Appotronics Hongye Investment Partnership (LP) | 15,662,374 | 15,662,374 | 0 | 0 | Initial Offer Shares Restricted Sale | July 22, 2022 |
| Shenzhen Jinleijing Investment Limited Partnership(LP) | 12,353,106 | 12,353,106 | 0 | 0 | Initial Offer Shares Restricted Sale | July 22, 2022 |
| Shenzhen Appotronics Chengye Consulting Partnership(LP) | 10,394,846 | 10,394,846 | 0 | 0 | Initial Offer Shares Restricted Sale | July 22, 2022 |
| BLACKPINE Investment Corp. Limited | 3,994,011 | 3,994,011 | 0 | 0 | Initial Offer Shares Restricted Sale | July 22, 2022 |
| Total | 166,736,766 | 166,736,766 | 0 | 0 | - | - |
II. Issuance and listing of securities(I) Securities issued during the reporting period
□ Applicable √ N/A
Explanation about the securities issued during the reporting period (in case of any outstanding bondswith different interest rates, please explain separately):
□ Applicable √ N/A
(II) Changes in total number of shares, shareholding structure, and structure of assets and liabilities of
the Company
√ Applicable □ N/A
1. On July 19, 2022, the Company's 2021 Restricted Stock Incentive Plan granted 2,881,497 new sharesin the first vesting period for the first time and listed and circulated, and the total share capital of theCompany increased from 452,756,901 shares to 455,638,398 shares. In view of the change in the total sharecapital and registered capital of the Company, some articles of the Articles of Association of the Companywould be amended in accordance with the requirements of relevant rules and the actual situation of theCompany. In October 2022, the Company completed the business registration procedures for the change ofregistered capital and the amendment of the Articles of Association.
2. On December 2, 2022, the Company's 2019 Restricted Stock Incentive Plan granted 1,469,140 newshares for the third vesting period and reserved for the second vesting period for the first time and were listedand circulated, and the total share capital of the Company increased from 455,638,398 shares to 457,107,538shares. In view of the change in the total share capital and registered capital of the Company, some articles ofthe Articles of Association of the Company would be amended in accordance with the requirements ofrelevant rules and the actual situation of the Company. In February 2023, the Company completed theindustrial and commercial registration procedures for the change of registered capital and the amendment ofthe Articles of Association.III. Shareholders and actual controller(I) Total number of shareholders
| Total number of ordinary shareholders as of the end of the reporting period | 13,509 |
| Total number of shareholders of ordinary shares as of the end of the month immediately prior to the issue date of this annual report (accounts) | 13,902 |
| Total number of shareholders of preferred shares whose voting right has been restituted as of the end of the reporting period (accounts) | N/A |
| Total number of shareholders of preferred shares whose voting right has been restituted as of the end of the month immediately prior to the issue date of this annual report | N/A |
| Total number of shareholders holding shares with special voting rights as of the end of the reporting period (accounts) | N/A |
| Total number of shareholders holding shares with special voting rights as of the end of the month prior to the disclosure date of the annual report (accounts) | N/A |
Number of holders of depository receipts
□ Applicable √ N/A
(II) Shares held by top 10 shareholders and top 10 holders of tradable shares as of the end of the reporting period
Unit: Share
| Shares held by top 10 shareholders | ||||||||
| Shareholder (Full name) | Change during the reporting period | Balance of shares held as of the end of the reporting period | Percentage (%) | Number of non- tradable shares held | Number of non-tradable shares held, including the shares lent out under the refinancing arrangement | Shares pledged, marked or frozen | Shareholder nature | |
| Share status | Number | |||||||
| Shenzhen Appotronics Holdings Limited | 0 | 79,762,679 | 17.45 | 0 | 0 | None | - | Domestic non- stated owned corporation |
| Shenzhen Yuanshi Laser Industrial Investment Consulting Partnership (LP) | 0 | 24,139,500 | 5.28 | 0 | 0 | None | - | Domestic non-stated owned corporation |
| Nantong Strait Appotronics Investment Partnership (LP) | -300,000 | 22,780,329 | 4.98 | 0 | 0 | None | - | Domestic non-stated owned corporation |
| Shenzhen Appotronics Daye Investment Partnership (LP) | 0 | 20,430,250 | 4.47 | 0 | 0 | None | - | Domestic non-stated owned corporation |
| Shenzhen Appotronics Hongye Investment Partnership (LP) | 0 | 15,662,374 | 3.43 | 0 | 0 | None | - | Domestic non-stated owned corporation |
| Shenzhen Jinleijing Investment Limited Partnership (LP) | 0 | 12,353,106 | 2.70 | 0 | 0 | None | - | Domestic non-stated owned corporation |
| Shenzhen Appotronics Chengye Consulting Partnership (LP) | 0 | 10,394,846 | 2.27 | 0 | 0 | None | - | Domestic non-stated owned corporation | ||
| Bank of China－E Fund Stable Income Bond Securities Investment Fund | +9,933,401 | 9,933,401 | 2.17 | 0 | 0 | None | - | other | ||
| Shenzhen Guochuang Chenggu Capital Management Co., Ltd. -Shenzhen Chengguhui Equity Investment Partnership (LP) | +721,400 | 7,685,769 | 1.68 | 0 | 0 | None | - | Domestic non-stated owned corporation | ||
| Industrial Bank Co., Ltd.—Tianhong Yongli Bond Securities Investment Fund | +3,661,614 | 7,043,611 | 1.54 | 0 | 0 | None | - | other | ||
| Shares held by top 10 holders of tradable shares | ||||||||||
| Shareholder | Number of tradable shares held | Type and number of shares | ||||||||
| Category | Number | |||||||||
| Shenzhen Appotronics Holdings Limited | 79,762,679 | RMB-denominated ordinary share | 79,762,679 | |||||||
| Shenzhen Yuanshi Laser Industrial Investment Consulting Partnership (LP) | 24,139,500 | RMB-denominated ordinary share | 24,139,500 | |||||||
| Nantong Strait Appotronics Investment Partnership (LP) | 22,780,329 | RMB-denominated ordinary share | 22,780,329 | |||||||
| Shenzhen Appotronics Daye Investment Partnership (LP) | 20,430,250 | RMB-denominated ordinary share | 20,430,250 | |||||||
| Shenzhen Appotronics Hongye Investment Partnership (LP) | 15,662,374 | RMB-denominated ordinary share | 15,662,374 | |||||||
| Shenzhen Jinleijing Investment Limited Partnership (LP) | 12,353,106 | RMB-denominated ordinary share | 12,353,106 | |||||||
| Shenzhen Appotronics Chengye Consulting Partnership (LP) | 10,394,846 | RMB-denominated ordinary share | 10,394,846 | |||||||
| Bank of China－E Fund Stable Income Bond Securities Investment Fund | 9,933,401 | RMB-denominated ordinary share | 9,933,401 | |||||||
| Shenzhen Guochuang Chenggu Capital Management Co., Ltd. -Shenzhen Chengguhui Equity Investment Partnership (LP) | 7,685,769 | RMB-denominated ordinary share | 7,685,769 | |||||||
| Industrial Bank Co., Ltd.—Tianhong Yongli Bond Securities Investment Fund | 7,043,611 | RMB-denominated ordinary share | 7,043,611 | |||||||
| Explanation about the special purchase account in top 10 shareholders | N/A |
| Explanation about entrusted voting rights, proxy voting rights, waiver of voting rights by the shareholders above | N/A |
| Affiliates or concert parties among the shareholders stated above | 1. As of December 31, 2022, the Company has received no statement from aforementioned shareholders to confirm that there is a related-party relationship or concerted action, except the concerted action among Shenzhen Appotronics Holdings Co., Ltd., Shenzhen Yuanshi Laser Industrial Investment Consulting Partnership (LP), Shenzhen Appotronics Daye Investment Partnership (LP), Shenzhen Appotronics Hongye Investment Partnership (LP), Shenzhen Jinleijing Investment Limited Partnership (LP), and Shenzhen Appotronics Chengye Consulting Partnership (LP) in top 10 shareholders of the Company. 2. We are not aware whether there are affiliates or concert parties as defined in the Administrative Measures for the Acquisition of the Listed Companies among other shareholders. |
| Holders of preferred shares whose voting right has been restituted and the number of shares held by them | N/A |
Top 10 holders of non-tradable shares and lock-up period
□ Applicable √ N/A
Statement of top 10 holders of domestic depository receipts as of the end of the reporting period
□ Applicable √ N/A
Number of non-tradable depository receipts held by top 10 holders and lock-up period
□ Applicable √ N/A
(III) Statement of top 10 shareholders by number of votes held as of the end of the reporting period
□ Applicable √ N/A
(IV) Strategic investors or general corporations that become top shareholders as a result of allotment ofnew shares/depository receipts
□ Applicable √ N/A
(V) Strategic allotment in IPO
1. Participation by any special asset management plan established by senior officers and keyemployees in the strategic allotment in IPO
□ Applicable √ N/A
2. Participation by any subsidiary of the sponsor in the strategic allotment in IPO
□ Applicable √ N/A
IV. Controlling shareholder and actual controller(I) Controlling shareholder1 Legal person
√ Applicable □ N/A
| Name | Shenzhen Appotronics Holdings Limited |
| Principal or legal representative | LI Yi |
| Date of establishment | January 17, 2014 |
| Main business | Investment holding |
| Shares held in other domestic or foreign listed companies during the reporting period | None |
| Other information | N/A |
2 Natural person
□ Applicable √ N/A
3 Special explanation if the Company does not have a controlling shareholder
□ Applicable √ N/A
4 Explanation about the change in the controlling shareholder during the reporting period
□ Applicable √ N/A
5 Block diagram of the controlling shareholder’s ownership of and control over the Company
√ Applicable □ N/A
Shenzhen Appotronics Holdings
LimitedAppotronics Corporation Limited
(II) Actual controller1 Legal person
□ Applicable √ N/A
2 Natural person
√ Applicable □ N/A
| Name | LI Yi |
| Nationality | China |
| Whether or not have right of residence in any other country or region | Yes |
| Main occupation and title | President and General Manager |
| Whether or not control any domestic or foreign listed company in the past 10 years | None |
3 Special explanation if the Company does not have an actual controller
□ Applicable √ N/A
4 Explanation about the change of control of the Company during the reporting period
□ Applicable √ N/A
5 Illustration of shareholding and controlling relation between the Company and its ultimatecontrolling shareholder
√ Applicable □ N/A
6 The actual controller controls the Company by means of trust or other assets management
□ Applicable √ N/A
(III) Other information about the controlling shareholder and the actual controller
□ Applicable √ N/A
V. The total shares pledged by the controlling shareholder or largest shareholder and partiesacting in concert therewith account for over 80% of the share held by such shareholder in theCompany
□ Applicable √ N/A
VI. Other corporate shareholders holding more than 10% shares
□ Applicable √ N/A
VII. Restrictions on the disposal of shares/depository receipts
□ Applicable √ N/A
VIII. Specific implementation of share repurchase during the reporting period
√ Applicable □ N/A
LI Yi
ShenzhenAppotronics HoldingsLimited
ShenzhenAppotronics HoldingsLimitedShenzhenYuanshi LaserIndustrialInvestmentConsultingPartnership(LP)
| Shenzhen Yuanshi Laser Industrial Investment Consulting Partnership (LP) | Shenzhen Appotronics Daye Investment Partnership (LP) | Shenzhen Appotronics Hongye Investment Partnership (LP) | Shenzhen Jinleijing Investment Limited Partnership(LP) | Shenzhen Appotronics Chengye Consulting Partnership(LP) |
A total control of 35.6%
A total control of 35.6%Appotronics Corporation Limited
In RMB 0’000
| Name of the share repurchase plan | A plan to repurchase the Company's shares in a centralized auction transaction |
| Time of disclosure of share repurchase plan | March 21, 2022 |
| Number of shares to be repurchased and proportion of total share capital (%) | 370,400 shares - 740,700 shares 0.08-0.16 |
| Amount to be repurchased | 1,000 - 2,000 |
| Proposed repurchase period | Within 6 months from the date on which the share repurchase plan is approved by the General Meeting of Shareholders (i.e. March 29, 2022). |
| Repurchase use | For employee share ownership plans or equity incentives |
| Number of Repurchased shares (in share) | 900,000 |
| The percentage of repurchased shares in the underlying shares involved in the equity incentive plan (%) (if any) | N/A |
| The Company's progress in reducing its holdings of repurchased shares through centralized auction trading | On September 27, 2022, the Company completed the implementation of the repurchase of shares upon the expiration of the repurchase period, and disclosed the Announcement on the Expiration of the Repurchase Period and the Implementation Results of the Repurchase of Shares. The Company has repurchased a total of 900,000 shares of the Company through the trading system of the Shanghai Stock Exchange in a centralized bidding transaction, accounting for 0.1975% of the Company's total share capital of 455,638,398 shares at that time, the highest price of repurchase is RMB26.79 per share, the lowest price of repurchase is RMB14.88 per share, the average price of repurchase is RMB21.53 per share, and the total amount of funds paid is RMB19,371,239.41 (excluding stamp duty, transaction commissions and other transaction fees). The repurchase of shares has been completed. |
Section VIII Preferred Shares
□ Applicable √ N/A
Section IX Corporate Bonds
I. Enterprise bonds, corporate bonds, and non-financial enterprise debt financing instruments
□ Applicable √ N/A
II. Convertible corporate bonds
□ Applicable √ N/A
Section X Financial Report
I. Auditor’s report
√ Applicable □ N/A
Auditor’s report
Tian Jian Shen (2023) No. 7-419To all shareholders of Appotronics Corporation Limited:
I. OpinionWe have audited the financial statements of Appotronics Corporation Limited (“Appotronics”), whichcomprise the consolidated and the parent company’s balance sheets as at December 31, 2022, and theconsolidated and the parent company’s income statements, the consolidated and the parent company’sstatements of cash flow and the consolidated and the parent company’s statements of changes in owners’equity for the year then ended, and the notes to the relevant financial statements.
In our opinion, the accompanying financial statements of Appotronics are prepared and present fairly, inall material respects, the consolidated and the parent company’s financial position as of December 31, 2022,and the consolidated and the parent company’s results of operations and cash flows for the year then ended inaccordance with Accounting Standardsfor Business Enterprises.II. Basis for opinionWe conducted our audit in accordance with Auditing Standards for Certified Public Accounts of China.Our responsibilities under those standards are further described in the Auditors’ Responsibilities for Audit ofFinancial Statements section of our report. We are independent of Appotronics Corporation in accordancewith the code of ethics for Chinese Certified Public Accountants, and we have fulfilled our other ethicalresponsibilities in accordance with the Code. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our opinion.III. Key audit itemsKey audit matters are those matters that, in our professional judgment, were of most significance in ouraudit of the financial statements of the current period. These matters were addressed in the context of ouraudit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide aseparate opinion on these matters.
(I) Revenue recognition
1. Description
Details of relevant information are disclosed in V.38,V.42 and VII.61, of section X.
Appotronics Corporation is mainly engaged in research, development, production, sales and leasing oflaser display core devices and complete equipment. In 2022, the operating income of AppotronicsCorporation amounted to RMB 2,541,144,635.15, of which sales and other incomes were RMB2,272,160,767.18, representing 89.41% of the total operating income, and lease incomes were RMB268,983,867.97, representing 10.59% of the total operating income.
As the operating income is one of Appotronics Corporation’s KPI, there may be an inherent risk that themanagement of Appotronics Corporation (hereinafter referred to as "management”) may recognize therevenue inappropriately to achieve specific objectives or expectations. Therefore, we identified revenuerecognition as a key audit matter.
2. Description of how the key audit matter was addressed in the audit
For revenue recognition, our audit procedures include, inter alia:
(1) Understand the key internal controls related to revenue recognition, evaluate the design of thosecontrols, determine whether they are implemented, and test the operational
effectiveness of the relevant internal controls;
(2) Examine major sales contracts and lease contracts, understand the major provisions or conditionsthereof, and evaluate whether revenue recognition methods are appropriate;
(3) Implement analysis procedures for operating income and gross margin by month, product, customer,etc., to identify whether there are significant or unusual fluctuations and to find out the causes of suchfluctuations;
(4) For sales income, sample supporting documents related to revenue recognition, including salescontracts or orders, sales invoices, warehouse receipts, delivery notes, transport information, customersignature forms, export declarations and electronic port system information; for lease income, samplesupporting documents including, among other things, lease contracts, orders, installation orders, unit leaseprice per hour, and number of hours consumed; for sales income, sample support
(5) In conjunction with accounts receivable confirmation procedures, send confirmation to majorcustomers to recognize the current incomes on a sample basis;
(6) Conduct the cut-off test on the operating incomes recognized on or after the balance sheet date toevaluate whether the operating incomes are recognized during the appropriate period;
(7) Obtain a record of sales returns after the balance sheet date to check if there is any instance thatconditions for revenue recognition were not met at the balance sheet date;
(8) Check whether information relative to operating income is properly presented in the financialstatements.
(II) Net realizable value of inventories
1. Description
Details of relevant information are disclosed in V.15 and VII.8 of Section X.
As of December 31, 2022, the carrying amount of inventories of Appotronics amounted toRMB924,291,920.80, and provisions for decline in value of inventories amounted to RMB58,651,959.01,hence the book value of inventories amounted to RMB 865,639,961.79.
At the balance sheet date, inventories are measured at the lower of cost and net realizable value. If thenet realizable value is below the cost of inventories, a provision for decline in value of inventories is made. Inview of the purpose of holding inventories, the management determines the estimated selling price ofinventories based on historical or actual selling prices, and the net realizable value of inventories inaccordance with the balance of the estimated selling price less the sum of the estimated costs of completionand the estimated costs necessary to make the sale and relevant taxes. The amount of inventories is materialand the determination of the net realizable value of inventories involves significant management judgment,therefore, we identified the determination of the net realizable value of inventories as a key audit matter.
2. Description of how the key audit matter was addressed in the audit
For the net realizable value of inventories, our audit procedures include, inter alia:
(1) Understand the key internal controls related to the net realizable value of inventories, evaluate thedesign of those controls, determine whether they are implemented, and test the operational effectiveness ofthe relevant internal controls;
(2) Review the management’s forecast of the estimated selling price of inventories on a sample basis,comparing the estimated selling price with historical data and subsequent situations, etc.;
(3) Evaluate the appropriateness of the management’s estimates on the estimated costs of completion ofinventories and the estimated costs necessary to make the sale and relevant taxes;
(4) Test the accuracy of the management’s calculation on the net realizable value of inventories;
(5) Evaluate the reasonableness of the management’s estimates on the net realizable value of inventoriesby checking inventories recognized at the end of the period in terms of long age, obsolescence, changes intechnology or market demand in conjunction with inventory monitoring;
(6) Check whether information relative to the net realizable value of inventories is properly presented inthe financial statements.
IV. Other information
The management is responsible for other information. The other information comprises the informationincluded in the annual report, but does not include the financial statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express anyform of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other informationand, in doing so, consider whether the other information is materially inconsistent with the financialstatements or our knowledge obtained in the auditor otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this otherinformation, we are required to report that fact. We have nothing to report in this regard.
V. Responsibilities of the Management and governance with respect to the financial statements
The management is responsible for the preparation and fair presentation of the financial statements inaccordance with Accounting Standards for Business Enterprises, and designing, implementing and maintaininginternal control that is necessary to enable the financial statements that are free from material misstatement,whether due to fraud or error.
In preparing the financial statements, the management is responsible for assessing Appotronics’ ability tocontinue as a going concern, disclosing, as applicable, matters related to going concern and using the goingconcern basis of accounting unless the management either intends to liquidate Appotronics or to ceaseoperations, or has no realistic alternative but to do so.
Those charged with governance of Appotronics (hereinafter referred to as “Those Charged withGovernance”) are responsible for overseeing Appotronics’ financial reporting process.
VI. Responsibilities of Certified Public Accountants with respect to the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole arefree from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes ouropinion solely to you. Reasonable assurance is a high level of assurance, but is not a guarantee that an auditconducted in accordance with China Standards on Auditing will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material if, individually or in theaggregate,they could reasonably be expected to influence the economic decisions of users taken on the basis ofthese financial statements.
As part of an audit in accordance with China Standards on Auditing, we exercise professional judgmentand maintain professional skepticism throughout the audit. We also:
(I) Identify and assess the risks of material misstatement of the financial statements, whether due to fraudor error, design and perform audit procedures responsive to those risks, and obtain audit evidence that issufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than that resulting from error, as fraud may involve collusion,forgery, intentionalomissions,misre presentations, or the override of internal control.
(II) Obtain an understanding of internal control relevant to the audit in order to design audit proceduresthat are appropriate in the circumstances.
(III) Evaluate the appropriateness of accounting policies used and the reasonableness of accountingestimates and related disclosures made by the management.
(IV) Conclude on the appropriateness of the management’s use of the going concern basis of accounting.Meanwhile, based on the audit evidence obtained, whether a material uncertainty exists related to events orconditions that may cast significant doubt on Appotronics Corporation’s ability to continue as a going concern.If we conclude that a material uncertainty exists, we are required by audit standards to draw users’ attention inour auditor’s report to the related disclosures in the financial statements. If such disclosures are inadequate, weare supposed to express an unqualified opinion. Our conclusions are based on the audit evidence obtained up tothe date of our auditor’s report. However, future events or conditions may cause Appotronics Corporation tocease to continue as a going concern.(V) Evaluate the overall presentation, structure and content of the financial statements, and whether thefinancial statements represent the underlying transactions and events in a manner that achieves fairpresentation.(VI) Obtain sufficient and appropriate audit evidence regarding the financial information of the entities orbusiness activities within Appotronics Corporation to express an opinion on the financial statements. We areresponsible for the direction, supervision and performance of the group audit. We remain solely responsible forour audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scopeand timing of the audit and significant audit findings, including any significant deficiencies in internal controlthat we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevantethical requirements regarding independence, and communicate with them all relationships and other mattersthat may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters thatwere of most significance in the audit of the financial statements of the current period and are therefore thekey audit matters. We describe these matters in our auditor’s report unless law or regulation precludes publicdisclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonably be expected tooutweigh the public interest benefits of such communication.
| Pan-China Certified Public Accountants (Special General Partnership) | Chinese Certified Public Accountant: (Partner in Charge) |
| Hangzhou City, China | Chinese Certified Public Accountant: |
| April 26, 2023 |
II. Financial statements
Consolidated Balance SheetDecember 31, 2022Prepared by: Appotronics Corporation Limited
In RMB
| Item | Note | December 31, 2022 | December 31, 2021 |
| Current Assets： | |||
| Cash and bank balances | VII. 1 | 1,355,882,208.63 | 957,729,831.15 |
| Balances with clearing agencies | |||
| Placements with banks and other financial institutions | |||
| Held-for-trading financial assets | VII. 2 | 352,880,000.00 | 417,200,000.00 |
| Derivative financial assets | |||
| Notes receivable | VII. 4 | 2,234,687.77 | 5,256,603.03 |
| Accounts receivable | VII. 5 | 208,260,235.79 | 403,134,471.87 |
| Receivables financing | VII. 6 | 4,279,041.00 | 244,860.00 |
| Prepayments | VII. 7 | 48,445,976.86 | 98,116,970.83 |
| Premiums receivable | |||
| Amounts receivable under reinsurance contracts | |||
| Reinsurer’s share of insurance contract reserves | |||
| Other receivables | VII. 8 | 26,331,721.55 | 30,472,595.66 |
| Including: Interest receivable | |||
| Dividend receivable | VII. 8 | 13,789,908.00 | 12,623,886.00 |
| Financial assets purchased under resale agreements | |||
| Inventories | VII. 9 | 865,639,961.79 | 769,621,133.00 |
| Contract assets | VII. 10 | 1,061,581.35 | 3,903,859.23 |
| Assets held for sale | |||
| Non-current assets due within one year | VII. 12 | 13,431,554.82 | 3,473,049.18 |
| Other current assets | VII. 13 | 106,502,611.79 | 52,761,820.83 |
| Total current assets | 2,984,949,581.35 | 2,741,915,194.78 | |
| Non-current Assets: | |||
| Loans and advances | |||
| Debt investments | |||
| Other debt investments | |||
| Long-term accounts receivable | VII. 16 | 11,524,193.80 | 5,793,552.74 |
| Long-term equity investment | VII. 17 | 162,394,917.57 | 293,601,085.27 |
| Investment in other equity instruments | VII. 18 | 7,075,419.38 | 7,075,419.38 |
| Other non-current financial assets | |||
| Investment property | |||
| Fixed assets | VII. 21 | 427,539,718.53 | 470,410,450.18 |
| Construction in progress | VII. 22 | 278,978,057.73 | 148,620,511.35 |
| Productive biological assets | |||
| Oil and gas assets | |||
| Right-of-use assets | VII. 25 | 62,255,670.29 | 26,803,910.76 |
| Intangible assets | VII. 26 | 290,341,693.08 | 301,164,605.56 |
| Development expenditure | |||
| Goodwill | |||
| Long-term prepaid expenses | VII. 29 | 5,990,984.03 | 10,126,164.82 |
| Deferred tax assets | VII. 30 | 89,730,936.02 | 80,721,419.29 |
| Other non-current assets | VII. 31 | 12,569,088.37 | 10,998,641.77 |
| Total non-current assets | 1,348,400,678.80 | 1,355,315,761.12 | |
| Total assets | 4,333,350,260.15 | 4,097,230,955.90 | |
| Current Liabilities: | |||
| Short-term borrowings | VII. 32 | 129,589,634.03 | 5,570,878.11 |
| Loans from the central bank | |||
| Taking from banks and other financial institutions | |||
| Held-for-trading financial liabilities | |||
| Derivative financial liabilities | |||
| Notes payable | VII. 35 | 201,299,388.57 | 134,378,967.61 |
| Accounts payable | VII. 36 | 276,845,321.28 | 419,966,567.27 |
| Advance from customers | VII. 37 | 113,834,728.10 | 130,288,312.62 |
| Contract liabilities | VII. 38 | 37,285,920.43 | 45,541,629.55 |
| Financial assets sold under repurchase agreements | |||
| Customer deposits and deposits from banks and other financial institutions | |||
| Funds from securities trading agency | |||
| Funds from underwriting securities agency | |||
| Employee benefits payable | VII. 39 | 58,470,960.55 | 64,119,087.51 |
| Taxes payable | VII. 40 | 8,272,768.90 | 19,546,190.23 |
| Other payables | VII. 41 | 56,662,357.08 | 54,115,784.80 |
| Including: Interest payable | |||
| Dividend payable | |||
| Fees and commissions payable | |||
| Amounts payable under reinsurance contracts | |||
| Liabilities held for sale | |||
| Non-current liabilities due within one year | VII. 43 | 178,031,817.37 | 154,785,116.35 |
| Other current liabilities | VII. 44 | 28,383,608.37 | 19,561,104.12 |
| Total current liabilities | 1,088,676,504.68 | 1,047,873,638.17 | |
| Non-current Liabilities: | |||
| Insurance contract reserves | |||
| Long-term borrowings | VII. 45 | 403,720,542.45 | 368,635,614.64 |
| Bonds payable | |||
| Where: Preferred shares | |||
| Perpetual bonds | |||
| Leasing liabilities | VII. 47 | 34,319,284.23 | 10,789,352.69 |
| Long-term payables | |||
| Long-term employee benefits payable | |||
| Estimated liabilities | VII. 50 | 56,463,882.87 | 36,428,688.94 |
| Deferred income | VII. 51 | 8,651,422.26 | 10,266,982.08 |
| Deferred tax liabilities | |||
| Other non-current liabilities | |||
| Total non-current liabilities | 503,155,131.81 | 426,120,638.35 | |
| Total liabilities | 1,591,831,636.49 | 1,473,994,276.52 | |
| Owners’ Equity (Shareholders’ Equity): | |||
| Paid-in capital (or share capital) | VII. 53 | 457,107,538.00 | 452,756,901.00 |
| Other equity instruments | |||
| Where: Preferred shares | |||
| Perpetual bonds | |||
| Capital reserve | VII. 55 | 1,530,752,116.04 | 1,400,605,136.65 |
| Less: Treasury shares | VII. 56 | 19,377,297.59 | |
| Other comprehensive income | VII. 57 | 5,736,897.41 | -16,840,512.60 |
| Special reserve | |||
| Surplus reserve | VII. 59 | 75,519,782.06 | 56,265,868.31 |
| General risk reserve | |||
| Undistributed profit | VII. 60 | 597,924,451.67 | 545,277,188.08 |
| Total owners’ (or shareholders’) equity attributable to owners of the parent company | 2,647,663,487.59 | 2,438,064,581.44 | |
| Minority interests | 93,855,136.07 | 185,172,097.94 | |
| Total owners’ (or shareholders’) equity | 2,741,518,623.66 | 2,623,236,679.38 | |
| Total liabilities and owners’ (or shareholders’) equity | 4,333,350,260.15 | 4,097,230,955.90 |
Legal Representative: LI Yi Chief Accountant: WANG Yingxia Person in Charge of the Accounting Body: WANG Yingxia
Balance Sheet of the parent company
December 31, 2022Prepared by: Appotronics Corporation Limited
In RMB
| Item | Note | December 31, 2022 | December 31, 2021 |
| Current Assets: | |||
| Cash and bank balances | 675,429,827.76 | 535,787,452.32 | |
| Held-for-trading financial assets | 352,880,000.00 | 417,200,000.00 | |
| Derivative financial assets | |||
| Notes receivable | 2,234,687.77 | 5,036,603.03 | |
| Accounts receivable | XVII. 1 | 688,004,828.29 | 616,216,169.96 |
| Receivables financing | 2,399,041.00 | 244,860.00 | |
| Prepayments | 11,009,592.85 | 24,555,245.46 | |
| Other receivables | XVII. 2 | 7,556,623.71 | 6,645,181.15 |
| Including: Interest receivable | |||
| Dividend receivable | |||
| Inventories | 390,906,125.18 | 327,484,120.10 | |
| Contract assets | 1,061,581.35 | 3,903,859.23 | |
| Assets held for sale | |||
| Non-current assets due within one year | 1,334,808.66 | 2,688,446.82 | |
| Other current assets | 27,531,860.98 | ||
| Total current assets | 2,160,348,977.55 | 1,939,761,938.07 | |
| Non-current Assets: | |||
| Debt investments | |||
| Other debt investments | |||
| Long-term accounts receivable | 944,108.40 | 3,528,917.07 | |
| Long-term equity investment | XVII. 3 | 450,239,347.45 | 440,559,012.12 |
| Investment in other equity instruments | 7,075,419.38 | 7,075,419.38 | |
| Other non-current financial assets | |||
| Investment property | |||
| Fixed assets | 66,271,459.60 | 59,043,066.43 | |
| Construction in progress | 270,837,599.21 | 133,111,026.64 | |
| Productive biological assets | |||
| Oil and gas assets | |||
| Right-of-use assets | 52,738,418.54 | 17,152,430.20 | |
| Intangible assets | 294,108,453.73 | 305,569,269.44 | |
| Development expenditure | |||
| Goodwill | |||
| Long-term prepaid expenses | 487,991.29 | 4,841,091.62 | |
| Deferred tax assets | 20,220,930.66 | 22,028,444.60 | |
| Other non-current assets | 9,952,305.78 | 6,093,687.23 | |
| Total non-current assets | 1,172,876,034.04 | 999,002,364.73 | |
| Total assets | 3,333,225,011.59 | 2,938,764,302.80 | |
| Current Liabilities: | |||
| Short-term borrowings | 60,043,166.67 | ||
| Held-for-trading financial liabilities | |||
| Derivative financial liabilities | |||
| Notes payable | 58,301,159.76 | 41,601,830.90 | |
| Accounts payable | 275,547,785.20 | 311,370,715.78 | |
| Advance from customers | 999,484.03 | ||
| Contract liabilities | 19,945,270.00 | 14,130,218.03 | |
| Employee benefits payable | 35,920,277.61 | 41,239,602.09 | |
| Taxes payable | 5,339,271.71 | 11,755,599.27 | |
| Other payables | 9,722,655.99 | 13,006,204.53 | |
| Including: Interest payable | |||
| Dividend payable | |||
| Liabilities held for sale | |||
| Non-current liabilities due within one year | 24,463,018.64 | 43,166,652.33 | |
| Other current liabilities | 2,666,327.90 | 839,898.70 | |
| Total current liabilities | 491,948,933.48 | 478,110,205.66 | |
| Non-current Liabilities: | |||
| Long-term borrowings | 148,087,667.43 | 54,497,768.01 | |
| Bonds payable | |||
| Where: Preferred shares | |||
| Perpetual bonds | |||
| Leasing liabilities | 29,114,281.86 | 4,445,612.91 | |
| Long-term payables | |||
| Long-term employee benefits payable | |||
| Estimated liabilities | 24,939,050.33 | 20,275,524.78 | |
| Deferred income | 5,630,959.06 | 9,543,692.89 | |
| Deferred tax liabilities | |||
| Other non-current liabilities | |||
| Total non-current liabilities | 207,771,958.68 | 88,762,598.59 | |
| Total liabilities | 699,720,892.16 | 566,872,804.25 | |
| Owners’ Equity (Shareholders’ Equity): | |||
| Paid-in capital (or share capital) | 457,107,538.00 | 452,756,901.00 | |
| Other equity instruments | |||
| Where: Preferred shares | |||
| Perpetual bonds | |||
| Capital reserve | 1,541,789,874.63 | 1,410,150,134.25 | |
| Less: Treasury shares | 19,377,297.59 | ||
| Other comprehensive income | |||
| Special reserve | |||
| Surplus reserve | 74,242,241.33 | 54,988,327.58 | |
| Undistributed profit | 579,741,763.06 | 453,996,135.72 | |
| Total owners’ (or shareholders’) equity | 2,633,504,119.43 | 2,371,891,498.55 | |
| Total liabilities and owners’ (or shareholders’) equity | 3,333,225,011.59 | 2,938,764,302.80 |
Legal Representative: LI Yi Chief Accountant: WANG Yingxia Person in Charge of the Accounting Body: WANG Yingxia
Consolidated Income Statement
January to December 2022
In RMB
| Item | Note | 2022 | 2021 |
| I. Total operating income | 2,541,144,635.15 | 2,498,228,401.78 | |
| Where: Operating income | VII. 61 | 2,541,144,635.15 | 2,498,228,401.78 |
| Interest income | |||
| Premiums earned | |||
| Fee and commission income | |||
| II. Total operating costs | 2,504,104,232.01 | 2,338,656,541.27 | |
| Where: Operating costs | VII. 61 | 1,711,732,842.88 | 1,651,089,557.25 |
| Interest expenses | |||
| Fee and commission expenses | |||
| Surrenders | |||
| Claims and policyholder benefits (net of amounts recoverable from reinsurers) | |||
| Net withdrawal of insurance contract reserves | |||
| Insurance policyholder dividends | |||
| Expenses for reinsurance accepted | |||
| Tax and surcharge | VII. 62 | 11,111,853.75 | 8,776,858.79 |
| Selling expenses | VII. 63 | 334,758,958.86 | 252,854,103.31 |
| Administrative expenses | VII. 64 | 193,554,776.41 | 187,933,417.27 |
| R&D expenses | VII. 65 | 262,108,405.90 | 236,702,224.29 |
| Financial expenses | VII. 66 | -9,162,605.79 | 1,300,380.36 |
| Where: Interest expense | 24,819,665.70 | 17,079,723.61 | |
| Interest income | 17,711,130.51 | 17,645,299.09 | |
| Add: Other income | VII. 67 | 33,949,485.88 | 46,147,218.18 |
| Investment income (loss is indicated by “-”) | VII. 68 | 3,979,813.96 | 32,633,507.12 |
| Where: Income from investments in associates and joint ventures | -3,244,838.52 | 22,856,529.68 | |
| Gains from derecognition of financial assets at amortized assets | -912,618.35 | ||
| Foreign exchange gains (loss is indicated by “-”) | |||
| Gains from net exposure hedges (loss is indicated by “-”) | |||
| Gains from changes in fair values (loss is | VII. 70 | -3,320,000.00 | 40,127,764.00 |
| indicated by “-”) | |||
| Losses of credit impairment (loss is indicated by “-”) | VII. 71 | -10,257,975.50 | -6,809,291.29 |
| Impairment losses of assets (loss is indicated by “-”) | VII. 72 | -48,234,017.58 | -36,946,167.95 |
| Gains from disposal of assets (loss is indicated by “-”) | VII. 73 | 229,000.28 | 2,967,788.29 |
| III. Operating profit (loss is indicated by “-”) | 13,386,710.18 | 237,692,678.86 | |
| Add: Non-operating income | VII. 74 | 16,589,847.66 | 52,628,162.08 |
| Less: Non-operating expenses | VII. 75 | 2,466,545.66 | 1,793,084.65 |
| IV. Total profits (total losses are indicated by “-”) | 27,510,012.18 | 288,527,756.29 | |
| Less: Income tax expenses | VII. 76 | -3,328,785.48 | 66,992,939.15 |
| V. Net profits (net losses are indicated by “-”) | 30,838,797.66 | 221,534,817.14 | |
| (I) Categorized by the continuity of operation | |||
| 1. Net profits from continuing operations (net losses are indicated by "-") | 30,838,797.66 | 221,534,817.14 | |
| 2. Net profits from discontinued operations (net losses are indicated by “-”) | |||
| (II) Categorized by the ownership | |||
| 1. Net profits attributable to shareholders of the parent company (net losses are indicated by "-") | 119,440,773.77 | 233,364,344.09 | |
| 2. Profits or losses attributable to minority shareholders (net losses are indicated by “-”) | -88,601,976.11 | -11,829,526.95 | |
| VI. Other comprehensive income, net of tax | VII、77 | 20,863,757.74 | -13,577,010.78 |
| (I) Other comprehensive income that can be attributable to owners of the parent company, net of tax | 22,577,410.01 | -13,626,220.67 | |
| 1. Other comprehensive income that cannot be reclassified subsequently to profit or loss | -4,900,000.00 | ||
| (1) Changes from remeasurement of defined benefit plans | |||
| (2) Other comprehensive income that cannot be reclassified to profit or loss under the equity method | |||
| (3) Changes in fair value of investments in other equity instruments | -4,900,000.00 | ||
| (4) Changes in fair value of enterprises’ own credit risks | |||
| 2. Other comprehensive income that will be reclassified to profit or loss | 22,577,410.01 | -8,726,220.67 | |
| (1) Other comprehensive income that will be reclassified to profit or loss under the equity method | -12,813,785.24 | -366,814.82 | |
| (2) Changes in fair value of other debt investments | |||
| (3) Amount of financial assets reclassified to other comprehensive income | |||
| (4) Provision for credit impairment of other debt investments | |||
| (5) Reserve for cash flow hedges | |||
| (6) Exchange differences on translation of financial statements denominated in foreign currencies | 35,391,195.25 | -8,359,405.85 | |
| (7) Others | |||
| (II) Other comprehensive income that can be attributable to minority shareholders, net of tax | -1,713,652.27 | 49,209.89 | |
| VII. Total comprehensive income | 51,702,555.40 | 207,957,806.36 | |
| (I) Total comprehensive income that can be attributable to owners of the parent company | 142,018,183.78 | 219,738,123.42 | |
| (II) Total comprehensive income that can be attributable to minority shareholders | -90,315,628.38 | -11,780,317.06 | |
| VIII. Earnings per share: | |||
| (I) Basic earnings per share (RMB/share) | 0.26 | 0.52 | |
| (II) Diluted earnings per share (RMB/share) | 0.26 | 0.51 | |
In the event of business combinations involving enterprises under common control, the net profits realizedprior to the combination by the party being absorbed is: RMB 0, and the net profits realized in the lastperiod by the party being absorbed is: RMB 0.
Legal Representative: LI Yi Chief Accountant: WANG Yingxia Person in Charge of the Accounting Body: WANG Yingxia
Income Statement of the parent company
January to December 2022
In RMB
| Item | Note | 2022 | 2021 |
| I. Operating income | XVII. 4 | 1,345,923,616.67 | 1,445,208,597.94 |
| Less: Operating costs | XVII. 4 | 910,770,517.27 | 951,761,428.41 |
| Tax and surcharge | 7,604,069.03 | 4,824,423.22 | |
| Selling expenses | 88,126,865.23 | 81,267,047.72 | |
| Administrative expenses | 122,275,548.87 | 114,480,252.18 | |
| R&D expenses | 151,041,023.34 | 128,807,240.92 | |
| Financial expenses | -27,358,557.34 | -21,476,404.98 | |
| Where: Interest expense | 3,615,664.22 | 2,244,930.36 | |
| Interest income | 20,440,797.02 | 24,781,253.41 | |
| Add: Other income | 20,926,293.34 | 27,780,796.53 | |
| Investment income (loss is indicated by “-”) | XVII. 5 | 103,034,950.62 | 27,249,704.79 |
| Where: Income from investments in associates and joint ventures | |||
| Gains from derecognition of financial assets at amortized assets | |||
| Gains from net exposure hedges (loss is indicated by “-”) | |||
| Gains from net exposure hedges (loss is indicated by “-”) | -3,320,000.00 | 2,200,000.00 | |
| Losses of credit impairment (loss is indicated by “-”) | -1,433,483.62 | -4,798,060.82 | |
| Impairment losses of assets (loss is indicated by “-”) | -15,970,957.71 | -21,377,940.23 | |
| Gains from disposal of assets (loss is indicated by “-”) | 11,882.43 | ||
| II. Operating profit (loss is indicated by “-”) | 196,712,835.33 | 216,599,110.74 | |
| Add: Non-operating income | 113,375.83 | 2,396,233.70 | |
| Less: Non-operating expenses | 2,033,425.93 | 973,929.02 | |
| III. Total profits (total losses are indicated by “-”) | 194,792,785.23 | 218,021,415.42 | |
| Less: Income tax expenses | 2,253,647.71 | 8,133,765.70 | |
| IV. Net profits (net losses are indicated by “-”) | 192,539,137.52 | 209,887,649.72 | |
| (I) Net profits from continuing operations (net losses are indicated by “-”) | 192,539,137.52 | 209,887,649.72 | |
| (II) Net profits from discontinued operations (net losses are indicated by “-”) | |||
| V. Other comprehensive income, net of tax | |||
| (I) Other comprehensive income that cannot be reclassified subsequently to profit or loss | |||
| 1. Changes from remeasurement of defined benefit plans | |||
| 2. Other comprehensive income that cannot be reclassified to profit or loss under the equity method | |||
| 3. Changes in fair value of investments in other equity instruments |
| 4. Changes in fair value of enterprises’ own credit risks | |||
| (II) Other comprehensive income that will be reclassified to profit or loss | |||
| 1. Other comprehensive income that will be reclassified to profit or loss under the equity method | |||
| 2. Changes in fair value of other debt investments | |||
| 3. Amount of financial assets reclassified to other comprehensive income | |||
| 4. Provision for credit impairment of other debt investments | |||
| 5. Reserve for cash flow hedges | |||
| 6. Exchange differences on translation of financial statements denominated in foreign currencies | |||
| 7. Others | |||
| VI. Total comprehensive income | 192,539,137.52 | 209,887,649.72 | |
| VII. Earnings per share: | |||
| (I) Basic earnings per share (RMB/share) | |||
| (II) Diluted earnings per share (RMB/share) | |||
Legal Representative: LI Yi Chief Accountant: WANG Yingxia Person in Charge of the Accounting Body: WANG Yingxia
Consolidated Cash Flow Statement
January to December 2022
In RMB
| Item | Note | 2022 | 2021 |
| I. Cash Flows from Operating Activities: | |||
| Cash receipts from the sale of goods and the rendering of services | 2,961,315,911.23 | 2,750,740,564.95 | |
| Net increase in customer deposits and deposits from banks and other financial institutions | |||
| Net increase in loans from the central bank | |||
| Net increase in taking from banks and other financial institutions | |||
| Cash receipts from premiums under direct insurance contracts | |||
| Net cash receipts from reinsurance business | |||
| Net cash receipts from policyholders’ deposits and investment contract liabilities | |||
| Cash receipts from interest, fees and commissions | |||
| Net increase in taking from banks | |||
| Net increase in financial assets sold under repurchase arrangements | |||
| Net cash received from securities trading agencies | |||
| Receipts of tax refunds | 9,075,667.22 | 8,006,027.05 | |
| Other cash receipts relating to operating activities | VII.78 | 153,496,117.32 | 184,950,300.13 |
| Subtotal of cash inflows from operating activities | 3,123,887,695.77 | 2,943,696,892.13 | |
| Cash payments for goods purchased and services received | 1,984,713,135.68 | 2,086,007,277.39 | |
| Net increase in loans and advances to customers | |||
| Net increase in balance with the central bank and due from banks and other financial institutions | |||
| Cash payments for claims and policyholders’ benefits under direct insurance contracts | |||
| Net increase in placements with banks and other financial institutions | |||
| Cash payments for interest, fees and commissions | |||
| Cash payments for insurance policyholder dividends | |||
| Cash payments to and on behalf of employees | 443,190,106.16 | 363,360,992.08 | |
| Payments of various types of taxes | 90,351,732.74 | 82,594,392.29 | |
| Other cash payments relating to operating activities | VII.78 | 428,282,005.50 | 353,397,003.53 |
| Subtotal of cash outflows from operating activities | 2,946,536,980.08 | 2,885,359,665.29 | |
| Net cash flow from operating activities | 177,350,715.69 | 58,337,226.84 | |
| II. Cash Flows from Investing Activities: | |||
| Cash receipts from disposals and recovery of investments | 2,216,404,000.00 | 2,073,056,003.00 | |
| Cash receipts from investment income | 12,837,561.73 | 9,785,727.49 | |
| Net cash receipts from disposals of fixed assets, intangible assets and other long- term assets | 6,713.15 | 3,265,966.25 | |
| Net cash receipts from disposals of subsidiaries and other business units | |||
| Other cash receipts relating to investing activities | VII.78 | 8,004,240.00 | |
| Subtotal of cash inflows from investing activities | 2,237,252,514.88 | 2,086,107,696.74 | |
| Cash payments to acquire or construct fixed assets, intangible assets and other long-term assets | 167,335,288.66 | 123,016,450.20 | |
| Cash payments to acquire investments | 2,022,000,000.00 | 2,396,564,750.05 | |
| Net increase in pledged loans receivables | |||
| Net cash payments for acquisitions of subsidiaries and other business units | 11,432,903.47 | ||
| Other cash payments relating to investing activities | |||
| Subtotal of cash outflows from investing activities | 2,189,335,288.66 | 2,531,014,103.72 | |
| Net cash flows from investment activities | 47,917,226.22 | -444,906,406.98 | |
| III. Cash Flows from Financing Activities: | |||
| Cash receipts from capital contributions | 76,598,336.46 | 225,131,579.00 | |
| Where: Cash receipts from capital contributions from minority shareholders of subsidiaries | 225,131,579.00 | ||
| Cash receipts from borrowings | 443,474,932.04 | 486,480,176.26 | |
| Other cash receipts relating to financing activities | |||
| Subtotal of cash inflows from financing activities | 520,073,268.50 | 711,611,755.26 | |
| Cash repayments of borrowings | 272,903,834.00 | 309,332,017.81 | |
| Cash payments for distribution of dividends or profits or settlement of interest expenses | 81,512,905.15 | 59,438,696.90 | |
| Where: Payments for distribution of dividends or profits to minority shareholders of subsidiaries | 7,360,000.00 | 18,400,000.00 | |
| Other cash payments relating to financing activities | VII.78 | 49,643,474.28 | 47,271,031.50 |
| Subtotal of cash outflows from financing activities | 404,060,213.43 | 416,041,746.21 | |
| Net cash flows from financing activities | 116,013,055.07 | 295,570,009.05 | |
| IV. Effect of Foreign Exchange Rate Changes on Cash and Cash Equivalents | 22,106,239.41 | -1,330,751.62 | |
| V. Net Increase in Cash and Cash Equivalents | 363,387,236.39 | -92,329,922.71 | |
| Add: Opening balance of cash and cash equivalents | 891,195,166.73 | 983,525,089.44 | |
| VI. Closing Balance of Cash and Cash Equivalents | 1,254,582,403.12 | 891,195,166.73 | |
Legal Representative: LI Yi Chief Accountant: WANG Yingxia Person in Charge of the Accounting Body: WANG Yingxia
Cash Flow Statement of the parent company
January to December 2022
In RMB
| Item | Note | 2022 | 2021 |
| I. Cash Flows from Operating Activities: | |||
| Cash receipts from the sale of goods and the rendering of services | 1,437,145,165.15 | 1,537,029,483.55 | |
| Receipts of tax refunds | 2,037,215.25 | 1,992,222.29 | |
| Other cash receipts relating to operating activities | 60,542,250.60 | 51,349,254.59 | |
| Subtotal of cash inflows from operating activities | 1,499,724,631.00 | 1,590,370,960.43 | |
| Cash payments for goods purchased and services received | 1,054,147,368.37 | 1,086,842,696.51 | |
| Cash payments to and on behalf of employees | 261,855,452.88 | 216,225,456.23 | |
| Payments of various types of taxes | 48,340,610.72 | 45,905,948.64 | |
| Other cash payments relating to operating activities | 104,047,838.81 | 129,883,242.51 | |
| Subtotal of cash outflows from operating activities | 1,468,391,270.78 | 1,478,857,343.89 | |
| Net cash flow from operating activities | 31,333,360.22 | 111,513,616.54 | |
| II. Cash Flows from Investing Activities: | |||
| Cash receipts from disposals and recovery of investments | 1,993,000,000.00 | 1,650,716,923.79 | |
| Cash receipts from investment income | 103,034,950.62 | 21,200,960.36 | |
| Net cash receipts from disposals of fixed assets, intangible assets and other long- term assets | 290,523.88 | ||
| Net cash receipts from disposals of subsidiaries and other business units | |||
| Other cash receipts relating to investing activities | 141,582,498.60 | ||
| Subtotal of cash inflows from investing activities | 2,096,325,474.50 | 1,813,500,382.75 | |
| Cash payments to acquire or construct fixed assets, intangible assets and other long-term assets | 154,297,761.42 | 94,427,931.02 | |
| Cash payments to acquire investments | 1,932,000,000.00 | 1,962,997,653.52 | |
| Net cash payments for acquisitions of subsidiaries and other business units | |||
| Other cash payments relating to investing activities | 45,139,057.42 | ||
| Subtotal of cash outflows from investing activities | 2,086,297,761.42 | 2,102,564,641.96 | |
| Net cash flows from investment activities | 10,027,713.08 | -289,064,259.21 | |
| III. Cash Flows from Financing Activities: | |||
| Cash receipts from capital contributions | 76,598,336.46 | ||
| Cash receipts from borrowings | 203,474,932.04 | 54,430,844.66 | |
| Other cash receipts relating to financing activities | 29,000,000.00 | ||
| Subtotal of cash inflows from financing activities | 309,073,268.50 | 54,430,844.66 | |
| Cash repayments of borrowings | 79,000,000.00 | 12,511,648.92 | |
| Cash payments for distribution of dividends or profits or settlement of interest expenses | 53,675,287.81 | 26,734,065.79 | |
| Other cash payments relating to financing activities | 71,573,255.83 | 21,027,248.92 | |
| Subtotal of cash outflows from financing activities | 204,248,543.64 | 60,272,963.63 | |
| Net cash flows from financing activities | 104,824,724.86 | -5,842,118.97 | |
| IV. Effect of Foreign Exchange Rate Changes on Cash and Cash Equivalents | 5,563,361.83 | -11,728.85 | |
| V. Net Increase in Cash and Cash Equivalents | 151,749,159.99 | -183,404,490.49 | |
| Add: Opening balance of cash and cash equivalents | 483,223,615.33 | 666,628,105.82 | |
| VI. Closing Balance of Cash and Cash Equivalents | 634,972,775.32 | 483,223,615.33 | |
Legal Representative: LI Yi Chief Accountant: WANG Yingxia Person in Charge of the Accounting Body: WANG Yingxia
Consolidated Statement of Changes in Owners’ Equity
January to December 2022
In RMB
| Item | 2022 | ||||||||||||||
| Equity attributable to owners of the parent company | Minority interests | Total owner’s equity | |||||||||||||
| Paid-in capital (or share capital) | Other equity instruments | Capital reserve | Less: Treasury shares | Other comprehensive income | Special reserve | Surplus reserve | General risk reserve | Undistributed profit | Others | Subtotal | |||||
| Preferred shares | Perpetual bonds | Others | |||||||||||||
| I. Closing balance of last year | 452,756,901.00 | 1,400,605,136.65 | -16,840,512.60 | 56,265,868.31 | 545,277,188.08 | 2,438,064,581.44 | 185,172,097.94 | 2,623,236,679.38 | |||||||
| Add: Changes in accounting policies | |||||||||||||||
| Corrections of prior period errors | |||||||||||||||
| Business combination involving enterprises under common control | |||||||||||||||
| Others | |||||||||||||||
| II. Opening balance of the current year | 452,756,901.00 | 1,400,605,136.65 | -16,840,512.60 | 56,265,868.31 | 545,277,188.08 | 2,438,064,581.44 | 185,172,097.94 | 2,623,236,679.38 | |||||||
| III. Changes for the year (decrease is indicated by “-”) | 4,350,637.00 | 130,146,979.39 | 19,377,297.59 | 22,577,410.01 | 19,253,913.75 | 52,647,263.59 | 209,598,906.15 | -91,316,961.87 | 118,281,944.28 | ||||||
| (I) Total comprehensive income | 22,577,410.01 | 119,440,773.77 | 142,018,183.78 | -90,315,628.38 | 51,702,555.40 | ||||||||||
| (II)Owners’ contributions and reduction in capital | 4,350,637.00 | 130,146,979.39 | 19,377,297.59 | 115,120,318.80 | 6,358,666.51 | 121,478,985.31 | |||||||||
| 1. Ordinary shares contribute d by owners | 4,350,637.00 | 72,247,699.46 | 76,598,336.46 | 76,598,336.46 | |||||||||||
| 2. Capital contribution from holders of other equity instruments | - | ||||||||||||||
| 3. Share- based payment recognized in owners’ equity | 57,899,279.93 | 57,899,279.93 | 6,358,666.51 | 64,257,946.44 | |||||||||||
| 4. Others | 19,377,297.59 | -19,377,297.59 | -19,377,297.59 | ||||||||||||
| (III) Profit distribution | 19,253,913.75 | -66,793,510.18 | -47,539,596.43 | -7,360,000.00 | -54,899,596.43 | ||||||||||
| 1. Transfer to surplus reserve | 19,253,913.75 | -19,253,913.75 | |||||||||||||
| 2.Transfer to general reserve | |||||||||||||||
| 3.Distributio ns to owners (or shareholders) | -47,539,596.43 | -47,539,596.43 | -7,360,000.00 | -54,899,596.43 | |||||||||||
| 4. Others | |||||||||||||||
| (IV)Transfers within owners’ equity | |||||||||||||||
| 1.Capitalizat ion of capital reserve |
| 2.Capitalizat ion of surplus reserve | |||||||||||||||
| 3. Loss offset by surplus reserve | |||||||||||||||
| 4.Retained earnings carried forward from changes in defined benefit plans | |||||||||||||||
| 5.Retained earnings carried forward from other comprehensive income | |||||||||||||||
| 6. Others | |||||||||||||||
| (V)Special reserve | |||||||||||||||
| 1.Transfer to special reserve in the period | |||||||||||||||
| 2. Amount utilized in the period | |||||||||||||||
| (VI) Others | |||||||||||||||
| IV.Closing balance of the current year | 457,107,538.00 | 1,530,752,116.04 | 19,377,297.59 | 5,736,897.41 | 75,519,782.06 | 597,924,451.67 | 2,647,663,487.59 | 93,855,136.07 | 2,741,518,623.66 |
| Item | 2021 | ||||||||||||||
| Equity attributable to owners of the parent company | Minority interests | Total owner’s equity | |||||||||||||
| Paid-in capital (or share capital) | Other equity instruments | Capital reserve | Less: Treasury shares | Other comprehensive income | Special reserve | Surplus reserve | General risk reserve | Undistributed profit | Others | Subtotal | |||||
| Preferred shares | Perpetual bonds | Others | |||||||||||||
| I. Closing balance of last year | 452,756,901.00 | 1,249,020,991.15 | -3,214,291.93 | 35,242,179.57 | 357,793,891.96 | 2,091,599,671.75 | 93,812,755.26 | 2,185,412,427.01 | |||||||
| Add:Changes in accounting policies | 34,923.77 | 9,346.56 | 44,270.33 | -11,248.64 | 33,021.69 | ||||||||||
| Corre ctions ofprior period errors | |||||||||||||||
| Business combinati on involving enterprises under common control | |||||||||||||||
| Others | |||||||||||||||
| II.Opening balance of the current year | 452,756,901.00 | 1,249,020,991.15 | -3,214,291.93 | 35,277,103.34 | 357,803,238.52 | 2,091,643,942.08 | 93,801,506.62 | 2,185,445,448.70 | |||||||
| III.Changes for the Year (decrease is indicated by “-”) | 151,584,145.50 | -13,626,220.67 | 20,988,764.97 | 187,473,949.56 | 346,420,639.36 | 91,370,591.32 | 437,791,230.68 | ||||||||
| (I) Total comprehensive income | -13,626,220.67 | 233,364,344.09 | 219,738,123.42 | -11,780,317.06 | 207,957,806.36 | ||||||||||
| (II)Owners’contributions and reduction in capital | 151,584,145.50 | 151,584,145.50 | 121,550,908.38 | 273,135,053.88 | |||||||||||
| 1.Ordinary shares contribute d by owners | |||||||||||||||
| 2. Capital contributi on from holders of other equity instruments |
| 3. Share-based payment recognize d in owners’ equity | 58,961,897.75 | 58,961,897.75 | 11,541,574.13 | 70,503,471.88 | |||||||||||
| 4. Others | 92,622,247.75 | 92,622,247.75 | 110,009,334.25 | 202,631,582.00 | |||||||||||
| (III) Profit distribution | 20,988,764.97 | -45,890,394.53 | -24,901,629.56 | -18,400,000.00 | -43,301,629.56 | ||||||||||
| 1.Transfer to surplus reserve | 20,988,764.97 | -20,988,764.97 | |||||||||||||
| 2.Transfer to general reserve | |||||||||||||||
| 3.Distributio ns to owners (or shareholders) | -24,901,629.56 | -24,901,629.56 | -18,400,000.00 | -43,301,629.56 | |||||||||||
| 4. Others | |||||||||||||||
| (IV)Transfers within owners’ equity |
| 1.Capitalizat ion of capital reserve | |||||||||||||||
| 2.Capitalizat ion of surplus reserve | |||||||||||||||
| 3. Loss offset by surplus reserve | |||||||||||||||
| 4.Retained earnings carried forward from changes in Defined benefit plans | |||||||||||||||
| 5.Retained earnings carried forward from other comprehensive income | |||||||||||||||
| 6. Others | |||||||||||||||
| (V)Special reserve |
| 1.Transfer to special reserve in the period | |||||||||||||||
| 2. Amount utilized in the period | |||||||||||||||
| (VI) Others | |||||||||||||||
| IV.Closing balance of the current year | 452,756,901.00 | 1,400,605,136.65 | -16,840,512.60 | 56,265,868.31 | 545,277,188.08 | 2,438,064,581.44 | 185,172,097.94 | 2,623,236,679.38 |
Legal Representative: LI Yi Chief Accountant: WANG Yingxia Person in Charge of the Accounting Body: WANG Yingxia
Statement of Changes in Owners’ Equity of the parent company
January to December 2022
In RMB
| Item | 2022 | ||||||||||
| Paid-in capital (or share capital) | Other equity instruments | Capital reserve | Less: Treasury shares | Other Comprehensive income | Special reserve | Surplus reserve | Undistributed profit | Total owner’s equity | |||
| Preferred shares | Perpetual bonds | Others | |||||||||
| I. Closing balance of last year | 452,756,901.00 | 1,410,150,134.25 | 54,988,327.58 | 453,996,135.72 | 2,371,891,498.55 | ||||||
| Add: Changes in accounting policies | |||||||||||
| Corrections of prior period errors | |||||||||||
| Others | |||||||||||
| II. Opening balance of the current year | 452,756,901.00 | 1,410,150,134.25 | 54,988,327.58 | 453,996,135.72 | 2,371,891,498.55 | ||||||
| III. Changes for the year (decrease is indicated by “-”) | 4,350,637.00 | 131,639,740.38 | 19,377,297.59 | 19,253,913.75 | 125,745,627.34 | 261,612,620.88 | |||||
| (I) Total comprehensive income | 192,539,137.52 | 192,539,137.52 | |||||||||
| (II) Owners’ contributions and reduction in capital | 4,350,637.00 | 131,639,740.38 | 19,377,297.59 | 116,613,079.79 | |||||||
| 1. Ordinary shares contributed by owners | 4,350,637.00 | 72,247,699.46 | 76,598,336.46 | ||||||||
| 2. Capital contribution from holders of other equity instruments | |||||||||||
| 3. Share-based payment recognized in owners’ equity | 59,392,040.92 | 59,392,040.92 | |||||||||
| 4. Others | 19,377,297.59 | -19,377,297.59 | |||||||||
| (III) Profit distribution | 19,253,913.75 | -66,793,510.18 | -47,539,596.43 | ||||||||
| 1. Transfer to surplus | 19,253,91 | -19,253,9 | |||||||||
| reserve | 3.75 | 13.75 | |||||||||
| 2. Distributions to owners (or shareholders) | -47,539,596.43 | -47,539,596.43 | |||||||||
| 3. Others | |||||||||||
| (IV) Transfers within owners’ equity | |||||||||||
| 1. Capitalization of capital reserve | |||||||||||
| 2. Capitalization of surplus reserve | |||||||||||
| 3. Loss offset by surplus reserve | |||||||||||
| 4. Retained earnings carried forward from changes in defined benefit plans | |||||||||||
| 5. Retained earnings carried forward from other comprehensive income | |||||||||||
| 6. Others | |||||||||||
| (V) Special reserve | |||||||||||
| 1. Transfer to special reserve in the period | |||||||||||
| 2. Amount utilized in the period | |||||||||||
| (VI) Others | |||||||||||
| IV. Closing balance of the current year | 457,107,538.00 | 1,541,789,874.63 | 19,377,297.59 | 74,242,241.33 | 579,741,763.06 | 2,633,504,119.43 |
| Item | 2021 | ||||||||||
| Paid-in capital (or share capital) | Other equity instruments | Capital reserve | Less: Treasury shares | Other comprehensive income | Special reserve | Surplus reserve | Undistributed profit | Total owner’s equity | |||
| Preferred shares | Perpetual bonds | Others | |||||||||
| I. Closing balance of last year | 452,756,901.00 | 1,351,261,718.84 | 33,964,638.84 | 289,684,566.58 | 2,127,667,825.26 | ||||||
| Add: Changes in | 34,923.77 | 314,313. | 349,237.7 | ||||||||
| accounting policies | 95 | 2 | |||||||||
| Corrections of prior period errors | |||||||||||
| Others | |||||||||||
| II. Opening balance of the current year | 452,756,901.00 | 1,351,261,718.84 | 33,999,562.61 | 289,998,880.53 | 2,128,017,062.98 | ||||||
| III. Changes for the year (decrease is indicated by “-”) | 58,888,415.41 | 20,988,764.97 | 163,997,255.19 | 243,874,435.57 | |||||||
| (I) Total comprehensive income | 209,887,649.72 | 209,887,649.72 | |||||||||
| (II) Owners’ contributions and reduction in capital | 58,888,415.41 | 58,888,415.41 | |||||||||
| 1. Ordinary shares contributed by owners | |||||||||||
| 2. Capital contribution from holders of other equity instruments | |||||||||||
| 3. Share-based payment recognized in owners’ equity | 58,888,415.41 | 58,888,415.41 | |||||||||
| 4. Others | |||||||||||
| (III) Profit distribution | 20,988,764.97 | -45,890,394.53 | -24,901,629.56 | ||||||||
| 1. Transfer to surplus reserve | 20,988,764.97 | -20,988,764.97 | |||||||||
| 2. Distributions to owners (or shareholders) | -24,901,629.56 | -24,901,629.56 | |||||||||
| 3. Others | |||||||||||
| (IV) Transfers within owners’ equity | |||||||||||
| 1. Capitalization of capital reserve | |||||||||||
| 2. Capitalization of surplus reserve |
| 3. Loss offset by surplus reserve | |||||||||||
| 4. Retained earnings carried forward from changes in defined benefit plans | |||||||||||
| 5. Retained earnings carried forward from other comprehensive income | |||||||||||
| 6. Others | |||||||||||
| (V) Special reserve | |||||||||||
| 1. Transfer to special reserve in the period | |||||||||||
| 2. Amount utilized in the period | |||||||||||
| (VI) Others | |||||||||||
| IV. Closing balance of the current year | 452,756,901.00 | 1,410,150,134.25 | 54,988,327.58 | 453,996,135.72 | 2,371,891,498.55 |
Legal Representative: LI Yi Chief Accountant: WANG Yingxia Person in Charge of the Accounting Body: WANG Yingxia
III. Company profile
1. Profile
√ Applicable □ N/A
Appotronics Corporation Limited (hereinafter referred to as “Company” or “the Company”), formallynamed as Shenzhen Appotronics Optoelectronics Technology Inc. (hereinafter referred to as “AppotronicsInc.”), was jointly invested and established by LI Yi and XU Yanzheng . On October 24, 2006, the Companycompleted the registration in Nanshan Branch of Market Supervision and Regulation Bureau of Shenzhenand head quartered in Shenzhen City, Guangdong Province. The Company holds the business license bearingthe credibility code 91440300795413991N. The Company’s registered capital is RMB 457,107,538.00 dividedinto 457,107,538 shares (RMB 1 Yuan per share), including457,107,538 outstanding shares not subject to salerestrictions. The Company’s shares were listed for trading on Shanghai Stock Exchange on July 22, 2019.The Company can be classified into the computer, communication and other electronic equipmentmanufacturing industry. It mainly engages in research and development, production, sales and leasing of laserdisplay core devices and whole machines, and can provide customers with technical research and developmentservices and customized products. Its products mainly include laser business and education projectors, smartmini projectors, laser TV, laser large venue projector and laser digital cinema projector.The financial statements have been approved by the Company’s 19th meeting of the second Board ofDirectors on April 26, 2023 for public disclosure.
2. Scope of consolidated financial statements
√ Applicable □ N/A
The Company has included 34 subsidiaries, including CINEAPPO Laser Cinema Technology (Beijing)Co., Ltd. (hereinafter referred to as CINEAPPO), Appotronics Hong Kong Limited., Formovie (Chongqing)Innovative Technology Co., Ltd. (hereinafter referred to as Chongqing Formovie), and Fengmi (Beijing)Technology Co., Ltd., into the scope of the consolidated financial statements for this period, as detailed in Ⅷ,Ⅸ of Section 10.IV. Basis of preparation of financial statements
1. Basis of preparation
The Company’s financial statements are prepared on a going-concern basis.
2. Going concern
√ Applicable □ N/A
The Company has detected no events or circumstances that may cast significant doubt upon its ability tocontinue as a going concern within 12 months from the reporting period.V. Significant accounting policies and accounting estimates
Specific accounting policies and accounting estimates:
√ Applicable □ N/A
Important note: The Company establishes the specific accounting policies and makes the specificaccounting estimates with respect to the impairment of financial instruments, depreciation of fixed assets,depreciation of right-of-use assets, amortization of intangible assets, recognition of revenues and othertransactions and events according to the actual production and operation characteristics of the Company.
1. Statement of compliance with the Accounting Standards for Business Enterprises
The financial statements prepared by the Company conform to the requirements of the AccountingStandards for Business Enterprises and truly and completely reflect the Company’s financial position,operating results, changes in shareholders’ equity, cash flows and other related information.
2. Accounting period
The Company’s accounting year is from January 1 to December 31 of each calendar year.
3. Operating cycle
√ Applicable □ N/A
The Company has a relatively short operating cycle, and determines the liquidity of assets and liabilitieson the basis of 12 months.
4. Functional currency
The Company and its domestic subsidiaries adopt RMB as the basic accounting currency, and overseassubsidiaries such as Appotronics Hong Kong Limited engage in overseas operations, thus selecting thecurrency in the main economic environment in which they operate as the basic accounting currency.
5. The accounting treatment of business combinations involving entities under common control and
not involving entities under common control
√ Applicable □ N/A
1. Accounting method for business combinations involving enterprises under common control
Assets and liabilities acquired from a business combination by the Company are measured at the carryingamounts of the assets and liabilities of the acquiree in the consolidated financial statements of the ultimatecontroller at the date of combination. The Company made adjustment to capital reserves according to thedifferences between the shares in the owners’ equity of the combined party on the consolidated financialstatements of the ultimate controlling party and the book value of paid combination considerations or the facevalue of issued shares; In case the capital reserve is not sufficient to absorb the difference, the remainingbalance is adjusted against the retained earnings.
2. Accounting method for business combinations not involving enterprises under common control
Where the cost of combination exceeds the Company’s interest in the fair value of the acquiree’sidentifiable net assets, the difference is recognized as goodwill. Where the cost of combination is less than theCompany’s interest in the fair value of the acquiree’s identifiable net assets, the Company firstly reassesses thefair values of the acquiree’s identifiable assets, liabilities and contingent liabilities and the measurement of thecost of combination. If after that reassessment, the cost of combination is still less than the Company’sinterest in the fair value of the acquiree’s identifiable net assets, the acquirer recognizes the remainingdifference immediately in profit or loss for the current period.
6. Method of preparation of consolidated financial statements
√ Applicable □ N/A
The parent company includes all of its controlled subsidiaries in its consolidated financial statements.
The consolidated financial statements are prepared by the parent company in accordance with theAccounting Standards for Business Enterprises No. 33 -- Consolidated Financial Statements, on the basis of therespective financial statements of the parent company and its subsidiaries, by reference to other relevant data.
7. Classification of joint arrangements and accounting treatment of joint operations
√ Applicable □ N/A
1. Joint arrangements are classified into joint operations and joint ventures.
2. When the Company is a party to a joint operation, the Company recognizes the following items
relating to its interest in the joint operation:
(1) the assets individually held by the Company, and the Company’s share of the assets held jointly;
(2) the liabilities incurred individually by the Company, and the Company’s share of the liabilities
incurred jointly;
(3) the Company’s revenue from the sale of its share of output of the joint operation;
(4) the Company’s share of revenue from the sale of assets by the joint operation; and
(5) the expenses incurred individually by the Company, and the Company’s share of the expenses
incurred jointly.
8. Recognition of cash and cash equivalents
Cash equivalents are the Group’s short-term (generally due within 3 months from the acquisition date),highly liquid investments that are readily convertible to known amounts of cash and which are subject to aninsignificant risk of changes in value.
9. Translation of transactions and financial statements denominated in foreign currencies
√ Applicable □ N/A
1. Transactions denominated in foreign currencies
A foreign currency transaction is recorded in RMB, on initial recognition, by applying the spot exchangerate on the date of the transaction. At the balance sheet date, foreign currency monetary items are translatedinto RMB using the spot exchange rates at the balance sheet date. Exchange differences arising from suchtranslations are recognized in profit or loss for the current period, except for those attributable to foreign
currency borrowings that have been taken out specifically for the acquisition or construction of qualifyingassets and accrued interest. Non-monetary items denominated in foreign currencies that are measured athistorical cost are translated using the foreign exchange rates ruling at the transaction dates, without adjustingthe amounts in RMB. Non-monetary items denominated in foreign currencies that are measured at fair valueare translated using the foreign exchange rates prevailing at the dates when the fair value was determined, withexchange differences arising from such translations recognized in profit or loss for the current period or othercomprehensive income.
2. Translation of financial statements denominated in foreign currencies
Asset and liability items on the balance sheet are translated at the spot exchange rate prevailing at thebalance sheet date; shareholders’ equity items other than "undistributed profits” are translated at the spotexchange rates at the dates on which such items arose; income and expense items in the income statement aretranslated at the exchange rates that approximate the actual spot exchange rates on the dates of the transactions.Exchange differences arising from such translations are recognized in other comprehensive income.
10. Financial instruments
√ Applicable □ N/A
1. Classification of financial assets and financial liabilities
On initial recognition, the Company’s financial assets are classified into three categories, including (1)financial assets at amortized cost; (2) financial assets at fair value through other comprehensive income;and (3)financial assets at fair value through profit or loss for the current period.
Upon initial recognition, the Company’s financial liabilities are classified into four categories, including
(1) financial liabilities at fair value through profit or loss for the current period; (2) financial liabilities arisingas a result of the transfer of financial assets not meeting the criteria for derecognition or continuinginvolvement in the financial assets transferred; (3) financial guarantee contracts not falling under Clauses (1)and (2), and loan commitments not falling under Clause (1) and below market interestrate; and (4) financialliabilities at amortized cost.
2. Recognition, measurement and derecognition of financial assets and financial liabilities
(1) Recognition and initial measurement of financial assets and financial liabilities
When the Company becomes a party to a financial instrument contract, a financial asset or liability isrecognized. Financial assets and liabilities are initially measured at fair value. Transaction costs relating tofinancial assets or liabilities at fair value through profit or loss are directly recognized in profit or loss for thecurrent period. Transaction costs relating to other kinds of financial assets or liabilities are included in theirinitially recognized amount. However, the accounts receivable, if do not contain any significant financingcomponent or are recognized by the Company without taking into consideration the financing componentsunder the contracts with a term of less than one year upon initial recognition, are initially measured attransaction price defined in Accounting Standards for Business Enterprises No.14 - Revenue.
(2) Subsequent measurement of financial assets
1) Financial assets at amortized cost
Financial assets at amortized cost are subsequently measured at amortized cost using the effective interestmethod. Gains or losses arising from financial assets at amortized cost that do not belong to any hedgingrelationship are recognized in profit or loss for the current period upon derecognition ,reclassification,amortization using the effective interest method or recognition of impairment.
2) Investments in debt instruments at fair value through other comprehensive income
Investments in debt instruments at fair value through other comprehensive income are subsequentlymeasured at fair value. Interest, impairment losses or gains and exchange gains or losses calculated using theeffective interest method are recognized in profit or loss for the current period, and other gains or losses arerecognized in other comprehensive income. Upon derecognition, the aggregate gains or losses previouslyrecognized in other comprehensive income are transferred to profit or loss for the current period.
3) Investments in equity instruments at fair value through other comprehensive income
Investments in debt instruments at fair value through other comprehensive income are subsequentlymeasured at fair value. Dividends received (other than those received as recovery of investment cost) arerecognized in profit or loss for the current period, and other gains or losses are recognized in othercomprehensive income. Upon derecognition, the accumulated gains or losses previously recognized in othercomprehensive income are transferred to retained earnings.
4) Financial assets at fair value through profit or loss for the current period
Financial assets at fair value through profit or loss for the current period are subsequently measured at fairvalue, with gains or losses arising therefrom, including interest and dividend income, recognized in profit orloss for the current period, except the financial assets belonging to any hedging relationship.
(3) Subsequent measurement of financial liabilities
1) Financial liabilities at fair value through profit or loss for the current period Financial liabilities at fairvalue through profit or loss for the current period include financial liabilities held for trading (includingderivatives classified as financial liabilities), and financial liabilities directly designated as at fair value throughprofit or loss for the current period. Such financial liabilities are subsequently measured at fair value. Changesin the fair value of financial liabilities designated as at fair value through profit or loss for the period arising outof changes in the Company ’s own credit risk are recognized in other comprehensive income, unless suchtreatment will result in or increase any accounting mismatch in profit or loss. Other gains or losses arising fromsuch financial liabilities, including interest expenses and changes in fair value not arising out of changes in theCompany ’s own credit risk, are recognized in profit or loss for the current period, except the financialliabilities belonging to any hedging relationship. Upon derecognition, the accumulated gains or lossespreviously recognized in other comprehensive income are transferred to retained earnings.
2) Financial liabilities arising as a result of the transfer of financial assets not meeting the criteria forderecognition or continuing involvement in the financial assets transferred Such financial liabilities aremeasured in accordance with the Accounting Standards for Business Enterprises No. 23 -- Transfer ofFinancial Assets.
3) Financial guarantee contracts not falling under Clauses 1) and 2), and loan commitments not falling
under Clause 1) and below market interest rate Such financial liabilities are subsequently measured at thehigher of ① provision for impairment losses determined according to the policy for impairment of financialinstruments; and ② balance of the initially recognized amount after deduction of the accumulatedamortization determined in accordance with the relevant provisions of the Accounting Standards for BusinessEnterprises No.14 - Revenue.
4) Financial liabilities at amortized cost
Financial liabilities at amortized cost are subsequently measured at amortized cost using the effectiveinterest method. Gains or losses on financial liabilities at amortized cost that do not belong to any hedgingrelationship are recognized in profit or loss for the current period upon derecognition or amortization using theeffective interest method.
(4) Derecognition of financial assets and financial liabilities
1) Financial assets are derecognized when:
① the contractual right to receive cash flows from the financial assets has expired;
② the financial assets have been transferred and such transfer meets the criteria for derecognition offinancial assets as set forth in the Accounting Standards for Business Enterprises No. 23 -- Transfer ofFinancial Assets.
2) A financial liability (or part thereof) is derecognized when all or part of the outstanding obligationsthereon have been discharged.
3. Recognition and measurement of financial assets transferred
When a financial asset of the Company is transferred, if substantially all the risks and rewards incidentalto the ownership of the financial asset have been transferred, the financial asset is derecognized, and the rightsand obligations incurred or retained in such transfer are separately recognized as assets or liabilities (as the casemaybe); if substantially all the risks and rewards incidental to the ownership of the financial asset have beenretained, the financial asset transferred continues to be recognized. If the Company neither transferred norretained a substantial portion of all risks and rewards incidental to the ownership of the financial asset, then: (1)if the Company does not retain control over the financial asset, the financial asset is derecognized, and therights and obligations incurred or retained in such transfer are separately recognized as assets or liabilities (asthe case maybe); and (2) if the Company retains control over the financial asset, the financial asset continues tobe recognized to the extent of the Company’s
continuing involvement in the financial asset transferred, and a corresponding liability is recognized.
If an entire transfer of a financial asset meets the criteria for derecognition, the difference between (1) thecarrying amount of the financial asset transferred at the date of derecognition; and (2) the sum of theconsideration received from the transfer and the portion of the accumulated amount of changes in fair valuedirectly recorded as other comprehensive income originally that corresponds to the part
derecognized (where the financial asset transferred is an investment in debt instruments at fair value throughother comprehensive income) is recognized in profit or loss for the current period. If part of a financial asset istransferred and the part transferred entirely meets the criteria for derecognition, the total carrying amount of thefinancial asset immediately prior to the transfer is allocated between the part derecognized and the part notderecognized in proportion to their relative fair value at the date of transfer, and the difference between (1) thecarrying amount of the part derecognized; and (2) the sum of the consideration received from the transfer of thepart derecognized and the portion of the accumulated amount of changes in fair value directly recorded asother comprehensive income originally that corresponds to the part derecognized (where the financial assettransferred is an investment in debt instruments at fair value through other comprehensive income) isrecognized in profit or loss for the current period.
4. Determination of fair value of financial assets and financial liabilities
The Company adopts the valuation techniques applicable to the current situations and with sufficient dataavailable and support of other information, to determine the fair value of financial assets and financialliabilities. The Company classifies the inputs used by the valuation techniques in the following levels and usesthem in turn:
(1) Level 1 inputs: quoted market price (unadjusted) in an active market for an identical asset or liabilityavailable at the date of measurement;
(2) Level 2 inputs: inputs other than inputs included within Level 1 that are observable directly orindirectly. This category includes quoted prices for similar assets or liabilities in active markets, quoted pricesfor identical or similar assets or liabilities in inactive markets, observable inputs other than quoted prices (suchas interest rate and yield curves observable during regular intervals of quotation), and inputs validated by themarket;
(3) Level 3 inputs: inputs that are unobservable. This category includes interest rate or stock volatility thatcannot be directly observed or validated by observable market data, future cash flows from retirementobligation incurred in business combinations, and financial forecasts made using own data.
5. Impairment of financial instruments
(1) Measurement and accounting treatment of impairment of financial instruments
The Company determines the impairment and assesses provision for impairment losses of financialassets at amortized cost, investments in debt instruments at fair value through other comprehensive income,contract assets, lease receivable, loan commitments other than financial liabilities designated at fair valuethrough profit or loss for the current period, and financial guarantee contracts other than financial liabilitiesdesignated at fair value through profit or loss for the current period and financial liabilities arising as a resultof the transfer of financial assets not meeting the criteria for derecognition or continuing involvement in thefinancial assets transferred, on the basis of expected credit losses.
Expected credit loss is the weighted average of credit losses on financial instruments taking into accountthe possibility of default. Credit loss is the difference between all contractual cash flows receivable under thecontract and estimated future cash flows discounted at the original effective interest rate,i.e. the present valueof all cash shortage, wherein the Company’s purchased or originated financial assets that have become creditimpaired are discounted at their credit-adjusted effective interest rate.
With respect to purchased or originated financial assets that have become credit impaired, at the balancesheet date, the Company recognizes a loss allowance equal to the accumulated amount of changes in lifetimeexpected credit losses since initial recognition.
With respect to lease receivable, accounts receivable and contract assets that are formed from transactionsunder the Accounting Standards for Business Enterprises No. 14 - Revenue, the Company uses the simplemeasurement method and recognizes a loss allowance equal to the lifetime expected credit loss.
With respect to financial assets not using the measurement methods stated above, at each balance sheetdate, the Company assesses whether the credit risk has increased significantly since initial recognition, andrecognizes a loss allowance equal to the lifetime expected credit loss if the credit risk has increasedsignificantly since initial recognition, or to the expected credit losses within the next 12 months if the creditrisk has not increased significantly since initial recognition.
The Company uses reasonable and supportable information, including forward-looking information, andcompares the possibility of default at the balance sheet date with the possibility of default upon initialrecognition, to determine whether the credit risk of the financial instruments has increased significantly sinceinitial recognition.
At the balance sheet date, if the Company determines that a financial instrument only has low credit risk,the Company assumes that its credit risk has not increased significantly since initial recognition.The Company assesses expected credit risk and measures expected credit losses of financial instrumentsindividually or collectively. When assessing the financial instruments collectively, the Company includes thefinancial instruments in different groups according to their common risk characteristics.At each balance sheet date, the Company re-assesses the expected credit losses, with the amount ofincrease in or reversal of loss allowance recognized in profit or loss for the current period as impairment lossesor gains. With respect to a financial asset at amortized cost, its carrying amount recorded in the balance sheet iswritten off against the loss allowance. With respect to an investment in debt instruments at fair value throughother comprehensive income, the Company recognizes the loss allowance in other comprehensive income,without reducing its carrying amount.
(2) Financial instruments for which expected credit risk is assessed and expected credit losses aremeasured collectively
| Item | Basis for determining a group | Method for measuring expected credit losses |
| Other receivables - group of deposit and security receivable | Nature of other receivables | By reference to historic credit loss experience, and taking into account the current situations and prediction of future economic conditions, calculate the expected credit losses according to the default risk exposure and 12-month or rate of lifetime expected credit loss. |
| Other receivables - group of deposit and security receivable | ||
| Other receivables - group of receivables from related parties in the scope of consolidation | Receivables from related parties in the scope of consolidation | |
| Other receivables - grouping by aging | Aging |
(3) Accounts receivable for which expected credit losses are measured collectively and contract assets
1) Groups and method for measuring expected credit losses
| Item | Basis for determining a group | Method for measuring expected credit losses |
| Bank acceptance bills receivable | Type of notes | By reference to historic credit loss experience, and taking into account the current situations and prediction of future economic conditions, calculate the expected credit losses according to the default risk exposure and rate of lifetime expected credit loss. |
| Commercial acceptance bills receivable | ||
| Accounts receivable - group of receivables from related parties in the scope of consolidation | Receivables from related parties in the scope of consolidation | |
| Accounts receivable – grouping by aging | Aging | By reference to historic credit loss experience, and taking into account the current situations and prediction of future economic conditions, prepare a comparison table of the aging of accounts receivable and rate of lifetime expected credit loss, and calculate the expected credit losses. |
| Contract assets - group of receivables from related parties in the scope of consolidation | Receivables from related parties in the scope of consolidation | By reference to historic credit loss experience, and taking into account the current situations and prediction of future economic conditions, calculate the expected credit losses according to the default risk exposure and rate of lifetime expected credit loss. |
| Contract assets - group of aging | Aging |
By reference to historic credit loss experience,and taking into account the current situationsand prediction of future economic conditions,
| prepare a comparison table of the aging of contract assets and rate of lifetime expected credit loss, and calculate the expected credit losses. | ||
| Long-term receivables -grouping by aging | Aging | By reference to historic credit loss experience, and taking into account the current situations and prediction of future economic conditions, prepare a comparison table of the aging of long-term receivables and rate of lifetime expected credit loss, and calculate the expected credit losses. |
2) Accounts receivable - comparison table of the age of accounts receivable and rate of lifetimeexpected credit loss
| Aging | Accounts receivable Rate of expected credit loss for accounts receivable (%) |
| Within 1 year (including, the same below) | 5.00 |
| 1-2 years | 25.00 |
| 2-3 years | 50.00 |
| Over 3 years | 100.00 |
6. Offsetting of financial assets and financial liabilities
Financial assets and financial liabilities are presented in the balance sheet separately, without offsettingeach other. However, the Company may represent the financial assets and financial liabilities on a net basisin the balance sheet only if: (1) the Company has a legal right that is currently enforceable to set off therecognized financial assets and financial liabilities, and (2) the Company intends either to settle on a netbasis, or to realize the financial asset and settle the financial liability simultaneously.
11. Notes receivable
Method for recognition of expected credit losses of notes receivable and relevant accounting treatments
√ Applicable □ N/A
The Company’s method for recognition of expected credit losses of notes receivable and relevant accountingtreatments are disclosed in V.10 of Section X in details.
12. Accounts receivable
Method for recognition of expected credit losses of accounts receivable and relevant accountingtreatments
√ Applicable □ N/A
The Company’s method for recognition of expected credit losses of accounts receivable and relevantaccounting treatments are disclosed in V.10 of Section X in details.
13. Receivables financing
√ Applicable □ N/A
The Company’s accounting policies on receivables financing are disclosed in V.10 of Section X in details.
14. Other receivables
Method for recognition of expected credit losses of other receivables and relevant accountingtreatments
√ Applicable □ N/A
The Company’s method for recognition of expected credit losses of other receivables and relevantaccounting treatments are disclosed in V.10 of Section X in details.
15. Inventories
√ Applicable □ N/A
1. Categories of inventories
Inventories mainly include finished goods or commodities held for sale in the ordinary course ofbusinesses, work in progress in the process of production or materials and supplies consumed in theprocess of production or rendering service.
2. Costing method of inventories transferred out
The actual cost of inventories upon delivery is calculated using the moving weighted average method.
3. Basis for determining net realizable value of inventories
At the balance sheet date, inventories are measured at the lower of cost and net realizable value. If thenet realizable value is below the cost of inventories, a provision for decline in value of inventories is made.For inventories directly used for sale, the net realizable value is determined as the estimated selling price inthe ordinary course of business less the estimated costs necessary to make the sale and relevant taxes. Forinventories required for processing, the net realizable value is determined as the estimated selling price offinished goods in the ordinary course of business less the estimated costs of completion, and the estimatedcosts necessary to make the sale and relevant taxes. As at the balance sheet date, if in the same item ofinventories, some are agreed with contractual prices while the others are not, the net realizable value forsuch inventories is determined separately, and compared with the costs of the two parts of inventoriesdistinctively, as to determine the provisions or reversal of provisions for decline in value ofinventories separately.
4. Inventory counting system
The perpetual inventory system is maintained for stock system.
5. Amortization method for low cost and short-lived consumable items and packaging materials
(1) Low cost and short-lived consumable items
Low cost and short-lived consumable items are amortized using the immediate write-off method.
(2) Packaging materials
Low cost and short-lived consumable items are amortized using the immediate write-off method.
16. Contract assets
(1). Recognition method and criteria of contract assets
√ Applicable □ N/A
The Company presents contract assets or contract liabilities in the balance sheet according to therelationship between the performance of contractual obligations and payment by customers. Contract assetsand contract liabilities under a same contract are presented at the net amount after offsetting each other.
Rights owned by the Company for unconditionally collecting the consideration from customers (that is,depending only on the time) are presented as receivables, and rights for collecting the consideration for goodsthat have been transferred to customers (depending on other factors than the time) are presented as contractassets.
(2). Method for recognition of expected credit losses of contract assets and relevant accounting
treatments
√ Applicable □ N/A
The method for recognition of expected credit losses of contract assets and relevant accounting treatments aredisclosed in V.10 of Section X in details.
17. Held-for-sale assets
□ Applicable √ N/A
18. Debt investments
(1). Method for recognition of expected credit losses of debt investments and relevant accounting
treatments
□ Applicable √ N/A
19. Other debt investments
(1). Method for recognition of expected credit losses of other debt investmentsand relevant accounting treatments
□ Applicable √ N/A
20. Long-term receivables
(1). Method for recognition of expected credit losses of long-term receivablesand relevant accounting treatments
√ Applicable □ N/A
The method for recognition of expected credit losses of long-term receivables and relevant accountingtreatments are disclosed in V.10 of Section X in details.
21. Long-term equity investments
√ Applicable □ N/A
1. Judgments on joint control and significant influence
Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisionsabout the relevant activities of such arrangement require unanimous consent of the parties sharing control.Significant influence is the power to participate in the financial and operating policy making of an entity, butdoes not control or jointly control over those policies.
2. Determination of investment cost
(1) In case of an equity investment acquired through a business combination involving entities undercommon control, if the acquirer pays consideration for the business combination by cash, transfer of non-monetary assets, assumption of liabilities or issuance of equity securities, the initial investment cost of thelong-term equity investment is the Company’s share of the carrying amount of the owners ’ equity of theacquiree in the consolidated financial statements of the ultimate controller at the date of combination. Thedifference between: (i) the initial investment cost of the long-term equity investment; and (ii) the carryingamount of the consideration paid for the combination or the total par value of the shares issued is treated asan adjustment to the capital reserve. In case the capital reserve is not sufficient to absorb the difference, theremaining balance is adjusted against the retained earnings.For a long-term equity investment acquired through business combination involving enterprises undercommon control that is achieved through multiple transactions by steps, the Company shall judge whethersuch transactions constitute a package deal. If such transactions constitute a package deal, the Companyaccounts for such transactions as one transaction to acquire control. If such transactions do not constitute apackage deal, the initial investment cost is the Company’s share of the carrying amount of the owners ’equityof the acquiree in the consolidated financial statements of the ultimate controller at the date of combination.The difference between: (i) the initial investment cost of the long-term equity investment at the date ofcombination; and (ii) the sum of the carrying amount of long-term equity investment before the combinationand the carrying amount of the consideration paid for acquisition of the additional shares at the date ofcombination is adjusted against the capital reserve. In case the capital reserve is not sufficient to absorb thedifference, the remaining balance is adjusted against the retained earnings.
(2) In case of an equity investment acquired through a business combination not involving entitiesunder common control, the initial investment cost is the fair value of the carrying amount of theconsideration paid for the combination at the date of acquisition.
For a long-term equity investment acquired through a business combination not involving entities undercommon control and achieved through multiple transactions by steps, the accounting treatment thereof in theseparate financial statements is different from that in the consolidated financial statements as stated below:
1) In the separate financial statements, the sum of the carrying amount of the equity investmentoriginally held in the acquiree and the additional investment cost incurred is recorded as the initialinvestment cost of the equity investment changed into the cost method.
2) In the consolidated financial statements, it is required to judge whether such transactions constitute apackage deal. If such transactions constitute a package deal, the Company accounts for such transactions asone transaction to acquire control. If such transactions do not constitute a package deal, the Companyre-measures the fair value of the equity held in the acquiree prior to the date of acquisition, and records thedifference between the fair value and the carrying amount as investment income for the current period; if theequity held in the acquiree prior to the date of acquisition involves other comprehensive income underequity method, such other comprehensive income is transferred to the income of the period in which the dateof acquisition falls, except for other comprehensive income arising from re-measurement of changes in netliabilities or net assets of defined benefit plans.
(3) In the event of no business combination: The initial investment cost is the purchase price actuallypaid if it is acquired by cash, or the fair value of the equity securities issued if it is acquired throughissuance of equity securities, or determined in accordance with the Accounting Standards for BusinessEnterprises No. 12 -- Debt Restructuring if it is acquired through debt restructuring, or determined inaccordance with the Accounting Standards for Business Enterprises No. 7 -- Exchange of Non-monetaryAssets if it is acquired through exchange of non-monetary assets.
3. Subsequent measurement and recognition of profit or loss
Long-term equity investments in investees are measured using the cost method. Long-term equityinvestments in associates and joint ventures are measured using the equity method.
22. Investment properties
□ Applicable √ N/A
23. Fixed assets
(1). Criteria for recognition
√ Applicable □ N/A
Fixed assets are tangible assets held for production of goods, rendering of service, lease or operationand management with a useful life of more than one accounting year. A fixed asset is recognized if theeconomic benefits relating to it are very likely to flow to the Company and its cost can be reliably measured.
(2). Method of depreciation
√ Applicable □ N/A
| Category | Depreciation | Depreciation period(years) | Residual value rate (%) | Annual depreciation rate(%) |
| Machinery and equipment | Straight line method | 5 | 5.00 | 19.00 |
| Transportation equipment | Straight line method | 5 | 5.00 | 19.00 |
| Electronic equipment and others | Straight line method | 3-5 | 5.00 | 19.00-31.67 |
| Operating leased equipment | Straight line method | 3、7 | 5.00 | 31.67、13.57 |
(3).Identification basis, valuation method and depreciation method for fixed assets acquired under
finance leases
□ Applicable √ N/A
24. Construction in progress
√ Applicable □ N/A
1. A construction in progress is recognized if the economic benefits relating to it are very likely toflow to the Company and its cost can be reliably measured. A construction in progress is measured at the
actual cost incurred before it is completed and ready for intended use.
2. When a construction in progress is ready for intended use, it is transferred to fixed assets at itsactual construction cost. A construction in progress that is ready for intended use but the final settlement ofwhich has not yet been completed is transferred to fixed assets at estimated value first, and after thecompletion of final settlement, the estimated value is adjusted according to the actual cost, but the accrueddepreciation is not adjusted.
25. Borrowing costs
√ Applicable □ N/A
1. Recognition for capitalization of borrowing costs
Borrowing costs incurred by the Company that are directly attributable to the acquisition,construction orproduction of a qualifying asset are capitalized as part of the cost of that asset. Other borrowing costs arerecognized as expenses and charged to the current profit and loss.
2. Capitalization period of borrowing costs
(1) Borrowing expenses are capitalized when all of the following conditions are met: 1) capitalexpenditure has been incurred; 2) borrowing expenses have been incurred; and 3) activities relating to theacquisition, construction or production of the asset that are necessary to prepare the asset for its intended useor sale have commenced.
(2) Where acquisition and construction or production of a qualified asset is interrupted abnormally andthe interruption period lasts for more than 3 months, the capitalization of the borrowing costs shall besuspended. The borrowing expenses incurred during these periods shall be recognized as expenses for thecurrent period until the acquisition, construction or production of a qualifying asset is resumed.
(3) Capitalization of borrowing expenses shall be ceased when acquisition, construction or productionof the qualifying asset has prepared for its intended use or sale.
3. Capitalization rate and capitalization amount of borrowing expenses
As for the specific borrowings for the acquisition and construction or production of assets qualifying forcapitalization, the to-be-capitalized amount of interests shall be determined in light of the actual cost incurredon the current specific borrowings (including the amortization of discounts or premiumsdetermined using the effective interest method) minus the income of interests earned from the unusedborrowings by depositing it in the bank or investment income from such borrowing by making it as atemporary investment; where a general borrowing is used for the acquisition andconstruction or production assets qualifying for capitalization, the Company shall calculate and determinethe to-be- capitalized amount of interests on the general borrowing by multiplying the weighted average valueof the accumulative expenditures to asset minus the specific borrowing by the capitalization rate of thegeneral borrowing used.
26. Biological assets
□ Applicable √ N/A
27. Oil and gas assets
□ Applicable √ N/A
28. Right-of-use assets
√ Applicable □ N/A
Right-of-use assets are initially measured at cost; the cost includes: 1) initial measurement amount oflease liabilities; 2) lease payments made on or before the commencement date of the lease term, whererelevant acquired amount related to lease incentives is excluded if there are lease incentives; 3) initial directexpenses incurred by the lessee; and 4) costs expected to be incurred by the lessee for dismantling andremoving the leased assets, restoring the place of the leased assets, or restoring the leased assets to the stateprovided under lease provisions.
The Company depreciates right-of-use assets by using the straight-line method. If there is reasonablecertainty that the lessee will obtain ownership of the leased asset by the end of the lease term, the Companydepreciates the leased asset over its useful life. If there is no reasonable certainty that the lessee will obtain
ownership of the leased asset by the end of the lease term, the Company depreciates the leased asset overthe shorter of the lease term and its remaining useful life.
29. Intangible assets
(1). Measurement, service life and impairment test
√ Applicable □ N/A
1. Intangible assets include land use rights, patents, and software etc. and are measured at cost initially.
2. An intangible asset with a finite useful life is amortized over its useful life in a systematical andrational expected realization of economic benefits relative to the intangible asset, or is amortized using thestraight-line method if it is impossible to determine expected realization reliably. The specific years are asfollows:
| Item | Amortization period (years) |
| Land use rights | 30 |
| Patents | 10 |
| Software | 3-5 |
(2). Accounting policy on internal research and development expenditures
√ Applicable □ N/A
Expenditures incurred during the research phase of internal research and development projects arerecognized as current expenses when they occur. Expenditures during the development phase of internalresearch and development projects are recognized as intangible assets if they meet the following conditions:
(1) completion of the intangible asset to make it technically feasible for use or sale, (2) intention to completethe intangible asset and use or sell it, (3) the intangible asset generates economic benefits, including theability to demonstrate a market for products produced using the intangible asset or a market for the intangibleasset itself if it will be used internally, proving its usefulness, (4) sufficient technical, financial, and otherresources are available to complete the development of the intangible asset and to use or sell it, and (5) theexpenditures attributable to the development phase of the intangible asset can be reliably measured.
30. Impairment of long-term assets
√ Applicable □ N/A
For long-term equity investments, fixed assets, construction in progress, right-of-use assets, intangibleassets with a finite useful life and other long-term assets, if there’s an indication of impairment at the balancesheet date, the Company assesses their recoverable amount. Goodwill arising from business combinations andintangible assets with an infinite useful life are tested for impairment every year regardless of whetherthere’s an indication of impairment. Goodwill is tested for impairment together with the relevant groups ofassets or combinations of groups of assets.
If the recoverable amount of a long-term asset is less than its carrying amount, the differenceis measured as impairment loss of the asset and recognized in profit or loss for the current period.
31. Long-term prepaid expenses
√ Applicable □ N/A
Long-term prepaid expenses are expenses that have already been incurred but should be amortized overa period of more than one year (excluding one year). Long-term prepaid expenses are stated as the amountactually incurred and shall be amortized evenly by stages within the benefit period or specified period. If anitem of long-term prepaid expenses will not benefit the subsequent periods, the amortized value of the itemthat has not yet been amortized is wholly transferred to profit or loss for the current period.
32. Contract liabilities
(1). Recognition method for contract liabilities
√ Applicable □ N/A
The Company presents contract assets or contract liabilities in the balance sheet according to therelationship between the performance of contractual obligations and payment by customers. Contract assets
and contract liabilities under a same contract are presented at the net amount after offsetting each other.The obligations of the Company for transferring goods to customers corresponding to considerations thathave been received or receivable are presented as contract liabilities.
33. Employee benefits
(1). Accounting treatment of short-term employee benefits
√ Applicable □ N/A
1. Employee benefits include short-term benefits, post-employment benefits, termination benefits andother long-term employee benefits.
2. Accounting treatment of short-term employee benefits
The short-term employee benefits actually incurred are recognized as liabilities in the accountingperiod during which employee services are rendered, and included in profit or loss for the current period orthe cost of related assets.
(2). Accounting treatment of post-employment benefits
√ Applicable □ N/A
Post-employment benefits are classified into defined contribution plans and defined benefit plans.
(1) In the accounting period during which employee services are rendered, the amount in contribution ascalculated according to the defined contribution plan is recognized as liabilities and included in profit or lossfor the current period or the cost of related assets.
(2) The accounting treatment of a defined benefit plan generally involves the following steps:
1) According to the projected unit credit method, use the unbiased and consistentactuarial assumptions to estimate demographic variables and financial variables, measure the obligationarising from the defined benefit plan and determine the period to which the relevantobligation belongs. Meanwhile, discount the obligation arising from the defined benefit plan, in order todetermine the present value of the defined benefit plan obligation and the current service cost;
2) If the defined benefit plan has assets, the deficit or surplus resulting after reducing the present valueof the defined benefit plan obligation by the fair value of the defined benefit plan is recognized as a netliability or asset of the defined benefit plan. If the defined benefit plan has a surplus, the net assets of thedefined benefit plan are measured at the lower of surplus in the defined benefit plan and asset ceiling;
3) At the end of the reporting period, the cost of employee benefits arising from the defined benefitplan is recorded as service cost, net interest on the net liabilities or net assets of the defined benefit plan, andchanges arising from re-measurement of the net liabilities or net assets of the defined benefit plan, whereinthe service cost and the net interest on the net liabilities or net assets of the defined benefit plan are includedin profit or loss for the current period or the cost of related assets, and the changes arising fromre-measurement of the net liabilities or net assets of the defined benefit plan are included in othercomprehensive income, which will not be reserved to profit or loss in subsequent periods, but may betransferred within the scope of equity.
(3). Accounting treatment of termination benefits
√ Applicable □ N/A
If dismissal benefits are provided to employees, the liabilities of employee benefits from the dismissalbenefits are recognized at the earlier of the following and are recognized in the profit or loss for the currentperiod: (1) when the Company cannot unilaterally withdraw the dismissal benefits provided due to thecancellation of the labor relationship or lay-off suggestions; (2) when the Company recognizes costs orexpenses in connection with restructuring involving dismissal benefits.
(4). Accounting treatment of other long-term employee benefits
√ Applicable □ N/A
Other long-term employee benefits are accounted for in accordance with the provisions applicable todefined contribution plans if they are qualified as defined contribution plans, otherwise, are accounted for inaccordance with the provisions applicable to defined benefit plans. In order to simplify the accountingtreatment, the total net amount of the cost of employee benefits arising from the defined benefit plans that is
recorded as service cost, net interest on the net liabilities or net assets of other long-term employee benefits,changes arising from re-measurement of the net liabilities or net assets of other long-term employeebenefits and other components is included in profit or loss for the current period or the cost of related assets.
34. Leasing liabilities
√ Applicable □ N/A
On the lease inception date, the Company recognizes the present value of lease payments not paid aslease liabilities. The interest rate implicit in the lease is used as the discount rate for calculating the presentvalue of the lease payments; if the interest rate implicit in the lease cannot be determined, the incrementalborrowing interest rate of the Company is used as the discount rate. The difference between the leasepayments and the present value thereof is considered as unrecognized finance charges; in each periodduring the lease term, interest expenses are recognized in the profit or loss for the current period according tothe discount rate of the present value of recognized lease payments. Variable lease payments not includedin measurement of lease liabilities are recognized in the profit or loss for the current period when the actuallyarise.Where, after the lease inception date, there are changes in the substantial fixed payment, the payablesexpected on the basis of the residual value of the guarantee, the index or ratio used for determining the leasepayment, the evaluation results or actual exercising of purchase option, renewal option or lease terminationoption, the Company re-measures the lease liability as per the present value of the lease payment afterchange, and adjust the book value of the use right assets accordingly. Where the book value of the use rightasset has been reduced to zero, but the lease liability still needs to be further reduced, the Company includesthe residual amount in the current profit or loss.
35. Provisions
√ Applicable □ N/A
1. An obligation arising from any external guarantee, instigation, product quality warranty, onerouscontract or other contingencies is recognized as a provision if it is a present obligation assumed by theCompany, and it is probable that an outflow of resources embodying economic benefits will be required tosettle the obligation, and the amount of the obligation can be reliably measured.
2. The amount recognized as a provision is the best estimate of the consideration required to settle thepresent obligation. The carrying amount of provisions is reviewed at the balance sheet date.
36. Share-based payments
√ Applicable □ N/A
1. Categories of share-based payments
Share-based payments include equity-settled share-based payments and cash-settled share-based
payments
2. Accounting treatment for implementation, modification and termination of share-based payment plan
(1) Equity-settled share-based payments
Equity-settled share-based payments in exchange for services rendered by employees that can beexecuted immediately upon being granted, are measured at the fair value of the equity instruments at thegrant date, and recognized as related costs or expenses with a corresponding adjustment to capital reserve. Ateach balance sheet date during the vesting period, equity-settled share-based payments in exchange forservices rendered by employees that cannot be executed until services in the vesting period are completed orrequired performance conditions are satisfied, are measured at the fair value of the equity instruments at thegrant date based on the best estimate of exercisable numbers of equity instruments, and recognized as relatedcosts or expenses with a corresponding adjustment to capital reserve.
For equity-settled share-based payments in exchange for services rendered by other parties, if the fairvalue of services from other parties can be measured reliably, they are measured at the fair value of servicesfrom other parties at the date when such services are received. If the fair value of services from otherparties cannot be measured reliably but the fair value of the equity instruments can be measured reliably, theyare measured at the fair value of the equity instruments at the date when such services are received. The fairvalue of the equity instruments are recognized as related costs or expenses, with a corresponding increase inowners’ equity.
(2) Modification and termination of share-based payment plan
In case the Company modifies a share-based payment plan, if the modification increases the fair value ofthe equity instruments granted, the Company will include the incremental fair value of the equityinstruments granted in the measurement of the amount recognized for services received. If themodification increases the number of the equity instruments granted, the Company will include the fairvalue of additional equity instruments granted in the measurement of the amount recognized for servicesreceived. If the Company modifies the exercisable conditions of the share-based payment planina mannerbeneficial to the employee, the Company will consider the modified exercisable conditions when dealingwith exercisable conditions.If the modification decreases the fair value of the equity instruments granted, the Company willcontinue to measure the amount recognized for services received at the fair value of the equity instruments atthe grant date without including the decremental fair value of the equity instruments. If the modificationdecreases the number of the equity instruments granted, the Company will treat the decreased number as thecancelled number of equity instruments granted. If the Company modifies the exercisable conditions in amanner unbeneficial to the employee, the Company will not consider the modified exercisable conditionswhen dealing with exercisable conditions.
If cancellation or settlement of the equity instruments granted occurs (not due to unsatisfaction ofexercisable conditions) during the vesting period, the Company will account for the cancellation orsettlement of the equity instruments granted as an acceleration of vesting, and recognize immediately theamount that otherwise would have been recognized over the remainder of the vesting period.
37. Preferred shares, perpetual bonds and other financial instruments
□ Applicable √ N/A
38. Revenue
(1). Accounting policies adopted for income recognition and measurement
√ Applicable □ N/A
1. Principles for revenue recognition
At the beginning date of a contract, the Company assesses the contract to identifyindividual performance obligations contained in the contract and determine whether individual obligationsare to be performed during a period of time or at a specific time point.
An obligation meeting one of the following conditions is one to be performed within a period of time, andthe remaining are obligations to be performed at a specific time point: (1) the customer receives andconsumes the economic benefits from the performance of the Company when the Company performs itsobligations; (2) the customer can control the goods in progress during the performance of the Company; or
(3) the goods generated during the performance process of the Company have irreplaceable uses, and theCompany is entitled to payment for the portion completed during the entire contract term.
The Company recognizes revenue according to the performance progress during the period of time forobligations to be performed during a period of time. If the performance progress cannot be determinedreasonably, and the Company is expected to be paid based on the costs incurred, the Company recognizesrevenue according to the amount of costs incurred until the performance progress can be determinedreasonably. For obligations to be performed at a specific time point, the Company recognizes revenue whenthe customer receives the control over the relevant goods or services. The following will be consideredwhen determining whether the customer has obtained the control over the goods: (1) the Company has thepresent rights of receiving payments for such goods, that is, the customer has the present obligation of makingpayment for the goods; (2) the Company has transferred the legal title in the goods to the customer, that is,the customer has acquired the legal title in the goods; (3) the Company has transferred the physical goodsto the customer, that is, the customer is in possession of the physical goods; (4) the Company has transferredmajor risks and rewards of the legal title in the goods to the customer, that is, the customer has acquired themajor risks and rewards of the legal title in the goods; (5) the customer has accepted the goods; and (6)there are other signs indicating that the customer has acquired the control over the goods.
2. Principles of revenue measurement
(1) The Company measures the revenue according to the transaction price allocated to individual
performance obligations. The transaction price refers to the amount of the consideration expected to bereceived by the Company on the basis of transferring goods or providing services to the customer,excluding amounts collected on behalf of a third party and amounts expected to be refunded to thecustomer.
(2) If a contract contains a variable consideration, the Company determines the best estimate of thevariable consideration according to the expected value or the most likely amount; however, the transactionprice containing the variable consideration does not exceed the amount for which no material reversal ofrecognized revenue is highly probable when relevant uncertainty is eliminated.
(3) If a contract contains a major financing portion, the Company determines the transaction price as theamount payable in cash when the customer obtains the control over the goods or services. The differencebetween the transaction price and contract consideration is amortized using the effective interest method duringthe term of the contract. If the Company expects that the interval between the acquisition of the goods orservices by the customer and the payment of prices by the customer will not exceed one year from thecommencement date of the contract, no significant financing factor is considered.
(4) If a contract contains two or more performance obligations, at the beginning date of the contract, theCompany allocates the transaction price to individual performance obligations according to the relativeproportion of the individual sale prices of the goods promised under such individual performance obligations.
3. Specific methods for revenue recognition
(1) Revenue from sales of goods
Revenue from sales of goods denotes contractual obligations to be performed at a time point. Our salesinclude sales to the domestic market and sales to foreign markets.
Goods sold to the domestic market: 1) Under the direct sale model and the distribution mode, theCompany recognizes the revenue when the goods sent have been delivered to customers with customers’receipt given to the Company. For goods sold attached with return conditions, the Company recognizes therevenue according to the amount of the consideration expected to be received by the Company on the basisof transferring goods to the customer, and recognizes liabilities to write off the revenue according to theexpected amount to be refunded due to the return of goods; for goods required for installment andinspection after sales, the Company recognizes the revenue when such goods have been installed andinspected with customers’ acceptance certificate given to the Company. If the Company shares profits fromsales of product to downstream end customers, the Company recognizes the revenue at the goods priceagreed between the parties upon the delivery of goods to the customer and reconciliation, and recognizesshared revenue according to the share profit reconciliation statement when the profits from sales of goodsare realized. 2) Under the commissioned sales mode, the Company recognizes the revenue when it receivesthe list of commissioned sales from the customer.
Goods exported to overseas markets: The Company mainly adopts FCA for export of goods. Under thismode, the Company recognizes revenue when it delivers goods at the designated location with exportcustoms clearance procedures completed.
(2) E-commerce platform revenue
In the e-commerce platform model, the e-commerce platform is responsible for product promotion andorder management. Consumers place orders and pay directly to the e-commerce platform, and thee-commerce platform arranges third-party logistics through the Company or ships directly to the consumer bythe e-commerce platform after receiving the consumer's payment. The specific revenue recognition timepoints are: for domestic e-commerce platforms, revenue is recognized according to the time of end customerreceipt; Foreign e-commerce platforms recognize revenue after receiving the confirmation list of thee-commerce platform after checking the reconciliation time agreed in the contract.
(3) Other incomes
Other revenues denote contractual obligations to be performed at a time point/during a specific period oftime. For installation services provided by the Company, the Company recognizes the revenue when it hascompleted the services and received customers’ acceptance certificate; for repair and maintenance servicesprovided by the Company, the Company recognizes the revenue when it has completed the services andreceived payments; for patrol inspection services provided by the Company, the Company determines theservice performance progress by using the output approach, and recognizes the revenue according to the
performance progress; for patent license services provided by the Company, the Company recognizes therevenue when the patent license is delivered; for technology development services provided by the Company,the Company recognizes the revenue when it has completed the services or when the agreed time point ofservice acceptance is reached.
(2). Description of differences in the accounting policies in revenue recognition due to different
operating modes adopted for the same business type
□ Applicable √ N/A
39. Contract costs
√ Applicable □ N/A
Assets related to contract costs include contract acquisition costs and contract performance costs.If costs incurred by the Company for acquiring a contract are expected to be recovered, such costs arerecognized as an asset as contract acquisition costs.The costs incurred by the Company for performing a contract are recognized as an asset of contractperformance costs if they do not fall within the scope of other relevant standards, like inventories, fixedassets, or intangible assets, and meet all the following conditions:
1. The cost is directly related to a present or expected contract, including direct labor, direct materials,manufacturing expenses (or similar expenses), costs explicitly to be borne by customers, and other costsarising from the contract;
2. The cost leads to the increase in resources of the Company for fulfilling its performance obligations
in the future; and
3. The cost is expected to be recovered.
Assets related to contract costs are amortized on the same basis as recognizing incomes from goods
related to assets, and are recognized in the profit or loss for the current period.
If the book value of the assets related to contract costs is greater than the consideration expected to beacquired by transferring the goods or services related to such assets less the costs expected to be incurred,the Company makes provision for impairment for the exceeding portion and recognizesimpairment loss of assets. In the event of a change in the factors causing impairment in a prior period, so thatthe consideration expected to be acquired by transferring the goods or services related to such assets less thecosts expected to be incurred is greater than the book value of such assets, the provision for impairmentmade for such assets is reversed and recognized in the profit or loss for the current period; provided,however, that the reversed book value of such assets shall not exceed the book value of such assets at thereversal data on the assumption that no provision for impairment has been made.
40. Government grants
√ Applicable □ N/A
1. Government grants are recognized if (1) the Company meets the conditions attaching to thegovernment grants; and (2) the Company will receive the government grants. Government grants in the formof monetary assets are measured at the amount received or receivable. Government grants in the form ofnon-monetary assets are measured at fair value, or if their fair value is unavailable, at nominal amount.
2. Determination and accounting treatment of government grants related to assets
Government grants related to assets are government grants which are offered forpurchasing, constructing or otherwise acquiring long-term assets as provided by the applicable governmentdocuments. In the absence of such express provision in the applicable government documents, governmentgrants related to assets are those with a primary condition that the Company should purchase, construct orotherwise acquire long-term assets. Government grants related to assets are offset against the carryingamount of the relevant assets or recognized as deferred. Government grants related to assets recognized asdeferred shall be included in profit or loss over the service life of the relevant assets on a reasonable andsystemic basis. Government grants measured at nominal amount are directly recognized in profit or loss forthe current period. In case of sale, transfer, retirement or damage of the relevant assets before the end ofintended service life, the balance of the unallocated deferred is transferred to profit or loss for the period inwhich the assets are disposed of.
3. Determination and accounting treatment of government grants related to income
Government grants related to income are government grants other than those related to assets.Government grants related to both assets and income in which it is difficult to make a distinction between theportion related to assets and the portion related to income are wholly classified as government grants relatedto income. Government grants related to income as compensation for expenses or losses to be incurred insubsequent periods are recognized as deferred and in the period for recognizing the relevant costs, expensesor losses, included in profit or loss for the current period or offset against the relevant costs. Governmentgrants related to income as compensation for expenses or losses already incurred are directly included inprofit or loss for the current period or offset against the relevant costs.
4. Government grants related to daily operations of the Company are recognized in other income oroffset against the relevant costs and expenses depending on the nature of economic business. Governmentgrants not related to daily operations of the Company are recognized in non-operating income or expenses.
5. Accounting treatment of policy preferential loans and interest subsidies
(1) If the Ministry of Finance appropriates the interest subsidies to the lending bank, who then grants theloan to the Company at the policy preferential rate, the loan is stated as the amount actually received, and theborrowing cost is calculated according to the principal of the loan and the policy preferential rate.
(2) If the Ministry of Finance directly appropriates the interest subsidies to the Company, the interestsubsidies are offset against the borrowing cost.
41. Deferred tax assets and deferred tax liabilities
√ Applicable □ N/A
1. The difference between the tax base of an asset or liability and its carrying amount (or in case of anitem not recognized as asset or liability whose tax base can be determined according to the applicable tax law,the difference between its tax base and carrying amount) is recognized as a deferred tax asset or deferred taxliability according to the tax rate applicable to the period in which the asset or liability isexpected to be recovered or settled.
2. Deferred tax assets are recognized to the extent of the amount of income tax payable that will beavailable in future periods against which deductible temporary differences are deductible. At the balancesheet date, deferred tax assets not recognized in prior periods are recognized if there’s conclusive evidencethat it is probable that sufficient taxable income will be available in future periods against which thedeductible temporary differences are deductible.
3. At the balance sheet date, the carrying amount of deferred tax assets is reviewed and reduced to theextent that it is no longer probable that sufficient taxable income will be available in future periods to allowthe benefit of the deferred tax assets to be utilized. If it is probable that sufficient taxable income will beavailable, the reduced amount is reversed.
4. The income taxes and deferred taxes are included in profit or loss for the current period as income taxexpenses or gains, except the income taxes arising from any: (1) business combination; or
(2) transaction or evennt directly recognized in owners’equity.
42. Leases
(1). Accounting treatment of operating leases
□ Applicable √ N/A
(2). Accounting treatment of finance leases
□ Applicable √ N/A
(3). Method for determination and accounting treatments of lease under the New Lease Standard
√ Applicable □ N/A
1. The Company as the lessee
On the lease inception date, the Company recognizes a lease with a lease term of not more than 12months and not containing an option as a short-term lease; and recognizes a low-value assets lease for a leasein which individually leased assets have a low value when they are new. If the Company subleases orexpects to sublease the leased asset, the original lease is not recognized as a low-value assets lease.
For short-term leases and low-value assets leases, the Company recognizes lease payment in the costs ofrelevant assets or the profit or loss for the current period by using the straight-line method in each period during
the lease term.
Except for short-term leases and low-value assets leases subject to simplified treatment above, on thelease inception date, the Company recognizes right-of-use assets and lease liabilities for leases.
(1) Right-of-use assets
Right-of-use assets are initially measured at cost; the cost includes: 1) initial measurement amount oflease liabilities; 2) lease payments made on or before the commencement date of the lease term, whererelevant acquired amount related to lease incentives is excluded if there are lease incentives; 3) initial directexpenses incurred by the lessee; and 4) costs expected to be incurred by the lessee for dismantling andremoving the leased assets, restoring the place of the leased assets, or restoring the leased assets to the stateprovided under lease provisions.
The Company depreciates right-of-use assets by using the straight-line method. If there is reasonablecertainty that the lessee will obtain ownership of the leased asset by the end of the lease term, the Companydepreciates the leased asset over its useful life. If there is no reasonable certainty that the lessee will obtainownership of the leased asset by the end of the lease term, the Company depreciates the leased asset over theshorter of the lease term and its remaining useful life.
(2) Leasing liabilities
On the lease inception date, the Company recognizes the present value of lease payments not paid aslease liabilities. The interest rate implicit in the lease is used as the discount rate for calculating the presentvalue of the lease payments; if the interest rate implicit in the lease cannot be determined, the incrementalborrowing interest rate of the Company is used as the discount rate. The difference between the leasepayments and the present value thereof is considered as unrecognized finance charges; in each periodduring the lease term, interest expenses are recognized in the profit or loss for the current period according tothe discount rate of the present value of recognized lease payments. Variable lease payments not includedin measurement of lease liabilities are recognized in the profit or loss for the current period when the actuallyarise.
Where, after the lease inception date, there are changes in the substantial fixed payment, the payablesexpected on the basis of the residual value of the guarantee, the index or ratio used for determining the leasepayment, the evaluation results or actual exercising of purchase option, renewal option or lease terminationoption, the Company re-measures the lease liability as per the present value of the lease payment afterchange, and adjust the book value of the use right assets accordingly. Where the book value of the use rightasset has been reduced to zero, but the lease liability still needs to be further reduced, the Company includesthe residual amount in the current profit or loss.
2. The Company as the lessor
On the lease inception date, the Company classifies a lease in which almost all the risks and rewardsrelated to the ownership of the leased asset have been substantially transferred as a finance lease, andrecognizes all other leases as operating leases.
(1) Operating lease
In each period during the lease term, the Company recognizes lease payments as rental incomes byusing the straight-line method/units of production method; initial direct expenses incurred are capitalized, andamortized on the same basis for recognizing lease incomes for recognizing in the profit or loss for eachperiod.The variable lease payments acquired by the Company that are related to operating leases and notrecognized in lease payments are recognized in the profit or loss for the current period when they actuallyoccur.
43. Other significant accounting policies and accounting estimates
□ Applicable √ N/A
44. Changes in significant accounting policies and accounting estimates
(1). Changes in significant accounting policies
√ Applicable □ N/A
| Changes in accounting policies and associated reasons | Approval | Remarks (name and amount |
| procedures | of line items in financial statements that have been materially affected) | |
| Since January 1, 2022, the Company has implemented the "Accounting Treatment for External Sales of Products or By-products Produced by an Enterprise Before the Fixed Assets Reached the Predetermined Usable State or in the Process of R&D" and "Judgment on Loss-making Contracts" of the Interpretation of Accounting Standards for Business Enterprises No.15 issued by the Ministry of Finance | N/A | The implementation of this provision has no impact on the Company's financial statements. |
| Since November 30, 2022, the Company has implemented the "Accounting for the Income Tax Implications of Dividends Related to Financial Instruments Classified by Issuers as Equity Instruments" and "Accounting Treatment for Enterprises Modifying Cash-settled Share-Based Payments to Equity-Settled Share-Based Payments" of the Interpretation of Accounting Standards for Business Enterprises No.16 issued by the Ministry of Finance. | N/A | The implementation of this provision has no impact on the Company's financial statements. |
Other information
NO
(2). Changes in significant accounting estimates
□ Applicable √ N/A
(3). The first implementation of new accounting standards or standard interpretations from 2022
onwards involves adjusting the financial statements at the beginning of the year in which theywere first implemented
□ Applicable √ N/A
45. Others
□ Applicable √ N/A
VI. Taxes
1. Major categories of taxes and tax rates
Description of major categories of taxes and tax rates
√ Applicable □ N/A
| Category of tax | Basis of tax computation | Tax rate |
| Value-added tax (VAT) | VAT payable is the difference of the output tax calculated based on the incomes from selling goods and taxable services in accordance with the Tax Law, less the input tax allowed to be reduced in the period | 3%、6%、9%、13% |
| City maintenance and construction tax | Turnover tax payable | 5%、7% |
| Education surcharges | Turnover tax payable | 3% |
| Local education surcharges | Turnover tax payable | 2% |
| Enterprise income tax | Taxable income | 6.5%、8.25%、8.70%、8.84%、15%、16.5%、20%、21%、25% |
Disclosure of taxpayers with different rates of enterprise income tax:
√ Applicable □ N/A
| Taxpayer | Rate of enterprise income tax (%) |
| Appotronics Corporation Limited | 15% |
| Fengmi (Beijing) Technology Co., Ltd. | 15% |
| Appotronics Hong Kong Limited | 8.25%、16.5% |
| Beijing Dongfang Guangfeng Technology Co., Ltd. | 20% |
| JoveAI Innovation,Inc. | 8.70%、8.84%、21% |
| Appotronics USA, Inc. | 21% |
| FORMOVIE TECHNOLOGY INC | 21% |
| JoveAI Limited | Tax exemption |
| WEMAX LLC | 21% |
| Shenzhen Appotronics Display Device Co., Ltd. | 20% |
| Appotronics Technology (Changzhou) Co., Ltd. | 20% |
| Qingda Appotronics (Xiamen) Technology Co., Ltd. | 20% |
| Shenzhen Appotronics Home Line Technology Co., Ltd. | 20% |
| Shenzhen Appotronics Laser Technology Co., Ltd. | 20% |
| Shenzhen Appotronics Xiaoming Technology Co., Ltd. | 20% |
| JoveAI Asia Company Limited | 20% |
| Formovie Limited | 16.5% |
| Chongqing Ewei Ecommerce Co., Ltd. | 20% |
| Chongqing Guangbo Ecommerce Co., Ltd. | 20% |
| Shenzhen Orange Juice Energy Technology Co., Ltd. | 20% |
| Tianjin Bonian Film Partnership (LP) | Not involving corporate income tax |
| CINEAPPO Laser Cinema Technology (Beijing) Co., Ltd. | 15% |
| HONGKONG ORANGE JUICE ENERGY TECHNOLOGY CO., LIMITED | 16.5% |
| Wemax Inc | 6.5%、21% |
| Weiwoqi Trading Co.,Ltd | 20% |
| Yaoyouguang (Chongqing) Technology Co., Ltd. | 20% |
| Appotronics International Limited | 16.5% |
| Appotronics Intelligent Manufacturing (Shenzhen) Co., Ltd | 20% |
| Other taxpayers except above | 25% |
Note:
1. Appotronics Hong Kong Limited, as domiciled in Hong Kong, one of which can apply the two- levelincome tax system, namely, applying the tax rate of 8.25% for the first HKD 2 million taxable income and
16.50% for the remaining taxable income.
2. JoveAI Limited, as domiciled in the Cayman Islands, is exempt from enterprise income tax.3.Appotronics USA, Inc., as domiciled in the United States, applies the federal enterprise income tax rate of21%.
4. JoveAI Innovation, Inc., as domiciled in the United States, applies the federal enterprise income taxrate of 21%, and the Delaware state enterprise income tax rate of 8.70%.
5. FORMOVIE TECHNOLOGY INC, as domiciled in the United States, applies the federal enterpriseincome tax rate of 21%.
6. JoveAI Asia Company Limited, as domiciled in Vietnam, applies the enterprise income tax rate of20%.
7. WEMAX LLC, as domiciled in the United States, applies the federal enterprise income tax rate of21%.
8. Formovie Limited, ,as domiciled in Hong Kong, applies the income tax rate of 16.50%.
9. HONGKONG ORANGE JUICE ENERGY TECHNOLOGY CO., LIMITED,as domiciled in HongKong, applies the income tax rate of 16.50%.
10. Wemax Inc, as domiciled in the United States, applies the federal enterprise income tax rate of 21%,and the New York state enterprise income tax rate of 6.50%.
11. Appotronics International Limited,as domiciled in Hong Kong, applies the income tax rate of
16.50%.
2. Tax incentives
√ Applicable □ N/A
1. Enterprise income tax
(1) On December 9, 2022, the Company obtained the High-tech Enterprise Certificate (Certificate No.:
GR202244206480) jointly issued by Shenzhen Science and Technology Innovation Commission, ShenzhenFinance Bureau and Shenzhen Tax Service of State Taxation Administration with a valid termof three years. Therefore, the Company paid the enterprise income tax at a rate of 15% in 2022.
(2) On December 17, 2021, Fengmi (Beijing) Technology Co., Ltd. obtained the High-tech EnterpriseCertificate (Certificate No.: GR202111004001)jointly issued by Beijing Municipal Science and TechnologyCommission, Beijing Finance Bureau and Beijing Tax Service of State Taxation Administrationwith a valid term of three years. It paid the enterprise income tax at a rate of 15% in 2022.
(3) On October 18, 2022, CINEAPPO Laser Cinema Technology (Beijing) Co., Ltd. obtained theHigh-tech Enterprise Certificate (Certificate No.: GR202211008942) jointly issued by Beijing MunicipalScience and Technology Commission, Beijing Finance Bureau and Beijing Tax Service of State TaxationAdministration with a valid term of three years. It paid the enterprise income tax at a rate of 15% in 2022.
(4) In accordance with the Notice of the Ministry of Finance and the State Taxation Administration onImplementing the Inclusive Tax Deduction and Exemption Policies for Micro and Small Enterprises (CaiShui [2019] No. 13), and the Announcement of the Ministry of Finance and the State TaxationAdministration on Implementing Preferential Income Tax Policies for Micro and Small Enterprises andIndividually-owned Businesses (Announcement No. 12 in 2021 of the Ministry of Finance and the StateTaxation Administration), the annual taxable income of a small low-profit enterprise that is not more thanRMB 1 million shall be levied with the enterprise income tax rate at a discount of 12.5%, namely, for whichthe applicable enterprise income tax rate is 20%; for the annual taxable income more than RMB 1 million butno more than RMB 3 million, the taxable income shall be calculated at a discount of 50%, namely, for whichthe applicable enterprise income tax rate is 20%. The following companies are qualified for enjoying such taxincentives: Beijing Dongfang Guangfeng Technology Co., Ltd., Shenzhen Appotronics Display Device Co., Ltd.,Appotronics Technology (Changzhou) Co., Ltd., Qingda Appotronics (Xiamen) Technology Co., Ltd.,Shenzhen Appotronics Home Line Technology Co., Ltd., Shenzhen Appotronics Laser Technology Co.,Ltd., Shenzhen Appotronics Xiaoming Technology Co., Ltd., Chongqing Ewei Ecommerce Co., Ltd.,Chongqing Guangbo Ecommerce Co., Ltd., Shenzhen Orange Juice Energy Technology Co., Ltd., Weiwoqi
Trading Co.,Ltd., Yaoyouguang (Chongqing) Technology Co., Ltd.. and Appotronics Intelligent Manufacturing
(Shenzhen) Co., Ltd.
2. Value-added tax (VAT)
(1) In accordance with the Notice of the Ministry of Finance and the State Administration of Taxation onValue-added Tax Policies for Software Products (Cai Shui [2011] No. 100), for self-developed andproduced software products sold by general VAT taxpayers, the tax-refund-upon-collection policy isapplicable to the part of their actual VAT burden in excess of 3% after the VAT has been collected at a taxrate of 17%. Appotronics Corporation Limited ,Fengmi (Beijing) Technology Co., Ltd. and ShenzhenAppotronics Software TechnologyCo., Ltd. are qualified for enjoying such tax incentives.
(2)According to the Announcement of the Ministry of Finance, the State Taxation Administration,and the General Administration of Customs on Relevant Policies for Deepening Value Added TaxReform (Announcement No. 39 of 2019 by the Ministry of Finance, the State Taxation Administration,and the General Administration of Customs), production and service-oriented taxpayers are allowed todeduct an additional 10% of the deductible input tax amount from the payable tax amount. CINEAPPOLaser Cinema Technology (Beijing) Co., Ltd. is eligible to enjoy this tax benefit.
3. Others
□ Applicable √ N/A
VII. Notes to items in the consolidated financial statements
1. Monetary funds
√ Applicable □ N/A
In RMB
| Item | Closing balance | Opening balance |
| Cash on hand | 5,479.42 | 5,680.24 |
| Bank deposits | 1,283,079,345.51 | 924,308,952.81 |
| Other monetary funds | 72,797,383.70 | 33,415,198.10 |
| Total | 1,355,882,208.63 | 957,729,831.15 |
| Where: Total oversea deposits | 261,403,774.28 | 71,132,556.44 |
Other information
Among the funds in other currencies, RMB60,141,8.3919 million is used as a margin in a restricted way;The amount RMB41,157,9.6632 million of the bank deposits represent the time deposit certificates depositedby the Company in the bank, the interest accrued at the maturity rate at the end of the period, and therestricted account funds, which are not shown as cash and cash equivalents in the cash flow statement.
2. Held-for-trading financial assets
√ Applicable □ N/A
In RMB
| Item | Closing balance | Opening balance |
| Financial assets at fair value through profit or loss | 352,880,000.00 | 417,200,000.00 |
| Including: | ||
| Equity instrument investment | 42,880,000.00 | 46,200,000.00 |
| Structural deposits | 310,000,000.00 | 371,000,000.00 |
| Total | 352,880,000.00 | 417,200,000.00 |
Other information:
□ Applicable √ N/A
3. Derivative financial assets
□ Applicable √ N/A
4. Notes receivable
(1). Categories of notes receivable
√ Applicable □ N/A
In RMB
| Item | Closing balance | Opening balance |
| Bank acceptances | 4,020,000.00 | |
| Commercial acceptances | 2,234,687.77 | 1,236,603.03 |
| Total | 2,234,687.77 | 5,256,603.03 |
(2). Notes receivable pledged by the Company at the end of the period
□ Applicable √ N/A
(3). Notes receivable which are undue as at the balance sheet date but endorsed or discounted by the
Company at the end of the period
√ Applicable □ N/A
(4). Notes transferred to accounts receivable due to drawer’s failure in cashing at the end of the period
√ Applicable □ N/A
In RMB
| Item | Amounts transferred to accounts receivable as of the end of the period |
| Commercial acceptances | 2,252,000.00 |
| Total | 2,252,000.00 |
(5). Disclosure by categories of provision for bad debts
√ Applicable □ N/A
In RMB
| Category | Closing balance | Opening balance | |||||||||
| Carrying amount | Bad debt provision | Book value | Carrying amount | Bad debt provision | Book value | ||||||
| Amount | Percentage (%) | Amount | Percentage of provision (%) | Amount | Percentage (%) | Amount | Percentage of provision (%) | ||||
| Provision for bad debts made individually | |||||||||||
| Where: | |||||||||||
| Provision for bad debts made by group | |||||||||||
| Where: | |||||||||||
| Bank acceptance bills | 4,020,000.00 | 75.54 | 4,020,000.00 | ||||||||
| Commercial acceptance bills | 2,352,302.92 | 100.00 | 117,615.15 | 5.00 | 2,234,687.77 | 1,301,687.40 | 24.46 | 65,084.37 | 5.00 | 1,236,603.03 | |
| Total | 2,352,302.92 | 100.00 | 117,615.15 | 5.00 | 2,234,687.77 | 5,321,687.40 | 100.00 | 65,084.37 | 1.22 | 5,256,603.03 | |
Provision for bad debts made individually:
□ Applicable √ N/A
Provision for bad debts made by group:
√ Applicable □ N/A
Item by group: Commercial acceptance bills and bank acceptance bills
In RMB
| Name | Closing balance | ||
| Notes receivable | Bad debt provision | Proportion of provision(%) | |
| Commercial acceptance bills group | 2,352,302.92 | 117,615.15 | 5.00 |
| Total | 2,352,302.92 | 117,615.15 | 5.00 |
Recognition criterion to make the bad debt provision by group and explanation
□ Applicable √ N/A
If a provision for bad debts of accounts receivable is made in accordance with the general model of ECL,please disclose relevant information subject to the disclosure of the bad debt provisionfor other receivables:
□ Applicable √ N/A
(6). Provision for bad debts
√ Applicable □ N/A
In RMB
| Category | Opening balance | Changes for the current period | Closing balance | ||
| Provision | Recovery or reversal | Write off or cancellation | |||
| Provision for bad debts made individually | |||||
| Provision for bad debts made by group | 65,084.37 | 52,530.78 | 117,615.15 | ||
| Total | 65,084.37 | 52,530.78 | 117,615.15 | ||
Including significant amounts recovered or reversed from the current provision for bad debts:
□ Applicable √ N/A
Other information:
None
(7). Notes receivable actually canceled in the current period
□ Applicable √ N/A
Other information
□ Applicable √ N/A
5. Accounts receivable
(1). Disclosure by aging
√ Applicable □ N/A
In RMB
| Aging | Closing balance of carrying amount |
| Within 1 year | |
| Where: Subitems within 1 year | |
| Within 1 year | 210,010,536.64 |
| Subtotal of items within 1 year | 210,010,536.64 |
| 1 to 2 years | 27,967,582.36 |
| 2 to 3 years | 966,561.56 |
| Over 3 years | 486,453.15 |
| Total | 239,431,133.71 |
(2). Disclosure by categories of provision for bad debts
√ Applicable □ N/A
Provision for bad debts made individually:
√ Applicable □ N/A
In RMB
| Name | Closing balance | |||
| Carrying amount | Bad debt provision | Proportion of provision (%) | Reason for provision | |
| A company | 16,265,737.14 | 16,265,737.14 | 100.00 | The amounts are expected to be unrecoverable |
| B company | 162,952.41 | 162,952.41 | 100.00 | The amounts are expected to be |
Category
| Category | Closing balance | Opening balance | ||||||||
| Carrying amount | Bad debt provision | Book value | Carrying amount | Bad debt provision | Book value | |||||
| Amount | Percentage(%) | Amount | Percentage of provision(%) | Amount | Percentage(%) | Amount | Percentage of provision(%) | |||
| Provision for bad debts made individually | 16,498,540.60 | 6.89 | 16,498,540.60 | 100.00 | 2,117,500.23 | 0.50 | 1,279,675.64 | 60.43 | 837,824.59 | |
| Where: | ||||||||||
| Provision for bad debts made by group | 222,932,593.11 | 93.11 | 14,672,357.32 | 6.58 | 208,260,235.79 | 425,509,438.81 | 99.50 | 23,212,791.53 | 5.46 | 402,296,647.28 |
| Where: | ||||||||||
| Total | 239,431,133.71 | 100.00 | 31,170,897.92 | 13.02 | 208,260,235.79 | 427,626,939.04 | 100.00 | 24,492,467.17 | 5.73 | 403,134,471.87 |
| unrecoverable | ||||
| C company | 69,851.05 | 69,851.05 | 100.00 | The amounts are expected to be unrecoverable |
| Total | 16,498,540.60 | 16,498,540.60 | 100.00 |
Explanation about provision for bad debts made individually:
√ Applicable □ N/A
Company A's payment receivable was overdue and the other party was unable to repay, and the full amount ofits receivables was prepared to be deemed as bad debts.
Provision for bad debts made by group:
√ Applicable □ N/A
Item by group: Accounts receivable for which the provision for bad debts is made by aging group
In RMB
| Name | Closing balance | ||
| Accounts receivable | Bad debt provision | Proportion of provision (%) | |
| Within 1 year | 208,265,090.89 | 10,413,254.55 | 5.00 |
| 1-2 years | 13,271,499.61 | 3,317,874.89 | 25.00 |
| 2-3 years | 909,549.46 | 454,774.73 | 50.00 |
| Over 3 years | 486,453.15 | 486,453.15 | 100.00 |
| Total | 222,932,593.11 | 14,672,357.32 | 6.58 |
Recognition criterion to make the bad debt provision by group and explanation:
□ Applicable √ N/A
If a provision for bad debts of accounts receivable is made in accordance with the general model of ECL,please disclose relevant information subject to the disclosure of the bad debt provisionfor other receivables:
□ Applicable √ N/A
(3). Provision for bad debts
√ Applicable □ N/A
In RMB
| Category | Opening balance | Changes for the current period | Closing balance | |||
| Provision | Recovery or reversal | Write off or cancellation | Other changes | |||
| Provision for bad debts made individually | 1,279,675.64 | 16,428,689.55 | 837,824.59 | 372,000.00 | 16,498,540.60 | |
| Provision for bad debts made by group | 23,212,791.53 | -8,191,233.07 | 349,201.14 | 14,672,357.32 | ||
| Total | 24,492,467.17 | 8,237,456.48 | 837,824.59 | 721,201.14 | 31,170,897.92 | |
Including significant amounts recovered or reversed from the current provision for bad debts:
√ Applicable □ N/A
In RMB
| Unit name | Recovered or reversed amount | Recovered method |
| D company | 837,824.59 | Debt restructuring |
| Total | 837,824.59 | / |
Other information
None
(4). Accounts receivable actually canceled in the current period
√ Applicable □ N/A
In RMB
| Item | Cancellation amount |
| Accounts receivable actually canceled | 721,201.14 |
In which significant amounts canceled are described as below:
√ Applicable □ N/A
In RMB
| Unit name | Nature of accounts receivable | Write-off amount | Reason for write-off | Write-off procedures performed | Whether the amount was generated by a related transaction |
| E company | Payment for goods | 372,000.00 | Confirmed not to be recovered | Application for approval of bad debt write-off | NO |
| F company | Renovation fees | 260,000.00 | Confirmed not to be recovered | Application for approval of bad debt write-off | NO |
| Total | - | 632,000.00 | - | - | - |
Description of accounts receivable cancellation:
□ Applicable √ N/A
(5). Top five closing balances of accounts receivable categorized by debtors
√ Applicable □ N/A
In RMB
| Entity | Closing balance | Proportion to the total closing balance of accounts receivable (%) | Closing balance of bad debt provision |
| The 1st place | 54,936,710.76 | 22.94 | 2,746,835.54 |
| The 2ed place | 22,671,178.87 | 9.47 | 1,133,558.94 |
| The 3rd place | 22,264,277.00 | 9.30 | 1,113,213.85 |
| The 4th place | 20,032,956.30 | 8.37 | 1,001,647.82 |
| The 5th place | 16,265,737.14 | 6.79 | 16,265,737.14 |
| Total | 136,170,860.07 | 56.87 | 22,260,993.29 |
Other information
None
(6). Accounts receivable derecognized due to transfer of financial assets
√ Applicable □ N/A
| Item | Derecognition amount | Gains or losses associated with derecognition | The method of transferring financial assets |
| CCB E Infocomm | 3,000,000.00 | Discount | |
| Subtotal | 3,000,000.00 |
(7). Assets and liabilities arising from transfer of accounts receivable and continued involvement
□ Applicable √ N/A
Other information:
□ Applicable √ N/A
6. Receivables financing
√ Applicable □ N/A
In RMB
| Item | Closing balance | Opening balance |
| Bank acceptance bills | 4,279,041.00 | 244,860.00 |
| Total | 4,279,041.00 | 244,860.00 |
Changes in amount and fair value of receivables financing:
□ Applicable √ N/A
If a provision for bad debts of accounts receivable is made in accordance with the general model of ECL,please disclose relevant information subject to the disclosure of the bad debtprovision for other receivables:
□ Applicable √ N/A
Other information:
√ Applicable □ N/A
Notes receivable which are undue as at the balance sheet date but endorsed or discounted by theCompany at the end of the period
| Item | Amount derecognized at the end of the period |
| Bank acceptance bills | 4,614,000.00 |
| Subtotal | 4,614,000.00 |
The acceptors of bank acceptance bills are large-sized commercial banks with high credit ratings andlisted joint-stock commercial banks. Because they always have high credit ratings, it is less probable thatbank acceptance bills will not get paid upon maturity; therefore, the Company has derecognized endorsed ordiscounted bank acceptance bills accepted by banks with high credit ratings. However, if such notes are unableto be paid at maturity, the Company will still be jointly and severally liable to the note holders pursuant tothe Negotiable Instruments Law.
7. Prepayments
(1). Disclosure of prepayments by aging
√ Applicable □ N/A
In RMB
| Aging | Closing balance | Opening balance | ||
| Amount | Percentage (%) | Amount | Percentage (%) | |
| Within 1 year | 37,333,767.05 | 77.06 | 90,997,714.13 | 92.74 |
| 1 to 2 years | 4,701,469.65 | 9.70 | 7,119,256.70 | 7.26 |
| 2 to 3 years | 6,410,740.16 | 13.24 | ||
| Total | 48,445,976.86 | 100.00 | 98,116,970.83 | 100.00 |
Reasons for overdue settlement of prepayments with significant amounts aged more than 1 year:
| Entity | Closing balance | Reason for not settled |
| G company | 6,268,140.00 | Advance payment has been made for high-end lasers |
| Subtotal | 6,268,140.00 |
(2). Top five closing balances of prepayments categorized by receivers
√ Applicable □ N/A
| Entity | Closing balance | Proportion to the total closing balance of prepayments (%) |
| 1 | 8,994,021.16 | 18.57 |
| 2 | 6,268,140.00 | 12.94 |
| 3 | 5,451,984.90 | 11.25 |
| 4 | 4,052,741.15 | 8.37 |
| 5 | 2,321,759.89 | 4.79 |
| Total | 27,088,647.10 | 55.92 |
Other information
NoneOther information
□ Applicable √ N/A
8. Other receivables
Presented by items
√ Applicable □ N/A
In RMB
| Item | Closing balance | Opening balance |
| Interest receivable | ||
| Dividend receivable | 13,789,908.00 | 12,623,886.00 |
| Other receivables | 12,541,813.55 | 17,848,709.66 |
| Total | 26,331,721.55 | 30,472,595.66 |
Other information:
□ Applicable √ N/A
Interest receivable
(1). Categories of interest receivable
□ Applicable √ N/A
(2). Significant interests overdue
□ Applicable √ N/A
(3). Provision for bad debts
□ Applicable √ N/A
Other information:
□ Applicable √ N/A
Dividend receivable
(1). Dividend receivable
√ Applicable □ N/A
In RMB
| Project (or investee) | Closing balance | Opening balance |
| Dividend distribution from GDC Technology Limited (BVI) | 13,789,908.00 | 12,623,886.00 |
| Total | 13,789,908.00 | 12,623,886.00 |
(2). Dividends receivable with significant amounts aged more than 1 year
√ Applicable □ N/A
In RMB
| Project (or investee) | Closing balance | Aging | Reasons for non-recovery | Whether impairment has occurred and the basis for its judgment |
| Dividend distribution from GDC Technology Limited (BVI) | 13,789,908.00 | 1 to 2 years | There are matters not reached an agreement through negotiation, and the payment has not yet been made | The other party has no credit risk and no impairment has occurred |
| Total | 13,789,908.00 | - | - | - |
(3). Provision for bad debts
□ Applicable √ N/A
Other information:
□ Applicable √ N/A
Other receivables
(1). Disclosure by aging
√ Applicable □ N/A
In RMB
| Aging | Closing balance of carrying amount |
| Within 1 year | |
| Where: Subitems within 1 year | |
| Within 1 year | 5,167,315.12 |
| Subtotal of items within 1 year | 5,167,315.12 |
| 1 to 2 years | 1,917,518.11 |
| 2 to 3 years | 1,064,581.40 |
| Over 3 years | 5,030,255.35 |
| Total | 13,179,669.98 |
(2). Categories by the nature of other receivables
√ Applicable □ N/A
In RMB
| Nature of other receivables | Closing balance of carrying amount | Opening balance of carrying amount |
| Deposits/margins/petty cash | 11,162,127.62 | 9,664,667.87 |
| Withholding | 818,004.80 | 727,191.75 |
| Temporary receivables | 1,133,717.92 | 735,913.53 |
| Compensation receivable | 65,819.64 | 7,650,840.00 |
| Total | 13,179,669.98 | 18,778,613.15 |
(3). Provision for bad debts
√ Applicable □ N/A
In RMB
| Bad debt provision | Stage I | Stage II | Stage III | Total |
| 12-month ECL in the future | Lifetime ECL (without credit impairment) | Lifetime ECL (with credit impairment) | ||
| Balance as at January 1, 2022 | 895,737.89 | 34,165.60 | 929,903.49 | |
| Balance as at January 1, 2022 in the current period | —— | —— | —— | |
| --transferred to Stage II | -4,943.30 | 4,943.30 | ||
| --transferred to Stage II | ||||
| --reversed to Stage II | ||||
| -- reversed to Stage I | ||||
| Provision | -277,654.65 | -14,392.41 | -292,047.06 | |
| Reversal | ||||
| Write-off | ||||
| Cancellation | ||||
| Other changes | ||||
| Balance as at December 31,2022 | 613,139.94 | 24,716.49 | 637,856.43 |
Description of significant changes in the balance of other receivables with changed provisions for lossesin the current period:
□ Applicable √ N/A
Basis for recognizing the amount of bad debt provisions and evaluating whether the credit risk of financialinstruments has been increased significantly in the current period:
□ Applicable √ N/A
(4). Provision for bad debts
√ Applicable □ N/A
In RMB
| Category | Opening balance | Changes for the current period | Closing balance | |||
| Provision | Recovery or reversal | Write off or cancellation | Other changes | |||
| Provision made by group Bad debt provision | 929,903.49 | -292,047.06 | 637,856.43 | |||
| Total | 929,903.49 | -292,047.06 | 637,856.43 | |||
Including significant amounts recovered or reversed from the current provision for bad debts:
□ Applicable √ N/A
(5). Other receivables actually canceled in the current period
□ Applicable √ N/A
(6). Top five closing balances of other receivables categorized by debtors
√ Applicable □ N/A
In RMB
| Entity | Nature of other receivables | Closing balance | Aging | Proportion to the balance of other receivables (%) | Bad debt provision Closing balance |
| Shenzhen Meisheng Industry Co., Ltd. | Deposits/margins/petty cash | 3,574,618.00 | Over 3 years | 27.12 | 178,730.90 |
| Shenzhen High-tech Industry Promotion Center | Deposits/margins/petty cash | 1,302,675.20 | 2-3 years, over 3years | 9.88 | 65,133.76 |
| Beijing JD Century Trading Co., Ltd | Deposits/margins/petty cash | 800,000.00 | Within 1 year；1-2 years；over 3years | 6.07 | 40,000.00 |
| Beijing Dongsheng Bozhan Technology Development Co., Ltd. | Deposits/margins/petty cash | 756,155.64 | 1-2 years | 5.74 | 37,807.78 |
| Chongqing Jintai Asset Management Co., Ltd | Deposits/margins/petty cash；Temporary payments receivable | 505,491.60 | Within 1 year, 1-2 years | 3.84 | 25,274.58 |
| Total | / | 6,938,940.44 | / | 52.65 | 346,947.02 |
(7). Accounts receivable involving government grants
□ Applicable √ N/A
(8). Other receivables derecognized due to transfer of financial assets
□ Applicable √ N/A
(9). Assets and liabilities arising from transfer of other receivables and continued involvement
□ Applicable √ N/A
Other information:
□ Applicable √ N/A
9. Inventories
(1). Categories of inventories
√ Applicable □ N/A
In RMB
| Item | Closing balance | Opening balance | ||||
| Carrying amount | Provision for decline in value of inventories/impairment of contract performance cost | Book value | Carrying amount | Provision for decline in value of inventories/impairment of contract performance cost | Book value | |
| Raw materials | 511,371,448.78 | 29,152,044.36 | 482,219,404.42 | 493,448,593.04 | 21,083,424.30 | 472,365,168.74 |
| Work in progress | 15,037,109.26 | 2,581,014.21 | 12,456,095.05 | 30,541,893.32 | 2,147,311.13 | 28,394,582.19 |
| Goods on hand | 354,588,226.87 | 24,770,894.74 | 329,817,332.13 | 229,438,709.58 | 13,362,893.39 | 216,075,816.19 |
| Goods upon delivery | 31,157,150.48 | 1,901,108.14 | 29,256,042.34 | 43,433,678.08 | 1,652,492.43 | 41,781,185.65 |
| Materials for consigned processing | 9,397,672.25 | 246,897.56 | 9,150,774.69 | 4,492,945.01 | 22,530.31 | 4,470,414.70 |
| Contract performance cost | 2,740,313.16 | 2,740,313.16 | 7,263,873.33 | 729,907.80 | 6,533,965.53 | |
| Total | 924,291,920.80 | 58,651,959.01 | 865,639,961.79 | 808,619,692.36 | 38,998,559.36 | 769,621,133.00 |
(2). Provision for decline in value of inventories and impairment of contract performance cost
√ Applicable □ N/A
In RMB
| Item | Opening balance | Increase | Decrease | Closing balance | ||
| Provision | Others | Reversal or write- off | Others | |||
| Raw materials | 21,083,424.30 | 18,562,605.34 | 10,464,049.42 | 29,935.86 | 29,152,044.36 | |
| Work in progress | 2,147,311.13 | 2,507,289.82 | 2,073,586.74 | 2,581,014.21 | ||
| Goods on hand | 13,362,893.39 | 32,934,376.49 | 21,526,375.14 | 24,770,894.74 | ||
| Goods upon delivery | 1,652,492.43 | 249,459.05 | 843.34 | 1,901,108.14 | ||
| Materials for consigned processing | 22,530.31 | 245,466.14 | 21,098.89 | 246,897.56 | ||
| Contract performance cost | 729,907.80 | 729,907.80 | ||||
| Total | 38,998,559.36 | 54,499,196.84 | 34,815,861.33 | 29,935.86 | 58,651,959.01 | |
Specify reasons for specific determination basis of net realizable value, and reversal or write-off ofthe provision for decline in value of inventories
| Item | Specific basis for determining the net realizable value | Reason for reversal to the provisions for loss on inventories in the current period | Reason for writing off the provisions for decline in value of on inventories in the current period |
| Raw materials | The net realizable value of raw materials is determined as the historical average selling price or actual average selling price of finished goods in the ordinary course of business less the estimated costs of completion, and the estimated costs necessary to make the sale and relevant taxes. | For the inventories of which a provision for decline in value has been made in prior period, their net realizable values have increased | The Company Has consumed/sold the inventories for which a provision for decline in value has been made at the beginning of the current period. |
| Work in progress、Materials for consigned processing | The net realizable value of work in progress is determined as the historical average selling price or actual average selling price of finished goods in the ordinary course of business less the estimated costs of completion, and the estimated costs necessary to make the sale and relevant taxes. | For the inventories of which a provision for decline in value has been made in prior period, their net realizable values have increased | The Company Has consumed/sold the inventories for which a provision for decline in value has been made at the beginning of the current period. |
| Goods on hand | For inventories directly used for sale, the net realizable value is determined as the historical average selling price or actual average selling price less the estimated costs necessary to make the sale and relevant taxes. | For the inventories of which a provision for decline in value has been made in prior period, their net realizable | The Company has consumed/sold the inventories for which a provision for decline in value has been made at the beginning of the current period. |
Contract performance cost
| Item | Opening balance | Increase | Amortization | Provision for impairment made in the current period | Closing balance |
| Entrusted development | 1,934,228.95 | 2,460,202.66 | 3,113,913.51 | 1,280,518.10 | |
| Overseas freight | 4,599,736.58 | 1,459,795.06 | 4,599,736.58 | 1,459,795.06 | |
| Subtotal | 6,533,965.53 | 3,919,997.72 | 7,713,650.09 | 2,740,313.16 |
(3). Description of capitalized amount of borrowing costs included in the closing balance of inventories
□ Applicable √ N/A
(4). Description of amortization of contract performance cost during the period
□ Applicable √ N/A
Other information
□ Applicable √ N/A
10. Contract assets
(1). Description of contract assets
√ Applicable □ N/A
In RMB
| Item | Closing balance | Opening balance | ||||
| Carrying amount | Provision for impairment | Book value | Carrying amount | Provision for impairment | Book value | |
| Warranty security receivable | 1,031,362.02 | 153,332.67 | 878,029.35 | 292,607.50 | 198,551.88 | 94,055.62 |
| Goods payment | 1,202,847.32 | 1,019,295.32 | 183,552.00 | 5,342,438.43 | 1,532,634.82 | 3,809,803.61 |
| Total | 2,234,209.34 | 1,172,627.99 | 1,061,581.35 | 5,635,045.93 | 1,731,186.70 | 3,903,859.23 |
(2). Amount and reasons of major changes in the book value during the reporting period
□ Applicable √ N/A
(3). Description of provision for impairment made on contract assets during the period
√ Applicable □ N/A
In RMB
| Item | Provision | Reversal | Write-off/cancellation in the period | Reason |
| Provision for Impairment made by group | -558,558.71 | |||
| Total | -558,558.71 | / |
If a provision for bad debts of accounts receivable is made in accordance with the general model of ECL,please disclose relevant information subject to the disclosure of the bad debt provision for otherreceivables:
□ Applicable √ N/A
Other information:
□ Applicable √ N/A
11. Held-for-sale assets
□ Applicable √ N/A
12. Non-current assets due within one year
√ Applicable □ N/A
In RMB
| Item | Closing balance | Opening balance |
| Debt investments maturing within one year | ||
| Other debt investments due within one year | ||
| Long-term receivables due within one year | 13,431,554.82 | 3,473,049.18 |
| Total | 13,431,554.82 | 3,473,049.18 |
Debt investments and other debt investments with significant amounts at the end of the period
□ Applicable √ N/A
Other informationNone
13. Other current assets
√ Applicable □ N/A
In RMB
| Item | Closing balance | Opening balance |
| Input VAT to be deducted | 96,670,912.86 | 52,258,757.92 |
| Prepaid enterprise income tax | 6,101,724.28 | |
| Cost of returned goods receivable | 3,729,974.65 | 503,062.91 |
| Total | 106,502,611.79 | 52,761,820.83 |
Other information
None
14. Debt investments
(1). Description of debt investments
□ Applicable √ N/A
(2). Debt investments with significant amounts at the end of the period
□ Applicable √ N/A
(3). Description of provision for impairment
□ Applicable √ N/A
Basis for recognizing the amount of provisions for impairment and evaluating whether the credit risk offinancial instruments has been increased significantly in the current period
□ Applicable √ N/A
Other information
□ Applicable √ N/A
15. Other debt investments
(1). Description of other debt investments
□ Applicable √ N/A
(2). Other debt investments with significant amounts at the end of the period
□ Applicable √ N/A
(3). Description of provision for impairment
□ Applicable √ N/A
Basis for recognizing the amount of provisions for impairment and evaluating whether the credit risk offinancial instruments has been increased significantly in the current period
□ Applicable √ N/A
Other information:
□ Applicable √ N/A
16. Long-term receivables
(1). Description of long-term receivables
√ Applicable □ N/A
In RMB
| Item | Closing balance | Opening balance | Range of discount rate | ||||
| Carrying amount | Bad debt provision | Book value | Carrying amount | Bad debt provision | Book value | ||
| Installment payment | 14,773,704.48 | 2,834,052.02 | 11,939,652.46 | 7,528,000.00 | 1,376,400.00 | 6,151,600.00 | 4.30%-4.65% |
| Less:Financing income not realized | 415,458.66 | 415,458.66 | 358,047.26 | 358,047.26 | 4.30%-4.65% | ||
| Total | 14,358,245.82 | 2,834,052.02 | 11,524,193.80 | 7,169,952.74 | 1,376,400.00 | 5,793,552.74 | / |
(2). Provision for bad debts
√ Applicable □ N/A
In RMB
| Bad debt provision | Stage I | Stage II | Stage III | Total |
| 12-month ECL in the future | Lifetime ECL (without credit impairment) | Lifetime ECL (with credit impairment) |
| Balance as at January 1, 2022 | 1,376,400.00 | 1,376,400.00 | ||
| Balance as at January 1, 2022 in the current period | ||||
| --transferred to Stage II | ||||
| --transferred to Stage III | ||||
| --reversed to Stage II | ||||
| --reversed to Stage I | ||||
| Provision | 3,680,005.86 | 3,680,005.86 | ||
| Reversal | ||||
| Write-off | ||||
| Cancellation | ||||
| Other changes | -2,222,353.84 | -2,222,353.84 | ||
| Balance as at December 31,2022 | 2,834,052.02 | 2,834,052.02 |
Note: Other items are prepared to be transferred to non-current asset maturing within one year as bad debts.Basis for recognizing the amount of bad debt provisions and evaluating whether the credit risk of financialinstruments has been increased significantly in the current period
□ Applicable √ N/A
(3). Long-term receivables derecognized due to transfer of financial assets
□ Applicable √ N/A
(4). Assets and liabilities arising from transfer of long-term receivables and continued involvement
□ Applicable √ N/A
Other information
□ Applicable √ N/A
17. Long-term equity investments
√ Applicable □ N/A
In RMB
| Investees | Opening Balance | Changes for the current period | Closing Balance | Closing balance of provision for impairment | |||||||
| Additional investment | Decreased investment | Investment profit or loss under equity method | Adjustment in other comprehensive income | Other equity changes | Declared cash dividends or profits | Provision for impairment | Others | ||||
| I.Joint venture | |||||||||||
| Subtotal | |||||||||||
| II. Associates | |||||||||||
| Cinionic Limited | 126,924,427.40 | 133,585,796.63 | 4,162,827.48 | -3,563,510.66 | 6,062,052.41 | ||||||
| GDC Technology Limited（BVI） | 166,676,657.87 | -5,329,660.58 | -13,596,081.84 | 14,644,002.12 | 162,394,917.57 | ||||||
| Subtotal | 293,601,085.27 | 133,585,796.63 | -1,166,833.10 | -17,159,592.50 | 20,706,054.53 | 162,394,917.57 | |||||
| Total | 293,601,085.27 | 133,585,796.63 | -1,166,833.10 | -17,159,592.50 | 20,706,054.53 | 162,394,917.57 |
Other information
The Company transferred all the shares of Cinionic Limited held in the current period, reducing the costof long-term equity investment by RMB133,404,000.00, the profit and loss adjustment of long-term equityinvestment by RMB4,527,603.89, and other comprehensive income of long-term equity investment by-RMB4,345,807.26, all totaling to RMB133,585,796.63; other items in the current period are changes inforeign currency translation of changes in exchange gains and losses.
18. Other equity instrument investments
(1). Description of other equity instrument investments
√ Applicable □ N/A
In RMB
| Item | Closing balance | Opening balance |
| Shen Zhen Timewaying Technology Co., Ltd. | 7,075,419.38 | 7,075,419.38 |
| Shenzhen Bevix Technology Co., Ltd. | ||
| Total | 7,075,419.38 | 7,075,419.38 |
(2). Description of equity investments not held for trading
√ Applicable □ N/A
In RMB
| Item | Dividend s income recognized for the current period | Accumulated gains | Accumulated losses | Amounts to retained Earnings from other comprehensive income | Reasons for designating as financial assets at fair Value through other comprehensive income | Reasons for transferring to retained earnings from other comprehensive income |
| Shen Zhen Timewayin g Technolog y Co., Ltd. | Subject to the management’ s intention of holding | |||||
| Shenzhen Bevix Technolog y Co., Ltd. | Subject to the management’ s intention of holding |
Other information:
√ Applicable □ N/A
The Company's equity investments in Shenzhen Time waying Technology Co., Ltd. and Bevix TechnologyCo., Ltd. are mainly aimed at promoting future business cooperation, not for transaction purposes, so they aredesignated as equity instrument investments measured at fair value and changes in which are included in othercomprehensive income.The cost of Bevix Technology Co., Ltd. is RMB4,900,000.00, and the fair value change is-RMB4,900,000.00.
19. Other non-current financial assets
□ Applicable √ N/A
Other information:
□ Applicable √ N/A
20. Investment properties
Measurement mode of investment propertiesN/A
21. Fixed assets
Presented by items
√ Applicable □ N/A
In RMB
| Item | Closing balance | Opening balance |
| Fixed assets | 427,539,718.53 | 470,410,450.18 |
| Disposal of fixed assets | ||
| Total | 427,539,718.53 | 470,410,450.18 |
Other information:
□ Applicable √ N/A
Fixed assets
(1). Description of fixed assets
√ Applicable □ N/A
In RMB
| Item | Machinery and equipment | Transportation equipment | Electronic equipment and others | Operating leased equipment | Total |
| I. Cost: | |||||
| 1.Opening balance | 129,590,613.35 | 1,171,400.05 | 49,253,347.48 | 650,822,359.27 | 830,837,720.15 |
| 2.Increase | 33,880,594.27 | 10,531,132.97 | 47,704,331.12 | 92,116,058.36 | |
| 1)Purchase | 30,775,964.76 | 9,326,628.21 | 40,102,592.97 | ||
| 2)Transfer from construction in progress | 47,704,331.12 | 47,704,331.12 | |||
| 3)Transfer from inventories | 2,691,902.64 | 977,823.33 | 3,669,725.97 | ||
| 4)Currency movement | 412,726.87 | 226,681.43 | 639,408.30 | ||
| 3.Decrease | 3,832,328.91 | 1,226,412.85 | 15,872,518.64 | 20,931,260.40 | |
| 1)Disposal or retirement | 3,810,632.74 | 998,837.40 | 720,999.49 | 5,530,469.63 | |
| 2)Transfer to inventories | 21,696.17 | 227,575.45 | 15,151,519.15 | 15,400,790.77 | |
| 4.Closing balance | 159,638,878.71 | 1,171,400.05 | 58,558,067.60 | 682,654,171.75 | 902,022,518.11 |
| II. Accumulated depreciation | |||||
| 1.Opening balance | 56,949,056.23 | 593,333.19 | 23,152,360.80 | 279,402,867.35 | 360,097,617.57 |
| 2.Increase | 23,464,629.20 | 164,787.60 | 8,130,873.73 | 91,722,012.00 | 123,482,302.53 |
| 1)Provision | 23,301,264.84 | 164,787.60 | 8,000,836.69 | 91,722,012.00 | 123,188,901.13 |
| 2)Currency movement | 163,364.36 | 130,037.04 | 293,401.40 | ||
| 3.Decrease | 2,981,146.15 | 697,015.10 | 6,516,118.72 | 10,194,279.97 | |
| 1)Disposal or retirement | 2,978,864.39 | 635,110.88 | 664,556.58 | 4,278,531.85 | |
| 2)Transfer to inventories | 2,281.76 | 61,904.22 | 5,851,562.14 | 5,915,748.12 | |
| 4.Closing balance | 77,432,539.28 | 758,120.79 | 30,586,219.43 | 364,608,760.63 | 473,385,640.13 |
| III. Provision for impairment | |||||
| 1.Opening balance | 329,652.40 | 329,652.40 | |||
| 2.Increase | 810,398.00 | 810,398.00 | |||
| 1)Provision | 810,398.00 | 810,398.00 | |||
| 3.Decrease | 42,890.95 | 42,890.95 | |||
| 1)Disposal or retirement | |||||
| 2)Transfer to inventories | 42,890.95 | 42,890.95 | |||
| 4.Closing balance | 1,097,159.45 | 1,097,159.45 | |||
| IV. Book value | |||||
| 1.Closing balance | 82,206,339.43 | 413,279.26 | 27,971,848.17 | 316,948,251.67 | 427,539,718.53 |
| 2.Opening balance | 72,641,557.12 | 578,066.86 | 26,100,986.68 | 371,089,839.52 | 470,410,450.18 |
(2). Temporarily idle fixed assets
√ Applicable □ N/A
In RMB
| Item | Original book value | Accumulated depreciation | Provision for impairment | Book value | Remark |
| Operating leased equipment | 40,396,445.99 | 26,105,492.64 | 936,250.50 | 13,354,702.85 | |
| Total | 40,396,445.99 | 26,105,492.64 | 936,250.50 | 13,354,702.85 |
(3). Fixed assets acquired under finance lease
□ Applicable √ N/A
(4). Fixed assets leased out under operating lease
√ Applicable □ N/A
In RMB
| Item | Closing balance of carrying amount |
| Operating leased equipment | 303,593,548.82 |
| Total | 303,593,548.82 |
(5). Fixed assets of which certificates of title have not been obtained
□ Applicable √ N/A
Other information:
□ Applicable √ N/A
Disposal of fixed assets
□ Applicable √ N/A
22. Construction in progress
Presented by items
√ Applicable □ N/A
In RMB
| Item | Closing balance | Opening balance |
| Construction in progress | 278,978,057.73 | 148,620,511.35 |
| Materials for construction | ||
| Total | 278,978,057.73 | 148,620,511.35 |
Other information:
□ Applicable √ N/A
Construction in progress
(1). Description of construction in progress
√ Applicable □ N/A
In RMB
| Item | Closing balance | Opening balance | ||||
| Carrying amount | Provision for impairment | Book value | Carrying amount | Provision for impairment | Book value | |
| Headquarter buildings | 270,837,599.21 | 270,837,599.21 | 133,111,026.64 | 133,111,026.64 | ||
| Leased assets | 6,266,605.31 | 6,266,605.31 | 15,491,218.74 | 15,491,218.74 | ||
| Light sources to be leased | 1,873,853.21 | 1,873,853.21 | 18,265.97 | 18,265.97 | ||
| Total | 278,978,057.73 | 278,978,057.73 | 148,620,511.35 | 148,620,511.35 | ||
(2). Changes in significant constructions in progress for the current period
√ Applicable □ N/A
In RMB
| Item | Budget amount | Opening Balance | Increase | Amount transferred to fixed assets | Other decreases | Closing Balance | Amount injectd asapro portion of budget amount (%) | Construction progress | Amount of accumulated capitalized interest | Where:Capitalized interest for the period | Inte rest capi taliz atio n rate for the peri od (%) | Source of funds |
| Headquarter buildings | 534,635,200.00 | 133,111,026.64 | 137,726,572.57 | 270,837,599.21 | 55.22 | 55.22 | 4,996,130.79 | 4,306,922.66 | 4.52 | Self-funded capital | ||
| Leased assets | 15,491,218.74 | 38,479,717.69 | 47,704,331.12 | 6,266,605.31 | Self-funded capital | |||||||
| Total | 534,635,200.00 | 148,602,245.38 | 176,206,290.26 | 47,704,331.12 | 277,104,204.52 | / | / | 4,996,130.79 | 4,306,922.66 | / | / |
(3). Provision for impairment losses for construction in progress in the current period
□ Applicable √ N/A
Other information
□ Applicable √ N/A
Materials for construction
(1). Description of materials for construction
□ Applicable √ N/A
23. Productive biological assets
(1). productive biological assets measured at cost
□ Applicable √ N/A
(2). productive biological assets measured at fair value
□ Applicable √ N/A
Other information
□ Applicable √ N/A
24. Oil and gas assets
□ Applicable √ N/A
25. Right-of-use assets
√ Applicable □ N/A
In RMB
| Item | Houses and buildings | Total |
| I. Original book value | ||
| 1. Opening balance | 79,510,041.05 | 79,510,041.05 |
| 2. Increase | 66,102,727.05 | 66,102,727.05 |
| 1）rent | 65,689,449.29 | 65,689,449.29 |
| 2）Currency movement | 413,277.76 | 413,277.76 |
| 3.Decrease | 64,676,152.73 | 64,676,152.73 |
| 1）Disposal | 64,676,152.73 | 64,676,152.73 |
| 4.Closing balance | 80,936,615.37 | 80,936,615.37 |
| II. Accumulated depreciation | ||
| 1. Opening balance | 52,706,130.29 | 52,706,130.29 |
| 2. Increase | 27,479,006.98 | 27,479,006.98 |
| (1) Provision | 27,109,595.46 | 27,109,595.46 |
| （2）Currency movement | 369,411.52 | 369,411.52 |
| 3. Decrease | 61,504,192.19 | 61,504,192.19 |
| (1) Disposal | 61,504,192.19 | 61,504,192.19 |
| 4. Closing balance | 18,680,945.08 | 18,680,945.08 |
| III. Provision for impairment | ||
| 1. Opening balance | ||
| 2. Increase | ||
| (1) Provision | ||
| 3. Decrease | ||
| (1) Disposal | ||
| 4. Closing balance | ||
| IV. Book value | ||
| 1. Closing balance | 62,255,670.29 | 62,255,670.29 |
| 2. Opening balance | 26,803,910.76 | 26,803,910.76 |
Other information:
No
26. Intangible assets
(1). Description of intangible assets
√ Applicable □ N/A
In RMB
| Item | Land use rights | Patents | Software | Total |
| I. Original book value | ||||
| 1.Opening balance | 330,630,000.00 | 20,059,950.00 | 16,430,346.40 | 367,120,296.40 |
| 2.Increase | 3,721,090.81 | 3,721,090.81 | ||
| (1)Purchase | 3,667,281.23 | 3,667,281.23 | ||
| (2)Currency movement | 53,809.58 | 53,809.58 | ||
| 3. Decrease | ||||
| (1) Disposal | ||||
| 4.Closing balance | 330,630,000.00 | 20,059,950.00 | 20,151,437.21 | 370,841,387.21 |
| II. Accumulated amortization | ||||
| 1.Opening balance | 38,573,500.14 | 16,390,600.14 | 7,322,240.70 | 62,286,340.98 |
| 2.Increase | 11,021,000.04 | 3,523,003.25 | 14,544,003.29 | |
| (1)Provision | 11,021,000.04 | 3,472,505.47 | 14,493,505.51 | |
| (2)Currency movement | 50,497.78 | 50,497.78 | ||
| 3. Decrease | ||||
| (1)Disposal | ||||
| 4. Closing balance | 49,594,500.18 | 16,390,600.14 | 10,845,243.95 | 76,830,344.27 |
| III. Provision for impairment | ||||
| 1. Opening balance | 3,669,349.86 | 3,669,349.86 | ||
| 2. Increase | ||||
| (1)Provision | ||||
| 3. Decrease | ||||
| (1)Disposal | ||||
| 4. Closing balance | 3,669,349.86 | 3,669,349.86 | ||
| IV. Book value | ||||
| 1.Closing balance | 281,035,499.82 | 9,306,193.26 | 290,341,693.08 | |
| 2.Opening balance | 292,056,499.86 | 9,108,105.70 | 301,164,605.56 | |
The proportion of intangible assets generated by the Company’s internal research and development to thebalance of intangible assets at the end of the period is 0.
(2). Land use rights of which certificates of title have not been obtained
□ Applicable √ N/A
Other information:
□ Applicable √ N/A
27. Development expenditure
□ Applicable √ N/A
28. Goodwill
(1). Original book value of goodwill
□ Applicable √ N/A
(2). Impairment provision of goodwill
□ Applicable √ N/A
(3). Relevant information of groups of assets or combinations of groups of assets where the goodwill isrecognized
□ Applicable √ N/A
(4). Specify test procedure, key parameters of impairment of goodwill (such as increase rate at the
projection period, increase rate at the steady period, profit rate, discount rate, and projectionperiod upon the estimates of the presented value of future cash flow) as well as recognition methodfor impairment loss
□ Applicable √ N/A
(5). Impacts on test of goodwill impairment
□ Applicable √ N/A
Other information
□ Applicable √ N/A
29. Long-term prepaid expenses
√ Applicable □ N/A
In RMB
| Item | Opening balance | Increase | Amortization | Current amortization amount | Closing balance |
| Decoration construction | 9,875,718.38 | 2,837,699.33 | 42,842.64 | 6,820,322.26 | 5,935,938.09 |
| RTO gas for the screen project | 88,073.42 | 33,027.48 | 55,045.94 | ||
| Leased software | 162,373.02 | 162,373.02 | |||
| Total | 10,126,164.82 | 2,837,699.33 | 42,842.64 | 7,015,722.76 | 5,990,984.03 |
Other information:
Other additions are changes in foreign currency translation gains and losses.
30. Deferred tax assets and deferred tax liabilities
(1). Deferred tax assets that are not offset
√ Applicable □ N/A
In RMB
| Item | Closing balance | Opening balance | ||
| Deductible temporary differences | Deferred tax assets | Deductible temporary differences | Deferred tax assets | |
| Provision for impairment of assets | 54,480,645.82 | 8,172,204.87 | 43,598,496.34 | 6,542,132.46 |
| Unrealized profits for insider transactions | 293,141,594.90 | 43,971,239.24 | 359,910,538.71 | 53,986,580.82 |
| Estimated liabilities | 33,861,061.30 | 5,079,159.20 | 30,413,119.32 | 4,561,967.90 |
| Share-based payment expenses | 78,336,744.64 | 11,756,236.09 | 103,555,776.28 | 15,645,325.93 |
| Deferred income | 5,651,422.25 | 847,713.34 | 10,035,489.25 | 1,505,323.38 |
| Leases | 848,471.94 | 128,229.81 | 1,474,346.78 | 221,152.02 |
| Fair Value Change Loss | 1,120,000.00 | 168,000.00 | ||
| Deductible losses | 145,752,332.17 | 21,862,849.83 | ||
| Total | 613,192,273.02 | 91,985,632.38 | 548,987,766.68 | 82,462,482.51 |
(2). Deferred tax liabilities that are not offset
√ Applicable □ N/A
In RMB
| Item | Closing balance | Opening balance | ||
| Taxable temporary differences | Deferred tax Liabilities | Taxable temporary differences | Deferred tax Liabilities | |
| Long-term accounts receivable | 15,031,309.08 | 2,254,696.36 | 9,407,088.13 | 1,411,063.22 |
| Gains from changes in fair values | 2,200,000.00 | 330,000.00 | ||
| Total | 15,031,309.08 | 2,254,696.36 | 11,607,088.13 | 1,741,063.22 |
(3). Deferred tax assets and deferred tax liabilities that are presented at the net amount after offset
√ Applicable □ N/A
In RMB
| Item | Closing set-off amounts of deferred tax assets and liabilities | Closing balance of deferred tax assets or liabilities after set-off | Opening set-off amount of deferred tax assets and liabilities | Opening balance of deferred tax assets or liabilities after set-off |
| Deferred tax assets | 2,254,696.36 | 89,730,936.02 | 1,741,063.22 | 80,721,419.29 |
| Deferred tax liabilities | 2,254,696.36 | 1,741,063.22 |
(4). Details of unrecognized deferred tax assets
√ Applicable □ N/A
In RMB
| Item | Closing balance | Opening balance |
| Provision for impairment of assets | 47,406,755.88 | 29,041,507.01 |
| Unrealized profits for insider transactions | 33,624,043.48 | 36,978,135.00 |
| Estimated liabilities | 18,872,846.92 | 6,015,569.62 |
| Deferred income | 3,000,000.01 | 231,492.83 |
| Share-based payment expenses | 3,180,261.29 | 11,982,368.41 |
| Leases | 1,557,490.63 | 1,726,120.92 |
| Profit distribution from partnership enterprises | 15,991.72 | 40,790.41 |
| Provision for impairment of other equity instrument investments | 4,900,000.00 | 4,900,000.00 |
| Deductible losses | 322,268,687.11 | 326,263,103.27 |
| Total | 434,826,077.04 | 417,179,087.47 |
(5). Deductible losses, for which no deferred tax assets are recognized, will expire in the followingyears
√ Applicable □ N/A
In RMB
| Year | Closing balance | Opening balance | Remark |
| 2022 | 1,747,737.55 | ||
| 2023 | 4,629,271.35 | 27,969,288.80 | |
| 2024 | 3,721,926.96 | 66,901,681.33 | |
| 2025 | 4,647,581.11 | 68,119,959.02 | |
| 2026 | 98,077,911.35 | 98,077,911.35 | |
| 2027 | 105,226,991.61 | ||
| No expiry date | 105,965,004.73 | 63,446,525.22 | |
| Total | 322,268,687.11 | 326,263,103.27 | / |
Other information:
√ Applicable □ N/A
31. Other non-current assets
√ Applicable □ N/A
In RMB
| Item | Closing balance | Opening balance | ||||
| Carrying amount | Provision for impairment | Book value | Carrying amount | Provision for impairment | Book value | |
| Prepayment for purchase of long-term assets | 12,569,088.37 | 12,569,088.37 | 10,998,641.77 | 10,998,641.77 | ||
| Total | 12,569,088.37 | 12,569,088.37 | 10,998,641.77 | 10,998,641.77 | ||
Other information:
None
32. Short-term borrowings
(1). Categories of short-term borrowings
√ Applicable □ N/A
In RMB
| Item | Closing balance | Opening balance |
| Discounting of intra-group notes | 30,000,000.00 | |
| Guaranteed loans | 39,500,000.00 | 5,560,000.00 |
| Credit loans | 60,000,000.00 | 2,468.61 |
| Interest | 89,634.03 | 8,409.50 |
| Total | 129,589,634.03 | 5,570,878.11 |
Description for categories of short-term borrowings:
None
(2). Short-term borrowings overdue but not yet repaid
□ Applicable √ N/A
Of which the significant overdue short-term borrowings are described as below:
□ Applicable √ N/A
Other information
□ Applicable √ N/A
33. Held-for-trading financial liabilities
□ Applicable √ N/A
34. Derivative financial liabilities
□ Applicable √ N/A
35. Notes payable
(1). Presented by notes payable
√ Applicable □ N/A
In RMB
| Category | Closing balance | Opening balance |
| Commercial Acceptance Bill | ||
| Bank acceptance bills | 201,299,388.57 | 134,378,967.61 |
| Total | 201,299,388.57 | 134,378,967.61 |
Total notes payable matured but not paid yet is RMB 0 at the end of the period.
36. Accounts payable
(1). Presented by accounts payable
√ Applicable □ N/A
In RMB
| Item | Closing balance | Opening balance |
| Amounts payable for purchase | 276,845,321.28 | 419,966,567.27 |
| Total | 276,845,321.28 | 419,966,567.27 |
(2). Accounts payable with significant amounts aged more than 1 year
□ Applicable √ N/A
Other information
□ Applicable √ N/A
37. Receipts in advance
(1). Presented by receipts in advance
√ Applicable □ N/A
In RMB
| Item | Closing balance | Opening balance |
| Advance payments of recharge fees | 113,834,728.10 | 130,288,312.62 |
| Total | 113,834,728.10 | 130,288,312.62 |
(2). Receipts in advance with significant amounts aged more than 1 year
√ Applicable □ N/A
In RMB
| Item | Closing balance | Reasons for not repaid or carried-forward |
| Jiangsu Happy Blue Sea Cinema Development Co., Ltd. | 10,898,637.24 | Lease payments received in advance |
| Total | 10,898,637.24 | / |
Other information
□ Applicable √ N/A
38. Contract liabilities
(1). Description of contract liabilities
√ Applicable □ N/A
In RMB
| Item | Closing balance | Opening balance |
| Goods payment | 37,285,920.43 | 45,541,629.55 |
| Total | 37,285,920.43 | 45,541,629.55 |
(2). Amount and reasons of major changes in the book value during the reporting period
□ Applicable √ N/A
Other information:
□ Applicable √ N/A
39. Employee benefits payable
(1). Presented by employee benefits payable
√ Applicable □ N/A
In RMB
| Item | Opening balance | Increase | Decrease | Closing balance |
| I. Short-term benefits | 63,900,756.64 | 419,116,873.52 | 425,256,988.02 | 57,760,642.14 |
| II. Post-employment benefits-defined contribution plan | 186,233.66 | 18,210,519.24 | 18,226,521.00 | 170,231.90 |
| III. Termination benefits | 32,097.21 | 3,932,054.31 | 3,424,065.01 | 540,086.51 |
| Total | 64,119,087.51 | 441,259,447.07 | 446,907,574.03 | 58,470,960.55 |
(2). Presented by short-term employee benefits
√ Applicable □ N/A
In RMB
| Item | Opening balance | Increase | Decrease | Closing balance |
| I. Wages or salaries, bonuses, allowances and subsidies | 63,421,218.21 | 375,679,736.89 | 381,470,383.07 | 57,630,572.03 |
| II. Staff welfare | 291,000.00 | 8,553,263.64 | 8,844,263.64 | |
| III. Social security contributions | 122,585.37 | 13,213,217.48 | 13,227,953.14 | 107,849.71 |
| Where: Medical insurance | 117,296.06 | 12,505,129.93 | 12,519,860.65 | 102,565.34 |
| Work injury insurance | 5,272.33 | 426,593.08 | 426,598.02 | 5,267.39 |
| Maternity insurance | 16.98 | 281,494.47 | 281,494.47 | 16.98 |
| IV. Housing funds | 20,771,697.07 | 20,771,697.07 | ||
| V. Union running costs and employee education costs | 65,953.06 | 898,958.44 | 942,691.10 | 22,220.40 |
| Total | 63,900,756.64 | 419,116,873.52 | 425,256,988.02 | 57,760,642.14 |
(3). Presented by defined contribution plan
√ Applicable □ N/A
In RMB
| Item | Opening balance | Increase | Decrease | Closing balance |
| 1. Basic pensions | 180,578.08 | 17,679,724.78 | 17,695,755.18 | 164,547.68 |
| 2.Unemploymentinsurance | 5,655.58 | 530,794.46 | 530,765.82 | 5,684.22 |
| Total | 186,233.66 | 18,210,519.24 | 18,226,521.00 | 170,231.90 |
Other information:
□ Applicable √ N/A
40. Taxes payable
√ Applicable □ N/A
In RMB
| Item | Closing balance | Opening balance |
| Value-added tax (VAT) | 283,831.65 | 4,246,010.43 |
| Enterprise income tax | 1,329,891.54 | 11,889,909.01 |
| Individual income tax | 5,330,584.62 | 1,613,116.75 |
| City maintenance and construction tax | 461,779.38 | 552,264.60 |
| Education surcharges | 200,014.57 | 242,838.49 |
| Local education surcharges | 133,343.03 | 161,892.32 |
| Stamp duty | 521,340.60 | 832,145.97 |
| Annual franchise right tax | 11,933.84 | 8,012.66 |
| Land use tax | 49.67 | |
| Total | 8,272,768.90 | 19,546,190.23 |
Other information:
None
41. Other payables
Presented by items
√ Applicable □ N/A
In RMB
| Item | Closing balance | Opening balance |
| Withholding | 264,611.23 | 117,948.38 |
| Deposits/margins | 9,538,090.44 | 6,388,325.48 |
| Withdrawals in advance | 38,870,669.59 | 43,694,291.49 |
| Temporary receipts payable | 7,988,985.82 | 3,915,219.45 |
| Total | 56,662,357.08 | 54,115,784.80 |
Other information:
□ Applicable √ N/A
Interest payable
(1). Presented by categories
□ Applicable √ N/A
Dividends payable
(1). Presented by categories
□ Applicable √ N/A
Other payables
(1). Other payables presented by nature
√ Applicable □ N/A
In RMB
| Item | Closing balance | Opening balance |
| Withholding | 264,611.23 | 117,948.38 |
| Deposits/margins | 9,538,090.44 | 6,388,325.48 |
| Withdrawals in advance | 38,870,669.59 | 43,694,291.49 |
| Temporary receipts payable | 7,988,985.82 | 3,915,219.45 |
| Total | 56,662,357.08 | 54,115,784.80 |
(2). Other payables with significant amounts aged more than 1 year
□ Applicable √ N/A
Other information:
□ Applicable √ N/A
42. Held-for-sale liabilities
□ Applicable √ N/A
43. Non-current liabilities due within one year
√ Applicable □ N/A
In RMB
| Item | Closing balance | Opening balance |
| Lease liabilities due within one year | 30,342,348.86 | 18,770,827.17 |
| Long-term borrowings due within one year | 147,500,008.00 | 135,843,834.00 |
| Interest payable | 189,460.51 | 170,455.18 |
| Total | 178,031,817.37 | 154,785,116.35 |
Other information:
None
44. Other current liabilities
Description of other current liabilities
√ Applicable □ N/A
In RMB
| Item | Closing balance | Opening balance |
| Rebates payable | 25,168,744.15 | |
| Taxes to be written off | 3,013,395.69 | 2,756,287.89 |
| Refund | 201,468.53 | 16,804,816.23 |
| Total | 28,383,608.37 | 19,561,104.12 |
Changes in short-term bonds payable:
□ Applicable √ N/A
Other information:
□ Applicable √ N/A
45. Long-term borrowings
(1). Categories of long-term borrowings
√ Applicable □ N/A
In RMB
| Item | Closing balance | Opening balance |
| Guaranteed loans and loans against collateral | 147,905,776.70 | 54,430,844.66 |
| Guaranteed loans | 255,299,986.00 | 313,799,994.00 |
| Interest payable | 514,779.75 | 404,775.98 |
| Total | 403,720,542.45 | 368,635,614.64 |
Description for categories of long-term borrowings:
NoneOther description, including interest range:
□ Applicable √ N/A
46. Bonds payable
(1). Bonds payable
□ Applicable √ N/A
(2). Changes in bonds payable: (excluding other financial instruments such as preference shares,perpetual bonds and others classified as financial liabilities)
□ Applicable √ N/A
(3). Description of converting terms and period of convertible corporate bonds
□ Applicable √ N/A
(4). Description of other financial instruments classified as financial liabilitiesBasic information of other financial instruments including outstanding preferred shares and perpetualbonds at the end of the period
□ Applicable √ N/A
Changes in financial instruments including outstanding preferred shares and perpetual bonds at the end of theperiod
□ Applicable √ N/A
Other financial instruments classified as financial liabilities:
□ Applicable √ N/A
Other information:
□ Applicable √ N/A
47. Leasing liabilities
√ Applicable □ N/A
In RMB
| Item | Closing balance | Opening balance |
| Unpaid lease payments | 37,874,912.40 | 11,300,787.09 |
| Less: Financing charges not recognized | 3,555,628.17 | 511,434.40 |
| Total | 34,319,284.23 | 10,789,352.69 |
Other information:
None
48. Long-term payables
Presented by items
□ Applicable √ N/A
Other information:
□ Applicable √ N/A
Long-term payables
(1). Long-term payables presented by nature
√ Applicable □ N/A
Special payables
(1). Special payables presented by nature
□ Applicable √ N/A
49. Long-term employee benefits payable
□ Applicable √ N/A
50. Provisions
√ Applicable □ N/A
In RMB
| Item | Opening balance | Closing balance | Reason |
| Product quality warranty | 35,744,039.63 | 49,871,884.36 | Expenses for “three guarantees” services |
| Amounts payable for goods returned | 684,649.31 | 6,591,998.51 | |
| Total | 36,428,688.94 | 56,463,882.87 |
Other description, including significant assumptions and estimates relative to material provisions:
None
51. Deferred income
Description of deferred income
√ Applicable □ N/A
In RMB
| Item | Opening balance | Increase | Decrease | Closing balance | Reason |
| Asset-related government subsidies | 924,464.60 | 7,000,000.00 | 2,018,478.03 | 5,905,986.57 | The relevant asset is within its service life |
| Revenue-related government subsidies | 9,342,517.48 | 2,562,700.00 | 9,159,781.79 | 2,745,435.69 | Related costs, expenses, or losses after reimbursement |
| Total | 10,266,982.08 | 9,562,700.00 | 11,178,259.82 | 8,651,422.26 | / |
Details of government subsidies
| Item | Amount at the beginning of the period | Increased government grants for the current period | The current period is included in the profit and loss of the current period [Note] | Amount at the end of the period | Related to assets/income |
| Trichromatic Laser Display Complete Equipment Production Demonstration Line | 8,679,443.32 | 1,596,800.00 | 8,416,642.17 | 1,859,601.15 | Related to income |
| Key Technology of Trichromatic Laser Display Complete Equipment Industrialization | 552,500.00 | 552,500.00 | Related to income | ||
| Office renovation subsidies of Formovie (Chongqing) | 4,000,000.00 | 999,999.99 | 3,000,000.01 | Related to income | |
| 8K Ultra High Definition Laser Display Technology Engineering Research Center | 924,464.60 | 3,000,000.00 | 1,018,478.04 | 2,905,986.56 | Related to income |
| R&D of key technologies for ultra high-definition micro laser projector optical engine based on light-emitting ceramic | 663,074.16 | 663,074.16 | Related to income |
| Item | Amount at the beginning of the period | Increased government grants for the current period | The current period is included in the profit and loss of the current period [Note] | Amount at the end of the period | Related to assets/income |
| devices | |||||
| Research on 3-color laser light source and LCoS optical engine | 413,400.00 | 80,065.46 | 333,334.54 | Related to income | |
| Subtotal | 10,266,982.08 | 9,562,700.00 | 11,178,259.82 | 8,651,422.26 |
Other information:
√ Applicable □ N/A
Government grants included in the current profit or loss are disclosed in VII.84 of Section X in details.
52. Other non-current liabilities
□ Applicable √ N/A
53. Share capital
√ Applicable □ N/A
In RMB
| Opening balance | Changes (+, -) | Closing balance | |||||
| Issue New share | Bonus shares | Capitalization of capital reserve | Others | Subtotal | |||
| Total shares | 452,756,901.00 | 4,350,637.00 | 4,350,637.00 | 457,107,538.00 | |||
Other information:
On July 7, 2022, the Company has received a total of RMB51,233,634.36 from 185 incentive recipientseligible for vesting under the 2021 Restricted Stock Incentive Plan, of which RMB2,881,497.00 is included inthe share capital, RMB48,352,137.36 is included in the capital premium (equity premium), and other capitalreserves of the capital reserve are carried forward to the capital premium (equity premium) of $28,268,287.17.The matter has been verified by Pan-China Certified Public Accountants (Special General Partnership) andissued the Capital Verification Report (Pan-China Certified [2022] No.7-71).On November 16, 2022, the Company has received a total of RMB25,364,702.10 from 138 incentiverecipients eligible for vesting under the 2019 Restricted Stock Incentive Plan, of which RMB1,469,140.00 isincluded in the share capital, RMB23,895,562.10 is included in the capital premium (equity premium), andother capital reserves are carried forward to the capital premium (equity premium) of $22,161,396.60. Thematter has been verified by Pan-China Certified Public Accountants (Special General Partnership) and issuedthe Capital Verification Report (Pan-China Certified [2022] No.7-113).
54. Other equity instruments
(1). Basic information of other financial instruments including outstanding preferred shares and
perpetual bonds at the end of the period
□ Applicable √ N/A
(2). Changes in financial instruments including outstanding preferred shares and perpetual bonds at
the end of the period
□ Applicable √ N/A
Changes of other equity instruments in the current period, reasons for such change and basis for relatedaccounting treatments:
□ Applicable √ N/A
Other information:
□ Applicable √ N/A
55. Capital reserve
√ Applicable □ N/A
In RMB
| Item | Opening balance | Increase | Decrease | Closing balance |
| Capital premium (Share premium) | 1,241,202,420.08 | 122,677,383.23 | 1,363,879,803.31 | |
| Other capital reserve | 159,402,716.57 | 57,899,279.93 | 50,429,683.77 | 166,872,312.73 |
| Total | 1,400,605,136.65 | 180,576,663.16 | 50,429,683.77 | 1,530,752,116.04 |
Other description, including changes in the current period and reasons for changes:
1) The increase in capital reserve equity premium in the current period is shown in VII.53 of Section 10.
2) Other Capital Reserve Decrease in the current Period is shown in VII.53 of Section 10.
3) Under the 2019 Restricted Stock Incentive Plan, the total share-based payment expenses for thecurrent period are RMB3,637,104.10, of which RMB3,093,594.62 is included in capital reserve (other capitalreserve) and RMB543,509.48 is attributable to minority interests.
4) On January 1, 2021, the Company granted restricted shares to the senior management of itssubsidiaries with its shareholding platform shares, and the total share-based payment expenses for the currentperiod were RMB4,206,150.00, of which the amount included in the capital reserve (other capital reserve)was RMB2,658,286.80 and the amount attributable to minority shareholders' interests was RMB1,547,863.20.
5) Under the 2021 Restricted Stock Incentive Plan, the total share-based payment expenses settled byequity in the current period are RMB8,159,307.91, of which the amount included in capital reserve (othercapital reserve) is RMB7,707,408.90 and the amount attributable to minority shareholders' interests isRMB451,899.01.
6) For the second phase of the 2021 Restricted Stock Incentive Plan, the total share-based paymentexpenses settled by equity in the current period are RMB35,334,996.94, of which the amount included in thecapital reserve (other capital reserve) is RMB35,020,906.86 and the amount attributable to minorityshareholders' interests is RMB314,090.08.
7) On December 31, 2021, Shenzhen Fengye Investment Consulting Co., Ltd. (Limited Partnership), theemployee shareholding platform of Formovie (Chongqing) Innovative Technology Co., Ltd., a subsidiary ofthe Company, deliberated and approved the Resolution on the Equity Grant of Shares of Shenzhen FengyeInvestment Consulting Co., Ltd. (Limited Partnership), and determined that December 31, 2021 would be thegrant date, and the grant price will be RMB1 per share (each share corresponds to the registered capital ofFormovie (Chongqing) RMB1). Shares of RMB1.5505 million were granted to 36 incentive recipients whomet the grant conditions, of which RMB1,000,000 shares were granted at one time, and there are unlockterms for shares of RMB550,500, both will be apportioned during the term of service. The fair value ofChongqing Formovie's equity at the time of the above share payment grant is RMB11.40 per registeredcapital, the total share payment expense settled by equity in the current period is RMB1,172,259.77, theCompany's recognized capital reserve (other capital reserve) is RMB459,408.60, and the amount attributableto minority shareholders' interests is RMB712,851.17.
8) Under the 2022 Restricted Stock Incentive Plan, the total amount of share-based payment expensessettled by equity for the current period is RMB8,134,803.20, of which the amount included in the capitalreserve (other capital reserve) is RMB7,755,676.92 and the amount attributable to minority interests isRMB379,126.28.
9) On July 6, 2022, Shenzhen Fengye Investment Consulting Co., Ltd. (Limited Partnership), theemployee shareholding platform of Formovie (Chongqing) Innovative Technology Co., Ltd., a subsidiary ofthe Company, deliberated and approved the Resolution on the Equity Grant of Shares of Shenzhen FengyeInvestment Consulting Co., Ltd. (Limited Partnership), and determined that July 6, 2022 would be the grantdate, and the grant price will be RMB1 per share (each share corresponds to the registered capital ofFormovie (Chongqing) RMB1). Shares of RMB1.92925 million were granted to 28 incentive recipients whomet the grant conditions, of which RMB200 shares were granted at one time, and there are unlock terms forshares of RMB1.92905 million, both will be apportioned during the term of service. The fair value ofChongqing Formovie's equity at the time of the above share payment grant is RMB11.40 per registered
capital, the total share payment expense settled by equity in the current period is RMB2,451,886.78, of whichthe amount included in the capital reserve (other capital reserve) is RMB960,894.48, and the amountattributable to minority shareholders' interests is RMB1,490,992.30.10) On July 7, 2022, Shenzhen Fengye Investment Consulting Co., Ltd. (Limited Partnership), theemployee shareholding platform of Formovie (Chongqing) Innovative Technology Co., Ltd., a subsidiary ofthe Company, deliberated and approved the Resolution on the Equity Grant of Shares of Shenzhen FengyeInvestment Consulting Co., Ltd. (Limited Partnership), and determined that July 7, 2022 would be the grantdate, and the grant price will be RMB3.42 per share (each share corresponds to the registered capital ofFormovie (Chongqing) RMB1). Shares of RMB1.8005 million were granted to 92 incentive recipients whomet the grant conditions, which will be apportioned during the term of service. The fair value of ChongqingFormovie's equity at the time of the above share payment grant is RMB11.40 per registered capital, the totalshare payment expense settled by equity in the current period is RMB1,738,208.53, the Company'srecognized capital reserve (other capital reserve) is RMB681,203.92, and the amount attributable to minorityshareholders' interests is RMB1,057,004.61.
11) On July 22, 2022, the Company granted restricted shares to the actual controller with itsshareholding platform shares, the grant waiting period was 36 months, July22, 2022 would be the grant dateand the grant price was determined to be RMB4.30 per share, and the total share payment fee settled byequity in the current period was RMB2,442,416.06, of which the amount included in the capital reserve (othercapital reserve) was RMB2,442,416.06.
12) On December 31, 2022, deferred tax assets were reduced by RMB6,596,129.37, capital reserve by$6,393,859.31 and minority interests by $202,270.06 as the fair price of share-based payments settled at theend of the previous period was lower than the fair value at the end of the previous period; deferred tax assetsincreased by RMB3,576,942.54 due to the fair price at the end of the newly granted equity incentive periodbeing higher than the fair price on the grant date, while capital reserve was increased by RMB3,513,342.08,and the amount attributable to minority interests was RMB63,600.46, a total decrease of RMB2,880,517.23and minority interests of RMB138,669.60.
56. Treasury shares
√ Applicable □ N/A
In RMB
| Item | Opening balance | Increase | Decrease | Closing balance |
| Treasury stock | 19,377,297.59 | 19,377,297.59 | ||
| Total | 19,377,297.59 | 19,377,297.59 |
Other description, including changes in the current period and reasons for changes:
On March 18, 2022 and March 29, 2022, the Company held the ninth meeting of the second session ofthe Board of Directors and the first extraordinary General Meeting of Shareholders in 2022 respectively, anddeliberated and approved the Proposal on the Repurchase of the Company's Shares by Centralized BiddingTransaction. As of December 31, 2022, the Company has repurchased a total of 900,000 shares through thetrading system of the Shanghai Stock Exchange by centralized bidding transactions, accounting for 0.1969%of the Company's total share capital of 457,107,538 shares, and the Company has paid a cumulative total ofRMB 19,377,297.59.
57. Other comprehensive income
√ Applicable □ N/A
In RMB
| Item | Opening Balance | Amount incurred in the current period | Closing Balance | |||||
| Amount incurred for current period before tax | Less: Amount previously included in other comprehensive income and transferred to profit or loss for the period | Less: Amount previously included in other comprehensive income and transferred to retained earnings for the period | Less:Income tax expenses | Attributable to owners of the parent company after tax | Attributable to minority shareholders after tax | |||
| I. Other comprehensive income that cannot be reclassified subsequently to profit or loss | -4,900,000.00 | -4,900,000.00 | ||||||
| Where: Changes from remeasurement of defined benefit plans | ||||||||
| Other comprehensive income that cannot be reclassified to profit or loss under the equity method | ||||||||
| Changes in fair value of investments in other equity instruments | -4,900,000.00 | -4,900,000.00 | ||||||
| Changes in fair value of enterprises’ own credit risks | ||||||||
| II. Other comprehensive income that will be reclassified to profit or loss | -11,940,512.60 | 16,517,950.48 | -4,345,807.26 | 22,577,410.01 | -1,713,652.27 | 10,636,897.41 | ||
| Where: Other comprehensive income that will be reclassified to profit or loss under the equity method | -366,814.82 | -17,159,592.50 | -4,345,807.26 | -12,813,785.24 | -13,180,600.06 | |||
| Changes in fair value of oth | ||||||||
| er debt investments | ||||||||
| Amount of financial assets reclassified to other comprehensive income | ||||||||
| Provision for credit impairment of other debt investments | ||||||||
| Reserve for cash flow hedges | ||||||||
| Exchange differences on translation of financial statements denominated in foreign currencies | -11,573,697.78 | 33,677,542.98 | 35,391,195.25 | -1,713,652.27 | 23,817,497.47 | |||
| Total other comprehensive income | -16,840,512.60 | 16,517,950.48 | -4,345,807.26 | 22,577,410.01 | -1,713,652.27 | 5,736,897.41 |
Other description, including adjustments on transferring effective portion of cash flow hedges to amount upon initial recognition of the hedged item:
58. Special reserve
□ Applicable √ N/A
59. Surplus reserve
√ Applicable □ N/A
In RMB
| Item | Opening balance | Increase | Decrease | Closing balance |
| Statutory surplus reserve | 56,265,868.31 | 19,253,913.75 | 75,519,782.06 | |
| Total | 56,265,868.31 | 19,253,913.75 | 75,519,782.06 |
Surplus reserve description, including changes in the current period and reasons for changes:
The Company made provisions for statutory surplus reserves at 10% of the net profits realized by theparent company in the period.
60. Undistributed profits
√ Applicable □ N/A
In RMB
| Item | Current period | Prior period |
| Retained profits at the end of prior period before adjustment | 545,277,188.08 | 357,793,891.96 |
| Total adjusted undistributed profits at the beginning of the period (Add: +; Less: -) | 9,346.56 | |
| Retained profits at the beginning of the period after adjustment | 545,277,188.08 | 357,803,238.52 |
| Add: Net profit attributable to owners of the parent company for the period | 119,440,773.77 | 233,364,344.09 |
| Less: Appropriation to statutory surplus reserve | 19,253,913.75 | 20,988,764.97 |
| Appropriation to discretionary surplus reserve | ||
| Appropriation to general risk reserve | ||
| Declaration of dividends on ordinary shares | 47,539,596.43 | 24,901,629.56 |
| Conversion of ordinary shares’ dividends into share capital | ||
| Retained profits at the end of the period | 597,924,451.67 | 545,277,188.08 |
On May 25, 2022, the Company's 2021 annual General Meeting of Shareholders deliberated and approved theProposal on the Company's <2021 Profit Distribution Plan>, the Company distributed profits in 2021 werebased on the total share capital registered on the record date of the implementation of equity distribution, andall shareholders were distributed a cash dividend of RMB1.05 (tax inclusive) for every 10 shares, totalingRMB47,539,596.43.Details of adjustments to undistributed profits at the beginning of the period:
1.As a result of the retrospective adjustment of the Accounting Standards for Business Enterprises andrelated new regulations, undistributed profits at the beginning of the period were affected by RMB 0.
2. Retained profits at the beginning of the period were affected by RMB 0.00 due to changes in accountingpolicies.
3. Retained profits at the beginning of the period were affected by RMB 0.00 due to the correction ofsignificant accounting errors.
4. Retained profits at the beginning of the period were affected by RMB 0.00 due to changes in the scope ofconsolidation resulting from business combination involving entities under common control.
5. Retained profits at the beginning of the period were affected by RMB 0.00 in total due to otheradjustments.
61. Operating income and operating costs
(1). Description of operating income and operating costs
√ Applicable □ N/A
In RMB
| Item | Amount for the current period | Amount for the prior period | ||
| Income | Cost | Income | Cost | |
| Main business | 2,541,144,635.15 | 1,711,732,842.88 | 2,498,228,401.78 | 1,651,089,557.25 |
| other business | ||||
| Total | 2,541,144,635.15 | 1,711,732,842.88 | 2,498,228,401.78 | 1,651,089,557.25 |
(2). Description of incomes from contracts
□ Applicable √ N/A
Description of incomes from contracts:
□ Applicable √ N/A
(3). Description of performance obligations
□ Applicable √ N/A
(4). Description of allocation to remaining performance obligations
□ Applicable √ N/A
Other information:
1) Revenue generated by contracts with customers is decomposed by type of goods or services
| Item | Amount of the current period | Amount of the prior period | ||
| Income | Cost | Income | Cost | |
| Laser optical engine | 520,281,404.32 | 295,829,647.10 | 288,813,218.37 | 144,202,411.53 |
| Complete laser projector | 1,519,665,232.93 | 1,096,198,242.48 | 1,708,041,893.50 | 1,257,091,802.95 |
| Others | 232,214,129.93 | 182,288,882.58 | 140,751,281.09 | 106,666,550.86 |
| Subtotal | 2,272,160,767.18 | 1,574,316,772.16 | 2,137,606,392.96 | 1,507,960,765.34 |
2) Revenue generated by contracts with customers is decomposed by region of operation
| Item | Amount of the current period | Amount of the prior period | ||
| Income | Cost | Income | Cost | |
| Domestic | 1,851,285,848.51 | 1,334,322,648.71 | 1,957,925,457.54 | 1,410,776,285.94 |
| Overseas | 420,874,918.67 | 239,994,123.45 | 179,680,935.42 | 97,184,479.40 |
| Subtotal | 2,272,160,767.18 | 1,574,316,772.16 | 2,137,606,392.96 | 1,507,960,765.34 |
3) Revenue generated by contracts with customers is decomposed by transfer time of goods or services
| Item | Amount of the current period | Amount of the prior period |
| Revenue recognized at a time point | 2,267,893,396.00 | 2,134,111,664.03 |
| Revenue recognized for a period of time | 4,267,371.18 | 3,494,728.93 |
| Subtotal | 2,272,160,767.18 | 2,137,606,392.96 |
62. Taxes and levies
√ Applicable □ N/A
In RMB
| Item | Amount for the current period | Amount for the prior period |
| City maintenance and construction tax | 4,982,220.93 | 2,999,186.97 |
| Stamp duty | 2,282,867.63 | 3,556,088.99 |
| Education surcharges | 2,272,337.58 | 1,301,614.24 |
| Local education surcharges | 1,512,827.33 | 872,293.37 |
| Others | 61,600.28 | 47,675.22 |
| Total | 11,111,853.75 | 8,776,858.79 |
Other information:
None
63. Selling expenses
√ Applicable □ N/A
In RMB
| Item | Amount for the current period | Amount for the prior period |
| Marketing fees | 155,052,797.28 | 103,844,070.52 |
| Employee benefits | 95,370,627.26 | 81,119,249.58 |
| After-sale repair expenses | 30,700,760.47 | 18,604,120.04 |
| Service fees | 20,184,607.48 | 16,509,511.98 |
| Travel expenses | 3,678,494.64 | 4,223,301.47 |
| Advertising and business promotion expenses | 3,434,485.14 | 5,940,168.90 |
| Business entertainment expenses | 2,055,070.35 | 2,792,164.38 |
| Other expenses | 24,282,116.24 | 19,821,516.44 |
| Total | 334,758,958.86 | 252,854,103.31 |
Other information:
None
64. Administration expenses
√ Applicable □ N/A
In RMB
| Item | Amount for the current period | Amount for the prior period |
| Employee benefits | 76,535,958.03 | 69,177,011.83 |
| Share-based payment expenses | 67,301,038.25 | 63,345,172.32 |
| Service fees | 22,895,043.04 | 24,034,440.59 |
| Depreciation and amortization expenses | 12,347,668.44 | 11,240,594.44 |
| Rent expense | 4,269,462.94 | 6,437,051.98 |
| Travel expenses | 1,028,151.56 | 1,042,924.39 |
| Other expenses | 9,177,454.15 | 12,656,221.72 |
| Total | 193,554,776.41 | 187,933,417.27 |
Other information:
None
65. R&D expenses
√ Applicable □ N/A
In RMB
| Item | Amount for the current period | Amount for the prior period |
| Employee benefits | 169,930,447.89 | 147,610,747.09 |
| Material consumption expenses | 32,490,686.41 | 24,805,748.98 |
| Depreciation and amortization expenses | 16,252,595.10 | 12,249,517.10 |
| Consignment development fee | 12,203,894.80 | 6,877,634.95 |
| Testing expenses | 9,111,031.05 | 8,458,772.06 |
| Service fees | 9,079,992.43 | 10,781,054.58 |
| Rent expense | 3,197,103.71 | 6,954,468.80 |
| Other expenses | 9,842,654.51 | 18,964,280.73 |
| Total | 262,108,405.90 | 236,702,224.29 |
Other information:
None
66. Financial expenses
√ Applicable □ N/A
In RMB
| Item | Amount for the current period | Amount for the prior period |
| Interest expenses | 24,819,665.70 | 17,079,723.61 |
| Less: Interest income | -17,711,130.51 | -17,645,299.09 |
| Exchange profit or loss | -18,635,082.11 | 465,827.17 |
| Bank service charges | 2,363,941.13 | 1,400,128.67 |
| Total | -9,162,605.79 | 1,300,380.36 |
Other information:
None
67. Other income
√ Applicable □ N/A
In RMB
| Item | Amount for the current period | Amount for the prior period |
| Government grants related to assets【Note】 | 2,018,478.03 | 774,722.75 |
| Government grants related to income【Note】 | 29,450,697.47 | 40,616,103.23 |
| Refund of transaction fees for withholding individual income taxes | 364,144.36 | 576,787.99 |
| Additional deduction of input VAT | 2,116,166.02 | 4,179,604.21 |
| Total | 33,949,485.88 | 46,147,218.18 |
Other information:
Government grants recognized in other income in the current period are disclosed in VII.84 of Section X indetails.
68. Investment income
√ Applicable □ N/A
In RMB
| Item | Amount for the current period | Amount for the prior period |
| Long-term equity investment accounted for using the equity method | -3,244,838.52 | 22,856,529.68 |
| Investment income from the disposal of long-term equity investments | -4,700,290.90 | |
| Income from investments in trading financial assets during the holding period | 200,000.00 | |
| Investment income from disposal of held-for-trading financial assets | 12,637,561.73 | 9,785,727.49 |
| Proceeds from debt restructuring | -912,618.35 | |
| Fees for acquiring held-for-trading financial assets | -8,750.05 | |
| Total | 3,979,813.96 | 32,633,507.12 |
Other information:
None
69. Income from net exposure hedges
□ Applicable √ N/A
70. Gains from changes in fair values
√ Applicable □ N/A
In RMB
| Source of gains from changes in fair values | Amount for the current period | Amount for the prior period |
| Held-for-trading financial assets | -3,320,000.00 | 2,200,000.00 |
| Compensation for performance commitment | 37,927,764.00 | |
| Total | -3,320,000.00 | 40,127,764.00 |
Other information:
None
71. Losses of credit impairment
√ Applicable □ N/A
In RMB
| Item | Amount for the current period | Amount for the prior period |
| Impairment losses of notes receivable | -52,530.78 | 81,038.20 |
| Impairment losses of account sreceivable | -6,838,360.54 | -4,920,605.15 |
| Impairment losses of other receivables | 312,921.68 | -481,845.13 |
| Impairment losses of long-term receivables | -1,910,252.02 | -1,440,479.21 |
| Impairment losses of non-current assets due within one year | -1,769,753.84 | -47,400.00 |
| Total | -10,257,975.50 | -6,809,291.29 |
Other information:
None
72. Impairment losses of assets
√ Applicable □ N/A
In RMB
| Item | Amount for the current period | Amount for the prior period |
| I. Bad debt losses | 558,558.71 | -140,603.54 |
| II. Losses of decline in value of inventories and losses of contract performance cost | -47,982,178.29 | -32,806,562.15 |
| III. Impairment losses of long-term equity investments | ||
| IV. Impairment losses of investment properties | ||
| V. Impairment losses of fixed assets | -810,398.00 | -329,652.40 |
| VI. Impairment losses of construction materials | ||
| VII. Impairment losses of construction in progress | ||
| VIII. Impairment losses of productive biological assets | ||
| IX. Impairment losses of oil and gas assets | ||
| X. Impairment losses of intangible assets | -3,669,349.86 | |
| XI. Goodwill impairment losses | ||
| Total | -48,234,017.58 | -36,946,167.95 |
Other information:
None
73. Gains on disposal of assets
√ Applicable □ N/A
In RMB
| Item | Amount for the current period | Amount for the prior period |
| Gains from disposal of fixed assets | 229,000.28 | 2,967,788.29 |
| Total | 229,000.28 | 2,967,788.29 |
Other information:
None
74. Non-operating income
Description of non-operating income
√ Applicable □ N/A
In RMB
| Item | Amount for the current period | Amount for the prior period | Amount included in non-recurring profit or loss for the period |
| Total gains from disposal of non-current assets | |||
| Where: Gains from disposal of fixed assets | |||
| Gains from disposal of intangible assets | |||
| Gains from exchange of non-monetary assets | |||
| Donation receipts | |||
| Government grants | 16,000,000.00 | 51,500,000.00 | 16,000,000.00 |
| Amounts not required for payment | 328,200.61 | 102,168.27 | 328,200.61 |
| Indemnity | 240,500.00 | 916,875.85 | 240,500.00 |
| Others | 21,147.05 | 109,117.96 | 21,147.05 |
| Total | 16,589,847.66 | 52,628,162.08 | 16,589,847.66 |
Other information:
√ Applicable □ N/A
The details of government subsidies included in non-operating income in the current period are described inVII.84 of Section 10.
75. Non-operating expenses
√ Applicable □ N/A
In RMB
| Item | Amount for the current period | Amount for the prior period | Amount included in non-recurring profit or loss for the period |
| Losses from damage and retirement of non-current assets | 1,197,282.81 | 1,530,253.26 | 1,197,282.81 |
| External donations | 1,089,957.64 | 1,089,957.64 | |
| Penalties and overdue fines | 155,485.93 | 27,996.72 | 155,485.93 |
| Others | 23,819.28 | 234,834.67 | 23,819.28 |
| Total | 2,466,545.66 | 1,793,084.65 | 2,466,545.66 |
Other information:
None
76. Income tax expense
(1). Statement of income tax expense
√ Applicable □ N/A
In RMB
| Item | Amount for the current period | Amount for the prior period |
| Income tax expense in the current period | 8,699,918.08 | 44,120,143.66 |
| Deferred income tax expenses | -12,028,703.56 | 22,872,795.49 |
| Total | -3,328,785.48 | 66,992,939.15 |
(2). Reconciliation of income tax expenses to the accounting profit
√ Applicable □ N/A
In RMB
| Item | Amount for the current period |
| Total profit | 27,510,012.18 |
| Income tax expense calculated based on statutory/applicable tax rate | 4,126,501.82 |
| Effect of different tax rates of subsidiaries operating in other jurisdictions | -12,562,905.54 |
| Effect of income tax for the period before adjustment | -459,433.29 |
| Effect of non-taxable income | 1,095,827.73 |
| Effect of non-deductible cost, expense and loss | 1,118,990.58 |
| Effect of utilizing deductible loss not recognized for deferred tax assets for prior period | -24,167,260.40 |
| Effect of deductible temporary difference or deductible loss not recognized for deferred tax assets for the current period | 43,019,125.21 |
| Change in the balance of opening deferred tax assets caused by tax rate adjustment | |
| Effect of additional deduction of R&D expenses | -22,852,386.25 |
| Impact of the disability placement super deduction | -5,247.00 |
| Impact of share-based payments | 7,358,001.66 |
| Income tax expenses | -3,328,785.48 |
Other information:
□ Applicable √ N/A
77. Other comprehensive income
√ Applicable □ N/A
Other comprehensive income net of tax is disclosed in VII.57 of Section X in detail.
78. Items in cash flow statement
(1). Other cash receipts relating to operating activities
√ Applicable □ N/A
In RMB
| Item | Amount for the current period | Amount for the prior period |
| Interest income | 16,993,587.49 | 16,675,246.67 |
| Government grants | 38,614,415.12 | 79,816,846.91 |
| Recovery of security deposits | 77,288,005.93 | 68,674,714.21 |
| Non-operating income | 261,637.05 | 1,025,993.81 |
| Other transaction accounts | 20,338,471.73 | 18,757,498.53 |
| Total | 153,496,117.32 | 184,950,300.13 |
Description of other cash receipts relating to operating activities:
None
(2). Other cash payments relating to operating activities
√ Applicable □ N/A
In RMB
| Item | Amount for the current period | Amount for the prior period |
| Administrative expenses, selling expenses, and R&D expenses paid in cash | 307,076,015.18 | 247,909,819.98 |
| Non-operating expenses | 168,267.66 | 57,390.87 |
| Payment of security deposits | 115,495,390.45 | 80,571,144.80 |
| Frozen capital | 1,111,255.79 | |
| Service charges | 2,363,931.13 | 1,400,128.67 |
| Other transaction accounts | 2,067,145.29 | 23,458,519.21 |
| Total | 428,282,005.50 | 353,397,003.53 |
Description of other cash payments relating to operating activities:
None
(3). Other cash receipts relating to investing activities
√ Applicable □ N/A
In RMB
| Item | Amount for the current period | Amount for the prior period |
| Compensation for the performance of associated enterprises | 8,004,240.00 | |
| Total | 8,004,240.00 |
Description of other cash payments relating to operating activities:
None
(4). Other cash payments relating to investing activities
□ Applicable √ N/A
(5). Other cash receipts relating to financing activities
□ Applicable √ N/A
(6). (6). Other cash payments relating to financing activities
√ Applicable □ N/A
In RMB
| Item | Amount for the current period | Amount for the prior period |
| Actual lease payment | 30,266,176.69 | 27,871,604.50 |
| Repayment of shareholder loans | 19,399,427.00 | |
| Share repurchase | 19,377,297.59 | |
| Total | 49,643,474.28 | 47,271,031.50 |
Description of other cash payments relating to financing activities:
None
79. Supplementary information to the cash flow statement
(1). Supplementary information to the cash flow statement
√ Applicable □ N/A
In RMB
| Supplemental information | Amount for the current period | Amount for the prior period |
| 1. Reconciliation of net profit to cash flow from operating activities: | ||
| Net profit | 30,838,797.66 | 221,534,817.14 |
| Add: Provision for impairment of assets | 48,234,017.58 | 36,946,167.95 |
| Losses of credit impairment | 10,257,975.50 | 6,809,291.29 |
| Depreciation of fixed assets, depletion of oil and gas assets, depreciation of productive biological assets | 123,188,901.13 | 108,667,338.81 |
| Amortization of right-of-use assets | 27,109,595.46 | 20,139,276.53 |
| Amortization of intangible assets | 3,472,505.47 | 4,446,633.19 |
| Amortization of long-term prepaid expenses | 7,015,722.76 | 7,417,067.12 |
| Losses on disposal of fixed assets, intangible assets and other long-term assets (gains are indicated by “－”) | -229,000.28 | -2,967,788.29 |
| Losses on retirement of fixed assets (gains are indicated by “－”) | 1,197,282.81 | 1,703,522.36 |
| Losses on changes in fair values (gains are indicated by “－”) | 3,320,000.00 | -40,127,764.00 |
| Financial expenses (income is indicated by “－”) | 6,184,583.59 | 18,410,475.23 |
| Investment losses (income is indicated by “－”) | -3,979,813.96 | -32,633,507.12 |
| Decrease in deferred tax assets (increase is indicated by “-”) | -12,028,703.56 | 22,549,119.12 |
| Increase in deferred tax liabilities (decrease is indicated by “-”) | ||
| Decrease in inventories (increase is indicated by “－”) | -186,369,538.60 | -490,401,076.50 |
| Decrease in receivables from operating activities (increase is indicated by “－”) | 123,322,744.93 | -187,600,139.59 |
| Increase in payables from operating activities (decrease is indicated by “ -?) | -82,663,652.87 | 289,551,990.78 |
| Others | 78,479,298.07 | 73,891,802.82 |
| Net cash flow from operating activities | 177,350,715.69 | 58,337,226.84 |
| 2. Significant investing and financing activities that do not involve cash receipts and payments: | ||
| Conversion of debt into capital | ||
| Convertible corporate bonds due within one year | ||
| Fixed assets acquired under finance leases | ||
| 3. Net changes in cash and cash equivalents: | ||
| Closing balance of cash | 1,254,582,403.12 | 891,195,166.73 |
| Less: Opening balance of cash | 891,195,166.73 | 983,525,089.44 |
| Add: Closing balance of cash equivalents | ||
| Less: Opening balance of cash equivalents | ||
| Net increase in cash and cash equivalents | 363,387,236.39 | -92,329,922.71 |
(2). Net cash paid to acquire subsidiaries for the current period
□ Applicable √ N/A
(3). Net cash receipts from disposal of subsidiaries for the current period
□ Applicable √ N/A
(4). Composition of cash and cash equivalents
√ Applicable □ N/A
In RMB
| Item | Closing balance | Opening balance |
| I. Cash | 1,254,582,403.12 | 891,195,166.73 |
| Where: Cash on hand | 5,479.42 | 5,680.24 |
| Bank deposits that can be paid at anytime | 1,241,921,379.19 | 883,906,202.81 |
| Other monetary funds that can be paid at anytime | 12,655,544.51 | 7,283,283.68 |
| Deposits in the central bank that can be used for payments | ||
| Deposits made with other banks | ||
| Placements with banks | ||
| II. Cash equivalents | ||
| Where: Investments in debt securities due within three months | ||
| III. Closing balance of cash and cash equivalents | 1,254,582,403.12 | 891,195,166.73 |
| Where: Restricted cash and cash equivalents of the parent company or subsidiaries within the Group |
Other information:
□ Applicable √ N/A
80. Notes to items in the statement of changes in owners ’ equity
Describe matters such as the names and the adjusted amounts of the items included in “others” in respectof adjustments to the closing balances of the prior year:
□ Applicable √ N/A
81. Assets with limited ownership or use right
√ Applicable □ N/A
In RMB
| Item | Closing balance of carrying amount | Reason |
| Other monetary funds | 60,141,839.19 | Margins |
| Bank deposits | 40,000,000.00 | Term deposits |
| Bank deposits | 1,111,250.50 | Accounts with restricted payments |
| Bank deposits | 46,710.53 | Interests provided |
| Bank deposits | 5.29 | Accounts not handling for a long time |
| Intangible assets | 281,035,499.82 | Mortgage collateral |
| Total | 382,335,305.33 |
Other information:
None
82. Foreign currency monetary items
(1). Foreign currency monetary items
√ Applicable □ N/A
In RMB
| Item | Closing balance of foreign currency | Exchange rate | Closing balance of RMB equivalent |
| Cash and bank balances | 398,107,724.32 | ||
| Where: USD | 56,311,077.58 | 6.9646 | 392,184,130.91 |
| ECU | 83,555.33 | 7.4229 | 620,222.70 |
| HKD | 5,885,221.72 | 0.8933 | 5,257,107.54 |
| AUD | 1,092.73 | 4.7138 | 5,150.88 |
| CAD | 1,658.12 | 5.1385 | 8,520.28 |
| GBP | 576.18 | 8.3941 | 4,836.52 |
| VND | 94,086,396.00 | 0.0003 | 27,755.49 |
| Accounts receivable | 74,312,826.49 | ||
| Where: USD | 10,670,078.18 | 6.9646 | 74,312,826.49 |
| Accounts payable | 63,894,296.41 | ||
| Where: USD | 9,164,594.97 | 6.9646 | 63,827,738.10 |
| JPY | 1,271,215.68 | 0.0524 | 66,558.31 |
Other information:
None
(2). Description of overseas operating entities, including significant overseas operating entities, ofwhich the major operation place, functional currency and choosing basis as well as the reason forchange of functional currency should be disclosed
√ Applicable □ N/A
| Item | Major overseas operation place | Functional currency | Basis of choice |
| Appotronics Hong Kong Limited | Hong Kong | USD | Common currency |
| Appotronics USA, Inc. | USA | USD | Local currency |
| JoveAI Limited | Cayman Islands | USD | Common currency |
| JoveAI Innovation,Inc. | USA | USD | Local currency |
| Formovie Technology TECHNOLOGY INC | USA | USD | Local currency |
| Formovie Technology LIMITED | Hong Kong | USD | Common currency |
| JoveAI Asia Company Limited | Vietnam | VND | Local currency |
| WEMAX LLC | USA | USD | Local currency |
| HONGKONG ORANGE JUICE ENERGY TECHNOLOGY CO., LIMITED | Hong Kong | USD | Common currency |
| Wemax Inc | USA | USD | Local currency |
| Appotronics International Limited | Hong Kong | USD | Common currency |
83. Hedge
□ Applicable √ N/A
84. Government grants
(1). Basic information of government grants
√ Applicable □ N/A
In RMB
| Category | Amount | Item presented | Amount recognized in current profit or loss |
| Asset-related government subsidies | 7,000,000.00 | Other income | 2,018,478.03 |
| Government grants related to income and used for compensation of the Company’s relevant costs or losses in subsequent periods | 2,562,700.00 | Other income | 9,159,781.79 |
| Government grants related to income and used for compensation of the Company’s relevant costs or losses that have been incurred | 16,000,000.00 | Non-operating income | 16,000,000.00 |
| Government grants related to income and used for compensation of the Company’srelevant costs or losses that have been incurred | 20,290,915.68 | Other income | 20,290,915.68 |
| Fiscal discounts | 70,200.00 | Financial cost | 70,200.00 |
Note: The amount refers to government grants actually received in the current period.
1) Government grants related to assets
| Item | Opening deferred income | Increase | Amortizati on | Closing deferred income | Amortizati on item presented | Description |
| 8K Ultra High Definition Laser Display Technolog y Engineerin g Research Center | 924,464.60 | 3,000,000.00 | 1,018,478.04 | 2,905,986.56 | Other income | Project Contract of 8K Ultra High Definition Laser Display Technology Engineering Research Center (XMHT20190101023), Development and Reform Commission of Shenzhen |
| Office renovation subsidies of Formovie (Chongqing) | 4,000,000.00 | 999,999.99 | 3,000,000.01 | Other income | Chongqing Liangjiang New Area Management Committee Investment Agreement （LJCY-2020-023一TZ） | |
| Subtotal | 924,464.60 | 7,000,000.00 | 2,018,478.03 | 5,905,986.57 |
2) Government grants related to income and used for compensation of the Company’s relevantcosts or losses in subsequent periods
| Item | Opening deferred income | Increase | Carrying forward | Closing deferred income | Carrying forward item presented | Description |
| Trichromatic Laser Display Complete Equipment Production Demonstration Line | 8,679,443.32 | 1,596,800.00 | 8,416,642.17 | 1,859,601.15 | Other income | Notice on the Establishment of 2018 Annual Projects for Strategic Advanced Electronic Materials in the National Key Research and Development Programs (Guo Ke Gao Fa Ji Zi [2018] No. 41), High Technology Research and Development Center, Ministry of Science and Technology |
| Key Technology of Trichromatic Laser Display Complete Equipment Industrialization | 552,500.00 | 552,500.00 | Other income | Task Statements for Research and Development Program in Key Fields of Guangdong Province (2019B010926001), Finance Bureau of Shenzhen | ||
| R&D of key technologies for ultra high definition micro laser projector optical engine based on light- emitting ceramic devices | 663,074.16 | 663,074.16 | Other income | Project Application for Technology Breakthrough under Shenzhen Innovation and Entrepreneurship Plan(20201026191136001),the Science,Technology, and Innovation Commission of Shenzhen | ||
| Research on 3-color laser light source and LCoS optical | 413,400.00 | 80,065.46 | 333,334.54 | Other income | High-tech Research and Development Center of the Ministry of Science and Technology Notice on the 2021 Annual Project Approval of the |
| engine | New Display and Strategic Electronic Materials Key Project of the National Key R&D Plan (Guo Ke Gao Fa Ji [2021] No. 53) | |||||
| Subtotal | 9,342,517.48 | 2,562,700.00 | 9,159,781.79 | 2,745,435.69 |
3) Government grants related to income and used for compensation of the Company’s relevant costs or lossesthat have been incurred
| Item | Amount | Item presented | Description |
| Liangjiang Finance Bureau Project Support Fund - settled for one year | 16,000,000.00 | Non-operating income | Investment Agreement with Chongqing Liangjiang New Area Administration Commission（LJCY-2020-023一TZ） |
| Refunds of value-added taxes | 7,309,400.56 | Other income | Ministry of Finance State Administration of Taxation Notice on VAT Policy for Software Products (Cai Shui [2011] No.100) |
| Propaganda Department of Beijing Shunyi District Committee of the Communist Party of China-Cultural Industry Subsidy | 2,485,400.00 | Other income | Announcement of the Publicity Department of the Shunyi District Party Committee on the Open Call for Special Fund Support Projects for the Development of Cultural Industry in Shunyi District in 2021 |
| Shenzhen Bureau of Industry and Information Technology Industrial Enterprises Expansion Capacity Incentive Project | 2,200,000.00 | Other income | Shenzhen Bureau of Industry and Information Technology Several Measures on Promoting the High-quality Development of Manufacturing Industry and Unswervingly Building a Strong Manufacturing City (Shen Fu Gui [2021] No.1), Support for Industrial Enterprises to Expand Production and Increase Efficiency by Shenzhen Bureau of Industry and Information Technology Program Operating Procedures (Shen Gong Xin Gui [2022] No.2) |
| Special fund for the development of cultural industry of Shenzhen Municipal Bureau of Culture, Radio, Television, Tourism and Sports | 1,480,000.00 | Other income | Municipal Bureau of Culture, Radio, Television, Tourism and Sports Notice on Announcing the Second Batch of Projects Proposed to be Funded by the Special Fund for the Development of the Municipal Cultural Industry in 2021 |
| Shenzhen Nanshan District Science and Technology Innovation Bureau Enterprise R&D Investment Support Program | 1,000,000.00 | Other income | Nanshan District Independent Innovation Industry Development Special Fund Leading Group Office Nanshan District Independent Innovation Industry Development Special Fund 2022 Seventh Meeting to Review the Funding List Publicity |
| The “Fourth Above” cultural industry on the enterprise revenue growth reward | 1,000,000.00 | Other income | Nanshan District Special Fund for Promoting High-quality Industrial Development Leading Group Office Nanshan District Special Fund for Promoting High-quality Industrial Development 2022 Ninth Meeting to Review the Funding List Publicity |
| Job stabilization subsidy | 970,883.08 | Other income |
| Shenzhen Nanshan District Science and Technology Innovation Bureau Nanshan Park 2022 Shenzhen High-tech Zone Development Special Plan Science and Technology Enterprise Cultivation Project | 500,000.00 | Other income | Nanshan District Independent Innovation Industry Development Special Fund Leading Group Office Nanshan District Independent Innovation Industry Development Special Fund 2022 Ninth Meeting to Review the Funding List Publicity |
| Shenzhen Municipal Administration for Market Supervision promoting high-quality economic development in 2022 | 400,000.00 | Other income | Guangdong Provincial Administration for Market Regulation Allocation Plan of Special Funds for Promoting High-quality Economic Development in 2022 (Third Batch) |
| Talent housing subsidies | 370,000.00 | Other income | Shenzhen Nanshan District Housing and Construction Bureau Nanshan District 2022 Talent Housing Subsidies Agreement |
| Beijing Municipal Office for the Supervision and Administration of State-owned Cultural Assets - Investment and Loan Award Fund | 329,529.38 | Other income | Notice on Centralized Review of Beijing Cultural Industry "Investment and Loan Award" Support Fund Application Projects |
| Shenzhen Nanshan District Science and Technology Innovation Bureau High-tech Zone Development Special Plan - Science and Technology Enterprise Cultivation Project | 250,000.00 | Other income | Nanshan District Independent Innovation Industry Development Special Fund Leading Group Office Nanshan District Independent Innovation Industry Development Special Fund 2022 Ninth Meeting to Review the Funding List Publicity |
| Maternity allowance | 242,400.99 | Other income | |
| Shenzhen Nanshan District Science and Technology Innovation Bureau Enterprise R&D Investment Support Program & Science and Technology Award Support Program | 200,000.00 | Other income | Nanshan District Science and Technology Innovation Bureau Notice on Application for 2022 Nanshan District Science and Technology Award Support Program Project |
| In the first half of 2022, the output value exceeded 100 million subsidies | 200,000.00 | Other income | Chongqing Liangjiang New Area Management Committee <Liangjiang New Area Stabilizes the Economic Market 20 Policy Measures> Yuliangjiang Guanfa [2022] No. 16 Yuliangjiang Guanfa [2022] No. 16 |
| Other | 1,353,301.67 | Other income | |
| Subtotal | 36,290,915.68 |
4) Fiscal discount
Financial discounts directly received by the Company
| Item | Opening deferred income | Increase | Amortization | Closing deferred income | Amortizati on Item presented | Description |
| Fiscal discount | 70,200.00 | 70,200.00 | Financial cost | |||
| Subtotal | 70,200.00 | 70,200.00 |
(2). Refund of government grants
□ Applicable √ N/A
Other information:
None
85. Others
□ Applicable √ N/A
VIII. Changes in scope of consolidation
1. Business combination not involving enterprises under common control
□ Applicable √ N/A
2. Business combination involving enterprises under common control
□ Applicable √ N/A
3. Counter purchase
□ Applicable √ N/A
4. Disposal of subsidiaries
Single disposal of investments in subsidiaries, i.e. the loss of control
□ Applicable √ N/A
Other information:
□ Applicable √ N/A
5. Changes in scope of consolidation for other reasons
Description of changes in the scope of consolidation for other reasons (e.g., new subsidiary establishment, subsidiary liquidation, etc.) and the relevant information:
√ Applicable □ N/A
1. Increased scope of combination
| Company | Method of obtaining equity | Time point of obtaining equity | Capital contribution | Proportion of contribution |
| Weiwoqi Trading Co.,Ltd | Business combinations that are not under common control | 2022.06.15 | 33.31% | |
| Hongkong Orange Juice Energy Technology Co.,Limited | Found | 2022.03.15 | 33.31% | |
| Wemax INC | Found | 2022.03.19 | 33.31% | |
| Yaoyouguang (Chongqing) Technology Co., Ltd. | Found | 2022.10.28 | 39.19% | |
| Appotronics International Limited | Found | 2022.04.26 | 100.00% | |
| Appotronics Intelligent Manufacturing (Shenzhen) Co., Ltd | Found | 2022.08.17 | 100.00% |
6. Others
□ Applicable √ N/A
IX. Equity in other entities
1. Equity in subsidiaries
(1). Composition of enterprise group
√ Applicable □ N/A
| Subsidiaries | Principal operation place | Registration place | Business nature | Proportion of shareholding (%) | Acquisition method | |
| Direct | Indirect | |||||
| Shenzhen Appotronics Laser Display Technology Co., Ltd. | Shenzhen | Shenzhen | R&D and sales of laser display products | 100.00 | Business combination involving enterprises Under common control | |
| Appotronics Technology (Changzhou) Co., Ltd. | Changzhou | Changzhou | Technology research and development of projection equipment, screen and Electronic computer | 100.00 | Establishment | |
| Shenzhen Appotronics Software Technology Co., Ltd. | Shenzhen | Shenzhen | Technology development and sales of computer software and hardware | 100.00 | Establishment | |
| Shenzhen Appotronics Display Device Co., Ltd. | Shenzhen | Shenzhen | Technology development, sales, and technology services for Display products; import and export business | 100.00 | Establishment | |
| WEMAX LLC | USA | USA | Sales of laser equipment | 100.00 | Establishment | |
| Shenzhen Appotronics Xiaoming Technology Co., Ltd. | Shenzhen | Shenzhen | Development, consultation and transfer of laser display technology | 100.00 | Establishment | |
| Shenzhen Appotronics Home Line Technology Co., Ltd. | Shenzhen | Shenzhen | Software development related to Semiconductor optoelectronic products | 100.00 | Establishment | |
| Shenzhen Appotronics Laser Technology Co., Ltd. | Shenzhen | Shenzhen | Software development for Semiconductor optoelectronic devices | 100.00 | Establishment | |
| Tianjin Bonian Film Partnership (LP) | Tianjin | Tianjin | No specific business conducted | 99.00 | 1.00 | Business combination not involving enterprises under Common control |
| Beijing Dongfang Guangfeng Technology Co., Ltd. | Beijing | Beijing | Technology promotion; computer systems, application software services | 59.00 | Establishment | |
| Qingda Appotronics(Xiamen)Technology Co.,Ltd. | Shenzhen | Xiamen | Information technology consulting services | 51.00 | Establishment | |
| Formovie (Chongqing) Innovative Technology Co., Ltd.. | Chongqing | Chongqing | Technology and software development | 39.19 | Establishment | |
| Fengmi (Beijing) Technology Co., Ltd. | Beijing | Beijing | Technology and software development | 39.19 | Establishment | |
| Chongqing Guangbo Ecommerce Co., Ltd. | Chongqing | Chongqing | No specific business conducted | 39.19 | Establishment | |
| Chongqing Ewei Ecommerce Co., Ltd | Chongqing | Chongqing | No specific business conducted | 39.19 | Establishment | |
| Shenzhen Orange Juice Energy Technology Co., Ltd.. | Shenzhen | Shenzhen | Technology and software development | 33.31 | Establishment | |
| Hongkong Orange Juice Energy Technology Co.,Limited | Hong Kong | Hong Kong | Engaging in import and export business | 33.31 | Establishment | |
| Wemax INC | USA | USA | Engaging in import and export business | 33.31 | Establishment | |
| Weiwoqi Trading Co.,Ltd | Chongqing | Shenzhen | No specific business conducted | 33.31 | Business combination involving enterprises Under common control | |
| Yaoyouguang (Chongqing) Technology Co., Ltd. | Chongqing | Chongqing | No specific business conducted | 39.19 | Establishment | |
| Formovie Limited | Hong Kong | Hong Kong | No specific business conducted | 39.19 | Business combination involving enterprises Under common control | |
| FORMOVIE TECHNOLOGY INC | USA | USA | No specific business conducted | 39.19 | Establishment | |
| CINEAPPO Laser Cinema Technology (Beijing) Co., Ltd. | Beijing | Beijing | Research and development, production,technology services, sales and lease of laser cinema projection equipment | 24.84 | 38.36 | Business combination involving enterprises under common control |
| Appotronics Hong Kong Limited | HongKong | HongKong | Production, research, and development of semiconductor optoelectronic products, sales and consulting, investment and video content value-added services | 100.00 | Establishment | |
| Appotronics USA, Inc. | USA | USA | R&D,manufacture and sales of semiconductor optoelectronic products | 100.00 | Business combination involving enterprises under common control | |
| JoveAI Limited | Cayman Islands | Cayman Islands | No specific business conducted | 64.29 | Establishment | |
| JoveAI Innovation,Inc. | USA | USA | R&D of laser display software system | 64.29 | Establishment | |
| JoveAI Asia Company Limited | Vietnam | Vietnam | Technology research and development of projection equipment, screen and electronic computer | 64.29 | Establishment | |
| Appotronics International Limited | Hong Kong | Hong Kong | No specific business conducted | 100.00 | Establishment | |
| Appotronics Intelligent Manufacturing (Shenzhen) Co., Ltd | Shenzhen | Shenzhen | No specific business conducted | 100.00 | Establishment |
Description of the difference between the proportion of shareholding and the proportion of voting rights in a subsidiary:
None
Basis for holding half or less of the voting rights but still controlling the investee entity, and holding more than half of the voting rights but not controlling the investeeentity:
Fengmi (Beijing) Technology Co., Ltd., FORMOVIE TECHNOLOGY INC, Formovie Limited, Chongqing Ewei Ecommerce Co., Ltd., Chongqing GuangboEcommerce Co., Ltd. And Youguang (Chongqing) Technology Co., Ltd. are wholly-owned subsidiaries of Formovie (Chongqing) Innovative Technology Co., Ltd.,Hongkong Orange Juice Energy Technology Co., Limited and Wemax INC and Shenzhen Weiwoqi Trading Co., Ltd. are wholly-owned subsidiaries of Shenzhen OrangeJuice Energy Technology Co., Ltd., a holding subsidiary of Formovie (Chongqing) Innovation Technology Co., Ltd. The Company and its concerted actor, ShenzhenFengye Investment Consulting CO., Ltd. (Limited Partnership), hold a total of 53.6250% of the voting rights of Formovie (Chongqing) Innovation Technology Co., Ltd.,and exercise the voting rights according to the Company's opinions, and the voting rights enjoyed by it are sufficient to have a significant impact on the resolution of theshareholders' meeting of Formovie (Chongqing) Innovation Technology Co., Ltd., and the company is the controlling shareholder of Formovie (Chongqing) InnovationTechnology Co., Ltd.
Basis for controls over significant structured entities included in consolidation scope:
NoneBasis to determine the company acts as the agent or the principal:
NoneOther information:
None
(2). Significant non-wholly subsidiaries
√ Applicable □ N/A
In RMB
| Subsidiaries | Shareholding ratio by minority shareholders | Profit or loss attributable to Minority shareholders for the current period | Dividends declared for distribution to minority shareholders in the current period | Closing balance of minority interests |
| Formovie (Chongqing) Innovative Technology Co., Ltd. | 60.81% | -89,903,579.23 | -51,779,781.03 | |
| CINEAPPO Laser Cinema Technology (Beijing) Co., Ltd. | 36.80% | 4,244,718.72 | 7,360,000.00 | 157,774,797.34 |
Description of the difference between the proportion of shareholding by minority shareholders and themproportion of voting rights in a subsidiary:
□ Applicable √ N/A
Other information:
□ Applicable √ N/A
(3). Significant financial information of significant non-wholly subsidiaries
√ Applicable □ N/A
In RMB
| Subsidiaries | Closing balance | Opening balance | ||||||||||
| Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |
| Formovie (Chongqing) Innovative Technology Co., Ltd. | 870,880,711.77 | 71,218,934.56 | 942,099,646.33 | 784,282,176.85 | 237,089,010.02 | 1,021,371,186.87 | 923,415,138.40 | 42,178,494.73 | 965,593,633.13 | 735,633,264.62 | 172,919,867.39 | 908,553,132.01 |
| CINEAPPO Laser Cinema Technology (Beijing) Co., Ltd | 232,475,415.87 | 618,725,733.60 | 851,201,149.47 | 365,867,128.59 | 56,598,158.55 | 422,465,287.14 | 231,461,535.13 | 738,260,940.26 | 969,722,475.39 | 377,533,503.17 | 161,248,165.77 | 538,781,668.94 |
| Subsidiaries | Amount for the current period | Amount for the prior period | ||||||
| Operating income | Net profit | Total comprehensive income | Cash flow from operating activities | Operating income | Net profit | Total comprehensive income | Cash flow from operating activities | |
| (Chongqing) Innovative Technology Co., Ltd. | 1,159,333,169.54 | -142,170,472.45 | -142,961,861.45 | 23,462,596.37 | 1,138,441,956.97 | -81,383,767.63 | -81,383,767.63 | -171,445,331.62 |
| CINEAPPO Technology (Beijing) Co., Ltd. Laser Cinema | 336,829,075.51 | 11,534,561.75 | 11,534,561.75 | 74,757,387.05 | 477,001,950.71 | 93,833,386.89 | 93,833,386.89 | 101,026,487.30 |
Other information:
None
(4). Significant limitations on use of the group assets and pay off the group debts
□ Applicable √ N/A
(5). Financial or other support provided to structured entities included in consolidated financial statements
□ Applicable √ N/A
Other information:
□ Applicable √ N/A
2. Changes of shares of owners ’ equity in subsidiaries but continue to remain control over transactions of subsidiaries
□ Applicable √ N/A
3. Equity in joint ventures or associates
√ Applicable □ N/A
(1). Significant joint ventures or associates
√ Applicable □ N/A
In RMB
| Joint ventures or associates | Principal operation place | Registration place | Business nature | Proportion of shareholding (%) | Accounting treatment method for investments in joint ventures or associates | |
| Direct | Indirect | |||||
| GDC Technology Limited (BVI) | Asia and North America | British Virgin Islands | R&D, production, and sales of digital cinema servers and cinema management system | 44.00 | Accounting for under equity method | |
Description of the difference between the proportion of shareholding and the proportion of voting rights in joint ventures or associates:
NoneBasis that the company owns less than 20% voting rights but may exercise major impact, or that the company owns 20% or over voting rights but does not has majorimpact:
None
(2). Major financial information of significant joint ventures
□ Applicable √ N/A
(3). Major financial information of significant associates
√ Applicable □ N/A
In RMB
| Closing balance/Amount for the current period | Opening balance/Amount for the prior period | |
| GDC Technology Limited (BVI) | GDC Technology Limited (BVI) | |
| Current assets | 552,730,874.23 | 648,413,809.69 |
| Non-current assets | 52,568,431.68 | 53,380,720.39 |
| Total assets | 605,299,305.91 | 701,794,530.08 |
| Current liabilities | 240,966,036.37 | 458,123,239.33 |
| Non-current liabilities | 172,710,379.48 | 25,008,058.43 |
| Total liabilities | 413,676,415.85 | 483,131,297.76 |
| Minority interests | ||
| Interests attributable to shareholders of the parent company | 191,622,890.06 | 218,663,232.32 |
| Share of net assets calculated based on shareholding ratio | 84,314,071.63 | 96,211,822.22 |
| Adjustment | ||
| --Goodwill | 77,772,341.43 | 77,772,341.43 |
| --Unrealized profits for insider transactions | -797,530.34 | -1,251,565.03 |
| --Others | ||
| Carrying amount of equity investments in associates | 162,394,917.57 | 166,676,657.87 |
| Fair values of equity investments in associates having publicly quoted prices | ||
| Operating income | 273,268,222.10 | 299,867,319.42 |
| Net profit | -14,340,503.11 | 55,000,205.18 |
| Net profit of discontinued operations | ||
| Other comprehensive income | -30,900,188.42 | 1,876,677.39 |
| Total comprehensive income | -45,240,691.53 | 56,876,882.57 |
| Dividends received from associates in the current year |
Other informationNone
(4). Summary financial information of insignificant joint ventures and associates
√ Applicable □ N/A
In RMB
| Closing balance/Amount for the current period | Opening balance/Amount for the prior period | |
| Joint ventures: | ||
| Total carrying amount of investments | ||
| Total amounts calculated based on shareholding proportions | ||
| --Net profit | ||
| --Other comprehensive income | ||
| --Total comprehensive income | ||
| Associates: | ||
| Total carrying amount of investments | 126,924,427.40 | |
| Total amounts calculated based on shareholding proportions | ||
| --Net profit | -1,207,240.33 | 1,632,357.09 |
| --Other comprehensive income | -3,563,510.66 | -3,043,782.40 |
| --Total comprehensive income | -4,770,750.99 | -1,411,425.31 |
Other information
None
(5). Descriptions of significant limitations over the ability of joint ventures or associates to transfer funds to the Company
□ Applicable √ N/A
(6). Excessive loss of joint ventures or associates
□ Applicable √ N/A
(7). Unrecognized commitment relating to investments in joint ventures
□ Applicable √ N/A
(8). Contingent liabilities relating to investments in joint ventures or associates
□ Applicable √ N/A
4. Significant joint operations
□ Applicable √ N/A
5. Interests in structured entities that are not included in consolidated financial statementsDescription of structured entities that are not included in consolidated financial statements:
□ Applicable √ N/A
6. Others
□ Applicable √ N/A
X. Risks associated with financial instruments
√ Applicable □ N/A
The Company’s risk management objectives are to achieve a proper balance between risks and yield, minimize the adverse impacts of risks on the Company’soperation performance, and maximize the benefits of the shareholders and other stakeholders. Based on these risk management objectives, the Company’s basic riskmanagement strategy is to identify and analyze its exposure to various risks, establish an appropriate minimum tolerance to risk, implement risk management, and monitorregularly and effectively these exposures to ensure the risks are monitored at a certain level.The Company is exposed to various risks associated with financial instruments in its daily routines, primarily including credit risk, liquidity risk and market risk. Themanagement has reviewed and approved policies to manage these risks, summarized as below.(I) Credit riskCredit risk refers to the risk that a party of the financial instrument will default on its obligations resulting in financial loss to the counterparty.
1. Management of credit risk
(1) Evaluation of credit risk
The Company assesses at each balance sheet date whether the credit risk of the underlying financial instruments has increased significantly since initial recognition. Indetermining whether the credit risk has increased significantly since initial recognition, the Company considers reasonable and supportable information that is availablewithout undue cost or effort, including quantitative and qualitative analysis based on historical data, ranking of external credit risks and forward-looking information. TheCompany compares the risk of adefault occurring on a financial instrument as at the balance sheet date with the risk of a default occurring on the financial instrument as atthe date of initial recognition based on individual financial instrument or a group of financial instruments with similar credit risk characteristics, to determine the change ofthe risk of a default occurring on a financial instrument over the expected life.
The Company considers the credit risk of financial instruments has increased significantly when one
or more of the following quantitative and qualitative criteria are met:
1) The quantitative criterion primarily refers to a certain percentage of increase in the probability of default over the remaining life of the financial instruments as ofthe balance sheet date when comparing with that at initial recognition of the financial instruments;
2) The qualitative criterion includes, inter alia, adverse material changes in business or financial conditions that are expected to cause a significant decrease in thedebtor’s ability to meet its debt obligations, and an actual or expected significant adverse change in the technological, market, economic, or legal environment of the debtorthat results in a significant decrease in the debtor’s ability to meet its debt obligations.
(2) Definition of defaulted or credit-impaired assets
A financial asset is defined as defaulted when the financial instrument meets one or more conditions stated as below, and the criterion of defining defaulted asset isconsistent with that of defining credit-impaired asset:
1) significant financial difficulty of the debtor;
2) a breach of contract terms with binding force by the debtor;
3) it is becoming probable that the debtor will enter bankruptcy or other financial reorganization;
4) the creditor of the debtor, for economic or contractual reasons relating to the debtor’s financial difficulty, has granted to the debtor a concession(s) that the creditorwould not otherwise consider.
2. Measurement of ECL
Key parameters to measure ECL include the probability of default, loss given default and the exposure at default. The Company established models of the probabilityof default, loss given default and the exposure at default on the basis of quantitative analysis on historical statistical data (such as counterparty ranking, guarantee methods,collateral category, and repayment way) and forward-looking information.
3. The reconciliation of the opening balance and the closing balance of the provision for impairment of financial instruments is described in detail in VII.4, VII.5,VII.6, VII.8, VII.10, and VII.16 of Section X.
4. Credit risk exposure and credit risk concentration
The Company’s credit risk is primarily from cash and bank balances and receivables. In order to control the risks associated with aforementioned items, the Companyhas taken the following measures.
(1) Cash and bank balances
The credit risk of the Company is limited because the Company has deposited bank deposits and other monetary funds in banks with high credit ratings.
(2) Receivables
The Company regularly evaluates the creditworthiness of its customers with deals on credit, and selects to deal with approved and creditworthy customers subject tothe results of the credit assessment with monitoring the balance of its receivables, so as to ensure that the Company is not exposed to significant risk of bad debt.
No collaterals are required since the Company only deals with third parties that are approved and creditworthy. The concentrated credit risks are managed bycustomers. As of December 31, 2022, the Company is exposed to certain concentration of credit risks, as the Company’s accounts receivable from top 5 customers haveaccounted for 56.87% of the total balance of accounts receivable (December 31, 2021: 67.07%). The Company held no collateral or other credit ranking measures for thebalance of accounts receivable.
The maximum exposure to the Company is the carrying amount of each financial asset in the balance
sheet.
(II) Liquidity risk
Liquidity risk refers to the risk that the Company is in shortage of funds in performing obligations that are settled by delivering cash or another financial asset.Liquidity risk may arise from an inability to sell a financial asset at fair value as soon as possible, a counterparty’s inability to pay its contractual liabilities, the acceleratedmaturity of liabilities, or an inability to generate expected cash flows.
In order to control this risk, the Company balances the continuity and flexibility of financing by using various financing measures such as notes settlement and bankloans comprehensively and adopting both long-term and short-term financing methods to optimize the financing structure. The Company has received creditfacilities from a number of commercial banks to satisfy its working capital requirements and capital expenditures.
Financial liabilities classified by remaining maturity dates
| Item | Closing balance | ||||
| Book value | Undiscounted contract amount | Within 1 year | 1-3 years | Over 3 years | |
| Bank borrowings | 680,999,644.99 | 741,583,550.58 | 294,187,405.68 | 302,318,773.93 | 145,077,370.97 |
| Notes payable | 201,299,388.57 | 201,299,388.57 | 201,299,388.57 | ||
| Item | Closing balance | ||||
| Book value | Undiscounted contract amount | Within 1 year | 1-3 years | Over 3 years | |
| Accounts payable | 276,845,321.28 | 276,845,321.28 | 276,845,321.28 | ||
| Other payables | 56,662,357.08 | 56,662,357.08 | 56,662,357.08 | ||
| Lease liabilities | 64,661,633.09 | 68,598,988.87 | 30,342,348.86 | 38,256,640.01 | |
| Subtotal | 1,280,468,345.01 | 1,344,989,606.38 | 859,336,821.47 | 340,575,413.94 | 145,077,370.97 |
(Continued to above table)
| Item | Closing of last year | ||||
| Book value | Undiscounted contract amount | Within 1 year | 1-3 years | Over 3 years | |
| Bank borrowings | 510,220,781.93 | 565,970,499.86 | 161,846,571.44 | 335,211,636.92 | 68,912,291.50 |
| Notes payable | 134,378,967.61 | 134,378,967.61 | 134,378,967.61 | ||
| Accounts payable | 419,966,567.27 | 419,966,567.27 | 419,966,567.27 | ||
| Other payables | 54,115,784.80 | 54,115,784.80 | 54,115,784.80 | ||
| Lease liabilities | 29,560,179.86 | 30,987,424.69 | 19,686,637.60 | 10,725,062.82 | 575,724.27 |
| Subtotal | 1,148,242,281.47 | 1,205,419,244.23 | 789,994,528.72 | 345,936,699.74 | 69,488,015.77 |
(III) Market riskMarket risk refers to the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk mainlyincludes interest rate risk and currency risk.
1. Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Companyis exposed to the risk of fair value interest rate due to financial instruments with a fixed interest rate and to the risk of cash flow interest rate due to financial instrumentswith a floating interest rate. The Company determines the proportion between the fixed-rate financial instruments and the floating-rate financial instruments based onmarket conditions, and maintains appropriate portfolios of financial instruments through regular review and monitoring. The cash flow interest rate risk exposed to theCompany relates primarily to the Company’s floating-rate interest-bearing bank borrowings.
As at December 31, 2022, the principal of the Company’s floating-rate interest-bearing bank borrowings amounted to RMB 650,205,770.70 (December 31, 2021:
RMB 509,637,141.27). On the basis of the assumption that the interest rate has changed 10 basic points, where all other variables are held constant, it will bring nomaterial impacts on the Company’s total profits and shareholders’ equity.
2. Currency risk
Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. TheCompany’s exposure to the currency risk is primarily associated with the Company’s monetary assets and liabilities dominated in foreign currencies. If the monetary assetsand liabilities dominated in foreign currencies are imbalanced in a short time, the Company will purchase and sell foreign currencies at the market exchange rate to keepthe net risk exposure acceptable.
The closing balance of the Company’s monetary assets and liabilities dominated in foreign currencies is disclosed in VII.82 of Section X in details.XI. Disclosure of fair value
1. The closing balance of the fair value of assets and liabilities measured at fair value
√ Applicable □ N/A
In RMB
| Item | Fair value at the end of the period | |||
| First level fair value measurement | First level fair value measurement | First level fair value measurement | Total | |
| I. Continuous fair value measurement | ||||
| (I) Held-for-trading financial assets | 322,880,000.00 | 30,000,000.00 | 352,880,000.00 | |
| 1. Financial assets at fair value through profit or loss | 322,880,000.00 | 30,000,000.00 | 352,880,000.00 | |
| (1) Investment in debt instrument | ||||
| (2) Investment in equity instrument | 12,880,000.00 | 30,000,000.00 | 42,880,000.00 | |
| (3) Derivative financial assets | ||||
| (4) Structural deposits | 310,000,000.00 | 310,000,000.00 | ||
| 2. Designated as financial assets at fair value through profit or loss | ||||
| (1) Investment in debt instrument | ||||
| (2) Investment in equity instrument | ||||
| (II) Other debt investments | ||||
| (III) Other equity instrument investments | 7,075,419.38 | 7,075,419.38 | ||
| (IV) Investment properties | ||||
| 1. Land use right for leasing purpose | ||||
| 2. Buildings leased | ||||
| 3. Land use right held for the purpose of transfer after value appreciation | ||||
| (V) Biological assets | ||||
| 1. Consumable biological assets | ||||
| 2. Productive biological assets | ||||
| Receivables financing | 4,279,041.00 | 4,279,041.00 | ||
| Total assets continuously measured at fair value | 322,880,000.00 | 41,354,460.38 | 364,234,460.38 | |
| (VI) Held-for-trading financial liabilities | ||||
| 1. Financial liabilities at fair value through profit or loss | ||||
| Where: Held-for-trading bonds issued | ||||
| Derivative financial liabilities | ||||
| Others | ||||
| 2. Designated as financial liabilities at fair value through profit or loss | ||||
| Total liabilities continuously measured at fair value | ||||
| II. Non-continuous fair value measurement | ||||
| (I) Held-for-sale assets | ||||
| Total assets that are not continuously measured at fair value | ||||
| Total liabilities that are not continuously measured at fair value |
2. Basis for determining the market price of continuous and non-continuous level 1 fair value measurement items
□ Applicable √ N/A
3. Valuation techniques and qualitative and quantitative information of key parameters adopted for continuous and non-continuous level 2 fair valuemeasurement items
√ Applicable □ N/A
The equity instrument investment presented stocks subscribed on the New Third Board: considering the factors including the level of activity for trading of stockson the New Third Board, the Company classified stocks on the New Third Board as level 2 for the measurement of fair value, where the fair value is determined accordingto the average closing price of the previous 20 trading days.
Structured deposits are valued using observable returns, with the sum of expected returns and principal determined as fair value when the expected yield isobservable, and the principal amount as fair value in other cases.
4. Valuation techniques and qualitative and quantitative information of key parameters adopted for continuous and non-continuous level 3 fair value
measurement items
√ Applicable □ N/A
The Company uses specific valuation techniques to determine fair value, and important parameters used include the net assets of the investee unit at the end of the period.
5. Reconciliation between opening and closing carrying amounts and sensitivity analysis of unobservable parameters for continuous level 3 fair valuemeasurement items
□ Applicable √ N/A
6. Where transfers among levels occurred in the period, transfer reasons and policies for determining transfer time point for continuous fair valuemeasurement items
□ Applicable √ N/A
7. Changes in valuation techniques in the period and reasons for changes
□ Applicable √ N/A
8. Fair value of financial assets and financial liabilities not measured at fair value
□ Applicable √ N/A
9. Others
□ Applicable √ N/A
XII. Related-party relationships and transactions
1. Parent of the Company
√ Applicable □ N/A
In RMB 0’000
| Parent company | Registration place | Business nature | Registered capital | Proportion of The Company’s shares held by the parent company (%) | Proportion of the Company’s voting right held by the parent company (%) |
| Shenzhen Appotronics Holdings Limited | Shenzhen | R&D and sales of semiconductor products | 1,000万元 | 17.45 | 17.45 |
Description of the parent company of the Company
None
The ultimate controlling party of the Company is LI Yi.Other information:
None
2. Subsidiaries of the Company
Refer to the Notes for details about the subsidiaries of the Company
√ Applicable □ N/A
Refer to the description in IX.1 of Section X for details about the subsidiaries of the Company
3. Joint ventures and associates of the Company
Refer to the Notes for details about the significant joint ventures or associates of the Company
√ Applicable □ N/A
Refer to the description in IX.3 of Section X for details about the associates of the CompanyDetails of other joint ventures or associates having related-party transactions and balances with the Company in the period or in prior periods:
□ Applicable √ N/A
Other information
□ Applicable √ N/A
4. Other related parties of the Company
√ Applicable □ N/A
Other information
None
5. Related-party transactions
(1). Sales and purchase of goods, rendering and receipt of services
Purchase of goods/receipt of services
√ Applicable □ N/A
In RMB
| Related party | Subject matter | Amount for the current period | Amount for the prior period |
| GDC Technology Limited (BVI) and its affiliates | Electronic components and services | 424,778.76 | 5,723,460.99 |
| Beijing Donview Education Technology Co., Ltd. and its affiliates | Service | 3,539.62 | 14,070.79 |
| Shenzhen YLX Technology Development Co., Ltd. | Electronic components and services | 2,720,265.30 | 1,160,549.59 |
| Xiaomi Communications Technologies Co., Ltd. and its affiliates | Electronic components and services | 146,622,541.76 | 244,815,868.46 |
| CFEC and its affiliates | Power supply, water cooling and services | 20,715,146.16 | 47,318,159.54 |
| WeCast and its affiliates | Electronic equipment and services | 188,016.24 | 241,371.26 |
| Shenzhen Zhongguang Industrial Technology Research Institute | Service | 23,584.90 | |
| Subtotal | 170,697,872.74 | 299,273,480.63 |
Other related party
| Other related party | Relationship between other related party and the Company |
| Beijing Donview Education Technology Co., Ltd. and its affiliates | Minority shareholders holding more than 10% shares in the subsidiary and their affiliates |
| Shenzhen YLX Technology Development Co., Ltd. | Controlled by the same de facto controller |
| Xiaomi Communications Technologies Co., Ltd. and its affiliates | Minority shareholders holding more than 10% shares in the subsidiary and their affiliates |
| CFEC and its affiliates | Minority shareholders holding more than 10% shares in the subsidiary and their affiliates |
| WeCast and its affiliates | Enterprise in which the actual controller holds the post of director |
| CINIONIC and its affiliates | Shareholding companies |
| Shenzhen Zhongguang Industrial Technology Research Institute | The same actual controller |
Sales of goods/rendering of services
√ Applicable □ N/A
In RMB
| Related party | Subject matter | Amount for the current period | Amount for the prior period |
| GDC Technology Limited (BVI) and its affiliates | Cinema projector, spare parts, and software | 11,155,919.47 | 9,973,463.25 |
| WeCast and its affiliates | Laser TV, smart mini projector | -5,780,412.26 | 17,132,902.25 |
| Beijing Donview Education Technology Co., Ltd. and its affiliates | Laser business education projector | 1,940,644.07 | 4,536,140.66 |
| Xiaomi Communications Technologies Co., Ltd.and its affiliates | Laser TV, smart mini projector | 393,149,841.49 | 592,774,055.44 |
| CFEC and its affiliates | Laser digital cinema projector, laser light source, lease services | 29,790,770.70 | 74,259,971.78 |
| CINIONIC and its affiliates | Laser light source | 94,280,931.42 | 32,361,780.86 |
| YLX Incorporated | Accessory | 3,338,508.67 | |
| Subtotal | 527,876,203.56 | 731,038,314.24 |
Description of sales and purchase of goods, rendering and receipt of services
□ Applicable √ N/A
(2). Details of trust/contracting and trust management/contract-issuing with related partiesDetails of trust/contracting where a group entity is the trustor/main contractor:
□ Applicable √ N/A
Description of trust/contracting with related parties
□ Applicable √ N/A
Details of trust management/contract-issuing where a group entity is the trustor/main contractor □ Applicable √ N/ADescription of trust management/contract-issuing with related parties
□ Applicable √ N/A
(3). Leases with related parties
The Company as the lessor:
□ Applicable √ N/A
The Company as the lessee:
√ Applicable □ N/A
In RMB
| Lessor | Type of leased assets | Simplified handling of rental costs for short-term leases and low-value asset leases (if applicable) | Variable lease payments not included in the measurement of lease liabilities (if applicable) | Rent paid | Interest expense on lease liabilities incurred | Increased right-of-use assets | |||||
| Current occurrence amount | Previous occurrence amount | Current occurrence amount | Previous occurrence amount | Current occurrence amount | Previous occurrence amount | Current occurrence amount | Previous occurrence amount | Current occurrence amount | Previous occurrence amount | ||
| CFEC and its affiliates | Property lease | 227,735.01 | 662,746.78 | 274,688.57 | 1,318,421.91 | 42,657.63 | 98,311.39 | 3,764,670.43 | |||
Description of leases with related parties
□ Applicable √ N/A
(4). Guarantees with related parties
The Company as a guarantor:
□ Applicable √ N/A
The Company as a guaranteed party:
□ Applicable √ N/A
Description of guarantees with related parties
□ Applicable √ N/A
(5). Borrowings/loans with related parties
√ Applicable □ N/A
(6). Assets transfer/debt restructuring with related parties
□ Applicable √ N/A
(7). Compensation for key management personnel
√ Applicable □ N/A
In RMB 0’000
| Item | Amount for the current period | Amount for the prior period |
| Compensation for key management personnel | 1,019.85 | 1,234.62 |
(8). Other related-party transactions
□ Applicable √ N/A
6. Amounts due from/to related parties
(1). Amounts due from related parties
√ Applicable □ N/A
In RMB
| Item | Related party | Closing balance | Opening balance | ||
| Carrying amount | Bad debt provision | Carrying amount | Bad debt provision | ||
| Accounts receivable | CINIONIC and its affiliates | 29,768,395.79 | 1,488,419.79 | 26,592,355.61 | 1,329,617.78 |
| GDC Technology Limited (BVI) and its affiliates | 1,739,949.64 | 86,997.48 | 5,159,950.72 | 257,997.54 | |
| WeCast and its affiliates | 16,265,737.14 | 16,265,737.14 | 20,597,638.81 | 1,029,881.92 | |
| Beijing Donview Education Technology Co., Ltd. and its affiliates | 912,982.89 | 45,649.14 | |||
| Xiaomi Communications Technologies Co., Ltd. and its | 22,671,178.87 | 1,133,558.94 | 132,000,017.31 | 6,600,000.87 | |
| affiliates | |||||
| CFEC and its affiliates | 2,098,625.51 | 110,758.50 | 1,019,071.79 | 51,248.40 | |
| Subtotal | 72,543,886.95 | 19,085,471.85 | 186,282,017.13 | 9,314,395.65 | |
| Prepayments | CFEC and its affiliates | 5,451,984.90 | 1,369,286.22 | ||
| Xiaomi Communications Technologies Co., Ltd. and its affiliates | 40,000.00 | ||||
| Subtotal | 5,451,984.90 | 1,409,286.22 | |||
| Other receivables | CFEC and its affiliates | 273,354.20 | 13,667.71 | 229,355.00 | 11,467.75 |
| GDC Technology Limited (BVI) and its affiliates | 13,789,908.00 | 20,286,601.00 | 383,135.75 | ||
| Xiaomi Communications Technologies Co., Ltd. and its affiliates | 200,000.00 | 10,000.00 | |||
| Subtotal | 14,263,262.20 | 23,667.71 | 20,515,956.00 | 394,603.50 |
(2). Amounts due to related parties
√ Applicable □ N/A
In RMB
| Item | Related party | Closing balance of carrying amount | Opening balance of carrying amount |
| Accounts payable | GDC Technology Limited (BVI) and its affiliates | 5,593.76 | |
| Shenzhen YLX Technology Development Co., Ltd. | 110,054.78 | 1,147,275.29 | |
| Xiaomi Communications Technologies Co., Ltd. and its affiliates | 12,521,840.23 | 65,042,097.29 | |
| CFEC and its affiliates | 4,356,968.33 | 17,315,868.17 | |
| Subtotal | 16,988,863.34 | 83,510,834.51 | |
| Notes payable | CFEC and its affiliates | 22,554,693.11 | 5,049,000.17 |
| Subtotal | 22,554,693.11 | 5,049,000.17 | |
| Advance from customers | CFEC and its affiliates | 9,342,716.60 | 11,025,498.93 |
| GDC Technology Limited (BVI) and its affiliates | 4,800.00 | ||
| Subtotal | 9,347,516.60 | 11,025,498.93 | |
| Contract liabilities | GDC Technology Limited (BVI) and its affiliates | 23,677.17 | 3,469.81 |
| CFEC and its affiliates | 2,738,876.11 | 4,396,474.85 | |
| Subtotal | 2,762,553.28 | 4,399,944.66 | |
| Other payables | Beijing Donview Education Technology Co., Ltd. and its affiliates | 50,000.00 | 10,800.00 |
| Xiaomi Communications Technologies Co., Ltd. and its affiliates | 1,976.10 | ||
| CINIONIC and its affiliates | 507,874.72 | ||
| GDC Technology Limited (BVI) and its affiliates | 20,620.00 | ||
| CFEC and its affiliates | 18,025.76 | ||
| Subtotal | 596,520.48 | 12,776.10 | |
| Other current liabilities | Xiaomi Communications Technologies Co., Ltd. and its affiliates | 201,468.53 | 16,804,816.23 |
| CFEC and its affiliates | 3,179,145.48 | ||
| Subtotal | 3,380,614.01 | 16,804,816.23 |
7. Related party commitments
□ Applicable √ N/A
8. Others
□ Applicable √ N/A
XIII. Share-based payments
1. Summary of share-based payments
√ Applicable □ N/A
Unit: Share, RMB
| Item | Company | Formovie (Chongqing) |
| Total number of the Company’s equity instruments granted during the period | 13,048,080 restricted shares | 3,728,200 restricted shares |
| Total number of the Company’s equity instruments executed during the period | 4,350,637 shares | 200 shares |
| Total number of the Company’s equity instruments lapsed during the period | 11,436,828 shares | 74,450 shares |
| Range of exercise prices and remaining contractual life of the Company’s share options outstanding at the end of the period | The grant date is April 22, 2021, and the grant price is RMB20.84 per share, 15 months The grant date is April 22, 2021, and the grant price is RMB18.34 per share, 15 months The grant date is April 22, 2021, and the grant price is RMB17.34 per share, 15 months The grant date is December 7, 2021, and the grant price is RMB19.895 per share, 23 months The grant date is December 7, 2021, and the grant price is RMB22.895 per share, 23 months The grant date is March 11, 2022, and the grant price is RMB19.895 per share, 23 months The grant date is March 11, 2022, and the grant price is RMB22.895 per share, 23 months The grant date is March 11, 2022, and the grant price is RMB18.34 per share, 15 months The grant date is May 25, 2022, and the grant price is RMB15.395 per share, 17 months The grant date is July 22, 2022, and the grant price is RMB4.30 per share, 31 months The grant date is December 27, 2022, and the grant price is RMB15.395 per share, 24 months | The grant date is December 31, 2021, and the grant price is RMB1 per share, 42 months The grant date is July 6, 2022, and the grant price is RMB1 per share, 42 months The grant date is July 7, 2022, and the grant price is RMB3.42 per share, 42 months |
| Range of exercise prices and remaining contractual life of the Company’s other equity instruments outstanding at the end of the period | None | None |
Other information
None
2. Equity-settled share-based payments
√ Applicable □ N/A
In RMB
| Item | Company | Chongqing |
| The method of determining the fair value of equity instruments at the grant date | Option pricing model | Evaluation of all shareholder’s equity interests |
| The basis of determining the number of equity instruments expected to be executed | Actual grant amount | Actual grant amount |
| Reasons for the significant difference between the estimate in the current period and that in the prior period | None | None |
| Amounts of equity-settled share-based payments accumulated in capital reserve | 136,942,232.23 | 15,765,839.68 |
| Total expenses recognized arising from equity-settled share-based payments in the current period | 61,938,683.17 | 5,362,355.08 |
Other informationAll restricted shares granted by the Company are Type II restricted shares, while the registered capitalgranted by Chongqing was treated with reference to Type I restricted shares
3. Cash-settled share-based payments
□ Applicable √ N/A
4. Modification to and termination of share-based payments
□ Applicable √ N/A
5. Others
□ Applicable √ N/A
XIV. Commitments and contingencies
1. Significant commitments
□ Applicable √ N/A
2. Contingencies
(1). Significant contingencies as of the balance sheet date
√ Applicable □ N/A
Pending litigation
1. Civil litigation and arbitration where the Company acted as the plaintiff
As of December 31, 2022, there are 24 civil litigation cases where the Company acted as a plaintiff, specifically including:
| Case No. | Cause of action | Plaintiff/App ellant | Defendant/Appellee | Patents involved | Amount | Progress |
| (2019) Yue 03 Min Chu No. 2943 (2021) Zui Gao Fa Zhi Min Zhong No. 1582 | Infringement on patent for invention | Appotronics Corporation Limited | Defendant 1: Delta Electronics (Shanghai) Co., Ltd.; Defendant 2: Delta Video Display System (Wujiang) Limited; Defendant 3: Shenzhen Super Network Technology Co., Ltd. | 200810065225.X | RMB 8.00 million | (1) Compensation amount decided in the trial of the first instance: RMB 271,399.40; (2) Under trial of the second instance |
| (2019) Yue 03 Min Chu No. 2944 (2021) Zui Gao Fa Zhi Min Zhong No. 1718 | Infringement on patent for invention | Appotronics Corporation Limited | Defendant 1: Delta Electronics (Shanghai) Co., Ltd.; Defendant 2: Delta Video Display System (Wujiang) Limited; Defendant 3: Shenzhen Super Network Technology Co., Ltd. | 200810065225.X | RMB 8.00 million | (1) Compensation amount decided in the trial of the first instance: RMB 501,399.40; (2) Under trial of the second instance |
| (2019)Yue 03 Min Chu No. 2946 (2022) Zui Gao Fa Zhi Min Zhong No. 161 | Infringement on patent for invention | Appotronics Corporation Limited | Defendant 1: Delta Electronics (Shanghai) Co., Ltd.; Defendant 2: Delta Video Display System (Wujiang) Limited; Defendant 3: Shenzhen Super Network Technology Co., Ltd. | 200810065225.X | RMB 4.00 million | (1) Compensation amount decided in the trial of the first instance: RMB 151,399.40; (2) Both the plaintiff and defendant in the trial of the first instance appealed; under trial of the second instance |
| (2019) Yue 03 Min Chu No. 2948 (2021) Zui Gao Fa Zhi Min Zhong No. 1548 | Infringement on patent for invention | Appotronics Corporation Limited | Defendant 1: Delta Electronics (Shanghai) Co., Ltd.; Defendant 2: Delta Video Display System (Wujiang) Limited; Defendant 3: Shenzhen Super Network Technology Co., Ltd. | 200810065225.X | RMB 4.00 million | (1) Compensation amount decided in the trial of the first instance: RMB 146,399.40; (2) Under trial of the second instance |
| (2019) Yue 03 Min Chu No. 2951 (2021) Zui Gao Fa Zhi Min Zhong No. | Infringement on patent for invention | Appotronics Corporation Limited | Defendant 1: Delta Electronics (Shanghai) Co., Ltd.; Defendant 2: Delta Video Display System (Wujiang) Limited; Defendant 3: Shenzhen Super Network Technology Co., | 200810065225.X | RMB 4.00 million | (1) Compensation amount decided in the trial of the first instance: RMB 581,399.40; (2) Under trial of the second |
| 1550 | Ltd. | instance | ||||
| (2020) Yue 73 Zhi Min Chu No. 1335 | Infringement on patent for invention | Appotronics Corporation Limited | Defendant 1: Delta Video Display System (Wujiang) Limited Defendant 2: WANG Yuhai Defendant 3: Hunan Dehao Cultural and Creative Co., Ltd. Defendant 4: Delta Electronics (Shanghai) Co., Ltd. Defendant 5: Guangdong Jianye Display Information Technology Co., Ltd. Defendant 6: Guangzhou Jianye Network Technology Co., Ltd. | ZL200880107739.5 | RMB 3.00 million and right protection expenses of RMB 0.50 million | In trial of the first instance |
| (2020) Yue 73 Zhi Min Chu No. 1336 | Infringement on patent for invention | Appotronics Corporation Limited | Defendant 1: Delta Video Display System (Wujiang) Limited Defendant 2: WANG Yuhai Defendant 3: Hunan Dehao Cultural and Creative Co., Ltd. Defendant 4: Delta Electronics (Shanghai) Co., Ltd. Defendant 5: Guangdong Jianye Display Information Technology Co., Ltd. Defendant 6: Guangzhou Jianye Network Technology Co., Ltd. | ZL200880107739.5 | RMB 6.50 million and right protection Expnes of RMB 0.50 million | In trial of the first instance |
| (2020) Yue 73 Zhi Min Chu No. 1337 | Infringement on patent for invention | Appotronics Corporation Limited | Defendant 1: Delta Video Display System (Wujiang) Limited Defendant 2: WANG Yuhai Defendant 3: Hunan Dehao Cultural and Creative Co., Ltd. Defendant 4: Digital Projection (Beijing) Electronics Technology Co., Ltd. Defendant 5: Guangdong Jianye Display Information Technology Co., Ltd. Defendant 6: Guangzhou Jianye Network Technology Co., Ltd. | ZL200880107739.5 | RMB 2.50 million and right protection Expenses of RMB 0.50 million | In trial of the first instance |
| (2020) Yue 73 Zhi Min Chu No. 1338 | Infringement on patent for invention | Appotronics Corporation Limited | Defendant 1: Delta Video Display System (Wujiang) Limited Defendant 2: WANG Yuhai Defendant 3: Hunan Dehao Cultural and Creative Co., Ltd. Defendant 4: Delta Electronics (Shanghai) Co., Ltd. Defendant 5: Guangdong Jianye Display Information Technology Co., Ltd. Defendant 6: Guangzhou Jianye Network Technology Co., Ltd. | ZL200880107739.5 | RMB 2.00 million and right protection Expenses of RMB 0.50 million | In trial of the first instance |
| (2020) Yue 73 Zhi Min Chu No. 1340 | Infringement on patent for invention | Appotronics Corporation Limited | Defendant 1: Delta Video Display System (Wujiang) Limited Defendant 2: WANG Yuhai Defendant 3: Hunan Dehao Cultural and Creative Co., Ltd. Defendant 4: Digital Projection (Beijing) Electronics Technology Co., Ltd. Defendant 5: Guangdong Jianye Display Information Technology Co., Ltd. Defendant 6: Guangzhou Jianye Network Technology Co., Ltd. | ZL200880107739.5 | RMB 6.00 million and right protection expenses of RMB 0.50 million | In trial of the first instance |
| (2020) Yue 73 Zhi Min Chu No. 1341 | Infringement on patent for invention | Appotronics Corporation Limited | Defendant 1: Delta Video Display System (Wujiang) Limited Defendant 2: WANG Yuhai Defendant 3: Hunan Dehao Cultural and Creative Co., Ltd. Defendant 4: Delta Electronics (Shanghai) Co., Ltd. Defendant 5: Guangdong Jianye Display Information Technology Co., Ltd. Defendant 6: Guangzhou Jianye Network Technology Co., Ltd. | ZL200880107739.5 | RMB 14.00 million and right protection expenses of RMB 0.50 million | In trial of the first instance |
| (2020) Yue 73 Zhi Min Chu No. 1361 | Infringement on patent for invention | Appotronics Corporation Limited | Defendant 1: Delta Electronics (Shanghai) Co., Ltd. Defendant 2: WANG Yuhai Defendant 3: Hunan Dehao Cultural and Creative Co., Ltd. Defendant 4: Guangdong Jianye Display Information Technology Co., Ltd. | ZL200880107739.5 | RMB 0.75 million and right protection expenses of RMB 0.50 million | In trial of the first instance |
| (2020) Yue 73 Zhi Min Chu No. 1339 | Infringement on patent for invention | Appotronics Corporation Limited | Defendant 1: Delta Electronics (Shanghai) Co., Ltd. Defendant 2: WANG Yuhai Defendant 3: Hunan Dehao Cultural and Creative Co., Ltd. Defendant 4: Guangdong Jianye Display Information Technology Co., Ltd. Defendant 5: Guangzhou Jianye Network Technology Co., Ltd. | ZL200810065225.X | RMB 0.75 million and right protection expenses of RMB 0.50 million | In trial of the first instance |
| (2020) Yue 73 Zhi Min Chu No. 1353 | Infringement on patent for invention | Appotronics Corporation Limited | Defendant 1: Delta Video Display System (Wujiang) Limited Defendant 2: WANG Yuhai Defendant 3: Hunan Dehao Cultural and Creative Co., Ltd. Defendant 4: Delta Electronics (Shanghai) Co., Ltd. Defendant 5: Guangdong Jianye Display Information Technology Co., Ltd. Defendant 6: Guangzhou Jianye Network Technology Co., Ltd. | ZL200810065225.X | RMB 14.00 million and right protection expenses of RMB 0.50 million | In trial of the first instance |
| (2020) Yue 73 Zhi Min Chu No. 1355 | Infringement on patent for invention | Appotronics Corporation Limited | Defendant 1: Delta Video Display System (Wujiang) Limited Defendant 2: WANG Yuhai Defendant 3: Hunan Dehao Cultural and Creative Co., Ltd. Defendant 4: Digital Projection (Beijing) Electronics Technology Co., Ltd. Defendant 5: Guangdong Jianye Display Information Technology Co., Ltd. Defendant 6: Guangzhou Jianye Network Technology Co., Ltd. | ZL200810065225.X | RMB 6.00 million and right protection expenses of RMB 0.50 million | In trial of the first instance |
| (2020) Yue 73 Zhi Min Chu No. 1356 | Infringement on patent for invention | Appotronics Corporation Limited | Defendant 1: Delta Video Display System (Wujiang) Limited Defendant 2: WANG Yuhai Defendant 3: Hunan Dehao Cultural and Creative Co., Ltd. Defendant 4: Delta Electronics (Shanghai) Co., Ltd. Defendant 5: Guangdong Jianye Display Information Technology Co., Ltd. Defendant 6: Guangzhou Jianye Network Technology Co., Ltd. | ZL200810065225.X | RMB 6.50 million and right protection expenses of RMB 0.50 million | In trial of the first instance |
| (2020) Yue 73 Zhi Min Chu No. 1357 | Infringement on patent for invention | Appotronics Corporation Limited | Defendant 1: Delta Video Display System (Wujiang) Limited Defendant 2: WANG Yuhai Defendant 3: Hunan Dehao Cultural and Creative Co., Ltd. Defendant 4: Digital Projection (Beijing) Electronics Technology Co., Ltd. Defendant 5: Guangdong Jianye Display Information Technology Co., Ltd. Defendant 6: Guangzhou Jianye Network Technology Co., Ltd. | ZL200810065225.X | RMB 2.50 million and right protection expenses of RMB 0.50 million | In trial of the first instance |
| (2020) Yue 73 Zhi Min Chu No. 1358 | Infringement on patent for invention | Appotronics Corporation Limited | Defendant 1: Delta Video Display System (Wujiang) Limited Defendant 2: WANG Yuhai Defendant 3: Hunan Dehao Cultural and Creative Co., Ltd. Defendant 4: Delta Electronics (Shanghai) Co., Ltd. Defendant 5: Guangdong Jianye Display Information Technology Co., Ltd. Defendant 6: Guangzhou Jianye Network Technology Co., Ltd. | ZL200810065225.X | RMB 2.00 million and right protection expenses of RMB 0.50 million | In trial of the first instance |
| (2020) Yue 73 Zhi Min Chu No. 1359 | Infringement on patent for invention | Appotronics Corporation Limited | Defendant 1: Delta Video Display System (Wujiang) Limited Defendant 2: WANG Yuhai Defendant 3: Hunan Dehao Cultural and Creative Co., Ltd. Defendant 4: Delta Electronics (Shanghai) Co., Ltd. Defendant 5: Guangdong Jianye Display | ZL200810065225.X | RMB 3.00 million and right protection expenses of RMB 0.50 million | In trial of the first instance |
| (2020) Yue 73 Zhi Min Chu No. 1360 | Infringement on patent for invention | Appotronics Corporation Limited | Defendant 1: Delta Video Display System (Wujiang) Limited Defendant 2: WANG Yuhai Defendant 3: Hunan Dehao Cultural and Creative Co., Ltd. Defendant 4: Digital Projection (Beijing) Electronics Technology Co., Ltd. Defendant 5: Guangdong Jianye Display Information Technology Co., Ltd. Defendant 6: Guangzhou Jianye Network Technology Co., Ltd. | ZL200810065225.X | RMB 3.00 million and right protection expenses of RMB 0.50 million | In trial of the first instance |
| (2021) Yue 73 Zhi Min Chu No. 1860 | Maliciously initiate an intellectual property litigation | Appotronics Corporation Limited | Defendant: Delta Electronics, Inc. | N/A | RMB 10.00 million | In trial of the first instance |
| 01-22-0001-2735 | The Settlement Agreement enforces dispute arbitration and arbitration counterclaims | Appotronics Hong Kong Limited Appotronics Corporation Limited | GDC Technology Limited（Cayman Islands） GDC Technology Limited（British Virgin Islands） The actual controller Zhang Wanneng and his management team | N/A | Compensation of not less than $40 million | Accepted |
| DSC20212921 | Commercial contract disputes | CINEAPPO Laser Cinema Technology (Beijing) Co., Ltd. | Foshan Jiafu Cinema Management Co., Ltd. | N/A | Return 7 laser light source devices | The award has been made and is pending |
| （2022）Jing Zhong An No.7825 | Commercial contract disputes | CINEAPPO Laser Cinema Technology (Beijing) Co., Ltd. | Hubei Mango Qin Han Cultural Tourism Industry Development Co., Ltd. | N/A | Return 10 sets of laser digital cinema projection equipment and compensate RMB15,312.5 for liquidated damages | Accepted |
2. Civil litigation and arbitration where the Company acted as the defendant
As of December 31, 2022, there are 5 civil litigation cases where the Company was a defendant, specifically including:
| Case No. | Cause of action | Plaintiff | Defendant | Patents involved | Amount involved | Progress |
| (2019)Jing 73 Min Chu No. 1275 (2022) Zui Gao Fa Zhi Min Zhong No.1587 | Infringement on patent for invention | Delta Electronics, Inc. | Fengmi (Beijing) Technology Co., Ltd.; Appotronics Corporation Limited | ZL201610387831.8 | Loss compensation of RMB 15.00 million + litigation costs of RMB 1.01 million | In January 2022, the first-instance determined it was not infringed, and the second-instance trial is ongoing |
| (2021) Hu 73 Zhi Min Chu No. 1070（2023）Hu 73 Zhi Min Chu No. 15 | Appotronics Corporation Limited and Shanghai Haichi Digital Technology Co., Ltd. | ZL201110041436.1 | Loss compensation of RMB 15.00 million + litigation costs of RMB 1.01 million | In trial of the first instance | ||
| (2021) Chuan 01 Zhi Min Chu No. 685 | Appotronics Corporation Limited Chengdu Jinxi Guangxian Information Technology Co., Ltd. | ZL201610387831.8 | Loss compensation of RMB 15.00 million + litigation costs of RMB 1.01 million | In trial of the first instance | ||
| (2021) Chuan 01 Zhi Min Chu No. 686 | ZL201110041436.1 | Loss compensation of RMB 15.00 million + litigation costs of RMB 1.01 million | In trial of the first instance | |||
| 01-22-0001-2735 | The Settlement Agreement enforces dispute arbitration and arbitration counterclaims | GDC Technology Limited（Cayman Islands） GDC Technology Limited（British Virgin Islands） | Appotronics Hong Kong Limited Appotronics Corporation Limited | N/A | Compensation of $38 million | Accepted |
(2). Description shall also be provided even if the Company has no significant contingencies to be
disclosed:
□ Applicable √ N/A
3. Others
□ Applicable √ N/A
XV. Events after the balance sheet date
1. Material non-adjusting event
□ Applicable √ N/A
2. Profit distribution
√ Applicable □ N/A
In RMB
| Proposed distributions of profits or dividends | 24,635,207.05 |
| Profits or dividends declared for distribution upon discussion and approval | - |
The Company's profit distribution plan for 2022 is: The Company intends to distribute a cash dividend ofRMB0.54 (tax inclusive) to all shareholders for every 10 shares based on the total share capital on the recorddate of the implementation of the 2022 dividend, and the total expected cash dividend is RMB24,635,207.05(tax inclusive); the Company does not convert capital reserve into share capital and does not give bonusshares. The amount of cash dividends in the above-mentioned 2022 annual profit distribution plan istemporarily calculated based on the current Company’s total share capital of 457,107,538 shares afterdeducting the number of shares in the special securities account for repurchase of 900,000 shares. The totalamount of actual cash dividends will be calculated based on the total share capital on the record date of thedividend payment in 2022.The Company's profit distribution plan for 2022 is subject to the approval of the Company's GeneralMeeting of Shareholders.
3. Sales return
□ Applicable √ N/A
4. Description of other events after the balance sheet date
□ Applicable √ N/A
XVI. Other significant events
1. Corrections of prior period errors
(1). Retrospective application
□ Applicable √ N/A
(2). Prospective application
□ Applicable √ N/A
2. Debt restructuring
√ Applicable □ N/A
The Company acts as a creditor
| Debt restructuring methods | Claims carrying value | Debt restructuring related gains and losses | Increase in equity investment in associates or joint ventures as a result of debt restructuring | Equity investment as a percentage of the total shares of an associate or joint venture |
| Asset for debt payment | 1,670,300.00 | -912,618.35 |
3. Asset swap
(1). Exchange of non-monetary assets
□ Applicable √ N/A
(2). Other asset swap
□ Applicable √ N/A
4. Annuity plan
□ Applicable √ N/A
5. Discontinued operations
□ Applicable √ N/A
6. Segment reporting
(1). Determination basis and accounting policies of reporting segments
□ Applicable √ N/A
(2). Financial information of reporting segments
□ Applicable √ N/A
(3). If the Company has no reporting segments, or cannot disclose the total assets and liabilities ofreporting segments, specify the reasons
√ Applicable □ N/A
(4). Other information
□ Applicable √ N/A
7. Other significant transactions and matters having an impact on the decisions of investors
□ Applicable √ N/A
8. Others
√ Applicable □ N/A
1. The Company as the lessee
(1) Right-of-use assets are described in detail in VII.25 of Section X;
(2) The accounting policies of the Company with respect to short-term leases and low-value assetsleases are described in detail in V.42 of Section X. The table below shows the amounts of expenses related toshort-term leases and expenses related to low-value assets leases that are recognized in the profit or loss for thecurrent period:
| Item | Amount of the current period | Amount of the prior period |
| Expenses related to short-term leases | 3,198,138.79 | 8,445,152.88 |
| Expenses related to low-value assets leases (except for short-term leases) | 390,717.29 | |
| Total | 3,198,138.79 | 8,835,870.17 |
(3) Profit or loss and cash flow for the current period related to leases
| Item | Amount of the current period | Amount of the prior period |
| Interest expenses of lease liabilities | 2,373,778.62 | 1,670,889.26 |
| Total cash outflow for leases | 32,298,210.50 | 32,622,777.04 |
(4) For the maturity analysis of lease liabilities and corresponding liquidity risk management, referto the description in X.(II) of Section X.
(5) Nature of leasing activities
| Categories of leased assets | Number | Lease Term | With option for renewal of lease or not |
| Property | 35 | Within 5 years | No |
2. The Company as the lessor
(1) Operating lease
1) Lease incomes
| Item | Amount of the current period | Amount of the prior period |
| Income from projection services | 268,983,867.97 | 360,622,008.82 |
| Where: Income related to variable lease payments not recognized as lease payments | 244,055,250.03 | 343,947,997.24 |
2) Assets of operating leases
| Item | Closing balance | Closing of last year |
| Fixed assets | 303,593,548.82 | 367,726,844.90 |
| Subtotal | 303,593,548.82 | 367,726,844.90 |
Fixed assets leased out under operating leases are described in detail in VII.21 of Section X.
3) According to the lease contract with the lessee, undiscounted lease payments that will bereceived in the future for irrevocable leases
| Remaining period | Closing balance |
| Within 1 year | 2,607,042.80 |
| Total | 2,607,042.80 |
(3) Other information
Nature of leasing activities
| Category leased out | of assets | Number | Lease Term |
| Light source and device | 20,916 | N/A | No |
XVII. Notes to key items in the parent company’s financial statements
1. Accounts receivable
(1). Disclosure by aging
√ Applicable □ N/A
In RMB
| Aging | Closing balance of carrying amount |
| Within 1 year | |
| Where: Subitems within 1 year | |
| Within 1 year | 440,724,111.48 |
| Subtotal of items within 1 year | 440,724,111.48 |
| 1 to 2 years | 237,687,773.27 |
| 2 to 3 years | 12,522,109.16 |
| Over 3 years | 3,678,400.00 |
| Total | 694,612,393.91 |
(2). Disclosure by categories of provision for bad debts
√ Applicable □ N/A
In RMB
| Category | Closing balance | Opening balance | ||||||||
| Carrying amount | Bad debt provision | Book value | Carrying amount | Bad debt provision | Book value | |||||
| Amount | Percentage (%) | Amount | Percentage of provision(%) | Amount | Percentage (%) | Amount | Percentage of provision(%) | |||
| Provision for bad debts made individually | ||||||||||
| Where: | ||||||||||
| Provision for bad debts made by group | 694,612,393.91 | 100.00 | 6,607,565.62 | 0.95 | 688,004,828.29 | 621,699,280.41 | 100 | 5,483,110.45 | 0.88 | 616,216,169.96 |
| Where: | ||||||||||
| Total | 694,612,393.91 | 100.00 | 6,607,565.62 | 0.95 | 688,004,828.29 | 621,699,280.41 | 100 | 5,483,110.45 | 0.88 | 616,216,169.96 |
Provision for bad debts made individually:
□ Applicable √ N/A
Provision for bad debts made by group:
√ Applicable □ N/A
Item by group: Group of aging
In RMB
| Name | Closing balance | ||
| Accounts receivable | Bad debt provision | Proportion of provision (%) | |
| Group of aging | 91,536,981.15 | 6,607,565.62 | 7.22 |
| Group of receivables from related parties in the scope of consolidation | 603,075,412.76 | ||
| Total | 694,612,393.91 | 6,607,565.62 | 0.95 |
Recognition criterion to make the bad debt provision by group and explanation:
□ Applicable √ N/A
If a provision for bad debts of accounts receivable is made in accordance with the general model of ECL,please disclose relevant information subject to the disclosure of the bad debt provision
for other receivables:
□ Applicable √ N/A
(3). Provision for bad debts
√ Applicable □ N/A
In RMB
| Category | Opening balance | Changes for the current period | Closing balance | |||
| Provision | Recovery or reversal | Write-off or cancellation | Other changes | |||
| Provision for bad debts made by group | 5,483,110.45 | 1,124,455.17 | 6,607,565.62 | |||
| Total | 5,483,110.45 | 1,124,455.17 | 6,607,565.62 | |||
Including significant amounts recovered or reversed from the current provision for bad debts:
□ Applicable √ N/A
(4). Accounts receivable actually canceled in the current period
□ Applicable √ N/A
(5). Top five closing balances of accounts receivable categorized by debtors
√ Applicable □ N/A
In RMB
| Entity | Closing balance | Proportion to the total closing balance of accounts receivable(%) | Closing balance of bad debt provision |
| Fengmi (Beijing) Technology Co., Ltd. | 216,236,129.02 | 31.13 | |
| Formovie (Chongqing) Innovative Technology Co., Ltd. | 208,273,152.09 | 29.98 | |
| Appotronics Hong Kong Limited | 113,288,019.47 | 16.31 | |
| Appotronics Technology(Changzhou) Co., Ltd. | 30,537,557.96 | 4.40 | |
| CINEAPPO Laser Cinema Technology (Beijing) Co., Ltd. | 28,140,307.11 | 4.05 | |
| Total | 596,475,165.65 | 85.87 |
Other information
None
(6). Accounts receivable derecognized due to transfer of financial assets
√ Applicable □ N/A
| Item | Amount derecognized | Gains or losses associated with derecognition | The method of transferring financial assets |
| CCB E Infocomm | 3,000,000.00 | Discount | |
| Subtotal | 3,000,000.00 |
(7). Assets and liabilities arising from transfer of accounts receivable and continued involvement
□ Applicable √ N/A
Other information:
□ Applicable √ N/A
2. Other receivables
Presented by items
√ Applicable □ N/A
In RMB
| Item | Closing balance | Opening balance |
| Interest receivable | ||
| Dividend receivable | ||
| Other receivables | 7,556,623.71 | 6,645,181.15 |
| Total | 7,556,623.71 | 6,645,181.15 |
Other information:
□ Applicable √ N/A
Interest receivable
(1). Categories of interest receivable
□ Applicable √ N/A
(2). Significant interests overdue
□ Applicable √ N/A
(3). Provision for bad debts
□ Applicable √ N/A
Other information:
□ Applicable √ N/A
(4). Dividend receivable
□ Applicable √ N/A
(5). Dividends receivable with significant amounts aged more than 1 year
□ Applicable √ N/A
(6). Provision for bad debts
□ Applicable √ N/A
Other information:
□ Applicable √ N/A
Other receivables
(1). Disclosure by aging
√ Applicable □ N/A
In RMB
| Aging | Closing balance of carrying amount |
| Within 1 year | |
| Where: Subitems within 1 year | |
| Within 1 year | 2,266,730.32 |
| Subtotal of items within 1 year | 2,266,730.32 |
| 1 to 2 years | 105,528.66 |
| 2 to 3 years | 841,125.46 |
| Over 3 years | 4,680,224.40 |
| Total | 7,893,608.84 |
(2). Categories by the nature of other receivables
√ Applicable □ N/A
In RMB
| Nature of other receivables | Closing balance of carrying amount | Opening balance of carrying amount |
| Deposits/margins/petty cash | 6,539,089.13 | 5,855,101.09 |
| Receivables from related parties in the scope of consolidation | 1,153,906.23 | 912,569.02 |
| Temporary receivables | 134,793.84 | 207,998.50 |
| Compensation receivable | 65,819.64 | |
| Total | 7,893,608.84 | 6,975,668.61 |
(3). Provision for bad debts
√ Applicable □ N/A
In RMB
| Bad debt provision | Stage I | Stage II | Stage III | Total |
| 12-month ECL in the future | Lifetime ECL (without credit impairment) | Lifetime ECL (with credit impairment) | ||
| Balance as at January 1, 2022 | 296,321.86 | 34,165.60 | 330,487.46 | |
| Balance as at January 1, 2022 in the current period | —— | —— | —— | |
| -- transferred to Stage II | ||||
| -- transferred to Stage II | ||||
| --reversed to Stage II | ||||
| --reversed to Stage I | ||||
| Provision | 40,663.27 | -34,165.60 | 6,497.67 | |
| Reversal | ||||
| Write-off | ||||
| Cancellation | ||||
| Other changes | ||||
| Balance as at December 31,2022 | 336,985.13 | 336,985.13 |
Description of significant changes in the balance of other receivables with changed provisions for lossesin the current period:
□ Applicable √ N/A
Basis for recognizing the amount of bad debt provisions and evaluating whether the credit risk of financialinstruments has been increased significantly in the current period:
□ Applicable √ N/A
(4). Provision for bad debts
√ Applicable □ N/A
In RMB
| Category | Opening balance | Changes for the current period | Closing balance | |||
| Provision | Recovery or reversal | Write-off or cancellation | Other changes | |||
| Provision for bad debts made by group | 330,487.46 | 6,497.67 | 336,985.13 | |||
| Total | 330,487.46 | 6,497.67 | 336,985.13 | |||
Including significant amounts recovered or reversed from the current provision for bad debts:
□ Applicable √ N/A
(5). Other receivables actually canceled in the current period
□ Applicable √ N/A
(6). Top five closing balances of other receivables categorized by debtors
√ Applicable □ N/A
In RMB
| Entity | Nature of other receivables | Closing balance | Aging | Proportion to the total closing balance of other receivables (%) | Closing balance of bad debt provision |
| Shenzhen Meisheng Industry Co., Ltd. | Deposits/margins/petty cash | 3,574,618.00 | Over 3 years | 45.28 | 178,730.90 |
| Shenzhen High-tech Industry Promotion Center | Deposits/margins/petty cash | 1,257,075.20 | 2-3 years, over 3 years | 15.93 | 62,853.76 |
| Fengmi (Beijing) Technology Co., Ltd. | Receivables from related parties in the scope of consolidation | 604,775.76 | Within 1 year | 7.66 | |
| Qingdao Haier Multimedia Co., Ltd. | Deposits/margins/petty cash | 500,000.00 | 2-3 years | 6.33 | 25,000.00 |
| Ordos Beiyuan Thermal Power Co., Ltd. | Deposits/margins/petty cash | 500,000.00 | Within 1 year | 6.33 | 25,000.00 |
| Total | / | 6,436,468.96 | 81.53 | 291,584.66 |
(7). Accounts receivable involving government grants
□ Applicable √ N/A
(8). Other receivables derecognized due to transfer of financial assets
□ Applicable √ N/A
(9). Assets and liabilities arising from transfer of other receivables and continued involvement
□ Applicable √ N/A
Other information:
□ Applicable √ N/A
3. Long-term equity investments
√ Applicable □ N/A
In RMB
| Item | Closing balance | Opening balance | ||||
| Carrying amount | Provision for impairment | Book value | Carrying amount | Provision for impairment | Book value | |
| Investments in subsidiaries | 463,067,140.24 | 12,827,792.79 | 450,239,347.45 | 453,386,804.91 | 12,827,792.79 | 440,559,012.12 |
| Investmentsin associates and joint ventures | ||||||
| Total | 463,067,140.24 | 12,827,792.79 | 450,239,347.45 | 453,386,804.91 | 12,827,792.79 | 440,559,012.12 |
(1). Investments in subsidiaries
√ Applicable □ N/A
In RMB
| Investee | Opening balance | Increase | Decrease | Closing balance | Provision for impairment | Closing balance of provision For impairment |
| CINEAPPO Laser Cinema Technology (Beijing) Co., Ltd. | 40,023,897.89 | 6,637,313.76 | 46,661,211.65 | |||
| Shenzhen Appotronics Software Technology Co., Ltd. | 1,763,700.01 | -305,900.59 | 1,457,799.42 | |||
| Beijing Dongfang Guangfeng Technology Co., Ltd. | 5,900,000.00 | 5,900,000.00 | ||||
| Shenzhen Appotronics Xiaoming Technology Co., Ltd.. | 12,000,000.00 | 12,000,000.00 | 12,000,000.00 | |||
| Fengmi (Beijing) Technology Co., Ltd. | 3,285,537.50 | 183,463.41 | 3,469,000.91 | |||
| Qingda Appotronics (Xiamen) Technology Co., Ltd. | 5,100,000.00 | 5,100,000.00 | 827,792.79 | |||
| Shenzhen Appotronics Laser Technology Co., Ltd. | 18,966,857.26 | 18,966,857.26 | ||||
| Appotronics Hong Kong Limited | 303,045,217.02 | 2,430,825.85 | 305,476,042.87 | |||
| JOVE AI Innovation | 769,778.40 | 30,231.63 | 800,010.03 | |||
| Appotronics Technology (Changzhou) Co., Ltd. | 2,000,000.00 | 2,000,000.00 | ||||
| Shenzhen Appotronics Display Device Co., Ltd. | 3,000,000.00 | 3,000,000.00 | ||||
| APPOTRONICS USA, INC. | 399,600.01 | -399,600.01 | ||||
| Tianjin Bainian Film Partnership (LP) | 26,954,120.20 | 26,954,120.20 | ||||
| Formovie (Chongqing) Innovative Technology Co., Ltd.. | 30,178,096.62 | 1,099,688.51 | 31,277,785.13 | |||
| Shenzhen Orange Juice Energy Technology Co., Ltd. | 4,312.77 | 4,312.77 | ||||
| Total | 453,386,804.91 | 9,680,335.33 | 463,067,140.24 | 12,827,792.79 |
(2). Investments in associates and joint ventures
□ Applicable √ N/A
Other information:
None
4. Operating income and operating costs
(1). Description of operating income and operating costs
√ Applicable □ N/A
In RMB
| Item | Amount for the current period | Amount for the prior period | ||
| Income | Cost | Income | Cost | |
| Main business | 1,345,923,616.67 | 910,770,517.27 | 1,445,208,597.94 | 951,761,428.41 |
| Other businesses | ||||
| Total | 1,345,923,616.67 | 910,770,517.27 | 1,445,208,597.94 | 951,761,428.41 |
(2). Description of incomes from contracts
□ Applicable √ N/A
(3). Description of performance obligations
□ Applicable √ N/A
(4). Description of allocation to remaining performance obligations
□ Applicable √ N/A
Other information:
NoneRevenue generated by contracts with customers is decomposed by major categories
1) Revenue is decomposed by type of goods or services
| Item | Amount of the current period | Amount of the prior period | ||
| Income | Cost | Income | Cost | |
| Laser optical engine | 710,883,924.88 | 483,356,870.16 | 708,869,865.07 | 449,487,760.77 |
| Laser projector complete machine | 513,069,153.88 | 318,398,376.53 | 626,751,045.59 | 407,333,614.11 |
| Others | 121,970,537.91 | 109,015,270.58 | 108,897,421.79 | 94,641,293.85 |
| Subtotal | 1,345,923,616.67 | 910,770,517.27 | 1,444,518,332.45 | 951,462,668.73 |
2) Revenue is decomposed by region of operation
| Item | Amount of the current period | Amount of the prior period | ||
| Income | Cost | Income | Cost | |
| Domestic | 1,087,106,494.16 | 764,022,903.46 | 1,312,075,243.77 | 875,796,452.06 |
| Overseas | 258,817,122.51 | 146,747,613.81 | 132,443,088.68 | 75,666,216.67 |
| Subtotal | 1,345,923,616.67 | 910,770,517.27 | 1,444,518,332.45 | 951,462,668.73 |
3) Revenue is decomposed by transfer time of goods or services
| Item | Amount of the current period | Amount of the prior period |
| Revenue recognized at a time point | 1,345,923,616.67 | 1,444,518,332.45 |
| Subtotal | 1,345,923,616.67 | 1,444,518,332.45 |
Others: revenue recognized in the current period included in the opening carrying value of contractliabilities is RMB13,562,044.25.
5. Investment income
√ Applicable □ N/A
In RMB
| Item | Amount for the current period | Amount for the prior period |
| Gains from long-term equity investment accounted for using the cost method | 90,512,000.00 | 18,477,491.48 |
| Investment income from disposal of long-term equity investments | 3.00 |
| Income from investments in trading financial assets during the holding period | 200,000.00 | |
| Investment income from disposal of held-for-trading financial assets | 12,322,950.62 | 8,780,960.36 |
| Fees for acquiring held-for-trading financial assets | -8,750.05 | |
| Total | 103,034,950.62 | 27,249,704.79 |
Other information:
None
6. Others
□ Applicable √ N/A
XVIII. Supplementary information
1. Breakdown of non-recurring profit or loss for the current period
√ Applicable □ N/A
In RMB
| Item | Amount | Description |
| Gain or loss on disposal of non-current assets | -5,668,573.43 | |
| Tax refunds or reductions with ultra vires approval or without official approval documents | ||
| Government grants recognized in profit or loss (other than grants which are closely related to the Company’s business and are either in fixed amounts or determined under quantitative methods in accordance with the national standard) | 40,229,974.94 | Section X.VII.84 |
| Income earned from lending funds to non- financial institutions and recognized in profit or loss | ||
| The excess of attributable fair value of identifiable net assets over the consideration paid for the acquisition of subsidiaries, associates and joint ventures | ||
| Profit or loss on exchange of non-monetary assets | ||
| Profit or loss on entrusted investments or assets management | 12,637,561.73 | Section X.VII.68 |
| Impairment losses on assets due to force majeure events, e.g. natural disasters | ||
| Profit or loss on debt restructuring | -912,618.35 | |
| Entity restructuring expenses, e.g., expenditure for layoff of employees, integration expenses, etc. | ||
| Profit or loss attributable to the evidently unfair portion of transaction price, being transacted price in excess of fair transaction price, of a transaction | ||
| Net profit or loss of subsidiaries from the beginning of the period up to the business combination date recognized as a result of business combination involving enterprises under common control | 27,765,106.19 | |
| Profit or loss arising from contingencies other than those related to normal operating business | ||
| Profit or loss on changes in the fair value of held-for-trading financial assets, derivative financial assets, held-for-trading financial liabilities and derivative financial liabilities and investment income on disposal of held- for-trading financial assets, derivative financial assets, held-for-trading financial liabilities, derivative financial liabilities and other debt investments, other than those used in the effective hedging activities relating to normal operating business | -3,120,000.00 | Section X.VII.70 |
| Reversal of impairment loss on accounts receivable and contract assets tested for impairment individually | 837,824.59 | |
| Profit or loss on entrusted loans | ||
| Profit or loss on changes in the fair value of investment properties that are subsequently measured using the fair value model | ||
| Effects on profit or loss of one-off adjustment to profit or loss for the period |
| according to the requirements of laws and regulations in respect of tax, accounting, etc. | ||
| Custodian fees earned from entrusted operation | ||
| Other non-operating income and expenses | -679,415.19 | |
| Other gains or losses meeting the definition of non-recurring profit or loss | 362,064.36 | |
| Less: Effect of income taxes | 4,542,972.68 | |
| Effect of minority interests | 12,281,312.41 | |
| Total | 54,627,639.75 |
It is required to specify the reason for defining items as non-recurring profit or loss items according toExplanatory Announcement No. 1 on Information Disclosure for Companies Publicly Offering Securities-Non-recurring Profit or Loss, and reasons for defining non-recurring profit or loss items illustrated inExplanatory Announcement No. 1 on Information Disclosure for Companies Publicly Offering Securities-Non-recurring Profit or Loss as recurring profit or loss items.
□ Applicable √ N/A
2. Return on net assets and earnings per share
√ Applicable □ N/A
| Profit for the reporting period | Weighted average return on net assets (%) | Earnings per share | |
| Basic earnings per share | Diluted earnings per share | ||
| Net profit attributable to ordinary shareholders of the Company | 4.73 | 0.26 | 0.26 |
| Net profit after deduction of non-recurring profits or losses attributable to ordinary shareholders of the Company | 2.57 | 0.14 | 0.14 |
3. Differences in accounting data under Chinese accounting standards and overseas accounting
standards
□ Applicable √ N/A
4. Others
□ Applicable √ N/A
Chairman: LI Yi
Approval for submission by the Board of Directors: April 26, 2023
Revision information
□ Applicable √ N/A