FIRST QUARTER REPORT 2020
April 2020
Part I Important NotesThe Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,supervisors and senior management of BOE Technology Group Co., Ltd. (hereinafter referredto as the “Company”) hereby guarantee the factuality, accuracy and completeness of thecontents of this Report and its summary, and shall be jointly and severally liable for anymisrepresentations, misleading statements or material omissions therein.All the Company’s directors have attended the Board meeting for the review of this Reportand its summary.Mr. Chen Yanshun, the Company’s legal representative, Mr. Liu Xiaodong, President of theCompany, Ms. Sun Yun, the Company’s Chief Financial Officer, and Ms. Yang Xiaoping, headof the Company’s financial department (equivalent to financial manager) hereby guaranteethat the Financial Statements carried in this Report are factual, accurate and complete.This Report has been prepared in both Chinese and English. Should there be anydiscrepancies or misunderstandings between the two versions, the Chinese version shallprevail.
Part II Key Corporate Information
I Key Financial InformationIndicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
| Item | Q1 2020 | Q1 2019 | Change (%) |
| Operating revenue (RMB) | 25,879,940,117.00 | 26,454,258,554.00 | -2.17% |
| Net profit attributable to the listed company’s shareholders (RMB) | 566,676,460.00 | 1,051,781,919.00 | -46.12% |
| Net profit attributable to the listed company’s shareholders before exceptional items (RMB) | -502,352,271.00 | 352,304,432.00 | -242.59% |
| Net cash generated from/used in operating activities (RMB) | 5,223,671,919.00 | 6,164,241,385.00 | -15.26% |
| Basic earnings per share (RMB/share) | 0.014 | 0.030 | -53.33% |
| Diluted earnings per share (RMB/share) | 0.014 | 0.030 | -53.33% |
| Weighted average return on equity (%) | 0.50% | 1.22% | -0.72% |
| Item | 31 March 2020 | 31 December 2019 | Change (%) |
| Total assets (RMB) | 341,414,397,501.00 | 340,412,203,308.00 | 0.29% |
| Equity attributable to the listed company’s shareholders (RMB) | 99,656,561,800.00 | 95,058,129,055.00 | 4.84% |
Exceptional gains and losses:
√ Applicable □ Not applicable
Unit: RMB
| Item | Q1 2020 | Note |
| Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) | 1,848,285.00 | N/A |
| Tax rebates, reductions and exemptions with ultra vires approval or in lack of duly approved document | 0.00 | N/A |
| Government subsidies charged to current profit and loss (exclusive of government subsidies given in the Company’s ordinary course of business at fixed quotas or amounts as per government’s uniform standards ) | 1,144,574,383.00 | N/A |
| Capital occupation charges on non-financial enterprises that are charged to current gains and losses | 0.00 | N/A |
| Income equal to the amount by which investment costs for the Company to obtain subsidiaries, associates and joint ventures are lower than the Company’s enjoyable fair value of identifiable net assets of investees when making investments | 0.00 | N/A |
| Gains and losses on non-monetary asset swap | 0.00 | N/A |
| Gains and losses on investment or asset management entrustments to other entities | 0.00 | N/A |
| Allowance for asset impairments due to acts of God such as natural disasters | 0.00 | N/A |
| Gains and losses on debt restructuring | 0.00 | N/A |
| Restructuring costs in staff arrangement, integration, etc. | 0.00 | N/A |
| Gains and losses on over-fair value amount as a result of transactions with distinctly unfair prices | 0.00 | N/A |
| Current gains and losses on subsidiaries acquired through business mergers under same control from period-beginning to merger dates, net | 0.00 | N/A |
| Gains and losses on contingencies that do not arise in the Company’s ordinary course of business | 0.00 | N/A |
| Gain or loss on fair-value changes in trading financial assets and liabilities and derivative financial assets and liabilities & investment income from disposal of trading financial assets and liabilities and derivative financial assets and liabilities, and other creditors’ investment (exclusive of effective portion of hedges that arise in the Company’s ordinary course of business) | 20,043,116.00 | N/A |
| Reversed portion of impairment allowance for accounts receivable and contract assets which are tested individually for impairment | 3,428,992.00 | N/A |
| Gains and losses on loan entrustment | 0.00 | N/A |
| Gains and losses on fair value changes in investment property of which subsequent measurement is carried out using fair value method | 0.00 | N/A |
| Effects of all adjustments required by taxation, accounting and other applicable laws and regulations on current gains and losses | 0.00 | N/A |
| Income from charges on entrusted management | 0.00 | N/A |
| Non-operating income and expense other than above | 2,520,384.00 | N/A |
| Other gains and losses that meet definition of nonrecurring gain/loss | 0.00 | N/A |
| Less: Income tax effects | 33,103,140.00 | N/A |
| Non-controlling interests effects (net of tax) | 70,283,289.00 | N/A |
| Total | 1,069,028,731.00 | -- |
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the ExplanatoryAnnouncement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss
Items:
□ Applicable √ Not applicable
No such cases for the Reporting Period.II Total Number of Shareholders and Holdings of Top 10 Shareholders at 31 March 2020
1. Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well asHoldings of Top 10 Shareholders
Unit: share
| Number of ordinary shareholders at the period-end | 1,541,954 (including 1,501,699 A-shareholders and 40,255 B-shareholders) | |||||
| Top 10 shareholders | ||||||
| Name of shareholder | Nature of shareholder | Shareholding percentage | Total shares held | Restricted shares held | Shares in pledge or frozen | |
| Status | Shares | |||||
| Beijing State-owned Capital Operation and Management Center | State-owned legal person | 11.68% | 4,063,333,333 | 0 | N/A | 0 |
| Hefei Jianxiang Investment Co., Ltd. | State-owned legal person | 7.21% | 2,510,142,953 | 0 | N/A | 0 |
| Chongqing Ezcapital Opto-electronic Industry Investment Co., Ltd. | State-owned legal person | 5.81% | 2,020,734,641 | 0 | N/A | 0 |
| Beijing Yizhuang Investment Holdings Co., Ltd | State-owned legal person | 2.64% | 919,731,500 | 0 | N/A | 0 |
| Beijing BOE Investment & Development Co., Ltd. | State-owned legal person | 2.36% | 822,092,180 | 0 | N/A | 0 |
| Hong Kong Securities Clearing Company Ltd. | Foreign legal person | 2.11% | 733,896,129 | 0 | N/A | 0 |
| Beijing Electronics Holdings Co., Ltd. | State-owned legal person | 0.79% | 273,735,583 | 0 | N/A | 0 |
| GCAMC-ICBC-Generali China-Selected Stock No.18 Asset Management Product | Domestic non-state-owned legal person | 0.72% | 249,251,600 | 0 | N/A | 0 |
| Central Huijin Assets Management Co., Ltd | State-owned legal person | 0.71% | 248,305,300 | 0 | N/A | 0 |
| GCAMC-ICBC-Generali China-Silk Road No.1 Asset Management Product | Domestic non-state-owned legal person | 0.63% | 218,095,100 | 0 | N/A | 0 |
| Top 10 unrestricted shareholders | ||||||
| Name of shareholder | Unrestricted shares held | Shares by type | |
| Type | Shares | ||
| Beijing State-owned Capital Operation and Management Center | 4,063,333,333 | RMB ordinary share | 4,063,333,333 |
| Hefei Jianxiang Investment Co., Ltd. | 2,510,142,953 | RMB ordinary share | 2,510,142,953 |
| Chongqing Ezcapital Opto-electronic Industry Investment Co., Ltd. | 2,020,734,641 | RMB ordinary share | 2,020,734,641 |
| Beijing Yizhuang Investment Holdings Co., Ltd | 919,731,500 | RMB ordinary share | 919,731,500 |
| Beijing BOE Investment & Development Co., Ltd. | 822,092,180 | RMB ordinary share | 822,092,180 |
| Hong Kong Securities Clearing Company Ltd. | 733,896,129 | RMB ordinary share | 733,896,129 |
| Beijing Electronics Holdings Co., Ltd. | 273,735,583 | RMB ordinary share | 273,735,583 |
| GCAMC-ICBC-Generali China-Selected Stock No.18 Asset Management Product | 249,251,600 | RMB ordinary share | 249,251,600 |
| Central Huijin Assets Management Co., Ltd | 248,305,300 | RMB ordinary share | 248,305,300 |
| GCAMC-ICBC-Generali China-Silk Road No.1 Asset Management Product | 218,095,100 | RMB ordinary share | 218,095,100 |
| Related or acting-in-concert parties among the shareholders above | 1. Beijing State-owned Capital Operation and Management Center held 100% equities of Beijing Electronics Holdings Co., Ltd. 2. Beijing Electronics Holdings Co., Ltd. held 66.25% equities of Beijing BOE Investment & Development Co., Ltd. and was its controlling shareholder. 3. After the non-public issuing of BOE in 2014, Hefei Jianxiang Investment Co., Ltd. and Chongqing Ezcapital Opto-electronic Industry Investment Co., Ltd., by entering into Implementation Protocol of Voting Right respectively, agreed to maintain all of the shares held by them respectively unanimous with Beijing BOE Investment & Development Co., Ltd. when executing the voting rights of the shareholders. 4. After the non-public issuing of the Company in 2014, Beijing State-owned Capital Operation and Management Center handed over 70% of the shares directly held by it to Beijing Electronics Holdings Co., Ltd. for management through Stock Management Protocol, and Beijing Electronics Holdings Co., Ltd. gained the incidental shareholders’ rights except for disposing right and usufruct of the shares, of which the rest 30% voting right maintained unanimous with Beijing Electronics Holdings Co., Ltd. through the agreement according to Implementation Protocol of Voting Right. 5. Except for the above relationships, the Company does not know any other connected party or acting-in-concert party among the top 10 shareholders. | ||
| Top 10 ordinary shareholders involved in securities margin trading (if any) | The shares held by Beijing Yizhuang Investment Holdings Co., Ltd. in the Company decreased by 7,140,300 shares due to engaging in securities financing. |
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of theCompany conducted any promissory repo during the Reporting Period.
□ Yes √ No
No such cases in the Reporting Period.
2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
Part III Significant Events
I Changes in Key Financial Statement Line Items and Explanation of why
√ Applicable □ Not applicable
1. Asset impairment loss went up 380% during Q 1 2020 compared to Q1 2019, primarily driven by an increase in the inventoryvaluation allowance recorded in Q1 2020 according to the lower of cost and net realizable value.
2. Other income went up 62% during Q 1 2020 compared to Q1 2019, primarily driven by an increase in government subsidies in Q12020.
3. Income tax expense went down 56% during Q 1 2020 compared to Q1 2019, primarily driven by a decrease in earnings in Q12020.
4. Cash used in investing activities went down 30% during Q 1 2020 compared to Q1 2019, primarily driven by a decrease inexpenses on construction of new projects in Q1 2020.
5. Net cash generated from financing activities went down 57% during Q 1 2020 compared to Q1 2019, primarily driven bydecreases in specific borrowings for new projects and in capital increase by minority shareholders.II Progress, Influence and Solutions with regard to Significant Events
√ Applicable □ Not applicable
1. On 18 October 2019, the Company disclosed the Announcement on the Company’s Application for CSRC’s Approval for its PublicIssue of Renewable Corporate Bonds (Announcement No. 2019-052), and the Company received the No. [2019] 1801 Approval fromCSRC. Based on the approval, the Company could publicly issue the renewable corporate bonds with the nominal value no more thanRMB30 billion to qualified investors. On 29 October 2019, the Company disclosed the Announcement on the Result of Public Issueof Renewable Corporate Bonds (to Qualified Investors) (the First Issue) in 2019 (Announcement No. 2019-057), and the periodduring which the Company publicly issued renewable corporate bonds (to qualified investors) (the first issue) (“19BOEY1” for short;Code: 112741) was from 28 October 2019 to 29 October 2019. However, the issuing scale was RMB8 billion, and the bonds’ultimate nominal interest rate was 4.0%. On 29 February 2020, the Company disclosed the Announcement on the Result of PublicIssue of Renewable Corporate Bonds (to Qualified Investors) (the First Issue) (Epidemic Prevention and Control Bonds) in 2020 (No.2020-007), and the period during which the Company publicly issued renewable corporate bonds (to qualified investors) (the firstissue) (Epidemic Prevention and Control Bonds) (“20BOEY1” for short; Code: 149046) was from 27 February 2020 to 28 February2020. However, the issuing scale was RMB2 billion, and the bonds’ ultimate nominal interest rate was 3.64%. On 20 March 2020,the Company disclosed the Announcement on the Result of Public Issue of Renewable Corporate Bonds (to Qualified Investors) (theSecond Issue) (Epidemic Prevention and Control Bonds) in 2020 (Announcement No. 2020-013), and the period during which theCompany publicly issued renewable corporate bonds (to qualified investors) (the second issue) (Epidemic Prevention and ControlBonds) (“20BOEY2” for short; Code: 149065) was from 18 March 2020 to 19 March 2020. However, the issuing scale was RMB2billion, and the bonds’ ultimate nominal interest rate was 3.54%.
2. The Company’s wholly-owned subsidiary BOE Technology (HK) Limited filed a lawsuit on the sales contract dispute to thesuperior people’s court in Beijing, and the defendants included LETV Mobile Intelligent Information Technology (Beijing) Co., Ltd.(hereinafter referred to as “LETV Mobile”), LETV Holdings (Beijing) Co., Ltd., Le Sai Mobile Technology (Beijing) Co., Ltd. andJia Yueting with the claimed amount of USD41.84 million in total. However, Beijing Municipal Superior People’s Court respectivelyissued the Notice of Acceptance and the Civil Ruling Paper on Property Preservation on July 6, 2017 and July 31, 2017. LETVMobile ever put forward the jurisdiction objection to Beijing Municipal Superior People’s Court, which was rejected, and then
launched a lawsuit on the judgment of the jurisdiction objection to the Supreme People’s Court. Finally, the Supreme People’s Courtmade the final ruling, rejected the appeal of LETV Mobile and affirmed the original judgment. On 8 March 2019, the first hearingwas held in Beijing Municipal Superior People’s Court. On 19 February 2020, Beijing Municipal Superior People’s Court issued thefirst instance judgment:
I. The defendant (LETV Mobile Intelligent Information Technology (Beijing) Co., Ltd.) shall pay the plaintiff (BOE Technology (HK)Limited) the owed principal USD36,940,476.77 and the resulting interests (regarding the principal USD12,871,274.5 as the interestbasis from 8 September 2016 to 1 March 2017, USD12,144,001.77 from 2 March 2017 to the actual payment day, USD16,172,935from 13 October 2016 to the actual payment day, USD8,488,690 from 10 November 2016 to the actual payment day, and US134,850from 8 December 2016 to the actual payment day; the annual interest rate shall be 6% (365 days)), as well as the liquidated damages(regarding the principal USD2,052,248.71 as the basis from 30 April 2017 to 1 July 2017, USD2,052,248.71 from 31 May 2017 to 1July 2017, USD2,052,248.71 from 30 June 2017 to 1 July 2017, and USD36,940,476.77 from 2 July 2017 to the actual payment day;the penalty standard was 0.03% per day); under the Installment Payment Agreement within 10 days after the judgment took effect;II. The defendant LETV Holdings (Beijing) Co., Ltd. shall burden the joint and several guarantee for the debt owed by LETV MobileIntelligent Information Technology (Beijing) Co., Ltd. Defined in the judgment (Item I);III. After the Defendant LETV Holdings (Beijing) Co., Ltd. burdens the joint and several guarantee related to Item II, LETVHoldings (Beijing) Co., Ltd. shall have the right to claim compensation from LETV Mobile Intelligent Information Technology(Beijing) Co., Ltd.;IV. The defendant(LETV Mobile Intelligent Information Technology (Beijing) Co., Ltd.) shall pay the plaintiff (BOE Technology(HK) Limited) the owed principal USD2,459,090.91 and the resulting interests (regarding the principal USD2,459,090.91 as theinterest basis from 27 May 2017 to 19 August 2019 with the PBC’s benchmark interest rate for loan during the same period as thestandard; USD2,459,090.91 from August 20, 2019 to the actual payment day with the quoted interest rate of the loan market issuedby the national inter-bank offer center as the standard; the year shall have 365 days) under the Purchase Order with the goodspayment USD2.75 million;V. Other claims of the plaintiff (BOE Technology (HK) Limited) shall be rejected.If the defendant LETV Mobile Intelligent Information Technology (Beijing) Co., Ltd. and LETV Holdings (Beijing) Co., Ltd. fails tofulfill their payment obligation as scheduled in the judgment, the Defendant shall pay the double debt interests during the delayedperiod according to Article 253 of Civil Procedure Law of the People’s Republic of China.The litigation fee was RMB1,465,371.63, of which, RMB5,371.63 shall be paid by the plaintiff BOE Technology (HK) Limited(already paid), and RMB1.46 million shall be jointly burdened by LETV Mobile Intelligent Information Technology (Beijing) Co.,Ltd. and LETV Holdings (Beijing) Co., Ltd. (payment within 7 days after the judgment took effect); the preservation fee wasRMB5000, which shall be jointly burdened by LETV Mobile Intelligent Information Technology (Beijing) Co., Ltd. and LETVHoldings (Beijing) Co., Ltd. (payment within 7 days after the judgment took effect).On 17 March 2020, BOE Technology (HK) Limited received the petition for appeal submitted by LETV Holdings (Beijing) Co., Ltd.to the court. Now, the court’s notice is pending. The Company has calculated corresponding bad-debt provision for the accountreceivables equaling the above-mentioned claimed amount according to the accounting standards, which has uncertain influence onthe Company.Progress of any share repurchases:
□ Applicable √ Not applicable
Progress of any reduction of the repurchased shares through centralized bidding:
□ Applicable √ Not applicable
III Commitments that the Company’s Actual Controller, Shareholders, Related Parties, Acquirers, the Company Itself or Other Parties,Failed to Fulfill on Time during the Reporting Period
√ Applicable □ Not applicable
| Commitment | Promisor | Type of commitment | Details of commitment | Date of commitment making | Term of commitment | Fulfillment |
| Commitments made in share reform | - | - | - | - | - | - |
| Commitments made in acquisition documents or shareholding alteration documents | - | - | - | - | - | - |
| Commitments made in time of asset restructuring | - | - | - | - | - | - |
| Commitment made in IPO or refinancing | - | - | - | - | - | - |
| Commitment made in stock ownership incentive | - | - | - | - | - | - |
| Other commitments made to minority shareholders | The directors, supervisors and senior managers of the Company | Other commitment | The Company’s directors, supervisors and senior managers, based on their confidence in the Company’s future development and their recognition of the corporate value, promise not to reduce or transfer any shares held in BOE (A shares), not to entrust others to manage specific shares, not to authorize others to execute their voting right by means of any agreement, trust or other arrangements and not to require the Company to repurchase any specific shares during the terms of office and within 6 months after their tenures expire so as to promote the Company’s continuous, stable and healthy development and maintain the rights and interests of the Company and all shareholders. For any | 21 February 2020 | During the term as director, supervisor or senior manager, and in six months after the expiration of the term (the term determined when taking office). | Ongoing |
| newly-added shares derived from the assignment of rights and interests including the share donation and the reserved funds converted into share capital during the period (corresponding to the specific shares), they shall still keep their promises till the commitment period expires. | |||
| Fulfill on time or not | Yes | ||
| Specific reasons for failing to fulfill commitments on time and plans for next step (if any) | None | ||
IV Securities Investments
√ Applicable □ Not applicable
Unit: RMB
| Variety of security | Symbol of security | Name of security | Initial investment cost | Accounting measurement model | Beginning carrying value | Gain/loss of changes in fair value in the Reporting Period | Accumulative changes in fair value recorded into equities | Purchased in the Reporting Period | Sold in the Reporting Period | Gain/loss in Reporting Period | Ending carrying value | Accounting title | Capital source |
| Domestic and overseas stock | SH600658 | Electronic Zone | 90,160,428.00 | Fair value method | 72,585,692.00 | 0.00 | -31,459,499.00 | 0.00 | 0.00 | 0.00 | 58,700,929.00 | Other equity instruments investment | Self-owned funds |
| Domestic and overseas stock | HK01963 | Bank of Chongqing | 120,084,375.00 | Fair value method | 105,407,103.00 | 0.00 | -49,998,062.00 | 0.00 | 0.00 | 0.00 | 89,549,873.00 | Other equity instruments investment | Self-owned funds |
| Domestic and overseas stock | HK06066 | China Securities | 70,041,364.00 | Fair value method | 68,545,920.00 | 0.00 | -4,156,917.00 | 0.00 | 30,246,220.00 | 0.00 | 37,133,561.00 | Other equity instruments investment | Self-owned funds |
| Domestic and overseas stock | HK01518 | New Century Healthcare | 140,848,850.00 | Fair value method | 53,586,259.00 | 0.00 | -115,015,606.00 | 0.00 | 0.00 | 0.00 | 30,562,642.00 | Other equity instruments investment | Self-owned funds |
| Other securities investments held at the | 0.00 | -- | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -- | -- | ||
| period-end | |||||||||||
| Total | 421,135,017.00 | -- | 300,124,974.00 | 0.00 | -200,630,084.00 | 0.00 | 30,246,220.00 | 0.00 | 215,947,005.00 | -- | -- |
| Disclosure date of the announcement about the board’s consent for the securities investment | N/A | ||||||||||
| Disclosure date of the announcement about the general meeting’s consent for the securities investment (if any) | N/A | ||||||||||
V Cash Entrusted for Wealth Management
√ Applicable □ Not applicable
Unit: RMB'0,000
| Specific type | Capital resources | Amount incurred | Undue balance | Overdue amount |
| Bank financial products and structured deposit | Self-owned funds | 716,300 | 473,900 | 0 |
| Total | 716,300 | 473,900 | 0 | |
Note: Amount incurred refers to the maximum balance of cash entrusted for wealth management in the single day during the Reporting PeriodParticulars of entrusted cash management with single significant amount or low security, bad liquidity, and no capital preservation
□ Applicable √ Not applicable
Whether there is the case where the principal cannot be recovered at maturity or other case which may cause impairment for entrusted asset management
□ Applicable √ Not applicable
VI Investments in Derivative Financial Instruments
√ Applicable □ Not applicable
Unit: RMB'0,000
| Operating party | Relationship with the Company | Related-party transaction or not | Type of derivative | Initial investment amount | Beginning date | Ending date | Beginning investment | Purchased in Reporting Period | Sold in Reporting Period | Impairment allowance (if any) | Ending investment | Ending investment as % of the Company’s ending net assets | Actual gain/loss in Reporting Period |
| Bank | Not related | Not | Foreign exchange forwards contract | 78,133.44 | 1 January 2020 | 31 March 2020 | 78,133.44 | 33,102.63 | 28,340.40 | - | 82,895.67 | 0.57% | 339.68 |
| Total | 78,133.44 | -- | -- | 78,133.44 | 33,102.63 | 28,340.40 | - | 82,895.67 | 0.57% | 339.68 | |||
| Funding source | Self-owned funds | ||||||||||||
| Legal matters involved (if applicable) | N/A | ||||||||||||
| Analysis of risks and control measures associated with derivative investments held in Reporting Period (including but not limited to market risk, liquidity risk, credit risk, operational risk, legal risk, etc.) | As of the end of the Reporting Period, the derivative financial instruments held by the Company were forward forex contracts. The relevant risks are associated with uncertain exchange rates. The Company mainly adopts the following measures to control its investments in derivative financial instruments. For derivative financial instrument transactions, the Company controls the types of such transactions, and properly decides the amounts of transactions; and such transactions must be in line with the Company’s planning for production, operation and development, and should be carried out mainly for the purposes of cost lock-in and risk prevention. | ||||||||||||
| Changes in market prices or fair value of derivative investments in Reporting Period (fair value analysis should include measurement method and related assumptions and parameters) | The fair value of derivatives investments as at the end of the Reporting Period is determined by reference to the market quotations of external financial institutions. | ||||||||||||
| Major changes in accounting policies and specific accounting principles adopted for derivative investments in Reporting Period compared to last reporting period | No major changes | ||||||||||||
| Opinion of independent directors on derivative investments and risk control | N/A | ||||||||||||
VII Communications with the Investment Community such as Researches, Inquiries andInterviews during the Reporting Period
√ Applicable □ Not applicable
| Date | Way of communication | Type of communication party | Index to main information communicated |
| 2 January 2020 | By phone | Institution | Main contents: 1. The main situations of the industry 2. Main operating information of the Company 3. Innovations of technology and products For details, see www.cninfo.com.cn |
| 8 January 2020 | On-site visit | Institution | |
| 9 January 2020 | On-site visit | Institution | |
| 10 January 2020 | On-site visit | Institution | |
| 15 January 2020 | By phone | Institution | |
| 16 January 2020 | On-site visit | Institution | |
| 4 February 2020 | By phone | Institution |
VIII Irregularities in the Provision of Guarantees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IX Occupation of the Company’s Capital by the Controlling Shareholder or Its RelatedParties for Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Part IV Financial Statements
I Financial Statements
1. Consolidated Balance Sheet
Prepared by BOE Technology Group Co., Ltd.
Unit: RMB
| Item | 31 March 2020 | 31 December 2019 |
| Current assets: | ||
| Monetary assets | 56,710,960,210.00 | 56,972,723,239.00 |
| Settlement reserve | 0.00 | 0.00 |
| Interbank loans granted | 0.00 | 0.00 |
| Trading financial assets | 2,775,556,988.00 | 5,809,184,994.00 |
| Derivative financial assets | 0.00 | 0.00 |
| Notes receivable | 192,207,977.00 | 331,145,492.00 |
| Accounts receivable | 17,063,749,215.00 | 18,135,687,806.00 |
| Accounts receivable financing | 0.00 | 0.00 |
| Prepayments | 939,318,040.00 | 626,985,706.00 |
| Premiums receivable | 0.00 | 0.00 |
| Reinsurance receivables | 0.00 | 0.00 |
| Receivable reinsurance contract reserve | 0.00 | 0.00 |
| Other receivables | 747,648,214.00 | 706,171,112.00 |
| Including: Interest receivable | 240,341,785.00 | 215,977,831.00 |
| Dividends receivable | 0.00 | 0.00 |
| Financial assets purchased under resale agreements | 0.00 | 0.00 |
| Inventories | 15,565,357,382.00 | 12,396,194,762.00 |
| Contractual assets | 0.00 | 0.00 |
| Assets classified as held for sale | 183,498,294.00 | 173,910,820.00 |
| Current portion of non-current assets | 0.00 | 0.00 |
| Other current assets | 10,197,444,267.00 | 9,296,637,067.00 |
| Total current assets | 104,375,740,587.00 | 104,448,640,998.00 |
| Non-current assets: | ||
| Loans and advances to customers | 0.00 | 0.00 |
| Investments in debt obligations | 0.00 | 0.00 |
| Investments in other debt obligations | 0.00 | 0.00 |
| Long-term receivables | 0.00 | 0.00 |
| Long-term equity investments | 2,829,107,630.00 | 2,718,037,934.00 |
| Investments in other equity instruments | 552,974,054.00 | 632,076,647.00 |
| Other non-current financial assets | 0.00 | 0.00 |
| Investment property | 1,230,898,664.00 | 1,241,242,850.00 |
| Fixed assets | 132,431,848,894.00 | 125,786,241,938.00 |
| Construction in progress | 82,216,852,691.00 | 87,376,782,527.00 |
| Productive living assets | 0.00 | 0.00 |
| Oil and gas assets | 0.00 | 0.00 |
| Right-of-use assets | 0.00 | 0.00 |
| Intangible assets | 7,280,668,184.00 | 7,416,416,829.00 |
| R&D expense | 0.00 | 0.00 |
| Goodwill | 707,603,856.00 | 707,603,856.00 |
| Long-term prepaid expense | 319,361,098.00 | 345,424,409.00 |
| Deferred income tax assets | 165,702,865.00 | 248,153,761.00 |
| Other non-current assets | 9,303,638,978.00 | 9,491,581,559.00 |
| Total non-current assets | 237,038,656,914.00 | 235,963,562,310.00 |
| Total assets | 341,414,397,501.00 | 340,412,203,308.00 |
| Current liabilities: | ||
| Short-term borrowings | 8,375,500,000.00 | 6,366,717,121.00 |
| Borrowings from central bank | 0.00 | 0.00 |
| Interbank loans obtained | 0.00 | 0.00 |
| Trading financial liabilities | 0.00 | 0.00 |
| Derivative financial liabilities | 0.00 | 0.00 |
| Notes payable | 1,192,953,285.00 | 2,028,917,980.00 |
| Accounts payable | 21,939,778,442.00 | 21,183,567,553.00 |
| Advances from customers | 473,456,032.00 | 1,260,732,785.00 |
| Contractual liabilities | 1,306,427,992.00 | 0.00 |
| Financial assets sold under repurchase agreements | 0.00 | 0.00 |
| Customer deposits and interbank deposits | 0.00 | 0.00 |
| Payables for acting trading of securities | 0.00 | 0.00 |
| Payables for underwriting of securities | 0.00 | 0.00 |
| Payroll payable | 1,635,218,841.00 | 2,373,745,454.00 |
| Taxes payable | 756,746,835.00 | 730,996,129.00 |
| Other payables | 21,357,712,327.00 | 24,570,589,610.00 |
| Including: Interest payable | 309,209,601.00 | 721,325,540.00 |
| Dividends payable | 94,193,134.00 | 14,568,242.00 |
| Handling charges and commissions payable | 0.00 | 0.00 |
| Reinsurance payables | 0.00 | 0.00 |
| Liabilities directly associated with assets classified as held for sale | 0.00 | 0.00 |
| Current portion of non-current liabilities | 20,032,650,109.00 | 18,849,281,019.00 |
| Other current liabilities | 1,290,791,717.00 | 1,013,738,515.00 |
| Total current liabilities | 78,361,235,580.00 | 78,378,286,166.00 |
| Non-current liabilities: | ||
| Insurance contract reserve | 0.00 | 0.00 |
| Long-term borrowings | 105,212,342,951.00 | 107,730,595,615.00 |
| Bonds payable | 391,326,125.00 | 387,878,384.00 |
| Including: Preferred shares | 0.00 | 0.00 |
| Perpetual bonds | 0.00 | 0.00 |
| Lease liabilities | 0.00 | 0.00 |
| Long-term payables | 990,561,281.00 | 984,520,824.00 |
| Long-term payroll payable | 0.00 | 0.00 |
| Provisions | 16,457,010.00 | 16,457,010.00 |
| Deferred income | 2,479,736,490.00 | 2,204,400,566.00 |
| Deferred income tax liabilities | 1,392,061,150.00 | 1,451,825,357.00 |
| Other non-current liabilities | 7,679,232,755.00 | 8,200,542,412.00 |
| Total non-current liabilities | 118,161,717,762.00 | 120,976,220,168.00 |
| Total liabilities | 196,522,953,342.00 | 199,354,506,334.00 |
| Owners’ equity: | ||
| Share capital | 34,798,398,763.00 | 34,798,398,763.00 |
| Other equity instruments | 12,080,541,237.00 | 8,013,156,853.00 |
| Including: Preferred shares | 0.00 | 0.00 |
| Perpetual bonds | 12,080,541,237.00 | 8,013,156,853.00 |
| Capital reserves | 38,350,193,219.00 | 38,353,242,364.00 |
| Less: Treasury stock | 0.00 | 0.00 |
| Other comprehensive income | 47,448,580.00 | -4,566,639.00 |
| Special reserves | 0.00 | 0.00 |
| Surplus reserves | 2,050,045,823.00 | 1,516,139,709.00 |
| General reserve | 0.00 | 0 |
| Retained earnings | 12,329,934,178.00 | 12,381,758,005.00 |
| Total equity attributable to owners of the Company as the parent | 99,656,561,800.00 | 95,058,129,055.00 |
| Non-controlling interests | 45,234,882,359.00 | 45,999,567,919.00 |
| Total owners’ equity | 144,891,444,159.00 | 141,057,696,974.00 |
| Total liabilities and owners’ equity | 341,414,397,501.00 | 340,412,203,308.00 |
Legal representative: ChenYanshun Chief Executive Officer: Liu XiaodongChief Financial Officer: Sun Yun Head of the Company’s Financial Department: Yang Xiaoping
2. Balance Sheet of the Company as the Parent
Unit: RMB
| Item | 31 March 2020 | 31 December 2019 |
| Current assets: | ||
| Monetary assets | 4,255,862,494.00 | 3,680,770,048.00 |
| Trading financial assets | 0.00 | 0.00 |
| Derivative financial assets | 0.00 | 0.00 |
| Notes receivable | 85,915,556.00 | 84,230,531.00 |
| Accounts receivable | 4,270,981,771.00 | 646,533,115.00 |
| Accounts receivable financing | 0.00 | 0.00 |
| Prepayments | 102,909,881.00 | 77,682,682.00 |
| Other receivables | 6,832,467,660.00 | 4,827,398,094.00 |
| Including: Interest receivable | 19,912,286.00 | 11,884,080.00 |
| Dividends receivable | 941,634,611.00 | 941,634,611.00 |
| Inventories | 14,740,695.00 | 13,935,401.00 |
| Contractual assets | 0.00 | 0.00 |
| Assets classified as held for sale | 0.00 | 0.00 |
| Current portion of non-current assets | 0.00 | 0.00 |
| Other current assets | 99,339,081.00 | 109,497,897.00 |
| Total current assets | 15,662,217,138.00 | 9,440,047,768.00 |
| Non-current assets: | ||
| Investments in debt obligations | 0.00 | 0.00 |
| Investments in other debt obligations | 0.00 | 0.00 |
| Long-term receivables | 0.00 | 0.00 |
| Long-term equity investments | 161,558,265,962.00 | 159,389,864,760.00 |
| Investments in other equity instruments | 65,520,961.00 | 79,405,724.00 |
| Other non-current financial assets | 0.00 | 0.00 |
| Investment property | 278,107,154.00 | 280,525,802.00 |
| Fixed assets | 925,008,132.00 | 949,104,308.00 |
| Construction in progress | 365,890,182.00 | 358,933,667.00 |
| Productive living assets | 0.00 | 0.00 |
| Oil and gas assets | 0.00 | 0.00 |
| Right-of-use assets | 0.00 | 0.00 |
| Intangible assets | 1,453,701,766.00 | 1,493,632,264.00 |
| R&D expense | 0.00 | 0.00 |
| Goodwill | 0.00 | 0.00 |
| Long-term prepaid expense | 107,310,579.00 | 109,216,398.00 |
| Deferred income tax assets | 0.00 | 360,268,466.00 |
| Other non-current assets | 159,097,418.00 | 162,516,190.00 |
| Total non-current assets | 164,912,902,154.00 | 163,183,467,579.00 |
| Total assets | 180,575,119,292.00 | 172,623,515,347.00 |
| Current liabilities: | ||
| Short-term borrowings | 1,220,000,000.00 | 1,220,000,000.00 |
| Trading financial liabilities | 0.00 | 0.00 |
| Derivative financial liabilities | 0.00 | 0.00 |
| Notes payable | 0.00 | 0.00 |
| Accounts payable | 46,465,309.00 | 27,919,341.00 |
| Advances from customers | 9,562,822.00 | 2,117,568,995.00 |
| Contractual liabilities | 32,500,000.00 | 0.00 |
| Payroll payable | 101,267,603.00 | 252,206,075.00 |
| Taxes payable | 16,279,960.00 | 107,287,957.00 |
| Other payables | 4,182,366,635.00 | 5,260,470,974.00 |
| Including: Interest payable | 154,201,382.00 | 95,859,219.00 |
| Dividends payable | 6,451,171.00 | 6,451,171.00 |
| Liabilities directly associated with assets classified as held for sale | 0.00 | 0.00 |
| Current portion of non-current liabilities | 9,110,574,120.00 | 5,490,440,787.00 |
| Other current liabilities | 57,426.00 | 1,423,133.00 |
| Total current liabilities | 14,719,073,875.00 | 14,477,317,262.00 |
| Non-current liabilities: | ||
| Long-term borrowings | 30,670,568,241.00 | 33,310,701,574.00 |
| Bonds payable | 0.00 | 0.00 |
| Including: Preferred shares | 0.00 | 0.00 |
| Perpetual bonds | 0.00 | 0.00 |
| Lease liabilities | 0.00 | 0.00 |
| Long-term payables | 0.00 | 0.00 |
| Long-term payroll payable | 0.00 | 0.00 |
| Provisions | 0.00 | 0.00 |
| Deferred income | 4,310,847,755.00 | 4,627,393,256.00 |
| Deferred income tax liabilities | 579,836,080.00 | 0.00 |
| Other non-current liabilities | 34,197,240,828.00 | 33,297,240,830.00 |
| Total non-current liabilities | 69,758,492,904.00 | 71,235,335,660.00 |
| Total liabilities | 84,477,566,779.00 | 85,712,652,922.00 |
| Owners’ equity: | ||
| Share capital | 34,798,398,763.00 | 34,798,398,763.00 |
| Other equity instruments | 12,080,541,237.00 | 8,013,156,853.00 |
| Including: Preferred shares | 0.00 | 0.00 |
| Perpetual bonds | 12,080,541,237.00 | 8,013,156,853.00 |
| Capital reserves | 37,608,039,685.00 | 37,608,039,685.00 |
| Less: Treasury stock | 0.00 | 0.00 |
| Other comprehensive income | 181,836,528.00 | 193,638,576.00 |
| Special reserves | 0.00 | 0.00 |
| Surplus reserves | 2,050,045,823.00 | 1,516,139,709.00 |
| Retained earnings | 9,378,690,477.00 | 4,781,488,839.00 |
| Total owners’ equity | 96,097,552,513.00 | 86,910,862,425.00 |
| Total liabilities and owners’ equity | 180,575,119,292.00 | 172,623,515,347.00 |
3. Consolidated Income Statement
Unit: RMB
| Item | Q1 2020 | Q1 2019 |
| 1. Revenue | 25,879,940,117.00 | 26,454,258,554.00 |
| Including: Operating revenue | 25,879,940,117.00 | 26,454,258,554.00 |
| Interest income | 0.00 | 0.00 |
| Premium income | 0.00 | 0.00 |
| Handling charge and commission income | 0.00 | 0.00 |
| 2. Costs and expenses | 26,366,090,255.00 | 25,828,685,973.00 |
| Including: Cost of sales | 22,174,004,219.00 | 21,782,563,658.00 |
| Interest expense | 0.00 | 0.00 |
| Handling charge and commission expense | 0.00 | 0.00 |
| Surrenders | 0.00 | 0.00 |
| Net claims paid | 0.00 | 0.00 |
| Net amount provided as policy reserve | 0.00 | 0.00 |
| Expenditure on policy dividends | 0.00 | 0.00 |
| Reinsurance premium expense | 0.00 | 0.00 |
| Taxes and surcharges | 251,976,903.00 | 226,900,931.00 |
| Selling expense | 687,405,767.00 | 692,725,472.00 |
| Administrative expense | 1,174,986,767.00 | 1,088,056,984.00 |
| R&D expense | 1,568,083,480.00 | 1,446,311,254.00 |
| Finance costs | 509,633,119.00 | 592,127,674.00 |
| Including: Interest expense | 726,022,773.00 | 1,045,208,338.00 |
| Interest income | 231,913,339.00 | 212,034,995.00 |
| Add: Other income | 1,145,102,546.00 | 708,917,047.00 |
| Return on investment (“-” for loss) | 15,694,811.00 | 13,643,831.00 |
| Including: Share of profit or loss of joint ventures and associates | -8,717,548.00 | -827,046.00 |
| Income from the derecognition of financial assets at amortized cost (“-” for loss) | 0.00 | 0.00 |
| Foreign exchange gain (“-” for loss) | 0.00 | 0.00 |
| Net gain on exposure hedges (“-” for loss) | 0.00 | 0.00 |
| Gain on changes in fair value (“-” for loss) | 16,408,377.00 | 34,134,042.00 |
| Credit impairment loss (“-” for loss) | 2,347,999.00 | 0.00 |
| Asset impairment loss (“-” for loss) | -615,496,194.00 | -128,159,228.00 |
| Asset disposal income (“-” for loss) | 2,846,459.00 | 148,256.00 |
| 3. Operating profit (“-” for loss) | 80,753,860.00 | 1,254,256,529.00 |
| Add: Non-operating income | 15,881,412.00 | 43,268,744.00 |
| Less: Non-operating expense | 14,163,570.00 | 2,745,286.00 |
| 4. Profit before tax (“-” for loss) | 82,471,702.00 | 1,294,779,987.00 |
| Less: Income tax expense | 200,222,357.00 | 452,920,271.00 |
| 5. Net profit (“-” for net loss) | -117,750,655.00 | 841,859,716.00 |
| 5.1 By operating continuity | ||
| 5.1.1 Net profit from continuing operations (“-” for net loss) | -117,750,655.00 | 841,859,716.00 |
| 5.1.2 Net profit from discontinued operations (“-” for net loss) | 0.00 | 0.00 |
| 5.2 By ownership | ||
| 5.2.1 Net profit attributable to owners of the Company as the parent | 566,676,460.00 | 1,051,781,919.00 |
| 5.2.1 Net profit attributable to non-controlling interests | -684,427,115.00 | -209,922,203.00 |
| 6. Other comprehensive income, net of tax | 50,132,108.00 | 153,368,686.00 |
| Attributable to owners of the Company as the parent | 52,015,219.00 | 164,858,780.00 |
| 6.1 Items that will not be reclassified to profit or loss | -11,802,049.00 | 32,749,507.00 |
| 6.1.1 Changes caused by remeasurements on defined benefit pension schemes | 0.00 | 0.00 |
| 6.1.2 Other comprehensive income that will not be reclassified to profit or loss under the equity method | 0.00 | 0.00 |
| 6.1.3 Changes in the fair value of investments in other equity instruments | -11,802,049.00 | 32,749,507.00 |
| 6.1.4 Changes in the fair value of the company’s credit risks | 0.00 | 0.00 |
| 6.1.5 Other | 0.00 | 0.00 |
| 6.2 Items that will be reclassified to profit or loss | 63,817,268.00 | 132,109,273.00 |
| 6.2.1 Other comprehensive income that will be reclassified to profit or loss under the equity method | 0.00 | |
| 6.2.2 Changes in the fair value of investments in other debt obligations | 0.00 | 0.00 |
| 6.2.3 Other comprehensive income arising from the reclassification of financial assets | 0.00 | 0.00 |
| 6.2.4 Allowance for credit impairments in investments in other debt obligations | 0.00 | 0.00 |
| 6.2.5 Reserve for cash flow hedges | 0.00 | 0.00 |
| 6.2.6 Differences arising from the translation of foreign currency-denominated financial statements | 63,817,268.00 | 132,109,273.00 |
| 6.2.7 Other | 0.00 | 0.00 |
| Attributable to non-controlling interests | -1,883,111.00 | -11,490,094.00 |
| 7. Total comprehensive income | -67,618,547.00 | 995,228,402.00 |
| Attributable to owners of the Company as the parent | 618,691,679.00 | 1,216,640,699.00 |
| Attributable to non-controlling interests | -686,310,226.00 | -221,412,297.00 |
| 8. Earnings per share | ||
| 8.1 Basic earnings per share | 0.014 | 0.030 |
| 8.2 Diluted earnings per share | 0.014 | 0.030 |
Where business combinations under common control occurred in the current period, the net profit achieved by the acquirees beforethe combinations was RMB0.00, with the amount for the same period of last year being RMB0.00.Legal representative: Chen Yanshun Chief Executive Officer: Liu XiaodongChief Financial Officer: Sun Yun Head of the Company’s Financial Department: Yang Xiaoping
4. Income Statement of the Company as the Parent
Unit: RMB
| Item | Q1 2020 | Q1 2019 |
| 1. Operating revenue | 458,313,194.00 | 1,550,181,250.00 |
| Less: Cost of sales | 4,593,916.00 | 5,726,539.00 |
| Taxes and surcharges | 8,049,055.00 | 11,878,427.00 |
| Selling expense | 0.00 | 9,331.00 |
| Administrative expense | 146,050,618.00 | 163,686,723.00 |
| R&D expense | 413,372,812.00 | 412,873,692.00 |
| Finance costs | 239,766,061.00 | 263,332,770.00 |
| Including: Interest expense | 253,001,175.00 | 299,804,031.00 |
| Interest income | 14,200,127.00 | 11,512,552.00 |
| Add: Other income | 244,223,994.00 | 227,895,820.00 |
| Return on investment (“-” for loss) | -8,717,548.00 | 805,532,954.00 |
| Including: Share of profit or loss of joint ventures and associates | -8,717,548.00 | -827,046.00 |
| Income from the derecognition of financial assets at amortized cost (“-” for loss) | 0.00 | 0.00 |
| Net gain on exposure hedges (“-” for loss) | 0.00 | 0.00 |
| Gain on changes in fair value (“-” for loss) | 0.00 | 0.00 |
| Credit impairment loss (“-” for loss) | -1,514,688.00 | 0.00 |
| Asset impairment loss (“-” for loss) | 0.00 | 0.00 |
| Asset disposal income (“-” for loss) | 0.00 | 0.00 |
| 2. Operating profit (“-” for loss) | -119,527,510.00 | 1,726,102,542.00 |
| Add: Non-operating income | 511,266.00 | 1,416,727.00 |
| Less: Non-operating expense | 52,759.00 | 206,858.00 |
| 3. Profit before tax (“-” for loss) | -119,069,003.00 | 1,727,312,411.00 |
| Less: Income tax expense | 0.00 | 189,406,330.00 |
| 4. Net profit (“-” for net loss) | -119,069,003.00 | 1,537,906,081.00 |
| 4.1 Net profit from continuing operations (“-” for net loss) | -119,069,003.00 | 1,537,906,081.00 |
| 4.2 Net profit from discontinued operations (“-” for net loss) | 0.00 | 0.00 |
| 5. Other comprehensive income, net of tax | -11,802,049.00 | 16,046,756.00 |
| 5.1 Items that will not be reclassified to profit or loss | -11,802,049.00 | 16,046,756.00 |
| 5.1.1 Changes caused by remeasurements on defined benefit pension schemes | 0.00 | 0.00 |
| 5.1.2 Other comprehensive income that will not be reclassified to profit or loss under the equity method | 0.00 | 0.00 |
| 5.1.3 Changes in the fair value of investments in other equity instruments | -11,802,049.00 | 16,046,756.00 |
| 5.1.4 Changes in the fair value of the company’s credit risks | 0.00 | 0.00 |
| 5.1.5 Other | 0.00 | 0.00 |
| 5.2 Items that will be reclassified to profit or loss | 0.00 | 0.00 |
| 5.2.1 Other comprehensive income that will be reclassified to profit or loss under the equity method | 0.00 | 0.00 |
| 5.2.2 Changes in the fair value of investments in other debt obligations | 0.00 | 0.00 |
| 5.2.3 Other comprehensive income arising from the reclassification of financial assets | 0.00 | 0.00 |
| 5.2.4 Allowance for credit impairments in investments in other debt obligations | 0.00 | 0.00 |
| 5.2.5 Reserve for cash flow hedges | 0.00 | 0.00 |
| 5.2.6 Differences arising from the translation of foreign currency-denominated financial statements | 0.00 | 0.00 |
| 5.2.7 Other | 0.00 | 0.00 |
| 6. Total comprehensive income | -130,871,052.00 | 1,553,952,837.00 |
| 7. Earnings per share | ||
| 7.1 Basic earnings per share | -0.006 | 0.044 |
| 7.2 Diluted earnings per share | -0.006 | 0.044 |
5. Consolidated Cash Flow Statement
Unit: RMB
| Item | Q1 2020 | Q1 2019 |
| 1. Cash flows from operating activities: | ||
| Proceeds from sale of commodities and rendering of services | 28,186,187,305.00 | 28,976,834,648.00 |
| Net increase in customer deposits and interbank deposits | 0.00 | 0.00 |
| Net increase in borrowings from the central bank | 0.00 | 0.00 |
| Net increase in loans from other financial institutions | 0.00 | 0.00 |
| Premiums received on original insurance contracts | 0.00 | 0.00 |
| Net proceeds from reinsurance | 0.00 | 0.00 |
| Net increase in deposits and investments of policy holders | 0.00 | 0.00 |
| Interest, handling charges and commissions received | 0.00 | 0.00 |
| Net increase in interbank loans obtained | 0.00 | 0.00 |
| Net increase in proceeds from repurchase transactions | 0.00 | 0.00 |
| Net proceeds from acting trading of securities | 0.00 | 0.00 |
| Tax rebates | 2,661,689,752.00 | 2,355,511,638.00 |
| Cash generated from other operating activities | 2,378,278,509.00 | 2,570,053,908.00 |
| Subtotal of cash generated from operating activities | 33,226,155,566.00 | 33,902,400,194.00 |
| Payments for commodities and services | 22,371,364,151.00 | 20,594,035,550.00 |
| Net increase in loans and advances to customers | 0.00 | 0.00 |
| Net increase in deposits in the central bank and in interbank loans granted | 0.00 | 0.00 |
| Payments for claims on original insurance contracts | 0.00 | 0.00 |
| Net increase in interbank loans granted | 0.00 | 0.00 |
| Interest, handling charges and commissions paid | 0.00 | 0.00 |
| Policy dividends paid | 0.00 | 0.00 |
| Cash paid to and for employees | 3,275,179,588.00 | 3,330,366,285.00 |
| Taxes paid | 877,551,385.00 | 1,145,908,172.00 |
| Cash used in other operating activities | 1,478,388,523.00 | 2,667,848,802.00 |
| Subtotal of cash used in operating activities | 28,002,483,647.00 | 27,738,158,809.00 |
| Net cash generated from/used in operating activities | 5,223,671,919.00 | 6,164,241,385.00 |
| 2. Cash flows from investing activities: | ||
| Proceeds from disinvestment | 7,088,558,339.00 | 9,102,274,502.00 |
| Return on investment | 42,462,797.00 | 103,065,934.00 |
| Net proceeds from the disposal of fixed assets, intangible assets and other long-lived assets | 2,505,929.00 | 23,832,600.00 |
| Net proceeds from the disposal of subsidiaries and other business units | 0.00 | 0.00 |
| Cash generated from other investing activities | 351,693,093.00 | 404,836,348.00 |
| Subtotal of cash generated from investing activities | 7,485,220,158.00 | 9,634,009,384.00 |
| Payments for the acquisition of fixed assets, intangible assets and other long-lived assets | 10,191,638,257.00 | 13,135,877,971.00 |
| Payments for investments | 4,900,152,790.00 | 7,598,763,556.00 |
| Net increase in pledged loans granted | 0.00 | 0.00 |
| Net payments for the acquisition of subsidiaries and other business units | 0.00 | 0.00 |
| Cash used in other investing activities | 485,596,441.00 | 1,583,359,747.00 |
| Subtotal of cash used in investing activities | 15,577,387,488.00 | 22,318,001,274.00 |
| Net cash generated from/used in investing activities | -8,092,167,330.00 | -12,683,991,890.00 |
| 3. Cash flows from financing activities: | ||
| Capital contributions received | 0.00 | 1,549,510,000.00 |
| Including: Capital contributions by non-controlling interests to subsidiaries | 0.00 | 1,549,510,000.00 |
| Borrowings obtained | 18,555,241,380.00 | 20,199,473,125.00 |
| Cash generated from other financing activities | 15,327,185.00 | 292,244,720.00 |
| Subtotal of cash generated from financing activities | 18,570,568,565.00 | 22,041,227,845.00 |
| Repayments of borrowings | 14,471,417,731.00 | 14,696,160,916.00 |
| Payments for interest and dividends | 1,850,451,609.00 | 1,916,272,904.00 |
| Including: Dividends paid by subsidiaries to non-controlling interests | 0.00 | 0.00 |
| Cash used in other financing activities | 226,677,401.00 | 761,344,064.00 |
| Subtotal of cash used in financing activities | 16,548,546,741.00 | 17,373,777,884.00 |
| Net cash generated from/used in financing activities | 2,022,021,824.00 | 4,667,449,961.00 |
| 4. Effect of foreign exchange rate changes on cash and cash equivalents | 234,579,051.00 | -265,879,224.00 |
| 5. Net increase in cash and cash equivalents | -611,894,536.00 | -2,118,179,768.00 |
| Add: Cash and cash equivalents, beginning of the period | 50,270,321,573.00 | 43,350,696,520.00 |
| 6. Cash and cash equivalents, end of the period | 49,658,427,037.00 | 41,232,516,752.00 |
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
| Item | Q1 2020 | Q1 2019 |
| 1. Cash flows from operating activities: | ||
| Proceeds from sale of commodities and rendering of services | 1,067,949,887.00 | 2,196,646,203.00 |
| Tax rebates | 0.00 | 0.00 |
| Cash generated from other operating activities | 91,767,665.00 | 83,421,848.00 |
| Subtotal of cash generated from operating activities | 1,159,717,552.00 | 2,280,068,051.00 |
| Payments for commodities and services | 1,352,312,807.00 | 121,424,803.00 |
| Cash paid to and for employees | 409,617,020.00 | 365,563,871.00 |
| Taxes paid | 147,997,702.00 | 310,536,542.00 |
| Cash used in other operating activities | 146,442,687.00 | 1,718,497,541.00 |
| Subtotal of cash used in operating activities | 2,056,370,216.00 | 2,516,022,757.00 |
| Net cash generated from/used in operating activities | -896,652,664.00 | -235,954,706.00 |
| 2. Cash flows from investing activities: | ||
| Proceeds from disinvestment | 0.00 | 306,360,000.00 |
| Return on investment | 0.00 | 537,081,499.00 |
| Net proceeds from the disposal of fixed assets, intangible assets and other long-lived assets | 0.00 | 140.00 |
| Net proceeds from the disposal of subsidiaries and other business units | 0.00 | 0.00 |
| Cash generated from other investing activities | 39,485,444.00 | 61,722,270.00 |
| Subtotal of cash generated from investing activities | 39,485,444.00 | 905,163,909.00 |
| Payments for the acquisition of fixed assets, intangible assets and other long-lived assets | 54,360,642.00 | 746,350,526.00 |
| Payments for investments | 4,147,118,750.00 | 1,281,730,200.00 |
| Net payments for the acquisition of subsidiaries and other business units | 0.00 | 0.00 |
| Cash used in other investing activities | 15,041,557.00 | 1,800,155,397.00 |
| Subtotal of cash used in investing activities | 4,216,520,949.00 | 3,828,236,123.00 |
| Net cash generated from/used in investing activities | -4,177,035,505.00 | -2,923,072,214.00 |
| 3. Cash flows from financing activities: | ||
| Capital contributions received | 0.00 | 0.00 |
| Borrowings obtained | 8,970,000,000.00 | 11,864,230,556.00 |
| Cash generated from other financing activities | 907,024,018.00 | 759,851,347.00 |
| Subtotal of cash generated from financing activities | 9,877,024,018.00 | 12,624,081,903.00 |
| Repayments of borrowings | 3,990,000,000.00 | 10,160,597,600.00 |
| Payments for interest and dividends | 247,128,977.00 | 441,999,300.00 |
| Cash used in other financing activities | 350,000.00 | 499,280.00 |
| Subtotal of cash used in financing activities | 4,237,478,977.00 | 10,603,096,180.00 |
| Net cash generated from/used in financing activities | 5,639,545,041.00 | 2,020,985,723.00 |
| 4. Effect of foreign exchange rate changes on cash and cash equivalents | 9,235,574.00 | -23,798,379.00 |
| 5. Net increase in cash and cash equivalents | 575,092,446.00 | -1,161,839,576.00 |
| Add: Cash and cash equivalents, beginning of the period | 3,680,770,048.00 | 3,829,814,050.00 |
| 6. Cash and cash equivalents, end of the period | 4,255,862,494.00 | 2,667,974,474.00 |
II Adjustments to the Financial Statements
1. Adjustments to the Financial Statements at the Beginning of the First Execution Year of any NewStandards Governing Financial Instruments, Revenue or Leases in 2020
√ Applicable □ Not applicable
Consolidated Balance Sheet
Unit: RMB
| Item | 31 December 2019 | 1 January 2020 | Adjusted |
| Current assets: | |||
| Monetary assets | 56,972,723,239.00 | 56,972,723,239.00 | 0.00 |
| Settlement reserve | 0.00 | 0.00 | 0.00 |
| Interbank loans granted | 0.00 | 0.00 | 0.00 |
| Held-for-trading financial assets | 5,809,184,994.00 | 5,809,184,994.00 | 0.00 |
| Derivative financial assets | 0.00 | 0.00 | 0.00 |
| Notes receivable | 331,145,492.00 | 331,145,492.00 | 0.00 |
| Accounts receivable | 18,135,687,806.00 | 18,170,971,650.00 | 35,283,844.00 |
| Accounts receivable financing | 0.00 | 0.00 | 0.00 |
| Prepayments | 626,985,706.00 | 626,985,706.00 | 0.00 |
| Premiums receivable | 0.00 | 0.00 | 0.00 |
| Reinsurance receivables | 0.00 | 0.00 | 0.00 |
| Receivable reinsurance contract reserve | 0.00 | 0.00 | 0.00 |
| Other receivables | 706,171,112.00 | 706,171,112.00 | 0.00 |
| Including: Interest receivable | 215,977,831.00 | 215,977,831.00 | 0.00 |
| Dividends receivable | 0.00 | 0.00 | 0.00 |
| Financial assets purchased under resale agreements | 0.00 | 0.00 | 0.00 |
| Inventories | 12,396,194,762.00 | 12,396,194,762.00 | 0.00 |
| Contractual assets | 0.00 | 0.00 | 0.00 |
| Assets classified as held for sale | 173,910,820.00 | 173,910,820.00 | 0.00 |
| Current portion of non-current assets | 0.00 | 0.00 | 0.00 |
| Other current assets | 9,296,637,067.00 | 9,330,892,119.00 | 34,255,052.00 |
| Total current assets | 104,448,640,998.00 | 104,518,179,894.00 | 69,538,896.00 |
| Non-current assets: | |||
| Loans and advances to customers | 0.00 | 0.00 | 0.00 |
| Investments in debt obligations | 0.00 | 0.00 | 0.00 |
| Investments in other debt obligations | 0.00 | 0.00 | 0.00 |
| Long-term receivables | 0.00 | 0.00 | 0.00 |
| Long-term equity investments | 2,718,037,934.00 | 2,718,037,934.00 | 0.00 |
| Investments in other equity instruments | 632,076,647.00 | 632,076,647.00 | 0.00 |
| Other non-current financial assets | 0.00 | 0.00 | 0.00 |
| Investment property | 1,241,242,850.00 | 1,241,242,850.00 | 0.00 |
| Fixed assets | 125,786,241,938.00 | 125,786,241,938.00 | 0.00 |
| Construction in progress | 87,376,782,527.00 | 87,376,782,527.00 | 0.00 |
| Productive living assets | 0.00 | 0.00 | 0.00 |
| Oil and gas assets | 0.00 | 0.00 | 0.00 |
| Right-of-use assets | 0.00 | 0.00 | 0.00 |
| Intangible assets | 7,416,416,829.00 | 7,416,416,829.00 | 0.00 |
| R&D expense | 0.00 | 0.00 | 0.00 |
| Goodwill | 707,603,856.00 | 707,603,856.00 | 0.00 |
| Long-term prepaid expense | 345,424,409.00 | 345,424,409.00 | 0.00 |
| Deferred income tax assets | 248,153,761.00 | 248,153,761.00 | 0.00 |
| Other non-current assets | 9,491,581,559.00 | 9,491,581,559.00 | 0.00 |
| Total non-current assets | 235,963,562,310.00 | 235,963,562,310.00 | 0.00 |
| Total assets | 340,412,203,308.00 | 340,481,742,204.00 | 69,538,896.00 |
| Current liabilities: | |||
| Short-term borrowings | 6,366,717,121.00 | 6,366,717,121.00 | 0.00 |
| Borrowings from the central bank | 0.00 | 0.00 | 0.00 |
| Interbank loans obtained | 0.00 | 0.00 | 0.00 |
| Trading financial liabilities | 0.00 | 0.00 | 0.00 |
| Derivative financial liabilities | 0.00 | 0.00 | 0.00 |
| Notes payable | 2,028,917,980.00 | 2,028,917,980.00 | 0.00 |
| Accounts payable | 21,183,567,553.00 | 21,217,822,605.00 | 34,255,052.00 |
| Advances from customers | 1,260,732,785.00 | 297,330,727.00 | -963,402,058.00 |
| Contractual liabilities | 0.00 | 963,402,058.00 | 963,402,058.00 |
| Financial assets sold under repurchase agreements | 0.00 | 0.00 | 0.00 |
| Customer deposits and interbank deposits | 0.00 | 0.00 | 0.00 |
| Payables for acting trading of securities | 0.00 | 0.00 | 0.00 |
| Payables for underwriting of securities | 0.00 | 0.00 | 0.00 |
| Payroll payable | 2,373,745,454.00 | 2,373,745,454.00 | 0.00 |
| Taxes payable | 730,996,129.00 | 730,996,129.00 | 0.00 |
| Other payables | 24,570,589,610.00 | 24,570,589,610.00 | 0.00 |
| Including: Interest payable | 721,325,540.00 | 721,325,540.00 | 0.00 |
| Dividends payable | 14,568,242.00 | 14,568,242.00 | 0.00 |
| Handling charges and commissions payable | 0.00 | 0.00 | 0.00 |
| Reinsurance payables | 0.00 | 0.00 | 0.00 |
| Liabilities directly associated with assets classified as held for sale | 0.00 | 0.00 | 0.00 |
| Current portion of non-current liabilities | 18,849,281,019.00 | 18,849,281,019.00 | 0.00 |
| Other current liabilities | 1,013,738,515.00 | 1,049,022,359.00 | 35,283,844.00 |
| Total current liabilities | 78,378,286,166.00 | 78,447,825,062.00 | 69,538,896.00 |
| Non-current liabilities: | |||
| Insurance contract reserve | 0.00 | 0.00 | 0.00 |
| Long-term borrowings | 107,730,595,615.00 | 107,730,595,615.00 | 0.00 |
| Bonds payable | 387,878,384.00 | 387,878,384.00 | 0.00 |
| Including: Preferred shares | 0.00 | 0.00 | 0.00 |
| Perpetual bonds | 0.00 | 0.00 | 0.00 |
| Lease liabilities | 0.00 | 0.00 | 0.00 |
| Long-term payables | 984,520,824.00 | 984,520,824.00 | 0.00 |
| Long-term payroll payable | 0.00 | 0.00 | 0.00 |
| Provisions | 16,457,010.00 | 16,457,010.00 | 0.00 |
| Deferred income | 2,204,400,566.00 | 2,204,400,566.00 | 0.00 |
| Deferred income tax liabilities | 1,451,825,357.00 | 1,451,825,357.00 | 0.00 |
| Other non-current liabilities | 8,200,542,412.00 | 8,200,542,412.00 | 0.00 |
| Total non-current liabilities | 120,976,220,168.00 | 120,976,220,168.00 | 0.00 |
| Total liabilities | 199,354,506,334.00 | 199,424,045,230.00 | 69,538,896.00 |
| Owners’ equity: | |||
| Share capital | 34,798,398,763.00 | 34,798,398,763.00 | 0.00 |
| Other equity instruments | 8,013,156,853.00 | 8,013,156,853.00 | 0.00 |
| Including: Preferred shares | 0.00 | 0.00 | 0.00 |
| Perpetual bonds | 8,013,156,853.00 | 8,013,156,853.00 | 0.00 |
| Capital reserves | 38,353,242,364.00 | 38,353,242,364.00 | 0.00 |
| Less: Treasury stock | 0.00 | 0.00 | 0.00 |
| Other comprehensive income | -4,566,639.00 | -4,566,639.00 | 0.00 |
| Specific reserve | 0.00 | 0.00 | 0.00 |
| Surplus reserves | 1,516,139,709.00 | 2,050,045,823.00 | 533,906,114.00 |
| General reserve | 0.00 | 0.00 | 0.00 |
| Retained earnings | 12,381,758,005.00 | 11,847,851,891.00 | -533,906,114.00 |
| Total equity attributable to owners of the Company as the parent | 95,058,129,055.00 | 95,058,129,055.00 | 0.00 |
| Non-controlling interests | 45,999,567,919.00 | 45,999,567,919.00 | 0.00 |
| Total owners’ equity | 141,057,696,974.00 | 141,057,696,974.00 | 0.00 |
| Total liabilities and owners’ equity | 340,412,203,308.00 | 340,481,742,204.00 | 69,538,896.00 |
Note for adjustment:
The Group began to implement the Accounting Standards for Business Enterprises No. 14 - Revenue revised in 2017 from 1 January2020. The Company adjusted related items of the Financial Statements at the Beginning of the First Execution Year according to therequirements of the standards.Balance Sheet of the Company as the Parent
Unit: RMB
| Item | 31 December 2019 | 1 January 2020 | Adjusted |
| Current assets: | |||
| Monetary assets | 3,680,770,048.00 | 3,680,770,048.00 | 0.00 |
| Trading financial assets | 0.00 | 0.00 | 0.00 |
| Derivative financial assets | 0.00 | 0.00 | 0.00 |
| Notes receivable | 84,230,531.00 | 84,230,531.00 | 0.00 |
| Accounts receivable | 646,533,115.00 | 4,659,505,636.00 | 4,012,972,521.00 |
| Accounts receivable financing | 0.00 | 0.00 | 0.00 |
| Prepayments | 77,682,682.00 | 77,682,682.00 | 0.00 |
| Other receivables | 4,827,398,094.00 | 4,827,398,094.00 | 0.00 |
| Including: Interest receivable | 11,884,080.00 | 11,884,080.00 | 0.00 |
| Dividends receivable | 941,634,611.00 | 941,634,611.00 | 0.00 |
| Inventories | 13,935,401.00 | 13,935,401.00 | 0.00 |
| Contractual assets | 0.00 | 0.00 | 0.00 |
| Assets classified as held for sale | 0.00 | 0.00 | 0.00 |
| Current portion of non-current assets | 0.00 | 0.00 | 0.00 |
| Other current assets | 109,497,897.00 | 109,497,897.00 | 0.00 |
| Total current assets | 9,440,047,768.00 | 13,453,020,289.00 | 4,012,972,521.00 |
| Non-current assets: | |||
| Investments in debt obligations | 0.00 | 0.00 | 0.00 |
| Investments in other debt obligations | 0.00 | 0.00 | 0.00 |
| Long-term receivables | 0.00 | 0.00 | 0.00 |
| Long-term equity investments | 159,389,864,760.00 | 159,389,864,760.00 | 0.00 |
| Investments in other equity instruments | 79,405,724.00 | 79,405,724.00 | 0.00 |
| Other non-current financial assets | 0.00 | 0.00 | 0.00 |
| Investment property | 280,525,802.00 | 280,525,802.00 | 0.00 |
| Fixed assets | 949,104,308.00 | 949,104,308.00 | 0.00 |
| Construction in progress | 358,933,667.00 | 358,933,667.00 | 0.00 |
| Productive living assets | 0.00 | 0.00 | 0.00 |
| Oil and gas assets | 0.00 | 0.00 | 0.00 |
| Right-of-use assets | 0.00 | 0.00 | 0.00 |
| Intangible assets | 1,493,632,264.00 | 1,493,632,264.00 | 0.00 |
| R&D expense | 0.00 | 0.00 | 0.00 |
| Goodwill | 0.00 | 0.00 | 0.00 |
| Long-term prepaid expense | 109,216,398.00 | 109,216,398.00 | 0.00 |
| Deferred income tax assets | 360,268,466.00 | 74,331,206.00 | -285,937,260.00 |
| Other non-current assets | 162,516,190.00 | 162,516,190.00 | 0.00 |
| Total non-current assets | 163,183,467,579.00 | 162,897,530,319.00 | -285,937,260.00 |
| Total assets | 172,623,515,347.00 | 176,350,550,608.00 | 3,727,035,261.00 |
| Current liabilities: | |||
| Short-term borrowings | 1,220,000,000.00 | 1,220,000,000.00 | 0.00 |
| Trading financial liabilities | 0.00 | 0.00 | 0.00 |
| Derivative financial liabilities | 0.00 | 0.00 | 0.00 |
| Notes payable | 0.00 | 0.00 | 0.00 |
| Accounts payable | 27,919,341.00 | 27,919,341.00 | 0.00 |
| Advances from customers | 2,117,568,995.00 | -150,706,885.00 | -2,268,275,880.00 |
| Contractual liabilities | 0.00 | 0.00 | 0.00 |
| Payroll payable | 252,206,075.00 | 252,206,075.00 | 0.00 |
| Taxes payable | 107,287,957.00 | 107,287,957.00 | 0.00 |
| Other payables | 5,260,470,974.00 | 5,260,470,974.00 | 0.00 |
| Including: Interest payable | 95,859,219.00 | 95,859,219.00 | 0.00 |
| Dividends payable | 6,451,171.00 | 6,451,171.00 | 0.00 |
| Liabilities directly associated with assets classified as held for sale | 0.00 | 0.00 | 0.00 |
| Current portion of non-current liabilities | 5,490,440,787.00 | 5,490,440,787.00 | 0.00 |
| Other current liabilities | 1,423,133.00 | 1,423,133.00 | 0.00 |
| Total current liabilities | 14,477,317,262.00 | 12,209,041,382.00 | -2,268,275,880.00 |
| Non-current liabilities: | |||
| Long-term borrowings | 33,310,701,574.00 | 33,310,701,574.00 | 0.00 |
| Bonds payable | 0.00 | 0.00 | 0.00 |
| Including: Preferred shares | 0.00 | 0.00 | 0.00 |
| Perpetual bonds | 0.00 | 0.00 | 0.00 |
| Lease liabilities | 0.00 | 0.00 | 0.00 |
| Long-term payables | 0.00 | 0.00 | 0.00 |
| Long-term payroll payable | 0.00 | 0.00 | 0.00 |
| Provisions | 0.00 | 0.00 | 0.00 |
| Deferred income | 4,627,393,256.00 | 4,627,393,256.00 | 0.00 |
| Deferred income tax liabilities | 0.00 | 656,250,000.00 | 656,250,000.00 |
| Other non-current liabilities | 33,297,240,830.00 | 33,297,240,830.00 | 0.00 |
| Total non-current liabilities | 71,235,335,660.00 | 71,891,585,660.00 | 656,250,000.00 |
| Total liabilities | 85,712,652,922.00 | 84,100,627,042.00 | -1,612,025,880.00 |
| Owners’ equity: | |||
| Share capital | 34,798,398,763.00 | 34,798,398,763.00 | 0.00 |
| Other equity instruments | 8,013,156,853.00 | 8,013,156,853.00 | 0.00 |
| Including: Preferred shares | 0.00 | 0.00 | 0.00 |
| Perpetual bonds | 8,013,156,853.00 | 8,013,156,853.00 | 0.00 |
| Capital reserves | 37,608,039,685.00 | 37,608,039,685.00 | 0.00 |
| Less: Treasury stock | 0.00 | 0.00 | 0.00 |
| Other comprehensive income | 193,638,576.00 | 193,638,576.00 | 0.00 |
| Specific reserve | 0.00 | 0.00 | 0.00 |
| Surplus reserves | 1,516,139,709.00 | 2,050,045,823.00 | 533,906,114.00 |
| Retained earnings | 4,781,488,839.00 | 9,586,643,866.00 | 4,805,155,027.00 |
| Total owners’ equity | 86,910,862,425.00 | 92,249,923,566.00 | 5,339,061,141.00 |
| Total liabilities and owners’ equity | 172,623,515,347.00 | 176,350,550,608.00 | 3,727,035,261.00 |
Note for adjustment:
The Group began to implement the Accounting Standards for Business Enterprises No. 14 - Revenue revised in 2017 from 1 January2020. The Company adjusted related items of the Financial Statements at the Beginning of the First Execution Year according to therequirements of the standards.
2. Retrospective Restatement of Previous Comparative Data due to the First Execution of any NewStandards Governing Financial Instruments or Leases in 2020
□ Applicable √ Not applicable
III Independent Auditor’s ReportIndicate by tick mark whether the financial statements above have been audited by an independent auditor.
□Yes √ No
These financial statements have not been audited by such an auditor.
Chairman of the Board (signature)：Chen Yanshun
Date of the Board’s approval of this Report: 27 April 2020