Luxshare Precision Industry Co., Ltd. Third Quarter Report 2020
Luxshare Precision Industry Co., Ltd.
Third Quarter 2020
2020-071
October 2020
This document is a translated version of the Chinese version . Third Quarter Report 2020 of Luxshare Precision Industry Co., Ltd.(“《立讯精密2020年第三季度报告》”), and the published . Third Quarter Report 2020 of Luxshare Precision Industry Co., Ltd. inthe Chinese version shall prevail. The complete published Chinese . Third Quarter Report 2020 of Luxshare Precision Industry Co.,Ltd. may be obtained at www.cninfo.com.cn.
Luxshare Precision Industry Co., Ltd. Third Quarter Report 2020
Section I. Important NoteThe Board of Directors, the Board of Supervisors, directors, supervisors and executivesof the Company hereby warrant that the information contained in this Third Quarter Reportis true, accurate and complete and this Third Quarter Report is free from anymisrepresentation, misleading statement or material omission, and agree to assume joint andseveral liability for this Third Quarter Report.All directors of the Company attended the meeting of the Board of Directors fordeliberating this Report.WANG Laichun, Principal of the Company, CFO WU Tiansong and Chief AccountantXIAO Na hereby represent that the financial statements contained in this Third QuarterReport are true, accurate and complete.
Luxshare Precision Industry Co., Ltd. Third Quarter Report 2020
Section II Company ProfileI. Main accounting data and financial highlightsDid the Company need to retrospectively adjust or re-state any accounting data of prior fiscal years?
□ Yes √ No
| September 30, 2020 | December 31, 2019 | Y/Y % Change | |||
| Total assets (RMB) | 65,776,702,745.24 | 49,377,910,671.23 | 33.21% | ||
| Net assets attributable to shareholders of the listed company (RMB) | 24,939,009,565.88 | 20,296,618,968.52 | 22.87% | ||
| Three-month period ended September 30, 2020 | Y/Y % Change | Nine-month period ended September 30, 2020 | Y/Y % Change | ||
| Operating income (RMB) | 23,076,494,141.40 | 40.75% | 59,528,120,290.26 | 57.33% | |
| Net profit attributable to shareholders of the listed company (RMB) | 2,141,839,306.57 | 54.54% | 4,679,614,065.03 | 62.06% | |
| Net profit attributable to shareholders of the listed company after deduction of extraordinary gain or loss (RMB) | 1,872,789,269.22 | 42.54% | 4,211,102,480.04 | 53.79% | |
| Net cash flows from operating activities (RMB) | -441,882,109.67 | -122.98% | 2,740,062,232.78 | -55.16% | |
| Basic earnings per share (RMB/share) | 0.31 | 55.00% | 0.67 | 63.41% | |
| Diluted earnings per share (RMB/share) | 0.31 | 55.00% | 0.67 | 63.41% | |
| Weighted average return on net assets | 8.90% | 1.10% | 20.67% | +3.63 percentage points | |
Items and amounts of extraordinary gain or loss
√ Applicable □ N/A
In RMB
| Item | Amount for Nine-month period ended September 30, 2020 | Remark |
| Gain or loss on disposal of non-current assets (including allowance for impairment of assets that has been written off) | -6,881,963.69 | |
| Government grants recognized in profit or loss (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 of the country) | 342,182,099.42 | |
| Gain or loss on assets under entrusted investment or management | 61,408,026.31 | |
| Gain or loss on changes in fair value of held-for-trading financial assets, derivative financial assets, financial liabilities held for trading and derivative financial liabilities, and gain on disposal of held-for-trading financial assets, derivative financial assets, financial liabilities held for trading, derivative financial liabilities and other debt instruments, except for effective hedges held in the ordinary course of business | 143,933,597.39 | |
| Other non-operating income and expenses | 2,855,786.85 | |
| Other items qualified as extraordinary gain or loss | 22,840,715.42 | |
| Less: Effect of income tax | 87,512,552.84 | |
| Effect of minority interest (exclusive of tax) | 10,314,123.87 | |
| Total | 468,511,584.99 | -- |
If the Company classifies any item of extraordinary gain or loss defined by or listed in the Explanatory Announcement No. 1 onInformation Disclosure for Companies Publicly Offering Securities - Extraordinary Gain or Loss as recurring profit or loss, pleaseexplain the reason.
Luxshare Precision Industry Co., Ltd. Third Quarter Report 2020
□ Applicable √ N/A
We have not classified any item of extraordinary gain or loss defined by or listed in the Explanatory Announcement No. 1 onInformation Disclosure for Companies Publicly Offering Securities - Extraordinary Gain or Loss as recurring profit or loss in thereporting period.II. Number of shareholders and top 10 shareholders’ shareholding structure at the end of the reportingperiod
1. Total number of ordinary shareholders and preferred shareholders whose voting rights had beenrestituted and top 10 shareholders’ shareholding structure
Unit: Share
| Total number of ordinary shareholders at the end of the reporting period | 290,594 | Total number of preferred shareholders whose voting rights had been restituted at the end of the reporting period (if any) | 0 | |||||||||
| Shareholding of top 10 shareholders | ||||||||||||
| Shareholder | Status of shareholder | Shareholding percentage | No. of shares held | No. of non-tradable shares held | Pledge or freeze | |||||||
| Status of shares | Number | |||||||||||
| Luxshare Limited | Foreign corporation | 41.02% | 2,870,246,069 | 0 | Pledged | 1,072,573,363 | ||||||
| Hong Kong Securities Clearing Company Limited | Foreign corporation | 6.26% | 438,222,676 | 0 | ||||||||
| Central Huijin Asset Management Co., Ltd. | Stated owned corporation | 1.38% | 96,584,014 | 0 | ||||||||
| China Securities Finance Corporation Limited | Domestic non-stated owned corporation | 1.21% | 84,428,888 | 0 | ||||||||
| Bank of China - China AMC Zhongzheng 5G Communication ETF | Others | 0.70% | 48,909,263 | 0 | ||||||||
| Protek Shanghai Ltd. | Domestic non-stated owned corporation | 0.57% | 39,845,105 | 0 | ||||||||
| E Fund - Agricultural Bank of China - E Fund Zhongzheng Financial Asset Management Plan | Others | 0.55% | 38,656,343 | 0 | ||||||||
| China AMC- Agricultural Bank of China - China AMC Zhongzheng Financial Asset Management Plan | Others | 0.55% | 38,576,831 | 0 | ||||||||
| Zhong Ou Fund - Agricultural Bank of China - Zhong Ou Zhongzheng Financial Asset Management Plan | Others | 0.55% | 38,557,184 | 0 | ||||||||
| Yinhua Fund - Agricultural Bank of China - Yinhua Zhongzheng Financial Asset Management Plan | Others | 0.55% | 38,508,814 | 0 | ||||||||
| Shareholding of top 10 tradable shareholders | ||||||||||||
| Shareholder | No. of tradable shares held | Type of shares | ||||||||||
| Type of shares | Number | |||||||||||
| Luxshare Limited | 2,870,246,069 | RMB-denominated ordinary share | 2,870,246,069 | |||||||||
| Hong Kong Securities Clearing Company Limited | 438,222,676 | RMB-denominated ordinary share | 438,222,676 | |||||||||
| Central Huijin Asset Management Co., Ltd. | 96,584,014 | RMB-denominated ordinary share | 96,584,014 | |||||||||
| China Securities Finance Corporation Limited | 84,428,888 | RMB-denominated ordinary share | 84,428,888 | |||||||||
| Bank of China - China AMC Zhongzheng 5G Communication ETF | 48,909,263 | RMB-denominated ordinary share | 48,909,263 | |||||||||
| Protek Shanghai Ltd. | 39,845,105 | RMB-denominated ordinary share | 39,845,105 | |||||||||
Luxshare Precision Industry Co., Ltd. Third Quarter Report 2020
| E Fund - Agricultural Bank of China - E Fund Zhongzheng Financial Asset Management Plan | 38,656,343 | RMB-denominated ordinary share | 38,656,343 | |
| China AMC- Agricultural Bank of China - China AMC Zhongzheng Financial Asset Management Plan | 38,576,831 | RMB-denominated ordinary share | 38,576,831 | |
| Zhong Ou Fund - Agricultural Bank of China - Zhong Ou Zhongzheng Financial Asset Management Plan | 38,557,184 | RMB-denominated ordinary share | 38,557,184 | |
| Yinhua Fund - Agricultural Bank of China - Yinhua Zhongzheng Financial Asset Management Plan | 38,508,814 | RMB-denominated ordinary share | 38,508,814 | |
| Affiliates or concert parties among the shareholders listed above | 1. Luxshare Limited is our controlling shareholder. 2. We are not aware whether there are affiliates or concert parties as defined in the Administrative Measures for Information Disclosure by the Listed Companies Relating to Changes in Shares Held by Shareholders among the shareholders listed above. | |||
| Margin trading conducted by top 10 shareholders (if any) | N/A | |||
Did any top 10 ordinary shareholder or top 10 holder of tradable ordinary shares conduct any transaction under repurchase agreementduring the reporting period?
□ Yes √ No
No top 10 ordinary shareholder or top 10 holder of tradable ordinary shares has conducted any transaction under repurchaseagreement during the reporting period
2. Total number of holders of preferred shares and shareholding of top 10 preferred shareholders
□ Applicable √ N/A
Luxshare Precision Industry Co., Ltd. Third Quarter Report 2020
Section III. Significant MattersI. Changes in main financial data and financial highlights during the reporting period and thereasons
√ Applicable □ N/A
The COVID-19 has been spreading continuously in the world since the beginning of 2020, which has posed a serious threat topeople's health and life and resulted in a significant increase in the uncertainty of end devices consumption willingness. TheChina-US trade friction and technology decoupling are becoming increasingly severe, and the global industrial chain is faced withunprecedented challenges. Under numerous challenges, the Company has unswervingly carried out the development plan andobjectives formulated by the core management. When encountering problems, the Company made prudent assessment and flexibleresponse, continued to work with spirit of determination, cooperation and striving for perfection, gave full play to the global layout,automation, resource integration and other related advantages, and achieved the rapid development of various businesses on schedule.During the reporting period, the Company proceeded with the wearable device business smoothly with excellent product quality andyield; the precision systematic packaging process continued to be outstanding, and the product shipment situation progressedsmoothly as expected; the high-speed transmission, power supply and other product technical capabilities and advantages werecontinuously consolidated; the automobile electronic components product line had a steady development. While refining andoptimizing the existing products, the Company continues to pay attention to and layout new products and businesses of consumerelectronics, striving to lay a solid foundation for the realization of the company's long-term sustainable development.During the reporting period, due to the Company's mass production of new products and expansion of overseas productioncapacity, the Company's inventory increased to a certain extent compared with the normal targeted level, including the increase inmaterial preparation of new products by about 2.7 billion yuan, the increase in inventory of new finished products by about 2.4billion yuan, and the increase in overseas production capacity by about 1.7 billion yuan. According to the Company's sales plan, thenew material preparation and finished product inventory beyond the above targeted level are expected to be sold in the period fromOctober to November this year, the increased inventory due to the expansion of overseas production capacity is expected to begradually improving and reduced in the fourth quarter of this year with the continuous development of production and operation, andafter those the inventory will return to the normal targeted level.From the beginning of the year to the end of the reporting period, the Company realized operating revenues of 59.528 billionyuan, a 57.33% increase year over year, and the net profit attributable to shareholders of the listed company totalled 4.680 billionyuan, a 62.06% increase year over year. The changes in major accounting accounts and financial highlights and the reasons are asfollows:
1. The held-for-trading financial assets increased by 82.37% as compared with that on December 31, 2019, an increase of 1,255.6341million yuan, mainly due to the increase of financial management business and the impact of changes in forward foreign exchangebusiness;
2. Notes receivable increased by 165.81% as compared with that on December 31, 2019, an increase of 110.883 million yuan, mainlydue to the increase of note business of subsidiaries;
3. The prepayments increased by 160.37% as compared with that on December 31, 2019, with an increase of 340,017 million yuan,mainly due to the payment of trade account receivable;
4. Other receivables increased by 48.86% as compared with that on December 31, 2019, an increase of 165.2672 million yuan,
Luxshare Precision Industry Co., Ltd. Third Quarter Report 2020
mainly due to other current accounts and equity accounts receivable from customers;
5. The inventory increased by 120.66% as compared with that on December 31, 2019, an increase of 9,291.5738 million yuan,mainly due to the increase of orders in the second half of this year, the expansion of mass production of new products and overseasproduction capacity, and material preparation;
6. The long-term equity investment increased by 61.88% as compared with that on December 31, 2019, an increase of 187.5287million yuan, mainly due to the increase of investment companies;
7. The construction in progress increased by 65.81% as compared with that on December 31, 2019, an increase of 569.589 millionyuan, mainly due to the increase of engineering construction and equipment transformation of the subsidiaries;
8. Other non-current assets increased by 71.17% as compared with that on December 31, 2019, an increase of 1,019.6147 millionyuan, mainly due to the Company's prepayment for equipment, engineering and land;
9. The short-term borrowings increased by 96.08% as compared with that on December 31, 2019, an increase of 4,003.0401 millionyuan, mainly due to the Company's security funds reserved for the Company's growth rate;
10. Notes payable decreased by 48.87% as compared with that on December 31, 2019, a decrease of 100.9177 million yuan, mainlydue to the decrease of note business of subsidiaries;
11. The tax payable increased by 86.86% as compared with that on December 31, 2019, an increase of 284.5866 million yuan,mainly due to the rapid growth of business volume and various taxes;
12. Other accounts payable increased by 77.20% as compared with that on December 31, 2019, an increase of 272.049 million yuan,mainly due to the other payment of trade account receivable;
13. The current portion of non-current liabilities decreased by 80.23% as compared with that on December 31, 2019, a decrease of
294.0904 million yuan, mainly due to the repayment of long-term borrowings due within one year;
14. Other current liabilities increased by 152.24% as compared with that on December 31, 2019, an increase of 983.654 million yuan,mainly due to the increase of short-term financing funds;
15. The operating income increased by 57.33% year over year, an increase of 21,691.9819 yuan, mainly due to the Company's yearover year performance growth;
16. The operating costs increased by 58.65% year over year, an increase of 17,649.2247 yuan, mainly due to the Company'sperformance growth;
17. The selling expenses increased by 37.99% year over year, an increase of 122.4666 million yuan, mainly due to the increase ofexpenses related the performance growth;
18. The administrative expenses increased by 66.68% year over year, an increase of 533.1585 million yuan, mainly due to theincrease of expenses related the performance growth;
19. The R&D expenses increased by 54.82% year over year, an increase of 1,581.4963 million yuan, mainly due to an increase ofR&D expenditure;
20. Other income increased by 123.19% year over year, an increase of 188.773 million yuan, mainly due to the increase ofgovernment subsidies;
21. The investment income increased by 47.34% year over year, an increase of 48.0359 million yuan, mainly due to the income ofwealth management;
Luxshare Precision Industry Co., Ltd. Third Quarter Report 2020
22. The net cash flows from operating activities decreased by 55.16% year over year, a decrease of 3,370.9155 million yuan, mainlydue to the increase of order quantity, material preparation and related expenses;
23. The net cash flow from investment activities decreased by 83.19% year over year, a decrease of 3,132.1727 million yuan, mainlydue to the increase of investment activities in purchasing financial products;
24. The net cash flow from financing activities increased by 46.58% year over year, an increase of 6,115.6475 million yuan, mainlydue to the increase of financing loans.
II. Analysis and explanation of the progress of key matters and their impacts and solutions
√ Applicable □ N/A
1. 2018 stock option incentive plan
On the authority of the 2nd shareholders’ meeting in 2018, the 13th session of the 4th Board of Directors and the 13th session of the4th Board of Supervisors determined that the vesting conditions for the first vesting period of the 2018 stock option incentive planhave been satisfied. 1,762 awardees who have satisfied the vesting conditions may exercise up to 24,465,506 stock options in the firstvesting period at the exercise price of RMB13.48 per share at their sole discretion.On June 17, 2020, we implemented the equity distribution proposal for the year of 2019, pursuant to which, on the basis of the totalshare capital of 5,372,327,958 shares, we distributed to all shareholders a cash dividend of RMB1.199884 (inclusive of tax) per 10shares, or RMB644,617,443.60 in total, and 2.999711 bonus shares per 10 shares issued through capitalization of the capital reserve,as a result of which, our total share capital was increased to 6,983,871,085 shares. Accordingly, we adjusted the exercise price andnumber of stock options under the 2018 stock option incentive plan. After such adjustment, the number of outstanding stock optionswas increased from 99,001,310 stock options to 128,698,841 stock options, and their exercise price was adjusted from RMB13.48per share to RMB10.28 per share.On September 25, 2020, the first vesting period of the 2018 stock option incentive plan ended. There were an additional 24,807,258shares issued in total after the 1762 incentive awardees exercised their stock options during the vesting period at their sole discretion,with a total of 1,481,038 additional shares during the reporting period.
2. 2019 stock option incentive plan
We adopted the 2019 stock option incentive plan upon approval by the 7th session of the 4th Board of Directors and the 1stextraordinary shareholders’ meeting in 2019.The first grant of share options under the plan was completed on April 22, 2019 and registered on June 12, 2019, wherein 50,076,000stock options in total, representing 1.22% of our total share capital, were granted to 348 awardees, at the exercise price of RMB23.36per share (option short name: Luxshare JLC2; option code: 037825).On July 5, 2019, we implemented the equity distribution proposal for the year of 2018, pursuant to which, on the basis of the totalshare capital of 4,114,616,722 shares, we distributed to all shareholders a cash dividend of RMB0.5 (inclusive of tax) per 10 shares,or RMB205,730,836.10 in total, and 3 bonus shares per 10 shares issued through capitalization of the capital reserve, as a result ofwhich, our total share capital was increased to 5,349,001,738 shares. Accordingly, we adjusted the number and exercise price ofstock options under the 2019 stock option incentive plan. After such adjustment, the exercise price of the stock options granted forthe first time was adjusted from RMB23.36 per share to RMB17.93 per share, and the number of such stock options was increasedfrom 50,076,000 stock options to 65,098,800 stock options, and the number of the reserved stock options thereunder was adjustedfrom 12,519,000 stock options to 16,274,700 stock options.The reserved stock options under the 2019 stock option incentive plan granted 263 awardees to 16,274,700 stock options on
Luxshare Precision Industry Co., Ltd. Third Quarter Report 2020
November 27, 2019, and registered on January 21, 2020, at the exercise price of RMB17.93 per share.On June 17, 2020, we implemented the equity distribution proposal for the year of 2019, pursuant to which, on the basis of the totalshare capital of 5,372,327,958 shares, we distributed to all shareholders a cash dividend of RMB1.199884 (inclusive of tax) per 10shares, or RMB644,617,443.60 in total, and 2.999711 bonus shares per 10 shares issued through capitalization of the capital reserve,as a result of which, our total share capital was increased to 6,983,871,085 shares; At the same time, 8 awardees under the incentiveplan resigned from June 12, 2019 to June 17, 2020. Accordingly, we adjusted the number of awardees and the number and exerciseprice of stock options under the 2019 stock option incentive plan. After such adjustment, the number of awardees receiving the firstgrant of share options was adjusted from 348 to 340, the number of such stock options granted for the first time was increased from65,098,800 stock options to 84,626,558 stock options, the exercise price of such stock options was adjusted from RMB17.93 pershare to RMB13.70 per share, and the number of the reserved stock options thereunder was adjusted from 16,241,700 stock optionsto 21,113,740 stock options, and the exercise price of such stock options was adjusted from RMB17.93 per share to RMB13.70 pershare.On the authority of the 1st extraordinary shareholders’ meeting in 2019, the 19th session of the 4th Board of Directors and the 19thsession of the 4th Board of Supervisors determined that the vesting conditions for the first vesting period of the 2019 stock optionincentive plan have been satisfied. 339 awardees who have satisfied the vesting conditions may exercise up to 16,456,708 stockoptions in the first vesting period at the exercise price of RMB13.70 per share at their sole discretion.As of September 30, 2020, there were additional 11,435,118 shares issued with respect to the stock options granted for the first timeunder the 2019 stock option incentive plan.
3. Convertible corporate bonds
On July 11, 2019, the 13th session of the 4th Board of Directors of the Company deliberated and adopted the Proposal on theCompany's Plan for Public Issuance of Convertible Corporate Bonds and other relevant proposals. For details, please refer to theLuxshare Precision: Plan for Public Issuance of Convertible Corporate Bonds and other announcement documents disclosed on theCompany's designated information disclosure media, i.e. Cninfo, at http://www.cninfo.com.cn. The types of securities to be issuedthis time are convertible corporate bonds that can be converted into A shares of the Company. The convertible bonds and the Ashares to be converted in the future will be listed on the Shenzhen Stock Exchange. According to the requirements of relevant lawsand regulations and normative documents, and in combination with the Company's financial condition and investment plan, the totalamount of funds raised by the issuance of convertible bonds does not exceed RMB 3 billion (inclusive). The relevant proposals havebeen deliberated and passed by the Company’s second extraordinary general meeting of shareholders in 2019 on August 2, 2019.On September 18, 2019, the Company received the Acceptance Request for Administrative License of China Securities RegulatoryCommission (Acceptance No.: 192436) issued by China Securities Regulatory Commission, and CSRC reviewed the administrativelicense application materials of Approval for Listed Companies to Issue Convertible Corporate Bonds submitted by the Company inaccordance with the law. The Company's application materials are complete and has obtained the Acceptance Request forAdministrative License of China Securities Regulatory Commission.On October 24, 2019, the Company received the First Review of the Application for Administrative Licensing from China SecuritiesRegulatory Commission (No. 192436) issued by China Securities Regulatory Commission. The CSRC has reviewed theadministrative license application materials of Approval for Listed Companies to Issue Convertible Corporate Bonds submitted bythe Company in accordance with the law, which requires the Company and the sponsor to make written statements and explanationson relevant issues. The Company and relevant intermediaries have implemented, checked and responded to the relevant issues in thefeedback one by one in accordance with the requirements of the above feedback, and made public disclosure of the reply to thefeedback according to the relevant requirements. For details, please refer to the Luxshare Precision: Announcement on Reply toFeedback on Application Documents for Public Issuance of Convertible Corporate Bonds disclosed on the Company's designated
Luxshare Precision Industry Co., Ltd. Third Quarter Report 2020
information disclosure media, i.e. Cninfo, at http://www.cninfo.com.cn.On January 9, 2020, the Issuance Examination Committee of the China Securities Regulatory Commission (“CSRC”) examined andapproved the application from Luxshare Precision Industry Co., Ltd. for issuance of convertible corporate bonds.In February 2020, we received the Reply on Approving the Public Issuance of Convertible Corporate Bonds by Luxshare PrecisionIndustry Co., Ltd. (Zheng Jian Xu Ke [2020] No. 247) from the CSRC, which approved us publicly issuing convertible corporatebonds in an aggregate amount of RMB3 billion with a term of six years.In July 2020, the 20
th session of the 4
th
Board of Directors and the first general meeting of shareholders in 2020 deliberated andadopted the Proposal on Extending the Term of the Resolution of the General Meeting of Shareholders on the Public Issuance ofConvertible Corporate Bonds and other relevant proposals. For details, please refer to the Luxshare Precision: Announcement onextending Term of the Resolution and Authorization of the General Meeting of Shareholders on the Public Issuance of ConvertibleCorporate Bonds disclosed on the Company's designated information disclosure media, i.e. Cninfo, at http://www.cninfo.com.cn. TheCompany will extend the term of the resolution and authorization of the general meeting of shareholders for 12 months from the dateof expiration.Progress of share repurchase:
□ Applicable √ N/A
Progress of sale of repurchased shares through call auction:
□ Applicable √ N/A
III. Commitments made by the actual controller, shareholders, affiliates and acquirer of theCompany, the Company itself and other related parties that failed to be fulfilled as at the endof the reporting period
□ Applicable √ N/A
There wasn’t any commitment made by us or any of our actual controller, shareholders, affiliates or acquirer, or other related partiesthat failed to be fulfilled at the end of the reporting period.IV. Investment in financial assets
Luxshare Precision Industry Co., Ltd. Third Quarter Report 2020
1. Investment in securities
√ Applicable □ N/A
In RMB
| Type of security | Security code | Short name | Initial investment cost | Method of measurement | Opening carrying amount | Gain or loss on changes in fair value in the reporting period | Aggregate changes in fair value recorded in equity | Amount acquired in the reporting period | Amount sold in the reporting period | Gain or loss in the reporting period | Closing carrying amount | Accounting item | Source of funds |
| Stock listed on domestic or overseas market | 603595 | Tony Electronic | 22,500,000.00 | Fair value | 170,733,150.00 | -35,587,400.00 | 109,132,853.44 | 0.00 | 25,749,472.10 | 22,013,608.73 | 147,758,884.80 | Investment in other equity instruments | Self-owned funds |
| Total | 22,500,000.00 | -- | 170,733,150.00 | -35,587,400.00 | 109,132,853.44 | 0.00 | 25,749,472.10 | 22,013,608.73 | 147,758,884.80 | -- | -- | ||
| Disclosure date of the announcement of the board of directors approving the investment in securities | |||||||||||||
| Disclosure date of the announcement of the shareholders’ meeting approving the investment in securities (if any) | |||||||||||||
2 Investment in derivatives
√ Applicable □ N/A
In RMB
| Counterparty | Affiliation | Whether or not a related-party transaction | Type of derivative | Initial investment cost | Date of commencement | Date of termination | Opening balance | Amount acquired in the reporting period | Amount sold in the reporting period | Allowance for impairment loss (if any) | Closing balance | Ratio of closing balance to the net asset as at the end of the reporting period | Actual gain or loss in the reporting period |
| Bank | Non-affiliate | No | Forward contract | 2,263,776,900 | 2,263,776,900 | 11,570,097,919.95 | 12,956,733,939.95 | 877,140,880 | 3.52% | 166,383,972.68 | |||
| Bank | Non-affiliate | No | Option | 1,203,394,500 | 1,203,394,500 | 9,769,088,450 | 7,441,446,100 | 3,531,036,850 | 14.16% | 50,365,850 | |||
| Total | 3,467,171,400 | -- | -- | 3,467,171,400 | 21,339,186,369.95 | 20,398,180,039.95 | 4,408,177,730 | 17.68% | 216,749,822.68 | ||||
| Source of funds | Self-owned funds | ||||||||||||
| Whether or not involved in any litigation | N/A | ||||||||||||
| Disclosure date of the announcement of the board of directors approving the investment in derivatives (if any) | August 20, 2019 | ||||||||||||
| April 20, 2020 | |||||||||||||
| Disclosure date of the announcement of the shareholders’ meeting approving the investment in derivatives (if any) | May 13, 2020 | ||||||||||||
| Analysis of risks associated with the derivatives held in the reporting period (including without limitation market risk, liquidity risk, credit risk, operational risk and legal risk) and related risk control measures | 1. We conduct foreign exchange derivative transactions for the purpose of fixing costs, and avoiding and preventing foreign exchange and interest rate risks, and prohibit any speculation. 2. We have established strict business management policy regarding financial derivative transactions, which contain explicit provisions on the principle of operation, approving power, internal operating process, information segregation measures, internal risk controls, information disclosure and other issues relating to financial derivative transactions, to control the risks associated with such transactions. 3. We carefully examine the terms of contracts entered into with the relevant banks, and strictly implement the risk management policy to prevent legal risks. 4. Our Finance Department continuously follows up on the changes in the market price or fair value of the relevant foreign exchange derivatives, promptly assesses the changes in risk exposures of such foreign exchange derivatives, reports to the management on a regular basis, promptly reports the abnormal situations discovered, calls attention to the relevant risks, and takes the appropriate emergency measures. | ||||||||||||
Luxshare Precision Industry Co., Ltd. Third Quarter Report 2020
| 5. In order to prevent any delay in the delivery of forward exchange contracts, we attach great importance to the management of accounts receivable, and have established safety management measures to prevent any delay in the payment of accounts receivable. 6. Our Internal Audit Department is responsible for supervising and auditing the decision-making, management, execution and other issues in respect of foreign exchange derivative transactions. | |
| Changes in the market price or fair value of the derivatives held in the reporting period (in the analysis of the fair value of derivatives, the specific approaches, assumptions and parameters used shall be disclosed) |
| Whether there’s any material change in the accounting policies and accounting principles for the measurement of derivatives in the reporting period as compared with the preceding reporting period | No material change |
| Special opinion issued by the independent directors regarding the Company’s investment in derivatives and related risk control measures | We conduct foreign exchange derivative transactions for the purpose of avoiding foreign exchange risk arising from fluctuation of the foreign exchange rate of RMB, and effectively controlling the uncertainties of costs caused by foreign exchange risk. We have established the Business Management Policy Regarding Financial Derivative Transactions, to enhance risk management and control over foreign exchange derivative transactions. In addition, we only provide self-owned funds, rather than any offering proceeds, as deposit for derivative transactions. The review, voting and other procedures relating to such transactions have complied with the Company Law, the AOA and other applicable regulations. |
Luxshare Precision Industry Co., Ltd. Third Quarter Report 2020
V. Progress of projects invested with offering proceeds
√ Applicable □ N/A
In 2016, with the approval from China Securities Regulatory Commission through Reply on the Approval for Issuance of Non-publicShares by Luxshare Precision Industry Co., Ltd. (Zheng Jian Xu Ke [2016] No. 1323), Luxshare Precision issued 234,096,692RMB-denominated ordinary shares (A shares) to specific objects in the form of non-public offering at the price of RMB19.65 pershare, and raised a total amount of RMB 4,599,999,997.80 yuan and the net amount of raised funds is RMB 4,589,446,035.54 yuanafter deducting the issuance-related expenses of 10,553,962.26 yuan. The above raised funds have been verified and confirmed byBDO China Shu Lun Pan CPAs (special general partnership), and issued the capital verification report (Xin Kuai Shi Bao Zi [2016]No. 211754) on September 30, 2016.As of December 31, 2019, the actual total investment out of the Company's raised funds is 4,594.31 million yuan, all the investmentfrom the funds raising projects have been completed and the remaining funds of all the funds raising projects are 154.49 million yuanwhich has been permanently used to supplement the working capital.VI. Forecast of the results of operation in 2020Whether the estimated net profit for the period from the beginning of the current year to the end of the next reporting period will benegative or vary greatly from the corresponding period in the preceding year and the reasons thereof:
√ Applicable □ N/A
Result forecast: Continue to increase.Type of result forecast: Data of the relevant period
VII. Major contract of daily operation
□ Applicable √ N/A
VIII. Entrusted wealth management
√ Applicable □ N/A
In RMB0’000
| Type | Source of funds | Total amount | Outstanding amount | Overdue amount |
| Bank wealth management amount | Self-owned funds | 265,817.16 | 265,817.16 | 0 |
| Total | 265,817.16 | 265,817.16 | 0 | |
High-risk entrusted wealth management products that are significant individually, illiquid or not principal protected:
□ Applicable √ N/A
Entrusted wealth management products the principal of which may be unrecoverable or which may otherwise be impaired:
| January 1-December 31, 2020 | January 1- December 31, 2019 | Y/Y % Change | ||||||
| Estimated aggregate net profit (RMB0’000) | 707,073.1 | -- | 730,642.2 | 471,382.06 | Increase | 50.00% | -- | 55.00% |
| Basic earnings per share (yuan/share) | 1.01 | -- | 1.05 | 0.67 | Increase | 50.75% | -- | 56.72% |
| Explanation | Under the comprehensive forward-looking planning of the core management and the efficient execution of all the employees, the Company's consumer electronics, communications and automobile businesses are progressing smoothly, and it is expected to continue to achieve high-speed growth during the forecast period. | |||||||
Luxshare Precision Industry Co., Ltd. Third Quarter Report 2020
□ Applicable √ N/A
IX. External guarantees in contravention of the regulations
□ Applicable √ N/A
We have not provided any external guarantee in contravention of the applicable regulations during the reporting period.X. Occupation by the controlling shareholder and its affiliates of the funds of Company fornon-operating purpose
□ Applicable √ N/A
Our controlling shareholder and its affiliates have not occupied our funds for non-operating purpose during the reporting period.XI. Registration form of receiving research, communication, interview and other activitiesduring the reporting period
√ Applicable □ N/A
| Reception time | Reception location | Reception method | Reception object type | Reception object | Main contents in discussion and offered materials | Basic information index of survey |
| August 25,2020 | Meeting room, 313 Beihuan Road, Qingxi Town, Dongguan, Guangdong | Telephone | Institution | Institutional investor | Company performance in the first half of 2020 and company profile | For details, please refer to 002475 Luxshare Precision: Survey Information 20200827 disclosed on Cninfo. on August 27, 2020 |
| September 16, 2020 | Meeting room, 399 Baisheng Road, Jinxi Town, Kunshan, Jiangsu | Site survey | Institution | Institutional investor | Company profile and future development layout | For details, please refer to 002475 Luxshare Precision: Investor Relations Management Archives 20200919 disclosed on Cninfo. on September 19, 2020 |
Section IV. Financial ReportI. Financial Statements
1. Consolidated balance sheet
Prepared by: Luxshare Precision Industry Co., Ltd.
In RMB
| Item | September 30, 2020 | December 31, 2019 |
| Current Assets: | ||
| Cash and bank balances | 6,697,855,882.25 | 6,180,466,259.01 |
| Balances with clearing agencies | ||
| Placements with banks and other financial institutions | ||
| Held-for-trading financial assets | 2,780,000,199.18 | 1,524,366,132.75 |
| Derivative financial assets | ||
| Notes receivable | 177,756,894.42 | 66,873,926.97 |
| Accounts receivable | 13,607,333,340.50 | 13,243,625,572.22 |
| Receivables financing | ||
| Prepayments | 552,035,692.11 | 212,018,611.91 |
| Premiums receivable | ||
| Amounts receivable under reinsurance contracts | ||
| Reinsurer’s share of insurance contract reserves | ||
| Other receivables | 503,505,143.28 | 338,237,923.96 |
| Including: Interest receivable | 4,868,753.56 | |
| Dividends receivable | ||
| Financial assets purchased under resale agreements | ||
| Inventories | 16,992,431,692.81 | 7,700,857,888.16 |
| Contract assets | ||
| Held-for-sale assets | ||
| Current portion of non-current assets | ||
| Other current assets | 1,565,173,455.52 | 1,484,451,151.73 |
| Total current assets | 42,876,092,300.07 | 30,750,897,466.71 |
| Non-current Assets: | ||
| Loans and advances to customers | ||
| Debt investments | ||
| Other debt investments | ||
| Long-term receivables | ||
| Long-term equity investments | 490,579,233.07 | 303,050,580.10 |
| Other investments in equity instruments | 172,087,681.71 | 193,950,220.77 |
| Other non-current financial assets |
| Investment properties | 47,847,824.12 | 52,656,477.74 |
| Fixed assets | 15,975,768,217.42 | 13,707,298,535.36 |
| Construction in progress | 1,435,138,430.80 | 865,549,438.56 |
| Bearer biological assets | ||
| Oil and gas assets | ||
| Right-of-use assets | ||
| Intangible assets | 1,233,991,800.92 | 1,047,725,845.53 |
| Development expenditure | ||
| Goodwill | 532,697,936.32 | 532,697,936.32 |
| Long-term prepaid expenses | 407,787,901.18 | 352,042,451.40 |
| Deferred income tax assets | 152,530,215.62 | 139,475,190.37 |
| Other non-current assets: | 2,452,181,204.01 | 1,432,566,528.37 |
| Total non-current assets | 22,900,610,445.17 | 18,627,013,204.52 |
| Total assets | 65,776,702,745.24 | 49,377,910,671.23 |
| Current liabilities: | ||
| Short-term borrowings | 8,169,342,308.24 | 4,166,302,223.17 |
| Loans from the central bank | ||
| Taking from banks and other financial institutions | ||
| Held-for-trading financial liabilities | 1,245,622.80 | 1,001,553.00 |
| Derivative financial liabilities | ||
| Notes payable | 105,578,999.01 | 206,496,660.20 |
| Accounts payable | 23,558,808,452.78 | 17,268,223,180.16 |
| Receipts in advance | 91,849.45 | 101,609,379.21 |
| Contract liabilities | 349,704,823.33 | |
| 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 | 1,402,140,571.35 | 1,423,417,352.66 |
| Taxes payable | 612,219,900.73 | 327,633,322.68 |
| Other payables | 624,439,317.68 | 352,390,271.77 |
| Including: Interest payable | 21,960,352.13 | 6,097,484.73 |
| Dividends payable | 12,150,000.00 | |
| Fees and commissions payable | ||
| Amounts payable under reinsurance contracts | ||
| Held-for-sale liabilities | ||
| Current portion of non-current liabilities | 72,446,728.48 | 366,537,115.41 |
| Other current liabilities | 1,629,769,124.03 | 646,115,152.49 |
| Total current liabilities | 36,525,787,697.88 | 24,859,726,210.75 |
| Non-current liabilities: |
| Insurance contract reserves | ||
| Long-term borrowings | 1,586,930,532.12 | 1,562,908,824.30 |
| Bonds payable | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Lease liabilities | ||
| Long-term payables | ||
| Long-term employee benefits payable | ||
| Estimated Liabilities | 1,447,363.78 | 1,317,263.45 |
| Deferred income | 292,964,209.26 | 256,059,554.91 |
| Deferred income tax liabilities | 503,117,573.11 | 598,184,393.00 |
| Other non-current liabilities | 250,000,000.00 | 350,011,130.10 |
| Total non-current liabilities | 2,634,459,678.27 | 2,768,481,165.76 |
| Total liabilities | 39,160,247,376.15 | 27,628,207,376.51 |
| Owner’s equity: | ||
| Share capital | 6,996,787,241.00 | 5,349,001,738.00 |
| Other equity instruments | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Capital reserve | 1,692,466,121.72 | 2,654,692,874.21 |
| Less: Treasury stock | ||
| Other comprehensive income | 87,435,876.62 | 165,602,152.74 |
| Special reserve | ||
| Surplus reserve | 362,335,031.18 | 362,335,031.18 |
| General risk reserve | ||
| Undistributed profits | 15,799,985,295.36 | 11,764,987,172.39 |
| Total owners’ equity attributable to equity holders of the parent company | 24,939,009,565.88 | 20,296,618,968.52 |
| Minority interest | 1,677,445,803.21 | 1,453,084,326.20 |
| Total owners’ equity | 26,616,455,369.09 | 21,749,703,294.72 |
| Total liabilities and owners’ equity | 65,776,702,745.24 | 49,377,910,671.23 |
Legal representative: Wang Laichun Chief financial officer: Wu Tiansong Head of accounting department: Xiao Na
2. Balance sheet of the parent company
In RMB
| Item | September 30, 2020 | December 31, 2019 |
| Current Assets: | ||
| Cash and bank balances | 2,042,243,655.13 | 1,261,246,519.90 |
| Held-for-trading financial assets | 1,616,056,115.00 | 564,979,683.89 |
| Derivative financial assets | ||
| Notes receivable | 87,499,027.20 | 7,452,736.02 |
| Accounts receivable | 3,655,164,524.16 | 1,561,792,817.49 |
| Receivables financing | ||
| Prepayments | 303,853,627.21 | 41,033,974.02 |
| Other receivables | 671,780,348.87 | 524,425,779.85 |
| Including: Interest receivable | ||
| Dividends receivable | 16,500,000.00 | |
| Inventories | 144,470,902.08 | 254,966,939.98 |
| Contract assets | ||
| Held-for-sale assets | ||
| Current portion of non-current assets | ||
| Other current assets | 34,243,764.26 | 59,577,562.10 |
| Total current assets | 8,555,311,963.91 | 4,275,476,013.25 |
| Non-current Assets: | ||
| Debt investments | ||
| Other debt investments | ||
| Long-term receivables | ||
| Long-term equity investments | 11,563,642,133.93 | 10,169,630,940.26 |
| Other investments in equity instruments | 167,300,911.56 | 190,275,176.76 |
| Other non-current financial assets | ||
| Investment properties | ||
| Fixed assets | 141,977,324.78 | 96,298,416.94 |
| Construction in progress | 4,314,777.52 | 2,779,186.32 |
| Bearer biological assets | ||
| Oil and gas assets | ||
| Right-of-use assets | ||
| Intangible assets | 44,287,656.26 | 24,590,128.29 |
| Development expenditure | ||
| Goodwill | 53,174,339.31 | 53,174,339.31 |
| Long-term prepaid expenses | 1,000,179.71 | 1,818,508.31 |
| Deferred income tax assets | 13,105,565.14 | 13,804,913.52 |
| Other non-current assets: | 7,149,070.00 | 6,162,851.80 |
| Total non-current assets | 11,995,951,958.21 | 10,558,534,461.51 |
| Total assets | 20,551,263,922.12 | 14,834,010,474.76 |
| Current liabilities: | ||
| Short-term borrowings | 1,124,120,700.00 | 82,450,000.00 |
| Held-for-trading financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | 1,399,592,381.82 | 1,210,846,167.41 |
| Accounts payable | 2,526,385,714.34 | 1,190,614,614.64 |
| Receipts in advance | 19,692,593.36 | |
| Contract liabilities | 34,968,619.36 | |
| Employee benefits payable | 10,303,111.86 | 46,817,340.23 |
| Taxes payable | 67,752,652.74 | 15,259,960.69 |
| Other payables | 445,140,831.75 | 509,173,095.52 |
| Including: Interest payable | 27,909,252.68 | 531,438.07 |
| Dividends payable | ||
| Held-for-sale liabilities |
| Current portion of non-current liabilities | ||
| Other current liabilities | 1,500,000,000.00 | 500,000,000.00 |
| Total Current Liabilities | 7,108,264,011.87 | 3,574,853,771.85 |
| Non-current liabilities: | ||
| Long-term borrowings | 200,000,000.00 | |
| Bonds payable | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Lease liabilities | ||
| Long-term payables | ||
| Long-term employee benefits payable | ||
| Estimated Liabilities | ||
| Deferred income | 9,001,540.61 | 10,941,542.77 |
| Deferred income tax liabilities | 20,430,012.28 | 22,367,576.60 |
| Other non-current liabilities | ||
| Total non-current liabilities | 229,431,552.89 | 33,309,119.37 |
| Total liabilities | 7,337,695,564.76 | 3,608,162,891.22 |
| Owner’s equity: | ||
| Share capital | 6,996,787,241.00 | 5,349,001,738.00 |
| Other equity instruments | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Capital reserve | 2,121,516,082.92 | 3,070,397,725.31 |
| Less: Treasury stock | ||
| Other comprehensive income | 108,743,576.18 | 125,608,900.24 |
| Special reserve | ||
| Surplus reserve | 362,335,031.18 | 362,335,031.18 |
| Undistributed profits | 3,624,186,426.08 | 2,318,504,188.81 |
| Total owners’ equity | 13,213,568,357.36 | 11,225,847,583.54 |
| Total liabilities and owners’ equity | 20,551,263,922.12 | 14,834,010,474.76 |
3. Consolidated income statement of this reporting period
In RMB
| Item | 2020 third quarter | 2019 third quarter |
| I. Total operating income | 23,076,494,141.40 | 16,395,399,396.48 |
| Including: Operating income | 23,076,494,141.40 | 16,395,399,396.48 |
| Interest income | ||
| Premiums earned | ||
| Fee and commission income | ||
| II. Total operating costs | 20,735,792,055.01 | 14,706,315,220.38 |
| Including: Operating costs | 17,918,627,343.37 | 12,777,330,169.50 |
| Interest expenses | ||
| Fee and commission expenses |
| Surrenders; | ||
| Claims and policyholder benefits (net of mounts recoverable from reinsurers) | ||
| Changes in insurance contract reserves (net of reinsurers’ share) | ||
| Insurance policyholder dividends | ||
| Expenses for reinsurance accepted | ||
| Taxes and surcharges | 75,380,649.14 | 109,815,415.52 |
| Selling expenses | 202,214,578.63 | 128,330,343.36 |
| Administrative expenses | 568,215,792.00 | 381,240,343.87 |
| Research and development expenses | 1,897,719,077.89 | 1,306,437,611.04 |
| Financial expenses | 73,634,613.98 | 3,161,337.09 |
| Including: Interest expenses | 92,416,823.79 | 93,761,338.47 |
| Interest income | 39,636,030.15 | 28,609,532.04 |
| Add: Other income | 215,537,654.39 | 71,421,873.24 |
| Investment income (loss is indicated by “-”) | 15,092,165.47 | 21,068,043.54 |
| Including: Income from investments in associates and joint ventures | 5,053,767.98 | -14,037,842.34 |
| Income from derecognition of financial assets measured at amortized cost | ||
| Foreign exchange gains (loss is indicated by “-”) | ||
| Net exposure hedging income (loss is indicated by “-”) | ||
| Income from changes in fair value (loss is indicated by “-”) | 92,078,754.63 | -43,190,665.93 |
| Impairment losses of credit (loss is indicated by “-”) | -4,638,791.53 | |
| Impairment losses of assets (loss is indicated by “-”) | -40,706,803.28 | 11,441,266.34 |
| Income from disposal of assets (loss is indicated by “-”) | 16,905,030.25 | 295,303.28 |
| III. Operating profit (loss is indicated by “-”) | 2,634,970,096.32 | 1,750,119,996.57 |
| Add: Non-operating income | 5,351,597.80 | 5,170,956.46 |
| Less: Non-operating expenses | 19,519,205.76 | 13,090,803.22 |
| IV. Total profit (total losses are indicated by “-”) | 2,620,802,488.36 | 1,742,200,149.81 |
| Less: Income tax expenses | 415,251,941.62 | 270,486,074.81 |
| V. Net profit (net loss is indicated by “-”) | 2,205,550,546.74 | 1,471,714,075.00 |
| (I) Categorized by the nature of continuing operation | ||
| 1. Net profit from continuing operations (net loss is indicated by “-”) | 2,205,550,546.74 | 1,471,714,075.00 |
| 2. Net profit from discontinued |
| operations (net loss is indicated by “-”) | ||
| (II) Categorized by ownership | ||
| 1. Net profit attributable to owners of the parent company | 2,141,839,306.57 | 1,385,982,967.86 |
| 2. Profit or loss attributable to minority interest | 63,711,240.17 | 85,731,107.14 |
| VI. Other comprehensive income, net of tax | -252,471,123.98 | 52,537,163.62 |
| Other comprehensive income attributable to owners of the parent company, net of tax | -243,162,657.01 | 46,150,108.79 |
| (I) Other comprehensive income that cannot be subsequently reclassified to profit or loss | -64,355,532.80 | 25,302,375.00 |
| 1. Changes from re-measurement 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 other investments in equity instruments | -64,355,532.80 | 25,302,375.00 |
| 4. Changes in fair value of enterprises’ own credit risks | ||
| 5. Others | ||
| (II) Other comprehensive income that will be reclassified to profit or loss | -178,807,124.21 | 20,847,733.79 |
| 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. Amounts of financial assets reclassified into other comprehensive income | ||
| 4. Provision for credit impairment of other debt investments | ||
| 5. Reserve for cash flow hedges | ||
| 6. Translation differences of financial statements denominated in foreign currencies | -178,807,124.21 | 20,847,733.79 |
| 7. Others | ||
| Other comprehensive income attributable to minority interest, net of tax | -9,308,466.97 | 6,387,054.83 |
| VII. Total comprehensive income | 1,953,079,422.76 | 1,524,251,238.62 |
| Total comprehensive income attributable to owners of the parent company | 1,898,676,649.56 | 1,432,133,076.65 |
| Total comprehensive income attributable to minority interest | 54,402,773.20 | 92,118,161.97 |
| VIII. Earnings per share | ||
| (I) Basic earnings per share | 0.31 | 0.20 |
| (II) Diluted earnings per share | 0.31 | 0.20 |
For any business combination involving enterprises under common control for the current period, the net profits of the absorbed party
prior to the combination are RMB in the current period, and were RMB in prior period.Legal representative: Wang Laichun Chief financial officer: Wu Tiansong Head of accounting department: Xiao Na
4. Income statement of the parent company of this reporting period
In RMB
| Item | 2020 third quarter | 2019 third quarter |
| I. Operating income | 3,464,376,138.57 | 1,252,794,502.63 |
| Less: Operating costs | 3,192,508,710.83 | 1,108,900,514.95 |
| Taxes and surcharges | 5,890,134.00 | 1,842,836.72 |
| Selling expenses | 10,623,298.66 | 13,137,319.14 |
| Administrative expenses | 30,222,228.26 | 37,027,386.54 |
| Research and development expenses | 37,841,713.41 | 44,801,983.70 |
| Financial expenses | 30,280,306.07 | 25,785.15 |
| Including: Interest expenses | 19,103,097.06 | 2,890,760.79 |
| Interest income | 6,947,320.35 | 541,681.30 |
| Add: Other income | 13,864,775.62 | 6,924,153.91 |
| Investment income (loss is indicated by “-”) | 1,663,888,442.16 | 245,798,904.31 |
| Including: Income from investments in associates and joint ventures | -626,090.72 | |
| Income from derecognition of financial assets measured at amortized cost | ||
| Net exposure hedging income (loss is indicated by “-”) | ||
| Income from changes in fair value (loss is indicated by “-”) | 7,026,313.00 | -1,482,646.00 |
| Impairment losses of credit (loss is indicated by “-”) | 264,232.96 | |
| Impairment losses of assets (loss is indicated by “-”) | 25,211.26 | |
| Income from disposal of assets (loss is indicated by “-”) | 0.23 | |
| II. Operating profit (loss is indicated by “-”) | 1,842,053,511.31 | 298,324,299.91 |
| Add: Non-operating income | 9,931.41 | 29,313.21 |
| Less: Non-operating expenses | 715,241.05 | 670,094.18 |
| III. Total profit (total losses are indicated by “-”) | 1,841,348,201.67 | 297,683,518.94 |
| Less: Income tax expenses | 37,893,412.08 | 13,213,086.73 |
| IV. Net profit (net loss is indicated by “-”) | 1,803,454,789.59 | 284,470,432.21 |
| (I) Net profit from continuing operation（(net loss is indicated by “-”) | 1,803,454,789.59 | 284,470,432.21 |
| (II) Net profit from discontinued operations（(net loss is indicated by “-”) |
| V. Other comprehensive income, net of tax | -52,794,696.56 | 25,302,375.00 |
| (I) Other comprehensive income that cannot be subsequently reclassified to profit or loss | -52,794,696.56 | 25,302,375.00 |
| 1. Changes from re-measurement 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 other investments in equity instruments | -52,794,696.56 | 25,302,375.00 |
| 4. Changes in fair value of enterprises’ own credit risks | ||
| 5. Others | ||
| (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. Amounts of financial assets reclassified into other comprehensive income | ||
| 4. Provision for credit impairment of other debt investments | ||
| 5. Reserve for cash flow hedges | ||
| 6. Translation differences of financial statements denominated in foreign currencies | ||
| 7. Others | ||
| VI. Total comprehensive income | 1,750,660,093.03 | 309,772,807.21 |
| VII. Earnings per share: | ||
| (I) Basic earnings per share | ||
| (II) Diluted earnings per share |
5. Consolidated income statement from the beginning of the year to the end of the reporting report
| Item | 2020 first three quarters | 2019 first three quarters |
| I. Total operating income | 59,528,120,290.26 | 37,836,138,416.35 |
| Including: Operating income | 59,528,120,290.26 | 37,836,138,416.35 |
| Interest income | ||
| Premiums earned | ||
| Fee and commission income | ||
| II. Total operating costs | 54,338,902,679.23 | 34,476,493,369.69 |
| Including: Operating costs | 47,741,922,113.72 | 30,092,697,366.58 |
| Interest expenses | ||
| Fee and commission expenses | ||
| Surrenders; |
| Claims and policyholder benefits (net of mounts recoverable from reinsurers) | ||
| Changes in insurance contract reserves (net of reinsurers’ share) | ||
| Insurance policyholder dividends | ||
| Expenses for reinsurance accepted | ||
| Taxes and surcharges | 165,986,772.39 | 210,642,215.47 |
| Selling expenses | 444,793,564.06 | 322,326,979.02 |
| Administrative expenses | 1,332,741,024.29 | 799,582,534.59 |
| Research and development expenses | 4,466,227,599.35 | 2,884,731,309.01 |
| Financial expenses | 187,231,605.42 | 166,512,965.02 |
| Including: Interest expenses | 295,027,580.09 | 273,987,207.80 |
| Interest income | 126,293,612.10 | 85,100,933.40 |
| Add: Other income | 342,012,449.71 | 153,239,408.50 |
| Investment income (loss is indicated by “-”) | 149,507,684.91 | 101,471,800.28 |
| Including: Income from investments in associates and joint ventures | 12,352,183.83 | -32,740,232.98 |
| Income from derecognition of financial assets measured at amortized cost | ||
| Foreign exchange gains (loss is indicated by “-”) | ||
| Net exposure hedging income (loss is indicated by “-”) | ||
| Income from changes in fair value (loss is indicated by “-”) | 91,026,838.04 | -48,793,575.03 |
| Impairment losses of credit (loss is indicated by “-”) | -8,021,239.33 | |
| Impairment losses of assets (loss is indicated by “-”) | -51,255,442.21 | 69,532,340.20 |
| Income from disposal of assets (loss is indicated by “-”) | 29,425,924.23 | 3,511,540.00 |
| III. Operating profit (loss is indicated by “-”) | 5,741,913,826.38 | 3,638,606,560.61 |
| Add: Non-operating income | 16,613,608.70 | 8,100,761.27 |
| Less: Non-operating expenses | 49,896,060.06 | 88,713,260.40 |
| IV. Total profit (total losses are indicated by “-”) | 5,708,631,375.02 | 3,557,994,061.48 |
| Less: Income tax expenses | 881,239,830.63 | 533,013,060.82 |
| V. Net profit (net loss is indicated by “-”) | 4,827,391,544.39 | 3,024,981,000.66 |
| (I) Categorized by the nature of continuing operation | ||
| 1. Net profit from continuing operations (net loss is indicated by “-”) | 4,827,391,544.39 | 3,024,981,000.66 |
| 2. Net profit from discontinued operations (net loss is indicated by “-”) |
| (II) Categorized by ownership | ||
| 1. Net profit attributable to owners of the parent company | 4,679,614,065.03 | 2,887,521,926.70 |
| 2. Profit or loss attributable to minority interest | 147,777,479.36 | 137,459,073.96 |
| VI. Other comprehensive income, net of tax | -79,721,998.94 | 24,148,715.55 |
| Other comprehensive income attributable to owners of the parent company, net of tax | -78,166,276.12 | 17,506,582.96 |
| (I) Other comprehensive income that cannot be subsequently reclassified to profit or loss | -16,865,324.07 | 21,904,627.50 |
| 1. Changes from re-measurement 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 other investments in equity instruments | -16,865,324.07 | 21,904,627.50 |
| 4. Changes in fair value of enterprises’ own credit risks | ||
| 5. Others | ||
| (II) Other comprehensive income that will be reclassified to profit or loss | -61,300,952.05 | -4,398,044.54 |
| 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. Amounts of financial assets reclassified into other comprehensive income | ||
| 4. Provision for credit impairment of other debt investments | ||
| 5. Reserve for cash flow hedges | ||
| 6. Translation differences of financial statements denominated in foreign currencies | -61,300,952.05 | -4,398,044.54 |
| 7. Others | ||
| Other comprehensive income attributable to minority interest, net of tax | -1,555,722.82 | 6,642,132.59 |
| VII. Total comprehensive income | 4,747,669,545.45 | 3,049,129,716.21 |
| Total comprehensive income attributable to owners of the parent company | 4,601,447,788.91 | 2,905,028,509.66 |
| Total comprehensive income attributable to minority interest | 146,221,756.54 | 144,101,206.55 |
| VIII. Earnings per share | ||
| (I) Basic earnings per share | 0.67 | 0.41 |
| (II) Diluted earnings per share | 0.67 | 0.41 |
For any business combination involving enterprises under common control for the current period, the net profits of the absorbed partyprior to the combination are RMB in the current period, and were RMB in prior period.
Legal representative: Wang Laichun Chief financial officer: Wu Tiansong Head of accounting department: Xiao Na
6. Income statement of the parent company from the beginning of the year to the end of the reportingreport
In RMB
| Item | 2020 first three quarters | 2019 first three quarters |
| I. Operating income | 6,343,406,810.47 | 2,958,410,147.04 |
| Less: Operating costs | 5,805,838,129.26 | 2,691,742,136.14 |
| Taxes and surcharges | 8,130,165.60 | 4,293,657.17 |
| Selling expenses | 29,994,204.48 | 26,520,064.28 |
| Administrative expenses | 80,358,668.69 | 80,647,143.97 |
| Research and development expenses | 83,249,464.66 | 73,206,820.33 |
| Financial expenses | 56,490,598.36 | 11,327,000.62 |
| Including: Interest expenses | 44,185,916.86 | 12,697,965.08 |
| Interest income | 8,690,477.63 | 1,046,218.70 |
| Add: Other income | 47,392,684.99 | 17,267,174.88 |
| Investment income (loss is indicated by “-”) | 1,684,208,186.60 | 559,953,686.38 |
| Including: Income from investments in associates and joint ventures | 1,662,865.23 | |
| Income from derecognition of financial assets measured at amortized cost | ||
| Net exposure hedging income (loss is indicated by “-”) | ||
| Income from changes in fair value (loss is indicated by “-”) | 6,924,462.00 | -511,637.50 |
| Impairment losses of credit (loss is indicated by “-”) | 108,631.20 | |
| Impairment losses of assets (loss is indicated by “-”) | 175,184.09 | 206,527.54 |
| Income from disposal of assets (loss is indicated by “-”) | -61,460.74 | |
| II. Operating profit (loss is indicated by “-”) | 2,018,093,267.56 | 647,589,075.83 |
| Add: Non-operating income | 19,979.68 | 67,107.37 |
| Less: Non-operating expenses | 2,446,959.31 | 1,135,869.33 |
| III. Total profit (total losses are indicated by “-”) | 2,015,666,287.93 | 646,520,313.87 |
| Less: Income tax expenses | 65,368,108.60 | 20,666,012.39 |
| IV. Net profit (net loss is indicated by “-”) | 1,950,298,179.33 | 625,854,301.48 |
| (I) Net profit from continuing operation（(net loss is indicated by “-”) | 1,950,298,179.33 | 625,854,301.48 |
| (II) Net profit from discontinued operations（(net loss is indicated by “-”) | ||
| V. Other comprehensive income, net of | -16,865,324.06 | 21,904,627.50 |
| tax | ||
| (I) Other comprehensive income that cannot be subsequently reclassified to profit or loss | -16,865,324.06 | 21,904,627.50 |
| 1. Changes from re-measurement 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 other investments in equity instruments | -16,865,324.06 | 21,904,627.50 |
| 4. Changes in fair value of enterprises’ own credit risks | ||
| 5. Others | ||
| (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. Amounts of financial assets reclassified into other comprehensive income | ||
| 4. Provision for credit impairment of other debt investments | ||
| 5. Reserve for cash flow hedges | ||
| 6. Translation differences of financial statements denominated in foreign currencies | ||
| 7. Others | ||
| VI. Total comprehensive income | 1,933,432,855.27 | 647,758,928.98 |
| VII. Earnings per share: | ||
| (I) Basic earnings per share | ||
| (II) Diluted earnings per share |
7. Consolidated statement of cash flow from the beginning of the year to the end of the reporting report
In RMB
| Item | 2020 first three quarters | 2019 first three quarters |
| I. Cash flows from operating activities: | ||
| Cash receipts from sale of goods and rendering of services | 59,820,024,533.88 | 40,439,975,740.42 |
| 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 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 and other financial institutions | ||
| Net increase in financial assets sold under repurchase arrangements | ||
| Net cash received from securities trading agency | ||
| Receipts of tax refunds | 2,149,590,962.81 | 2,125,641,152.55 |
| Other cash receipts relating to operating activities | 1,962,403,233.52 | 1,615,054,427.99 |
| Sub-total of cash inflows from operating activities | 63,932,018,730.21 | 44,180,671,320.96 |
| Cash payments for goods purchased and services received | 50,319,737,532.22 | 30,111,459,573.90 |
| Net increase in loans and advances to customers | ||
| Net increase in balance with the central bank and due from banks and other financial institution | ||
| 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 | 8,597,193,538.01 | 5,440,603,372.54 |
| Payments of various types of taxes | 1,133,748,357.54 | 851,575,972.98 |
| Other cash payments relating to operating activities | 1,141,277,069.66 | 1,666,054,682.99 |
| Sub-total of cash outflows from operating activities | 61,191,956,497.43 | 38,069,693,602.41 |
| Net cash flow from operating activities | 2,740,062,232.78 | 6,110,977,718.55 |
| II. Cash flows from investing activities: | ||
| Cash receipts from disposals and recovery of investments | 47,713,381,777.05 | 64,136,192,605.27 |
| Cash receipts from investment income | 208,419,232.28 | 81,855,936.30 |
| Net cash receipts from disposals of fixed assets, intangible assets and other long-term assets | 52,104,451.04 | 111,777,219.26 |
| Net cash receipts from disposals of subsidiaries and other business entities | 63,942,000.00 | 14,566,191.05 |
| Other cash receipts relating to investing activities | 499,850.00 | 30,241,211.75 |
| Sub-total of cash inflows from investing | 48,038,347,310.37 | 64,374,633,163.63 |
| activities | ||
| Cash payments to acquire or construct fixed assets, intangible assets and other long-term assets | 5,495,052,375.92 | 4,256,657,988.48 |
| Cash payments to acquire investments | 49,439,659,774.05 | 63,833,955,184.31 |
| Net increase in pledged loans receivables | ||
| Net cash payments for acquisitions of subsidiaries and other business units | 3,975,934.82 | |
| Other cash payments relating to investing activities. | 817,923.32 | 45,054,081.63 |
| Sub-total of cash outflows from investing activities | 54,935,530,073.29 | 68,139,643,189.24 |
| Net cash flow from investing activities | -6,897,182,762.92 | -3,765,010,025.61 |
| III. Cash flows from financing activities: | ||
| Cash receipts from capital contributions | 286,188,407.24 | 24,129,428.31 |
| Including: cash receipts from capital contributions from minority interest shareholders of subsidiaries | ||
| Cash receipts from borrowings | 23,367,109,132.69 | 12,098,385,434.57 |
| Other cash receipts relating to financing activities | 291,111,225.60 | 395,796.26 |
| Sub-total of cash inflows from financing activities | 23,944,408,765.53 | 12,122,910,659.14 |
| Cash repayments of amounts borrowed | 18,422,612,733.74 | 12,693,466,778.43 |
| Cash payments for distribution of dividends or profits or settlement of interest expenses | 814,253,478.54 | 433,042,274.14 |
| Including: payments for distribution of dividends or profits to minority interest shareholders of subsidiaries | ||
| Other cash payments relating to financing activities | 8,475,758.96 | 3,185,447.90 |
| Sub-total of cash outflows from financing activities | 19,245,341,971.24 | 13,129,694,500.47 |
| Net cash flow from financing activities | 4,699,066,794.29 | -1,006,783,841.33 |
| IV. Effect of foreign exchange rate changes on cash and cash equivalents | -37,319,701.36 | 163,036,108.14 |
| V. Net increase in cash and cash equivalents | 504,626,562.79 | 1,502,219,959.75 |
| Add: Opening balance of cash and cash equivalents | 6,147,339,924.26 | 3,809,520,108.33 |
| VI. Closing balance of cash and cash equivalents | 6,651,966,487.05 | 5,311,740,068.08 |
8. Statement of cash flow of the parent company from the beginning of the year to the end of the reportingreport
In RMB
| Item | 2020 first three quarters | 2019 first three quarters |
| I. Cash flows from operating activities: | ||
| Cash receipts from sale of goods and rendering of services | 4,802,832,961.17 | 3,332,180,231.09 |
| Receipts of tax refunds | 138,658,293.85 | 114,182,106.37 |
| Other cash receipts relating to operating activities | 234,445,088.93 | 414,923,445.98 |
| Sub-total of cash inflows from operating activities | 5,175,936,343.95 | 3,861,285,783.44 |
| Cash payments for goods purchased and services received | 5,575,242,278.72 | 2,381,139,581.32 |
| Cash payments to and on behalf of employees | 136,704,265.43 | 87,498,575.17 |
| Payments of various types of taxes | 13,246,968.95 | 60,138,333.78 |
| Other cash payments relating to operating activities | 359,350,647.62 | 274,260,463.75 |
| Sub-total of cash outflows from operating activities | 6,084,544,160.72 | 2,803,036,954.02 |
| Net cash flow from operating activities | -908,607,816.77 | 1,058,248,829.42 |
| II. Cash flows from investing activities: | ||
| Cash receipts from disposals and recovery of investments | 11,815,632,707.48 | 8,926,500,000.00 |
| Cash receipts from investment income | 1,661,501,094.91 | 608,087,568.46 |
| Net cash receipts from disposals of fixed assets, intangible assets and other long-term assets | 233,296.13 | 2,797,482.71 |
| Net cash receipts from disposals of subsidiaries and other business entities | 252,857,872.93 | 7,239,163.89 |
| Other cash receipts relating to investing activities | ||
| Sub-total of cash inflows from investing activities | 13,730,224,971.45 | 9,544,624,215.06 |
| Cash payments to acquire or construct fixed assets, intangible assets and other long-term assets | 33,762,958.60 | 28,141,230.39 |
| Cash payments to acquire investments | 14,124,534,000.00 | 9,756,858,827.28 |
| Net cash payments for acquisitions of subsidiaries and other business units; | ||
| Other cash payments relating to investing activities. | ||
| Sub-total of cash outflows from investing activities | 14,158,296,958.60 | 9,785,000,057.67 |
| Net cash flow from investing activities | -428,071,987.15 | -240,375,842.61 |
| III. Cash flows from financing activities: | ||
| Cash receipts from capital contributions | 195,212,407.24 | |
| Cash receipts from borrowings | 2,842,986,000.00 | 13,779,200.00 |
| Other cash receipts relating to financing activities | 291,111,225.60 | |
| Sub-total of cash inflows from financing activities | 3,329,309,632.84 | 13,779,200.00 |
| Cash repayments of amounts borrowed | 600,000,000.00 | 298,146,776.00 |
| Cash payments for distribution of dividends or profits or settlement of interest expenses | 627,687,696.92 | 218,411,966.76 |
| Other cash payments relating to financing activities | 5,883,277.37 | |
| Sub-total of cash outflows from financing activities | 1,233,570,974.29 | 516,558,742.76 |
| Net cash flow from financing activities | 2,095,738,658.55 | -502,779,542.76 |
| IV. Effect of foreign exchange rate changes on cash and cash equivalents | -2,661,719.40 | -1,085,340.29 |
| V. Net increase in cash and cash equivalents | 756,397,135.23 | 314,008,103.76 |
| Add: Opening balance of cash and cash equivalents | 1,261,246,519.90 | 274,756,823.63 |
| VI. Closing balance of cash and cash equivalents | 2,017,643,655.13 | 588,764,927.39 |
II. Adjustments to Financial Statements
1. Adjustment to relevant items in the financial statements at the beginning of the initial year when the newrevenue standards and new lease standards are implemented since 2020
□ Applicable √ Not Applicable
2. Notes on data in the prior comparative statements retroactively adjusted after the initial implementationof the new revenue standards and the new lease standards since 2020
□ Applicable √ Not Applicable
III. Auditor’s Report
If the third quarter report has been audited
□ Yes √ No
The Company’s third quarter financial report has not been audited.
Luxshare Precision Industry Co., Ltd.Chairman of Board: Wang LaichunOctober 27, 2020