立讯精密(002475)_公司公告_立讯精密：2020年年度报告（英文版）新浪财经

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立讯精密：2020年年度报告（英文版）（下载公告）

公告日期:2021-05-07

ThisdocumentisatranslatedversionoftheChineseversionAnnualReport2020ofLuxsharePrecisionIndustryCo.,Ltd.(“《立讯精密2020年年度报告》”),andthepublishedAnnualReport2020ofLuxsharePrecisionIndustryCo.,Ltd.intheChineseversionshallprevail.ThecompletepublishedChineseAnnualReport2020ofLuxsharePrecisionIndustryCo.,Ltd.maybeobtainedatwww.cninfo.com.cn.

LuxsharePrecisionIndustryCo.,Ltd.

AnnualReportFortheyearendedDecember31,2020

2021-032

April2021

SectionI.ImportantNote,TableofContentsandDefinitions

TheBoardofDirectors,theBoardofSupervisors,directors,supervisorsandexecutivesoftheCompanyherebywarrantthattheinformationcontainedinthisAnnualReportistrue,accurateandcompleteandthisAnnualReportisfreefromanymisrepresentation,misleadingstatementormaterialomission,andagreetoassumejointandseveralliabilityforthisAnnualReport.WANGLaichun,PrincipaloftheCompany,CFOWUTiansongandAccountingSupervisorXIAONaherebyrepresentthatthefinancialstatementscontainedinthisAnnualReportaretrue,accurateandcomplete.AlldirectorsoftheCompanyattendedthemeetingoftheBoardofDirectorsreviewingthisReport.TherelevantrisksfacingtheCompanyaresetoutin“SectionIVDiscussionandAnalysisofBusinessSituations-IX.ProspectsforfuturedevelopmentoftheCompany”.AccordingtotheprofitdistributionproposalapprovedbytheBoardofDirectors,theCompanywilldistributeacashdividendsofRMB1.1and0bonusshare(bothinclusiveoftax)per10sharestoallshareholdersonthebasisof7,035,426,367shares,andwillnottransferanycapitalreservetothesharecapitalforthereportingperiod.

TableofContents

SectionI.ImportantNote,TableofContentsandDefinitions.............................................................................................................2

SectionIICompanyProfileandFinancialHighlights ...... 5

SectionIIIBusiness ...... 9

SectionIV.DiscussionandAnalysisofBusinessSituations................................................................................................................24

SectionVSignificantMatters ...... 51

SectionVIChangesinSharesandShareholders ...... 71

SectionVIIPreferredShares ...... 79

SectionVIIIConvertibleCorporateBonds ...... 80

SectionIXDirectors,Supervisors,SeniorManagementandEmployees ...... 82

SectionXCorporateGovernance ...... 93

SectionXICorporateBonds ...... 105

SectionXIIFinancialReport ...... 106

SectionXIIIListofDocumentsAvailableforInspection ...... 294

Definitions

Terms		Definition
Luxshare-ICT	means	LuxsharePrecisionIndustryCo.,Ltd.
LuxshareHK	means	LuxsharePrecisionLimited(HK),founderandcontrollingshareholderofLuxshare-ICT
XuntaoDongguan	means	DongguanXuntaoElectronicCo.,Ltd.
LuxshareDongguan	means	DongguanLuxsharePrecisionIndustryCo.,Ltd.
LeaderDongguan	means	DongguanLeaderPrecisionIndustryCo.,Ltd.
XiexunJi’an	means	XiexunElectronic(Ji’an)Co.,Ltd.
IntelligentManufactureJiangxi	means	JiangxiLuxshareIntelligentManufactureCo.,Ltd.
ASAPJiangxi	means	ASAPTechnology(Jiangxi)Co.,Ltd.
XiexunWan’an	means	Wan’anXiexunElectronicCo.,Ltd.
XiexunXinyu	means	XinyuXiexunElectronicCo.,Ltd.
LuxshareKunshan	means	KunshanLuxsharePrecisionIndustryCo.,Ltd.
LantoKunshan	means	LantoElectronicLimited
LuxshareElectronicKunshan	means	LuxshareElectronicTechnology(Kunshan)Co.,Ltd.
LuxshareIntelligentManufacture	means	LuxshareIntelligentManufacture(Zhejiang)Co.,Ltd.
LuxshareSuzhou	means	LuxsharePrecisionIndustry(Suzhou)Co.,Ltd.
LuxshareChangshu	means	LuxshareIntelligentManufactureTechnology(Changshu)Co.,Ltd.
LuxshareAutomationJiangsu	means	LuxshareAutomation(Jiangsu)Ltd.
LantoBozhou	means	BozhouLantoElectronicLimited
LuxshareChuzhou	means	LuxsharePrecisionIndustry(Chuzhou)Ltd.
LuxshareFengshun	means	FengshunLuxsharePrecisionIndustryCo.,Ltd.
RikaiComputer	means	RikaiComputerAccessoriesCo.,Ltd.
LuxshareVietnam	means	Luxshare-ICT(Vietnam)Limited
LuxshareVanTrung	means	Luxshare-ICT(VanTrung)CompanyLimited
LuxshareNgheAn	means	Luxshare-ICT(NgheAn)Limited
LuxsharePrecision	means	LuxsharePrecisionLimited
ICT-Lanto	means	ICT-LantoLimited
SuK	means	SuKKunststofftechnikGmbH
MeiteSuzhou	means	MeiteTechnology(Suzhou)Co.,Ltd.
WeichuangJiangsu	means	WeichuangInvestment(Jiangsu)Co.,Ltd.
WeixinKunshan	means	WeixinZitong(Kunshan)Co.,Ltd.
ShenzhenMSA	means	ShenzhenAdministrationforIndustryandCommerce,whichwasintegratedintotheMarketSupervisionAdministrationofShenzhenMunicipality
AOA	means	ArticlesofAssociationofLuxsharePrecisionIndustryCo.,Ltd.

SectionIICompanyProfileandFinancialHighlights

I.Companyprofile

Stockshortname	Luxshare-ICT	Stockcode	002475
Stockexchange	ShenzhenStockExchange
Chinesename	立讯精密工业股份有限公司
Chineseshortname	立讯精密
Englishname(ifany)	LuxsharePrecisionIndustryCo.,Ltd.
Englishshortname(ifany)	Luxshare-ICT
Legalrepresentative	WANGLaichun
Registeredaddress	2/F,BlockA,SanyangNewIndustrialZone,WestHaoyi,ShajingStreet,BaoanDistrict,Shenzhen
Postalcodeofregisteredaddress	518104
Officeaddress	No.313BeihuanRoad,QingxiTown,Dongguan,Guangdong
Postalcodeofofficeaddress	523642
Companywebsite	www.luxshare-ict.com
Email	Public@luxshare-ict.com

II.Contactpersonandcontactinformation

	BoardSecretary	SecuritiesAffairsRepresentative
Name	HUANGDawei	LIRuihao
Address	No.313BeihuanRoad,QingxiTown,Dongguan,Guangdong	No.313BeihuanRoad,QingxiTown,Dongguan,Guangdong
Telephone	0769-87892475	0769-87892475
Fax	0769-87732475	0769-87732475
E-mail	David.Huang@luxshare-ict.com	Ray.Li@luxshare-ict.com

III.Mediaforinformationdisclosureandplaceforkeepingannualreport

Designatednewspapersforinformationdisclosure	SecuritiesTimes
WebsitesdesignatedbytheChinaSecuritiesRegulationCommissionforpublishingannualreport	www.cninfo.com.cn
Placeforkeepingannualreport	SecuritiesAffairsOfficeoftheCompany

IV.Changesinregistrationparticulars

Changeinorganizationcode	No
ChangesinmainbusinesssincethelistingoftheCompany(ifany)	No
Changesincontrollingshareholder(ifany)	No

V.Otherrelatedinformation

AccountingfirmengagedbytheCompany

Nameofaccountingfirm	BDOChinaShuLunPanCertifiedPublicAccountantsLLP
Officeaddressofaccountingfirm	Rooms1,2&3,4/F,No.61EastNanjingRoad,HuangpuDistrict,Shanghai
Nameofaccountantssigningthisreport	LIJingandWEIGang

SponsorengagedbytheCompanythatperformsthedutiesofongoingsupervisionovertheCompanyduringthereportingperiod

√Applicable□N/A

Nameofsponsor	Officeaddressofsponsor	Namesofsponsorrepresentatives	Periodofongoingsupervision
CITICSecuritiesCo.,Ltd.	19/F,NorthTower,ExcellenceTimesPlaza(PhaseII),No.83rdCentralRoad,FutianDistrict,Shenzhen	HEFengandLIUGuanzhong	FromDecember2,2020toDecember31,2021

FinancialadvisorengagedbytheCompanythatperformsthedutiesofongoingsupervisionovertheCompanyduringthereportingperiod

□Applicable√N/A

VI.Keyaccountingdataandfinancialindicators

DidtheCompanyneedtoretrospectivelyadjustorre-stateanyaccountingdataofprioraccountingyears?

□Yes√No

	2020	2019	Y/Y%Change	2018
Operatingrevenue(RMB)	92,501,259,211.54	62,516,314,588.42	47.96%	35,849,964,160.13
Netprofitattributabletoshareholdersofthelistedcompany(RMB)	7,225,462,752.58	4,713,820,644.90	53.28%	2,722,631,125.23
Netprofitattributabletoshareholdersofthelistedcompanyafterdeductionofextraordinarygainorloss(RMB)	6,088,901,850.86	4,435,974,109.41	37.26%	2,553,973,258.82
Netcashflowsfromoperatingactivities(RMB)	6,873,211,486.05	7,465,988,174.33	-7.94%	3,142,307,168.34
Basicearningspershare(RMB/share)	1.03	0.68	51.47%	0.37
Dilutedearningspershare(RMB/share)	1.01	0.67	50.75%	0.37
Weightedaveragereturnonnetassets	30.29%	26.55%	3.74%	17.95%
	December31,2020	December31,2019	Y/Y%Change	December31,2018
Totalassets(RMB)	70,012,753,551.75	49,377,910,671.23	41.79%	36,441,441,236.44
Netassetsattributabletoshareholdersofthelistedcompany(RMB)	28,101,816,234.56	20,296,618,968.52	38.46%	15,497,944,981.18

Whetherthelowerofthenetprofitbeforeandafterdeductionofextraordinarygainorlossinthepastthreeaccountingyearshasbeennegativeandthemostrecentannualauditor’sreportindicatesthattheCompany’sabilitytocontinueasagoingconcernisuncertain?

□Yes√NoWhetherthelowerofthenetprofitbeforeandafterdeductionofextraordinarygainorlossisnegative?

□Yes√No

VII.DifferencesinaccountingdataarisingfromadoptionofforeignandChineseaccountingstandardsconcurrently

1.DifferencesinnetprofitandnetassetsdisclosedonthefinancialstatementsaccordingtotheinternationalaccountingstandardsandtheChineseaccountingstandards

□Applicable√N/ATherewasn’tanydifferenceinnetprofitandnetassetsdisclosedonthefinancialstatementsforthereportingperiodduetoadoptionoftheinternationalaccountingstandardsandtheChineseaccountingstandardsbyusconcurrently.

2.DifferencesinnetprofitandnetassetsdisclosedonthefinancialstatementsaccordingtotheforeignaccountingstandardsandtheChineseaccountingstandards

□Applicable√N/ATherewasn’tanydifferenceinnetprofitandnetassetsdisclosedonthefinancialstatementsforthereportingperiodduetoadoptionoftheforeignaccountingstandardsandtheChineseaccountingstandardsbyusconcurrently.

VIII.Mainquarterlyfinancialindicators

InRMB

	Firstquarter	Secondquarter	Thirdquarter	Fourthquarter
Operatingrevenue	16,513,283,460.66	19,938,342,688.20	23,076,494,141.40	32,973,138,921.28
Netprofitattributabletoshareholdersofthelistedcompany	981,870,190.71	1,555,904,567.75	2,141,839,306.57	2,545,848,687.55
Netprofitattributabletoshareholdersofthelistedcompanyafterdeductionofextraordinarygainorloss	896,806,034.69	1,441,507,176.13	1,872,789,269.22	1,877,799,370.82
Netcashflowsfromoperatingactivities	1,319,173,417.54	1,862,770,924.91	-441,882,109.67	4,133,149,253.27

Whetherthere’sanysignificantdifferencebetweenthefinancialindicatorssetforthaboveoraggregateamountsthereofandthecorrespondingfinancialindicatorscontainedinanyquarterlyorsemi-annualreportalreadydisclosed?

□Yes√No

IX.Itemsandamountsofextraordinarygainsorlosses

√Applicable□N/A

InRMB

Item	2020	2019	2018	Remark
Gainorlossondisposalofnon-currentassets(includingallowanceforimpairmentofassetsthathasbeenwrittenoff)	-35,503,173.93	-110,085,527.48	-17,424,350.63
Governmentgrantsrecognizedinprofitorloss(excludinggovernmentgrantsthatarecloselyrelatedtothebusinessoftheCompanyandareprovidedinfixedamountorquantitycontinuouslyaccordingtotheapplicablepolicesofthecountry)	450,749,695.89	232,311,428.35	123,984,003.37
Gainorlossonassetsunderentrustedinvestmentormanagement	113,778,335.78	89,722,710.32	78,134,882.23
Gainorlossonchangesinfairvalueoffinancialassetsheldfortrading,derivativefinancialassetsandfinancialliabilitiesheldfortrading,andgainondisposaloffinancialassetsheldfortrading,derivative	837,100,369.42	131,736,631.37	49,088,345.36

financialassets,financialliabilitiesheldfortradingandotherdebtinstruments,exceptforeffectivehedgesheldintheordinarycourseofbusiness
Othernon-operatingincomeandexpenses	30,554,498.37	-999,739.32	10,263,319.96
Othergainorlosswithinthemeaningofextraordinarygainorloss			-45,901,431.11
Less:Effectofincometax	214,489,873.68	55,533,801.99	22,195,598.91
Effectofminorityinterest(exclusiveoftax)	45,628,950.13	9,305,165.76	7,291,303.86
Total	1,136,560,901.72	277,846,535.49	168,657,866.41	--

IftheCompanyclassifiesanyitemofextraordinarygainorlossdefinedbyorlistedintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesPubliclyOfferingSecurities-ExtraordinaryGainorLossasrecurrentprofitorloss,pleaseexplainthereason.

□Applicable√N/AWehavenotclassifiedanyitemofextraordinarygainorlossdefinedbyorlistedintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesPubliclyOfferingSecurities-ExtraordinaryGainorLossasrecurrentprofitorlossinthereportingperiod.

SectionIIIBusiness

I.Mainbusinessinthereportingperiod

1.OverviewWeareengagedintheresearch,development,manufacturingandsalesofproductsinthefieldsofconsumerelectronics,communication,autoelectronicsandhealthcare,amongothers.In2020,inlightofthecomplicatedexternalenvironment,weefficientlyimplementedthedevelopmentplansandobjectivesestablishedbythemanagement,cautiouslyandflexiblycopedwiththeexternalenvironment,andrealizedrapidgrowthofallscopesofbusiness.Ourkeymanagementhascontinuouslymadedeploymentsforfuturedevelopmentcenteredonourmainbusiness,andfocusedonmaximizingbenefitsandrealizingsustainabledevelopment.Ourproductsandscopesofbusinessarediversifiedandverticallyintegrated,andweprovidecomponents,modulesandsystemassembly.Thebusinessofprecisioncomponentsisafieldinwhichwehavesetfootearliestandaccumulatedrichestexperience.Wehavecomprehensiveproductionprocesses,includingdesignandprocessingofprecisionmolds,designandrealizationofintelligentautomation,CNC,SMT,SiP,stamping,molding,electroplating,conductorextractionandbarewireextrusion,enablingustoensurethequalityofourproductsandtimelydeliveryofproductstocustomers.Inaddition,wemasterallbasicprocesses,whichhelpusmakecontinuousinnovationsinnewtechnologiesandnewprocesses.Ourmoduleproductsfocusonacoustic,radiofrequency,touchcontrol,powerandfunctionalfields,andmainlyincludeacousticmodules,antennas,wirelesschargingandvibrationmotors.Inthefieldofcommunicationanddatacenter,ourproductsmainlyincludehigh-speedconnectivity,opticmodule,coolingmodule,basestationantennaandbasestationfilter.Throughfocusingontechnologydevelopmentandcombiningtheeffortsofenterprises,universitiesandresearchinstitutes,weareleadingthewayincertainmarketsegmentsintheworld.Inthefieldofautomotives,wefocusonthe“bloodvesselsandnervoussystem”ofautomotives,andofferautomotivewireharness,specialwireharness,high-voltagewireharnessfornewenergyvehicles,connector,smartelectricbox,road-sideunit(RSU),telematicscontrolunit(TCU),centralgatewayandotherproducts.Inthecommunicationandautomotivebusiness,wegreatlybenefitfromourstrongprocess,research,development,quality,operationandothercomprehensivecapabilitiesaccumulatedinthefieldofconsumerelectronicsinourearlystageofdevelopment.Thematureexperiencesandavarietyofresourcesownedbyusindifferentfieldshaveproducedasynergyeffectandformedavirtuouscyclefeaturingmutualnourishmentandmutualpromotion.Weconcentrateoureffortsonthespecializationinandoptimizationofunderlyingtechnologies,madein-depthdeploymentsinacoustic,visual,power(wired/wireless),wirelesscommunicationandotherfieldstomeetfuturedemands.Ourproductshavebeenwidelyappliedinthefieldsofconsumerelectronicsandautomotives.Bycomprehensivelymasteringthetechnologiesrelatingtovariouscomponentsandmodules,andsuper-precisionmanufacturingtechnologiesaccumulatedovertheyears,wegivefullplaytoouradvantagesinverticalintegration.Inrecentyears,wehavecontinuouslyrestructuredthesupplychaininthefieldofsystemassembly,tocreatemorevalueforourcustomers,therebygainingcustomers’supportandconfidence.Ourmainproductsinthefieldofsystemassemblyincludesmartwearable,smarthomeandsmartdisplayproducts.Inlaunchinganewproduct,wefocusontheproductquality,yieldrateandoptimizationofproductioncostonthebasisofinnovativeproductiontechnology,intelligentautomationanddigitalplatform,therebyenablingustomakecontinuousandsubstantialbreakthroughsinnewmarkets,newcustomersandnewproducts.Intheimplementationofrelatedcontrols,thereisnodoubtthattheautomationtechnologieslaythestrongfoundationforourcorecompetencies.

Therefore,weattachgreatimportancetothecontinuousexplorationofautomaticandintelligentmanufacturing.Ourcoreteam’sspiritofin-depthexplorationofprocessesanddeterminationtoaccomplishalltasksassignedguaranteethesuccessinthedevelopmentanddesignofautomationtechnologies.Accordingtotherequirementsforcosmetic,size,functionsandreliabilityofproducts,wedisassembleandstudyallmanufacturingprocesses,andmakeeffortstosolveprocesschallengeswithreferencetoourpastexperienceandadvancedtechnologiesavailableonthemarket.Withthegoalofzerolossandzerodefect,westrivetorealizethereasonableness,standardizationandautomationofdesignsinteremsofyieldrate,efficiency,cost,etc.

Afterthecompletionofprocessstudy,werealizeprocessdesignthroughautomation,includingautomationofworkstations,handlingandpositioning,testing,warehousing,logisticsandproductionprocess.Standardizationistheprerequisiteforautomation,becausestandardizedproductscannotbemadewithouttheuseofstandardizedequipmentandprocesses.Withrespecttotheproductsthathavealowdemandandchangefrequently,wemainlyuseman-machineflexibleautomationtechnologies.Inthedesignofautomaticequipment,wemakeplansforMESsystem,IoTaccessandkeyworkstationinformationflowsneedingtobecontrolledsimultaneously,andbuildamodelofdigitalfactoryonthatbasis.Thereafter,weconvertallproblemsandphenomenonintodata,andthenprocessandjudgethedatasystematically,andpresentthesameintheformofvisualreports,torealizewhole-processtraceabilityofproducts,materials,people,equipment,fixtures,processtechnologyandqualityinformation,amongothers,implementclose-endcontrol,andensuretheeffectiverealizationofautomation.

Onthatbasis,weintroducedigitalmodels,usemodelingapproachestoconnectproductionwithdataflows,andthroughtheuseofbigdata,cloudcomputing,artificialintelligence,digitaltwinandothertechnologies,deeplyexploretheinformationandtrendsonthebackofdata,seekbenefitsfromdata,andfinallyrealizeintelligentization,andself-judgment,selfdecision-making,self-adjustmentandself-executionbymachines,sothatthemachinesareabletosolvetangibleproblemsandpredictintangibleproblemsontheirown,therebyachievingthelong-termgoalofintelligentmanufacturing.

1.精益化?工艺的深度拆解和前瞻研究?设计的合理化、标准化和简单化?产线的精益布局规划			3.数字化?IOT、制造数字化集成?可视化控制中心和管理?运营流程自动化贯通
1.Improvement?In-depthdisassemblyofandforward-lookingresearchonprocesses?Reasonableness,standardizationandsimplificationofdesign?Improvedlayoutofproductionlines			3.Digitalization?DigitalintegrationofIoTandmanufacturing?Visualcontrolcenterandmanagement?Automationofthewholeoperationprocess
2.自动化?搬运-加工-检测-物流-仓储的全流程自动化?柔性自动化系统分析			4.智能化?机器自感知、自学习、自决策、自执行?解决有形的问题和预测无形的问题?数据驱动管理决策
2.Automation?Whole-processautomationofhandling,processing,testing,logisticsandwarehousing?Analysisofflexibleautomationsystem			4.Intelligentization?Self-sensing,self-learning,selfdecision-makingandself-executionofmachines?Solvetangibleproblemsandpredictintangibleproblems?Data-drivenmanagementdecision-making
物理域	精益生产布局	精益工艺研究		工艺数字化	流程数字化
Physicalfield	Improvedproductionlayout	Improvedprocessstudy		Technologicaldigitalization	Processdigitalization
精益化	数字化	智能制造		信息域	制成自动化
Improvement	Digitalization	Intelligentmanufacturing		Informationfield	Manufacturingautomation

自动化	智能化	预测性分析	物流自动化	高级决策支持
Automation	Intelligentization	Predictiveanalysis	Logisticsautomation	Advanceddecision-makingsupport

2.ConsumerelectronicsbusinessFromtheperspectiveofapplications,consumerelectronics,communicationandautomotivesareourmainproductandbusinesssegments.Inthefieldofconsumerelectronics,weofferawiderangeofproducts,centeringonfuture5Gsmartlife,whileutilizingourexistingresources,andgraduallydiversifyourproductofferings.Ourproductsincludeacousticproducts,suchasTWSearphone,bluetoothheadphone,high-endgamingheadsetandsmall-sizedhigh-qualitystereospeaker,smarthomeproducts,suchas5GrouterandWi-Fi6portablerouter,smartterminalproducts,suchaswearablewatchandwristband,tracker,gamecontrollerandAR/VR,computeraccessories,suchasDockandintelligentstylus,andwiredandwirelesschargingaccessoriesforvariousPC/NB/mobilephonebrandsforretailsale.Inadditiontotraditionalproducts,wewilllaunchavarietyofcustomizedsmartproductsinconjunctionwithdifferentplatformcustomers,toenrichourproductofferings.

智能音箱	智能手机	VR眼镜	5G路由器	智能穿戴	无人机
Smartspeaker	Samrtphone	VReyeglasses	5Grouter	Smartwearable	Drone
电子烟	无线充模组	声学模组	震动马达	5G模组	天线
Electroniccigarette	Wirelesschargingmodule	Acousticmodule	Vibrationmotor	5Gmodule	Antenna
机壳	射频	线材线缆	机构件	连接器	核心工艺智能制造
Casing	Radiofrequency	Wireandcable	Mechanicalcomponents	Connector	CoretechnologyIntelligentmanufacturing

3.CommunicationbusinessDrivenby5G,bigdataandedgecomputingtechnologies,theICTindustryhasbeengrowingvigorously,andthehardwareequipmentshowsatendencytowardsgradualopeningofinterfacesandhighintegrationoffunctions.Inlightofsuchbackground,wehavecontinuouslyextendedthemixofourhardwarecommunicationproducts.Atpresent,ourwhole-machineproductsincludebasestationantenna,basestationfilter,towermountedamplifier,duplexer,combiner,RRU,AAU,smallbasestation,etc.,andcorecomponentproductsincludehigh-speedconnector,high-speedcableassembly,photoelectricconversionandoptictransmissionapplicationproducts,coolingmodule,transmissionmodule,RCU,etc.Throughsuchproductmix,ourstrategyofdevelopingbothwholemachineproductsandcorecomponentproducts(electricconnector,opticalconnectorandthermalmanagement)hasbeguntoshowresults.

Wehavefocusedonthedevelopmentofcoretechnologicalcapabilitiesandbasicresearchanddevelopment(R&D)capabilitiesthroughresearchofsimulationtechnology,newmaterialsandnewprocessesandapplicationoftestingtechnologies,sothatwecanprovidestrongtechnicalsupportregardlessofanychangeinproductforms.Withrespecttosystemproducts,throughdisassemblyofmodulesandcomponentscontainedintheproducts,andsingle-pointmanufacturingprocessesandtechnologies,weareabletorealizehighlyorwhollyautomated,efficientandhigh-qualityproductionandmanufacturingforlargeandsmallbatchesofproducts.

ICT系统产品家族	天线系统	滤波器	射频模块
ICTsystemproductfamily	Antennasystem	Filter	Radiofrequencymodule

Withrespecttocorecomponentproducts,werelyontheapplicationindatacenters,servers,switchesandmemories,enhanceourinnovationandR&Dcapabilitiesinrespectofelectricalconnectionproducts,establishacompleteinterfacesystem,andcreateadual-coreenginecombiningstandardsandpatents,soastotaketheleadonthemarket.Withrespecttoopticalconnectionproducts,wehaveengagedinthedevelopmentoftechnologiesthatareexpectedtobeappliedinthenextthreetofiveyears,tolaythefoundationfortheintegrationofelectricalconnectiontechnologiesinthefuture,andrealizecornerovertakinginkeyareas.Withrespecttothermalmanagementproducts,inlightofstrongdemands,wewilldevelopoutstandingproductandtechnicalcapabilitieswithintwotothreeyears,tooccupyafavorablepositiononthefuturemarket.

核心零部件——数据中心产品家族	汇聚交换机	接入交换机		数据中心机架群	机架内服务器群
Corecomponents–datacenterproductfamily	Aggregationswitch	Accessswitch		Datacenterrackcluster	Serverclusterinsiderack
应用：数据中心机架内/机架间互连服务器与交换机互连：单口速率：传输距离：			应用：数据中心机架内互连服务器与接入交换机互连：单口速率：传输距离：
Application:Intra-rack/inter-rackconnectionatdatacenterServer-switchconnectionSingle-portrate:Transmissiondistance:			Application:Intra-rackconnectionatdatacenterServer-accessswitchconnectionSingle-portrate:Transmissiondistance:

核心零部件——服务器/存储/交换机产品家族	电连解决方案	散热解决方案		轴流风扇
Corecomponents–server/memory/switchproductfamily	Electricalconnectionsolution	Coolingsolution		Axialfan
光模块散热器	服务器CPU散热器		800G应用（功率12-24W）
Opticalmodulecooler	ServerCPUcooler		800Gapplication(Power:12-24W)
应用：服务器/存储/交换机高速互连解决方案单口速率外部IO/背板：内部IO：		自研界面：轩猿平台高速背板：服务器互连界面：下一代互连形态：
Application:Server/memory/switchhigh-speedconnectivitysolutionSingleportrate:ExteriorIO/backboardInteriorIO:		Self-developedinterface:XuanYuanplatformHigh-speedbackboard:Serverconnectioninterface:Next-generationconnectivityform:

Our“wholemachine+corecomponents”double-linestrategylaysthefoundationfortheprovisionofone-stopandcomprehensiveservicestoourcustomers.Inaddition,theincreasinghighceilingofthemarketandincreasinglargespaceforgrowthwillgivestrongsupporttoourlong-termgrowthinthenextfivetotenyears.

4.Automotivebusiness

Atpresent,theautomotiveindustryistransitingfromtraditionalmanufacturingtoscientificandtechnologicalmanufacturing.Vehiclesaregraduallydevelopingfrompureridingtoolstoaninterconnectedspaceonwheelsintegratingentertainment,officeandconsumption.Thedemandsofvehicleconsumersforintelligentizationandpersonalizationdrivethetransitionofvehiclestowardssuper-smartterminals.LedbyTesla,smartcabinbecomesanareaofbreakthrough,whichcreatesawholly-newexperienceofman-vehicleinteractionthroughtheprovisionofLCDpanel,centralcontrolscreenandotherfunctions,extendsthefunctionsofsmartphonestovehicles,andrealizesseamlessconnectionwithmobilephones.TheincreasinglywideapplicationofADASandtheInternetofVehicleswill

alsopromotetheintelligentizationofvehiclesandacceleratetheentryintoaneraofsmartvehicles.

汽车向智能终端演进的过程中将迎来黄金十年
Wewillenterintoagoldendecadeduringthetransitionofvehiclestowardssmartterminals
电动化	智能化	网联化	共享化
Motorization	Intelligentization	Networking	Sharing
行业趋势	智能座舱、智能驾驶	无人网约车服务	零部件/软件服务
Industrialtrend	Smartcabin,smartdrive	Unmannedcarhailingservice	Components/softwareservice
整车制造	整车品牌/主要玩家	电池/电子电气架构	FOTA升级及服务
Vehiclemaking	Vehiclebrands/mainplayers	Battery/electricalandelectronicarchitecture	FOTAupgradingandservice
品牌群雄并起、百花齐放		特斯拉、新势力
Alotofbrandsenterthemarket		Telsa,newplayers
传统车企拥抱新趋势		百度等自动驾驶方案
Traditionalcarmanufacturersfollowthenewtrend		Auto-drivesolutionsofferedbyBaiduandotherentities
小米等手机巨头		软件升级+服务变现
Xiaomiandothermobilephonetycoons		Softwareupgrading+servicemonetization
?平台型汽车企业?市场份额更加走向集中化		?自动驾驶能力?硬件整合能力?跨平台软件、服务变现能力?无人车运营能力
?Platform-stylecarmanufacturers?Marketsharesareincreasinglyconcentrated		?Auto-drivecapability?Hardwareintegrationcapability?Trans-platformsoftwareandservicemonetizationcapability?Unmannedvehicleoperationcapability
硬件快速迭代（硬件成本下行、品牌厂积极创新、快速		基于传统汽车设计的硬件迭代

迭代以实现差异化）
Hardwareisupgradingquickly(decreaseincostsofhardware,activeinnovationofbrands,quickupgradingtoachievedifferentiation)	Hardwareupgradingbasedontraditionalvehicledesign
?硬件设计趋于标准化，通过软件及服务寻求差异?提升车企利润率和客户粘性	?整车百花齐放，同时创新动能提升，带动零部件机会?电动化、智能化ASP提升
?Hardwaredesigntendstowardsstandardization,withtheintentiontoachievedifferentiationthroughsoftwareandservices?Increasethegrossmarginandcustomeradhesionofcarmanufacturers	?Alotofcarmanufacturersenterthemarketandshowenthusiasmforinnovation,bringinginmoreopportunitiesforcomponents?MoremotorizedandsmartASP
车的形态变化（标准化、模块化设计）	硬件格局走向集中，软件及服务生态建立
Changeinformofvehicle(standardizedandmodulardesign)	Hardwaretendstowardsconcentrationandtheecosystemofsoftwareandserviceisestablished

Wehavebeenengagedinautomotivebusinessformanyyears,atpresent,focusonautomotiveelectricsandsmartnetworking,orthe“bloodvesselsandnervoussystem”ofautomotives,andofferlow-voltageautomotivewireharness,specialwireharness,high-voltagewireharnessfornewenergyvehicles,high-speedconnector,smartelectricbox,road-sideunit(RSU),telematicscontrolunit(TCU),centralgatewayandotherproducts.Wireharnessisanessentialsystem-levelcomponentforavehicle,isflexible,importantandwidelyused,coversallconfigurationsofavehicle,andprovidesreliablepowersupply,signalsanddatatoallelectricappliances,sotheyserveas“arteries”ofthe“neuralnetwork”ofavehicle.Automotivewireharnessisamainarterysupplyingnutrientsthroughoutthevehicle,whilespecialwireharnessisan“umbilicalcord”or“nerveending”,whichobtainspowerandsignalsfromtheautomotivewireharnessandeffectsswitchesandconnectionsamongdifferentsensors,actuatorsorothercomponents.Throughverticalintegration,wehavegrownintoacomprehensivesuppliercoveringdesign,manufacturingandvalidationofautomotivewireharness,specialwireharnessandsmartelectricbox.

Alongwiththerapidgrowthofsmartelectricvehiclesthroughouttheworld,high-voltagewireharnessesandconnectorswillconstituteanincreasinglyhighproportiononfuturevehicles.Wehavedesignedanddevelopedallkindsofhigh-voltagewireharnessesandconnectorsusedonavehicle,includinghigh-voltagewireharness,charging

connector,high-voltageconnector,busbar,etc.

高压连接器	母排	充电枪、充电座、充电线束总成	母排系统总成
High-voltageconnector	Busbar	Charginggun,chargingdock&chargingwireharnessassembly	Busbarsystemassembly

Duetotheconcentrationofautomotiveelectronicarchitecture,inordertorealizemorerapidandaccuratecommunication,thedemandsforvariousautomotivedatacommunicationmodulesandinterfacesaregrowingcontinuously,suchasgateway,remorecommunicationandothermodulesrelatedtoLIN,CANand100M/gigabitethernettransmission.However,thetransmissionofsuchhigh-speedsignalsfacesnewchallegnes.Ourproprietarygigabitethernetconnectoradoptsawhollyshieldeddoublecableconnectionstructure,andcanbewidelyusedoninfotainment,ADAS,domaincontrollerandotherproducts.

高速连接器应用	物理接口及连接类型
High-speedconnectorapplication	Physicalinterfaceandtypeofconnection

TheInternetofVehiclesreliesonthenew-generationinformationcommunicationtechnology,receives

informationfromandtransmitsinformationtomovingvehicles,soastorealizenetworkingbetweenvehicles,betweenvehiclesandpeople,betweenvehiclesandroads,andbetweenvehiclesandserviceplatforms,andcanplayanimportantroleinvehiclesafety,trafficcontrol,informationservice,smartcityandintelligenttransportation.Atpresent,theInternetofVehiclesapplicationsarekeyprojectsofgovernmentandOEMs,andrequirecoordinationamongmultipledevices,suchasroad-sideunit(RSU)whichcollectsenvironment,trafficcondition,trafficsignandotherinformationandsendsthesametovehicles,telematicscontrolunit(TCU)whicheffectstwo-waycommunicationbetweenvehiclesandexternalnetworks,centralgateway(CGW)whichconnectsallelectronicdevicesonavehicle,andotherproducts.Wefocusonthedevelopmentofwirelesscommunicationandautomotiveelectronicproducts,andcurrentlyofferRSU,TCUandCGW,amongothers.

Byleveragingourprecisionmanufacturingplatformandoutstandingcustomerchannels,ourlow-voltage,high-voltageandhigh-speedwireharness,connector,smartnetworkingandotherproductshaverapidlyenteredthesupplychainsofmajordomesticandforeigncustomers,accumulatedrichcasesofapplicationandbeenwidelyrecognizedbyourcustomers.Meanwhile,wekeeppacewithourpremiumcustomersathomeandabroad,accuratelygraspthedevelopmentdirectionoftechnologiesandtheindustry,andactivelypromotethetechnologicalupgradingofproductsandreductionofcoststhroughtechnology,tocontinuouslyprovideourcustomerswithproductsandsolutionsthatarecompetitiveinbothtechnologyandbusiness.

5.Mainmarketandbusinessdevelopment

Eachmainfieldinwhichweoperatehasahugemarket.Wehavesubstantiallythesameresolutionandpersistenceinpursuinggrowthineachfield.Fromtheperspectiveofsustainabledevelopment,ourtoppriorityistoinvestinthefuture.In2020,ourR&DexpensestotaledRMB5.745billion.Inthefuture,wewillcontinuetoinvestinallmainfieldsofproductsandbusiness,makeforward-lookingdeployments,andpreventandcontrolrisks,torealizehealthydevelopment.

Growthofmainbusiness
Areaofbusiness	Typeofbusiness/products	Marketsizein2020(inRMB100million)	Compoundannualgrowthrateofmarketsize	Source
Consumerelectronics	Smartphone	27?915	3.60%	IDS,Statista
	PC	11?010	0.20%	Gartner,IDS,Statista
	AR/VR	782	56.90%	IDC

	TWS	3?731	18.60%	MarketsandMarkets
	Smartwatch	1?605	19.60%	AlliedMarketResearch
	Wirelesscharging	820	14.50%	GlobalMarketInsights
	UAV	668	14%	EastMoney,InteractiveAnalysis
	Dock/Dongle	434	2.50%	Industryreport,internalanalysis
Subtotal		46?964
Communication	ICTequipment	11?137	5%	IDC
	Cable/connector	2?110	8%	Bishop
	Opticalproducts	716	10%	LightCounting
Subtotal		13?964
Automotive	Wireharness	2?908	3.10%	MarketsandMarkets
	Connector	1?265	5%	ResearchandMarkets
	ADAS	2?358	20.7%	MarketsandMarkets
	Smartcabin	3?486	11%	AlliedMarketResearch,Stratreview,StatistaResearchDepartment
	Smartconnectivity	45	44.20%	MarketsandMarkets
Subtotal		10?061
Total		70?990

Duringthereportingperiod,werankedthesecondonthe33

listoftop100electroniccomponentmanufacturersofChina(2020)publishedbytheChinaElectronicComponentsAssociation,andwereawardedthehonorabletitlesof“top500privateenterprisesofChina”,“top500privatemanufacturersofChina”,“top100electronicinformationmanufacturersofGuangdong”and“40mostrespectedlistedcompaniesoftheShenzhenSpecialEconomicZoneinthepast40years”,amongothers.II.Materialchangesinmajorassets

1.Materialchangesinmajorassets

Majorassets	Reasonofmaterialchanges
Equityassets	Nomaterialchange
Fixedassets	A44.16%increaseyearonyear,primarilyduetoanincreaseininvestmentinfactorybuildings,dormitoriesandequipment
Intangibleassets	Nomaterialchange
Constructioninprogress	A84.40%increaseyearonyear,primarilyduetoanincreaseininvestmentinuncompletedfactorybuildinganddormitoryconstructionprojectsandequipment
Short-termborrowings	A81.87%increaseyearonyear,primarilyduetoanincreaseinborrowingsforworkingcapitalpurpose
inventories	A71.55%increaseyearonyear,primarilyduetoanincreaseininventorystoragelevelalongwithourbusinessgrowth
Notespayable	A37.74%decreaseyearonyear,primarilyduetoadecreaseinnotetransactions
Deferredincome	A66.11%increaseyearonyear,primarilyduetoanincreaseingovernmentgrantsascapitalcontribution
Accountspayable	A33.49%increaseyearonyear,primarilyduetoanincreaseininventorystoragelevelalongwithourbusinessgrowth

2.Majoroverseasassets

□Applicable√N/A

III.Analysisofcorecompetencies

Sinceourestablishment,wehaveadheredtoouroriginalintention,focusedonprecisionmanufacturing,perseveredinsystematicthoughtandprocessinnovation,keptpacewiththetimes,continuouslyinnovatedintraditionalsolutions,andbeencommittedtoprovidingourcustomerswithcompleteandperfectcomprehensivesolutions.Afteryearsofforward-lookingdeployment,deepploughingandintensivecultivation,wehaveachievedcontinuousandrapidgrowth,andgainedcorecompetitiveadvantagesinhumanresources,strategicdeployment,technologicalinnovation,qualityassurance,customerserviceandotherareas.Ourcorecompetenciesarereflectedinthefollowingaspects:

1.Talentselection,training,useandretentionmechanismsdeeplyintegratedwithcorporateculture

Thecorecompetenciesofacompanywillbeultimatelyreflectedinthesoftpowerarisingfromin-depthintegrationandmutualnourishmentoftalentsandcorporateculture.Coretalentsarethebasisforthesustainabledevelopmentofacompanyandthecornerstoneforcultivatingthetalentsrequiredbyacompany.Wehaveadheredtothestrategyofinvigoratingthebusinessthroughtalents,andcontinuouslyimprovedourtalentechelonbuildingsystemandtalentpoolmechanism.Wevigorouslyrecruitoutstandingtalentsrequiredinourdevelopmentwhorecognizeandconformtothedistinctivecharacteristicsofourcorporateculture,tocontinuouslyaugmentourteamofcoretalents.Ontheotherhand,wecontinuouslyimproveourtalenttrainingsystemandtalentselectionsystem.Alongwiththegrowthofourbusiness,wecontinuouslyputforwardnewandreasonablerequirementsforouremployees,encouragethemtomakeselfbreak-throughintheboundaryoftheircapabilities,andcontinuouslyimprovetheirpersonalcompetencesandmanagementcapabilities,tocontributenewenergytoourdevelopment.Underthenurtureofourcorporatecultureofbeingpragmaticandenterprising,constantlystrivingforperfection,andfulfillingthemissions,weprovidedthekeyemployeeswithavastspacetoexercisetheirtalents,effectivelystimulatedtheirsenseofmission,senseofachievementandsenseofcollectivehonor.Atpresent,wehaverecruitedoutstandingtalentsinmaterials,automation,electronicinformation,molds,businessmanagementandotherfieldsthroughouttheworld,tocreateatalentpoolforoursustainabledevelopment.

Weclearlyknowhowtoattractandretaintalents.Todevelopavirtuouscircleofpeoplecreatingtheenvironmentandtheenvironmentcreatingpeoplethroughin-depthintegrationoftalentsandcorporatecultureisourstrongestcorecompetency.Througheffectivetalentmechanisms,wehavesufficienttalentsinourtraditionalsuperiorfields,andhavelaidthefoundationforourrapiddevelopmentinnewareasandscopesofbusiness.

2.Combinationofforward-lookingdeploymentwithR&Dandtechnologicalinnovation

Ourmanagementcloselyfollowsuponmarkettrendsanddevelopmentsoftheindustry,throughindustrialresearchesandinternalseminars,reviewsourdevelopmentsituations,analyzestheboundariesofourbusiness,enhancestheimplementationofthe“twofive-year”strategicplan,andcontinuouslyexploresthewaysofdiversifiedinnovationsanddevelopment.Ourdevelopmenttowardsnewproductsandnewareasisbasedonmulti-dimensionalanalysisofcustomerdemands,competitors,thevaluewecanprovide,thespacewecanplay,profitabilityandotheraspectsoftheindustryandcustomers,anddetailedsandtableexercisebyourcoremanagement.Withrespecttothevaluethatwecanprovidetoourcustomers,inadditiontoourverticallyintegratedone-stopservicecapabilities,wealsoattachgreatimportancetomasteringthetechnologiesofandintegratingrelatedmodules,tominimizerepeatedinputofresources,increasetheyieldrate,andproduceamultiplyingeffect,soastoreducetheoverallcostsofcustomersandensureourreturnoninvestment.

WefirmlybelievethatR&Dandtechnologicalinnovationareanimportantmeanstorealizeforward-lookingdeployment,andwilldriveourdevelopment.Sinceourlisting,wehaveplacedR&Dandinnovationonanimportantpositioninourdevelopment,madecontinuousinvestmentsintechnologyR&D,vigorouslyupgradedtraditionalmanufacturingprocesses,continuouslyimprovedthelevelofautomaticproduction,andrealizedplatformizationofallprecisionmanufacturingprocesses.Wealsoattachgreatimportancetothelong-termdevelopmentofunderlyingmaterialsandinnovativeproductiontechnologies.OurR&Dteamhas

continuouslylearnedandexploredadvancedprecisionmanufacturingtechnologiesandproductapplicationsinthecountriesandregionsmasteringfrontiertechnologies,andestablishedanumberofadvancedtechnologydevelopmentlabswithcertaincorecustomers,tojointlydevelopfrontiertechnologies,suchastheform-in-placetechnology,AOIappearanceinspectionandlaserwelding.WehaveestablishedadvancedproductiontechnologyandmanufacturingprocessR&DplatformsinDongguan,Kunshan,TaiwanandtheUnitedStates,andownaR&Dandintelligentmanufacturingteamtakingtheleadintheindustry.

OurR&DexpensesaremainlyclassifiedintoearlystageR&Dexpensesandproductupgradingexpenses.EarlystageR&Dexpensesareincurredinconnectionwithmedium-to-longtermproductandbusinessplanninganddeployment,andcompriseinvestmentsinnewproductsandnewareasandR&Dexpensesrelatingtounderlyingtechnologies,accountingforabout30%ofourtotalR&Dexpenses.ProductupgradingexpensesareincurredintheprocessfromconcepttoNPI(newproductintroduction)ofnewsolutionsandnewproducts.AllearlystageR&Dexpensesandproductupgradingexpensesareexpensedasincurredtoreducethepressureofassetamortizationcostsinthefuture.OurR&Dexpenseshavebeencontinuouslyincreasing,andtotaledRMB12.636billioninthepastthreeyears.Inthereportingperiod,ourR&DexpensestotaledRMB5.745billion,representing6.21%ofoperatingrevenue.Asoftheendofthereportingperiod,weowned2?139validpatents.ThecontinuousandsteadyR&Dinvestmentswillnotonlyconsolidateourleadingpositionandadvantagesintheindustry,butalsoenhanceourriskbearingcapabilityinanever-changingmacroenvironment,andlayasolidfoundationforourcontinuousandrapiddevelopmentinthefuture.

3.Advancedmanufacturingandqualitymanagementsystem

Qualityisthefootholdofacompany,andoneofthemostimportantcorevaluesprovidedbyacompanytoitscustomers.Sinceourestablishment,wehaveadopted“qualityfirst”asoneofourcorporatevalues,establishedandimprovedthequalitymanagementsystemusingscientificandeffectivequalitymanagementapproaches,andintegratedqualityassuranceintothewholeprocessfromdesign,manufacturingtoinspectionofproducts.Duetoourexcellentqualityassurancecapability,wehavereceivedpraisefromourcustomerscontinuously,andenhancedcustomeradhesion.

WehaveafullsetofadvancedNPI(newproductintroduction)managementprocess,andcontrolqualityfromthedevelopmentanddesignofproducts,tolayasolidbasisforsuccessfulmassproductionoftheproducts.Intheeachstageofdevelopmentofanewproduct,suchasPOC(proofofconcept),Proto(modelverification),EVT(engineeringverificationtest),DVT(designverificationtest),PVT(processverificationtest)andMP(massproduction),etc.,wetakethehighestrequirementformassproductionthateachstageshouldsatisfyasthecriteriaforapprovalofentryintothenextstage.Weattachgreatimportancetoqualityprecautions,andimplementdesignqualitycontrolsfocusingonquality,cost,manufacturingandautomation,toshortentheperiodfromengineeringdevelopmenttomassproduction.

Asagloballeadingproviderofdiversifiedcomponentsolutions,high-qualityprecisionmanufacturinghasalwaysbeenoneofourcorecompetencies.Sinceourlisting,ourprecisionmanufacturingcapabilityhasdevelopedfrom“automationwithpassivepositioning”to“automationwithactivepositioning”andfinallyto“fullautomaticandintelligent”super-precisionmodularizedmanufacturingtoday.Intheautomaticmanufacturingofproducts,weconnectproductdesignwiththedesignofautomaticmanufacturingprocessseamlessly,andonthebasisofensuringourprocesscapabilityatkeyworkstationstakestheleadintheindustry,haveintroducedvisualrobotstoconductAOI(automaticopticalinspection),torealizeactiveandmutualpositioningbetweencomponentsandfixtures.Inaddition,weusebigdataandAItechnologies,inconjunctionwithourproprietaryalgorithms,tofeedbackreal-timemeasuringandtestingdata,therebyensuringthereliablequalityassuranceandfulltraceabilityofproducts,andenablingtheautomaticproductionlinestohavethedeeplearningcapability,torealizeclose-endcontrolovertheautomationtechnology.Throughtheintroductionofintelligentlogisticsandwarehousing,wehaveformallyenteredintothestageof“intelligentprecisionmanufacturing”from“precisionmanufacturing”intheearlystageand“qualityassuredprecisionmanufacturing”inthemiddlestage.

4.All-roundcustomer-orientedculture

Sinceourestablishment,wehaveadheredtothephilosophyof“customerfirst”,andbeencommittedtoprovidingourcustomerswithcompleteandperfectcomprehensivesolutions,takingintocomprehensiveconsiderationresponsespeed,engineeringcooperation,servicequality,flexibledelivery,costcontrolandotherfactors.Ourleadingtechnologiesandexcellentqualityassurancecapabilityhavehelpedusbuildagoodbrandimageandreputationintheindustry,andbroughthigh-qualitycustomerstous.Afteryearsofcultivation,wehaveestablishedstablecooperationrelationshipswithalotofgloballeadingbrandsandmanufacturersinthefieldsofconsumerelectronics,communicationandautomotive.Overtheyears,wehavekeptpacewiththestrategicstepsmadebyourmajorcustomers,cautiouslyassessedthedevelopmenttrendsoftheindustryfromtheperspectiveofbrandcustomersandendconsumers,andmadeforward-lookingdeploymentstooccupythenewmarketsandnewchannels,toensurethatwemaintainthelead.Thinkwhatcustomersthinkandbeeagertohelpthecustomersinneed.Undertheguidanceoftheservicephilosophyof“customerfirst”,inadditiontofulfillingthetasksassignedbythecustomers,wehavealsocontinuouslyidentifiedthepainpointsofthecustomersintheirapplications,givenfullplaytoourresourceandplatformadvantages,andtakentheinitiativetoprovidethecustomerswithoptimizationproposalsandsuggestions,tohighlightourcompetencies.Inaddition,thehighstandardsandstrictrequirementsofourcorecustomershavepromotedcontinuousimprovementofourperformanceinproductionandmanufacturing,productR&D,internalmanagementandsocialresponsibility.

SectionIV.DiscussionandAnalysisofBusinessSituations

I.Summary

Theyearof2020isayearinwhichopportunitiescoexistedwithchallenges.Thoughweweregreatlyaffectedbymanyexternalfactors,suchastheoutbreakofCOVID-19throughouttheworld,deeprecessionofglobaleconomy,increasinglyfiercetradefrictionsbetweenChinaandtheUnitedStates,increasinglycomplicatedglobalpoliticenvironment,challengesfromcompetitorsatthestageofourrapiddevelopment,andfluctuationsinforeignexchangerates,wefocusedonR&Dinvestment,intelligentmanufacturing,systemoptimizationandcustomerserviceinrespectofourmainbusiness,furtherimprovedanddefinedour“twofive-year”strategicplan,activelyimplementedthestrategicplanfromindustrialdeployment,talentpooling,technologyaccumulation,corporategovernanceandotheraspects,continuouslyimprovedthefeasibilityofthestrategicplanandourcorecompetencies,therebylayingasolidfoundationforourrapidgrowthin2020andlong-termsustainabledevelopmentinthefuture.

Duringthereportingperiod,oursalesrevenuestotaledRMB92.501billion,a47.96%increaseyearonyear;profittotaledRMB8.136billion,a44.37%increaseyearonyear;andnetprofitattributabletotheownersoftheparentcompanytotaledRMB7.225billion,a53.28%increaseyearonyear.

II.Analysisofmainbusiness

1.SummarySee“DiscussionandAnalysisofBusinessSituations-I.Summary”.

2.Revenueandcost

(1)Componentsofoperatingrevenue

InRMB

	2020		2019		Y/Y%Change
	Amount	%ofoperatingrevenue	Amount	%ofoperatingrevenue	Y/Y%Change
Totaloperatingrevenue	92,501,259,211.54	100%	62,516,314,588.42	100%	47.96%
Bysegment
Computerconnectivityproductsandprecisioncomponents	3,521,361,712.58	3.81%	4,113,230,173.74	6.58%	-14.39%
Automotiveconnectivityproductsandprecisioncomponents	2,844,031,362.75	3.07%	2,361,411,620.89	3.78%	20.44%
Communicationconnectivityproductsandprecisioncomponents	2,265,420,000.59	2.45%	2,237,143,681.55	3.58%	1.26%
Consumerelectronics	81,818,160,358.88	88.45%	51,990,381,762.58	83.16%	57.37%
Otherconnectorsandotherbusiness	2,052,285,776.74	2.22%	1,814,147,349.66	2.90%	13.13%
Byproduct
Computerconnectivityproductsandprecisioncomponents	3,521,361,712.58	3.81%	4,113,230,173.74	6.58%	-14.39%
Automotiveconnectivityproductsandprecisioncomponents	2,844,031,362.75	3.07%	2,361,411,620.89	3.78%	20.44%
Communicationconnectivityproductsandprecisioncomponents	2,265,420,000.59	2.45%	2,237,143,681.55	3.58%	1.26%
Consumerelectronics	81,818,160,358.88	88.45%	51,990,381,762.58	83.16%	57.37%
Otherconnectorsandotherbusiness	2,052,285,776.74	2.22%	1,814,147,349.66	2.90%	13.13%
Byregion
Domesticmarket	7,454,978,348.07	8.06%	5,050,930,778.32	8.08%	47.60%

Overseasmarket

85,046,280,863.47

91.94%

57,465,383,810.10

91.92%

48.00%

(2)Segments,productsorregionsrepresentingmorethan10%ofoperatingrevenueorprofit

√Applicable□N/A

InRMB

	Operatingrevenue	Operatingcost	Grossmargin	Y/Y%Changeinoperatingrevenue	Y/Y%Changeinoperatingcost	Y/Y%Changeingrossmargin
Bysegment
Computerconnectivityproductsandprecisioncomponents	3,521,361,712.58	2,765,866,774.16	21.45%	-14.39%	-14.63%	0.22%
Automotiveconnectivityproductsandprecisioncomponents	2,844,031,362.75	2,374,148,439.75	16.52%	20.44%	20.35%	0.06%
Communicationconnectivityproductsandprecisioncomponents	2,265,420,000.59	1,818,503,189.96	19.73%	1.26%	-1.67%	2.39%
Consumerelectronics	81,818,160,358.88	67,217,502,600.73	17.85%	57.37%	61.60%	-2.15%
Otherconnectorsandotherbusiness	2,052,285,776.74	1,593,986,044.98	22.33%	13.13%	13.05%	0.05%
Byproduct
Computerconnectivityproductsandprecisioncomponents	3,521,361,712.58	2,765,866,774.16	21.45%	-14.39%	-14.63%	0.22%
Automotiveconnectivityproductsandprecisioncomponents	2,844,031,362.75	2,374,148,439.75	16.52%	20.44%	20.35%	0.06%
Communicationconnectivityproductsandprecisioncomponents	2,265,420,000.59	1,818,503,189.96	19.73%	1.26%	-1.67%	2.39%
Consumerelectronics	81,818,160,358.88	67,217,502,600.73	17.85%	57.37%	61.60%	-2.15%
Otherconnectorsandotherbusiness	2,052,285,776.74	1,593,986,044.98	22.33%	13.13%	13.05%	0.05%
Byregion
Domesticmarket	7,454,978,348.07	5,829,458,046.38	21.80%	47.60%	47.93%	-0.18%
Overseasmarket	85,046,280,863.47	69,940,549,003.20	17.76%	48.00%	51.63%	-1.97%

Incaseofanyadjustmenttothestatisticscaleformainbusinessdata,themainbusinessdataofthemostrecentreportingperiodasadjustedaccordingtothestatisticscaleappliedattheendofthecurrentreportingperiod:

□Applicable√N/A

(3)WhethertheCompany’srevenuefromsalesoftangiblegoodsishigherthantherevenuefromlaborservice?

√Yes□No

Segment	Item	Unit	2020	2019	Y/Y%Change
Computerconnectivityproductsandprecisioncomponents	Salesvolume	KPCS	510,910	622,717	-17.95%
	Output	KPCS	537,997	650,147	-17.25%
	Inventories	KPCS	27,087	27,430	-1.25%
Automotiveconnectivityproductsandprecisioncomponents	Salesvolume	1?000sets	172,912	147,558	17.18%
	Output	1?000sets	184,502	157,518	17.13%
	Inventories	1?000sets	11,590	9,960	16.37%

Communicationconnectivityproductsandprecisioncomponents	Salesvolume	KPCS	470,565	459,153	2.49%
	Output	KPCS	514,389	500,872	2.70%
	Inventories	KPCS	43,824	41,719	5.05%
Consumerelectronics	Salesvolume	KPCS	3,299,993	2,241,313	47.23%
	Output	KPCS	3,661,402	2,412,810	51.75%
	Inventories	KPCS	361,409	171,497	110.74%
Otherconnectorsandotherbusiness	Salesvolume	KPCS	312,258	287,716	8.53%
	Output	KPCS	348,814	319,340	9.23%
	Inventories	KPCS	36,556	31,624	15.60%

Analysisofchangesintherelevantdataover30%yearonyear:

□Applicable√N/A

(4)PerformanceofmaterialsalescontractsoftheCompanyasoftheendofthereportingperiod

□Applicable√N/A

(5)Componentsofoperatingcost

Classificationofsegmentsandproducts:

InRMB

Segment	Item	2020		2019		Y/Y%Change
Segment	Item	Amount	%ofoperatingcost	Amount	%ofoperatingcost	Y/Y%Change
Computerconnectivityproductsandprecisioncomponents		2,765,866,774.16	3.65%	3,239,777,227.31	6.47%	-14.63%
Automotiveconnectivityproductsandprecisioncomponents		2,374,148,439.75	3.13%	1,972,707,309.13	3.94%	20.35%
Communicationconnectivityproductsandprecisioncomponents		1,818,503,189.96	2.40%	1,849,369,458.98	3.69%	-1.67%
Consumerelectronics		67,217,502,600.73	88.72%	41,595,999,770.77	83.08%	61.60%
Otherconnectorsandotherbusiness		1,593,986,044.98	2.10%	1,409,976,187.77	2.82%	13.05%

InRMB

Product	Item	2020		2019		Y/Y%Change
Product	Item	Amount	%ofoperatingcost	Amount	%ofoperatingcost	Y/Y%Change
Computerconnectivityproductsandprecisioncomponents		2,765,866,774.16	3.65%	3,239,777,227.31	6.47%	-14.63%
Automotiveconnectivityproductsandprecisioncomponents		2,374,148,439.75	3.13%	1,972,707,309.13	3.94%	20.35%
Communicationconnectivityproductsandprecisioncomponents		1,818,503,189.96	2.40%	1,849,369,458.98	3.69%	-1.67%
Consumerelectronics		67,217,502,600.73	88.72%	41,595,999,770.77	83.08%	61.60%
Otherconnectorsandotherbusiness		1,593,986,044.98	2.10%	1,409,976,187.77	2.82%	13.05%

Analysis:

None.

(6)Changeinthescopeofconsolidationduringthereportingperiod

√Yes□NoElevennewlyestablishedoracquiredsubsidiariesorsub-subsidiariesduringthereportingperiod,namelySuzhouLanto

ElectronicLimited,LuxsharePrecisionIndustry(Jiangsu)Co.,Ltd.,LuxshareElectronic(Xingning)Co.,Ltd.,LuxshareLanto(India)Limited,ChangshuLuxshareIndustrialInvestmentManagementCo.,Ltd.,KunshanLuxshareBusinessManagementDevelopmentCo.,Ltd.,KunshanLuxshareBusinessManagementServicePartnership(L.P.),LuxshareIntelligentEquipment(Kunshan)Co.,Ltd.LuxshareIntelligentManufactureTechnology(Rugao)Co.,Ltd.,CyberAcoustics,LLC(USA)(acquiredbysharepurchase)andTaiqiaoInvestmentCo.,Ltd.,areincludedinthescopeofconsolidation.SincewehavetransferredthesharesheldinLuxsharePrecisionIndustry(Xi’an)Ltd.duringthereportingperiod,itisremovedfromthescopeofconsolidation.

(7)Materialchangesoradjustmentsinrespectofbusiness,productsorservicesoftheCompanyduringthereportingperiod

□Applicable√N/A

(8)MajorcustomersandsuppliersMajorcustomersoftheCompany:

Aggregatesalesrevenuefromtop5customers(RMB)	75,879,315,144.78
Proportionofaggregatesalesrevenuefromtop5customerstoannualsalesrevenue	82.03%
Proportionofaggregatesalesrevenuefromrelatedpartiesamongtop5customerstoannualsalesrevenue	0.00%

Particularsoftop5customers:

No.	Nameofcustomer	Salesrevenue(RMB)	%ofannualsalesrevenue
1	Customer1	63,842,579,978.12	69.02%
2	Customer2	4,233,870,465.51	4.58%
3	Customer3	3,919,586,381.66	4.24%
4	Customer4	2,499,522,718.90	2.70%
5	Customer5	1,383,755,600.58	1.50%
Total	--	75,879,315,144.78	82.03%

Otherinformationofmajorcustomers:

□Applicable√N/AMajorsuppliersoftheCompany:

Aggregatepurchaseamountfromtop5suppliers(RMB)	28,624,009,739.41
Proportionofaggregatepurchaseamountfromtop5supplierstoannualpurchasecost	39.54%
Proportionofaggregatepurchaseamountfromrelatedpartiesamongtop5supplierstoannualpurchasecost	0.00%

Particularsoftop5suppliers:

No.	Nameofsupplier	Purchaseamount(RMB)	%ofannualpurchasecost
1	Supplier1	14,163,172,484.10	19.56%
2	Supplier2	8,330,757,002.45	11.51%
3	Supplier3	2,640,184,299.13	3.65%
4	Supplier4	1,893,165,690.84	2.62%
5	Supplier5	1,596,730,262.89	2.21%
Total	--	28,624,009,739.41	39.54%

Otherinformationofmajorsuppliers:

□Applicable√N/A

3.Expenses

InRMB

2020

2019

Y/Y%Change

Reasonofmaterialchanges

Salesexpenses	477,047,875.58	498,274,838.05	-4.26%	Primarilyduetotransferofthefreightoriginallyincludedinthe“salesexpenses”to“costofgoodssold”uponadoptionofthenewrevenueaccountingstandard
Generalexpenses	2,463,953,208.63	1,524,835,061.38	61.59%	Primarilyduetoanincreaseinmanagementpersonnelalongwithourbusinessgrowth
Financialexpenses	904,828,142.89	330,073,445.45	174.13%	Primarilyduetofluctuationsinforeignexchangerates
R&Dexpenses	5,744,805,136.33	4,375,970,646.47	31.28%	PrimarilyduetoinvestmentinnewR&Dprojectsandupgradingofproducts

4.R&Dexpenses

√Applicable□N/AWefirmlybelievethatR&Dandtechnologicalinnovationareanimportantmeanstorealizeforward-lookingdeployment,andwilldriveourdevelopment.Sinceourlisting,wehaveplacedR&Dandinnovationonanimportantpositioninourdevelopment,madecontinuousinvestmentsintechnologyR&D,vigorouslyupgradedtraditionalmanufacturingprocesses,continuouslyimprovedthelevelofautomaticproduction,andrealizedplatformizationofallprecisionmanufacturingprocesses.Wealsoattachgreatimportancetothelong-termdevelopmentofunderlyingmaterialsandinnovativeproductiontechnologies.OurR&Dteamhascontinuouslylearnedandexploredadvancedprecisionmanufacturingtechnologiesandproductapplicationsinthecountriesandregionsmasteringfrontiertechnologies,andestablishedanumberofadvancedtechnologydevelopmentlabswithcertaincorecustomers,tojointlydevelopfrontiertechnologies,suchastheform-in-placetechnology,AOIappearanceinspectionandlaserwelding.WehaveestablishedadvancedproductiontechnologyandmanufacturingprocessR&DplatformsinDongguan,Kunshan,TaiwanandtheUnitedStates,andownaR&Dandintelligentmanufacturingteamtakingtheleadintheindustry.

	2020	2019	Y/Y%Change
NumberofR&Dpersonnel	15,154	12,809	18.31%
ProportionofR&Dpersonneltototalnumberofemployees	8.79%	9.33%	-0.54%
AmountofR&Dexpenses(RMB)	5,744,805,136.33	4,375,970,646.47	31.28%
ProportionofR&Dexpensestooperatingrevenue	6.21%	7.00%	-0.79%
AmountofR&Dexpensescapitalized(RMB)	0.00	0.00	0.00%
ProportionofcapitalizedR&DexpensestototalR&Dexpenses	0.00%	0.00%	0.00%

AnalysisofsignificantchangeintheproportionofR&Dexpensestooperatingrevenuecomparedwith2019:

□Applicable√N/AAnalysisandreasonablenessofsignificantchangeintheproportionofR&Dexpensescapitalized:

□Applicable√N/A

5.Cashflows

InRMB

Item	2020	2019	Y/Y%Change
Cashprovidedbyoperatingactivities	101,344,544,382.43	62,199,885,398.20	62.93%
Cashusedinoperatingactivities	94,471,332,896.38	54,733,897,223.87	72.60%
Newcashflowsfromoperatingactivities	6,873,211,486.05	7,465,988,174.33	-7.94%
Cashprovidedbyinvestmentactivities	56,134,501,620.87	80,442,800,512.34	-30.22%
Cashusedininvestmentactivities	65,282,235,798.95	86,740,415,996.54	-24.74%
Newcashflowsfrominvestmentactivities	-9,147,734,178.08	-6,297,615,484.20	45.26%
Cashprovidedbyfinancingactivities	31,843,182,893.74	22,531,435,875.30	41.33%
Cashusedinfinancingactivities	25,056,689,251.71	21,459,077,099.60	16.76%
Newcashflowsfromfinancingactivities	6,786,493,642.03	1,072,358,775.70	532.86%
Netincreaseincashandcashequivalents	4,317,464,527.08	2,337,819,815.93	84.68%

Analysisofmaincausesofmaterialchangesintherelateddata:

√Applicable□N/A

1.Thecashprovidedbyoperatingactivitiesincreasedby62.93%yearonyear,primarilyduetoanincreaseincustomerorders,andthetaxrebatesandgovernmentgrantsreceived;

2.Thecashusedinoperatingactivitiesincreasedby72.6%yearonyear,primarilyduetoanincreaseininventorystoragelevelandemployeebenefitspayablealongwithourbusinessgrowth;

3.Thecashprovidedbyinvestmentactivitiesdecreasedby30.22%yearonyear,primarilyduetoadecreaseincashprovidedbyforwardexchangehedgingandwealthmanagementproducts;

4.Thecashusedininvestmentactivitiesdecreasedby24.74%yearonyear,primarilyduetoadecreaseininvestmentinwealthmanagementproducts;

5.Thecashprovidedbyfinancingactivitiesincreasedby41.33%yearonyear,primarilyduetoanincreaseinborrowings;

6.Thecashusedinfinancingactivitiesincreasedby16.76%yearonyear,primarilyduetoanincreaseinrepaymentofloansandinterestexpenses.Analysisofsignificantdifferencebetweennetcashflowsfromoperatingactivitiesduringthereportingperiodandnetprofitincurrentyear:

□Applicable√N/A

III.Analysisofnon-mainbusiness

√Applicable□N/A

InRMB

	Amount	%oftotalprofit	Reason	Whetherornotsustainable
Investmentincome	648,357,066.36	7.97%	Revenuefrominvestmentsandwealthmanagementproductsclassifiedasfinancialassetsatfairvaluethroughprofitorloss	No
Gainorlossonchangesinfairvalue	329,044,852.43	4.04%	Revenuefrominvestmentsclassifiedasfinancialassetsatfairvaluethroughprofitorloss	No
Impairmentlossonassets	-139,288,911.05	-1.71%	Allowanceforimpairmentofinventoriesand	No

			fixedassets
Non-operatingincome	21,932,288.24	0.27%	Revenuefromretirementofassets	No
Non-operatingexpenses	53,956,792.78	0.66%	Lossondisposaloffixedassets	No
Gainondisposalofassets	-2,309,694.02	-0.03%	Disposalofproductionequipment	No
Othergains	450,748,795.89	5.54%	Governmentgrantsrelatedtoincome	No
Creditloss	-8,590,000.67	-0.11%	Impairmentlossonaccountsreceivableandotherreceivables	No

IV.Analysisofassetsandliabilities

1.MaterialchangesincomponentsofassetsSinceJanuary1,2020,weinitiallyadoptedthenewrevenueaccountingstandardorthenewleaseaccountingstandardandadjustedthebeginningbalancesofrelatedfinancialstatementitems.Applicable

InRMB

	December31,2020		January1,2020		Y/Y%Change	Reasonofmaterialchange
	Amount	%oftotalassets	Amount	%oftotalassets	Y/Y%Change	Reasonofmaterialchange
Cashandbankbalances	10,528,245,765.93	15.04%	6,180,466,259.01	12.52%	2.52%
Accountsreceivable	13,839,155,340.47	19.77%	13,243,625,572.22	26.82%	-7.05%	Primarilyduetoanincreaseintheaccountsreceivablerecoveredduetooptimizationofcredittermstocustomers
Inventories	13,211,009,381.15	18.87%	7,700,857,888.16	15.60%	3.27%	Primarilyduetoanincreaseininventorystoragelevelalongwithourbusinessgrowth
Investmentproperties	47,592,110.24	0.07%	52,656,477.74	0.11%	-0.04%
Long-termequityinvestment	1,208,540,333.29	1.73%	303,050,580.10	0.61%	1.12%	Primarilyduetoanincreaseininvestmentinassociates
Fixedassets	19,761,012,854.95	28.22%	13,707,298,535.36	27.76%	0.46%	Primarilyduetotransferoffactorybuildinganddormitoryconstructionprojectsofsubsidiariestofixedassetsandanincreaseininvestmentinequipment
Constructioninprogress	1,596,064,894.58	2.28%	865,549,438.56	1.75%	0.53%	Primarilyduetoanincreaseinnewfactorybuildinganddormitoryconstructionprojectsofsubsidiariesandequipmentthathasnotyetbeenaccepted
Short-termborrowings	7,577,068,798.49	10.82%	4,166,302,223.17	8.44%	2.38%	Primarilyduetoanincreaseinborrowings
Long-termloans	1,495,199,238.41	2.14%	1,562,908,824.30	3.17%	-1.03%
Advancestosuppliers	183,886,937.70	0.26%	212,018,611.91	0.43%	-0.17%	Primarilyconsistingofacquisitionofmoldsandfixturesandpaymentofsecuritydeposit
Otherreceivables	407,990,780.79	0.58%	338,237,923.96	0.68%	-0.10%	Primarilyduetoanincreaseinadvancesforcustomers
Othercurrentassets	1,804,485,645.49	2.58%	1,484,451,151.73	3.01%	-0.43%	Primarilyduetoanincreaseinprepaidincometaxand

						deductibleinputtax
Long-termdeferredexpenses	488,087,044.97	0.70%	352,042,451.40	0.71%	-0.01%	Primarilyconsistingofroutinerenovationexpensesoffactorybuildingsandworkshops
Othernon-currentassets	1,223,199,642.61	1.75%	1,432,566,528.37	2.90%	-1.15%	Primarilyconsistingofequipment,projectandlandcostsprepaid
Notespayable	128,572,111.54	0.18%	206,496,660.20	0.42%	-0.24%	Primarilyduetoadecreaseinnotetransactions
Accountspayable	23,051,557,603.83	32.92%	17,268,223,180.16	34.97%	-2.05%	Primarilyduetoanincreaseininventorystoragelevelalongwithourbusinessgrowth
Otherpayables	146,162,097.14	0.21%	352,390,271.77	0.71%	-0.50%
Othercurrentliabilities	623,257,555.89	0.89%	646,115,152.49	1.31%	-0.42%	Issuanceofshort-termbonds
Deferredincome	425,345,982.64	0.61%	256,059,554.91	0.52%	0.09%	Primarilyduetoanincreaseingovernmentgrantsascapitalcontribution
Deferredtaxliabilities	966,092,212.95	1.38%	598,184,393.00	1.21%	0.17%

2.Assetsandliabilitiesatfairvalue

□Applicable√N/A

3.Encumbrancesonassetsasoftheendofthereportingperiod

Asoftheendofthereportingperiod,ourmainassetsarefreeandclearofanysequestration,attachment,freeze,mortgageorpledge,oranyconditionforandprohibitiononliquidation,andcouldbeusedtosetoffliabilities.

V.Analysisofinvestments

1.Overallsituation

√Applicable□N/A

Amountofinvestmentin2020(RMB)	Amountofinvestmentin2019(RMB)	Y/Y%Change
3,122,574,000.00	1,302,756,044.42	139.69%

2.Majorequityinvestmentsacquiredinthereportingperiod

√Applicable□N/A

InRMB

Investee

Mainbusiness

Methodofinvestment

Amountofinvestment

Shareholdingpercentage

Sourceoffunds

Partner

Termofinvestment

Producttype

Statusasofthebalancesheetdate

Expectedincome

Investmentincome/lossinthereportingperiod

Whetherornotinvolvedinanylitigation

Dateofdisclosure(ifany)

Reference(ifany)

LuxshareChangshu

Businesssubjecttolicensing:importandexportofgoods;importandexportoftechnologies.Businessnotsubjecttolicensing:manufacturingofelectroniccomponentsandelectro-mechanicalcomponents;salesofelectroniccomponentsandelectro-mechanicalcomponents;salesofpowerelectroniccomponents;manufacturingofwearablesmartequipment;salesofwearablesmartequipment;manufacturingofcommunicationequipment;salesofcommunicationequipment;manufacturingofopto-electroniccomponents;salesofopto-electroniccomponents;manufacturingofspecialrubberprocessingequipment;salesofspecial

Capitalinjection

615,000,000.00

100.00%

Self-ownedfunds

N/A

Long-term

Electroniccomponents

Paidinfull

0.00

April21,2020

AnnouncementNo.2020-028

rubberprocessingequipment;manufacturingofcomputersoftware,hardwareandperipherals;technicalservices,technologydevelopment,technicalconsulting,technicalexchanges,technologytransferandtechnologypromotion;leaseofnon-residentialproperties.

LantoKunshan

Computerperipherals,connectionlinesandconnectors;new-typeelectroniccomponents(electronicdevices),instrumentsandaccessoriesforcommunicationandITpurpose,plastic,rubberandhardwareproducts;research,development,productionandsalesofspecialelectronicequipment,testinginstruments,tools,molds,remotecontroldynamicmodelsandrelatedsuppliesandcomponents;productionandsalesofpowersupplyunitsandwirelesstransmissionproducts;developmentofsoftware;importandexportofgoodsandtechnology(exceptany

Capitalinjection

1?100,000,000.00

100.00%

Offeringproceeds

N/A

Long-term

Smartmobileterminalmodules

Paidinfull

0.00

December3,2020

AnnouncementNo.2020-101

businessthatissubjecttolicensing,restrictedorprohibitedpursuanttotheapplicablelawsandadministrativeregulations)(anybusinesssubjecttoapprovalaccordingtolawmayonlybeoperatedwiththeapprovalofthecompetentauthorities).Businessnotsubjecttolicensing:manufacturingofautomotivecomponentsandaccessories;researchanddevelopmentofautomotivecomponents;wholesaleofautomotivecomponentsandaccessories;salesofmechanicalpartsandcomponents;manufacturingofopto-electroniccomponents;salesofopto-electroniccomponents;researchanddevelopmentofspecialelectronicmaterials;researchanddevelopmentofhouseholdappliances.

LuxshareKunshan

Developmentandproductionofopto-electronicswitches,smartsensors,new-typeinstrumentcomponents,opto-electronicdevices,ITandcommunication

Capitalinjection

600,000,000.00

100.00%

Offeringproceeds

N/A

Long-term

Smartwearableequipmentcomponents

Paidinfull

0.00

December3,2020

AnnouncementNo.2020-101

	integratedcircuitchipsandproducts;salesofintegratedcircuitchipsandproducts;manufacturingofsmarthomedevices;salesofsmarthomedevices;technicalservices,technologydevelopment,technicalconsulting,technicalexchanges,technologytransferandtechnologypromotion;technologypromotionandapplicationservices;dataprocessingandstoragesupportservices;informationtechnologyconsultingservices.
Total	--	--	2?315,000,000.00	--	--	--	--	--	--	0.00	0.00	--	--	--

3.Majornon-equityinvestmentsthathavenotyetbeencompletedinthereportingperiod

□Applicable√N/A

4.Investmentinfinancialassets

(1)Investmentinsecurities

√Applicable□N/A

InRMB

Typeofsecurity

Securitycode

Shortname

Initialinvestmentcost

Methodofmeasurement

Beginningcarryingamount

Gainorlossonchangesinfairvalueinthereportingperiod

Aggregatechangesinfairvaluerecordedinequity

Amountacquiredinthereportingperiod

Amountsoldinthereportingperiod

Gainorlossinthereportingperiod

Endingcarryingamount

Accountingitem

Sourceoffunds

Stocklistedondomesticoroverseasmarket

603595

TonyElectronic

22,500,000.00

Fairvalue

170,733,150.00

-26,855,115.76

80,625,922.54

0.00

29,656,715.20

-21,944,054.56

114,221,319.04

Investmentinotherequityinstruments

Self-ownedfunds

Total	22,500,000.00	--	170,733,150.00	-26,855,115.76	80,625,922.54	0.00	29,656,715.20	-21,944,054.56	114,221,319.04
Disclosuredateoftheannouncementoftheboardofdirectorsapprovingtheinvestmentinsecurities
Disclosuredateoftheannouncementoftheshareholders’meetingapprovingtheinvestmentinsecurities(ifany)

(2)Investmentinderivatives

√Applicable□N/A

InRMB0’000

Counterparty	Affiliation	Whetherornotarelated-partytransaction	Typeofderivative	Initialinvestmentcost	Dateofcommencement	Dateoftermination	Beginningbalance	Amountacquiredinthereportingperiod	Amountsoldinthereportingperiod	Allowanceforimpairmentloss(ifany)	Endingbalance	Ratioofendingbalancetothenetassetasattheendofthereportingperiod	Actualgainorlossinthereportingperiod
Bank	Non-affiliate	No	Forwardexchangecontract	2,263,77.69			226,377.69	1,363,352.75	1,541,185.19		48,545.26	1.73%	22,221.35
Bank	Non-affiliate	No	Foreignexchangeoption	1,203,39.45			120,339.45	1,623,068.88	1,279,487.94		463,920.39	16.51%	28,584.2
Total				3,467,17.14	--	--	346,717.14	2,986,421.63	2,820,673.13		512,465.65	18.24%	50,805.55
Sourceoffunds				Self-ownedfunds
Whetherornotinvolvedinanylitigation				N/A
Disclosuredateoftheannouncementoftheboardofdirectorsapprovingtheinvestmentinderivatives(ifany)				August20,2019
				April20,2020
Disclosuredateoftheannouncementoftheshareholders’meetingapprovingtheinvestmentinderivatives(ifany)				May13,2020
Analysisofrisksassociatedwiththederivativesheldinthereportingperiod(includingwithoutlimitationmarketrisk,liquidityrisk,creditrisk,operationalriskandlegalrisk)andrelatedriskcontrolmeasures				1.Weconductforeignexchangederivativetransactionsforthepurposeoffixingcosts,andavoidingandpreventingforeignexchangeandinterestraterisks,andprohibitanyspeculation.2.Wehaveestablishedstrictbusinessmanagementpolicyregardingfinancialderivativetransactions,whichcontainexplicitprovisionsontheprincipleofoperation,approvingpower,internaloperatingprocess,informationsegregationmeasures,internalriskcontrols,informationdisclosureandotherissuesrelatingtofinancialderivativetransactions,tocontroltherisksassociatedwithsuchtransactions.3.Wecarefullyexaminethetermsofcontractsenteredintowiththerelevantbanks,andstrictlyimplementtheriskmanagementpolicytopreventlegalrisks.

	4.OurFinanceDepartmentcontinuouslyfollowsuponthechangesinthemarketpriceorfairvalueoftherelevantforeignexchangederivatives,promptlyassessesthechangesinriskexposuresofsuchforeignexchangederivatives,reportstothemanagementonaregularbasis,promptlyreportstheabnormalsituationsdiscovered,callsattentiontotherelevantrisks,andtakestheappropriateemergencymeasures.5.Inordertopreventanydelayinthedeliveryofforwardexchangecontracts,weattachgreatimportancetothemanagementofaccountsreceivable,andhaveestablishedsafetymanagementmeasurestopreventanydelayinthepaymentofaccountsreceivable.6.OurInternalAuditDepartmentisresponsibleforsupervisingandauditingthedecision-making,management,executionandotherissuesinrespectofforeignexchangederivativetransactions.
Changesinthemarketpriceorfairvalueofthederivativesheldinthereportingperiod(intheanalysisofthefairvalueofderivatives,thespecificapproaches,assumptionsandparametersusedshallbedisclosed)	ChangeinthefairvalueofaforeignexchangederivativeisthedifferencebetweenitsfairmarketpriceinthemonthinwhichthedeliverydatedeterminedbytheCompanyfallsanditscontractprice.
Whetherthere’sanymaterialchangeintheaccountingpoliciesandaccountingprinciplesforthemeasurementofderivativesinthereportingperiodascomparedwiththeprecedingreportingperiod	Nomaterialchange
SpecialopinionissuedbytheindependentdirectorsregardingtheCompany’sinvestmentinderivativesandrelatedriskcontrolmeasures	WeconductforeignexchangederivativetransactionsforthepurposeofavoidingforeignexchangeriskarisingfromfluctuationsintheforeignexchangeratesofRMB,andeffectivelycontrollingtheuncertaintiesofcostscausedbyforeignexchangerisk.WehaveestablishedtheBusinessManagementPolicyRegardingFinancialDerivativeTransactions,toenhanceriskmanagementandcontroloverforeignexchangederivativetransactions.Inaddition,weonlyprovideself-ownedfunds,ratherthananyofferingproceeds,asdepositforderivativetransactions.Thereview,votingandotherproceduresrelatingtosuchtransactionshavecompliedwiththeCompanyLaw,theAOAandotherapplicableregulations.

5.Useofofferingproceeds

√Applicable□N/A

(1)Descriptionofuseofofferingproceeds

√Applicable□N/A

InRMB0’000

Yearofoffering	Methodofoffering	Totalofferingproceeds	Totalamountofofferingproceedsusedinthereportingperiod	Aggregateamountofofferingproceedsthathasbeenused	Totalamountofofferingproceedswhosepurposewaschangedinthereportingperiod	Aggregateamountofofferingproceedswhosepurposehasbeenchanged	Percentageofofferingproceedswhosepurposehasbeenchanged	Totalamountofunusedofferingproceeds	Purposeandwhereaboutsofunusedofferingproceeds	Totalamountofofferingproceedsthathasremainedunusedformorethantwoyears
2020	Publicofferingofconvertiblecorporatebonds	300?000	274?402.76	274?402.76	0	0	0.00%	24?412.95	Tocontinuetobeusedintheinvestmentprojectsforwhichthefundswereraised	0

Total	--	300?000	274?402.76	274?402.76	0	0	0.00%	24?412.95	--	0
Descriptionofuseofofferingproceeds
PursuanttotheReplyonApprovalofPublicOfferingofConvertibleCorporateBondsbyLuxsharePrecisionIndustryCo.,Ltd.fromtheChinaSecuritiesRegulatoryCommission,wepubliclyissued30?000?000convertiblecorporatebondsofparvalueofRMB100.00each,andraisedRMB3?000?000?000.00intotal.AfterdeductionoftheunderwriterfeeandsponsorfeeofRMB14,400,000.00(inclusiveoftax)paidtoourunderwriter,CITICSecuritiesCo.,Ltd.,thetotalsubscriptionamountreceivedwasRMB2?985?600?000.00,andafterdeductionoflegalfee,auditandcapitalverificationfee,creditratingfee,informationdisclosureandothercosts,thenetproceedsfromthisofferingwereRMB2?984?743?424.52.WehavealreadyinvestedRMB2?001?653?153.13ofself-raisedfundsintheprojectsforwhichthispublicofferingwasmadepriortothecompletionthereof,asverifiedbyBDOChinaShuLunPanCertifiedPublicAccountantsLLPinitsReportXinKuaiShiBaoZi[2020]No.ZB11783datedDecember1,2020.OnDecember2,2020,the27thmeetingofthe4thBoardofDirectorsreviewedandadoptedtheProposalonReplacementoftheSelf-raisedFundsInvestedinAdvancewiththeOfferingProceeds,approvingthereplacementoftheself-raisedfundsinvestedintherelevantprojectswiththeofferingproceeds.Asoftheendofthereportingperiod,RMB2?744?027?590.66oftheofferingproceedshavebeenused,andtheremainingRMB244?129?528.55willcontinuetobeusedintheinvestmentprojectsforwhichthefundswereraised.

(2)Projectsinwhichtheofferingproceedswereproposedtobeinvested

√Applicable□N/A

InRMB0’000

Committedinvestmentprojectanduseofover-raisedfunds	Whethertheprojecthasbeenchangedorpartiallychanged	Totalcommittedinvestmentamount	Totalinvestmentamountasadjusted(1)	Amountinvestedinthereportingperiod	Aggregateamountalreadyinvestedasoftheendofthereportingperiod(2)	Progressofinvestmentasoftheendofthereportingperiod(3)=(2)/(1)	Datethattheprojectisreadyforitsintendeduse	Profitearnedinthereportingperiod	Whethertheprojecthasproducedthedesiredresult	Whetherthere’sanysignificantchangeinthefeasibilityoftheproject
Committedinvestmentproject
Smartmobileterminalmoduleproductionlineupgradingandexpansionproject	No	110,000	110,000	85,895.31	85,895.31	78.09%	March1,2021		N/A	No
Smartwearableequipmentcomponentsproductionlineupgradingandexpansionproject	No	60,000	60,000	60,006.53	60,006.53	100.01%	May1,2021	24,284.19	Yes	No
Newsmartwearableequipmentprojectwithanannualproductioncapacityof4millionsets	No	60,000	60,000	60,026.57	60,026.57	100.04%	August1,2020	28,149.55	Yes	No
Replenishmentofworkingcapital	No	70,000	70,000	68,474.34	68,474.34	97.82%			N/A	No
Subtotal	-	300,000	300,000	274,402.75	274,402.75	-	-	52,433.74	-	-
Useofover-raisedfunds
N/A
Total	-	300,000	300,000	274,402.75	274,402.75	-	-	52,433.74	-	-
Failuretomeetthescheduledprogressandproducethedesiredresultandreason	None

thereof(pleasedescribeonaprojectbyprojectbasis)
Reasonofsignificantchangeinthefeasibilityoftheproject	None
Amountanduseofover-raisedfundsandprogressofusethereof	N/A
Amountanduseofover-raisedfundsandprogressofusethereof

Changeintheplaceoftheprojectinwhichtheofferingproceedswereproposedtobeinvested	N/A

Adjustmentofthemethodofimplementationoftheprojectinwhichtheofferingproceedswereproposedtobeinvested	N/A

Fundsalreadyinvestedintheprojectinwhichtheofferingproceedswereproposedtobeusedandreplacementthereof	Applicable
	WehavealreadyinvestedRMB2?001?653?153.13ofself-raisedfundsintheprojectsforwhichthepublicofferingofconvertiblecorporatebondswasmadein2020priortothecompletionthereof,asverifiedbyBDOChinaShuLunPanCertifiedPublicAccountantsLLPinitsReportXinKuaiShiBaoZi[2020]No.ZB11783datedDecember1,2020.
Temporaryreplenishmentofworkingcapitalwiththeunusedofferingproceeds	N/A

Amountofunusedofferingproceedsandreasonthereof	Applicable
Amountofunusedofferingproceedsandreasonthereof	AsofDecember31,2020,theamountofunusedofferingproceedswasRMB244?129?528.55,becausetheprojectsforwhichthefundswereraisedhavenotyetbeencompleted.
Purposeandwhereaboutsofunusedofferingproceeds	AsofDecember31,2020,theamountofunusedofferingproceedswasRMB244?129?528.55,whichwillcontinuetobeusedintheinvestmentprojectsforwhichthefundswereraised.
Problemsandothermattersexistingintheuseanddiscloseofofferingproceeds	None

(3)Changesintheprojectsinwhichtheofferingproceedswereproposedtobeinvested

□Applicable√N/AThere’snochangeintheprojectsinwhichtheofferingproceedswereproposedtobeinvestedduringthereportingperiod.

VI.Salesofmaterialassetsandequities

1.Salesofmaterialassets

□Applicable√N/ANomaterialassethasbeensoldduringthereportingperiod.

2.Salesofmaterialequities

□Applicable√N/A

VII.Analysisofmajorsubsidiariesandassociates

√Applicable□N/AMajorsubsidiariesandassociatesrepresentingmorethan10%ofthenetprofitoftheCompany:

InRMB

Companyname	Type	Mainbusiness	Registeredcapital	Totalassets	Netassets	Operatingrevenue	Operatingprofit	Netprofit
LuxsharePrecision	Subsidiary	Purchaseandsalesofelectronicproducts,datalines,connectionlines,connectors,computerandperipherals,plasticandhardwareproducts.	USD5,000,000	32,284,326,513.88	2,323,353,125.61	109,759,456,057.38	1,615,400,931.36	1,609,358,980.43
ICT-Lanto	Subsidiary	SalesandservicesinrespectofinternalandexternalconnectionlinesforIT,communicationandconsumerelectronicapplications,andprecisionconnectors.	USD83?290?323	19,811,980,244.41	2,295,968,956.16	18,661,017,270.17	723,565,414.13	623,838,824.25
LuxshareChuzhou	Subsidiary	Productionandsalesofconnectorsandconnectionlinesforcomputers,mobilephones,videogameplayerandTVsets,componentsandaccessoriesofcommunicationelectronicproducts(includingelectroplating);importandexportofgoodsandtechnologiesproducedorownedbythecompanyorothers.	RMB758,000,000	4,150,155,423.19	1,278,729,481.97	6,784,222,671.10	472,207,421.00	419,408,183.61
LuxshareSuzhou	Subsidiary	Production,research,development,salesandafter-saleserviceinrespectofelectroniccomponents,communicationequipment,computerequipmentandaccessories,moldsandsmartequipment;salesofelectro-mechanicalequipment,mechanicalequipment,electricequipment,testingequipment,automaticequipmentandaccessories,molds,plasticproducts,metalproductsandfixtures;importandexportofgoodsandtechnologiesproducedorownedbythecompanyorothers;computersoftwaretechnologydevelopmentandtechnicalservice.	RMB130,000,000	4,333,258,665.17	150,418,237.90	5,054,378,359.97	34,721,128.06	35,446,246.97
LuxshareElectronicKunshan	Subsidiary	Developmentandproductionofopto-electronicswitches,smartsensors,new-typeinstrumentcomponents,opto-electronicdevices,ITandcommunicationproductsandconnectors,keyboards,keys,casings,new-typesiliconrubberelectroniccomponents,precisioncavitymolds,stampingmolds,connectionlinesandstereosystems;processingofwatchbands;salesofself-madeproductsandprovisionofafter-saleservicesinrespectofself-madeproducts;importand	RMB2?200?000?000	12,001,133,317.33	3,481,250,205.24	16,150,294,698.99	508,925,982.59	471,294,537.90

		exportofgoodsandtechnologies(exceptanybusinessthatissubjecttolicensing,restrictedorprohibitedpursuanttotheapplicablelawsandadministrativeregulations).Businesssubjecttolicensing:productionofClassIImedicaldevices;productionofClassIIImedicaldevices;operationofClassIIImedicaldevices(anybusinesssubjecttoapprovalaccordingtolawmayonlybeoperatedwiththeapprovalofthecompetentauthorities,andonlythebusinessapprovedmaybeoperated);salesofClassIImedicaldevices;manufacturingofhardwareproducts;manufacturingofmetalfittingsforconstructionpurpose;manufacturingofmolds;manufacturingofsmartwearableequipment;salesofsmartwearableequipment(exceptanybusinesssubjecttoapprovalaccordingtolaw,allbusinessessetforthinthebusinesslicensemaybeoperatedaccordingtolaw);ClassIIvalue-addedtelecommunicationsbusiness(anybusinesssubjecttoapprovalaccordingtolawmayonlybeoperatedwiththeapprovalofthecompetentauthorities,andonlythebusinessapprovedmaybeoperated).Businessnotsubjecttolicensing:productionofClassImedicaldevices;salesofClassImedicaldevices;manufacturingofspecialelectronicequipment;salesofspecialelectronicequipment;developmentofsoftware;salesofsoftware;salesofelectronicproducts;manufacturingofindustrialrobots;salesofindustrialrobots;manufacturingofintegratedcircuitchipsandproducts;salesofintegratedcircuitchipsandproducts;manufacturingofsmarthomedevices;salesofsmarthomedevices;technicalservices,technologydevelopment,technicalconsulting,technicalexchanges,technologytransferandtechnologypromotion;technologypromotionandapplicationservices;dataprocessingandstoragesupportservices;informationtechnologyconsultingservices.
XiexunWan’an	Subsidiary	Productionandsalesofcomputerplugs,socketsconnectionlines,connectorsandperipherals,andprecisionmolds;importandexport;leaseofpersonalproperties,leaseofrealproperties.	RMB40,000,000	91,606,422.79	55,793,778.37	110,551,627.34	17,102,734.80	13,432,097.44
IntelligentManufactureJiangxi	Subsidiary	Businesssubjecttolicensing:importandexportofgoods;labordispatchagency.Businessnotsubjecttolicensing:productionofelectronicproducts;productionandsalesofmolds;engineeringandtechnologicalresearchandtestdevelopment;leaseofmachineryandequipment;leaseofhousing.	RMB1,000,000,000	12,402,377,058.98	3,873,240,094.92	30,782,037,561.69	1,817,153,947.59	1,601,025,929.37
XiexunJi’an	Subsidiary	Productionandsalesofcomputerplugs,sockets,connectionlines,	RMB114,718,979.44	1,033,316,723.64	605,537,980.23	1,555,954,367.44	212,026,774.51	184,486,502.75

		connectorsandperipherals,precisionmolds,equipmentandcomponents,robotandprecisionmetalmolds,automaticequipment,metalfixturecomponents,andelectro-mechanicalequipment,processingofprecisionmachinery;leaseofpersonalproperties(equipmentonly),leaseofrealproperties;importandexport;medicalappliances,medicalequipment,personalprotectiveequipment,digitalelectronicsandnon-medicalmasks.
ShenzhenLuxshareAcousticsTechnologyLtd.	Subsidiary	Research,developmentandsalesofacousticequipment,connectionlines,connectors,electronicproductcomponents,plasticandhardwareproducts,moldsandantennas;domestictrade,importandexportofgoodsandtechnologies.Businesssubjecttolicensing:productionofacousticequipment,connectionlines,connectors,electronicproductcomponents,plasticandhardwareproducts,moldsandantennas.	RMB28,000,000	372,042,543.42	111,677,229.66	503,359,153.19	59,055,768.54	57,351,041.51
ASAPJiangxi	Subsidiary	Design,productionandsalesofelectricwiresandcables,plasticpellets,plasticandhardwareproducts,precisionmolds,digitalelectronicandelectronicITproductsystemassembly,high/lowfrequencydatatransmissionlines,connectors,computerperipherals,new-typeelectroniccomponents,dataandsignaltransmissionproducts,medicalappliances,medicalsupplies,smarthomeproducts;importandexport;leaseofrealproperties,leaseandsalesoftangiblepersonalproperties.	RMB100,924,134	2,576,102,683.61	1,151,641,604.13	3,754,815,702.92	329,181,986.13	289,120,853.13
LuxshareKunshan	Subsidiary	Production,processing,sale,developmentandtechnicalservicesinrespectofconnectionlines,connectors,computerperipherals,plasticandhardwareproducts,electroniccomponents,electronicproducts,autopartsandmolds;generalroadfreighttransport;importandexportofgoodsandtechnologies.Businessnotsubjecttolicensing:manufacturingofpowertransmission,distributionandcontrolequipment.	RMB508,000,000	1,810,081,314.95	872,544,352.85	1,964,407,964.66	150,975,911.60	143,239,129.03
LuxshareIntelligentManufacture	Subsidiary	Production,research,development,salesandafter-saleserviceinrespectofelectroniccomponents,communicationequipment,computerequipmentandaccessories,moldsandsmartequipment;importandexportofgoodsandtechnologiesproducedorownedbythecompanyorothers;computersoftwaretechnologydevelopmentandtechnicalservice.	RMB730?000?000	9,000,069,089.29	791,362,285.74	14,710,254,860.43	213,745,484.21	219,849,726.77
LantoKunshan	Subsidiary	Computerperipherals,connectionlinesandconnectors;new-typeelectroniccomponents(electronicdevices),instrumentsand	RMB2?320?000?000	14,619,086,843.05	6,894,362,002.01	17,722,033,259.25	1,759,503,741.45	1,573,288,589.26

		accessoriesforcommunicationandITpurpose,plastic,rubberandhardwareproducts;research,development,productionandsalesofspecialelectronicequipment,testinginstruments,tools,molds,remotecontroldynamicmodelsandrelatedsuppliesandcomponents;productionandsalesofpowersupplyunitsandwirelesstransmissionproducts;developmentofsoftware;importandexportofgoodsandtechnology(exceptanybusinessthatissubjecttolicensing,restrictedorprohibitedpursuanttotheapplicablelawsandadministrativeregulations)(anybusinesssubjecttoapprovalaccordingtolawmayonlybeoperatedwiththeapprovalofthecompetentauthorities).Businessnotsubjecttolicensing:manufacturingofautomotivecomponentsandaccessories;researchanddevelopmentofautomotivecomponents;wholesaleofautomotivecomponentsandaccessories;salesofmechanicalpartsandcomponents;manufacturingofopto-electroniccomponents;salesofopto-electroniccomponents;researchanddevelopmentofspecialelectronicmaterials;researchanddevelopmentofhouseholdappliances.
LuxshareAutomationJiangsu	Subsidiary	Productionandsalesofrobots,precisionmetalmolds,automaticequipment,componentsofmetalfixturesandelectro-mechanicalequipment;processingofprecisionmachinery;importandexportofgoodsandtechnologiesproducedorownedbythecompany.	RMB30,000,000	658,138,687.34	323,667,889.00	766,700,321.47	86,580,029.79	82,205,745.40

Subsidiariesacquiredanddisposedofduringthereportingperiod:

√Applicable□N/A

Companyname	Methodofacquisitionordisposalofsubsidiaryduringthereportingperiod	Effectontheproduction,operationandresultsoftheCompanytakenasawhole
SuzhouLantoElectronicLimited	Newlyestablished	Nosignificanteffectontheproduction,operationandresultsoftheCompanytakenasawhole
LuxsharePrecisionIndustry(Jiangsu)Co.,Ltd.	Newlyestablished	Nosignificanteffectontheproduction,operationandresultsoftheCompanytakenasawhole
Luxshare-ICT(Vietnam)Limited	Purchaseofpartofshares	Nosignificanteffectontheproduction,operationandresultsoftheCompanytakenasawhole
LuxshareElectronic(Xingning)Co.,Ltd.	Newlyestablished	Nosignificanteffectontheproduction,operationandresultsoftheCompanytakenasawhole
LuxshareLanto(India)Limited	Newlyestablished	Nosignificanteffectontheproduction,operationandresultsoftheCompanytakenasawhole
ChangshuLuxshareIndustrialInvestmentManagementCo.,Ltd.	Newlyestablished	Nosignificanteffectontheproduction,operationandresultsoftheCompanytakenasawhole
KunshanLuxshareBusinessManagementDevelopmentCo.,Ltd.	Newlyestablished	Nosignificanteffectontheproduction,operationandresultsoftheCompanytakenasawhole
LuxsharePrecisionAssemblies(Suzhou)Co.,Ltd.	Purchaseofpartofshares	Nosignificanteffectontheproduction,operationandresultsoftheCompanytakenasawhole
ChangshuLizhenIntelligentManufactureTechnologyPartnership(L.P.)	Purchaseofpartofshares	Nosignificanteffectontheproduction,operationandresultsoftheCompanytakenasawhole
KunshanLuxshareBusinessManagementServicePartnership(L.P.)	Newlyestablished	Nosignificanteffectontheproduction,operationandresultsoftheCompanytakenasawhole
LuxshareIntelligentManufactureTechnology(Rugao)Co.,Ltd.	Newlyestablished	Nosignificanteffectontheproduction,operationandresultsoftheCompanytakenasawhole
LuxshareIntelligentEquipment(Kunshan)Co.,Ltd.	Newlyestablished	Nosignificanteffectontheproduction,operationandresultsoftheCompanytakenasawhole
DongguanLuxshareTechnologyLimitedQingxiBranch	Deregistered	Nosignificanteffectontheproduction,operationandresultsoftheCompanytakenasawhole
LuxsharePrecisionIndustry(Xingning)Co.,Ltd.HuafengBranch	Deregistered	Nosignificanteffectontheproduction,operationandresultsoftheCompanytakenasawhole
CyberAcoustics,LLC(USA)	Purchaseofshares	Nosignificanteffectontheproduction,operationandresultsoftheCompanytakenasawhole
TaiqiaoInvestmentCo.,Ltd.	Purchaseofshares	Nosignificanteffectontheproduction,operationandresultsoftheCompanytakenasawhole
LuxsharePrecisionIndustry(Xi’an)Co.,	Salesofshares	Nosignificanteffectontheproduction,

Ltd.

operationandresultsoftheCompanytakenasawhole

Particularsofmajorcontrolledsubsidiariesandassociates:

VIII.StructuredentitiescontrolledbytheCompany

□Applicable√N/AIX.ProspectsforfuturedevelopmentoftheCompany

1.SituationsoftheindustryInrecentyears,thetraditionalconsumerelectronicterminalshavegraduallyadvancedfromthegrowthstageintothestageofcompetitionovertheexistingconsumers.AccordingtoIDC,afterthetotalshipmentshavebeendecreasingforthreeconsecutiveyears,drivenbythecontinuousrecoveryofmarketdemandsandincreaseintheproductioncapacityof5Gequipment,theglobalshipmentsofsmartphonesareexpectedtoincreaseby5.5%yearonyearin2021,andthecompoundannualgrowthrateoftheglobalshipmentsofsmartphonesisexpectedtoreach3.6%between2020and2025.Inaddition,alongwiththeadvancementof5GandAItechnologies,avarietyofsmartmobile,smartwearable,smarthome,smartdisplayandotherIoTequipmentisexpectedtobedeveloped.DrivenbytheIoTecologicsystemandmarkettrends,theterminalproductshavingsmartconnectivity,healthcheckandotherfunctionswilldeeplyaffectthehabitsandcustomsofpeople,andbewidelyacceptedbyconsumersofallagegroups.One-stopsolutionprovidersmasteringbetterprocesses,havingahigherdegreeofintegrationandrequiringlessresourcesaremorelikelytogetbusinessopportunitiesinrespectofrelatedcomponentsandfinishedproducts.Fromtheperspectiveofproducttechnology,thedevelopmentcourseofthecommunicationindustryissimilartothatoftheindustryofconsumerelectronics,withthehardwaredevelopingtowardsintegrationandsmallsize.Inthetechnologyevolutionfrom4Gto5G,basestationstendtohavemoreportsandmorewavenumbers.Smallsizeandweatherresistanceputforwardincreasinglyhighrequirementsforprecisionmanufacturing.Comparedwithmanufacturersoftraditionalcommunicationproducts,manufacturershavingexperienceintheprecisionmanufacturingofconsumerelectronicproductswilloccupyagoodpositionwhentheyshifttothenewcommunicationindustry.Thecommunicationconnectivitymarketiswitnessingrapidupgradingofproducts,andentersaneraoftremendousdata.Alongwiththesharpincreaseindatavolume,thedemandsforconnectivityproductsresponsiblefordataprocessingwillgrowsharply.Theautomotiveindustrywillcontinuetoadvancetowardsfourdirectionsoftechnologicalrevolution,namelysmartdrive,theInternetofVehicles,electricvehiclesandsharemobility.Facingsuchtrendsoftechnologicaldevelopment,moreandmoretraditionalcarmanufacturers,newplayersandsolutionprovidersbravethisnewwaveoftheprogressoftechnology.Theexistenceofavarietyofplayersontheautomotivemarketwillpromotetheindustrytomakeinnovations,bringmoreopportunitiesandchallengestocomponentmanufacturers,andputforwardconcentrationofhardware.Wehavebuiltacompletedevelopmentframeworkcoveringcomponents,modules,sub-systemsandwholesystems,andmadecompletedeploymentsforcoreproducts.

2.FuturegrowthstrategyOnthebasisofourcoremanagement’sforward-lookingplansinrespectofmarket,productsandcustomers,andthroughouremployees’unremittingeffortstoworkconscientiously,fulfillalltasksandmakeinnovations,wehavemadediversified,integratedandcoordinatedstrategicdeploymentsinthefieldsofconsumerelectronics,communicationandautomotive.Inlightofthenewmarketsituations,weclearlyknowthatopportunitiescoexistwithchallenges,andwillkeepinvestinginthefuture,andgivefullplaytoourstrongcorecompetenciesandadvantagesinvariousareas,toprovidemorecorevaluefortheindustryandourcustomers.

Inthenextfewyears,theconsumerelectronicsbusinesswillcontinuetooccupyanimportantpositioninourCompany.Wewillcontinuetoimplementanddeepentheconceptofverticalintegrationfromcomponents,modulestosystem,andstrivetochangethetraditionalsupplyideasandapproaches,restructurethesupplychainandmaximizethesynergyeffect,tocontinuetoimprove

ourcapabilitytocreatevalueforourcustomers.Meanwhile,withrespecttocertaincoremodulesandprocesses,wewillfollowthestrategicprincipleof“oldproducts,newcustomersandnewmarket”,strivetoextendanddeepentheapplicationofproducts,andincreasetheirsharesondifferentmarketsandindifferentcustomers,tofurtherimproveourabilitytopreventoperatingrisks.Inlightofthegeneraleconomicdevelopmenttrendofenhancinginternalcirculation,andthegeneralbackgroundthathugedemandsforconsumerelectronicproductsonthedomesticmarketwillbestimulated,thesmartconsumerelectronicproductsthatchangelifewithtechnologywillgrowvigorously.Byleveragingourremarkableadvantagesintechnologicalintegrationofdifferentplatformsandfunctionalmodules,onthebasisofadequateassessmentofreturnoninvestmentandrisks,wewilllaunchavarietyofcustomizedsmartproductsincooperationwithdifferentplatformcustomers,toenrichourproductofferings.Inthefieldofcommunicationconnectivity,throughfocusingontechnologydevelopmentandcombiningtheeffortsofenterprises,universitiesandresearchinstitutes,weareleadingthewayincertainmarketsegmentsintheworld.Inthefuture,wewilladheretothestrategicprincipleofintegrating“application,developmentandearlyresearch”,closelyfollowthemarkettrendsandfrontiertechnologies,andstrivetomakeall-roundbreakthroughonmoremarketsegments.Withrespecttotheradiofrequencycommunicationbusiness,wewillfocusonthestrategicplanof“corecomponents+modules+system”,makecontinuousinvestmentsindesignandR&D,improvethecapabilitytoproducecorecomponentsonourown,andimproveourinternaloperationefficiencythroughtransformationandupgradingtowardsdigitalization.Facingthebusinessopportunitiesintheautomotivefieldbroughtbysmartdrive,theInternetofVehicles,electricvehiclesandsharemobility,wewillcontinuetopaycloseattentiontoandmakeappropriatedeploymentsinthisfield,leverageourtechnologiesandexperienceaccumulatedinthefieldsofconsumerelectronicsandcommunicationconnectivity,anduseourmatureexperienceinprecisionmanufacturinganddevelopmentcapabilityinrespectofcommunicationlevelhigh-speedtransmission,aswellasthesmartandconvenientwirelesspowersupplytechnologyofconsumerelectronicproductsintheautomotivebusiness.Meanwhile,wewilldevelopmedium/high-powerautomotivewirelesschargingmoduletechnology,tograsptheopportunitiesthatwillbebroughtbytheliberalizationofpowersupplyonthefutureunmannedvehiclemarket.

3.BusinessplanforthenextyearIn2020,thoughwefacedallsortsofchallengesfromtheexternalenvironmentandarisinginthecourseofourdevelopment,wealwaysstoodinaweofmarketopportunities,andrealizedhealthygrowthofallscopesofbusinesswithouremployeesactingwithonemindandworkingroundtheclock.In2021,wewillcontinuetofocusonourstrategiccustomers,adheretotheprincipleofcustomerorientation,andmakedeploymentsinproductsandbusinessesaccordingtothestrategicdemandsofkeycustomers.Onthebasisofservingtheexistingcustomersandprovidingtheexistingproducts,wewillimplementthebusinessdevelopmentpolicyestablishedbytheBoardofDirectors,explorenewmarketsandnewfieldsbyleveragingourrichexperiencesandresources,furtherdiversifyourproducts,businessesandcustomers,andimproveourprofitability.Inlightofrapidgrowth,wewillcontinuetomakein-depthexplorationsandstudiesinrespectoforganizationmanagement,officialmanagementandperformanceincentive,updateandoptimizethecurrentmanagementmode,throughcontinuousimprovementofthemechanisms,effectivelyarousetheenthusiasmofofficers,poolthewisdomandeffortsofeveryone,andmakeconcertedeffortstogivefullplaytotheeffectivenessofourorganization,tomeetthedemandsofourrapidbusinessgrowth.In2021,wewillcontinuetoadvancetheplatformbuildingforautomationtechnologies,upgradetheautomationresourcestoaplatformsharedbytheentiregroup,effecttheirswitchesamongdifferentfields,productsandmodules,throughintensivemanagement,improveoperatingefficiencyandreducerepeatedinputofresources.Meanwhile,intermsofproductioncapacityplanning,theyearof2021willbeanotherimportantyearforustomakeglobaldeployments.Wewillcautiouslyassessthestrategicvalueofallproducts,businessesandregions,pourreasonableresourcesintotheprojectsthatcanproducelong-termandstablebenefitsorproduceasynergyeffectandprovidehighadded-valuetoourexistingbusiness,tomakepre-deploymentsandhelpusachieveourshort,mediumandlong-termgoals.

4.CapitalrequiredforfuturedevelopmentstrategyandcapitalutilizationplanAsofDecember31,2020,ourequity-debtratiowas55.86%.In2021,ourbusinessisexpectedtomaintainrapidgrowth,andtheexploitationofnewmarketsandentryofproductionofnewprojectsrequireenormouscapital.Alongwiththeimprovementofourpositionintheindustryandstabilizationofourrelationshipwithcustomers,weobtaincertainadvantagesintransactions.Wewillcontinuetostrictlycontrolcapitalexpendituresineachproject,regularlyanalysisandreviewthereturnoninvestmentineachcapitalexpenditureproject,andcontinuetoimproveourmanagementoveraccountsreceivable,inventoriesandotherareas,tomaximizetheefficiencyofcapitalutilization.Wewillconsiderallavailablesourcesoffinancingatdifferentperiodsaccordingtotherequirementsofourdevelopmentstrategy,tocreatemorevalueforourshareholders.

5.Futurerisks

(1)RiskoffluctuationofmacroeconomyThenumerousuncertaintiesexistinginthedomesticandforeignmacroenvironmentatpresent,suchasthespreadoftheepidemicsituationthroughouttheworld,thetradefrictionsbetweenChinaandtheUnitedStatesandthecomplicatedandgraveglobalpoliticalsituation,mightresultinslowdownofglobaleconomy,andaffectpeople’sincome,purchasingpowerandwillingnesstospend.Iftheuncertaintiesofthemacroenvironmentcontinueforalongtime,theindustrywillbeimpactedandfacecertainchallenges.

(2)RiskofforeignexchangerateAtpresent,ourrevenuefromtheoverseasmarketconstitutesalargeproportioninourtotaloperatingrevenue,andouroverseastransactionsaremainlysettledinUSDollars.OursalesontheoverseasmarkettotaledRMB32?010?761?900,RMB57?465?383?800andRMB85?046?280?900in2018,2019and2020,representing89.29%,91.92%and91.94%oftherevenuefrommainbusinessrespectively.Becauseourcountryimplementsthemanagedfloatingratesystem,theforeignexchangeratesfluctuatealongwiththechangesindomesticandforeignpoliticalandeconomicenvironment.Iftheforeignexchangeratesfluctuategreatly,theexchangegainsorlossesmayaffectouroperatingresults.Inordertoreducetheuncertaintiescausedbyfluctuationsofforeignexchangeratesonouroperatingresults,wewillstrivetokeepabreastofthemovementofforeignexchangerates,strictlycontroltheproportionofforeigncurrencydenominatedassetsinournetassets,andthroughforeignexchangederivativetransactions,reducetheeffectofthefluctuationofforeignexchangerates.

(3)ManagementriskWehavebeengrowingrapidlyinrecentyears,andcontinuouslyexpandedourbusinessinconsumerelectronics,communication,automotiveandotherfields.Wehaveagreatnumberofoperatingentitieswhicharerelativelydecentralized.DuetotheimpactofthetradefrictionsbetweenChinaandtheUnitedStatesandthespreadoftheepidemicsituationthroughouttheworld,ourcustomerswillputforwardincreasinglyhighrequirementsfortheinternationalizedlevelofthedeploymentofourproductioncapacity,whichwillinturnputforwardhigherrequirementsforouroperationandmanagementcapabilityandpoolofoutstandingtalents.Ifourmanagementlevelcannotsatisfytherequirementsoftherapidgrowthofourscaleofoperation,wemayfacecertainmanagementrisks.

(4)RiskofrelativeconcentrationofcustomersWeattachgreatimportancetomaintaininglong-termandstablecooperationrelationshipswithourmajorcustomers.Atpresent,ourcustomersarerelativelyconcentrated,mostofwhomareengagedinconsumerelectronics.Thoughtherelevantcustomersarefirst-classcustomersintheindustry,havestrongandleadingcompetenciesonthemarket,andhavemaintainedyearsofstablecooperationrelationshipwithus,ifanymajorcustomerfallsintoseriousdifficultiesinitsoperation,wemayfacecertainoperating

risk.

X.Investigation,research,communication,interviewandotheractivities

1.Registrationformofinvestigation,research,communication,interviewandotheractivitiesoccurredduringthereportingperiod

√Applicable□N/A

Date	Place	Methodofcommunication	Typeofguest	Guest	Maintopicofdiscussionandinformationprovided	Particularsoftheinvestigationandresearchactivityavailableat
March20,2020	CompanymeetingroomatNo.17KuiqingRoad,QinghuangIndustrialZone,QingxiTown,Dongguan,Guangdong	Communicationbytelephone	Institution	Institutionalinvestors	EffectoftheoutbreakofCOVID-19ontheCompanyandtheCompany’sfuturedevelopmentplan	RefertotheRecordofInvestorRelationsActivityonMarch20,2020publishedonwww.cninfo.com.cnonMarch22,2020
August25,2020	CompanymeetingroomatNo.333BeihuanRoad,QingxiTown,Dongguan,Guangdong	Communicationbytelephone	Institution	Institutionalinvestors	IntroductionoftheCompany’soperatingresultsinthefirsthalfof2020andtheCompany’sgeneralsituation	RefertoLuxshare-ICT(stockcode:002475)InformationaboutInvestigationandResearchActivity(20200827)publishedonwww.cninfo.com.cnonAugust27,2020
September16,2020	CompanymeetingroomatNo.399BaishengRoad,JinxiTown,Kunshan,Jiangsu	On-siteinvestigationandresearch	Institution	Institutionalinvestors	IntroductionoftheCompany’sgeneralsituationandfuturedevelopmentplananddeployments	RefertoLuxshare-ICT(stockcode:002475)InvestorRelationsManagementFile(20200919)publishedonwww.cninfo.com.cnonSeptember19,2020

SectionVSignificantMattersI.Profitdistributiononordinarysharesandtransferofcapitalreservetothesharecapital

Adoption,implementationoradjustmentoftheprofitdistributionpolicy,inparticular,cashdividendpolicy,inrespectofordinarysharesduringthereportingperiod

√Applicable□N/APursuanttotheresolutionsadoptedbythe17

meetingofthe4

thBoardofDirectorsandthe2019annualshareholders’meeting,weproposedtodistributetoallshareholdersacashdividendofRMB1.2(inclusiveoftax)per10sharesonthebasisofthetotalsharecapitalof5,371,812,030shares,orRMB644,617,443.60(inclusiveoftax)intotal,andissue3additionalsharesper10sharethroughtransferofcapitalreservetothesharecapital,asaresultofwhich,ourtotalsharecapitalwouldbecome6,983,355,639shares.Incaseofanychangeinourtotalsharecapitalduetoanysharerepurchase,exerciseofshareincentives,materialassetrestructuring,cancellationofrepurchasedshareorotherwisepriortotherecorddatefortherelevantequitydistribution,wewouldadjustthedistributionpayablepershareaccordinglyontheprinciplethatthetotalamountdistributableshouldremainthesame.Duringtheperiodfromthedisclosureofsuchprofitdistributionproposaltotheimplementationthereof,ourtotalsharecapitalincreasedby515,928shares,from5,371,812,030sharesatthetimeofdisclosureoftheproposalto5,372,327,958sharesduetotheimplementationofourstockoptionincentiveplan.Ontheprinciplethatthetotalamountdistributableshouldremainthesame,ourprofitdistributionproposalfor2019wasadjustedasfollows:todistributetoallshareholdersacashdividendofRMB1.199884(inclusiveoftax)per10sharesonthebasisofthetotalsharecapitalof5,372,327,958shares,orRMB644,617,035.9556870(inclusiveoftax)intotal,andissue2.999711additionalsharesper10sharethroughtransferofcapitalreservetothesharecapital,asaresultofwhich,ourtotalsharecapitalbecame6,983,871,085shares.

Specialexplanationaboutthecashdividendpolicy
Whethercomplywiththeprovisionsofthearticlesofassociationorrequirementsofresolutionsoftheshareholders’meetingoftheCompany?	Yes
Whetherthestandardandratioofcashdividenddistributionareclearanddefinite?	Yes
Whethertherelevantdecision-makingprocessandmechanismaresound?	Yes
Whethertheindependentdirectorshaveperformedtheirdutiesandexercisedtheirfunctions?	Yes
Whethertheminorityshareholdershavesufficientopportunitiestoexpresstheiropinionsandrequestsandtheirlegitimaterightsandinterestsarefullyprotected?	Yes
Whethertheconditionsandproceduresinrespectofanyadjustmentoramendmentofthecashdividendpolicycomplywiththeapplicableregulationsandaretransparent?	Yes

Proposalsfordistributionofdividendsonordinarysharesandfortransferofcapitalreservetosharecapitalinthepastthreeyears(includingthereportingperiod):

2018:Pursuanttotheresolutionsadoptedbythe8

meetingofthe4

BoardofDirectorsandthe2018annualshareholders’meeting,wedistributedtoallshareholdersacashdividendof

RMB0.50(inclusiveoftax)per10sharesonthebasisofthetotalsharecapitalof4,114,616,722shares,orRMB205,730,836.10(inclusiveoftax)intotal,andissued3additionalsharesper10sharethroughtransferofcapitalreservetothesharecapital,asaresultofwhich,ourtotalsharecapitalbecame5,349,001,738shares.2019:Pursuanttotheresolutionsadoptedbythe17

meetingofthe4

stmeetingofthe4

BoardofDirectors,weproposetodistributetoallshareholdersacashdividendofRMB1.1(inclusiveoftax)per10sharesonthebasisofthetotalsharecapitalof7,035,426,367shares,orRMB773,896,900.37(inclusiveoftax)intotal,andtocarryforwardtheretainedprofitsfordistributioninsubsequentyears.Incaseofanychangeinourtotalsharecapitalduetoanysharerepurchase,exerciseofshareincentives,materialassetrestructuring,cancellationofrepurchasedshareorotherwisepriortotherecorddatefortherelevantequitydistribution,wewilladjustthedistributionpayablepershareaccordinglyontheprinciplethatthetotalamountdistributableshouldremainthesame.The2020ProfitDistributionProposalissubjecttoapprovalbyourannualshareholders’meeting.Cashdividendsdistributedonordinarysharesinthepastthreeyears(includingthereportingperiod):

InRMB

Yearofdistribution	Amountofcashdividends(inclusiveoftax)	Netprofitattributabletotheholdersofordinarysharesofthelistedcompanyontheconsolidatedfinancialstatementsfortheyearofdistribution	Proportionofcashdividendstothenetprofitattributabletotheholdersofordinarysharesofthelistedcompanyontheconsolidatedfinancialstatements	Amountofcashdividendsdistributedinotherways(suchassharerepurchase)	Proportionofcashdividendsdistributedinotherwaystothenetprofitattributabletotheholdersofordinarysharesofthelistedcompanyontheconsolidatedfinancialstatements	Totalamountofcashdividends	Proportionoftotalcashdividendstothenetprofitattributabletotheholdersofordinarysharesofthelistedcompanyontheconsolidatedfinancialstatements
2020	773,896,900.37	7,225,462,752.58	10.71%	0.00	0.00%	773,896,900.37	10.71%

2019	644,617,443.60	4,713,820,644.90	13.68%	0.00	0.00%	644,617,443.60	13.68%
2018	205,730,836.10	2,722,631,125.23	7.56%	0.00	0.00%	205,730,836.10	7.56%

WhethertheCompanydidnotproposetodistributecashdividendsonordinarysharesthoughtheCompanymadeaprofitinthereportingperiodandtheparentcompanyhasapositiveprofitattributabletotheholdersofitsordinaryshares?

□Applicable√N/A

II.Profitdistributiononordinarysharesandtransferofcapitalreservetothesharecapitalforthereportingperiod

√Applicable□N/A

Numberofbonussharesper10shares	0
Amountofcashdividendsper10shares(inclusiveoftax)	1.1
Sharecapitalbasedonwhichthedistributionproposalwasmade	7,035,426,367
Amountofcashdividends(inclusiveoftax)	773,896,900.37
Amountofcashdividendsdistributedinotherways(suchassharerepurchase)(RMB)	0.00
Totalamountofcashdividends(RMB)	773,896,900.37
Distributableprofit(RMB)	5,031,699,596.69
Proportionoftotalcashdividendstothedistributableprofit	100
Particularsofcashdividendsdistributedforthereportingperiod
Others
Particularsoftheprofitdistributionproposalorfortransferofcapitalreservetosharecapital
Our2020ProfitDistributionProposalisasfollows:todistributetoallshareholdersacashdividendofRMB1.1(inclusiveoftax)per10sharesonthebasisofthetotalsharecapitalof7,035,426,367shares,orRMB773,896,900.37(inclusiveoftax)intotal,andtocarryforwardtheretainedprofitsfordistributioninsubsequentyears.Incaseofanychangeinourtotalsharecapitalduetoanysharerepurchase,exerciseofshareincentives,materialassetrestructuring,cancellationofrepurchasedshareorotherwisepriortotherecorddatefortherelevantequitydistribution,wewilladjustthedistributionpayablepershareaccordinglyontheprinciplethatthetotalamountdistributableshouldremainthesame.The2020ProfitDistributionProposalissubjecttoapprovalbyourannualshareholders’meeting.

III.Fulfillmentofcovenants

1.Covenantsmadebytheactualcontrollers,shareholders,affiliatesandacquireroftheCompany,theCompanyitselfandotherrelatedpartiesthathavebeenfulfilledduringthereportingperiodorfailedtobefulfilledasattheendofthereportingperiod

√Applicable□N/A

Backgroundofcovenant	Covenantor	Typeofcovenant	Contentofcovenant	Timeofcovenant	Validityperiod/expirydateofcovenant	Statusoffulfillment
Covenantrelatingtothetransformationintoshareholdingsystem
Covenantmadeinanyacquisitionreportorreportonchangesinequity
Covenantrelatingtoanyassetrestructuring
Covenantrelatingtoanyinitialpublicofferingorsubsequentfundraising	HUANGDawei,LIBin,LINYifei,WANGLaichun,WANGLaisheng,WUTiansong,XIONGTengfang,XUHuaibin,XUEHaigao,YEYiling,ZHANGYing	Othercovenants	PursuanttotheapplicableregulationsoftheChinaSecuritiesRegulatoryCommission,inordertoensuretheimplementationoftheremedialmeasuresfordilutedearningsoftheCompany,eachofthedirectorsandexecutivesoftheCompanyherebycovenantsasfollows:1.Iwillnottransferbenefitstoanyotherentityorindividualwithoutcompensationoronunfairterms,orotherwisedamagetheinterestoftheCompany.2.Iwillexerciseself-disciplineinconsumptioninperformingmyduties.3.IwillnotusetheassetsoftheCompanytoengageinanyinvestmentorconsumptionactivitynotinconnectionwithmyduties.4.Iwill,withinmypowers,procurethelinkagebetweenthecompensationsystemadoptedbytheBoardofDirectorsortheCompensationandPerformanceAppraisalCommitteeandtheimplementationoftheCompany’sremedialmeasuresfordilutedearnings.5.Iwill,withinmypowers,procurethelinkagebetweenthevestingconditionsinrespectofanyshareincentivesgrantedbytheCompanyandtheimplementationoftheCompany’sremedialmeasuresfordilutedearnings.6.Iundertaketostrictlyfulfillthecovenantssetforthabove,toensuretheimplementationoftheremedialmeasuresfordilutedearningsoftheCompany.IfIbreachorrefusetofulfillany	July11,2019	Permanent	Thecovenantshavebeenfulfilledstrictly

		covenantsetforthabove,Iwillmakeexplanationsandapologiesandperformotherobligationsrequiredbytheapplicableregulations,andagreetoacceptanypunishmentorregulatoryactionthatmaybeimposedonortakenagainstmebytheChinaSecuritiesRegulatoryCommission,theShenzhenStockExchangeoranyothercompetentsecuritiesregulatoryauthoritypursuanttotheapplicablerulesandregulationsestablishedorpromulgatedbysuchregulatoryauthorities,andindemnifytheCompanyoritsshareholdersforthelosses(ifany)arisingtherefromaccordingtolaw.
LuxsharePrecisionLimited(HK),WANGLaichun,WANGLaisheng	Othercovenants	InordertoseriouslyprotectthelegitimaterightsandinterestsoftheCompanyandallofitsshareholders,eachofthecontrollingshareholderandactualcontrollersoftheCompanyherebycovenantsasfollows:1.We/IwillnotinterferewithmanagementandoperationoftheCompanybeyondour/mypowers,orinfringeontheinterestoftheCompany.2.We/IwillprocuretheimplementationoftheremedialmeasuresfordilutedearningsoftheCompany,andfulfillour/mycovenantsinconnectiontherewith.IfWe/Ibreachorrefusetofulfillanycovenantsetforthabove,We/Iagreetoacceptanypunishmentorregulatoryactionthatmaybeimposedonortakenagainstus/mebytheChinaSecuritiesRegulatoryCommission,theShenzhenStockExchangeoranyothercompetentsecuritiesregulatoryauthoritypursuanttotheapplicablerulesandregulationsestablishedorpromulgatedbysuchregulatoryauthorities,andindemnifytheCompanyortheinvestorsforthelosses(ifany)arisingtherefromaccordingtolaw.3.Fromthedateofthiscovenanttillthedateofcompletionofthisoffering,iftheChinaSecuritiesRegulatoryCommissionoranyothercompetentsecuritiesregulatoryauthorityadoptsanynewregulationregardingtheremedialmeasuresfordilutedearningsandcovenantsinconnectiontherewith,andthecovenantssetforthabovedonotsatisfytherequirementsofsuchnewregulation,We/Iwillmakesupplementarycovenantspursuanttothenewregulation.	July11,2019	Permanent	Thecovenantshavebeenfulfilledstrictly

LuxsharePrecisionLimited(HK),WANGLaichun,WANGLaisheng	Othercovenants	LuxsharePrecisionLimited(HK),asthecontrollingshareholderoftheCompany,andWANGLaichunandWANGLaisheng,astheactualcontrollersoftheCompany,herebycovenantasfollows:1.We,LuxsharePrecisionLimited(HK),asthecontrollingshareholderoftheCompany,undertakenottointerferewithmanagementandoperationoftheCompanybeyondourpowers,orinfringeontheinterestoftheCompany.2.I,WANGLaichun,astheactualcontroller,ChairmanandGeneralManageroftheCompany,undertaketoperformmydutiesinaccordancewiththeapplicablelawsandregulationsandthearticlesofassociationoftheCompany,andnottointerferewithmanagementandoperationoftheCompanybeyondmypowers,orinfringeontheinterestoftheCompany.3.I,WANGLaisheng,astheactualcontrollerandViceChairmanoftheCompany,undertaketoperformmydutiesinaccordancewiththeapplicablelawsandregulationsandthearticlesofassociationoftheCompany,andnottointerferewithmanagementandoperationoftheCompanybeyondmypowers,orinfringeontheinterestoftheCompany.	March11,2016	Permanent	Thecovenantshavebeenfulfilledstrictly
BAIRujing,CHENChaofei,DONGJianhai,LIBin,LIJing,LIXiongwei,LINYifei,WANGJi,WANGLaichun,WANGLaisheng,XUHuaibin,YEYiling,ZHANGLihua	Othercovenants	EachofthedirectorsandexecutivesoftheCompanyherebycovenantsasfollows:1.Iwillnottransferbenefitstoanyotherentityorindividualwithoutcompensationoronunfairterms,orotherwisedamagetheinterestoftheCompany.2.Iwillexerciseself-disciplineinconsumptioninperformingmyduties.3.IwillnotusetheassetsoftheCompanytoengageinanyinvestmentorconsumptionactivitynotinconnectionwithmyduties.4.IwillprocurethelinkagebetweenthecompensationsystemadoptedbytheBoardofDirectorsortheCompensationandPerformanceAppraisalCommitteeandtheimplementationoftheCompany’sremedialmeasuresfordilutedearnings.5.IftheCompanyestablishesanyshareincentiveplaninthefuture,IwillprocurethelinkagebetweenthevestingconditionsinrespectofanyshareincentivesgrantedbytheCompanyandtheimplementationoftheCompany’sremedial	March11,2016	Permanent	Thecovenantshavebeenfulfilledstrictly

		measuresfordilutedearnings.
LuxsharePrecisionLimited(HK)	Covenantsrelatingtohorizontalcompetition,related-partytransactionsandoccupationoffunds	1.Weandallotherentitiescontrolledbyusatpresentorinthefuturewillnot,directlyorindirectly,engageinanybusinessoractivitythatcompetesormightcompeteorpotentiallycompetewiththemainbusinessoftheCompany.2.IfanyamendmentofanyapplicablelaworchangeinanyapplicablepolicyofthecountryresultsinanyactualorpotentialhorizontalcompetitionbetweenusoranyotherentitycontrolledbyusandtheCompanyinanybusiness,theCompanyshallhavethepreemptiverightonthesametermsinrespectofanyentrustedmanagement(ormanagementundercontractorlease)oracquisitioninconnectionwithsuchbusiness.3.SolongasweremainthecontrollingshareholderoftheCompany,thecovenantssetforthaboveshallbeunconditionalandirrevocable.Ifwebreachanycovenantsetforthabove,wewill,jointlyandseverally,fully,timelyandadequatelyindemnifythelossesoftheCompanyarisingtherefrom.	October15,2014	Permanent	Thecovenantshavebeenfulfilledstrictly
LuxsharePrecisionLimited(HK)	Covenantsrelatingtohorizontalcompetition,related-partytransactionsandoccupationoffunds	1.Weandotherentitiescontrolledbyuswillreducerelated-partytransactionswiththeCompanytothemaximumextentpracticable.2.Withrespecttoanyrelated-partytransactionbetweenusoranyotherentitycontrolledbyusandtheCompanythatisunavoidableorexistsreasonably,wewillcarryoutsuchtransactiononanarm’slengthbasisandcustomarycommercialterms,ensurethefairnessofthetransactionprice,performtherelevantdecision-makingprocessaccordingtolaw,andguaranteethatthelegitimaterightsandinterestsoftheCompanyanditsshareholderswillnotbedamagedasaresultofsuchtransaction.3.WeoranyotherentitycontrolledbyuswillnotrequesttheCompanytoofferanytermsmorefavorablethanthetermsthatmaybeofferedbyanythirdpartyinanarm’slengthtransaction,oracceptanysuchtermsofferedbytheCompany.4.SolongasweremainthecontrollingshareholderoftheCompany,thecovenantssetforthaboveshallbeunconditionalandirrevocable.Ifwebreachanycovenantsetforthabove,we	October15,2014	Permanent	Thecovenantshavebeenfulfilledstrictly

		will,jointlyandseverally,fully,timelyandadequatelyindemnifythelossesoftheCompanyarisingtherefrom.
WANGLaichun,WANGLaisheng	Covenantsrelatingtohorizontalcompetition,related-partytransactionsandoccupationoffunds	IandotherentitiescontrolledbymearenotengagedinanybusinessthatisthesameasorsimilartothebusinessoftheIssueroranyentitycontrolledbytheIssuer.SolongasIretaincontrolovertheIssuerdirectlyorindirectly,Iwillstrictlycomplywiththeapplicablelaws,regulationsandcodesofthecountry,andwillnot,directlyorindirectly,engageinanybusinessthatisthesameas,similartoorsubstantiallyincompetitionwiththebusinessoftheIssueroranyentitycontrolledbytheIssuer,orhavesubstantialorrelativecontroloveranyothercompany,organizationoreconomicentityengaginginanybusinessthatisthesameas,similartoorsubstantiallyincompetitionwiththebusinessoftheIssueroranyentitycontrolledbytheIssuerinoroutsideChina.Iwillusemycontrolovertheotherentitiescontrolledbymetocausesuchentitiestofulfillthecovenantssetforthaboveinthesamemanner.IfIbreachanycovenantsetforthabove,Iagreetoassumetherelevantlegalliabilities,includingwithoutlimitation,toindemnifytheIssueranditsminorityshareholdersforalllossesarisingtherefrom.	July30,2010	Permanent	Thecovenantshavebeenfulfilledstrictly
LuxsharePrecisionLimited(HK),ShenzhenZixinInvestmentCo.,Ltd.	Covenantsrelatingtohorizontalcompetition,related-partytransactionsandoccupationoffunds	WearenotengagedinanybusinessthatisthesameasorsimilartothebusinessoftheIssueroranyentitycontrolledbytheIssuer.SolongasweretaincontrolovertheIssuerdirectlyorindirectly,wewillstrictlycomplywiththeapplicablelaws,regulationsandcodesofthecountry,andwillnot,directlyorindirectly,engageinanybusinessthatisthesameas,similartoorsubstantiallyincompetitionwiththebusinessoftheIssueroranyentitycontrolledbytheIssuer,orhavesubstantialorrelativecontroloveranyothercompany,organizationoreconomicentityengaginginanybusinessthatisthesameas,similartoorsubstantiallyincompetitionwiththebusinessoftheIssueroranyentitycontrolledbytheIssuerinoroutsideChina.Wewilluseourcontrolovertheotherentitiescontrolledbyustocausesuchentitiestofulfillthecovenantssetforthaboveinthesamemanner.Ifwebreachanycovenantsetforthabove,weagreetoassumetherelevantlegalliabilities,includingwithoutlimitation,toindemnifytheIssueranditsminorityshareholdersforalllossesarisingtherefrom.	July30,2010	Permanent	Thecovenantshavebeenfulfilledstrictly
LuxsharePrecision	Covenantsrelating	We/Iwillnottakeadvantageofour/mypositionasthecontrolling	July30,	Permanent	The

	Limited(HK),ShenzhenZixinInvestmentCo.,Ltd.,WANGLaichun,WANGLaisheng	tohorizontalcompetition,related-partytransactionsandoccupationoffunds	shareholder,actualcontrollerorshareholder(asapplicable)andour/myaffiliationwiththeIssuertoengageinanyacttothedetrimentoftheinterestoftheIssueroritsothershareholders.Withrespecttoanyrelated-partytransactionbetweenus/meoranyotherentitycontrolledbyus/meandtheIssuer,we/Iwillcarryoutsuchtransactiononanarm’slengthbasisandcustomarycommercialterms,andwillnotrequesttheIssuertoofferanytermsmorefavorablethanthetermsthatmaybeofferedbyanythirdpartyinanarm’slengthtransaction,oracceptanysuchtermsofferedbytheIssuer.We/Iwillstrictlyperformallrelated-partytransactionagreements(ifany)enteredintowiththeIssueringoodfaith,andwillnotseekanyinterestorbenefitincontraventionofthecovenantssetforthabove.Ifwe/Ibreachanycovenantsetforthabove,we/IagreetoindemnifytheIssueranditsminorityshareholdersforalllossesarisingtherefrom.	2010		covenantshavebeenfulfilledstrictly
Covenantsrelatingtoshareincentives
CovenantsmadetotheminorityshareholdersoftheCompany	LuxsharePrecisionLimited(HK)	Othercovenants	LuxsharePrecisionLimited(HK),asthecontrollingshareholderoftheCompany,herebyundertakesnottosellanyshareoftheCompanythroughthestocktradingsystemwithin12monthsafterthecompletionofthisdisposal.	February3,2021	February2,2022	Thecovenantshavebeenfulfilledstrictly
	LuxsharePrecisionLimited(HK)	Othercovenants	LuxsharePrecisionLimited(HK),asthecontrollingshareholderoftheCompany,herebyundertakesnottosellanyshareoftheCompanythroughthestocktradingsystemwithin6monthsafterthecompletionofthisdisposal.	July22,2020	January21?2021	Thecovenantshavebeenfulfilledstrictly
	LuxsharePrecisionLimited(HK)	Covenantsrelatingtohorizontalcompetition,related-partytransactionsandoccupationoffunds	Afterthecompletionofthetransactionscontemplatedbytheannouncementonexternalinvestmentandrelated-partytransactionsdisclosedbytheCompanyonNovember13,2020,weandouraffiliateswillnotengageinanybusinessthatisthesameasorsubstantiallyincompetitionwiththebusinessoftheCompanyoranyentitycontrolledbytheCompanyinanymanner.	November13,2020	Permanent	Thecovenantshavebeenfulfilledstrictly
Whetherthecovenantshavebeenfulfilledontime?	Yes

Ifanycovenantfailstobefulfilledontime,pleasestatethespecificreasonandtherelevantactionplan

N/A

2.IftheCompanyhasmadeanyprofitforecastonitsassetsorprojectandthereportingperiodfallswithintheperiodofsuchprofitforecast,explanationaboutwhetherthegoalhasbeenachievedandtherelevantreasons

□Applicable√N/A

IV.OccupationbythecontrollingshareholderanditsaffiliatesofthefundsofCompanyfornon-operatingpurpose

□Applicable√N/AOurcontrollingshareholderanditsaffiliateshavenotoccupiedourfundsfornon-operatingpurposeduringthereportingperiod.V.ExplanationbytheBoardofDirectors,theBoardofSupervisorsandtheindependentdirectors(ifany)aboutthemodifiedauditor’sreportissuedbytheaccountingfirmforthereportingperiod

□Applicable√N/A

VI.Changesinaccountingpolicies,accountingestimatesandaccountingmethodscomparedwiththefinancialreportfortheprecedingyear

√Applicable□N/APursuanttotheNoticeontheAmendmentandPublicationoftheAccountingStandardsforBusinessEnterprisesNo.14:Revenue(CaiKuai[2017]No.22)issuedbytheMinistryofFinanceonJuly5,2017,thenewrevenueaccountingstandardiseffectivefromJanuary1,2018foranyentitythatislistedbothondomesticandforeignstockexchanges,andanyentitythatislistedonaforeignstockexchangeandpreparesitsfinancialstatementsinaccordancewiththeInternationalFinancialReportingStandardsortheAccountingStandardsforBusinessEnterprises,andfromJanuary1,2020forotherentitieslistedondomesticstockexchanges,andfromJanuary1,2021forunlistedentitiesadoptingtheAccountingStandardsforBusinessEnterprises.The18

meetingofthe4

BoardofDirectorsreviewedandapprovedtheProposalontheAmendmentoftheAccountingPoliciesonApril27,2020.Pursuanttotheprovisionsregardingthetransitionfromtheoldstandardtothenewstandard,weadoptedthenewrevenueaccountingstandardfromJanuary1,2020,withoutadjustingtheinformationofcomparativeperiodsorretrospectivelyadjustingtheinformationofprioryears.Therefore,thischangeinaccountingpoliciesdoesnotaffectourfinancialindicatorsin2019.Thischangeinaccountingpolicieswasmadepursuanttotherequirementsoftheapplicablelawsandadministrativeregulationsorunifiedaccountingsystemofthecountry,andisexpectedtohavenosignificanteffectonourfinancialposition,operatingresultsorcashflows.

VII.Explanationaboutanymaterialaccountingerroroccurredduringthereportingperiodthatrequiresanyretrospectiverestatement

□Applicable√N/ATherehasbeennomaterialaccountingerroroccurredduringthereportingperiodthatrequiresanyretrospectiverestatement.

VIII.Explanationaboutchangesinthescopeofconsolidationcomparedwiththefinancialreportfortheprecedingyear

√Applicable□N/A

Elevennewlyestablishedoracquiredsubsidiariesorsub-subsidiariesduringthereportingperiod,namelySuzhouLantoElectronicLimited,LuxsharePrecisionIndustry(Jiangsu)Co.,Ltd.,LuxshareElectronic(Xingning)Co.,Ltd.,LuxshareLanto(India)Limited,ChangshuLuxshareIndustrialInvestmentManagementCo.,Ltd.,KunshanLuxshareBusinessManagementDevelopmentCo.,Ltd.,KunshanLuxshareBusinessManagementServicePartnership(L.P.),LuxshareIntelligentEquipment(Kunshan)Co.,Ltd.LuxshareIntelligentManufactureTechnology(Rugao)Co.,Ltd.,CyberAcoustics,LLC(USA)(acquiredbysharepurchase)andTaiqiaoInvestmentCo.,Ltd.,areincludedinthescopeofconsolidation.SincewehavetransferredthesharesheldinLuxsharePrecisionIndustry(Xi’an)Ltd.duringthereportingperiod,itisremovedfromthescopeofconsolidation.

IV.Engagementandterminationofengagementofaccountingfirm

Accountingfirmcurrentlyengaged:

Nameofdomesticaccountingfirm	BDOChinaShuLunPanCertifiedPublicAccountantsLLP
Remunerationofdomesticaccountingfirm(inRMB0’000)	220
Consecutiveyearsinwhichthedomesticaccountingfirmhasprovidedauditingservice	13
Certifiedpublicaccountantofthedomesticaccountingfirm	LIJingandWEIGang
Consecutiveyearsinwhichthecertifiedpublicaccountantofthedomesticaccountingfirmhasprovidedauditingservice	4
Nameofforeignaccountingfirm(ifany)	N/A
Remunerationofforeignaccountingfirm(inRMB0’000)(ifany)	0
Consecutiveyearsinwhichtheforeignaccountingfirmhasprovidedauditingservice(ifany)	N/A
Certifiedpublicaccountantoftheforeignaccountingfirm(ifany)	N/A
Consecutiveyearsinwhichthecertifiedpublicaccountantoftheforeignaccountingfirmhasprovidedauditingservice(ifany)	N/A

Whetheranewaccountingfirmwasengagedduringthereportingperiod?

□Yes√NoEngagementofaccountingfirmforauditinginternalcontrols,financialadvisororsponsor:

√Applicable□N/ADuringthereportingperiod,weengagedCITICSecuritiesCo.,Ltd.asthesponsorforthepublicofferingofourconvertiblecorporatebonds,andpaidthesponsorRMB13?584?900ofsponsorfeeandunderwriterfeeintotal.

X.Riskofdelistingafterdisclosureoftheannualreport

□Applicable√N/A

XI.Mattersrelatingtobankruptcyandreorganization

□Applicable√N/AWehavenotbeeninvolvedinanybankruptcyorreorganizationproceedingsduringthereportingperiod.

XII.Materiallitigationsandarbitrations

√Applicable□N/A

Background

Amountclaimed(RMB0’000)

Whetheraprovisionisrecognized

Status

Resultandeffect

Enforcementofjudgment/award

Dateofdisclosure

Informationdisclosureavailableat

Otherlitigationoccurredduringthereportingperiod	59.04	No	Closed	Thecasehasbeensettled/closedbymediationorwon,anddoesnothaveamaterialeffectonus.	Closedbymediationorenforced		N/A
Otherlitigationoccurredduringthereportingperiod	45,834.2	No	Pending	Thecaseispending,andwillnothaveamaterialeffectonus.	Pending		N/A

XIII.Punishmentsandrectifications

□Applicable√N/AWehavenotbeensubjecttoanypunishmentorrequiredtomakeanyrectificationduringthereportingperiod.XI.CreditstandingoftheCompanyanditscontrollingshareholderandactualcontrollers

√Applicable□N/ATherewasn’tanyoutstandingcourtjudgmentoroverduedebtofalargeamountinvolvingusorourcontrollingshareholderoractualcontrollersduringthereportingperiod.

XV.Implementationofshareincentiveplans,employeestockownershipplansandotheremployeeincentivesgrantedbytheCompany

√Applicable□N/A

1.2018stockoptionincentiveplanOnNovember27,2019,the13

thmeetingofthe4

thBoardofDirectorsandthe13

thmeetingofthe4

thBoardofSupervisorsreviewedandapprovedtheProposalontheSatisfactionoftheVestingConditionsfortheFirstVestingPeriodofthe2018StockOptionIncentivePlan,pursuanttowhich,theawardeeswhohavesatisfiedthevestingconditionsmayexercisethestockoptionsvestedinthefirstvestingperiodintheirsolediscretionfromDecember18,2019toSeptember24,2020.RefertotheCautionaryAnnouncementonAdoptionoftheDiscretionaryExerciseMethodfortheFirstVestingPeriodofthe2018StockOptionIncentivePlan(AnnouncementNo.2019-082)fordetails.

OnJune22,2020,duetotheequitydistributionfor2019,weadjustedtheexercisepriceandnumberofstockoptionsunderthe2018stockoptionincentiveplanaccordingly.RefertotheAnnouncementonAdjustmentoftheExercisePriceandNumberofStockOptionsunderthe2018and2019StockOptionIncentivePlanandCancellationofCertainStockOptions(AnnouncementNo.2020-047)fordetails.

OnDecember2,2020,the27

thmeetingofthe4

BoardofDirectorsandthe27

meetingofthe4

BoardofSupervisorsreviewedandapprovedtheProposalontheSatisfactionoftheVestingConditionsfortheSecondVestingPeriodofthe2018StockOptionIncentivePlan,pursuanttowhich,theawardeeswhohavesatisfiedthevestingconditionsmayexercisethestockoptionsvestedinthesecondvestingperiodintheirsolediscretionfromDecember21,2020toSeptember24,2021.RefertotheCautionaryAnnouncementonAdoptionoftheDiscretionaryExerciseMethodfortheSecondVestingPeriodofthe2018StockOptionIncentivePlan(AnnouncementNo.2020-108)fordetails.

2.2019stockoptionincentiveplan

OnJanuary21,2020,thegrantof16,274,700stockoptionsreservedunderthe2019stockoptionincentiveplanto263awardeesatanexercisepriceofRMB17.93persharewasdulyregistered.RefertotheAnnouncementontheRegistrationofGrantofStockOptionsReservedunderthe2019StockOptionIncentivePlan(AnnouncementNo.2020-008)fordetails.OnJune22,2020,duetotheequitydistributionfor2019,weadjustedtheexercisepriceandnumberofstockoptionsunderthe2019stockoptionincentiveplanaccordingly.RefertotheAnnouncementonAdjustmentoftheExercisePriceandNumberofStockOptionsunderthe2018and2019StockOptionIncentivePlanandCancellationofCertainStockOptions(AnnouncementNo.2020-047)fordetails.

OnJune22,2020,the19

thmeetingofthe4

thBoardofDirectorsandthe19

thmeetingofthe4

thBoardofSupervisorsreviewedandapprovedtheProposalontheSatisfactionoftheVestingConditionsfortheFirstVestingPeriodofthe2019StockOptionIncentivePlan,pursuanttowhich,theawardeeswhohavesatisfiedthevestingconditionsmayexercisethestockoptionsvestedinthefirstvestingperiodintheirsolediscretionfromJuly6,2020toApril21,2021.RefertotheCautionaryAnnouncementonAdoptionoftheDiscretionaryExerciseMethodfortheFirstVestingPeriodofthe2019StockOptionIncentivePlan(AnnouncementNo.2020-049)fordetails.

3.Exerciseofstockoptionsduringthereportingperiod

Duringthereportingperiod,weissued41,175,071additionalsharesasaresultofexerciseofstockoptionsbytheawardeesunderourstockoptionincentiveplans.

XVI.Materialrelated-partytransactions

1.Related-partytransactionsrelatingtoday-to-dayoperation

√Applicable□N/A

Counterparty

Relationship

Type

Subjectmatter

Pricingprinciple

Transactionprice

Amount(inRMB0’000)

%ofthetotalamountofthesametypeoftransactions

Approvedlimitoftransactionamount(inRMB0’000)

Whetherornotexceedtheapprovedlimit

Methodofsettlement

Marketpriceavailableforthesametypeoftransactions

Dateofdisclosure

Informationdisclosureavailableat

LishengAutomotiveTechnology(Suzhou)Co.,Ltd.

Affiliateofthecontrollingshareholder

Purchaseofgoodsfromrelatedparty

Purchaseofgoods

Fairmarketprice

67.69

0.00%

600

Banktransfer

Fairmarketprice

April21?2020

AnnouncementonEstimatedDailyRelated-partyTransactionsin2020publishedonwww.cninfo.com.cn(AnnouncementNo.2020-027)

LishengAutomotiveTechnology(Suzhou)Co.,Ltd.

Affiliateofthecontrollingshareholder

Salesofgoodsandproductstorelatedparty

Salesofgoods

Fairmarketprice

10?691.87

0.04%

15?000

Banktransfer

Fairmarketprice

April21?2020

AnnouncementonEstimatedDailyRelated-partyTransactionsin2020publishedonwww.cninfo.com.cn(AnnouncementNo.2020-027)

Total

10,759.56

15,600

Particularsofhuge-amountsalesreturns

None

Ifthetotalamountofdailyrelated-partytransactionsthatareexpectedtooccurduringthereportingperiodisestimatedbytype,theactualtransactionsoccurredduringthereportingperiod(ifany)

None

Reasonofanygreatdifferencebetweentransactionpriceandreferencemarketprice(ifapplicable)

None

2.Related-partytransactionsinvolvingacquisitionorsalesofassetsorequities

□Applicable√N/AWehavenotconductedanyrelated-partytransactioninvolvingacquisitionorsalesofassetsorequitiesduringthereportingperiod.

3.Related-partytransactionsinvolvingjointexternalinvestment

√Applicable□N/A

Co-investor	Relationship	Investee	Mainbusinessofinvestee	Registeredcapitalofinvestee(inRMB0’000)	Totalassetsofinvestee(inRMB0’000)	Netassetsofinvestee(inRMB0’000)	Netprofitofinvestee(inRMB0’000)
ChangshuLuxshareBusinessManagementServicePartnership(L.P.)	Affiliateofthecontrollingshareholder	ChangshuLizhenIntelligentManufactureTechnologyPartnership(L.P.)	Businessmanagementconsulting;informationtechnologyconsultingservice;technicalservices,technologydevelopment,technicalconsulting,technicalexchanges,technologytransferandtechnologypromotion.	600,000	599,953.53	599,954.22	4.22
Progressofmaterialconstructioninprogressoftheinvestee(ifany)		None

4.Accountsreceivablefromandpayabletorelatedparties

□Applicable√N/AWedidnothaveanyaccountsreceivablefromorpayabletoanyrelatedpartyduringthereportingperiod.

5.Othermaterialrelated-partytransactions

□Applicable√N/AWehavenotconductedanyothermaterialrelated-partytransactionduringthereportingperiod.XVII.Materialcontractsandperformance

1.Trusteeship,contractingandleases

(1)Trusteeship

□Applicable√N/A

Nosuchcaseduringthereportingperiod.

(2)Contracting

□Applicable√N/ANosuchcaseduringthereportingperiod.

(3)Leases

□Applicable√N/ANosuchcaseduringthereportingperiod.

2.Materialguarantees

√Applicable□N/A

(1)Guarantees

InRMB0’000

ExternalguaranteesprovidedbytheCompanyanditssubsidiaries(excludingthoseprovidedforthesubsidiaries)
Obligor	Disclosuredateofannouncementonthemaximumamountguaranteed	Maximumamountguaranteed	Effectivedateofguarantee	Actualamountguaranteed	Typeofguarantee	Termofguarantee	Whetherornotexpired	Whetherornotprovidedforarelatedparty
GuaranteesprovidedbytheCompanyforitssubsidiaries
Obligor	Disclosuredateofannouncementonthemaximumamountguaranteed	Maximumamountguaranteed	Effectivedateofguarantee	Actualamountguaranteed	Typeofguarantee	Termofguarantee	Whetherornotexpired	Whetherornotprovidedforarelatedparty
ICT-Lanto	April20,2020	18?922.21	June23,2020		Jointandseveralguarantee	Oneyear	No	Yes
ICT-Lanto	April20,2020	19?574.7	August1,2020		Jointandseveralguarantee	Oneyear	No	Yes
LuxsharePrecision	April20,2020	7?717.39	June23,2020		Jointandseveralguarantee	Oneyear	No	Yes
LuxsharePrecision	April20,2020	32?624.5	June1,2020		Jointandseveralguarantee	Oneyear	No	Yes
LuxsharePrecision	April20,2020	32?624.5			Jointandseveralguarantee	Oneyear	No	Yes
LuxsharePrecision	April20,2020	52?199.2			Jointandseveralguarantee	Oneyear	No	Yes
LuxsharePrecision	April20,2020	521?992	July20,2020		Jointandseveralguarantee	Fiveyears	No	Yes
LuxsharePrecision	April20,2020	7?829.88	June12,2020	7?813.57	Jointandseveralguarantee	Oneyear	No	Yes
LuxsharePrecision	April20,2020	17?617.23	July15,2020	17?551.98	Jointandseveralguarantee	Oneyear	No	Yes
LuxsharePrecision	April20,2020	33?929.48	October21,2020	32?624.5	Jointandseveral	Oneyear	No	Yes

					guarantee
LuxsharePrecision	April20,2020	18?152.27	May21,2020	17?878.23	Jointandseveralguarantee	Oneyear	No	Yes
LuxsharePrecision	April20,2020	52?969.14			Jointandseveralguarantee	Oneyear	No	Yes
Totalamountofguaranteeapprovedtobeprovidedforsubsidiariesduringthereportingperiod(B1)		815?612.5		Totalamountofguaranteeactuallyprovidedforsubsidiariesduringthereportingperiod(B2)		75?868.27
Totalamountofguaranteeapprovedtobeprovidedforsubsidiariesasattheendofthereportingperiod(B3)		815?612.5		Totalamountofguaranteeactuallyprovidedforsubsidiariesasattheendofthereportingperiod(B4)		75?868.27
Guaranteesprovidedbysubsidiariesforeachother
Obligor	Disclosuredateofannouncementonthemaximumamountguaranteed	Maximumamountguaranteed	Effectivedateofguarantee	Actualamountguaranteed	Typeofguarantee	Termofguarantee	Whetherornotexpired	Whetherornotprovidedforarelatedparty
TotalamountofguaranteeprovidedbytheCompany
Totalamountofguaranteeapprovedduringthereportingperiod(A1+B1+C1)		815?612.5		Totalamountofguaranteeactuallyprovidedduringthereportingperiod(A2+B2+C2)		75?868.27
Totalamountofguaranteeapprovedasattheendofthereportingperiod(A3+B3+C3)		815?612.5		Totalamountofguaranteeactuallyprovidedasattheendofthereportingperiod(A4+B4+C4)		75?868.27
Ratiooftotalamountofguaranteeactuallyprovided(A4+B4+C4)tothenetassetsoftheCompany				2.70%
Where:
Outstandingguaranteesprovidedforshareholders,actualcontrollerandtheiraffiliates(D)				0
Outstandingguaranteesdirectlyorindirectlyprovidedforobligorswhosedebt-to-assetsratioexceeds70%(E)				75?868.27
Portionoftotalamountofguaranteeinexcessof50%ofthenetassets(F)				0
Total(D+E+F)				75?868.27
Explanationaboutthejointandseveralliabilitythathasbeenormightbeincurredinrespectofoutstandingguaranteesduringthereportingperiod(ifany)				None
Explanationaboutexternalguaranteesprovidedincontraventionoftheestablishedprocedures(ifany)				None

Particularsoftheguaranteesprovidedusingcomplexmethod:

(2)Externalguaranteesincontraventionoftheregulations

□Applicable√N/AWehavenotprovidedanyexternalguaranteeincontraventionoftheapplicableregulationsduringthereportingperiod.

3.Entrustedmanagementofcashassets

(1)Entrustedwealthmanagement

√Applicable□N/AEntrustedwealthmanagementduringthereportingperiod:

InRMB0’000

Type	Sourceoffunds	Totalamount	Outstandingamount	Overdueamount
Bankwealthmanagementamount	Self-ownedfunds	285,467.61	285,467.61	0
Total		285,467.61	285,467.61	0

High-riskentrustedwealthmanagementproductsthataresignificantindividually,illiquidornotprincipalprotected:

□Applicable√N/AEntrustedwealthmanagementproductstheprincipalofwhichmaybeunrecoverableorwhichmayotherwisebeimpaired:

□Applicable√N/A

(2)Entrustedloans

√Applicable□N/AEntrustedloansduringthereportingperiod:

InRMB0’000

Totalamount	Sourceoffunds	Outstandingamount	Overdueamount
320,949	Self-ownedfunds	320,949	0

High-riskentrustedloansthataresignificantindividually,illiquidornotprincipalprotected:

□Applicable√N/AEntrustedloanstheprincipalofwhichmaybeunrecoverableorwhichmayotherwisebeimpaired:

□Applicable√N/A

4.Materialcontractsrelatingtoday-to-dayoperation

□Applicable√N/A

5.Othermaterialcontracts

□Applicable√N/AWehavenotenteredintoanyothermaterialcontractduringthereportingperiod.XVIII.Socialresponsibility

1.PerformanceofsocialresponsibilityPleaserefertoour2020ReportonSustainableDevelopmentthathasbeenfullypublishedonourdesignatedwebsiteforinformationdisclosure,http://www.cninfo.com.cn,onthedateofthisAnnualReport.

2.Performanceofsocialresponsibilityfortargetedpovertyalleviation

Wehavenotcarriedoutanytargetedpovertyalleviationprogramduringthereportingperiodanddonothaveanytargetedpovertyalleviationprogramforthetimebeing.

3.Environmentalprotection

WhethertheCompanyoranyofitssubsidiariesisindentifiedasamajorpolluterbytheenvironmentalprotectionauthority?

□Yes√No

NoNeitherwenoranyofoursubsidiarieshasbeenidentifiedasamajorpolluterbytheenvironmentalprotectionauthorityduringthereportingperiod.

XIX.Othersignificantmatters

√Applicable□N/AInFebruary2020,wereceivedtheReplyonApprovingthePublicIssuanceofConvertibleCorporateBondsbyLuxsharePrecisionIndustryCo.,Ltd.(ZhengJianXuKe[2020]No.247)fromtheChinaSecuritiesRegulatoryCommission,whichapproveduspubliclyissuingconvertiblecorporatebondsinanaggregateamountofRMB3billionwithatermofsixyears.OnNovember3,2020,wepubliclyissued30?000?000convertiblecorporatebondsofparvalueofRMB100each,andraisedRMB3?000?000?000.00intotal.Thecouponrateofsuchconvertiblecorporatebondsis0.10%forthefirstyear,0.20%forthesecondyear,0.30%forthethirdyear,1.50%forthefourthyear,1.80%forthefifthyearand2.00%forthesixthyear.UponapprovalbytheShenzhenStockExchange,suchconvertiblecorporatebondswerelistedandtradedontheShenzhenStockExchangeonDecember2,2020undertheshortname“LuxshareConvertibleBonds”andbondcode“128136”.

XX.SignificantmattersconcerningthesubsidiariesoftheCompany

□Applicable√N/A

SectionVIChangesinSharesandShareholders

I.Changesinshares

1.Changesinshares

Unit:Share

	Beforethechange		＋,－					Afterthechange
	Number	%	Newshares	Bonusshares	Capitalizationofcapitalreserves	Others	Subtotal	Number	%
I.Non-tradableshares	6,560,918	0.12%			2,028,919	2,418,084	4,447,003	11,007,921	0.16%
1.SharesheldbytheState
2.SharesheldbyState-ownedcorporations
3.Sharesheldbyotherdomesticinvestors	887,250	0.02%			304,170	1,660,388	1,964,558	2,851,808	0.04%
Incl.:Sharesheldbydomesticnon-State-ownedcorporations	0	0.00%
Sharesheldbydomesticnaturalpersons	887,250	0.02%			304,170	1,660,388	1,964,558	2,851,808	0.04%
4.Sharesheldbyforeigninvestors	5,673,668	0.11%			1,724,749	757,696	2,482,445	8,156,113	0.12%
Incl.:Sharesheldbyforeigncorporations
Sharesheldbyforeignnaturalpersons	5,673,668	0.11%			1,724,749	757,696	2,482,445	8,156,113	0.12%
II.Tradableshares	5,358,554,675	99.88%			1,609,514,208	38,756,987	1,648,271,195	7,006,825,870	99.84%
1.RMB-denominatedordinaryshares	5,358,554,675	99.88%			1,609,514,208	38,756,987	1,648,271,195	7,006,825,870	99.84%
2.Foreigncurrency-denominatedshareslisteddomestically
3.Foreigncurrency-denominatedshareslistedoverseas
4.Others
III.Totalshares	5,365,115,593	100.00%			1,611,543,127	41,175,071	1,652,718,198	7,017,833,791	100.00%

Reasonsofchangesinshares:

√Applicable□N/A

1.Uponapprovalbythe17

thmeetingofthe4

thBoardofDirectorsandthe2019annualshareholders’meeting,onJune17,2019,weimplementedtheproposalsforprofitdistributionandtransferofcapitalreservetosharecapitalfor2019,pursuanttowhich,onthebasisofthetotalsharecapitalof5,372,327,958sharesasofJune16,2020,wedistributedtoallshareholdersacashdividendofRMB1.199884(inclusiveoftax)per10shares,orRMB644,617,443.60intotal,andissued2.999711additionalsharesper10shares,or1,611,543,127sharesintotal,throughtransferofcapitalreservetosharecapital,asaresultofwhich,ourtotalsharecapitalbecame6,983,871,085shares.

2.The13

,27

and19

meetingsofthe4

BoardofDirectorsdeterminedthatthevestingconditionsforthefirstandsecondvestingperiodsofthe2018stockoptionincentiveplanandthefirstvestingperiodofthe2019stockoptionincentiveplanhadbeensatisfiedrespectively,andapprovedthattheawardeesmayexercisetherelevantstockoptionsvestedthereunderintheirsolediscretion.Duringthereportingperiod,weissued41,175,071additionalsharesasaresultofexerciseofstockoptionsbytheawardeesunderourstockoptionincentiveplans.

Approvalofchangesinshares:

√Applicable□N/A

1.Approvalbythe17

thmeetingofthe4

thBoardofDirectorsandthe2019annualshareholders’meeting.

2.Approvalbythe13

th,27thand19thmeetingsofthe4

thBoardofDirectors.Transferofshareownership:

√Applicable□N/A

1.Ex-rightsdateoftheequitydistributionfortheyearof2019:June17,2020.

2.Periodinwhichthestockoptionsvestedinthefirstvestingperiodofthe2018stockoptionincentiveplanmaybeexercisedbytherelevantawardeesintheirsolediscretion:FromDecember18,2019toSeptember24,2020.Periodinwhichthestockoptionsvestedinthesecondvestingperiodofthe2018stockoptionincentiveplanmaybeexercisedbytherelevantawardeesintheirsolediscretion:FromDecember21,2020toSeptember24,2021.Periodinwhichthestockoptionsvestedinthefirstvestingperiodofthe2019stockoptionincentiveplanmaybeexercisedbytherelevantawardeesintheirsolediscretion:FromJuly7,2020toApril21,2021.Progressofsharerepurchase:

□Applicable√N/AProgressofsalesofrepurchasedsharesthroughcallauction:

□Applicable√N/AEffectofchangesinsharesonthebasicearningspershare,dilutedearningspershare,netassetspershareattributabletoordinaryshareholdersandotherfinancialindicatorsoftheCompanyintheprecedingyearandthemostrecentreportingperiod:

□Applicable√N/AOtherinformationdisclosedastheCompanydeemsnecessaryorrequiredbythesecuritiesregulatoryauthorities:

□Applicable√N/A

2.Changesinnon-tradableshares

√Applicable□N/A

Unit:Share

Shareholder	Balanceofnon-tradablesharesasatJanuary1,2020	Numberofnon-tradablesharesunlockedinthereportingperiod	Numberofnon-tradablesharesincreasedinthereportingperiod	Balanceofnon-tradablesharesasatDecember31,2020	Reasonforrestriction	Unlockdate
XUEHaigao	253,500	659,078	0	912,578	Non-tradablesharesheldbyaretiredexecutive(withrespecttothesharesheldbytheretired	Withrespecttothesharesheldbytheretiredexecutivepriortotheexpirationofhistermofoffice,

					executivepriortotheexpirationofhistermofoffice,100%ofsuchsharesshallbelockedupwithinsixmonthsafterheleavestheCompany;andduringhisoriginaltermofoffice,75%ofthenon-tradablesharesheldbyhimattheendofeachyearshallbelockedupinthefollowingyear.)	100%ofsuchsharesshallbelockedupwithinsixmonthsafterheleavestheCompany;andduringhisoriginaltermofoffice,thenon-tradablesharesheldbyhimatthebeginningofeachyearshallbeunlockedinsuchproportionasprescribed.
LIBin	507,000	1,064,664	0	1,571,664	Non-tradablesharesheldbyadirectororexecutive(75%ofthenon-tradablesharesheldbyhimattheendofeachyearshallbelockedupinthefollowingyear.)	Thenon-tradablesharesheldbyhimatthebeginningofeachyearshallbeunlockedinsuchproportionasprescribed.
XIONGTengfang	126,750	240,816	0	367,566	Non-tradablesharesheldbyaretiredexecutive(withrespecttothesharesheldbytheretiredexecutivepriortotheexpirationofhistermofoffice,100%ofsuchsharesshallbelockedupwithinsixmonthsafterheleavestheCompany;andduringhisoriginaltermofoffice,75%ofthenon-tradablesharesheldbyhimattheendofeachyearshallbelockedupinthefollowingyear.)	Withrespecttothesharesheldbytheretiredexecutivepriortotheexpirationofhistermofoffice,100%ofsuchsharesshallbelockedupwithinsixmonthsafterheleavestheCompany;andduringhisoriginaltermofoffice,thenon-tradablesharesheldbyhimatthebeginningofeachyearshallbeunlockedinsuchproportionasprescribed.
HUANGDawei	126,750	202,792	0	329,542	Non-tradablesharesheldbyanexecutive(75%	Thenon-tradablesharesheldbyhimatthe

					ofthenon-tradablesharesheldbyhimattheendofeachyearshallbelockedupinthefollowingyear.)	beginningofeachyearshallbeunlockedinsuchproportionasprescribed.
YEYiling	185,055	397,473	0	582,528	Non-tradablesharesheldbyadirectororexecutive(75%ofthenon-tradablesharesheldbyhimattheendofeachyearshallbelockedupinthefollowingyear.)	Thenon-tradablesharesheldbyhimatthebeginningofeachyearshallbeunlockedinsuchproportionasprescribed.
WUTiansong	0	273,776	0	273,776	Non-tradablesharesheldbyanexecutive(75%ofthenon-tradablesharesheldbyhimattheendofeachyearshallbelockedupinthefollowingyear.)	Thenon-tradablesharesheldbyhimatthebeginningofeachyearshallbeunlockedinsuchproportionasprescribed.
WANGLaisheng	5,361,863	1,608,404	0	6,970,267	Non-tradablesharesheldbyadirector(75%ofthenon-tradablesharesheldbyhimattheendofeachyearshallbelockedupinthefollowingyear.)	Thenon-tradablesharesheldbyhimatthebeginningofeachyearshallbeunlockedinsuchproportionasprescribed.
Total	6,560,918	4,447,003	0	11,007,921	--	--

II.Offeringandlistingofsecurities

1.Offeringofsecurities(otherthanpreferredshares)duringthereportingperiod

√Applicable□N/A

Nameofstockanditsderivativesecurities	Offeringdate	Offeringprice(orrate)	Numberoffered	Dateoflisting	Numberapprovedtobelisted	Expirydate	Informationdisclosureavailableat	Dateofdisclosure
Stock
Convertiblecorporatebonds,separatelytradedconvertiblecorporatebondsandcorporatebonds
LuxshareConvertibleBonds	November3,2020	RMB100perbond	30,000,000	December2,2020	30,000,000	November2,2026
Otherderivativesecurities

Explanationabouttheofferingofsecurities(otherthanpreferredshares)duringthereportingperiod:

UponapprovalbytheChinaSecuritiesRegulatoryCommissionundertheDocumentZhengJianXuKe[2020]No.247,onNovember3,2020,wepubliclyissued30?000?000convertiblecorporatebondsofparvalueofRMB100each,andraisedRMB3?000?000?000.00intotal.Thecouponrateofsuchconvertiblecorporatebondsis0.10%forthefirstyear,0.20%forthesecondyear,0.30%forthethirdyear,1.50%forthefourthyear,1.80%forthefifthyearand2.00%forthesixthyear.UponapprovalbytheShenzhenStockExchangeundertheDocumentShenZhengShang[2020]No.1170,suchconvertiblecorporatebondswerelistedandtradedontheShenzhenStockExchangeonDecember2,2020undertheshortname“LuxshareConvertibleBonds”andbondcode“128136”.

2.Changesintotalnumberofshares,shareholdingstructure,andstructureofassetsandliabilitiesoftheCompany

√Applicable□N/A

1.Uponapprovalbythe17

thmeetingofthe4

2.The13

th,27thand19thmeetingsofthe4

thBoardofDirectorsdeterminedthatthevestingconditionsforthefirstandsecondvestingperiodsofthe2018stockoptionincentiveplanandthefirstvestingperiodofthe2019stockoptionincentiveplanhadbeensatisfiedrespectively,andapprovedthattheawardeesmayexercisetherelevantstockoptionsvestedintheirsolediscretion.Duringthereportingperiod,weissued41,175,071additionalsharesasaresultofexerciseofstockoptionsbytheawardeesunderourstockoptionincentiveplans.

3.Outstandingemployeeshares

□Applicable√N/A

III.Shareholdersandactualcontrollers

1.NumberofshareholdersandshareholdingstructureoftheCompany

Unit:Share

Totalnumberofordinaryshareholdersattheendofthereportingperiod

322,623

Totalnumberofordinaryshareholdersattheendofthemonthimmediatelyprecedingthedateofthisannualreport

478,840

Totalnumberofpreferredshareholderswhosevotingrightshadbeenrestitutedattheendofthereportingperiod(ifany)(Note8)

Totalnumberofpreferredshareholderswhosevotingrightshadbeenrestitutedattheendofthemonthimmediatelyprecedingthedateofthisannualreport(ifany)(Note8)

Shareholdingofordinaryshareholdersholdingmorethan5%ofthesharesortop10ordinaryshareholders

Nameofshareholder

Statusofshareholder

Shareholdingpercentage

No.ofordinarysharesheldattheendofthereportingperiod

Changesinshareholdingduringthereportingperiod

No.ofnon-tradableordinarysharesheld

No.oftradableordinarysharesheld

Pledgeorfreeze

Statusofshares

Number

LuxsharePrecisionLimited(HK)

Foreigncorporation

40.90%

2,870,246,069

-266?482?693

2,870,246,069

Pledged

623,072,952

HongKongSecuritiesClearingCompanyLimited

Foreigncorporation

6.92%

485,552,880

78?241?205

485,552,880

CentralHuijinAssetManagementCo.,Ltd.	Statedownedcorporation	1.38%		96,584,014			0	96,584,014
ChinaSecuritiesFinanceCorporationLimited	Domesticnon-statedownedcorporation	1.20%		84,428,888			0	84,428,888
PegatronTechnology(Shanghai)CoLtd	Domesticnon-statedownedcorporation	0.57%		39,845,105	11?070?199		0	39,845,105
EFund-AgriculturalBankofChina-EFundZhongzhengFinancialAssetManagementPlan	Domesticnon-statedownedcorporation	0.55%		38,656,343			0	38,656,343
ChinaAMC-AgriculturalBankofChina-ChinaAMCZhongzhengFinancialAssetManagementPlan	Domesticnon-statedownedcorporation	0.55%		38,576,831			0	38,576,831
ZhongOuFund-AgriculturalBankofChina-ZhongOuZhongzhengFinancialAssetManagementPlan	Domesticnon-statedownedcorporation	0.55%		38,557,184			0	38,557,184
YinhuaFund-AgriculturalBankofChina-YinhuaZhongzhengFinancialAssetManagementPlan	Domesticnon-statedownedcorporation	0.55%		38,508,814			0	38,508,814
CollateralsecuritiesaccountforcustomermargintradingofHuataiSecuritiesCo.,Ltd.	Domesticnon-statedownedcorporation	0.52%		36,747,171			0	36,747,171
Strategicinvestorsorgeneralcorporationsbecomingtop10ordinaryshareholdersasaresultofrightsissues(ifany)(Note3)		N/A
Affiliatesorconcertpartiesamongtheshareholderslistedabove		1.LuxsharePrecisionLimited(HK)isourcontrollingshareholder.2.WearenotawarewhetherthereareaffiliatesorconcertpartiesasdefinedintheAdministrativeMeasuresforInformationDisclosurebytheListedCompaniesRelatingtoChangesinSharesHeldbyShareholdersamongtheshareholderslistedabove.
Delegationorwaiverofvotingrightsorownershipofvotingrightsasaproxyinrespectoftheshareholderslistedabove		N/A
Sharesheldbytop10holdersoftradableshares
Shareholder			Numberoftradablesharesheldattheendofthereportingperiod			Typeandnumberofshares
						Type			Number
LuxsharePrecisionLimited(HK)			2,870,246,069			RMB-denominatedordinaryshare			2,870,246,069
HongKongSecuritiesClearingCompanyLimited			485,552,880			RMB-denominatedordinaryshare			485,552,880
CentralHuijinAssetManagementCo.,Ltd.			96,584,014			RMB-denominatedordinaryshare			96,584,014
ChinaSecuritiesFinanceCorporationLimited			84,428,888			RMB-denominatedordinaryshare			84,428,888
PegatronTechnology(Shanghai)CoLtd			39,845,105			RMB-denominatedordinaryshare			39,845,105
EFund-AgriculturalBankofChina-EFundZhongzhengFinancialAssetManagementPlan			38,656,343			RMB-denominatedordinaryshare			38,656,343
ChinaAMC-AgriculturalBankofChina-ChinaAMCZhongzhengFinancialAssetManagementPlan			38,576,831			RMB-denominatedordinaryshare			38,576,831
ZhongOuFund-AgriculturalBankofChina-ZhongOuZhongzhengFinancialAssetManagementPlan			38,557,184			RMB-denominatedordinaryshare			38,557,184
YinhuaFund-AgriculturalBankofChina-YinhuaZhongzhengFinancialAssetManagementPlan			38,508,814			RMB-denominatedordinaryshare			38,508,814

CollateralsecuritiesaccountforcustomermargintradingofHuataiSecuritiesCo.,Ltd.	36,747,171	RMB-denominatedordinaryshare	36,747,171
Affiliatesorconcertpartiesamongtop10holdersoftradableordinaryshares,andamongtop10holdersoftradableordinarysharesandtop10ordinaryshareholders	N/A
Engagementbytop10ordinaryshareholdersinmargintrading(ifany)(Note4)	N/A

Didanytop10ordinaryshareholderortop10holderoftradableordinarysharesconductanytransactionunderrepurchaseagreementduringthereportingperiod?

□Yes√NoNotop10ordinaryshareholderortop10holderoftradableordinaryshareshasconductedanytransactionunderrepurchaseagreementduringthereportingperiod

2.ControllingshareholderoftheCompany

Natureofcontrollingshareholder:ControlledbyforeigninvestorTypeofcontrollingshareholder:Corporation

Nameofcontrollingshareholder	Legalrepresentative/principal	Dateofincorporation	Organizationcode	Mainbusiness
LuxsharePrecisionLimited(HK)	WANGLaichun	August27,1999		Investmentandshareholding
Sharesheldbythecontrollingshareholderinothercompanieslistedondomesticorforeignstockexchangesduringthereportingperiod	None

Changeinthecontrollingshareholderduringthereportingperiod:

□Applicable√N/AOurcontrollingshareholderhasremainedunchangedduringthereportingperiod.

3.ActualcontrollersoftheCompanyandtheirconcertedpartiesNatureofactualcontrollers:NaturalpersonTypeofactualcontrollers:Naturalperson

Nameofactualcontroller	Relationshipwiththeactualcontroller	Nationality	Whetherornotholdaresidencepermitinanyothercountryorregion
WANGLaichun	Herself	HongKong	No
WANGLaisheng	Himself	HongKong	No
Mainoccupationsandtitles	Ms.WANGLaichun,ChairmanandGeneralManagerofourCompany,formerdirectorofShenzhenHigh-techIndustryAssociationandViceChairmanofShenzhenElectronicsIndustryAssociation,purchasedsharesofLuxshareHKjointlywithMr.WANGLaishengin1999,andfoundedandservedasChairmanofLuxsharePrecisionIndustry(Shenzhen)Co.,Ltd.in2004throughLuxshareHK.Mr.WANGLaisheng,ViceChairmanofourCompanyandchairmanofXiexunElectronic(Ji’an)Co.,Ltd.,DongguanLuxsharePrecisionIndustryCo.,Ltd.andDongguanLeaderPrecisionIndustryCo.,Ltd.,formermanagingdirectorofShenzhenQualityAssociationanddirectorofGuangdongLaboratoryFederation,purchasedsharesofLuxshareHKjointlywithMs.WANGLaichunin1999,andfoundedLuxsharePrecisionIndustry(Shenzhen)Co.,Ltd.jointlywithMs.WANGLaichunin2004

	throughLuxshareHK.
Whetherornotcontrolanyothercompanylistedonadomesticorforeignstockexchangeinthepasttenyears	None

Changeintheactualcontrollersduringthereportingperiod:

□Applicable√N/AOuractualcontrollershaveremainedunchangedduringthereportingperiod.DiagramofownershipandcontrolrelationshipbetweentheCompanyanditsactualcontrollers:

WhethertheactualcontrollerscontroltheCompanythroughanytrustorotherwaysofassetmanagement?

□Applicable√N/A

4.Othercorporateshareholdersowningmorethan10%oftheshares

□Applicable√N/A

5.Restrictionsonthesalesofsharesbythecontrollingshareholder,actualcontrollers,partiestoreorganizationandothercovenantors

□Applicable√N/A

WANGLaichun

WANGLaisheng

LuxshareHKLuxshare-ICT

SectionVIIPreferredShares

□Applicable√N/AWedidnothaveanypreferredshareduringthereportingperiod.

SectionVIIIConvertibleCorporateBonds

√Applicable□N/A

I.HistoricadjustmentsofconversionpriceTheinitialconversionpriceofourconvertiblecorporatebondswasRMB58.62pershare.Sinceweissued3,281,228additionalsharesasaresultofexerciseofstockoptionsbytherelevantawardeesunderourshareincentiveplansbetweenNovember3,2020(theofferingdateofourconvertiblecorporatebonds),theconversionpricewasadjustedfromRMB58.62persharetoRMB58.60pershare,effectivefromDecember14,2020.Sinceweissued17,765,322additionalsharesasaresultofexerciseofstockoptionsbytherelevantawardeesunderourshareincentiveplansonDecember25,2020,theconversionpricewasfurtheradjustedfromRMB58.60persharetoRMB58.48pershare,effectivefromDecember30,2020.Asattheendofthereportingperiod,theconversionpriceofourconvertiblecorporatebondswasRMB58.48pershare.II.Aggregatenumberofconvertiblecorporatebondsconverted

□Applicable√N/A

III.Top10holdersofconvertiblecorporatebonds

Unit:Share

No.	Nameofholderofconvertiblecorporatebonds	Natureofholderofconvertiblecorporatebonds	Numberofconvertiblecorporatebondsheldattheendofthereportingperiod	Amountofconvertiblecorporatebondsheldattheendofthereportingperiod(RMB)	Percentageofconvertiblecorporatebondsheldattheendofthereportingperiod
1	PingAnBankCo.,Ltd.–ChangxinConvertibleBonds-typeSecuritiesInvestmentFund	Others	1,743,029	174,302,900.00	5.81%
2	PingAnSelectedValue-addedNo.1MixedEndowmentProduct-IndustrialandCommercialBankofChinaLimited	Others	831,717	83,171,700.00	2.77%
3	NortheastSecuritiesCo.,Ltd.	Statedownedcorporation	550,303	55,030,300.00	1.83%
4	NationalSocialSecurityFundPortfolioNo.1005	Others	500,515	50,051,500.00	1.67%
5	ShanxiSecuritiesCo.,Ltd.	Statedownedcorporation	500,070	50,007,000.00	1.67%
6	GuohaiSecuritiesCo.,Ltd.	Statedownedcorporation	404,499	40,449,900.00	1.35%
7	IndustrialandCommercialBankofChinaLimited–ZhongOuConvertibleBonds-typeSecuritiesInvestmentFund	Others	402,106	40,210,600.00	1.34%
8	IndustrialandCommercialBankofChinaLimited-99FundConvertibleBonds-typeSecuritiesInvestmentFund	Others	400,000	40,000,000.00	1.33%
9	ICBCCreditSuisseMixedEndowmentProduct-IndustrialandCommercialBankofChinaLimited	Others	365,776	36,577,600.00	1.22%
10	ChinaEverbrightBankCo.,Ltd.－BoseraEnhancedConvertibleBonds-typeSecuritiesInvestmentFund	Others	351,333	35,133,300.00	1.17%

IV.Materialchangesintheprofitability,assetsandcreditstandingoftheguarantor

□Applicable√N/A

V.Changesintheassets,liabilitiesandcreditstandingoftheCompanyattheendofthereportingperiodandcasharrangementforrepaymentinsubsequentyearsMainaccountingdataandfinancialindicatorsoftheCompanyasattheendofthereportingperiodandtheendoftheprecedingyear:

Item	December31,2020	December31,2019	Y/Y%Change
Currentratio	1.29	1.24	0.05
Equity-debtratio	55.86	55.95	-0.09
Quickratio	0.9	0.93	-0.03
	2020	2019	Y/Y%Change
EBITDA-to-interestcoverageratio	27.23	20.53	6.69
Rateofloansdueandrepaid	100%	100%	0%
Rateofinterestdueandpaid	100%	100%	0%

TheY/Ychangeofalloftheindictorssetforthaboveisbelow30%.Duringthereportingperiod,weappointedUnitedCreditRatingsCo.,Ltd.toanalyzeandrateourlong-termcreditstandingandtheconvertiblecorporatebondspubliclyissuedbyus,whichratedourlong-termcreditstandingas“AA+”,determinedourratingoutlooktobestable,andratedtheconvertiblecorporatebondspubliclyissuedbyusas“AA+”,andisoftheopinionthattheriskthatwebecomeunabletorepayourconvertiblecorporatebondsuponmaturitythereofisverylow.Refertoourdesignatedwebsiteforinformationdisclosure,http://www.cninfo.com.cn,fortheCreditRatingReportonthePublicOfferingofConvertibleCorporateBondsin2020(LianHe[2020]No.2436).Duringthereportingperiod,theratingofourconvertiblecorporatebondshasremainedunchanged.

SectionIXDirectors,Supervisors,SeniorManagementandEmployeesI.Changesinsharesheldbydirectors,supervisorsandseniormanagement

Name	Position	Status	Gender	Age	Officetermfrom	Officetermto	Numberofsharesheldatthebeginningoftheperiod:(unit:share)	Numberofincreasedsharesforthecurrentperiod(unit:share)	Numberofreducedsharesforthecurrentperiod(unit:share)	Otherincreasesordecreases(unit:share)	Numberofsharesheldattheendoftheperiod(unit:share)
WANGLaichun	BoardChairmanandGeneralManager	Current	Female	54	February22,2009	May21,2021	0	0	0	0	0
WANGLaisheng	ViceChairmanoftheBoard	Current	Male	57	February22,2009	May21,2021	7,149,151	0	2,323,422	2,144,538	6,970,267
LIBin	DirectorandDeputyGeneralManager	Current	Male	44	April18,2012	May21,2021	676,000	1,216,772	0	202,780	2,095,552
YEYiling	DirectorandDeputyGeneralManager	Current	Female	50	November3,2011	May21,2021	246,740	455,950	0	74,015	776,705
XUHuaibin	Independentdirector	Current	Male	64	May6,2015	May21,2021	0	0	0	0	0
LINYifei	Independentdirector	Current	Male	46	May6,2015	May21,2021	0	0	0	0	0
ZHANGYing	Independentdirector	Current	Female	58	May22,2018	May21,2021	0	0	0	0	0
XIAYanrong	Supervisor	Current	Female	40	December19,2017	May21,2021	0	0	0	0	0
MORongying	Supervisor	Current	Female	41	May22,2018	May21,2021	0	0	0	0	0

YIPeizan	Supervisor	Current	Female	36	February22,2009	May21,2021	0	0	0	0	0
HUANGDawei	DeputyGeneralManagerandBoardSecretary	Current	Male	49	May25,2018	May21,2021	169,000	219,695	0	50,695	439,390
WUTiansong	CFO	Current	Male	51	April15,2019	May21,2021	0	334,617	0	30,417	365,034
XUEHaigao	DeputyGeneralManager	Resigned	Male	42	May25,2018	April20,2020	338,000	777,382	0	101,390	1,216,772
XIONGTengfang	DeputyGeneralManager	Resigned	Male	39	May25,2018	April21,2020	169,000	270,393	0	50,695	490,088
Total	--	--	--	--	--	--	8,747,891	3,274,809	2,323,422	2,654,530	12,353,808

II.ChangesofDirectors,SupervisorsandSeniorManagementoftheCompany

√Applicable□N/A

Name	Position	Type	Date	Reason
XIONGTengfang	SeniorManagement	Dismissal	April20,2020	BasedontherelevantdevelopmentneedsoftheCompany’scommunicationbusiness,Mr.XIONGTengfangresignedasthedeputygeneralmanageroftheCompanyandafterresignation,continuedtoworkintheCompanywithfocusontheoperationandmanagementoftheCompany’scommunicationbusiness.
XUEHaigao	SeniorManagement	Dismissal	April20,2020	BasedontherelevantdevelopmentneedsoftheCompany’scommunicationbusiness,Mr.XUEHaigaoresignedasthedeputygeneralmanageroftheCompanyandafterresignation,continuedtoworkintheCompanywiththefocusontheoperationandmanagementoftheCompany’scommunicationbusiness.

III.JobTitles

Abouttheeducationbackgroundsandmainworkexperiencesoftheexistingdirectors,supervisorsandseniormanagementoftheCompanyandtheircurrentjobdutiesintheCompany

(I)DirectorsMs.WANGLaichun,54yearsold,fromHongKong,China,holdstheEMBAfromShenzhenGraduateSchoolofTsinghua

University,andworksastheChairmanoftheBoardandGeneralManageroftheCompany.SheservedasaDirectorofShenzhenHigh-techIndustryAssociationandViceChairmanofShenzhenElectronicsIndustryAssociation.Ms.WANGhadworkedintheWiringDivisionofFoxconnunderTaiwanHonHaifornearlytenyears,andleftFoxconnin1997tostartherownbusiness.In1999,Ms.WANGLaichunandMr.WANGLaishengjointlypurchasedtheequityinLuxshareLimited.TheyfoundedLuxsharePrecisionIndustry(Shenzhen)Co.,Ltd.in2004throughinvestmentbyLuxshareLimitedandworkedastheBoardChairman.Ms.WANGLaichunisthememberofthe1st,2ndand3rdsessionsoftheboardofdirectors.Mr.WANGLaisheng,57yearsold,fromHongKong,China,worksasViceChairmanoftheBoardoftheCompanyandtheBoardChairmanofXiexunElectronic(Ji’an)Co.,Ltd.andofXiechuangPrecisionIndustry(Shenzhen)Co.,Ltd..HeservedastheManagingDirectorofShenzhenQualityAssociationandaDirectorofGuangdongLaboratoryFederation.Mr.WANGLaishengventuredintoindividualbusinesssincethemid-1980sandhasmorethantenyearsofbusinessexperience;Mr.WANGLaishengandMs.WANGLaichunjointlypurchasetheequityinLuxshareLimitedin1999andin2004hefoundedLuxsharePrecisionIndustry(Shenzhen)Co.,Ltd.withMs.WANGLaichun.Mr.WANGLaishengisamemberofthe1st,2ndand3rdsessionsoftheboardofdirectors.

Mr.LIBin,44yearsold,Chinesenationality,hasamaster’sdegreeinIndustrialEngineeringfromShanghaiJiaotongUniversity,andworksasadirector,deputygeneralmanagerandcoretechnicianoftheCompany.HejoinedFuhongPrecisionCompanyinJuly2000,responsiblefortechnicaldevelopmentandmanagementofhigh-frequencydatacableconnectioncomponents,andjoinedLantoElectronicLimitedin2009,responsibleforproductdevelopmentandmanagement.

YEYiling,50yearsold,acitizenofTaiwan,China,hasabachelor’sdegreeinAccountingfromSoochowUniversity,andworksasadirector,deputygeneralmanagerandCFOoftheCompany.Ms.YEYilinghadworkedasaseniorauditorintheAuditorDepartmentinPricewaterhouseCoopersfromJuly1996toJune2000,andfromJuly2000toNovember2008,successivelyworkedastheFinancialDirectorinWalsinLihuaCorp.,UltraSourceTechnologyCorp.andSYNMOSABIOPHARMACOPORATION,listedcompaniesinTaiwan.ShejoinedtheCompanyin2011.Ms.YEYilingobtainedthequalificationtoworkinChinesemainlandinNovember2011.

Mr.XUHuaibin,64yearsold,Chinesenationality,holdsamaster’sdegree.HeworksastheDeputySecretary-GeneraloftheEquityFinancingandListingProfessionalCommitteeofChinaSecuritiesLawResearchAssociation.HeiscurrentlyanIndependentDirectoroftheCompany.Mr.XUHuaibinwassenttoaHongKongaccountingfirmtostudythewesternindependentauditpracticewithoutchargeintheearly1990s.Afterthat,heworkedinaccountingfirmsbothatMainlandandHongKongandtheiraccountingcompaniesastheVicePresident,DeputyGeneralManager,ManagingDirectorandamongothers.Hehasobtainedthequalificationsasacertifiedpublicaccountantandcertifiedtaxagent,andthequalificationasanIndependentDirectoroftheShenzhenStockExchange.Mr.XUHuaibinisamemberofthe3rdsessionsoftheboardofdirectorsoftheCompany.

Mr.LINYifei,46yearsold,Chinesenationality,hasamaster’sdegreeintheLawsfromtheUniversityofAberdeenUnitedKingdomanddoctoraldegreeinLawsfromXiamenuniversity.HeiscurrentlytheChiefConsultantofYI&PARTNERSandanIndependentDirectorofLuxsharePrecision.Mr.LINYifeihasspecializedinlegalpracticeandresearchforabout20years,andhandledalargenumberofinternationalanddomesticarbitrationcasesinvolvingvariousfieldsofcommercialaffairs.Meanwhile,hehascompiledandtranslatedmanybooksandhasrichexperienceincommercialdisputeresolutionpracticeandresearch.Mr.LINworksasanarbitratorinmanyarbitrationinstitutionsbothathomeandabroadincludingtheInternationalArbitrationCourtoftheInternationalChamberofCommerce(ICC),HongKongInternationalArbitrationCenter(HKIAC),ShanghaiInternationalEconomicandTradeArbitrationCommission,SouthChinaInternationalEconomicandTradeArbitrationCommission,WuhanArbitration

Commission,XiamenArbitrationCommission,ZhengzhouArbitrationCommission,andisalsoaDrectorinChinaSocietyofPrivateInternationalLawandtheManagingDirectoroftheArbitrationLawResearchAssociationofGuangdongProvinceLawSociety.Mr.LINYifeihasobtainedthequalificationtoworkasanIndependentDirectoroftheShenzhenStockExchange,andisamemberofthe3rdsessionoftheboardofdirectorsoftheCompany.Ms.ZHANGYing,58yearsold,Chinesenationality,hasadoctoraldegreeintheLawsfromWuhanUniversityandpostdoctoraldegreeintheLawsfromtheChineseAcademyofSocialSciences.SheworksasanAssociatedProfessorintheLawSchoolofShenzhenUniversityandanIndependentDirectorofLuxsharePrecision.Ms.ZHANGYingworkedasalecturerinChinaUniversityofGeosciencesin1984andin1994,anassistantresearchintheInstituteofPoliticalScienceandLawofWuhanAcademyofSocialSciences.ShehasservedastheManagingDirectoroftheChinaEuropeanLawResearchAssociationandanarbitratoroftheShenzhenArbitrationCommissionsince2009.Ms.ZHANGYinghasobtainedthequalificationtoworkasanIndependentDirectoroftheShenzhenStockExchange.(II)SupervisorsMs.XIAYanrong,40yearsold,Chinesenationality,hasabachelor’sdegreeinFinanceManagement.SheworksasasupervisoroftheCompany.Ms.XIAworkedattheFinanceDepartmentin3CEMSGroupPRIMETechnology(Guangzhou)Co.,Ltd.fromJanuary2003toApril2006,andfromApril2006toApril2009,attheFinanceDepartmentinDachangElectronicTechnology(Suzhou)Co.,Ltd.ofP-TWO.ShehasservedtheCompanysinceApril2009.Specifically,shesuccessivelyworkedastheHeadofFinanceDepartmentinLantoElectronicLimited,theHeadofFinanceDepartmentinLuxsharePrecision,andtheHeadofCreditManagementDepartmentinLuxsharePrecision.Currently,sheworksastheDirectorofCentralFinanceDepartmentandCreditManagementDepartmentoftheCompany.

Ms.MORongying,41yearsold,Chinesenationality,hasadegreeinBusinessAdministration.SheworksasasupervisoroftheCompany.Ms.MOworkedintheHeadofPlanningDepartmentinThomsonMultimedia(Dongguan)Co.,Ltd.,andhasservedLuxsharePrecisionfromJune2007.Currently,sheworksastheHeadofCentralCustomsDepartmentoftheCompany.

Ms.YIPeizan,36yearsold,Chinesenationality,joinedintheCompanyin2004andworkedatFinanceDepartmentoftheCompany.Currently,sheworksasasupervisoroftheCompany.Ms.YIPeizanisamemberofthe1st,2ndand3rdsessionsoftheboardofsupervisors.

(III)SeniorManagement

TheresumeofMs.WANGLaichunisseeninthe“Directors”ofthisSection.

TheresumeofMs.LIBinisseeninthe“Directors”ofthisSection.

TheresumeofMs.YEYilingisseeninthe“Directors”ofthisSection.

Mr.HUANGDawei,49yearsold,acitizenofTaiwan,China,hasamaster’sdegreeinIndustrialEngineeringfromNationalTsingHuaUniversity.Currently,heworksastheDeputyGeneralManagerandtheBoardSecretaryoftheCompany.HehadworkedinaFortune500company,responsibleformarketdevelopmentandoperationmanagementandinJune2013,joinedLuxshareElectronicTechnology(Kunshan)Co.,Ltd.underLuxsharePrecisionastheLegalRepresentative,adirectorandGeneralManager.

Mr.HUANGhasobtainedtheQualificationCertificateforBoardSecretaryissuedbytheShenzhenStockExchange,andhisqualificationmeetstherequirementsofRulesGoverningtheListingofSharesonShenzhenStockExchangeandotherrelevantlawsandregulationsaswellastheArticlesofAssociation.

Mr.WUTiansong,51yearsold,acitizenofTaiwan,China,hasabachelor’sdegreefromNationalTaiwanUniversityofScienceandTechnology.Currently,heworksastheHeadofFinanceDepartmentofLuxsharePrecisionIndustryCo.,Ltd..Ms.WUTiansonghadworkedasaseniorauditorintheAuditorDepartmentinDeloitteToucheTohmatsuLimitedfromAugust1996toAugust1999,andfromSeptember1999toMarch2009,successivelyworkedinUnderwritingDepartmentofTaiwanYuandaSecuritiesCorp.,andinthelistedcompanyTaiwanP-TWOINDUSTRIESINCandUNIWILLCOMPUTERCORP.astheFinanceDirector,andinIchinaTechnologies,Inc.astheFinanceDirector.HejoinedtheCompanyin2011.Positionsheldintheshareholders

√Applicable□N/A

Nameofpersonnel	Nameofshareholder	Positionsheldintheshareholder	Officetermfrom	Officetermto	Receiveremunerationsorallowancesfromshareholders?
WANGLaichun	LuxshareLimited	Director	August27,1999		No
WANGLaisheng	LuxshareLimited	Director	August27,1999		No

Explanationsonthepositionsheldinotherentities

√Applicable□N/A

Nameofpersonnel	Nameofotherentities	Positionsheldinotherentities	Officetermfrom	Officetermto	Receiveremunerationsorallowancesfromotherentities?
WANGLaichun	XiexunElectronic(Ji’an)Co.,Ltd.	ViceChairmanoftheBoard	November21.2005		No
WANGLaichun	FujianJKWiringSystemsCo.,Ltd.	BoardChairman	June18,2012		No
WANGLaichun	BodyControlSystems	BoardChairman	July18,2018		No
WANGLaisheng	XiexunElectronic(Ji’an)Co.,Ltd.	BoardChairman	November12,2005		No
WANGLaisheng	LantoElectronicLimited	ViceChairmanoftheBoard	May12,2011		No

WANGLaisheng	KunshanLuxsharePrecisionIndustryCo.,Ltd.	Director	October25,2011	No
WANGLaisheng	DonguanXuntaoElectronicCo.,Ltd.	ViceChairmanoftheBoard	July10,2012	No
WANGLaisheng	DongguanLidePrecisionIndustryCo.,Ltd.	BoardChairman	August16,2012	No
WANGLaisheng	KunshanLuxsharePrecisionIndustryCo.,Ltd.	ViceChairmanoftheBoard	October25,2011	No
WANGLaisheng	SuiningLuxsharePrecisionIndustryCo.,Ltd.	ExecutiveDirector	January11,2013	No
WANGLaisheng	XingningLuxsharePrecisionIndustryCo.,Ltd.	ExecutiveDirector	November19,2013	No
WANGLaisheng	LuxsharePrecisionIndustry(Chuzhou),Ltd.	ExecutiveDirector	March24,2014	No
WANGLaisheng	FengshunLuxsharePrecisionIndustryCo.,Ltd.	ExecutiveDirector	July4,2014	No
WANGLaisheng	DongguanLuxsharePrecisionIndustryCo.,Ltd.	BoardChairman	November27,2015	No
WANGLaisheng	JiangxiLuxshareIntelligentManufactureCo.,Ltd.	Director	December25,2015	No
Explanationsonthepositionsheldinotherentities	None

PenaltybyregulatorsontheCompany’scurrentdirectors,supervisorsandseniormanagement,includingthoseresignedinthereportingperiodandinrecentthreeyears

□Applicable√N/A

IV.Remunerationofdirectors,supervisorsandseniormanagement

Decision-makingprocess,determinationbasisandactualpaymentofremunerationofdirectors,supervisorsandseniormanagementDuringthereportingperiod,theCompanyimplementedtheperformanceassessmentforitsdirectors,supervisorsandseniormanagement,andpaidthemtheannualincomeunderthe“monthlysalary+year-endbonus”model.TheCompanyassessedthedirectors,supervisorsandseniormanagementattheendoftheyearbasedonthebusinessconditionsoftheCompanyandworkperformanceofindividuals,anddeterminedtheirannualincomedependingontheassessmentresults.TheallowanceforanindependentdirectorisRMB80,000peryear,andthecostsfortravellingandofficeincurredbyperformanceofhisdutiesarebornebytheCompany.

Remunerationofdirectors,supervisorsandseniormanagementduringthereportingperiod

In:RMB’0000

Name	Position	Gender	Age	Status	TotalremunerationreceivedfromtheCompany(includingtax)	ReceivetheremunerationfromtheCompany’srelatedparties?
WANGLaichun	BoardChairmanandGeneralManager	Female	54	Current	240	No
WANGLaisheng	ViceChairmanoftheBoard	Male	57	Current	240	No
LIBin	DirectorandDeputyGeneralManager	Male	44	Current	180	No
YEYiling	DirectorandDeputyGeneralManager	Female	50	Current	141.79	No
XUHuaibin	IndependentDirector	Male	64	Current	8	No
LINYifei	IndependentDirector	Male	46	Current	8	No
ZHANGYing	IndependentDirector	Female	58	Current	8	No
XIAYanrong	Supervisor	Female	40	Current	48	No
MORongying	Supervisor	Female	41	Current	42	No
YIPeizan	Supervisor	Female	36	Current	9	No
HUANGDawei	DeputyGeneralManagerandBoardSecretary	Male	49	Current	97.15	No
WUTiansong	CFO	Male	51	Current	119.52	No
XUEHaigao	DeputyGeneralManager	Male	42	Resigned	98.71	No
XIONGTengfang	DeputyGeneralManager	Male	39	Resigned	95.68	No
Total	--	--	--	--	1,335.85	--

EquityincentivesawardedtotheCompany’sdirectorsandseniormanagement

√Applicable□N/A

Unit:shares

Name	Position	Numberofexercisablesharesduringthereportingperiod	Numberofsharesexercisedduringthereportingperiod	Exercisepriceofthesharesexercisedduringthereportingperiod(RMB/share)	Marketpriceattheendofthereportingperiod(RMB/share)	Numberofrestrictedstocksheldatthebeginningoftheperiod	Numberofsharesunlockedintheperiod	Numberofrestrictedstocksnewlygrantedduringthereportingperiod	Grantpriceofrestrictedstocks(RMB/share)	Numberofrestrictedstocksheldattheendoftheperiod
LIBin	DirectorandDeputyGeneralManager	337,992	337,992	13.70	56.12
LIBin	DirectorandDeputyGeneralManager	878,780	878,780	10.28	56.12
YEYiling	DirectorandDeputyGeneralManager	135,196	135,196	13.70	56.12
YEYiling	DirectorandDeputyGeneralManager	320,754	320,754	10.28	56.12
HUANGDawei	DeputyGeneralManagerandBoardSecretary	219,695	219,695	10.28	56.12
WUTiansong	CFO	101,400	101,400	13.48	56.12
WUTiansong	CFO	131,817	131,817	10.28	56.12
WUTiansong	CFO	135,196	101,400	13.70	56.12
XIONGTengfang	DeputyGeneralManager	490,088	270,393	13.70	56.12

XUEHaigao	DeputyGeneralManager	337,992	337,992	13.70	56.12
XUEHaigao	DeputyGeneralManager	439,390	439,390	10.28	56.12
Total	--	3,528,300	3,274,809	--	--	0	0	0	--	0
Remarks(ifany)		Duringthereportingperiod,thenumberofexercisablesharesfordirectorsandseniormanagementoftheCompanytotals3,528,300,representing0.05%oftotalsharecapitaloftheCompanyattheendofthereportingperiod.ThedirectorsorseniormanagementotherthanWUTiansongasaseniorofficerandXIONGTengfangasaresignedseniorofficerhaveexercisedalltheshares,withthenumberoftotalexercisedsharesbeing3,274,809.Thevestingconditionsweremetinthefirstvestingperiodof2018StockOptionIncentivePlanoftheCompany,andtheseniormanagementexercised101,400sharesatthepriceofRMB13.48pershare;thevestingconditionsweremetinthesecondvestingperiodof2018StockOptionIncentivePlan,andthedirectorsandseniormanagementexercised1,990,436sharesintheaggregateatthepriceofRMB10.28pershare;andthevestingconditionsweremetinthefirstvestingperiodof2019StockOptionIncentivePlanoftheCompany,andthedirectorsandseniormanagementexercised1,182,937sharesintheaggregateatthepriceofRMB13.7pershare.

V.EmployeesoftheCompany

1.Numberofemployees,roletypeandeducationalbackground

Numberofcurrentemployeesintheparentcompany(person)	515
Numberofcurrentemployeesinmajorsubsidiaries(person)	171,895
Totalnumberofcurrentemployees(person)	172,410
Totalnumberofemployeesreceivingasalaryduringthereportingperiod(person)	172,410
Numberofretiredemployeesforwhichtheparentcompanyandmajorsubsidiarieshavetobearexpenses(person)	0
Roletype
Category	Number(person)
Productionpersonnel	143,902
Salespersonnel	2,300
Professionalpersonnel	15,154
Financialpersonnel	211
Administrativepersonnel	10,843
Total	172,410
Educationalbackground

Category	Number(person)
Bachelor’sdegreeandabove	9,190
Associate’sdegree	16,034
Highschool,technicalsecondaryschoolandbelow	147,186
Total	172,410

2.Remunerationpolicy

TheCompanyhasformulatedthemanagementmethodsonemployeesalary,performanceandyea-endbonus,providedemployeeswithcompetitivesalaryguaranteeinascientificanreasonablemanner,andsetupthecompleteemployeesalarymanagementsystem,contributedto“fiveinsurancesandonehousingfund”foremployees,andtimelypaidemployeessalariesinstrictaccordancewiththerelevantlawsandregulations,andresolutelyeliminatedtheoccurrenceofbondedlabor.Tohelpemployeesbetterunderstandthedegreeofmatchingbetweenjobresponsibilitiesandtheirowncapabilities,theCompanyhasbuiltamulti-dimensionalperformanceevaluationsystemthatincludesemployeeself-evaluationandsuperiorevaluation,soastoobjectivelyandcomprehensivelyreflectemployees’annualperformance.TheCompanyconductedtheemployeeperformancecommunicationactivitiesannuallytoensurethateachemployeecanreceivesufficientsupportandresourcesrelatedtothecareerdevelopmentinLuxsharePrecision,andtoenhanceandoptimizetheworkexperienceofeveryemployee.Wehaveestablishedvariousemployeecompensationstructures,includingyear-endbonuses,projectawards,equityincentiveforcorecadresandoutstandingemployees.Duringthereportingperiod,theCompanycontinuedtooptimizetheperformanceappraisalandfullyevaluatedtheworkperformanceoftheteamandindividuals,effectivelyimprovingtheexecutionabilityandresponsibilityawarenessofemployees.ThisisconducivetoretainingandattractingoutstandingtalentstoprovidehumanresourcesguaranteeforthegrowthoftheCompany.

3.Trainingplan

TheCompanywascommittedtostaffcareerplanningandtalentcultivation.IthasestablishedaperfecttalenttrainingsystemtoattractandmotivatemoreexcellenttalentsandpromotethecommongrowthofemployeesandtheGroup.Also,theCompanyhassetupanonlineandofflinelearningplatformtoconductthemulti-dimensionalspecialtrainingthatisdirectedtowarddifferenttypesofemployeesandnewprojects.Withthisplatform,theCompanyprovidedhierarchicalanddistincttargetedtrainingforallemployees,andoffereddifferenttrainingseriesfordifferentgroupsofpeopleandneeds.Forexample,forsenior,middleandgrassrootsmanagersandkeyhigh-potentialreservetalents,theCompanyfocusedonthe“TalentCultivationSeries”training,aimingtocreateanefficientanddynamicstaffteam;andregardingthetalentsinkeyfieldssuchasmanufacturing,R&Dtechnology,marketingandsupplychain,wefocusedonthe“AbilityImprovementSeries”training,continuouslyenhancingprofessionalcapabilitiesofemployeesindifferentpositions.Furthermore,theCompanycarriedouttheschool-enterprisecooperationandencouragedtheemployeestoobtaintheprofessionalqualificationrecognitionfromtheCompanyandsociety,soastoimprovetheproductionlevelandsocialrecognitionoftheCompanyasawhole.Meanwhile,westrivedtocreatethe“JushiSeries”trainingandbuildthelearningandcommunicationplatformsincluding“LuxshareClassroom”and“ManagementForum”,offeringopportunitiestoexcellentLuxshareemployeesforshowingthemselves.Withtheseefforts,wecreatedagoodlearningenvironmentandpromotedtheintegrationandcommunicationsbetweenthepersonnel.Inaddition,toassisttheCompanyintheimplementationofkeystrategiesandchangesinacertainperiodoftime,weofferthe“ChangeSeries”trainingbasedonthebusinessneeds.

Inordertostandardizetheemployeetrainingmanagement,theCompanyhasformulatedtheEducationandTrainingManagementMeasures,EducationandTrainingOperatingProcedures,andInternalLecturerManagementMeasuresandupdatesthem,whichclearlycovertrainingsystemsfromemployeeinduction,orientation,in-service,transfertopromotion;andeachfactoryhasformulatedtheEducationandTrainingManagementProceduresandcorrespondingmanagementmeasuresinaccordancewiththeGroup’smanagementstandards,andalsoestablishedtheannualtrainingplansforthefactoryanditsvariousdepartmentsbasedonitsannualdevelopmentplanning,effectivelyenhancingthecorecompetitivenessofemployeesandtheCompanyandachievingthewin-wingoalofimprovingemployees’professionalabilityandrealizingthesustainablegrowthoftheCompany.

4.Laboroutsourcing

□Applicable√N/A

SectionXCorporateGovernance

I.BasicIntroduction

TheCompanyhasalwaysbeencommittedtopromotingtheestablishmentandimprovementofamoderncorporatesystem,regulatingtheoperationofthelistedcompanyandperfectingthecorporategovernancestructure.Duringthereportingperiod,theCompanykeptonperfectingthecorporategovernancestructure,establishedasoundcorporatesystem,regulatedcorporateoperation,strengthenedinformationdisclosure,activelyconductedinvestorrelationshipmanagementandimprovedcorporategovernancelevelinstrictaccordancewiththerequirementsoftheCompaniesLaw,theSecuritiesLaw,theRulesGoverningListingofStocksonShenzhenStockExchange,theGuidelinesforArticlesofAssociationofListedCompanies,theCodeofCorporateGovernanceofListedCompanies,theGuidelinesoftheShenzhenStockExchangeforCompliantOperationoftheListedCompaniesandotherlaws,regulationsandregulatorydocuments.

(I)ShareholdersandShareholders’GeneralMeeting:TheCompanystandardizedtheconvening,holdingandvotingproceduresofshareholders’generalmeetingsinstrictaccordancewiththeCompaniesLaws,theArticlesofAssociation,theRulesofProcedurefortheShareholders’GeneralMeetingandotherprovisionsandrequirementstoequallytreatallshareholderssothatshareholders,especiallysmallandmediumshareholders,canfullyexercisetheirrightsbyusingacombinationofon-siteandonlinevoting.Whentheshareholders’generalmeetingreviewstherelatedpartytransactions,therelatedshareholderswererecusedfromvoting,whichdoesnotdamagetheinterestsofshareholders;whenvotingonproposalsthataffecttheinterestsofsmallandmediuminvestors,thevotesofsmallandmediuminvestorsarecountedseparately.Theshareholders’generalmeetingswereconvenedandheldbytheboardofdirectorsoftheCompanyandwitnessedbythelawyersonsite.

(II)ControllingShareholdersandtheCompany:TheCompanyisindependentofcontrollingshareholdersintermsofbusiness,assets,personnel,bodyandfinance,etc.,andtheCompany’sboardofdirectors,boardofsupervisorsandotherinternalbodiesoperatedindependently.ThecontrollingshareholdersoftheCompanycanstrictlyregulatetheirownbehavior,neitherinterfereintheCompany’sdecision-makingandbusinessactivitiesdirectlyorindirectlybypassingtheshareholders’generalmeeting,norusedcapitalofthelistedcompanyfornon-operatingpurposes.

(III)DirectorsandtheBoardofDirectors:TheCompanyelecteddirectorsandengagedindependentdirectorsinstrictaccordancewiththeCompaniesLawandtheArticlesofAssociation.TheCompanyhassevendirectors,includingthreeindependentdirectors,whoallaretheexpertsinthefieldsofcorporatemanagementandfinancialaccounting.ThenumberofdirectorsandcompositionoftheboardofdirectorscomplywiththerequirementsofthelawsandregulationsaswellastheArticlesofAssociation.TheCompany’sboardofdirectorshasfourspecialcommittees,includingAuditCommittee,StrategyCommittee,NominationCommitteeandRemunerationandAppraisalCommittee,withreasonablememberstructure,providingscientificandprofessionalopinionsandreferencesforthedecision-makingoftheboardofdirectors.TheboardofdirectorsconvenedandheldthemeetingsoftheboardofdirectorsinstrictwiththeArticlesofAssociationandtheRulesofProcedurefortheBoardofDirectorstoimplementtheresolutionsadoptedbytheshareholders’generalmeeting;alldirectorscanfulfilltheirdutiesdiligently,scrupulouslyattendedthemeetingsoftheboardofdirectorsandtheshareholders’generalmeetings,andsafeguardedthelegitimaterightsandinterestsoftheCompanyandtheshareholders.

(IV)SupervisorsandtheBoardofSupervisors:TheCompany’sboardofsupervisorselectedsupervisorsinstrictaccordance

withtheelectionproceduresprovidedintheCompaniesLawandtheArticlesofAssociation.TheCompanyhasthreesupervisors,includingthechairmanoftheboardofsupervisors.ThenumberofsupervisorsandcompositionoftheboardofsupervisorscomplywiththerequirementsofthelawsandregulationsaswellastheArticlesofAssociation.TheboardofsupervisorsconvenedandheldthemeetingsoftheboardofsupervisorsinstrictwiththeArticlesofAssociationandtheRulesofProcedurefortheBoardofSupervisors;allsupervisorsseriouslyfulfilledtheirduties,effectivelymonitoredthelegalityandcomplianceofperformanceofdutiesastheCompany’sfinancepersonnel,directorsandseniormanagementingoodfaithandwithduediligenceandexpressedindependentopinions,andsafeguardedthelegitimaterightsandinterestsoftheCompanyandtheshareholders.

(V)PerformanceAppraisalandIncentiveRestraintMechanism:TofurtherestablishasoundincentivemechanismoftheCompany,strengthentheconceptofsustainabledevelopmentbetweentheCompanyandthemanagementandthecoreemployees,theCompanyimplementedtheequityincentiveplantostrengthenthebenefitsharingandrestrainmechanismbetweenshareholdersandcorebusinesspersonnel,maintainthestabilityofthemanagementteamandkeybusinesspersonnel,ensurethetherealizationoftheCompany’sdevelopmentstrategyandbusinessobjectivesandlong-termstablegrowthoftheCompany.TheappointmentoftheCompany’sseniormanagementisopenandtransparent,whichcomplieswiththeprovisionsofthelawsandregulations.

(VI)Stakeholders:TheCompanyfullyrespectedthelegitimaterightsandinterestsofstakeholdersandrealizedthecoordinationandbalanceofinterestsofthesociety,shareholders,theCompanyandemployeestojointlypromotethesustainableandstabledevelopmentoftheCompany.

(VII)InformationDisclosureandTransparency:TheCompanyperformedinformationdisclosureobligationsinatrue,accurate,timelyandcompletemannerinstrictaccordancewiththeprovisionsoftherelevantlaws,regulationsandtheInformationDisclosureManagementMeasuresoftheCompany,anddesignatedtheSecuritiesTimesandCninfo(www.cninfo.com.cn)todisclosetheCompany’sinformation;theCompanystrictlyprotectedtheconfidentialityofundisclosedinformationandearnestlyregisteredandfiledtheinsiderswhohaveaccesstoinsideinformation,establishedafilingsystemforinsiderswhohaveaccesstoinsideinformation,andtimelysubmittedthesametotheregulatorsforfilingasrequired.Meanwhile,theCompanystrictlyregulatedthereportingoftheinformationoftheCompanytoexternalinformationusers.Whenreceivingspecificvisitors,theCompanyseriouslydidsoinstrictaccordancewiththerelevantrequirements,requiredvisitorstosigntheLetterofCommitment,andtimelyuploadedtherelevantresearchrecordstothe“e-interaction”platformoftheShenzhenStockExchangefordisclosure.Duringthereportingperiod,theCompanydidnotuseinsideinformationtotradeitsstocks.Meanwhile,theCompanysetupthespecialcolumnofinvestorphoneandinvestorrelationshipmanagementanddesignatedapersontoberesponsiblefortimelycommunicationwithinvestors.Furthermore,theCompanykeptcontactandcommunicationwithregulatorsinanactiveandtimelymanner,reportedtheCompany’srelevantmatterssoastoaccuratelygainanunderstandingofregulatoryrequirementsofinformationdisclosureandfurtherimprovetheCompany’stransparencyandqualityofinformationdisclosure.TheCompanydisclosedtheinformationinatrue,accurate,completeandtimelymannerinstrictcompliancewiththerequirementsontherelevantcontentsandformat,andensuredthatallshareholderscanfullyobtaintheinformationoftheCompanythroughvariouschannels.ArethereanysignificantdifferencesbetweentheCompany’sactualgovernancestatusandtheregulatorydocumentsongovernanceoflistedcompaniesissuedbytheCSRC?

□Yes√NoThereisnosignificantdifferencebetweentheCompany’sactualgovernancestatusandtheregulatorydocumentsongovernanceoflistedcompaniesissuedbytheCSRC.

II.DetailsoftheCompany’sSeparationfromControllingShareholderswithrespecttoBusiness,Personnel,Assets,OrganizationandFinancialAffairsDuringthereportingperiod,theCompanyregulateditsoperationinstrictaccordancewiththeCompaniesLawandtheArticlesofAssociation,andgraduallyimproveditscorporategovernancestructure,wasindependentfromcontrollingshareholdersintermsofbusiness,assets,personnel,bodyandfinancetorealizeindependentbusinessandself-management,andhadindependentresearchanddevelopment,productionandsalessystems.Duringthereportingperiod,theCompany’sproductionandoperationwasstableanditsinternalbodywasperfect,andtheCompanycan,therefore,operateinanindependentandcompliantmanner:

(1)BusinessTheCompanyhadcompletecorporatepropertyrightsandindependentR&D,productionandsalessystems,conductedthebusiness,accountinganddecision-makingindependently,assumedliabilitiesandrisksindependentlyandcarriedoutproductionandoperationactivitiesindependentofshareholdersandotherrelatedparties.

(II)AssetsTheCompanyisacompanylimitedbysharesestablishedthroughoverallchangeaccordingtolaw,andhasindependentandcompleteassets.TheCompanywentthroughtheformalitiesforchangesinrelatedassetsandequityaccordingtolaw.TheCompanyneitherprovidedtheguaranteesforthedebtsofshareholderswithitsassetsorreputation,norlenttheborrowingsandcreditlinesinthenameoftheCompanytoeachshareholder.TheCompanyhascompletecontroloverallassets,andtherewasnoanyappropriationofassetsorcapitalbythecontrollingshareholders,therebyharmingtheinterestsoftheCompany.(III)PersonnelTheCompany’sdirectors,supervisorsandseniormanagementwerelegallyelectedandgeneratedinaccordancewiththeCompaniesLaws,theArticlesofAssociationandotherrelevantlaws,regulationsandrules;theCompany’sseniormanagement(excludingindependentdirectors)allworkedintheCompanyasfull-timeofficersandreceivedremunerationformtheCompany,anddidnotholdanypositionsotherthandirectorandsupervisorintherelatedshareholdersandotherentitieswithsameorsimilarbusiness.TheCompanyhadindependentemployees,managedtheirremunerationandsocialsecurityindependently,andhadacompletemanagementsystemandmechanism.

(IV)BodyTheCompanyestablishedacompletegovernancestructureincludingtheshareholders’generalmeeting,theboardofdirectorsandtheboardofsupervisors,andanindependentandcompleteoperationandmanagementbodythatmeetstheneedsoftheCompany’sowndevelopmentandactualsituation.SuchbodiesexercisedtheirpowersindependentlyinaccordancewiththeArticlesofAssociationandinternalmanagementsystem.Sinceitsestablishment,theCompany’sproduction,operationandofficebodiesoperatedindependentofshareholders.

(V)FinanceTheCompanysetupanindependentfinancialaccountingdepartmentandaninternalauditdepartment,establishedan

independentaccountingsystemandacompliantfinancialmanagementsystem,whichindependentlymadefinancialdecisions.Sinceitsinception,theCompanyopenedaccountsinthebankindependently,madetaxdeclarationsandperformedtaxobligationsindependentofshareholdersaccordingtolaw,andsignedcontractswithexternalpartiesindependently.

III.HorizontalCompetition

□Applicable√N/A

IV.DetailsAbouttheAnnualShareholders’GeneralMeetingandExtraordinaryShareholders’GeneralMeetingHeldDuringtheReportingPeriod

1.Detailsabouttheshareholders’generalmeetingduringthereportingperiod

Meeting	Meetingtype	Investorparticipation%	Dateconvened	Disclosuredate	Disclosureindex
2019AnnualShareholders’GeneralMeeting	AnnualShareholders’GeneralMeeting	52.64%	May13,2020	May14,2020	AnnouncementofResolutionsof2019AnnualShareholders’GeneralMeetingofLuxsharePrecision(AnnouncementNo.:2020-041)disclosedatSecuritiesTimesandCninfo(www.cninfo.com.cn)
2020FirstExtraordinaryShareholders’GeneralMeeting	AnnualShareholders’GeneralMeeting	50.88%	July27,2020	July28,2020	AnnouncementofResolutionsof2020FirstExtraordinaryShareholders’GeneralMeetingofLuxsharePrecision(AnnouncementNo.:2020-060)disclosedatSecuritiesTimesandCninfo(www.cninfo.com.cn)

2.Extraordinaryshareholders’generalmeetingrequestedbythepreferredshareholderwithrestitutionofvotingright

□Applicable√N/A

V.PerformanceofIndependentDirectorsDuringtheReportingPeriod

1.Detailsofindependentdirectors’attendanceatmeetingsofboardofdirectorsandshareholders’generalmeetings

DetailsofIndependentDirectors’AttendanceatMeetingsofBoardofDirectorsandShareholders’GeneralMeetings
Independentdirector	Themeetingsoftheboardofdirectorsrequiredtoattendduringthereportingperiod(times)	Attendanceinperson(times)	Attendancebywayoftelecommunication(times)	Entrustedpresence(times)	Absence(times)	Nonattendanceinpersonfortwoconsecutivetimes	Attendanceinshareholders’generalmeeting
XUHuaibin	13	2	11	0	0	No	2
LINYifei	13	2	11	0	0	No	2
ZHANGYing	13	2	11	0	0	No	2

Explanationsondirectorswhodonotattendin-persontwoboardmeetingsinarow.N/A

2.Detailsonindependentdirectorsobjectingtorelevantevents

Didindependentdirectorsobjecttorelevantevents?

□Yes√NoDuringthereportingperiod,noindependentdirectorsobjectedtorelevanteventsoftheCompany.

3.OtherdetailsabouttheperformanceofindependentdirectorsWasadvicetotheCompanyfromindependentdirectorsadopted?

√Yes□NoExplanationsofadviceofindependentdirectorsfortheCompanybeingadoptedDuringthereportingperiod,theindependentdirectorsoftheCompanyseriouslyandfullyconductedtheirduediligenceandactivelyperformedtheirdutiesbasedonthestandpointofindependentjudgment,inamannerresponsibletotheCompany,allshareholdersandinvestorsandinlightoftheprincipleofseekingtruthfromfacts,andsuccessivelyexpressedindependentopinionsonthefollowing28significantmatters:

1.IndependentOptionsonGrantofStockOptionstoReservedGranteesof2019StockOptionIncentivePlanofLuxsharePrecision

IndustryCo.,Ltd.(changeofname);

2.IndependentOpinionson2019InternalControlSelf-EvaluationReportoftheCompany;

3.IndependentOpinionsonRenewalofAppointmentofAccountingFirm;

4.IndependentOpinionsConcerningtheSpecialExplanationsonAppropriationofFundsbytheRelatedPartiesoftheCompanyandProvisionofGuarantees;

5.IndependentOpinionsConcerningtheSpecialReportontheDepositandActualUseoftheFundRaisedbytheCompany;

6.IndependentOpinionsonRelatedPartyTransactionsIncurredbytheCompanyin2019

7.IndependentOpinionson2019ProfitDistributionPlanoftheCompany;

8.IndependentOpinionsontheApplicationbytheCompanyforaComprehensiveCreditLinetotheBank;

9.IndependentOpinionsontheOfferbytheCompanyofGuaranteestoWholly-ownedSubsidiaries;

10.IndependentOpinionsontheConductofForeignExchangeDerivativesTradingBusiness;

11.IndependentOpinionsonthePurchaseofWealthManagementProductswithIdleSelf-ownedFunds;

12.IndependentOpinionsontheApplicationforIssuanceofUltra-short-termFinancingBondsandMedium-termNotes;

13.IndependentOpinionsontheForecastsofRoutineRelatedPartyTransactionsin2020;

14.IndependentOpinionsonChangesinAccountingPolicies;

15.IndependentOpinionsontheApplicationforaComprehensiveCreditLinetotheBank;

16.IndependentOpinionsontheAdjustmenttoExercisePricesandQuantityof2018and2019StockOptionIncentivePlansandtheCancellationofSomeStockOptions;

17.IndependentOpinionsontheAchievementofVestingConditionsfortheFirstVestingPeriodGrantedunder2019StockOptionIncentivePlan;

18.IndependentOpinionsonExtendingtheValidTermoftheResolutionsofShareholders’GeneralMeetinginrespectofPublicIssuanceofConvertibleCorporateBondsandValidTermofAuthorization;

19.IndependentOpinionsonSigningofAcquisitionFrameworkAgreementandRelatedPartyTransactions;

20.IndependentOpinionsConcerningtheSpecialExplanationsonAppropriationofFundsbytheControllingShareholdersandOtherRelatedPartiesoftheCompanyandProvisionofGuaranteesbytheCompany;

21.IndependentOpinionsontheApplicationforaComprehensiveCreditLinetotheBank;

22.IndependentOpinionsontheOfferofGuaranteestoWholly-ownedSubsidiaries;

23.IndependentOpinionsConcerningtheProposalonFurtherClarifyingtheSpecificPlanforPublicIssuanceofConvertibleCorporateBondsoftheCompany;

24.IndependentOpinionsConcerningtheProposalontheCompany’sPublicIssuanceofConvertibleCorporateBondsforListing;

25.IndependentOpinionsonSigningofAcquisitionFrameworkAgreementandRelatedPartyTransactions;

26.IndependentOpinionsConcerningtheProposalontheUseofRaisedFundstoIncreasetheCapitaloftheWholly-ownedSubsidiaryLantoElectronicLimitedandtheProposalontheUseofRaisedFundstoIncreasetheCapitalofLuxshareElectronicTechnology(Kunshan)Co.,Ltd.;

27.IndependentOpinionsontheAdjustmenttoExerciseQuantityof2018StockOptionIncentivePlanandtheCancellationofSomeStockOptions;and

28.IndependentOpinionsontheAchievementofVestingConditionsfortheSecondVestingPeriodGrantedunder2018StockOptionIncentivePlan;

TheindependentopinionsgivenbytheindependentdirectorsoftheCompanyfortheabovemattersprovidedanimportantbasisfortheboardofdirectorsoftheCompanytomakecomprehensive,objectiveandfairdecision,whichnotonlysafeguardstheoverallinterestsoftheCompany,butalsoreflectsandsafeguardsthelegitimaterightsandinterestsofsmallandmediumshareholders.VI.PerformanceofSpecialCommitteeAffiliatedtotheBoardofDirectorsDuringtheReportingPeriod

1.PerformanceofAuditCommittee

(1)Duringthereportingperiod,theAuditCommitteeactivelyperformeditsduties,monitoredtheCompany’sinternalauditsystemandimplementationthereof,reviewedthefinancialinformationandprovidedtheguidancefortheCompany’sauditdepartmentinaccordancewiththeprovisionsoftheCompaniesLaw,theCodeofCorporateGovernanceofListedCompaniesandtheWorkRulesforAuditCommitteeoftheBoardofDirectors,supervisedtheauditbytheaccountingform,andplayeditsduerole.UponcarefullycheckingtheCompany’sinternalcontrol,theappropriationoffundsbytheCompany’scontrollingshareholdersandotherrelatedpartiesandthedepositandactualuseoftheCompany’sraisedfunds,etc.,theAuditCommitteebelievesthattheinternalcontrolsystemtheCompanyhasestablishedcomplieswiththerelevantregulationsandcaneffectivelycontrolrelevantrisks,andfurtherbelievesthatthefinancialinformationcompiledbytheCompanywerepreparedinallmaterialrespectsinaccordancewiththerelevantprovisionsofregulators,andrecognizesthattheCompanystrictlyimplementedthedepositsystemofthespecialaccountforraisedfunds,andeffectivelyexecutedtheescrowagreementoftheraisedfunds.

(2)AuditCommittee’sSummaryontheAuditoftheCompanybyBDOChinaShuLunPanCertifiedPublicAccountantsLLPin2020

WhenprovidingtheauditservicefortheCompanyin2020,BDOChinaShuLunPanCertifiedPublicAccountantsLLPfollowedtheindependent,objectiveandfairprofessionalstandards,andwascompetentformakinganobjectiveandfairevaluationontheCompany’sfinancialstatementsandoperatingconditionswithsufficientaudittime,throughreasonableallocationofauditorsandinarigorousandresponsiblemanner,andsuccessfullycompletedtheauditworkentrustedbytheCompany.

(3)ResponsibilitiesoftheAuditCommitteeinAuditof2020AnnualReport

Intheprocessoftheauditof2020FinancialReport,theAuditCommitteedeterminedtheauditschedulethroughnegotiatingwithBDOChinaShuLunPanCertifiedPublicAccountantsLLP,reviewedthefinancialstatementspreliminarilypreparedbytheCompanybeforetheCPAsbegantoconducttheauditandgavewrittenopinionsthereon;whenreviewingtheauditconductedbytheCPAsannually,itsupervisedtheauditprogress,maintainedthecontactandcommunicationswithauditaccountantsandexchangedopinionsontheproblemsidentifiedintheauditsoastoensuretheindependenceandon-timecompletionoftheaudit.Theaccountingfirmcompletedthefinalizedauditor’sreportontimeaccordingtotheoverallauditplanandissuedtherelevantspecialauditreport.

(4)TheAuditCommitteeplayedanactiveroleintheprocessofforeigninvestment.Duringthereportingperiod,theCompanyinvestedomaproject,andtheAuditCommitteeprovidedprofessionalopinionsfortheboardofdirectorstomakedecisionsintheearlystageoftheproject,andplayedaprominentpartinthesmoothprogressoftheprojectandthepreventionofprojectrisks.

2.PerformanceofStrategyCommittee

TheStrategyCommitteeactivelyperformeditsdutiesinaccordancewiththeprovisionsoftheCompaniesLaw,theCodeofCorporateGovernanceofListedCompanies,theDetailedWorkingRulesforStrategyCommitteeoftheBoardofDirectorsandotherrelevantregulations.Duringthereportingperiod,theStrategyCommitteeheldtherelevantmeetings,conductedanin-depthanalysisandresearchoftheindustryinwhichtheCompanyoperatesandraisedthereasonableopinionsfortheCompany’splanningondevelopmentstrategyofbusiness,R&Dandnewproducts,etc.andimplementationthereof,achievinggoodsresults.

3.PerformanceofRemunerationandAppraisalCommittee

Duringthereportingperiod,theRemunerationandAppraisalCommitteeactivelyperformeditsdutiesinaccordancewiththeprovisionsoftheCompaniesLaw,theCodeofCorporateGovernanceofListedCompanies,theArticlesofAssociation,theDetailedWorkingRulesforRemunerationandAppraisalCommitteeoftheBoardofDirectorsandotherrelevantregulations.Uponreviewingtheremunerationofdirectors,supervisorsandseniormanagementoftheCompany,theRemunerationandAppraisalCommitteebelievesthattheCompanyisgraduallyestablishingfairandeffectiveperformanceevaluationstandardsandincentiverestraintmechanismsforseniormanagement,andimplementstheremunerationsystemthatcombinesbasicmonthlysalarywiththeyear-endperformanceappraisalresultsforseniormanagement.Basedontheunderstandingandplanabove,theCompanymadeproperadjustmentstobasicmonthlysalaryofsomedirectorsandseniorofficers,reflectingandrealizingtheeffectofmotivationandjustice.Theremunerationofdirectors,supervisorsandseniormanagementoftheCompanywastrueduringthereportingperiod,whichcomplieswiththeperformanceappraisalindicatorsoftheCompany.

4.PerformanceofNominationCommittee

Duringthereportingperiod,theNominationCommitteeperformeditsdutiesinaccordancewiththeDetailedWorkingRulesforNominationCommitteeoftheBoardofDirectors,continuouslyreviewedthequalificationsofpersonnelandissuedtheauditopinionsandsuggestions.

VII.DetailsontheWorkoftheBoardofSupervisors

WherethererisksintheCompanyaccordingtothesupervisoroftheboardofsupervisorsduringthereportingperiod?

□Yes√NoTheboardofsupervisorsraisednoobjectiontomattersundersupervisionduringthereportingperiod.

VIII.AssessmentandIncentiveMechanismsforSeniorManagement

Duringthereportingperiod,theCompanyimplementedtheperformanceassessmentforitsseniormanagement,andpaidthemtheannualincomeunderthe“monthlysalary+year-endbonus”model.TheCompanyassessedtheseniormanagementattheendoftheyearbasedonthebusinessconditionsoftheCompanyandworkperformanceofindividuals,anddeterminedtheirannualincomedependingontheassessmentresults.TheCompanyformulatedasystematicandscientificassessmentandmanagementmethodtoprovideanevaluationbasisforpaymentofremunerationofdirectors,supervisorsandseniormanagement.TheRemunerationandAppraisalManagementCommitteewasresponsiblefororganizingandimplementingtheperformanceappraisal.Totheextentauthorizedbytheboardofdirectors,theRemunerationandAppraisalManagementCommitteemadetheevaluationinthelightofprinciplesoffairness,impartialityandopennessandbasedontheperformanceindicatorssetbytheCompanyandtheassessmentindicatorsorworkperformanceestablishedineachstage,andensuredthattheperformanceappraisalandevaluationresultsfullyreflectthetrueperformanceandabilityofemployeesandguaranteedthetransparencyoftheappraisal.

IX.EvaluationReportofInternalControls

1.DetailsonmaterialdeficienciesfoundintheCompany’sinternalcontrolsduringthereportingperiod

□Yes√No

2.Self-appraisalreportoninternalcontrols

DisclosuredateoftheReportonInternalControls	April21,2021
DisclosureindexoftheReportonInternalControls	LuxsharePrecisionIndustryCo.,Ltd.designatedtheinformationdisclosurewebsiteCninfo(www.cninfo.com.cn)todisclosethe2020AuthenticationReportonInternalControlsofLuxsharePrecisionIndustryCo.,Ltd..
ProportionoftotalassetsofentitiesincludedinevaluationscopetothetotalassetsintheCompany’sconsolidatedfinancialstatements	70.91%
ProportionofoperatingrevenueofentitiesincludedinevaluationscopetotheoperatingrevenueintheCompany’sconsolidatedfinancialstatements	81.85%
DeficiencyStandards
Category	FinancialReport	Non-financialReport
Qualitativecriteria	I.Signsthatinternalcontrolsofthefinancialreporthavematerialdeficienciesinclude:A.fraudonthepartofdirectors,supervisorsandseniormanagement;B.failureofmaterialdeficienciesininternalcontrolsthathavebeendiscoveredandreportedtothemanagementtobecorrectedafterareasonableperiodoftime;C.ineffectiveinternalenvironment;D.identificationbytheexternalauditorofamaterialmisstatementoffinancialreportinthecurrentperiodincircumstancesthatindicatethatthemisstatementwouldnothavebeendetectedbytheCompany’sinternalcontrol;E.materialviolationsoflawsandregulationsaremorematerial;F.exceptfor	I.Signsthatinternalcontrolsofthenonfinancialreporthavematerialdeficienciesinclude:A.seriousviolationsofimportantnationallawsandregulations;B.seriouslossofmanagementandtechnicalpersonnelinkeypositions;C.lackofsystemcontrolorfailureofsystemcontrolforimportantbusinessinvolvingtheproductionandoperationoftheCompany;D.failureoftheinternalcontrolsofinformationdisclosure,causingtheCompanytobepubliclycondemned;E.failureoftheresultsofinternalcontrolappraisal,especiallymaterialorsignificantdeficiencies,toberectified.II.Signsthat

	policy-relatedlosses,theCompanyhassufferedlossesforconsecutiveyearsanditsgo-concerningabilityischallenged;G.ineffectiveoversightofinternalcontrolsbytheCompany’smanagementandrelevantfunctionaldepartments.II.Signsthatinternalcontrolsofthefinancialreporthavesignificantdeficienciesinclude:A.failuretofollowgenerallyacceptedaccountingstandardstoselectandapplyaccountingpolicies;B.failuretoestablishanti-fraudproceduresandcontrolmeasures;C.lackofinstitutionalcontrolorfailureofthesystemforimportantbusiness;D.lackofinternalcontrolbuilding,andmanagementinsubsidiariesscattered;E.resignationbyorfrequentchangesofseniorofficers(especiallythoseinchargeofinternalcontrolbody,financeandhumanresources),orseriousemployeeturnover.III.Signsthatinternalcontrolsofthefinancialreporthavegeneraldeficienciesinclude:Controldeficienciesotherthanmaterialandsignificantdeficiencies.	internalcontrolsofthenonfinancialreporthavesignificantdeficienciesinclude:A.deficienciesintheimportantbusinessmechanismorsystem,andincompleteinternalcontrolmechanism;B.informationdisclosurenotreviewedandcontentsuntrue.III.Signsthatinternalcontrolsofthefinancialreporthavegeneraldeficienciesinclude:Controldeficienciesotherthanmaterialandsignificantdeficiencies.
Qualitativecriteria	I.Materialdeficiency:(1)Potentialmisstatementofoperatingrevenue:0.5%oftotaloperatingrevenue≤misstatement;(2)potentialmisstatementoftotalprofits:5%oftotalprofits≤misstatement;(3)potentialmisstatementoftotalassets:0.5%oftotalassets≤misstatement;(4)potentialmisstatementofowners’equity:0.5%oftotalowners’equity≤misstatement;II.Significantdeficiency:(1)Potentialmisstatementofoperatingrevenue:0.2%oftotaloperatingrevenue≤misstatement<0.5%oftotaloperatingrevenue;(2)potentialmisstatementoftotalprofits:2%oftotalprofits≤misstatement<5%oftotalprofits;(3)potentialmisstatementoftotalassets:0.2%oftotalassets≤misstatement<0.5%oftotalassets;(4)potentialmisstatementof	I.Materialdeficiency:DirectlossofpropertyamountstonotlessthanRMB12million,causingarelativelylargenativeimpactontheCompany;II.Significantdeficiency:DirectlossofpropertyamountstoRMB3million-12million,subjecttothepenaltyimposedbythenationalgovernmentdepartmentbutnotcausinganativeimpactontheCompany;III.Generaldeficiency:DirectlossofpropertyamountstonotmorethanRMB3million,subjecttothepenaltyimposedbythegovernmentdepartmentsattheprovinciallevelorbelowbutnotcausinganativeimpactontheCompany.

	owners’equity:0.2%oftotalowners’equity≤misstatement<0.5%oftotalowners’equity;III.Generaldeficiency:(1)Potentialmisstatementofoperatingrevenue:misstatement<0.2%oftotaloperatingrevenue;(2)potentialmisstatementoftotalprofits:misstatement<2%oftotalprofits;(3)potentialmisstatementoftotalassets:misstatement<0.2%oftotalassets;(4)potentialmisstatementofowners’equity:misstatement<0.2%oftotalowners’equity.
Numberofmaterialdeficienciesinthefinancialreport	0
Numberofmaterialdeficienciesinthenonfinancialreport	0
Numberofsignificantdeficienciesinthefinancialreport	0
Numberofsignificantdeficienciesinthenonfinancialreport	0

X.AuditReportorAuthenticationReportonInternalControls

AuthenticationReportonInternalControls

AuditOpinionintheAuditReportonInternalControls
TheCompanymaintainedeffectiveinternalcontrolsrelatedtofinancialstatementsinallmaterialrespectsasatDecember31,2021inaccordancewiththeBasicInternalControlNormsforEnterprisespromulgatedbytheMinistryofFinance;
ParticularsabouttheDisclosureofAuthenticationReportonInternalControls	Disclosure
DisclosuredateoftheAuthenticationReportonInternalControls	April21,2021
DisclosureindexoftheAuthenticationReportonInternalControls	TheCompanydesignatedtheinformationdisclosurewebsiteCninfo(www.cninfo.com.cn)todisclosethe2020AuthenticationReportonInternalControlsofLuxsharePrecisionIndustryCo.,Ltd..
TypeofAuthenticationOpinion	UnqualifiedOpinion
Isthereamaterialdeficiencyinthenonfinancialreport?	No

DidtheaccountingfirmissueanAuthenticationReportonInternalControlswithanon-standardopinion?

□Yes√NoIstheAuthenticationReportonInternalControlsfromtheaccountingformconsistentwiththeSelf-assessmentReportfromtheboardofdirectors?

√Yes□No

SectionXICorporateBonds

Wheretherebondspubliclyissuedandlistedonanexchange,eitheratornotatmaturity,andarenotfullypaidontheapprovalreportdateoftheannualreport?No

SectionXIIFinancialReport

I.Auditor’sReport

Auditopinion	StandardUnqualifiedOpinion
Signingdateofauditreport	April20,2021
Auditor	BDOChinaShuLunPanCertifiedPublicAccountantsLLP
Auditorreportdocumentnumber	XinKuaiShiBaoZi[2021]No.ZB10516
Nameofcertifiedpublicaccountants	LIJingandWEIGang

Auditor’sReport

I.Auditopinion

WehaveauditedthefinancialstatementsofLuxsharePrecisionIndustryCo.,Ltd.(“LuxsharePrecision”),whichcomprisetheconsolidatedandparentcompany’sbalancesheetsasatDecember31,2020,andtheconsolidatedandparentcompany’sincomestatements,theconsolidatedandparentcompany’sstatementsofcashflowandtheconsolidatedandparentcompany'sstatementsofchangesinowners’equityfortheyearthenended,andthenotestothefinancialstatements.

Inouropinion,theaccompanyingfinancialstatementsarepreparedinallmaterialrespectsinaccordancewiththeAccountingStandardsforBusinessEnterprisesandfairlypresenttheconsolidatedandparentcompany’sfinancialpositionasofDecember31,2020,andtheconsolidatedandparentcompany’soperatingresultsandcashflowsfortheyearthenended.

II.BasisforOpinion

WeconductedourauditinaccordancewiththeAuditingStandardsforCertifiedPublicAccountantsofChina.Ourresponsibilitiesunderthosestandardsarefurtherdescribedinthe“Auditor’sResponsibilitiesfortheAuditoftheFinancialStatements”sectionofourreport.WeareindependentofLuxsharePrecisionwiththeCodeofEthicsforChineseCertifiedPublicAccountants,andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththeCode.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinion.

III.CriticalAuditMatters

Criticalauditmattersarethosemattersthat,inourprofessionaljudgment,areofmostsignificanceinourauditofthefinancialstatementsforthecurrentperiod.Thesematterswereaddressedinthecontextofourauditofthefinancialstatementsasawhole,andinformingouropinionthereon,andwedonotexpressaseparateopiniononthesematters.Wedeterminethatthefollowingmattersarecriticalauditmattersthatneedtobecommunicatedintheauditreport.

CriticalAuditMatters	HowWeAddressedtheMatterinOurAudit
(I)Revenuerecognition

Fordetailsoftheaccountingpolicyforandanalysisonrevenuerecognition,pleaseseetheaccountingpoliciesdescribedintheItem(XXVI)undertheNote“III.SignificantAccountingPoliciesandAccountingEstimates”andtheItem(XXXXI)underthe“V.NotestoConsolidatedFinancialStatements”tothefinancialstatements.In2020,LuxsharePrecision’soperatingincomewasRMB92,501,259,200.00.LuxsharePrecisionhasalargenumberofcustomersathomeandabroad.Underdifferentdeliverymethods,theCompanyrecognizesrevenueuponthetransferofcontrolofarelatedproducttoacustomer.Ifacustomerisalsothesupplierofsomerawmaterials,theCompanyrecognizesthepurchaseofrawmaterialsandsalesofproductsrespectivelybasedonthetransferofinventoryrisksandrewards,productliability,creditriskbearersandbusinessnature,thatis,thesalesrevenueisrecognizedbasedonthegrossamount.TherevenueisoneoftheCompany’skeyperformanceindicatorsandthemainsourceoftheCompany’sprofits,soweidentifytherevenuefromproductsalesasthecriticalauditmatterbasedontheimportanceoftheaccountingpolicyforrevenuerecognitionandtheamountinvolved.	1.Understand,evaluateandtestthedesignofthekeyinternalcontrolsofthemanagementrelatedtorevenuerecognitionandtheoperationaleffectivenessofthosecontrols;2.Sampletheproductsalesrevenuetomaketestthereofaccordingtodifferentregionsandcustomers;checksupportingdocumentsrelatedtorevenuerecognition;3.Implementtheanalyticalproceduresonincomeandgrossprofitanddeterminewhetherthereareabnormalfluctuationsintheamountofrevenueforthecurrentperiod;4.UnderthemodesofcooperationbetweentheCompanyandcustomersandsuppliers,andevaluatetheproductliabilityshareandthetransferofcontrol;5.Evaluatetheaccuracyandcompletenessofrevenueinconjunctionwiththeconfirmationproceduresforreceivables&payablesandinventories;and6.Analyzethepost-periodrecoveryofaccountsreceivable.
(II)Provisionfordeclineinvalueofinventories
PleaseseetheaccountingpoliciesdescribedintheItem(XXI)undertheNote“III.SignificantAccountingPoliciesandAccountingEstimates”andtheItem(VII)undertheNote“V.NotestoConsolidatedFinancialStatements”tothefinancialstatements.AsatDecember31,2020,LuxsharePrecision’sinventoriesandprovisionfordeclineinvalueofinventoriespresentedinitsconsolidatedfinancialstatementswereRMB13,340,555,000.00andRMB129,545,600.00respectively.InventoriesoftheCompanyarestatedatthelowerofcostornetrealisablevalue.Forfinishedproducts,theirnetrealizablevalueisdeterminedattheestimatedsellingpriceoftheseinventorieslesstheestimatedcostsnecessarytomakethesaleandrelevanttaxes;fortheinventoriesthatneedtobeprocessed,intheordinaryproductionandoperationprocess,theirnetrealisablevalueisdeterminedattheestimatedsellingpriceoffinishedproductslesstheestimatedcostsofcompletionandtheestimatedcosts	1.Understand,evaluateandtestthedesignofthekeyinternalcontrolsofthemanagementrelatedtotheprovisionfordeclineinvalueofinventoriesandtheoperationaleffectivenessofthosecontrols;2.ObtaintheCompany’scalculationsheetoftheprovisionfordeclineinvalueofinventories,reviewthenetrealisablevalueofinventoriesandtheprovisionfordeclineinvalueofinventories,andevaluatewhetherthejudgmentmadebythemanagementindeterminingthenetrealizablevalueofinventoriesisreasonable;3.Checkthequantityandconditionsofinventories,focusoninspectingthelong-terminventories,andanalyzetheadequacyoftheprovisionfordeclineinvalueofinventoriesifanyindicationexiststhatsuchinventoriesmaybeimpaired,inconjunctionwithroll-forwardprocedures;and4.Checkthecurrentchangesoftheprovisionfordeclineinvalueofinventoriesmadeinpreviousyearsandanalyzetherationalityofthechangesinthe

necessarytomakethesaleandrelevanttaxes.Thedeterminationofthenetrealisablevalueofinventoriesinvolvesthemanagement’suseofsignificantaccountingestimatesandjudgments,andtheprovisionfordeclineinvalueofinventoriesisofsignificancetotheconsolidatedfinancialstatements,soweidentifytheprovisionfordeclineinvalueofinventoriesasthecriticalauditmatter.

provisionfordeclineinvalueofinventories.

IV.OtherInformation

ThemanagementofLuxsharePrecision(“management”)isresponsibleforotherinformation.Otherinformationcomprisestheinformationincludedinthe2020AnnualReportofLuxsharePrecision,butdoesnotincludethefinancialstatementsandourauditor'sreportthereon.

Ouropiniononthefinancialstatementsdoesnotcovertheotherinformationandwedonotexpressanyformofassuranceconclusionthereon.

Inconnectionwithourauditofthefinancialstatements,ourresponsibilityistoreadotherinformationand,indoingso,considerwhetherotherinformationismateriallyinconsistentwiththefinancialstatementsorourknowledgeobtainedintheauditorotherwiseappearstobemateriallymisstated.

If,basedontheworkwehaveperformed,weconcludethatthereisanymaterialmisstatementofotherinformation,wearerequiredtoreportthatfact.Wehavenothingtoreportinthisregard.V.ResponsibilitiesoftheManagementandThoseChargedwithGovernancefortheFinancialStatements

ThemanagementisresponsibleforthepreparationandfairpresentationofthefinancialstatementsinaccordancewiththeAccountingStandardsforBusinessEnterprises,anddesigning,implementingandmaintaininginternalcontrolthatisnecessarytoenablethefinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.

Inpreparingthefinancialstatements,themanagementisresponsibleforassessingLuxsharePrecision’sabilitytocontinueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasisofaccountingunlessthemanagementeitherintendstoliquidateLuxsharePrecisionortoceaseoperations,orhavenorealisticalternativebuttodoso.

ThosechargedwithgovernanceofLuxsharePrecision(hereinafterreferredtoas“thosechargedwithgovernance”)areresponsibleforoverseeingLuxsharePrecision’sfinancialreportingprocess.

VI.Auditor’sResponsibilitiesfortheAuditoftheFinancialStatements

Ourobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor’sreportthatincludesouropinionsolelytoyou.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewithChinaStandardsonAuditingwillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencethe

economicdecisionsofuserstakenonthebasisofthesefinancialstatements.

AspartofanauditinaccordancewithChinaStandardsonAuditing,weexerciseprofessionaljudgmentandmaintainprofessionalskepticismthroughouttheaudit.Wealso:

(1)Identifyandassesstherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror,designandperformauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientandappropriatetoprovideabasisforouropinion.Theriskofnotdetectingamaterialmisstatementresultingfromfraudishigherthanthatresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternalcontrol;

(2)Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposetoexpressopinionsontheeffectivenessofinternalcontrol.

(3)Evaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesandrelateddisclosuresmadebythemanagement.

(4)Concludeontheappropriatenessofthemanagement’suseofthegoingconcernbasisofaccounting,andmeanwhile,basedontheauditevidenceobtained,onwhetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubtonLuxsharePrecision’sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredtodrawattentioninourauditor’sreporttotherelateddisclosuresinthefinancialstatementsor,ifsuchdisclosuresareinadequate,tomodifyouropinion.Ourconclusionsarebasedontheauditevidenceobtaineduptothedateofourauditor’sreport.However,futureeventsorconditionsmaycauseLuxsharePrecisiontoceasetocontinueasagoingconcern.

(5)Evaluatetheoverallpresentation(includingdisclosure),structureandcontentofthefinancialstatementsandwhetherthefinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation;

(6)ObtainsufficientandappropriateauditevidenceregardingthefinancialinformationoftheentitiesorbusinessactivitieswithinLuxsharePrecisiontoexpressanopiniononthefinancialstatements.Weareresponsibleforthedirection,supervisionandperformanceofthegroupaudit.Weremainsolelyresponsibleforourauditopinion.

Wecommunicatewiththosechargedwithgovernanceregarding,amongothermatters,theplannedscopeandtimingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringouraudit.

Wealsoprovidethosechargedwithgovernancewithastatementthatwehavecompliedwithrelevantethicalrequirementsregardingindependence,andcommunicatewiththemallrelationshipsandothermattersthatmayreasonablybethoughttobearonourindependence,andwhereapplicable,relatedsafeguards.

Fromthematterscommunicatedwiththosechargedwithgovernance,wedeterminethosemattersthatwereofmostsignificanceintheauditofthefinancialstatementsforthecurrentperiodandarethereforecriticalauditmatters.Wedescribethesemattersinourauditreportunlesslawsorregulationsprecludepublicdisclosureofthematterorwhen,in

extremelyrarecircumstances,wedeterminethatamattershouldnotbecommunicatedinourreportbecausetheadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication.II.FinancialStatements

StatementsinnotestothefinancialstatementsaredominatedinRMB.

1.Consolidatedbalancesheet

Preparedby:LuxsharePrecisionIndustryCo.,Ltd.

December31,2020

In:RMB

Item	December31,2020	December31,2019
CurrentAssets:
Cashandbankbalances	10,528,245,765.93	6,180,466,259.01
Balanceswithclearingagencies
Placementswithbanksandotherfinancialinstitutions
Held-for-tradingfinancialassets	3,160,064,470.41	1,524,366,132.75
Derivativefinancialassets
Notesreceivable	261,208,601.50	66,873,926.97
Accountsreceivable	13,839,155,340.47	13,243,625,572.22
Receivablefinancing
Prepayments	183,886,937.70	212,018,611.91
Premiumsreceivable
Amountsreceivableunderreinsurancecontracts
Reinsurer’sshareofinsurancecontractreserves
Otherreceivables	407,990,780.79	338,237,923.96
Including:Interestreceivable
Dividendsreceivable
Financialassetspurchasedunderresaleagreements
Inventories	13,211,009,381.15	7,700,857,888.16
Contractassets
Held-for-saleassets
Non-currentassetsduewithinone

year
Othercurrentassets	1,804,485,645.49	1,484,451,151.73
Totalcurrentassets	43,396,046,923.44	30,750,897,466.71
Non-currentAssets:
Loansandadvancestocustomers
Debtinvestments
Otherdebtinvestments
Long-termreceivables
Long-termequityinvestments	1,208,540,333.29	303,050,580.10
Otherinvestmentsinequityinstruments	138,074,571.56	193,950,220.77
Othernon-currentfinancialassets
Investmentproperties	47,592,110.24	52,656,477.74
Fixedassets	19,761,012,854.95	13,707,298,535.36
Constructioninprogress	1,596,064,894.58	865,549,438.56
Bearerbiologicalassets
Oilandgasassets
Useofrightassets
Intangibleassets	1,265,161,209.65	1,047,725,845.53
Developmentexpenditure
Goodwill	533,139,532.25	532,697,936.32
Long-termprepaidexpenses	488,087,044.97	352,042,451.40
Deferredincometaxassets	355,834,434.21	139,475,190.37
Othernon-currentAssets	1,223,199,642.61	1,432,566,528.37
Totalnon-currentassets	26,616,706,628.31	18,627,013,204.52
Totalassets	70,012,753,551.75	49,377,910,671.23
Currentliabilities:
Short-termborrowings	7,577,068,798.49	4,166,302,223.17
Loansfromthecentralbank
Takingfrombanksandotherfinancialinstitutions
Held-for-tradingfinancialliabilities		1,001,553.00
Derivativefinancialliabilities
Notespayable	128,572,111.54	206,496,660.20

Accountspayable	23,051,557,603.83	17,268,223,180.16
Receiptsinadvance		101,609,379.21
Contractliabilities	152,512,971.36
Financialassetssoldunderrepurchaseagreements
Customerdepositsanddepositsfrombanksandotherfinancialinstitutions
Fundsfromsecuritiestradingagency
Fundsfromunderwritingsecuritiesagency
Employeebenefitspayable	1,397,632,139.23	1,423,417,352.66
Taxespayable	237,421,491.63	327,633,322.68
Otherpayables	146,162,097.14	352,390,271.77
Including:Interestpayable		6,097,484.73
Dividendspayable
Feesandcommissionspayable
Amountspayableunderreinsurancecontracts
Held-for-saleliabilities
Non-currentliabilitiesduewithinoneyears	278,527,714.63	366,537,115.41
Othercurrentliabilities	623,257,555.89	646,115,152.49
Totalcurrentliabilities	33,592,712,483.74	24,859,726,210.75
Non-currentliabilities:
Insurancecontractreserves
Long-termborrowings	1,495,199,238.41	1,562,908,824.30
Bondspayable	2,475,423,249.98
Including:Preferredshares
Perpetualbonds
Leaseliabilities
Long-termpayables
Long-termemployeebenefitspayable
Provisions	1,360,598.63	1,317,263.45

Deferredincome	425,345,982.64	256,059,554.91
Deferredincometaxliabilities	966,092,212.95	598,184,393.00
Othernon-currentliabilities	150,019,923.33	350,011,130.10
TotalNon-currentLiabilities	5,513,441,205.94	2,768,481,165.76
Totalliabilities	39,106,153,689.68	27,628,207,376.51
Owner’sequity:
Sharecapital	6,999,768,186.00	5,349,001,738.00
Otherequityinstruments	527,449,226.56
Including:Preferredshares
Perpetualbonds
Capitalreserve	1,890,099,569.60	2,654,692,874.21
Less:Treasuryshares
Othercomprehensiveincome	-44,717,803.06	165,602,152.74
Specialreserve
Surplusreserve	733,067,797.73	362,335,031.18
Generalriskreserve
Unappropriatedprofit	17,996,149,257.73	11,764,987,172.39
Totalowners’equityattributabletoequityholdersoftheparentcompany	28,101,816,234.56	20,296,618,968.52
Minorityinterests	2,804,783,627.51	1,453,084,326.20
Totalowners’equity	30,906,599,862.07	21,749,703,294.72
Totalliabilitiesandowners’equity	70,012,753,551.75	49,377,910,671.23

Legalrepresentative:WANGLaichunChieffinancialofficer:WUTiansongHeadofaccountingdepartment:XIAONa

2.Balancesheetoftheparentcompany

In:RMB

Item	December31,2020	December31,2019
CurrentAssets:
Cashandbankbalances	1,890,655,455.45	1,261,246,519.90
Held-for-tradingfinancialassets	2,238,600,282.87	564,979,683.89
Derivativefinancialassets
Notesreceivable	147,912,632.85	7,452,736.02
Accountsreceivable	6,923,152,599.31	1,561,792,817.49

Receivablefinancing
Prepayments	295,993,095.73	41,033,974.02
Otherreceivables	554,707,729.13	524,425,779.85
Including:Interestreceivable
Dividendsreceivable	11,543,626.19
Inventories	151,961,355.37	254,966,939.98
Contractassets
Held-for-saleassets
Non-currentassetsduewithinoneyear
Othercurrentassets	143,001,991.83	59,577,562.10
Totalcurrentassets	12,345,985,142.54	4,275,476,013.25
Non-currentAssets:
Debtinvestments
Otherdebtinvestments
Long-termreceivables
Long-termequityinvestments	13,603,581,726.93	10,169,630,940.26
Otherinvestmentsinequityinstruments	704,349,663.13	190,275,176.76
Othernon-currentfinancialassets
Investmentproperties
Fixedassets	142,429,101.80	96,298,416.94
Constructioninprogress	5,938,197.42	2,779,186.32
Bearerbiologicalassets
Oilandgasassets
Useofrightassets
Intangibleassets	52,410,346.09	24,590,128.29
Developmentexpenditure
Goodwill	53,174,339.31	53,174,339.31
Long-termprepaidexpenses	727,403.48	1,818,508.31
Deferredincometaxassets	7,715,791.60	13,804,913.52
Othernon-currentAssets	164,700.00	6,162,851.80
Totalnon-currentassets	14,570,491,269.76	10,558,534,461.51
Totalassets	26,916,476,412.30	14,834,010,474.76
Currentliabilities:

Short-termborrowings	1,038,298,216.05	82,450,000.00
Held-for-tradingfinancialliabilities
Derivativefinancialliabilities
Notespayable	918,494,979.38	1,210,846,167.41
Accountspayable	6,005,518,269.37	1,190,614,614.64
Receiptsinadvance		19,692,593.36
Contractliabilities	28,872,712.52
Employeebenefitspayable	10,262,304.62	46,817,340.23
Taxespayable	21,244,602.02	15,259,960.69
Otherpayables	1,565,708.61	509,173,095.52
Including:Interestpayable
Dividendspayable
Held-for-saleliabilities
Non-currentliabilitiesduewithinoneyears	20,029,777.78
Othercurrentliabilities	512,468,730.41	500,000,000.00
Totalcurrentliabilities	8,556,755,300.76	3,574,853,771.85
Non-currentliabilities:
Long-termborrowings	180,268,000.00
Bondspayable	2,475,423,249.98
Including:Preferredshares
Perpetualbonds
Leaseliabilities
Long-termpayables
Long-termemployeebenefitspayable
Provisions
Deferredincome	8,397,770.66	10,941,542.77
Deferredtaxliabilities	19,714,831.53	22,367,576.60
Othernon-currentliabilities
TotalNon-currentLiabilities	2,683,803,852.17	33,309,119.37
Totalliabilities	11,240,559,152.93	3,608,162,891.22
Owner’sequity:
Sharecapital	6,999,768,186.00	5,349,001,738.00

Otherequityinstruments	527,449,226.56
Including:Preferredshares
Perpetualbonds
Capitalreserve	2,303,197,437.38	3,070,397,725.31
Less:Treasuryshares
Othercomprehensiveincome	80,735,015.01	125,608,900.24
Specialreserve
Surplusreserve	733,067,797.73	362,335,031.18
Unappropriatedprofit	5,031,699,596.69	2,318,504,188.81
Totalowners’equity	15,675,917,259.37	11,225,847,583.54
Totalliabilitiesandowners’Equity	26,916,476,412.30	14,834,010,474.76

3.Consolidatedincomestatement

In:RMB

Item	2020	2019
I.Totaloperatingincome	92,501,259,211.54	62,516,314,588.42
Including:Operatingincome	92,501,259,211.54	62,516,314,588.42
Interestincome
Premiumsearned
Feeandcommissionincome
II.Totaloperatingcosts	85,611,417,151.82	57,100,176,904.83
Including:Operatingcosts	75,770,007,049.58	50,067,829,953.96
Interestexpenses
Feeandcommissionexpenses
Surrenders
Claimsandpolicyholderbenefits(netofmountsrecoverablefromreinsurers)
Changesininsurancecontractreserves(netofreinsurers’share)
Insurancepolicyholderdividends
Expensesforreinsuranceaccepted

Taxesandlevies	250,775,738.81	303,192,959.52
Sellingexpenses	477,047,875.58	498,274,838.05
Generalexpenses	2,463,953,208.63	1,524,835,061.38
R&Dexpenses	5,744,805,136.33	4,375,970,646.47
Financialexpenses	904,828,142.89	330,073,445.45
Including:Interestexpenses	394,589,818.16	364,595,633.11
Interestincome	144,116,091.77	100,065,571.29
Add:Otherincome	450,748,795.89	232,311,428.35
Investmentincome(Lossisindicatedby“-”)	648,357,066.36	172,816,640.61
Including:Incomefrominvestmentsinassociatesandjointventures	24,799,841.42	-36,548,318.18
Incomefromderecognitionoffinancialassetsmeasuredatamortizedcost
Foreignexchangegains(Lossisindicatedby“-”)
Netexposurehedgingincome(Lossisindicatedby“-”)
Incomefromchangesinfairvalue(Lossisindicatedby“-”)	329,044,852.43	801,205.01
Impairmentlossesofcredit(Lossisindicatedby“-”)	-8,590,000.67	-6,452,972.96
Impairmentlossesofassets(Lossisindicatedby“-”)	-139,288,911.05	-80,643,093.84
Incomefromdisposalofassets(Lossisindicatedby“-”)	-2,309,694.02	9,716,496.38
III.Operatingprofit(Lossisindicatedby“-”)	8,167,804,168.66	5,744,687,387.14
Add:Non-operatingincome	21,932,288.24	18,115,772.58
Less:Non-operatingexpenses	53,956,792.78	127,624,357.87
IV.Totalprofit(Totallossesareindicatedby“-”)	8,135,779,664.12	5,635,178,801.85
Less:Incometaxexpenses	644,764,928.70	707,753,874.65
V.Netprofit(Netlossisindicatedby“-”)	7,491,014,735.42	4,927,424,927.20

(I)Categorizedbythenatureofcontinuingoperation
1.Netprofitfromcontinuingoperations(Netlossisindicatedby“-”)	7,491,014,735.42	4,927,424,927.20
2.Netprofitfromdiscontinuedoperations(Netlossisindicatedby“-”)
(II)Categorizedbyownership
1.Netprofitattributabletoshareholdersoftheparentcompany	7,225,462,752.58	4,713,820,644.90
2.Non-controllinginterests	265,551,982.84	213,604,282.30
VI.Othercomprehensiveincome,netoftax	-214,366,575.46	20,334,650.77
Othercomprehensiveincomeattributabletoownersoftheparentcompany,netoftax	-210,319,955.80	4,510,959.61
(I)Othercomprehensiveincomethatcannotbesubsequentlyreclassifiedtoprofitorloss	-44,824,020.81	21,551,080.01
1.Changesfromre-measurementofdefinedbenefitplans
2.Othercomprehensiveincomethatcannotbereclassifiedtoprofitorlossundertheequitymethod
3.Changesinfairvalueofotherinvestmentsinequityinstruments	-44,824,020.81	21,551,080.01
4.Changesinfairvalueofenterprises’owncreditrisks
5.Others
(II)Othercomprehensiveincomethatwillbereclassifiedtoprofitorloss	-165,495,934.99	-17,040,120.40
1.Othercomprehensiveincomethatwillbereclassifiedtoprofitorlossundertheequitymethod
2.Changesinfairvalueofotherdebtinvestments
3.Amountsoffinancialassetsreclassifiedintoothercomprehensiveincome
4.Provisionforcredit

impairmentofotherdebtinvestments
5.Reserveforcashflowhedges
6.Translationdifferencesoffinancialstatementsdenominatedinforeigncurrencies	-165,495,934.99	-17,040,120.40
7.Others
Othercomprehensiveincomeattributabletominorityinterests,netoftax	-4,046,619.66	15,823,691.16
VII.Totalcomprehensiveincome	7,276,648,159.96	4,947,759,577.97
Totalcomprehensiveincomeattributabletoownersoftheparentcompany	7,015,142,796.78	4,718,331,604.51
Totalcomprehensiveincomeattributabletominorityinterests	261,505,363.18	229,427,973.46
VIII.Earningspershare:
(I)Basicearningspershare	1.03	0.68
(II)Dilutedearningspershare	1.01	0.67

Foranybusinesscombinationinvolvingenterprisesundercommoncontrolforthecurrentperiod,thenetprofitsoftheabsorbedpartypriortothecombinationareRMBinthecurrentperiod,andwereRMBinpriorperiod.Legalrepresentative:WANGLaichunChieffinancialofficer:WUTiansongHeadofaccountingdepartment:XIAONa

4.Incomestatementoftheparentcompany

In:RMB

Item	2020	2019
I.Totaloperatingincome	11,565,103,529.27	4,373,597,656.26
Less:Operatingcosts	10,781,197,082.67	3,954,659,940.48
Taxesandlevies	18,261,507.97	9,675,842.17
Sellingexpenses	35,063,571.34	56,805,073.90
Generalexpenses	56,228,389.80	159,777,425.20
R&Dexpenses	378,120,159.26	151,259,405.54
Financialexpenses	96,281,059.07	19,712,919.87
Including:Interestexpenses	75,305,134.45	14,615,914.41

Interestincome	16,540,879.08	1,915,078.95
Add:Otherincome	79,872,863.79	24,792,367.07
Investmentincome(Lossisindicatedby“-”)	3,409,929,279.99	690,975,860.47
Including:Incomefrominvestmentsinassociatesandjointventures	452,498.12	-59,092,453.94
Incomefromderecognitionoffinancialassetsmeasuredatamortizedcost(Lossisindicatedby“-”)
Netexposurehedgingincome(Lossisindicatedby“-”)
Incomefromchangesinfairvalue(Lossisindicatedby“-”)	35,468,629.87	504,180.50
Impairmentlossesofcredit(Lossisindicatedby“-”)	-1,815,106.23	-1,614,173.72
Impairmentlossesofassets(Lossisindicatedby“-”)	146,637.49	-1,839,050.41
Incomefromdisposalofassets(Lossisindicatedby“-”)	93,414.42	44,093.10
II.Operatingprofit(Lossisindicatedby“-”)	3,723,647,478.49	734,570,326.11
Add:Non-operatingincome	36,922.70	67,107.37
Less:Non-operatingexpenses	2,523,203.41	9,934,373.14
III.Totalprofit(Totallossesareindicatedby“-”)	3,721,161,197.78	724,703,060.34
Less:Incometaxexpenses	13,833,532.26	-9,759,786.32
Ⅳ.Netprofit（(Netlossisindicatedby“-”)	3,707,327,665.52	734,462,846.66
(I)Netprofitfromcontinuingoperation(Netlossisindicatedby“-”)	3,707,327,665.52	734,462,846.66
(II)Netprofitfromdiscontinuedoperations(Netlossisindicatedby“-”)
V.Othercomprehensiveincome,netoftax	-44,873,885.23	21,137,812.87
(I)Othercomprehensiveincomethatcannotbesubsequentlyreclassified	-44,873,885.23	21,137,812.87

toprofitorloss
1.Changesfromre-measurementofdefinedbenefitplans
2.Othercomprehensiveincomethatcannotbereclassifiedtoprofitorlossundertheequitymethod
3.Changesinfairvalueofotherinvestmentsinequityinstruments	-44,873,885.23	21,137,812.87
4.Changesinfairvalueofenterprises’owncreditrisks
5.Others
(II)Othercomprehensiveincomethatwillbereclassifiedtoprofitorloss
1.Othercomprehensiveincomethatwillbereclassifiedtoprofitorlossundertheequitymethod
2.Changesinfairvalueofotherdebtinvestments
3.Amountsoffinancialassetsreclassifiedintoothercomprehensiveincome
4.Provisionforcreditimpairmentofotherdebtinvestments
5.Reserveforcashflowhedges
6.Translationdifferencesoffinancialstatementsdenominatedinforeigncurrencies
7.Others
VI.Totalcomprehensiveincome	3,662,453,780.29	755,600,659.53
VII.Earningspershare:
(I)Basicearningspershare
(II)Dilutedearningspershare

5.Consolidatedstatementsofcashflows

In:RMB

Item

2020

2019

I.CashFlowsfromOperatingActivities:
Cashreceiptsfromthesalesofgoodsandtherenderingofservices;	97,065,870,437.67	58,859,762,272.15
Netincreaseincustomerdepositsanddepositsfrombanksandotherfinancialinstitutions
Netincreaseinloansfromthecentralbank
Netincreaseintakingfromotherfinancialinstitutions
Cashpaymentsforclaimsandpolicyholders’benefitsunderdirectinsurancecontracts
Netcashreceiptsfromreinsurancebusiness
Netcashreceiptsfrompolicyholders’depositsandinvestmentcontractliabilities
Cashreceiptsfrominterest,feesandcommissions
Netincreaseintakingfrombanksandotherfinancialinstitutions
Netincreaseinfinancialassetssoldunderrepurchasearrangements
Netcashreceivedfromsecuritiestradingagency
Receiptsoftaxrefunds	3,100,093,905.89	2,611,921,580.42
Othercashreceiptsrelatingtooperatingactivities	1,178,580,038.87	728,201,545.63
Sub-totalofcashinflowsfromoperatingactivities	101,344,544,382.43	62,199,885,398.20
Cashpaymentsforgoodspurchasedandservicesreceived	78,908,490,079.24	42,488,386,509.36
Netincreaseinloansandadvancestocustomers
Netincreaseinbalancewiththecentralbankandduefrombanksandotherfinancialinstitution

Cashpaymentsforclaimsandpolicyholders’benefitsunderdirectinsurancecontracts
Netincreaseinplacementswithbanksandotherfinancialinstitutions
Cashpaymentsforinterest,feesandcommissions
Cashpaymentsforinsurancepolicyholderdividends
Cashpaymentstoandonbehalfofemployees	11,976,189,826.48	8,201,521,329.49
Paymentsofvarioustypesoftaxes	1,462,211,616.65	1,294,566,177.19
Othercashpaymentsrelatingtooperatingactivities	2,124,441,374.01	2,749,423,207.83
Sub-totalofcashoutflowsfromoperatingactivities	94,471,332,896.38	54,733,897,223.87
Netcashflowfromoperatingactivities	6,873,211,486.05	7,465,988,174.33
II.CashFlowsfromInvestingActivities:
Cashreceiptsfromdisposalsandrecoveryofinvestments	55,479,505,473.33	80,206,416,647.61
Cashreceiptsfrominvestmentincome	487,104,548.83	88,715,608.23
Netcashreceiptsfromdisposalsoffixedassets,intangibleassetsandotherlong-termassets	105,209,975.47	140,428,894.26
Netcashreceiptsfromdisposalsofsubsidiariesandotherbusinessentities	62,681,623.24	7,239,362.24
Othercashreceiptsrelatingtoinvestingactivities
Sub-totalofcashinflowsfrominvestingactivities	56,134,501,620.87	80,442,800,512.34
Cashpaymentstoacquireorconstructfixedassets,intangibleassetsandotherlong-termassets	7,502,140,356.20	6,362,579,306.81
Cashpaymentstoacquireinvestments	57,696,197,909.00	80,341,719,000.94
Netincreaseinpledgedloansreceivables

Netcashpaymentsforacquisitionsofsubsidiariesandotherbusinessunits;	83,897,533.75	36,117,688.79
Othercashpaymentsrelatingtoinvestingactivities.
Sub-totalofcashoutflowsfrominvestingactivities	65,282,235,798.95	86,740,415,996.54
Netcashflowfrominvestingactivities	-9,147,734,178.08	-6,297,615,484.20
III.CashFlowsfromFinancingActivities:
Cashreceiptsfromcapitalcontributions	1,610,278,326.76
Including:Cashreceiptsfromcapitalcontributionsfromminorityownersofsubsidiaries	1,091,126,000.00
Cashreceiptsfromborrowings	25,747,304,566.98	22,031,435,875.30
Othercashreceiptsrelatingtofinancingactivities	4,485,600,000.00	500,000,000.00
Sub-totalofcashinflowsfromfinancingactivities	31,843,182,893.74	22,531,435,875.30
Cashrepaymentsofborrowings	23,976,420,698.67	20,910,702,273.13
Cashpaymentsfordistributionofdividendsorprofitsorsettlementofinterestexpenses	1,065,757,282.54	536,308,613.00
Including:Paymentsfordistributionofdividendsorprofitstominorityownersofsubsidiaries	12,150,000.00
Othercashpaymentsrelatingtofinancingactivities	14,511,270.50	12,066,213.47
Sub-totalofcashoutflowsfromfinancingactivities	25,056,689,251.71	21,459,077,099.60
Netcashflowfromfinancingactivities	6,786,493,642.03	1,072,358,775.70
IV.EffectofForeignExchangeRateChangesonCashandCashEquivalents	-194,506,422.92	97,088,350.10
V.NetIncreaseinCashandCashEquivalents	4,317,464,527.08	2,337,819,815.93
Add:Openingbalanceofcashandcashequivalents	6,147,339,924.26	3,809,520,108.33
VI.ClosingBalanceofCashandCash	10,464,804,451.34	6,147,339,924.26

6.Statementofcashflowsoftheparentcompany

In:RMB

EquivalentsItem

Item	2020	2019
I.CashFlowsfromOperatingActivities:
Cashreceiptsfromthesalesofgoodsandtherenderingofservices;	7,317,370,785.47	4,494,254,381.92
Receiptsoftaxrefunds	138,658,293.85	138,903,885.43
Othercashreceiptsrelatingtooperatingactivities	1,643,814,995.33	559,380,122.12
Sub-totalofcashinflowsfromoperatingactivities	9,099,844,074.65	5,192,538,389.47
Cashpaymentsforgoodspurchasedandservicesreceived	8,120,664,222.33	3,397,695,203.62
Cashpaymentstoandonbehalfofemployees	135,105,794.86	111,095,822.27
Paymentsofvarioustypesoftaxes	105,195,119.59	87,707,937.86
Othercashpaymentsrelatingtooperatingactivities	1,963,131,078.26	434,734,580.72
Sub-totalofcashoutflowsfromoperatingactivities	10,324,096,215.04	4,031,233,544.47
Netcashflowfromoperatingactivities	-1,224,252,140.39	1,161,304,845.00
II.CashFlowsfromInvestingActivities:
Cashreceiptsfromdisposalsandrecoveryofinvestments	13,929,048,580.41	12,486,000,000.00
Cashreceiptsfrominvestmentincome	3,416,407,362.80	843,790,277.09
Netcashreceiptsfromdisposalsoffixedassets,intangibleassetsandotherlong-termassets	27,330,856.05	8,172,506.42
Netcashreceiptsfromdisposalsofsubsidiariesandotherbusinessentities	63,942,000.00	7,239,163.89
Othercashreceiptsrelatingtoinvestingactivities

Sub-totalofcashinflowsfrominvestingactivities	17,436,728,799.26	13,345,201,947.40
Cashpaymentstoacquireorconstructfixedassets,intangibleassetsandotherlong-termassets	125,735,695.16	41,821,786.87
Cashpaymentstoacquireinvestments	19,459,676,016.32	13,325,246,977.28
Netcashpaymentsforacquisitionsofsubsidiariesandotherbusinessunits;
Othercashpaymentsrelatingtoinvestingactivities.
Sub-totalofcashoutflowsfrominvestingactivities	19,585,411,711.48	13,367,068,764.15
Netcashflowfrominvestingactivities	-2,148,682,912.22	-21,866,816.75
III.CashFlowsfromFinancingActivities:
Cashreceiptsfromcapitalcontributions	527,162,579.34
Cashreceiptsfromborrowings	1,543,324,080.00	96,229,200.00
Othercashreceiptsrelatingtofinancingactivities	4,485,600,000.00	500,000,000.00
Sub-totalofcashinflowsfromfinancingactivities	6,556,086,659.34	596,229,200.00
Cashrepaymentsofborrowings	1,882,450,000.00	523,510,176.00
Cashpaymentsfordistributionofdividendsorprofitsorsettlementofinterestexpenses	662,016,221.81	219,909,951.40
Othercashpaymentsrelatingtofinancingactivities	11,364,675.69	10,279,415.46
Sub-totalofcashoutflowsfromfinancingactivities	2,555,830,897.50	753,699,542.86
Netcashflowfromfinancingactivities	4,000,255,761.84	-157,470,342.86
IV.EffectofForeignExchangeRateChangesonCashandCashEquivalents	-7,911,773.68	4,522,010.88
V.NetIncreaseinCashandCashEquivalents	619,408,935.55	986,489,696.27
Add:Openingbalanceofcashandcashequivalents	1,261,246,519.90	274,756,823.63

VI.ClosingBalanceofCashandCashEquivalents

1,880,655,455.45

1,261,246,519.90

7.Consolidatedstatementofchangesinowners’equity

Amountsinthecurrentperiod

In:RMB

Item	2020
	Equityattributabletoownersoftheparentcompany													Minorityinterests	Totalowners’equity
	Sharecapital	Otherequityinstruments			Capitalreserve	Less:Treasuryshares	Othercomprehensiveincome	Specialreserve	Surplusreserve	Generalriskreserve	Unappropriatedprofit	Others	Sub-total
	Sharecapital	Preferredshares	Perpetualbonds	Others	Capitalreserve	Less:Treasuryshares	Othercomprehensiveincome	Specialreserve	Surplusreserve	Generalriskreserve	Unappropriatedprofit	Others	Sub-total
I.Closingbalanceoftheprecedingyear	5,349,001,738.00				2,654,692,874.21		165,602,152.74		362,335,031.18		11,764,987,172.39		20,296,618,968.52	1,453,084,326.20	21,749,703,294.72
Add:Changesinaccountingpolicies
Correctionsofpriorperioderrors
Businesscombinationinvolvingenterprisesundercommoncontrol
Others
II.Openingbalanceofthecurrentyear	5,349,001,738.00				2,654,692,874.21		165,602,152.74		362,335,031.18		11,764,987,172.39		20,296,618,968.52	1,453,084,326.20	21,749,703,294.72
III.Changesfortheyear	1,650,766,			527,449,22	-764,593,304		-210,319,955		370,732,766.		6,231,162,08		7,805,197,26	1,351,699,30	9,156,896,56

(Decreaseisindicatedby“-”)	448.00	6.56	.61	.80	55	5.34	6.04	1.31	7.35
(I)Totalcomprehensiveincome				-187,749,263.28		7,225,462,752.58	7,037,713,489.30	265,551,982.84	7,303,265,472.14
(II)Owners’contributionsandreductionincapital	39,223,321.00	527,449,226.56	846,949,822.39				1,413,622,369.95	1,099,647,318.47	2,513,269,688.42
1.Ordinarysharescontributedbyowners	39,223,321.00		487,939,258.34				527,162,579.34	1,091,126,000.00	1,618,288,579.34
2.Capitalcontributionfromholdersofotherequityinstruments		527,449,226.56					527,449,226.56		527,449,226.56
3.Share-basedpaymentrecognizedinowners’equity			347,403,580.73				347,403,580.73	4,517,074.25	351,920,654.98
4.Others			11,606,983.32				11,606,983.32	4,004,244.22	15,611,227.54
(III)Profitdistribution					370,732,766.55	-1,015,517,118.21	-644,784,351.66	-13,500,000.00	-658,284,351.66
1.Transfertosurplusreserve					370,732,766.55	-370,732,766.55
2.Transfertogeneralriskreserve
3.Distributionstoowners(orshareholders)						-644,615,942.06	-644,615,942.06	-13,500,000.00	-658,115,942.06
4.Others						-168,409.60	-168,409.60		-168,409.60
(IV)Transfers	1,611		-1,611,	-22,57		21,216	-1,354,		-1,354,

withinowners’equity	,543,127.00		543,127.00	0,692.52		,450.97	241.55		241.55
1.Capitalizationofcapitalreserve	1,611,543,127.00		-1,611,543,127.00
2.Capitalizationofsurplusreserve
3.Lossoffsetbysurplusreserve
4.Retainedearningscarriedforwardfromchangesindefinedbenefitplans
5.Retainedearningscarriedforwardfromothercomprehensiveincome				-22,570,692.52		21,216,450.97	-1,354,241.55		-1,354,241.55
6.Others
(V)Specialreserve
1.Transfertospecialreserveinthecurrentperiod
2.Amountutilizedinthecurrentperiod
(VI)Others
VI.Closingbalanceofthecurrentperiod	6,999,768,186.00	527,449,226.56	1,890,099,569.60	-44,717,803.06	733,067,797.73	17,996,149,257.73	28,101,816,234.56	2,804,783,627.51	30,906,599,862.07

Amountforpriorperiod

In:RMB

Item	2019
	Equityattributabletoownersoftheparentcompany													Minorityinterests	Totalowners’equity
	Sharecapital	Otherequityinstruments			Capitalreserve	Less:Treasuryshares	Othercomprehensiveincome	Specialreserve	Surplusreserve	Generalriskreserve	Unappropriatedprofit	Others	Sub-total
	Sharecapital	Preferredshares	Perpetualbonds	Others	Capitalreserve	Less:Treasuryshares	Othercomprehensiveincome	Specialreserve	Surplusreserve	Generalriskreserve	Unappropriatedprofit	Others	Sub-total
I.Closingbalanceoftheprecedingyear	4,114,616,722.00				3,595,441,323.19		163,263,253.88		288,526,845.75		7,336,096,836.36		15,497,944,981.18	1,176,891,982.34	16,674,836,963.52
Add:Changesinaccountingpolicies							-2,172,060.75		361,900.76		-5,571,942.46		-7,382,102.45	-171,957.25	-7,554,059.70
Correctionsofpriorperioderrors
Businesscombinationinvolvingenterprisesundercommoncontrol
Others
II.Openingbalanceofthecurrentyear	4,114,616,722.00				3,595,441,323.19		161,091,193.13		288,888,746.51		7,330,524,893.90		15,490,562,878.73	1,176,720,025.09	16,667,282,903.82
III.Changesfortheyear(decreaseisindicatedby“-”)	1,234,385,016.00				-940,748,448.98		4,510,959.61		73,446,284.67		4,434,462,278.49		4,806,056,089.79	276,364,301.11	5,082,420,390.90
(I)Totalcomprehensiveincome							4,510,959.61				4,713,820,644.90		4,718,331,604.51	229,427,973.46	4,947,759,577.97

(II)Owners’contributionsandreductionincapital		293,636,567.02			293,636,567.02	46,936,327.65	340,572,894.67
1.Ordinarysharescontributedbyowners
2.Capitalcontributionfromholdersofotherequityinstruments
3.Share-basedpaymentrecognizedinowners’equity		298,563,259.38			298,563,259.38	9,815,848.19	308,379,107.57
4.Others		-4,926,692.36			-4,926,692.36	37,120,479.46	32,193,787.10
(III)Profitdistribution			73,446,284.67	-279,358,366.41	-205,912,081.74		-205,912,081.74
1.Transfertosurplusreserve			73,446,284.67	-73,446,284.67
2.Transfertogeneralriskreserve
3.Distributionstoowners(orshareholders)				-205,730,836.10	-205,730,836.10		-205,730,836.10
4.Others				-181,245.64	-181,245.64		-181,245.64
(IV)Transferswithinowners’equity	1,234,385,016.00	-1,234,385,016.00
1.Capitalizationofcapitalreserve	1,234,385,016.00	-1,234,385,016.00

2.Capitalizationofsurplusreserve
3.Lossoffsetbysurplusreserve
4.Retainedearningscarriedforwardfromchangesindefinedbenefitplans
5.Retainedearningscarriedforwardfromothercomprehensiveincome
6.Others
(V)Specialreserve
1.Transfertospecialreserveinthecurrentperiod
2.Amountutilizedinthecurrentperiod
(VI)Others
IV.Closingbalanceofthecurrentperiod	5,349,001,738.00	2,654,692,874.21	165,602,152.74	362,335,031.18	11,764,987,172.39	20,296,618,968.52	1,453,084,326.20	21,749,703,294.72

8.Statementofchangesinowners’equityoftheparentcompany

Amountsinthecurrentperiod

In:RMB

Item	2020
Item	Share	Otherequity	Capital	Less:	Other	Special	Surplus	Unappr	Others	Total

	capital	instruments			reserve	Treasuryshares	comprehensiveincome	reserve	reserve	opriatedprofit	owners’equity
	capital	Preferredshares	Perpetualbonds	Others	reserve	Treasuryshares	comprehensiveincome	reserve	reserve	opriatedprofit	owners’equity
I.Closingbalanceoftheprecedingyear	5,349,001,738.00				3,070,397,725.31		125,608,900.24		362,335,031.18	2,318,504,188.81	11,225,847,583.54
Add:Changesinaccountingpolicies
Correctionsofpriorperioderrors
Others
II.Openingbalanceofthecurrentyear	5,349,001,738.00				3,070,397,725.31		125,608,900.24		362,335,031.18	2,318,504,188.81	11,225,847,583.54
III.Changesfortheyear(Decreaseisindicatedby“-”)	1,650,766,448.00			527,449,226.56	-767,200,287.93		-44,873,885.23		370,732,766.55	2,713,195,407.88	4,450,069,675.83
(I)Totalcomprehensiveincome							-22,303,192.71			3,707,327,665.52	3,685,024,472.81
(II)Owners’contributionsandreductionincapital	39,223,321.00			527,449,226.56	844,342,839.07						1,411,015,386.63
1.Ordinarysharescontributedbyowners	39,223,321.00				487,939,258.34						527,162,579.34
2.Capitalcontributionfromholdersofotherequityinstruments				527,449,226.56							527,449,226.56
3.Share-basedpayment					347,403,580.73						347,403,580.73

recognizedinowners’equity
4.Others		9,000,000.00				9,000,000.00
(III)Profitdistribution				370,732,766.55	-1,015,348,708.61	-644,615,942.06
1.Transfertosurplusreserve				370,732,766.55	-370,732,766.55
2.Distributionstoowners(orshareholders)					-644,615,942.06	-644,615,942.06
3.Others
(IV)Transferswithinowners’equity	1,611,543,127.00	-1,611,543,127.00	-22,570,692.52		21,216,450.97	-1,354,241.55
1.Capitalizationofcapitalreserve	1,611,543,127.00	-1,611,543,127.00
2.Capitalizationofsurplusreserve
3.Lossoffsetbysurplusreserve
4.Retainedearningscarriedforwardfromchangesindefinedbenefitplans
5.Retainedearningscarriedforwardfromothercomprehensiveincome			-22,570,692.52		21,216,450.97	-1,354,241.55
6.Others
(V)Specialreserve

1.Transfertospecialreserveinthecurrentperiod
2.Amountutilizedinthecurrentperiod
(VI)Others
VI.Closingbalanceofthecurrentperiod	6,999,768,186.00	527,449,226.56	2,303,197,437.38	80,735,015.01	733,067,797.73	5,031,699,596.69	15,675,917,259.37

Amountforpriorperiod

In:RMB

Item	2019
	Sharecapital	Otherequityinstruments			Capitalreserve	Less:Treasuryshares	Othercomprehensiveincome	Specialreserve	Surplusreserve	Unappropriatedprofit	Others	Totalowners’equity
	Sharecapital	Preferredshares	Perpetualbonds	Others	Capitalreserve	Less:Treasuryshares	Othercomprehensiveincome	Specialreserve	Surplusreserve	Unappropriatedprofit	Others	Totalowners’equity
I.Closingbalanceoftheprecedingyear	4,114,616,722.00				4,006,219,481.93		106,904,925.00		288,526,845.75	1,859,961,356.05		10,376,229,330.73
Add:Changesinaccountingpolicies							-2,433,837.63		361,900.76	3,257,106.87		1,185,170.00
Correctionsofpriorperioderrors
Others
II.Openingbalanceofthecurrentyear	4,114,616,722.00				4,006,219,481.93		104,471,087.37		288,888,746.51	1,863,218,462.92		10,377,414,500.73
III.Changesfortheyear(decreaseisindicatedby“-”)	1,234,385,016.00				-935,821,756.62		21,137,812.87		73,446,284.67	455,285,725.89		848,433,082.81

(I)Totalcomprehensiveincome			21,137,812.87		734,462,846.66	755,600,659.53
(II)Owners’contributionsandreductionincapital		298,563,259.38				298,563,259.38
1.Ordinarysharescontributedbyowners
2.Capitalcontributionfromholdersofotherequityinstruments
3.Share-basedpaymentrecognizedinowners’equity		298,563,259.38				298,563,259.38
4.Others
(III)Profitdistribution				73,446,284.67	-279,177,120.77	-205,730,836.10
1.Transfertosurplusreserve				73,446,284.67	-73,446,284.67
2.Distributionstoowners(orshareholders)					-205,730,836.10	-205,730,836.10
3.Others
(IV)Transferswithinowners’equity	1,234,385,016.00	-1,234,385,016.00
1.Capitalizationofcapitalreserve	1,234,385,016.00	-1,234,385,016.00
2.Capitalizationofsurplusreserve

3.Lossoffsetbysurplusreserve
4.Retainedearningscarriedforwardfromchangesindefinedbenefitplans
5.Retainedearningscarriedforwardfromothercomprehensiveincome
6.Others
(V)Specialreserve
1.Transfertospecialreserveinthecurrentperiod
2.Amountutilizedinthecurrentperiod
(VI)Others
IV.Closingbalanceofthecurrentperiod	5,349,001,738.00	3,070,397,725.31	125,608,900.24	362,335,031.18	2,318,504,188.81	11,225,847,583.54

III.BasicInformation

LuxsharePrecisionIndustryCo.,Ltd.(“Company”or“theCompany”)isacompanylimitedbysharesestablishedbyShenzhenZixinInvestmentCo.,Ltd.(“ZixinInvestment”)andLuxshareLimitedasfoundersafterbeingapprovedbyShenzhenPeople’sGovernmentandShenzhenBureauofTradeandIndustryinFebruary2009.Company’sUniformSocialCreditCode:

91440300760482233Q.TheCompanywaslistedonShenzhenStockExchangeinSeptember2010.TheCompanypertainstothecommunicationequipmentindustry.AsofDecember31,2020,theCompanyissued6,999,768,186sharesintotal,withitsregisteredcapitalamountingtoRMB6,999,768,186anditsregisteredofficelocatedat:2/F,BlockA,SanyoNewIndustrialZone,WestHaoyiCommunity,ShajingStreet,BaoanDistrict,Shenzhen,

China.ItsplaceofbusinesswaschangedinAugust2020,andtheplacebeforechangeisNo.17KuiqingRoad,QinghuangVillage,QinghuangIndustrialZone,QingxiTown,DongguanCity,Guangdong,China,andtheplaceafterchangeisNo.313NorthRingRoad,QingxiTown,DongguanCity,Guangdong,China.ThemainbusinessactivitiesoftheCompanyinclude:

productionandoperationofconnectingwires,connectors,computerperipherals,plastichardwareproducts.TheCompany’sparentcompanyisLuxshareLimited,anditsdefactorcontrollersareWANGLaichunandWANGLaisheng.ThesefinancialstatementswereapprovedbytheCompany’sboardofdirectorsonApril20,2021forissuance.TherelevantinformationofsubsidiariesoftheCompanyisseenintheNote“VII.InterestsinOtherEntities”.ThechangesinscopeofconsolidationforthisreportingperiodisseenintheNote“VI.ChangesinScopeofConsolidation”IV.BasisofPreparationofFinancialStatements

1.Basisofpreparation

TheCompanyhaveprepareditsfinancialstatementsinaccordancewiththerequirementsoftheAccountingStandardsforBusinessEnterprises—BasicStandardpromulgatedbytheMinistryofFinanceofthePRC,specificaccountingstandards,guidelinesforapplicationofaccountingstandardsforenterprises,interpretationofaccountingstandardsforenterprisesandotherrelevantregulationssuccessivelypromulgated(collectively,“AccountingStandardsforBusinessEnterprises”)andthePreparationRulesforInformationDisclosurebyCompaniesOfferingSecuritiestothePublicNo.15—GeneralProvisionsonFinancialReportsissuedbyChinaSecuritiesRegulatoryCommission.

2.Goingconcern

TheCompanypreparesitsfinancialstatementsonagoingconcernbasis.TheCompanyhastheabilitytocontinueasagoingconcernwithin12monthsfromtheendofthereportingperiod,anddetectednomajoreventsthatmayaffectsuchability.V.ImportantAccountingPoliciesandAccountingEstimatesRemindersonspecificaccountingpoliciesandaccountingestimates:

Thedetailsareseeninthefollowingstatements:

1.StatementofcompliancewiththeAccountingStandardsforBusinessEnterprises

ThesefinancialstatementscomplywiththerequirementsoftheAccountingStandardsforBusinessEnterprisespromulgatedbytheMinistryofFinanceofthePRC,andtrulyand

completelyreflecttheconsolidatedandparentcompany’sfinancialpositionoftheCompanyasofDecember31,2020,andtheconsolidatedandparentcompany’soperatingresultsandcashflowsfortheyearthenended.

2.Accountingperiod

TheCompany’saccountingyearisfromJanuary1toDecember31ofeachcalendaryear.

3.Operatingcycle

TheCompany’soperatingcycleis12months.

4.Functionalcurrency

TheCompanyusesRMBasitsfunctionalcurrency.ThesubsidiariesoftheCompanydetermineitsfunctionalcurrencybasedontheprimaryeconomicenvironmentinwhichsuchsubsidiariesoperate.ThesefinancialstatementsarepresentedinRMB.

5.Accountingtreatmentofbusinesscombinationsinvolvingenterprisesundercommoncontrolandbusinesscombinationsnotinvolvingenterprisesundercommoncontrol

Businesscombinationinvolvingenterprisesundercommoncontrol:Theassetsandliabilitiesacquiredbytheabsorbingpartyinabusinesscombination(includinggoodwillformedthroughtheacquisitionbytheultimatecontrolleroftheabsorbedparty)aremeasuredaccordingtothecarryingamountoftheassetsandliabilitiesoftheabsorbedpartyinthefinancialstatementsofultimatecontrolleronthecombinationdate.Thedifferencebetweenthecarryingamountofthenetassetsobtainedinabusinesscombinationandthecarryingamountoftheconsiderationpaidforthecombination(ortheaggregatefacevalueofsharesissuedasconsideration)isadjustedtotheequitypremiuminthecapitalreserve.Iftheequitypremiuminthecapitalreserveisnotsufficienttoabsorbthedifference,anyexcessshallbeadjustedagainstretainedearnings.Businesscombinationnotinvolvingenterprisesundercommoncontrol:Thecostofcombinationistheaggregateofthefairvalues,attheacquisitiondate,oftheassetsgiven,liabilitiesincurredorassumed,andequitysecuritiesissuedbytheacquirer,inexchangeforcontroloftheacquiree.Wherethecostofabusinesscombinationexceedstheacquirer’sinterestinthefairvalueoftheacquiree’sidentifiablenetassets,thedifferenceisrecognizedasgoodwill;wherethecostofabusinesscombinationislowerthantheacquirer’sinterestinthefairvalueoftheacquiree’sidentifiablenetassets,thedifferenceisrecognizedinprofitorlossforthecurrentperiod.Theacquiree’sidentifiableassets,liabilitiesandcontingentliabilitiesthatareacquiredinthecombinationmeettherecognitioncriteriaaremeasuredatthefairvalueonthedateofacquisition.Thecostsincurreddirectlyattributabletothebusinesscombinationarerecognizedinprofitorlossforthecurrentperiodwhenincurred;thetransactioncostsforissueofequitysecuritiesordebtsecuritiesarerecognizedintheamountinitiallyrecognizedofequitysecuritiesordebtsecurities.

6.Methodofpreparationofconsolidatedfinancialstatements

1.Scopeofconsolidation

Thescopeofconsolidatedfinancialstatementsisdeterminedonthebasisofcontrol,andincludesthoseoftheCompanyandallofitssubsidiaries.“Control”meansthepoweroftheCompanyovertheinvestee,throughwhichtheCompanywillenjoyvariablereturnsbyparticipatingintherelevantactivitiesandhastheabilitytousethepowerovertheinvesteetoaffecttheCompany’sreturnamount.

2.Consolidationprocedures

TheCompanyregardstheentireenterprisegroupasanaccountingentityandpreparestheconsolidatedfinancialstatementsaccordingtotheuniformedaccountingpolicies,reflectingtheoverallfinancialstatus,operatingresultsandcashflowsofthisenterprisegroup.Theeffectsofotherintragrouptransactions(betweentheCompanyanditssubsidiariesorbetweensubsidiaries)areeliminated.Wheretheintragrouptransactionsshowthatrelevantassetshavesufferedimpairmentlosses,thoselossesarerecognizedfully.WheretheaccountingpoliciesandperiodsadoptedbyallsubsidiariesarenotinlinewiththoseoftheCompany,thenecessaryadjustmentsaremadetothefinancialstatementsofthesesubsidiariesbasedontheaccountingpoliciesandperiodsoftheCompanywhenpreparingtheconsolidatedfinancialstatements.Thatportionofowner’sequities,netprofitsorlossesandcomprehensiveincomeofsubsidiariesfortheperiodattributabletominorityinterestsareseparatelypresentedintheconsolidatedbalancesheetbelowthe“owner’sequity”lineitem,intheconsolidatedincomestatementbelowthe“netprofit”and“totalcomprehensiveincome”as“minorityinterests”.Whentheamountoflossforthecurrentperiodattributabletotheminorityshareholdersofasubsidiaryexceedstheminorityshareholders’shareoftheopeningbalanceofowner’sequityofthesubsidiary,theexcessisallocatedagainstminorityinterests.

(1)IncreaseinsubsidiesorbusinessWhereasubsidiaryorbusinessisacquiredduringthereportingperiodthroughabusinesscombinationinvolvingenterprisesundercommoncontrol,operatingresultsandcashflowsofthissubsidiaryorbusinessfromthebeginningoftheperiodinwhichthecombinationtakesplacetotheendofthereportingperiodareincludedintheconsolidatedfinancialstatements.Meanwhile,theadjustmentsaremadetotheopeningbalancesoftheconsolidatedfinancialstatementsandtherelevantitemsofthecomparativestatement,andthecombinedreportingentityisdeemedtohaveexistedsincethetimewhentheultimatecontrollerbeginstoexercisecontrol.WheretheCompanybecomescapabletoexercisecontroloveraninvesteeunderthe

commoncontrolduetoadditionalinvestmentorotherreasons,forequityinvestmentsheldbeforeacquiringcontroloftheabsorbedparty,therelevantgainsorlosses,othercomprehensiveincomeandotherchangesinnetassetsrecognizedduringtheperiodfromtheearlierofthedateofacquisitionoforiginalequityorthedatewhentheabsorbingpartyandtheabsorbedpartyareunderthecommoncontroluntilthecombinationdatearerespectivelyoffsetagainstopeningbalancesofretainedearningsduringthecomparativereportingperiodorprofitorlossforthecurrentperiod.Whereasubsidiaryorbusinessisacquiredduringthereportingperiodthroughabusinesscombinationnotinvolvingenterprisesundercommoncontrol,itisincludedintheconsolidatedfinancialstatementsfromthedateofacquisitionbasedonthefairvalueofidentifiablenetassets,liabilitiesandcontingentliabilitiesdeterminedonthedateofacquisition.WheretheCompanybecomescapabletoexercisecontroloveraninvesteenotundercommoncontrolduetoadditionalinvestmentorotherreasons,fortheacquiree’sequityheldpriortothedateofacquisition,theCompanyremeasuresthefairvalueoftheequityonthedateofacquisition,andthedifferencebetweenthefairvalueoftheequityanditscarryingamountisrecognizedinprofitorlossforthecurrentperiod.Wheretheacquiree’sequityheldpriortothedateofacquisitioninvolvesothercomprehensiveincomethatcanbereclassifiedtoprofitorlossandchangesinotherowners’equityunderequitymethod,suchothercomprehensiveincomeandchangesaretransferredtotheincomeoftheperiodinwhichthedateofacquisitionfalls.

(2)Disposalofsubsidiaries

①GeneraldisposalWhentheCompanylosescontrolovertheinvesteeduetodisposalofpartialequityinvestmentsorotherreasons,fortheremainingequityinvestmentsafterdisposal,theCompanyremeasurestheremainingequityinvestmentsafterdisposalatthefairvalueonthedatewhentheCompanylosesitscontrol.Thedifferencebetweenthesumoftheconsiderationfromdisposalofequityandthefairvalueofremainingequitylessthesumofanoriginalsubsidiary’sshareofnetassetsandgoodwillcontinuouslycalculatedfromthedateofacquisitionorcombinationaccordingtooriginalshareholdingratioisrecognizedastheinvestmentreturnfortheperiodinwhichthecontrolislost.Othercomprehensiveincomerelatingtotheoriginalsubsidiary’sequityinvestmentsthatwillbereclassifiedtoprofitorlossandchangesinotherowners’equityundertheequitymethodistransferredintotheinvestmentincomeforthecurrentperiodwhenthecontrolislost.

②DisposalofsubsidiariesbystepsWherethesubsidiary’sequityinvestmentsaredisposedbystepsthroughmultipletransactionsuntilthecontrolislost,andthetermsandconditionsofalltransactionson

disposalofthesubsidiary’sequityinvestmentsandtheeconomicimpactthereoffallwithinoneormoreofthefollowingcircumstances,thenitusuallyindicatesthatmultipletransactioneventsbelongasinglepackage:

i.thesestransactionsareconcludedsimultaneouslyoraftertheinfluenceoneachotherisconsidered;ⅱ.thesetransactionsaawholecanachieveacompletecommercialresult;iii.theoccurrenceofonetransactiondependsonthatofatleastoneothertransaction;ⅳ.atransactionisnoteconomicalalone,buteconomicalwhenconsideredtogetherwithothertransactions.Wherealltransactionsbelongtoasinglepackage,theCompanyaccountsforsuchtransactionsasonetransactiontodisposeofandloseitscontroloverthesubsidiary;however,thedifferencebetweentheproceedsfromeachdisposalbeforelossofcontrolandtheshareownedbytheCompanyinthenetassetsofthesubsidiaryinrelationtotheinvestmentdisposedofisrecognizedinothercomprehensiveincomeintheconsolidatedfinancialstatements,whichiswhollytransferredtotheprofitorlossintheperiodinwhichthecontrolislost.Wherealltransactionsdonotbelongtoasinglepackage,priortothelossofcontrol,theCompanyaccountsforsuchtransactionsaspartialdisposalofasubsidiary’sequityinvestmentsintheeventthatthecontrolisnotlost;andwhenthecontrolislost,theCompanyaccountsforsuchtransactionsinaccordancewiththegeneralmethodsofdisposalofsubsidiaries.

(3)Acquisitionofasubsidiary’sminorityequityThedifferencebetweenthelong-termequityinvestmentsnewlyobtainedbytheCompanyduetoacquisitionofminorityequityanditsshareofthesubsidiary’snetassetscontinuouslycalculatedfromthedateofacquisitionorcombinationaccordingtonewshareholdingratioisadjustedagainstthecapitalreserve(capitalpremium)intheconsolidatedbalancesheet.Iftheequitypremiuminthecapitalreserveisnotsufficienttoabsorbthedifference,anyexcessshallbeadjustedagainstretainedearnings.

(4)Partialdisposalofthesubsidiary’slong-termequityinvestmentsintheeventthatthecontrolisnotlostThedifferencebetweentheproceedsfromdisposalandtheshareownedbytheCompanyinthenetassetsofthesubsidiaryinrelationtothelong-termequityinvestmentdisposedofthatiscalculatedcontinuouslyfromthedateofacquisitionorcombinationisadjustedagainstthecapitalreserve(capitalpremium).Incasethecapitalpremiumisnotsufficient

toabsorbthedifference,theremainingbalanceisadjustedagainsttheretainedearnings.

7.Classificationofjointarrangementsandaccountingtreatmentofjointoperations

Jointarrangementsareclassifiedintojointoperationsandjointventures.Whereapartytoajointarrangementenjoysrelevantassetsandassumesrelevantliabilitiesofsuchanarrangement,thiscasebelongstoajointoperation.TheCompanyrecognizesthefollowingitemsrelatingtoitsinterestinthejointoperation:

(1)theassetsheldindividuallybytheCompany,andtheCompany’sshareoftheassetsheldjointly;

(2)theliabilitiesincurredindividuallybytheCompany,andtheCompany’sshareoftheliabilitiesincurredjointly;

(3)theCompany’srevenuefromthesalesofitsshareofoutputofthejointoperation;

(4)theCompany’sshareofrevenuefromthesalesofassetsbythejointoperation;and

(5)theexpensesincurredindividuallybytheCompany,andtheCompany’sshareoftheexpensesincurredjointlybythejointoperation.TheCompanyaccountsforinvestmentsinjointventuresusingtheequitymethodandthedetailsareseeninNote“III.(XIV)Long-termEquityInvestments”

8.Recognitionofcashandcashequivalents

CashcomprisescashonhandanddepositsoftheCompanythatcanbereadilywithdrawnondemand.Cashequivalentscompriseshort-term,highlyliquidinvestmentsheldbytheCompanythatarereadilyconvertibleintoknownamountsofcashandwhicharesubjecttoaninsignificantriskofchangesinvalue.

9.Foreigncurrencytransactionsandtranslationofforeigncurrencyfinancialstatements

1.Foreigncurrencytransactions

TheforeigncurrencytransactionsarerecordedbytranslatingtheamountofaforeigncurrencyintoRMBatthespotexchangerateprevailingonthe1stofeachmonth.Thebalancesofforeigncurrencymonetaryitemsaretranslatedusingthespotexchangerateatthebalancesheetdate.Exchangedifferencesarisingtherefromarerecognizedinprofitorlossforthecurrentperiod,exceptforexchangedifferencesgeneratedbyspecific-purposeborrowingsinaforeigncurrencyrelatedtoacquisitionofqualifyingassets,whichshouldbeaccountedforaccordingtothecapitalizationprinciplesofborrowingcosts.

2.TranslationoffinancialstatementsdenominatedinforeigncurrenciesAssetsandliabilitiesinthebalancesheetaretranslatedatthespotexchangerateprevailingatthebalancesheetdate.Anitemofowners’equityexceptfor“unappropriatedprofit”aretranslatedatthespotexchangeratesatthedatesonwhichsuchitemsarose.

Incomeandexpensesintheincomestatementaretranslatedatthespotexchangeratesorsimilarratesatthedatesofthetransactions.WhentheCompanydisposesofaforeignoperation,ittransfersthetranslationdifferencesrelatingtotranslationofthefinancialstatementsofthatforeignoperationfromtheowner’sentitytoprofitorlossforthecurrentperiod.

10.Financialinstruments

WhentheCompanybecomesapartytoafinancialinstrumentcontract,afinancialasset,liabilityorequityinstrumentisrecognized.

1.Classificationoffinancialinstruments

BasedontheCompany’sbusinessmodelformanagingfinancialassetsandthecashflowcharacteristicsoffinancialassets,thefinancialassetsareclassifiedintooninitialrecognition:financialassetsmeasuredatitsamortizedcost,financialassetsatfairvaluethroughothercomprehensiveincome,andfinancialassetsatfairvaluethroughprofitorloss.TheCompanyclassifiesfinancialassetsthatmeetthefollowingcriteriaatthesametimeandarenotdesignatedasatfairvaluethroughprofitorlossasthefinancialassetsmeasuredatamortizedcost:

－thebusinessmodelaimstocollectcontractualcashflows;and－thecontractualcashflowsaregeneratedonlyfrompaymentofprincipalandinterestontheoutstandingprincipal;TheCompanyclassifiesfinancialassetsthatmeetthefollowingcriteriaatthesametimeandarenotdesignatedasatfairvaluethroughprofitorlossasthefinancialassets(debtinstruments)atfairvaluethroughothercomprehensiveincome:

－thebusinessmodelaimstocollectcontractualcashflowsandsellsuchfinancialassets;and－thecontractualcashflowsaregeneratedonlyfrompaymentofprincipalandinterestontheoutstandingprincipal;TheCompanyirrevocablydesignatesthenon-tradingequityinstrumentsasfinancialassets(equityinstruments)atfairvaluethroughothercomprehensiveincomeoninitialrecognition.Suchdesignationismadeonthebasisofasingleinvestment,andtherelevantinvestmentsmeetthedefinitionofanequityinstrumentfromtheissuer’sperspective.Exceptforthefinancialassetsmeasuredatamortizedcostandthefinancialassetsatfairvaluethroughothercomprehensiveincome,theCompanyclassifiesallofotherremainingfinancialassetsasthefinancialassetsatfairvaluethroughprofitorloss.Iftheaccountingmismatchcanbeeliminatedorsignificantlyreducedoninitialrecognition,theCompanymayirrevocablydesignatethefinancialassetsthatshouldhavebeenclassifiedasthosemeasuredatamortizedcostorthoseatfairvaluethroughothercomprehensiveincomeasthefinancialassetsatfairvaluethroughprofitorloss.Oninitialrecognition,financialliabilitiesareclassifiedintothefollowingtwocategories:

financialliabilitiesatfairvaluethroughprofitorlossandfinancialliabilitiesmeasuredatamortizedcost.Afinancialliabilitymaybedesignatedasatfairvaluethroughprofitorlossoninitialmeasurementifoneofthefollowingconditionsismet:

1)thedesignationeliminatesorsignificantlyreducesaccountingmismatch.

2)agroupoffinancialliabilitiesoragroupoffinancialliabilitiesandfinancialassetsismanagedanditsperformanceisevaluatedonafairvaluebasis,andinformationaboutthegroupisreportedonthatbasistotheenterprise’skeymanagementpersonnelaccordingtosuchriskmanagementorinvestmentstrategysetoutinofficialwrittendocuments.

3)thisfinancialliabilitycontainsembeddedderivativesthatneedtobesplitseparately.

2.Recognitionandmeasurementoffinancialinstruments

(1)FinancialassetsmeasuredatamortizedcostThefinancialassetsmeasuredatamortizedcost,includingnotesreceivable,accountsreceivable,otherreceivables,long-termreceivablesanddebtinvestments,etc.,areinitiallymeasuredatfairvalue,andtherelevanttransactioncostsarechargedtotheinitiallyrecognizedamount;theaccountsreceivablethatdonotcontainanysignificantfinancingcomponentorarerecognizedbytheCompanywithouttakingintoconsiderationthesignificantfinancingcomponentsunderthecontractswithatermoflessthanoneyearareinitiallymeasuredatthecontractualtradingprice.Theinterestcalculatedusingtheeffectiveinterestmethodduringtheholdingperiodisrecognizedintheprofitorlossforthecurrentperiod.Onrecoveryordisposalofafinancialasset,thedifferencebetweentheproceedsandthecarryingamountofthefinancialassetisrecognizedinprofitorlossforthecurrentperiod.

(2)Financialassets(debtinstruments)atfairvaluethroughothercomprehensiveincome.Financialassets(debtinstruments)atfairvaluethroughothercomprehensiveincome,includingreceivablefinancingandotherdebtinvestments,areinitiallymeasuredatfairvalue,andtherelevanttransactioncostsarerecognizedininitiallyrecognizedamount.Thesefinancialassetsaresubsequentlymeasuredatfairvalue,changesinfairvalueotherthantheinterestcalculatedusingtheeffectiveinterestmethod,impairmentlossorgainandprofitorlossonexchangearerecognizedinothercomprehensiveincome.Onderecognition,thecumulativegainorlosspreviouslyincludedinothercomprehensiveincomeisremovedoutfromothercomprehensiveincomeandrecognizedinprofitorlossforthecurrentperiod.

(3)Financialassets(equityinstruments)atfairvaluethroughothercomprehensiveincomeFinancialassets(equityinstruments)atfairvaluethroughothercomprehensiveincome,

includingotherequityinvestments,areinitiallymeasuredatfairvalue,andtherelevanttransactioncostsarerecognizedininitiallyrecognizedamount.Thesefinancialassetsaresubsequentlymeasuredatfairvalue,andchangesinfairvaluearerecognizedinothercomprehensiveincome.Thedividendsreceivedarerecognizedinprofitorlossforthecurrentperiod.Onderecognition,thecumulativegainorlosspreviouslyincludedinothercomprehensiveincomeisremovedoutfromothercomprehensiveincomeandincludedinretainedearnings.

(4)FinancialassetsatfairvaluethroughprofitorlossFinancialassetsatfairvaluethroughprofitorloss,includingheld-for-tradingfinancialassets,derivativefinancialassetsandothernon-currentfinancialassets,areinitiallymeasuredatfairvalue,andtherelevanttransactioncostsareincludedinprofitorlossforthecurrentperiod.Thesefinancialassetsaresubsequentlymeasuredatfairvalue,andchangesinfairvalueareincludedinprofitorlossforthecurrentperiod.

(5)FinancialliabilitiesatfairvaluethroughprofitorlossFinancialliabilitiesatfairvaluethroughprofitorloss,includingheld-for-tradingfinancialliabilitiesandderivativefinancialliabilities,areinitiallymeasuredatfairvalue,andtherelevanttransactioncostsarerecognizedinprofitorlossforthecurrentperiod.Thesefinancialliabilitiesaresubsequentlymeasuredatfairvalue,andchangesinfairvaluearerecognizedinprofitorlossforthecurrentperiod.Onderecognition,thedifferencebetweentheircarryingamountandtheconsiderationpaidisincludedinprofitorlossforthecurrentperiod.

(6)FinancialliabilitiesmeasuredattheamortizedcostThefinancialliabilitiesmeasuredattheamortizedcost,includingshort-termborrowings,notespayable,accountspayable,otherpayables,long-termborrowings,bondspayable,long-termpayables,areinitiallymeasuredatfairvalue,andtherelevanttransactioncostsarechargedtotheinitiallyrecognizedamount.Theinterestcalculatedusingtheeffectiveinterestmethodduringtheholdingperiodisrecognizedintheprofitorlossforthecurrentperiod.Onderecognition,thedifferencebetweentheconsiderationpaidandthecarryingamountofthesefinancialliabilitiesisrecognizedinprofitorlossforthecurrentperiod.

3.Derecognitionandtransferoffinancialassets

TheCompanyderecognizesafinancialassetwhenoneofthefollowingconditionsismet:

－thecontractualrighttoreceivecashflowsfromthefinancialassetshasexpired;－thefinancialassethasbeentransferredandalltherisksandrewardsofownershipofthefinancialassetaresubstantiallytransferredtothetransferee;－thefinancialassethasbeentransfer,andtheCompanyneithertransferrednorretainedasubstantialportionofallrisksandrewardsincidentaltotheownershipofthefinancialasset,butdidnotretaincontroloverthefinancialasset.Whenafinancialassetistransferred,iftheCompanyretainssubstantiallyalltherisksandrewardsofownershipofafinancialasset,itdoesnotderecognizethefinancialasset.WhentheCompanydetermineswhetheratransferofafinancialassetsatisfiesthederecognizingcriteriaprescribedabove,itgivesweighttothesubstanceratherthanform.TheCompanydividesatransferofafinancialassetintoatransferofthefinancialassetinitsentiretyoratransferofapartofthefinancialasset.Foratransferofafinancialassetinitsentiretythatsatisfiesthederecognizingcriteria,thedifferencebetweenthefollowingtwoamountsisrecognizedinprofitorlossforthecurrentperiod:

(1)thecarryingamountofthefinancialassettransferred;and

(2)thesumoftheconsiderationreceivedfromthetransferand(ifthefinancialassettransferredisafinancialasset(debtinstrument)measuredatfairvaluethroughothercomprehensiveincome)anycumulativechangesinfairvaluethatwasoriginallyrecognizedinowners’equity.Ifapartofthetransferredfinancialassetqualifiesforderecognizing,thecarryingamountofthetransferredfinancialassetinitsentiretyisallocatedbetweenthepartthatcontinuestoberecognizedandthepartthatisderecognized,basedontherelativefairvaluesofthoseparts.Thedifferencebetweenthefollowingtwoamountsisrecognizedinprofitorlossforthecurrentperiod:

(1)thecarryingamountallocatedtothepartderecognized;and

(2)thesumoftheconsiderationreceivedforthepartderecognizedand(ifthefinancialassettransferredisafinancialasset(debtinstrument)measuredatfairvaluethroughothercomprehensiveincome)theamountofthepartderecognizedcorrespondingtothecumulativechangesinfairvaluethatwasoriginallyrecognizedinowner’sequity.Afinancialassetthatdoesnotqualifyforderecognitioncontinuestoberecognized,andtheconsiderationreceivedisrecognizedasafinancialliability.

4.Derecognitionoffinancialliabilities

Ifthepresentobligationsofafinancialliabilityaredischargedinpartorwhole,thefinancialliabilityoranypartthereofisdisrecognized;anagreementbetweentheCompanyandthecreditortoreplacetheexistingfinancialliabilitywithanewfinancialliabilitywithsubstantiallydifferenttermsisaccountedforasanextinguishmentoftheexistingfinancialliabilityandtherecognitionofanewfinancialliability.Asubstantialmodificationtothetermsofanexistingfinancialliabilityorapartthereofisaccountedforasanextinguishmentoftheexistingfinancialliabilityorapartthereof,and

thefinancialliabilitywithmodifiedtermsisrecognizedasanewfinancialliabilityatthesametime.WhentheCompanyderecognizesafinancialliabilityorapartthereof,itrecognizesthedifferencebetweenthecarryingamountofthefinancialliabilityderecognizedandtheconsiderationpaid(includinganynon-cashassetstransferredornewfinancialliabilitiesassumed)inprofitorlossforthecurrentperiod.IftheCompanyrepurchasesapartofafinancialliability,itallocatesthecarryingamountofthefinancialliabilityinitsentiretybetweenthepartthatcontinuestoberecognizedandthepartthatisderecognizedbasedontherelativefairvaluesofthosepartsonthedateoftherepurchase.Thedifferencebetweenthecarryingamountofthefinancialliabilityderecognizedandtheconsiderationpaid(includinganynon-cashassetstransferredornewfinancialliabilitiesassumed)isrecognizedinprofitorlossfortheperiod.

5.Methodofdeterminationofthefairvalueoffinancialassetsandfinancialliabilities

Ifthereisanactivemarketforafinancialinstrument,thequotedpriceintheactivemarketisusedtoestablishthefairvalueofthefinancialinstrument.Ifthereisnoactivemarketforafinancialinstrument,avaluationtechniqueisusedtoestablishthefairvalueofthefinancialinstrument.Onvaluation,theCompanyadoptsthevaluationtechniquewhichappliestothecurrentcircumstancesandissupportedbysufficientdataavailableandotherinformation,selectstheinputvalueconsistentwiththecharacteristicsoftheassetorliabilityconsideredbythemarketparticipantsinthetransactionoftherelevantassetorliability,andprioritizesusingtherelevantobservableinputvalue.Theunobservableinputvaluecanbeusedonlywhentherelevantobservableinputvaluecannotbeobtainedorit’simpracticabletoobtaintherelevantobservableinputvalue.

6.Testandaccountingtreatmentofimpairmentoffinancialassets

TheCompanyestimatestheexpectedcreditlossesoffinancialassetsmeasuredatamortizedcostandfinancialassets(debtinstruments)atfairvaluethroughothercomprehensiveincomeonasingleorjointbasis.TheCompanycomprehensivelyconsidersreasonableandwell-foundedinformationaboutpastevents,currentconditions,andpredictionsoffutureeconomicconditionsaswellasthepossibilityofdefaulttocalculatetheprobability-weightedamountofthepresentvalueofthedifferencebetweencashflowsreceivablefromcontractsandcashflowsexpectedtoberecoveredandincludeitintheexpectedcreditloss.TheCompanyrecognizesalossallowanceequaltothelifetimeexpectedcreditlossesifthecreditriskhasincreasedsignificantlysinceinitialrecognition,ortotheexpectedcreditlosseswithinthenext12monthsifthecreditriskhasnotincreasedsignificantlysinceinitialrecognition.Theaddedorreversedlossreservesarisingtherefromarerecognizedinprofitorlossforthecurrentperiodasimpairmentlossesorgains.

TheCompanycomparesthepossibilityofdefaultatthebalancesheetdatewiththepossibilityofdefaultuponinitialrecognition,todeterminetherelativechangeinthedefaultrisksoffinancialinstrumentduringtheexpectedlifetime,andassessdeterminewhetherthecreditriskofthefinancialinstrumentshasincreasedsignificantlysinceinitialrecognition.Ifafinancialinstrumentispastdueformorethan30days,theCompanyusuallybelievesthatcreditriskofthefinancialinstrumenthasincreasedsignificantly,unlessthereisclearevidencethatcreditriskofthefinancialinstrumenthasnotincreasedsignificantlysinceinitialrecognition.Ifafinancialinstrumenthaslowcreditriskonthebalancesheetdate,theCompanybelievesthatcreditriskofthefinancialinstrumenthasnotincreasedsignificantlysinceinitialrecognition.Ifthereisobjectiveevidenceindicatingthatafinancialassethasbeenimpairedforitscredit,theCompanymakesaprovisionforimpairmentofthefinancialassetonanindividualbasis.WithrespecttoaccountsreceivableandcontractassetsthatarisefromthetransactionsregulatedundertheAccountingStandardforBusinessEnterprisesNo.14—Revenue(2017),whethertoincludesignificantfinancingcomponents,theCompanyalwaysmeasuresitslossreservesbasedonanamountequaltotheexpectedcreditlossduringtheentirelifeofaccountsreceivable.Forleasereceivables,theCompanyalwaysmeasuresitslossreservesbasedonanamountequaltotheexpectedcreditlossduringtheentirelifeofthesereceivables.IftheCompanynolongerreasonablyexpectsthatthecontractualcashflowsofafinancialassetcanberecoveredinwholeorinpart,itdirectlyreducesthecarryingamountofsuchfinancialasset.

11.Notesreceivable

12.Accountsreceivable

13.Receivablefinancing

14.OtherreceivablesDeterminationandaccountingtreatmentofexpectedcreditlossesofotherreceivables

15.Inventories

1.Classificationandcostofinventories

Inventoriesareclassifiedinto:materialsintransit,rawmaterials,revolvingmaterials,goodsonhand,productsinprocess,goodssold,workinprocess-outsourced,etc.

Inventoriesareinitiallymeasuredatcost.Costofinventoriescomprisesallcostsofpurchase,costsofconversionandotherexpendituresincurredinbringingtheinventoriestotheirpresentlocationandcondition.

2.Pricingmethodsofinventoriestransferredout

TheCompanydeliversinventoriesatthepricecalculatedusingtheweighted-averagesystemmonthlyinarrears.

3.DeterminationbasisofnetrealisablevalueofdifferenttypesofinventoriesAtthebalancesheetdate,inventoriesaremeasuredatthelowerofcostandnetrealisablevalue.Ifthecostofinventoriesishigherthanthenetrealisablevalue,aprovisionfordeclineinvalueofinventoriesismade.Netrealisablevalueistheestimatedsellingpriceintheordinarycourseofbusinesslesscostsexpectedtobeincurreduntilcompletionandtheestimatedcostsnecessarytomakethesaleandrelevanttaxes.Forfinishedproducts,goodsonhand,materialsavailableforsalesandothermerchandiseinventoriesavailableforsales,intheordinaryproductionandoperationprocess,theirrealisablenetvalueisdeterminedattheestimatedsellingpriceoftheseinventorieslesstheestimatedcostsnecessarytomakethesaleandrelevanttaxes;fortheinventoriesthatneedtobeprocessed,intheordinaryproductionandoperationprocess,theirrealisablenetvalueisdeterminedattheestimatedsellingpriceoffinishedproductslessthecoststobeincurreduntilcompletionandtheestimatedcostsnecessarytomakethesaleandrelevanttaxes.Thenetrealisablevalueofthequantityofinventoriesheldtosatisfysalesorservicecontractsisbasedonthecontractprice.Ifthequantityofinventoriesheldismorethanthequantityorderedinthesalescontracts,thenetrealisablevalueoftheexcessportionofinventoriesisbasedongeneralsellingprices.Aftertheprovisionfordeclineinvalueofinventoriesismade,ifthecircumstancesthatpreviouslycausedinventoriestobewrittendownbelowcostnolongerexistsothatthenetrealizablevalueishigherthanthecarryingamountofinventories,thereversalismadetotheextentoftheamountoriginallyprovidedforthedeclineinvalueofinventories.Theamountofthereversalisrecognizedinprofitorlossforthecurrentperiod.

4.Inventorysystemsforinventories

Aperpetualinventorysystemisadopted.

5.Amortizationoflow-valueconsumablesandpackingmaterials

(1)Thelow-valueconsumablesareamortizedusingimmediatewrite-offmethod.

(2)Thepackingmaterialsareamortizedusingimmediatewrite-offmethod.

16.Contractassets

1.Recognitionmethodsandstandardsofcontractassets

TheCompanypresentsthecontractassetsorliabilitiesinthebalancesheetbasedonthe

relationshipbetweenperformanceobligationsandcustomerpayments.TheCompanypresentstherighttoreceivetheconsiderationforthegoodsorservicesthathavebeentransferredorofferedtocustomers(thatis,dependingonfactorsotherthanthepassageoftime)asthecontractassets.TheCompanyliststhecontractassetsandliabilitiesunderthesamecontractasnetamount.TheCompanyseparatelypresentsitsownedrighttounconditionally(thatis,onlydependingonthepassageoftime)receiveconsiderationfromcustomersastheaccountsreceivable.

2.Determinationandaccountingtreatmentofexpectedcreditlossesofcontractassets

DeterminationandaccountingtreatmentofexpectedcreditlossesofcontractassetsareseenintheNote“(X)VI.TestandAccountingMethodsofImpairmentofFinancialAssets”.

17.Contractcosts

AccountingpoliciesadoptedfromJanuary1,2020Contractcostsincludecontractperformancecostandcontractacquisitioncosts.ThecostincurredbytheCompanytoperformacontractisnotbegovernedbythestandardsoninventories,fixedassetsorintangibleassets,andifmeetingthefollowingcriteria,isrecognizedasanassetasthecontractperformancecost:

?suchcostisdirectlyrelatedtoanexistingorexpectedcontract.?SuchcostincreasesthetheCompany’sfutureresourcesforfulfillingitsperformanceobligations.?Suchcostisexpectedtoberecovered.IftheincrementalcostincurredbytheCompanytoobtainacontractisexpectedtoberecovered,itisrecognizedasanassetasthecostforcontractacquisition.TheCompanyamortizestheassetrelatedtothecontractcostonthesamebasisastherecognitionoftherevenueofthegoodsorservicesrelatedtotheasset;providedthatifthecostforcontractacquisitionisamortizedfornotmorethanoneyear,theCompanyincludesitintotheprofitorcostforthecurrentperiodinwhichitisincurred.Ifthecarryingamountoftheassetrelatedtothecontractcostishigherthanthedifferencebetweenthefollowingtwoamounts,thentheCompanymakesaprovisionforimpairmentoftheexcessandrecognizesitasanimpairmentlossfortheasset:

1.theremainingconsiderationexpectedtobeobtainedduetothetransferofthegoods;and

2.thecosttobeincurredduetothetransferoftherelevantgoodsorservices.

Iftheimpairmentfactorsforpriorperiodshavechangedafterwardssothattheabovedifferenceishigherthanthecarryingamountoftheasset,thentheCompanyreversesaprovisionforimpairmentoriginallymadeandincludesitintheprofitorlossforthecurrentperiod,providedthatthecarryingamountafterreverseshouldnotexceedthecarryingamounttheassetwouldhavereachedonthedateofreversehadtheprovisionforimpairmentbeennotmade.

18.Held-for-saleassets

Theassetsofwhichcarryingamountisrecoveredmainlythroughsales(includingthroughexchangeofnon-monetaryassetswithcommercialsubstance)ratherthancontinuoususeofnon-currentassetsordisposalgroupsareclassifiedastheheld-for-saleassets.TheCompanyclassifiesthenon-currentassetsordisposalgroupswhichmeetallthefollowingconditionsastheheld-for-saleassets:

(1)theycanbesoldimmediatelyundercurrentconditionsaccordingtothepracticeofsalesofsuchassetsordisposalgroupsinsimilartransactions;and

(2)thesaleisverylikelytohappen,thatis,theCompanyhasmadearesolutiononasaleplanandobtainedaconfirmedpurchasecommitment,andsuchsaleisexpectedtobecompletedwithinoneyear.ThesalehasbeenapprovedbytherelevantauthorityorregulatorydepartmentoftheCompanyifitisrequiredtobesoapprovedbytherelevantprovisions.Forthenon-currentassets(excludingfinancialassets,deferredtaxassets,assetsformedbytheemployeebenefits)ordisposalgroupsclassifiedastheheld-for-saleassets,iftheircarryingamountishigherthanthefairvaluenetofsaleexpenses,thenthecarryingamountisreducedtothefairvaluenetofsaleexpenses.Thatreductioninamountisrecognizedasanimpairmentlossoftheassetsandchargedtoprofitorlossforthecurrentperiod.Aprovisionforimpairmentoftheheld-for-saleassetsisrecognizedaccordingly.

19.Debtinvestments

20.Otherdebtinvestments

21.Long-termreceivables

22.Long-termequityinvestments

1.JudgmentcriteriaofjointcontrolandsignificantinfluenceJointcontrolistheagreedsharingofcontroloveranarrangement,andtherelevantactivitiesofsucharrangementmustbedecidedupontheunanimousconsentofthepartiessharingcontrol.IftheCompanycanexercisejointcontrolovertheinvesteealongwithotherpartiestojointventuresandenjoyrightsovernetassetsoftheinvestee,theinvesteeisajointventureoftheCompany.

Significantinfluenceisthepowertoparticipateinthefinancialandoperatingpolicydecisionsofaninvestee,butisnotcontrolorjointcontrolwithotherpartiesovertheestablishmentofthosepolicies.IftheCompanycanhavesignificantinfluenceovertheinvestee,theinvesteeisanassociateoftheCompany.

2.Determinationofinitialinvestmentcost

(1)Long-termequityinvestmentsformedbybusinesscombinationIncaseofalong-termequityinvestmentofasubsidiaryacquiredthroughabusinesscombinationinvolvingentitiesundercommoncontrol,theinitialinvestmentcostofthelong-termequityinvestmentistheCompany’sshareofthecarryingamountoftheowners’equityoftheabsorbedpartyintheconsolidatedfinancialstatementsoftheultimatecontrolleratthedateofcombination.Thedifferencebetweentheinitialinvestmentcostofthelong-termequityinvestmentandthecarryingamountoftheconsiderationpaidforthecombinationistreatedasanadjustmenttothecapitalreserve.Incasethecapitalreserveisnotsufficienttoabsorbthedifference,theremainingbalanceisadjustedagainsttheretainedearnings.WheretheCompanybecomescapabletoexercisecontroloveraninvesteeunderthecommoncontrolduetoadditionalinvestmentorotherreasons,thedifferencebetweentheinitialinvestmentcostofthelong-termequityinvestmentrecognizedinthelightofaboveprinciplesandthesumofthecarryingamountofthelong-termequityinvestmentpriortocombinationplusthecarryingamountofnewconsiderationpaidforfurtheracquisitionofsharesoncombinationdateisadjustedtotheequitypremium.Iftheequitypremiumisnotsufficienttoabsorbthedifference,anyexcessisadjustedagainstretainedearnings.Incaseofalongequityinvestmentacquiredthroughabusinesscombinationnotinvolvingenterprisesundercommoncontrol,theCompanyregardsthecostofcombinationdeterminedonthedateofacquisitionastheinitialinvestmentcostofthelong-termequityinvestment.IftheCompanybecomescapabletoexercisecontroloveraninvesteenotundercommoncontrolduetoadditionalinvestmentorotherreasons,theinitialinvestmentcostisthesumofthecarryingamountoftheequityinvestmentoriginallyheldandthenewinvestmentcost.

(2)Long-termequityinvestmentsobtainedthroughformsotherthanbusinesscombinationForalong-termequityinvestmentacquiredbypayingcash,theinitialinvestmentcostistheactualpurchaseprice.Foralong-termequityinvestmentacquiredbytheissueofequitysecurities,theinitialinvestmentcostisthefairvalueofequitysecuritiesissued.

3.Subsequentmeasurementanddeterminationofprofitorloss

(1)Long-termequityinvestmentsaccountedforusingthecostmethodTheCompanyaccountsforthelong-termequityinvestmentsofthesubsidiariesusingthecostmethod,unlesstheseinvestmentsmeettheheld-for-saleconditions.Exceptforcashdividendsorprofitdistributionsdeclaredbutundistributedincludedinthepriceorconsiderationactuallypaidonacquisitionofinvestments,theCompanyrecognizesitscashdividendsorprofitdistributionsdeclaredbytheinvesteeasinvestmentincomeinthecurrentperiod.

(2)Long-termequityinvestmentsaccountedforusingtheequitymethodThelong-termequityinvestmentsofassociatesandjointventuresareaccountedforusingtheequitymethod.Wheretheinitialinvestmentcostofalong-termequityinvestmentexceedstheCompany’sinterestinthefairvaluesoftheinvestee’sidentifiablenetassetsattheacquisitiondate,noadjustmentismadetotheinitialinvestmentcostofthelong-termequityinvestment.WheretheinitialinvestmentcostislessthantheCompany’sinterestinthefairvaluesoftheinvestee’sidentifiablenetassetsattheacquisitiondate,thedifferenceischargedtoprofitorlossforthecurrentperiod,andthecostofthelong-termequityinvestmentisadjustedaccordingly.TheCompanyrespectivelyrecognizesitsshareofthenetprofitsorlossesandothercomprehensiveincomemadebytheinvesteeasinvestmentincomeorlossesandothercomprehensiveincome,andadjuststhecarryingamountofthelong-termequityinvestmentaccordingly.Thecarryingamountofthelong-termequityinvestmentisreducedbytheportionofanyprofitdistributionsorcashdividendsdeclaredbytheinvesteethatisattributedtotheCompany.TheCompanyadjuststhecarryingamountofthelong-termequityinvestmentforotherchangesinowner’sequityoftheinvesteeotherthannetprofitsorlosses,othercomprehensiveincomeandprofitdistributions(“changesinotherowners’equity”),andincludesthecorrespondingadjustmentinowner’sequity.TheCompanyrecognizesitsshareoftheinvestee’snetprofitsorothercomprehensiveincomeandchangesinotherowners’equityaftermakingappropriateadjustmentsbasedonthefairvalueoftheinvestee’sidentifiableassetsatthedateacquisitioninaccordancewithitsaccountingpoliciesandperiod.ForunrealizedprofitsorlossesresultingfromintragrouptransactionsbetweentheCompanyandassociatesorjointventures,theportionattributabletotheCompanyiseliminated,andbasedonthis,theinvestmentincomeisrecognized,unlesstheinvestedorsoldassetsconstitutethebusiness.TheimpairmentlossofassetsintheunrealizedlossesresultingfromintragrouptransactionsbetweentheCompanyandtheinvesteeisfully

recognized.TheCompanydiscontinuesrecognizingitsshareofnetlossesoftheassociateorjointventureafterthecarryingamountofthelong-termequityinvestmenttogetherwithanylong-termintereststhatinsubstanceformpartoftheCompany’snetinvestmentintheassociateorjointventurearereducedtozero,excepttotheextentthattheCompanyhasincurredobligationstoassumeadditionallosses.Wheretheassociateorjointventuremakesnetprofitssubsequently,theCompanyresumesrecognizingitsshareofthoseprofitsonlyafteritsshareoftheprofitsequalstheshareoflossesnotrecognized.

(3)Disposaloflong-termequityinvestmentsOndisposalofalongtermequityinvestment,thedifferencebetweentheproceedsactuallyreceivedandthecarryingamountisrecognizedinprofitorlossforthecurrentperiod.If,onpartialdisposaloflong-termequityinvestmentsaccountedforusingtheequitymethod,theremainingequityisstillaccountedforusingtheequitymethod,theportionpreviouslyincludedinothercomprehensiveincomeisaccountedforonapro-ratabasis,withthesamebasisastherelevantassetsorliabilitiesdirectlydisposedofbytheinvestee,andchangesinotherowners’equityaretransferredtoprofitorlossforthecurrentperiodonapro-ratabasis.WhentheCompanylosesjointcontrolorsignificantinfluenceontheinvesteeduetodisposalofequityinvestmentsorotherreasons,theoriginalequityinvestmentincludedinothercomprehensiveincomeduetotheuseofequitymethodisaccountedforonsamebasisastherelevantassetsorliabilitiesdirectlydisposedofbytheinvesteewhentheequitymethoddiscontinues,andthechangesinotherowners’equityarefullytransferredtoprofitorlossforthecurrentperiodwhentheequitymethoddiscontinues.WheretheCompanylosescontrolovertheinvesteeduetodisposalofpartialequityinvestments,ifinpreparingseparatefinancialstatements,theCompanycanexercisejointcontrolorsignificantinfluenceontheinvesteebyvirtueofitsremainingequity,theremainingequityswitchestotheequitymethodforaccounting,andisadjustedasifitisaccountedforusingtheequitymethodsinceacquisition.Othercomprehensiveincomerecognizedpriortoacquisitionofthecontrolontheinvesteeiscarriedforwardproportionallyonthesamebasisastheinvestee’sdirectdisposalofrelatedassetsorliabilities,andchangesinotherowners’equityrecognizedusingtheequitymethodaretransferredtoprofitorlossforthecurrentperiodonapro-ratabasis;iftheCompanycannotexercisejointcontrolorsignificantinfluenceontheinvesteebyvirtueofitsremainingequity,theremainingequityisrecognizedasfinancialassets,andthedifferencebetweenthefairvalueandthecarryingamountonthedatewhentheCompanylosescontrolisrecognizedinprofitorlossforthecurrentperiod,andothercomprehensiveincomeandchangesinotherowners’equityrecognizedpriortoacquisitionofthecontrolontheinvesteearefullycarriedforward.

Wherealltransactionsfromdisposalofequityinvestmentsinasubsidiarythroughmultipletransactionsbystepsuntilthelossofcontrolbelongtoasinglepackage,theCompanyshallaccountsforeachtransactionasadisposalofequityinvestmentsinasubsidiaryandthelossofcontrol;however,thedifferencebetweentheproceedsfromeachdisposalbeforelossofcontrolandthecarryingamountofthelong-termequityinvestmentscorrespondingtotheequitydisposedofisfirstrecognizedinothercomprehensiveincomeinseparatefinancialstatementsandthentransferredtotheprofitorlossintheperiodinwhichthecontrolislost.Wherealltransactionsdoesnotbelongtoasinglepackage,theCompanyaccountsforeachtransactionrespectively.

23.Investmentproperties

MeasurementofinvestmentpropertiesMeasuredatcostDepreciationoramortizationmethods

TheCompany’sinvestmentpropertyispropertyheldtoearnrentalsorforcapitalappreciationorboth,includinglanduserightsthathavebeenleasedout,landuserightsthatareheldandreadtobetransferredafterappreciation,andbuildingsthathavebeenleasedout(includingthosethatareavailableforletafterbeingbuiltbytheCompanyitselforcompletionofdevelopmentactivities,andarebeingbuiltorinprogressforletinthefuture).TheCompanymeasurestheexistinginvestmentpropertiesusingthecostmodel.SubsequentcostsincurredforaninvestmentpropertyareincludedinthecostoftheinvestmentpropertywhenitisprobablethattheassociatedeconomicbenefitswillflowtotheCompanyandthecostoftheassetcanbemeasuredreliably.Subsequentcoststhatfailtomeettherecognitioncriteriaabovearerecognizedinprofitorlossintheperiodinwhichtheyareincurred.Forinvestmentpropertiesmeasuredusingcostmodelformeasurement-thebuildingsavailableforletfollowsthesamedepreciationpoliciesasthoseoftheCompany’sfixedassets,andlanduserightsavailableforletfollowthesameamortizationpoliciesasthoseofintangibleassets.

24.Fixedassets

(1)RecognitionoffixedassetsFixedassetsareheldforuseintheproductionorsupplyofgoodsorservices,forrentaltoothers,orforadministrativepurposes,andhaveusefullivesmorethanoneaccountingyear.Anfixedassetisrecognizedonlywhenbothofthefollowingconditionsaremet:(1)itisprobablethateconomicbenefitsassociatedwiththefixedassetwillflowtotheenterprise;and(2)thecostoffixedassetscanbemeasuredreliably.AfixedassetoftheCompanyisinitiallymeasuredatitscost,andindeterminingthecostofafixedasset,theCompanyconsiderstheeffectofanyexpectedcostsofabandoningtheassetattheendofitsuse.SubsequentexpendituresincurredforafixedassetareincludedinthecostofthefixedassetwhenitisprobablethattheassociatedeconomicbenefitswillflowtotheCompanyandthecostoftheassetcan

bemeasuredreliably;thecarryingamountoftheparttobereplacedisderecognized;allofothersubsequentexpendituresarerecognizedinprofitorlossintheperiodinwhichtheyareincurred.

(2)MethodofDepreciation

Category	Methodofdepreciation	Estimatedusefullife(years)	Residualvaluerate	Annualdepreciationrate(%)
Buildings	Straight-linemethod	20	10	4.50
Machineryequipment	Straight-linemethod	5-10	10	9-18
Auxiliaryproductionequipment	Straight-linemethod	5-10	10	9-18
Transportationequipment	Straight-linemethod	5	10	18
Mouldequipment	Straight-linemethod	3	10	30
Officeequipment	Straight-linemethod	3-5	10	18-30
Computerequipment	Straight-linemethod	3-5	10	18-30
Otherequipment	Straight-linemethod	5	10	18

TheCompanyprovidesfordepreciationoffixedassetsbycategoryusingthestraight-linemethod,anddeterminesthedepreciationrateonthecategory,estimatedusefullifeandestimatednetresidualvalueoffixedassets.Forfixedassetswiththeprovisionforimpairment,thedepreciationamountwillbedeterminedinthefuturebasedonthecarryingamountafterdeductionoftheprovisionforimpairmentandremainingusefullife.Whereindividualcomponentpartsofanitemoffixedassethavedifferentusefullivesorprovidebenefitstotheenterpriseindifferentmannersthusnecessitatinguseofdifferentdepreciationratesormethods,thedepreciationofthefixedassetisrespectivelyprovided.TheCompanyadoptsadepreciationpolicyforthefixedassetsleasedinunderfinancingleaseswhichisconsistentwiththatforitsownedfixedassets.Ifthereisreasonablecertaintythatthelesseewillobtainownershipoftheleasedasset,theleasedassetisdepreciatedoveritsusefullife;ifthereisnoreasonablecertaintythatthelesseewillobtainownershipoftheleasedassetbytheendoftheleaseterm,theleasedassetisdepreciatedovertheshorteroftheleasetermanditsusefullife.Depreciationmethods,periods,residualvaluerateandannualdepreciationratesoffixesassetsareasfollows:

(3)Identificationbasis,pricinganddepreciationmethodsoffixedassetsleasedinunderfinancingleasesIftheclausesoftheleaseagreementmadeandenteredintobyandbetweentheCompanyandthelessorstipulateoneofthefollowingconditions,therelevantassetwillberecognizedastheassetleasedinunderfinancinglease:(1)theownershipoftheleasedassetbelongstotheCompanyaftertheleasetermexpires;

(2)theCompanyhastheoptiontopurchasetheassetatthepricemuchlowerthanthefairvalueoftheassetatthetimeofexerciseofoption;(3)theleasetermisforthemajorpartoftheusefullifeofthe

leasedasset;(4)thepresentvalueoftheminimumleasepaymentattheinceptionoftheleaseisnotsignificantlydifferentfromthefairvalueoftheasset;or(5)theleasedassetisofaspecializednaturesuchthatonlythelesseecanusethemwithoutmajormodificationsbeingmade.Attheinceptionofthelease,theCompanyrecordstheleasedassetatanamountequaltothelowerofthefairvalueoftheleasedassetandthepresentvalueoftheminimumleasepayments,andrecognizesalong-termpayableatanamountequaltotheminimumleasepayments.Thedifferencebetweentherecordedamountoftheleasedassetandtherecordedamountofthepayableisaccountedforasunrecognizedfinancecharge.

(4)Disposaloffixedassets

Afixedassetisderecognizedwhenitisdisposedorwhennofutureeconomicbenefitsareexpectedtobegeneratedfromitsuseordisposal.Whenafixedassetissold,transferred,retiredordamaged,theCompanyrecognizestheamountofanyproceedsondisposalnetofthecarryingamountandrelatedtaxesandfeeinprofitorlossforthecurrentperiod.

25.Constructioninprogress

Aconstructioninprogressismeasuredattheactualcostincurred.Actualcostincludesconstructionandinstallationfees,qualifyingborrowingcostsandothernecessaryexpensesnecessarilyincurredforbringingtheassettoworkingconditionforitsintendeduse.TheconstructioninprogressistransferredtofixedassetswhenmeetingworkingconditionsforitsintendeduseandtheCompanybeginstomakeprovisionfromnextmonth.

26.Borrowingcosts

1.RecognitionofcapitalizationofborrowingcostsBorrowingcostsincurredbytheCompanythataredirectlyattributabletotheacquisition,constructionorproductionofaqualifyingassetarecapitalizedaspartofthecostoftherelevantasset.Theamountsofotherborrowingcostsincurredarerecognizedasanexpenseintheperiodinwhichtheyareincurred.Qualifyingassetsareassets(fixedassets,investmentproperty,inventories,etc.)thatnecessarilytakeasubstantialperiodoftimeforacquisition,constructionorproductiontogetreadyfortheirintendeduseorsale.

2.CapitalizationperiodofborrowingcostsCapitalizationperiodistheperiodfromthedateofcommencementofcapitalizationofborrowingcoststothedateofcessationofcapitalization,excludinganyperiodoverwhichcapitalizationissuspended.Thecapitalizationofborrowingcostscancommenceonlywhenallofthefollowingconditionsaresatisfied:

(1)expendituresfortheassetarebeingincurred,andsuchexpendituresincludethoseexpendituresincurredfortheacquisition,constructionorproductionofthequalifying

assetthathaveresultedinpaymentsofcash,transferofnon-cashassets,ortheassumptionofinterest-bearingliabilities;

(2)borrowingcostsarebeingincurred;and

(3)activitiesrelatingtotheacquisition,constructionorproductionoftheassetthatarenecessarytopreparetheassetforitsintendeduseorsalehavecommenced.Whenthequalifyingassetbeingacquired,constructedorproducedhasbecomereadyforitsintendeduseorsale,thecapitalizationceases.

3.Periodoverwhichcapitalizationissuspended

Capitalizationofborrowingcostsissuspendedduringperiodsinwhichtheacquisition,constructionorproductionofaqualifyingassetisinterruptedabnormally,whentheinterruptionisforacontinuousperiodofmorethan3months.However,capitalizationofborrowingcostscontinueswhentheinterruptionisanecessarypartoftheprocessofpreparingthatassetforitsintendeduseorsale.Theborrowingcostsincurredduringtheseperiodsofinterruptionarerecognizedasanexpenseforthecurrentperiod,andthecapitalizationofborrowingcostscontinuesuntiltheacquisition,constructionorproductionofthatassetisresumed.

4.CalculationmethodsofrateandamountofcapitalizationofborrowingcostsWherefundsareborrowedunderaspecific-purposeborrowingfortheacquisition,constructionorproductionofaqualifyingasset,theamountofborrowingcoststobecapitalizedistheactualborrowingcostsincurredforthecurrentperiodlessanybankinterestearnedfromdepositingtheborrowedfundsbeforebeingusedontheassetoranyinvestmentincomeonthetemporaryinvestmentofthosefunds.Wherefundsareborrowedundergeneral-purposeborrowingsandareutilizedfortheacquisition,constructionorproductionofaqualifyingasset,theCompanydeterminestheamountofborrowingcoststobecapitalizedonsuchborrowingsbymultiplyingacapitalizationrateoftheutilizedgeneral-purposeborrowingsbytheweightedaverageoftheexcessamountsofcumulativeexpendituresontheassetoverandabovetheamountsofspecific-purposeborrowings.Thecapitalizationrateistheweightedaverageoftheactualinterestratesapplicabletothegeneral-purposeborrowings.Duringthecapitalizationperiod,exchangedifferencesrelatedtotheprincipalandinterestonaspecific-purposeborrowingdenominatedinforeigncurrencyarecapitalizedaspartofthecostofthequalifyingasset.Theexchangedifferencesarisingfromforeigncurrencyborrowingsandinterestthereonotherthanspecific-purposeborrowingsdenominatedinforeigncurrencyarerecognizedinprofitorlossforthecurrentperiod.

27.Biologicalassets

28.Oilandgasassets

29.Useofrightassets

30.Intangibleassets

(1)Pricingmethods,usefullivesandimpairmenttests

1.Pricingmethodsofintangibleassets

(1)TheCompanyinitiallymeasuresanintangibleassetatcostofacquisition;Thecostofaseparatelyacquiredintangibleassetcomprisesitspurchaseprice,relatedtaxesandanydirectlyattributableexpenditureforpreparingtheassetforitsintendeduse.

(2)SubsequentmeasurementTheCompanyanalyzesandassessestheusefullifeofanintangibleassetonitsacquisition.Afinite-livedintangibleassetisamortizedduringtheperiodoverwhichtheassetgenerateseconomicbenefitsfortheenterprise;anintangibleassetisregardedashavinganindefiniteusefullifewhenthereisnoforeseeablelimittotheperiodoverwhichtheassetisexpectedtogenerateeconomicbenefitsfortheenterprise,andisnotbeamortized.

2.Estimatedusefullivesoffinite-livedintangibleassets

Item	Estimatedusefullife	Amortizationmethods	Residualvaluerate	Basis
Software	5-10	straight-line	None	Estimatedperiodofbenefit
Landuserights	50	straight-line	None	Certificateoflanduserights
Patentrights	10	straight-line	None	Rightterm
Nonpatentedtechnology	10	straight-line	None	Estimatedperiodofbenefit

3.Basisforjudgementofanintangibleassetwithindefiniteusefullifeandproceduresfor

reviewofusefullifeTheCompanyreviewstheusefullifeoftheindefiniteintangibleassetsattheendofeachperiod.Uponreview,theusefullifeofintangibleassetsisstillindefinite.

(2)Accountingpoliciesforinternalresearchanddevelopmentexpenditure

1.SpecificcriteriaforaninternalresearchanddevelopmentprojectthatareclassifiedintotheresearchphaseandthedevelopmentphaseExpenditureonaninternalresearchanddevelopmentprojectisclassifiedintoexpenditureontheresearchphaseandexpenditureonthedevelopmentphase.Researchphase:isthestageoforiginalandplannedinvestigationandactivityundertakenwiththeprospectofgainingnewscientificortechnicalknowledgeandunderstanding.Developmentphase:isthestageoftheapplicationofresearchfindingsorotherknowledgetoaplanordesignfortheproductionofneworsubstantiallyimprovedmaterials,devicesorproductsetc.beforethestartofcommercialproductionoruse.

2.Specificcriteriaofexpenditureonthedevelopmentphasequalifyingforcapitalization

Expenditureontheresearchphaseisrecognizedinprofitorlossfortheperiodinwhichitisincurred.ExpenditureonthedevelopmentphaseisrecognizedasanintangibleassetonlywhentheCompanydemonstratesallofthefollowing;otherwise,itisrecognizedinprofitorlossforthecurrentperiod:

(1)thetechnicalfeasibilityofcompletingtheintangibleassetsothatitwillbeavailableforuseorsale;

(2)theintentiontocompletetheintangibleassetanduseorsellit;

(3)howtheintangibleassetwillgenerateeconomicbenefits.Amongotherthings,theCompanycandemonstratetheexistenceofamarketfortheoutputoftheintangibleassetortheintangibleassetitselfor,ifitistobeusedinternally,theusefulnessoftheintangibleasset;

(4)theavailabilityofadequatetechnical,financialandotherresourcestocompletethedevelopmentandtheabilitytouseorselltheintangibleasset;and

(5)itsabilitytomeasurereliablytheexpenditureattributabletotheintangibleassetduringitsdevelopmentphase.IftheCompanyfailstodiscriminatebetweenexpenditureontheresearchphaseandexpenditureonthedevelopmentphase,allexpendituresonresearchanddevelopmentarerecognizedintheprofitforthecurrentperiod.

31.Impairmentoflong-termassets

Whereanyindicationexiststhatlong-termequityinvestments,investmentpropertiesmeasuredatthecostmodel,fixedassets,constructioninprogress,intangibleassetswithfiniteusefullifeandotherlong-termassetsmaybeimpairedatthebalancesheetdate,theCompanyperformsanimpairmenttestthereon.Theresultoftheimpairmenttestshowsthattherecoverableamountofanassetislowerthanitscarryingamount,thedifferenceismadetheprovisionforimpairmentandincludedintheimpairmentloss.Therecoverableamountofanassetisthehigherofitsfairvaluelesscoststosellandthepresentvalueofthefuturecashflowsexpectedtobederivedfrom

theasset.Theprovisionforimpairmentofassetsiscalculatedandrecognizedforanindividualasset,andifitisnotpossibletoestimatetherecoverableamountoftheindividualasset,theCompanydeterminestherecoverableamountoftheassetgrouptowhichtheassetbelongs.Anassetgroupisthesmallestidentifiablegroupofassetsthatgeneratescashinflows.Goodwill,indefinite-livedintangibleassetsandintangibleassetswhichdonotmeettheworkingconditionsforitsusearetestedforimpairmentatleastattheendofeachyear,irrespectiveofwhetherthereisanyindicationthattheassetmaybeimpaired.ForthepurposeofimpairmenttestingoftheCompany,thecarryingamountofgoodwillgeneratedinabusinesscombinationis,fromtheacquisitiondate,allocatedonareasonablebasistoeachoftherelatedassetgroups.Ifitisnotpossibletoallocatetotherelatedassetgroups,itisallocatedtoeachoftherelatedsetsofassetgroups.Eachoftherelatedassetgroupsorsetsofassetgroupsshallbeanassetgrouporsetofassetgroupthatisabletobenefitfromthesynergiesofthebusinesscombination.Intestinganassetgrouporasetofassetgroupstowhichgoodwillhasbeenallocatedforimpairment,theremaybeanindicationthatarelatedassetgrouporsetofassetgroupsmaybeimpaired.Insuchcircumstances,theCompanyfirstlyteststheassetgrouporthesetofassetgroupsexcludingtheamountofgoodwillallocatedforimpairment,calculatesitsrecoverableamount,comparesanimpairmentlossrecoverableamountwiththerelatedcarryingamountandrecognizesanyimpairmentloss.Then,theCompanyteststheassetgrouporasetofassetgroupstowhichgoodwillhasbeenallocatedforimpairmentandcomparesitscarryingamountandrecoverableamount.Whentherecoverableamountislessthanitscarryingamount,theamountofimpairmentlossfirstreducesthecarryingamountofanygoodwillallocatedtotheassetgrouporsetofassetgroups,andthenreducesthecarryingamountofotherassets(otherthangoodwill)withintheassetgrouporsetofassetgroups,prorataonthebasisofthecarryingamountofeachasset.Onceanimpairmentlossontheassetaboveisrecognized,itwillnotbereversedinasubsequentperiod.

32.Long-termprepaidexpenses

Long-termprepaidexpensesmeanthosewhichhavebeenincurredbutshouldbeamortizedinthecurrentperiodandthesubsequentperiodsofmorethanoneyear.Theamortizationperiodandmethodsofexpensesareshownasfollows:

Item	Amortizationmethods	Amortizationperiod
Decorationfees	straight-line	Periodofbenefit
Others	straight-line	Periodofbenefit

33.Contractliabilities

AccountingpoliciesadoptedfromJanuary1,2020

TheCompanypresentsthecontractassetsorliabilitiesinthebalancesheetbasedontherelationshipbetweenperformanceobligationsandcustomerpayments.TheCompanypresentstheobligationstotransfergoodsorofferservicestocustomersastheconsiderationreceivedorreceivablefromcustomersthecontractliabilities.TheCompanyliststhecontractassetsandliabilitiesunderthesamecontractasnetamount.

34.Employeebenefits

(1)Accountingtreatmentofshort-termbenefits

TheCompanyrecognizestheshort-termbenefitsactuallyincurredduringtheaccountingperiodwhentheemployeesservetheCompanyasliabilities,andincludesameaspartofthecostofrelatedassetsorinprofitorlossforthecurrentperiod.TheemployeebenefitscorrespondingtopaymentsofsocialsecuritycontributionsandhousingfundsforemployeesbytheCompanyandtheappropriationtolaborunionfundsandemployeeeducationfeesaredeterminedonsuchprovisionbasisandatsuchprovisionrateasstipulatedduringtheperiodwhentheemployeesprovideservicesfortheCompany.ThestaffwelfareincurredbytheCompanyisstatedastheamountactuallyincurredandrecordedintoprofitorlossorcostofrelatedassetsintheperiodinwhichtheyareactuallyincurred;non-monetarybenefitsaremeasuredatfairvalue.

(2)Accountingtreatmentofpost-employmentbenefits

(1)DefinedcontributionplansTheCompanypaysbasicendowmentinsuranceandunemploymentinsuranceforemployeespursuanttotherelevantregulationsofthelocalgovernment.Theamountspayabletherefor,duringtheaccountingperiodwhentheemployeesservetheCompany,arecalculatedaccordingtothepaymentbaseandproportionstipulatedbythelocalregulations,whicharerecognizedinprofitorlossforthecurrentperiodorthecostofrelatedassetsasliabilities.TheCompanypaysacertainproportionofthetotalwagesofanemployeetotheannuityplan/localsocialinsuranceinstitution,andthecorrespondingexpensesarerecognizedinprofitorlossforthecurrentperiodorthecostofrelatedassets.

(2)DefinedbenefitplansTheCompany,accordingtotheformuladeterminedbytheexpectedcumulativebenefitunitmethod,attributesthebenefitobligationsarisingfromthedefinedbenefitplantotheserviceperiodoftheemployees,andrecognizesthemintheprofitorlossforthecurrentperiodorthecostofrelatedassets.Thedeficitorsurplusformedbythepresentvalueofobligationsinthedefinedbenefit

planminusthefairvalueofassetsthereinisrecognizedasthenetliabilitiesornetassetsofthedefinedbenefitplan.Ifthedefinedbenefitplanhassurplus,theCompanymeasuresthenetassetsofthedefinedbenefitplanaccordingtothelowerofthesurplusandtheupperlimitofassetsinthedefinedbenefitplan.Allobligationsinthedefinedbenefitplan,includingobligationsexpectedtobepaidwithin12monthsaftertheendoftheannualreportingperiodforemployeeservices,arediscountedbasedonthemarketyieldoftreasurybondsorhigh-qualitycorporatebondsinactivemarketsthatmatchthetermandcurrencyoftheobligationsinthedefinedbenefitplanonthebalancesheetdate.Theservicecostgeneratedbythedefinedbenefitplanandthenetinterestofthenetliabilitiesornetassetsofthedefinedbenefitplanarerecognizedintheprofitorlossforthecurrentperiodorthecostofrelatedassets;changesarisingfromthere-measurementofnetliabilitiesornetassetsofthedefinedbenefitplanareincludedinothercomprehensiveincomes,andarenotbeconvertedbacktoprofitorlossinsubsequentaccountingperiods.Attheendoftheoriginaldefinedbenefitplan,thepartoriginallyincludedinothercomprehensiveincomesisfullycarriedforwardtounappropriatedprofitwithinthescopeofequity.Inthesettlementofthedefinedbenefitplan,thegainorlossofsettlementisrecognizedaccordingtothedifferencebetweenthepresentvalueoftheobligationsinthedefinedbenefitplanandthesettlementpricedeterminedonthesettlementdate.

(3)Accountingtreatmentofterminationbenefits

TheCompanyrecognizestheemploymentcompensationliabilitiesgeneratedbyterminationbenefitsandrecordsthemintotheprofitorlossforthecurrentperiodontheearlierof:whentheCompanycannotunilaterallywithdrawtheseverancebenefitsprovidedasaresultofthelaborrelationshipterminationplanorlayoffproposal,orwhenitrecognizesthecostsorexpensesrelatedtotherestructuringoftheseverancebenefitspayment,

(4)Accountingtreatmentofotherlong-termemployeebenefits

35.Leaseliabilities

36.Provisions

TheCompanyrecognizesanobligationrelatedtoacontingencyaprovisionwhenallofthefollowingconditionsaresatisfied:

(1)theobligationisapresentobligationoftheCompany;

(2)itisprobablethatanoutflowofeconomicbenefitsfromtheCompanywillberequiredtosettletheobligation;and

(3)theamountoftheobligationcanbemeasuredreliably.

Provisionsareinitiallymeasuredatthebestestimateoftheexpenditurerequiredtosettletherelatedpresentobligation.Factorspertainingtoacontingencysuchastherisks,uncertaintiesandtimevalueofmoneyaretakenintoaccountasawholewhentheCompanyreachesthebestestimate.Wheretheeffectofthetimevalueofmoneyismaterial,thebestestimateisdeterminedbydiscountingtherelatedfuturecashoutflows.Wherethereisacontinuousrangeof[possibleoutcomesfor]theexpenditurerequired,andeachpossibleoutcomeinthatrangeisaslikelyasanyother,thebestestimateisthemid-pointofthatrange.Underanyothercircumstances,thebestestimateisaccountedforasfollows:

?wherethecontingencyinvolvesasingleitem,thebestestimateisthemostlikelyoutcome.?wherethecontingencyinvolvesalargepopulationofitems,thebestestimateisdeterminedbyweightingallpossibleoutcomesbytheirassociatedprobabilities.Whereallorsomeoftheexpenditurerequiredtosettleanestimatedliabilityisexpectedtobereimbursedbyathirdparty,thereimbursementisrecognizedasaseparateassetwhenitisvirtuallycertainthatreimbursementwillbereceived.Theamountrecognizedforthereimbursementdoesnotexceedthecarryingamountoftheestimatedliability.TheCompanyreviewsthecarryingamountofaprovisionatthebalancesheetdate.Wherethereisclearevidencethatthecarryingamountofaprovisiondoesnotreflectthecurrentbestestimate,thecarryingamountisadjustedtothecurrentbestestimate.

37.Share-basedpayment

Ashare-basedpaymentoftheCompanyisatransactioninwhichtheCompanygrantsequityinstruments,orincursliabilitiesforamountsthataredeterminedbasedonthepriceofequityinstruments,inreturnforservicesrenderedbyemployeesorotherparties.Ashare-basedpaymentoftheCompanyisclassifiedaseitheranequity-settledshare-basedpaymentoracash-settledshare-basedpayment.

1.Equity-settledshare-basedpaymentandequityinstruments

Anequity-settledshare-basedpaymentinexchangeforservicesreceivedfromtheemployeesismeasuredatthefairvalueofequityinstrumentsgrantedtotheemployees.Iftherightundertheshare-basedpaymentvestsimmediatelyfollowingthegrant,theCompany,ongrantdate,recognizesrelatedcostsorexpensesatanamountequaltothefairvalueoftheequityinstruments,withacorrespondingincreaseincapitalreserve.Iftherightsunderashare-basedpaymentdonotvestuntilthecompletionofservicesforavestingperiod,oruntiltheachievementofaspecifiedperformancecondition,ateachbalancesheetdateduringthevestingperiod,theCompanymakesthebestestimateofthe

numberofequityinstrumentsexpectedtovest,andbasedonthis,recognizestheservicesreceivedinthecurrentperiodintherelatedcostsorexpensesatanamountequaltothefairvalueonthegrantdate,withacorrespondingincreaseincapitalreserve.Ifthetermsofequity-settledshare-basedpaymentaremodified,theservicesreceivedarerecognizedatleastpursuanttotheunmodifiedterms.Inaddition,anymodificationsthatincreasethefairvalueoftheequityinstruments,orchangesthatarebeneficialtoemployeesonthemodificationdatearerecognizedasanincreaseinservices.Ifthegrantedequityinstrumentiscancelledwithinthevestingperiod,theCompanytreatsthecancellationofequityinstrumentgrantedastheacceleratedexercise,andtheamounttoberecognizedduringtheremainingvestingperiodisimmediatelychargedtoprofitorlossforthecurrentperiod,andthecapitalreserveisrecognizedatthesametime.However,ifanewequityinstrumentisgranted,andonthegrantdatethereof,isdeemedtoreplacethecancelledequityinstrument,thenthesubstituteequityinstrumentgrantisaccountedforpursuanttothetermsandconditionsforaccountingfororiginalequityinstrument.

2.Cash-settledshare-basedPaymentandequityinstrumentsAcash-settledshare-basedpaymentismeasuredatthefairvalueoftheliabilityincurred,beingaliabilitywhichisdeterminedbasedonthepriceoftheCompany’ssharesorotherequityinstruments.Iftherightundertheshare-basedpaymentvestsimmediatelyfollowingthegrant,theCompany,ongrantdate,recognizesrelatedcostsorexpensesatanamountequaltothefairvalueoftheliabilitiesassumedwithacorrespondingincreaseinliabilities.Iftherightsunderashare-basedpaymentdonotvestuntilthecompletionofservicesforavestingperiod,oruntiltheachievementofaspecifiedperformancecondition,ateachbalancesheetdateduringthevestingperiod,theCompanymakesthebestestimateofthenumberofequityinstrumentsexpectedtovest,andbasedonthis,recognizestheservicesreceivedinthecurrentperiodintherelatedcostsorexpensesatanamountequaltothefairvalueoftheliabilitiesassumedbytheCompany,andincludesameintheliabilitiesaccordingly.Untiltheliabilityissettled,theCompanyremeasuresthefairvalueoftheliabilityateachbalancesheetdateandatthedateofsettlement,withchangesrecognizedinprofitorlossforthecurrentperiod.

38.Preferredshares,perpetualbondsandothersfinancialinstruments

39.RevenueTheaccountingpoliciesadoptedfortherecognitionandmeasurementofrevenue

AccountingpoliciesadoptedfromJanuary1,2020

1.Theaccountingpoliciesadoptedfortherecognitionandmeasurementofrevenue

TherevenueisrecognizedatthetimewhentheCompanyhasdischargedtheperformanceobligationsinthecontract,thatis,whenthecustomerobtainsthecontroloftherelatedgoodsorservices.Obtainmentofthecontroloftherelatedgoodsorservicesmeanstheabilitytodirecttheuseofsuchgoodsandservicesandobtainsubstantiallyallofeconomic

benefitsfromthem.Ifthecontracthastwoormultipleperformanceobligations,theCompanyallocatesthetransactionpricetoeachindividualperformanceobligationontheinceptionofthecontractbyreferencetorelativestandalonesellingpricesofgoodsorservicespromisedthereby.TheCompanymeasuresrevenuebasedonthetransactionpriceallocatedtoeachindividualperformanceobligation.ThetransactionpriceistheamountofconsiderationtowhichtheCompanyisentitledarisingfromthetransferofgoodsorservicestothecustomer,excludingtheamountcollectedonbehalfofathirdpartyandexpectedtobereturnedtothecustomer.TheCompanydeterminesthetransactionpricewithreferencetothecontracttermsandinconjunctionwithpastcustomarypractices,andindoingso,considersvariableconsiderationandsignificantfinancingcomponents,non-cashconsideration,considerationpayabletocustomersandotherfactors.TheCompanydeterminesthetransactionpriceincludingvariableconsiderationtotheextentthat,itishighlyprobablethatitsinclusionwillnotresultinasignificantrevenuereversalofaccumulativelyrecognizedrevenueinthefuturewhentheuncertaintyhasbeensubsequentlyresolved.Ifthereisasignificantfinancingcomponentinthecontract,theCompanydeterminesthetransactionpricebasedonthepresumedamountpayableincashwhenthecustomerobtainsthecontrolofgoodsorservices,andamortizesthedifferencesbetweenthetransactionpriceandthecontractconsiderationusingtheactualinterestmethodwithinthetermofthecontract.Whenmeetingoneofthefollowingcriteria,itbelongstotheobligationperformedovertime,otherwiseitconstitutestheobligationperformedatapointintime:

?thecustomerobtainsandconsumestheeconomicbenefitsgeneratedbytheCompany’sperformancewhentheCompanyperformsthecontract.?thecustomercancontroltheproductsinprogressintheperformanceofthecontractbytheCompany.?theproductsproducedintheprocessoftheCompany’sperformancehaveirresplaceableuses,andtheCompanyhastherighttocollectpaymentforthecumulativeperformancethathasbeencompleteduptodatethroughoutthetermofthecontract.Fortheobligationperformedovertime,theCompanyrecognizestherevenuebasedontheperformanceprogressovertime,unlesstheperformanceprogresscannotbereasonablydetermined.TheCompanydeterminestheprogressofperformanceobligationbytakingthenatureofgoodsorservicesandusingtheoutput/inputmethod.Whentheperformanceprogresscannotbereasonablydetermined,andthecostsincurredareexpectedtoberecoverable,theCompanyrecognizesrevenuetotheextentofcostsincurreduntiltheperformanceprogresscanbereasonablydetermined.

Fortheobligationperformedatapointintime,theCompanyrecognizestherevenueatthepointintimewhenthecustomerobtainsthecontroloftherelatedgoodsandservices.Whenjudgingwhetherthecustomerhasobtainedthecontrolofgoods,theCompanyconsidersthefollowingssigns:

?theCompanyhasthecurrentrighttoreceivepaymentforsuchgoodsorservices,thatis,thecustomerhasthecurrentobligationtomakepaymentforsuchgoodsorservices;?theCompanyhastransferredthelegalownershipofsuchgoodstothecustomer,thatis,thecustomerhasthelegalownershipofsuchgoods;?theCompanyhastransferredsuchgoodstothecustomerphysically,thatis,thecustomerhastakenpossessionofsuchgoodsphysically.?theCompanyhastransferredmajorrisksandrewardsofsuchgoodstothecustomer,thatis,thecustomerhasobtainedmajorrisksandrewardsofsuchgoods;and?thecustomerhasacceptedsuchgoodsorservices.

2.Specificmethodsofrevenuerecognition

TheCompanyorganizestheproductionaccordingtothesalescontractssignedwithortheordersplacedbycustomers,andidentifiesthefollowingmodelsbasedondifferentgeographicallocationsofcustomersandinventorymanagementmethods:

(1)GeneralsalesFordomesticsales,theCompanyshipsgoodstothedeliverylocationdesignatedbyacustomer,andrecognizesrevenueafterthecustomerhassignedthereceiptoftheproducts;andforforeignsales,thegoodsaredeliveredaccordingtospecifictradeterms,andtherevenueisrecognizedatapointintimewhenthecontrolistransferred.

(2)SuppliermanagementinventoryUnderthismodel,theCompanyshipsthegoodstothedesignatedwarehouse,thecustomerpicksupthegoodsfromthewarehouse,andtherevenueisrecognizedatapointintimewhenthecontrolistransferred.AccountingpoliciesadoptedpriortoJanuary1,2020

1.Generalprinciplesofrecognitionofrevenuefromthesalesofgoods

(1)theCompanyhastransferredtothebuyerthesignificantrisksandrewardsofownershipofthegoods;

(2)theCompanyretainsneithercontinuingmanagerialinvolvementtothedegreeusuallyassociatedwithownershipnoreffectivecontroloverthegoodssold;

(3)theamountoftherevenuecanbemeasuredreliably;

(4)itisprobablethattheassociatedeconomicbenefitswillflowtotheCompany;and

(5)theassociatedcostsincurredortobeincurredcanbemeasuredreliably.

2.Specificprinciples

Inadditiontomeetingtheabovecriteria,theCompany’srevenuefromsalesofgoodsisrecognizedwhenmeetingthefollowingconditionsinrespectofdifferentmethodsofdeliverytocustomersandacceptancecheck:

(1)thegoodshavebeendeliveredandpassedtheacceptancecheckofthecustomer;and

(2)theCompanyandthecustomerhavecheckedthegoodsbasedonpurchaseorder,andthecustomeragreestomakepaymenttherefor.DifferenceintheaccountingpolicyforrevenuerecognitionarisingfromadoptionofdifferentmodesofoperationforthesamekindofbusinessNone

40.Governmentgrants

1.CategoryGovernmentgrantsaretransferofmonetaryassetsornon-monetaryassetsfromthegovernmenttotheCompanyatnoconsideration.Governmentgrantsareclassifiedintogovernmentgrantsrelatedtoassetsandgovernmentgrantsrelatedtoincome.GovernmentgrantsrelatedtoassetsaregovernmentgrantswhoseprimaryconditionisthattheCompanyshouldpurchase,constructorotherwiseacquirelong-termassets.Governmentgrantsrelatedtoincomearegovernmentgrantsotherthanthoserelatedtoassets.ThespecificstandardbasedonwhichtheCompanyclassifiesagrantasagovernmentgrantrelatedtoassetsisthat:thegrantobtainedbytheCompanyisusedtopurchase,constructorotherwiseacquirelong-termassets.ThespecificstandardbasedonwhichtheCompanyclassifiesagrantasagovernmentgrantrelatedtoincomeisthat:governmentgrantsrelatedtoincomearegovernmentgrantsotherthanthoserelatedtoassets.Whenclassifyingagrantwhosesubsidyobjectisnotclearlyspecifiedinthegovernmentdocumentsasagovernmentgrantrelatedtoassetsoragovernmentgrantrelatedtoincome,theCompanyjudgeswhetherthegrantisusedtopurchase,constructorotherwiseacquirelong-termassets.

2.Recognitiontime

WhentheCompanyactuallyreceivesthegovernmentgrant,agovernmentgrantrelatedtoassetsoftheCompanyisrecognized,andsincethelong-termassetsareavailableforuse,theCompanyequallyamortizesthedeferredincomebasedontheestimatedusefullifeoflong-termassetsandthentransferssametotheprofitorlossforthecurrentperiod.

WhentheCompanyactuallyreceivesthegovernmentgrant,agovernmentgrantrelatedtoincomeoftheCompanyisrecognized,andtheCompanyrecognizesitinthenon-operatingincomeorotherincomeovertheperiodsinwhichtherelatedcostsarerecognizedifthegrantisacompensationforrelatedexpensesorlossestobeincurredbytheCompanyinsubsequentperiods,anddirectlyrecognizesitinthenon-operatingincomeorotherincomeforthecurrentperiodonacquisitionifthegrantisacompensationforrelatedexpensesorlossesincurredbytheCompany.ThegovernmentgrantisrecognizedwhentheCompanymeetstheconditionsattachingtothegovernmentgrantandcanreceivethegovernmentgrant.

3.Accountingtreatment

Thegovernmentgrantsrelatedtoassetsareoffsetagainstthecarryingamountoftherelatedassetsorrecognizedasdeferredincome.Ifagrantisrecognizedasdeferredincome,itischargedtoprofitorlossforthecurrentperiodinareasonableandsystematicmannerwithintheusefullifeofrelatedassets(thegrantrelatedtothedailyactivitiesoftheCompanyisrecognizedinotherincome,otherwiseitisrecognizedinnon-operatingincome);ThegovernmentgrantrelatedtoincomewhichisacompensationforrelatedexpensesorlossestobeincurredbytheCompanyinsubsequentperiodsisrecognizedasthedeferredincomeandchargedtotheprofitorlossesovertheperiodwhenrelatedcostsorlossesarerecognized(thegrantrelatedtothedailyactivitiesoftheCompanyisrecognizedinotherincome,otherwiseitisrecognizedinnon-operatingincome)oroffsetagainstrelatedcostsorlosses;andthegovernmentgrantrelatedtoincomewhichisacompensationforrelatedexpensesorlossestobeincurredbytheCompanyinsubsequentperiodsisdirectlyrecognizedinprofitorlossforthecurrentperiod(thegrantrelatedtothedailyactivitiesoftheCompanyisrecognizedinotherincome,otherwiseitisrecognizedinnon-operatingincome)oroffsetagainstrelatedcostsorlosses.Thepolicy-relatedpreferentialloaninterestdiscountsobtainedbytheCompanyareaccountedforseparatelyaccordingtothefollowingtwocircumstances:

(1)Ifthefinancedepartmentallocatestheinterestdiscountfundstothelendingbank,andthenthelendingbankoffersaloantotheCompanyatthepolicy-basedpreferentialinterestrate,theCompanyrecognizestheloanamountactuallyreceivedastherecordedamountoftheloan,andcalculatestheborrowingcostsaccordingtotheloanprincipalandsuchpolicy-basedpreferentialinterestrate.

(2)IfthefinancedepartmentdirectlyallocatestheinterestdiscountfundstotheCompany,theCompanyoffsetsthecorrespondinginterestsubsidyagainsttherelatedborrowingcosts.

41.Deferredtaxassets/deferredtaxliabilities

Incometaxincludecurrentanddeferredtax.Exceptfortheincometaxarisingfrombusinesscombinationsandtransactionsoreventsrecognizeddirectlyinowners’equity(includingothercomprehensiveincome),theCompanyrecognizescurrenttaxanddeferredtaxinprofitorlossforthecurrentperiod.Thedeferredtaxassetsanddeferredtaxliabilitiesarecalculatedandrecognizedbasedonthedifference(temporarydifference)betweenthetaxbaseofassetsandliabilitiesandthecarryingamountofassetsandliabilities.AdeferredincometaxassetisrecognizedforthedeductibletemporarydifferencetotheextentthatitisprobablethatfuturetaxableprofitswillbeavailableagainstwhichthetemporarydifferencecanbeutilizedAdeferredtaxassetisrecognizedforthecarryforwardofunuseddeductiblelossesandtaxcreditstotheextentthatitisprobablethatfuturetaxableprofitswillbeavailableagainstwhichthedeductiblelossesandtaxcreditscanbeutilized.Adeferredtaxliabilityisrecognizedfortaxabletemporarydifference,exceptforspecialcircumstances.Specialcircumstancesunderwhichthedeferredtaxassetsordeferredtaxliabilitiesarenotrecognizedforthetaxabletemporarydifferenceinclude:

?theinitialrecognitionofgoodwill.?thetransactionoreventthatisnotbusinesscombination,andatthetimeoftheoccurrence,doesnotaffectaccountingprofitortaxableprofit(ordeductibleloss).Adeferredtaxliabilityisrecognizedforthetaxabletemporarydifferencerelatedtoinvestmentsinsubsidiaries,associatesandjointventures,unlesstheCompanyisabletocontrolthetimingofthereversalofthetemporarydifferenceanditisprobablethatthetemporarydifferencewillnotreverseintheforeseeablefuture.Adeferredtaxassetisrecognizedforthetaxabletemporarydifferencerelatedtoinvestmentsinsubsidiaries,associatesandjointventureswhenthetemporarydifferencewillreverseintheforeseeablefutureandtaxableprofitswillbeavailableinthefutureagainstwhichthetemporarydifferencecanbeutilized.Atthebalancesheetdate,deferredtaxassetsanddeferredtaxliabilitiesaremeasuredatthetaxratesthatareexpectedtoapplytotheperiodwhentheassetisrealizedortheliabilityissettled,accordingtotherequirementsoftaxlaws.TheCompanyreviewsthecarryingamountofthedeferredtaxassetsatthebalancesheetdate.TheCompanyreducesthecarryingamountofadeferredtaxassettotheextentthatitisnolongerprobablethatsufficienttaxableprofitswillbeavailableinfutureperiodstoallowthebenefitofthedeferredtaxassettobeutilized.Anysuchreductioninamountisreversedtotheextentthatit

becomesprobablethatsufficienttaxableprofitswillbeavailable.ThecurrenttaxassetsandcurrenttaxliabilitiesareoffsetandpresentedwhentheCompanyhasthestatutoryrighttosettleonanetbasis,intendstosettleonanetbasisortoobtainassetsandsettleliabilitiessimultaneously.Atthebalancesheetdate,deferredtaxassetsanddeferredtaxliabilitiesareoffsetandpresentedwhenbothofthefollowingconditionsaresatisfied:

?thetaxpayerhasthestatutoryrighttosettlethecurrenttaxassetsandcurrenttaxliabilitiesona

netbasis;and?thedeferredtaxassetsanddeferredtaxliabilitiesarerelatedtoincometaxesleviedbythesametaxauthorityonthesametaxpayerordifferenttaxpayers,providedthatduringtheperiodinwhicheachmaterialdeferredtaxassetandliabilitywillbereversed,thetaxpayerinvolvedintendstosettlethecurrenttaxassetsandliabilitiesonanetbasisorobtainassetsandsettleliabilitiessimultaneously.

42.Leases

(1)Accountingtreatmentofoperatingleases

(1)LeaseexpensespaidbytheCompanyforleasingintheassetisamortizedusingastraight-linemethodthroughouttheleasetermincludingtherent-freeperiod,andrecognizedinexpensesforthecurrentperiod.TheinitialdirectexpensespaidbytheCompanyinconnectionwiththeleasetransactionisrecognizedinexpensesforthecurrentperiod.Whentheassetlessorbearsthelease-relatedexpensestobeassumedbytheCompany,theCompanydeductstheseexpensesfromtotalrentandthenamortizessuchdeductedrentduringtheleaseterm,andrecognizedthesameinexpensesforthecurrentperiod.

(2)LeaseexpensesreceivedbytheCompanyforleasingouttheassetisallocatedusingastraight-linemethodthroughouttheleasetermincludingtherent-freeperiod,andrecognizedasthelease-relatedincome.TheinitialdirectexpensespaidbytheCompanyinconnectionwiththeleasetransactionisrecognizedinexpensesforthecurrentperiod;ifsuchinitialdirectexpensesareofalargeamount,theinitialdirectcostsarecapitalizedandrecognizedinprofitorlossbyinstallmentsonthesamebasisastherecognitionofthelease-relatedincomethroughouttheleaseterm.WhentheCompanybearsthelease-relatedexpensestobeassumedbythelessee,theCompanydeductstheseexpensesfromtotalrentandthenallocatessuchdeductedrentduringtheleaseterm.

(2)Accountingtreatmentoffinancingleases

(1)AssetsleasedinunderfinancingleasesAttheinceptionofthelease,theCompanyrecordstheleasedassetatanamountequaltothelowerofthefairvalueoftheleasedassetandthepresentvalueoftheminimumleasepayments,andrecognizesalong-termpayableatanamountequaltotheminimumleasepayments.Thedifferencebetweentherecordedamountoftheleasedassetandtherecordedamountofthepayableisaccountedforasunrecognizedfinancecharge.TheCompanyamortizesunrecognizedfinancechargeduringtheleasetermusingtheeffectiveinterestmethod,andrecognizessameinfinancialexpenses.TheinitialdirectexpensesincurredbytheCompanyisrecognizedinthevalueofleased-inasset.

(2)Assetsleasedoutunderfinancingleases:Attheinceptionofthelease,theCompanyrecognizesthedifferencebetweenthesumoffinanceleasereceivablesandunguaranteedresidualvalueandtheirpresentvalueasunearnedfinanceincome,andrecognizessameasleaserevenueineachperiodoverwhichtherentwillbereceived.TheinitialdirectexpensesincurredbytheCompanyinconnectionwiththeleasetransactionsarerecognizedinthefinanceleasereceivableinitiallymeasuredandreducestheamountofincomerecognizedduringtheleaseterm.

43.Othersignificantaccountingpoliciesandaccountingestimates

44.Changesinsignificantaccountingpoliciesandaccountingestimates

(1)Changesinsignificantaccountingpolicies

√Applicable□N/A

Changesinaccountingpoliciesandassociatedreasons	Approvalprocedure	Note:
Receiptsinadvancerelatedtoperformanceobligationsreclassifiedtocontractliabilities	Examinationandapprovalbytheboardofdirectors	ImplementtheAccountingStandardforBusinessEnterprisesNo.14—Revenue(revisedin2017)(“NewRevenueStandard”)

(1)ImplementtheAccountingStandardforBusinessEnterprisesNo.14—Revenue(revisedin2017)(“NewRevenueStandard”)TheMinistryofFinancerevisedtheAccountingStandardforBusinessEnterprisesNo.14—Revenuein2017.Inaccordancewiththerevisedstandards,thecumulativeeffectsarisingfromthefirstimplementationofnewstandardsisadjustedtotheamountofretainedearningsandotherrelateditemsinthefinancialstatementsatthebeginningofthecurrentperiodandtheinformationforthecomparableperiodisnotadjusted.

(2)ImplementtheInterpretationNo.13oftheAccountingStandardsforBusinessEnterprisesTheMinistryofFinanceissuedtheInterpretationNo.13oftheAccountingStandardsforBusinessEnterprises(CaiKuai[2019]No.21)(“InterpretationNo.13”)onDecember10,

2019,whichshallbeimplementedfromJanuary1,2020anddonotrequireretrospectiveadjustment.

1Identificationofrelatedparties

TheInterpretationNo.13clarifiesthatthefollowingcircumstancesconstitutearelatedparty:theenterpriseandassociatesorjointventuresofanyothermembers(includingparentcompanyandsubsidiaries)withintheenterprisegrouptowhichtheenterprisebelongs;thejointventuresoftheenterpriseandotherjointventuresorassociatesoftheenterprise.Inaddition,theInterpretationNo.13alsodefinesthattwoormoreenterprisesthataresignificantlyaffectedbyonlyonepartyshallnotconstituterelatedparties,andadditionallyprovidesthatassociatesincludeassociatesandtheirsubsidiaries,andjointventuresincludejointventuresandtheirsubsidiaries.

2Definitionofbusiness

TheInterpretationNo.13improvesthreeelementsofbusinesscomposition,refinesthejudgmentconditionsofbusinesscomposition,introducesthe“concentrationtest”option,whichsimplifiesthejudgmenttoacertainextentonwhetherthecombinationnotinvolvingenterprisesundercommoncontrolobtainedconstitutesthebusiness.TheCompanyimplementedtheInterpretationNo.13fromJanuary1,2020,andmadenoadjustmenttothecomparativefinancialstatements.TheimplementationoftheInterpretationNo.13hasnothadmaterialimpactontheCompany’sfinancialpositionandoperatingresults.

(3)ImplementtheInterimProvisionsontheAccountingTreatmentRegardingCarbonEmissionsRightTradingTheMinistryofFinanceissuedtheInterimProvisionsontheAccountingTreatmentRegardingCarbonEmissionsRightTrading(CaiKuai[2019]No.22)onDecember16,2019,whichshallapplytotherelevantenterprisesamongkeyemissionenterprises(“keyemissionenterprises”)thatconductcarbonemissiontradingbusinessinaccordancewiththeInterimMeasuresfortheAdministrationofCarbonEmissionPermitTradingandotherrelevantprovisions.TheseprovisionswereimplementedfromJanuary1,2020andkeyemissionenterprisesshallapplytheseprovisionsprospectively.TheCompanyimplementedtheseProvisionsfromJanuary1,2020,andmadenoadjustmenttothecomparativefinancialstatements.TheimplementationoftheseprovisionshasnothadmaterialimpactontheCompany’sfinancialpositionandoperatingresults.

(4)ImplementtheProvisionsontheAccountingTreatmentoftheCOVID-19Pandemic-relatedRentalConcessions

TheMinistryofFinanceissuedtheProvisionsontheAccountingTreatmentoftheCOVID-19Pandemic-relatedRentalConcessions(CaiKuai[2020]No.10),whichshallbeimplementedfromJune19,2020andallowenterprisestomakeadjustmentstotherelatedrentalconcessionsincurredfromJanuary1,2020tothedateofimplementationoftheseprovisions.Inaccordancewiththeseprovisions,iftherentreduction,exemption,deferredpaymentandotherrentalconcessions,which,directlycausedbytheCOVID-19pandemic,meetallofthefollowingconditions,anenterprisemayconductaccountingtreatmentbychoosingtoadoptthesimplifiedmethod.TheimplementationoftheseprovisionshasnothadmaterialimpactontheCompany’sfinancialpositionandoperatingresults.

(2)Changesinsignificantaccountingestimates

□Applicable√N/A

(3)Descriptionofadjustmentsinopeningbalancesoflineitemsinfinancialstatementsoftheyearduetofirstimplementationofnewincomestandardandnewleasestandardsince2020ApplicableDidthelineitemsoftheopeningassetsandliabilitiesrequireadjustment?

□Yes√NoThereasonwhythelineitemsoftheopeningassetsandliabilitiesrequirenoadjustment

TheCompanyimplementednewincomestandardfromJanuary1,2020.Inaccordancewithnewstandards,theCompanyadjuststheamountofretainedearningsandotherrelateditemsinthefinancialstatementsatthebeginningofthecurrentperiodonlyforthecumulativeeffectsofthecontractsuncompletedonthedateoffirstimplementation,andtheinformationforthecomparableperiodisnotadjusted.Themainimpactsarisingfromimplementationofthesestandardsaredescribedasfollows:

Changesinaccountingpoliciesandassociatedreasons	Approvalprocedure	Affecteditemsofthestatements	EffectsofthebalanceasatJanuary1,2020
			Combination	Parentcompany
Receiptsinadvancerelatedtoperformanceobligationsreclassifiedtocontractliabilities	Examinationandapprovalbytheboardofdirectors	Receiptsinadvance	-101,609,379.21	-19,692,593.36
		Contractliabilities	95,586,087.42	17,427,073.77
		Othercurrentliabilities	6,023,291.79	2,265,519.59

(4)Descriptionofretrospectiveadjustmentsincomparativedatainpriorperiodsduetofirstimplementationofnewfinancialinstrumentstandardsandnewleasestandardin2020

□Applicable√N/A

45.Others

None

VI.Taxes

1.Majorcategoriesoftaxesandtaxrates

Taxcategory	Taxationbasis	Taxrate
Value-addedtax(VAT)	VATpayableistheoutputtaxbasedonthesalesofgoodsandtaxablelaborincomecalculatedpursuanttothetaxlaw,netoftheinputtaxthatisallowedtobedeductedinthecurrentperiod	13%,9%,6%,5%,3%,0%
Urbanmaintenanceandconstructiontax	SubjecttotheactualpaymentofVATandconsumptiontax	7%,5%
Enterpriseincometax	Subjecttothetaxableincomeamount	25%,20%,19%,16.5%,15%,0%

Disclosureoftaxpayers(ifany)withdifferentratesofenterpriseincometax:

Taxpayer	Rateofenterpriseincometax
LuxsharePrecisionIndustryCo.,Ltd.	15
XiexunElectronic(Ji’an)Co.,Ltd.	15
ASAPTechnology(Jiangxi)Co.,Ltd.	15
LantoElectronicLimited	15
BozhouLantoElectronicLimited	15
HuzhouJiudingElectronicCo.,Ltd.	15
LuxshareAutomation(Jiangsu)Ltd.	15
MeiteTechnology(Suzhou)Co.,Ltd.	15
LuxshareElectronicTechnology(Kunshan)Co.,Ltd.	15
YongxinCountyBoshuoElectronicsCo.,Ltd.	15
LuxsharePrecisionIndustry(Chuzhou),Ltd.	15
MeilvElectronic(Huizhou)Co.,Ltd.	15
FujianJKWiringSystemsCo.,Ltd.	15
JiangxiLuxshareIntelligentManufactureCo.,Ltd.	15

JiangxiASAPElectronicCo.,Ltd.	15
Kunshan-LuxshareRFTechnologyCo.,Ltd.	15
SuiningLuxsharePrecisionIndustryCo.,Ltd.	15
LuxsharePrecisionIndustry(Baoding)Co.,Ltd.	15
LuxsharePrecisionIndustry(Shanxi)Co.,Ltd.	15
DonguanXuntaoElectronicCo.,Ltd.	15
KunshanLuxsharePrecisionIndustryCo.,Ltd.	15
LuxshareIntelligentManufacture(Zhejiang)Co.,Ltd.	15
ShenzhenLuxshareAcousticsTechnologyLtd.	15
LuxsharePrecisionLimited(HK)	Note1
LuxsharePrecisionTechnologyCo.,Ltd.	16.5
TaiwanLuxsharePrecisionLimited	20
ICTLANTOLIMITED(HK)	Note1
LuxshareStandardLimited(HK)	Note1
LuxshareTechnologiesLimited	Note1
Luxshare-ICT(Japan)	Note2
YundingTechnologyCo.,Ltd.	Note1
SpeedTechCorp.	20
Luxshare-ICT(India)	25
LuxshareLanto(India)Co.,Ltd.	25
LuxshareICT,Inc.	Note3
Luxshare-ICTIndustryEuropeLimited	19
SukkunststofftechnikGmbH	15
KoreaLuxshareICTCo.,Ltd	Note4
LUXSHARE-ICTINTERNATIONALB.V.	Note5
Luxshare-ICT(Vietnam)Limited	20
LuxsharePrecision(Yunzhong)Co.,Ltd.	20
LuxsharePrecision(Yi’an)Co.,Ltd.	20
Othersubsidiaries	25

2.Taxincentives

1.TheCompanywasidentifiedasahigh-techenterprisebyShenzhenScienceandTechnologyInnovationCommission,ShenzhenFinanceCommittee,andShenzhenTaxService,StateTaxationAdministrationonNovember9,2018,withtheHigh-techEnterpriseCertificateNo.GF201844203584whichisvalidforthreeyears.AsprovidedforintheNoticebytheMinistryof

FinanceandtheStateAdministrationofTaxationonPreferentialPoliciesforEnterpriseIncomeTaxesRelatedtoEnterprises’TechnologicalInnovationandtheNoticebytheStateAdministrationofTaxationonIssuesConcerningtheImplementationofPreferentialIncomeTaxesforHigh-techEnterprises,theCompanyenjoysanenterpriseincometaxof15%for2020.

2.Thesubsidiary,XiexunElectronic(Ji’an)Co.,Ltd.(“Ji’anXiexun”),wasidentifiedasahigh-techenterprisebyScienceandTechnologyDepartmentofJiangxiProvince,JiangxiProvincialFinanceBureau,andJiangxiProvincialTaxService,StateTaxationAdministrationonSeptember14,2019,withtheHigh-techEnterpriseCertificateNo.GR202036001325whichisvalidforthreeyears.Accordingtorelevantprovisionsofthenationalhigh-techenterpriseincometaxpreferentialpoliciesinChina,itenjoysanenterpriseincometaxrateof15%for2020.

3.Thesubsidiary,ASAPTechnology(Jiangxi)Co.,Ltd.(“ASAPJiangxi”),wasidentifiedasahigh-techenterprisebyScienceandTechnologyDepartmentofJiangxiProvince,JiangxiProvincialFinanceBureau,andJiangxiProvincialTaxService,StateTaxationAdministrationonSeptember16,2019,withtheHigh-techEnterpriseCertificateNo.GR201936000710whichisvalidforthreeyears.Accordingtorelevantprovisionsofthenationalhigh-techenterpriseincometaxpreferentialpoliciesinChina,itenjoysanenterpriseincometaxrateof15%for2020.

4.Thesubsidiary,LantoElectronicLimited(“LantoKunshan”),wasidentifiedasahigh-techenterprisebytheJiangsuProvincialDepartmentofScienceandTechnology,JiangsuProvincialDepartmentofFinance,JiangsuProvincialTaxService,StateTaxationAdministrationandLocalTaxationBureauofJiangsuProvinceonDecember2,2020andobtainedtheCertificateNo.GF2020320037377whichisvalidforthreeyears.Inaccordancewithrelevantprovisionsofthenationalhigh-techenterpriseincometaxpreferentialpoliciesinChina,itenjoysanenterpriseincometaxrateof15%for2020.

5.Thesub-subsidiary,BozhouLantoElectronicLimited(“BozhouLanto”),wasidentifiedasahigh-techenterprisebyAnhuiProvincialDepartmentofScienceandTechnology,AnhuiProvincialDepartmentofFinance,andAnhuiProvincialTaxService,StateTaxationAdministrationonJuly24,2018,andobtainedtheCertificateNo.GR201834001191whichisvalidforthreeyears.Accordingtorelevantprovisionsofthenationalhigh-techenterpriseincometaxpreferentialpoliciesinChina,itenjoysanenterpriseincometaxrateof15%for2020.

6.Thesub-subsidiary,HuzhouJiudingElectronicCo.,Ltd.(“HuzhouJiuding”),wasidentifiedasahigh-techenterprisebytheZhejiangProvincialDepartmentofScienceandTechnology,ZhejiangProvincialDepartmentofFinance,ZhejiangProvincialTaxService,StateTaxationAdministrationandLocalTaxationBureauofZhejiangProvinceonDecember1,2020,andobtainedtheHigh-techEnterpriseCertificateNo.GR202033002604whichisvalidforthreeyears.Accordingtorelevantprovisionsofthenationalhigh-techenterpriseincometaxpreferentialpoliciesinChina,itenjoysanenterpriseincometaxrateof15%for2020.

7.Thesubsidiary,LuxshareAutomation(Jiangsu)Ltd.(“JiangsuAutomation”),wasidentifiedasahigh-techenterprisebyJiangsuProvincialDepartmentofScienceandTechnology,Jiangsu

ProvincialDepartmentofFinance,andJiangsuProvincialTaxService,StateTaxationAdministrationonNovember30,2018,withtheHigh-techEnterpriseCertificateNo.GR201832005137whichisvalidforthreeyears.Accordingtorelevantprovisionsofthenationalhigh-techenterpriseincometaxpreferentialpoliciesinChina,itenjoysanenterpriseincometaxrateof15%for2020.

8.Thesub-subsidiary,MeiteTechnology(Suzhou)Co.,Ltd.(“SuzhouMeite”)wasidentifiedasahigh-techenterprisebyJiangsuProvincialDepartmentofScienceandTechnology,JiangsuProvincialDepartmentofFinance,JiangsuProvincialTaxService,StateTaxationAdministrationandLocalTaxationBureauofJiangsuProvinceonDecember2,2020,withtheHigh-techEnterpriseCertificateNo.GR202032005557whichisvalidforthreeyears.Accordingtorelevantprovisionsofthenationalhigh-techenterpriseincometaxpreferentialpoliciesinChina,itenjoysanenterpriseincometaxrateof15%for2020.

9.Thesubsidiary,LuxshareElectronicTechnology(Kunshan)Co.,Ltd.(“LuxshareElectronicKunshan”),wasidentifiedasahigh-techenterprisebyJiangsuProvincialDepartmentofScienceandTechnology,JiangsuProvincialDepartmentofFinance,andJiangsuProvincialTaxService,StateTaxationAdministrationonNovember28,2018,withtheHigh-techEnterpriseCertificateNo.GR201832003780,whichisvalidforthreeyears.Accordingtorelevantprovisionsofthenationalhigh-techenterpriseincometaxpreferentialpoliciesinChina,itenjoysanenterpriseincometaxrateof15%for2020.

10.Thesub-subsidiary,YongxinCountyBoshuoElectronicsCo.,Ltd.(“YongxinBoshuo”),wasidentifiedasahigh-techenterprisebyScienceandTechnologyDepartmentofJiangxiProvince,JiangxiProvincialFinanceBureau,JiangxiProvincialTaxService,StateTaxationAdministrationandLocalTaxationBureauofJiangxiProvinceonDecember2,2020,withtheHigh-techEnterpriseCertificateNo.GR202036001897whichisvalidforthreeyears.Accordingtorelevantprovisionsofthenationalhigh-techenterpriseincometaxpreferentialpoliciesinChina,itenjoysanenterpriseincometaxrateof15%for2020.

11.Thesubsidiary,LuxsharePrecisionIndustry(Chuzhou),Ltd.(“LuxshareChuzhou”),wasidentifiedasahigh-techenterprisebyAnhuiProvincialDepartmentofScienceandTechnology,AnhuiProvincialDepartmentofFinance,andAnhuiProvincialTaxService,StateTaxationAdministrationonSeptember9,2019,withtheHigh-techEnterpriseCertificateNo.GR201934001733whichisvalidforthreeyears.Accordingtorelevantprovisionsofthenationalhigh-techenterpriseincometaxpreferentialpoliciesinChina,itenjoysanenterpriseincometaxrateof15%for2020.

12.Thesub-subsidiary,MeilvElectronic(Huizhou)Co.,Ltd.(“HuizhouMeilv”),wasidentifiedasahigh-techenterprisebyDepartmentofScienceandTechnologyofGuangdongProvince,DepartmentofFinanceofGuangdongProvince,andGuangdongProvincialTaxService,StateTaxationAdministrationin2018,withtheHigh-techEnterpriseCertificateNo.GR201844010193whichisvalidforthreeyears.Accordingtorelevantprovisionsofthenationalhigh-techenterpriseincometaxpreferentialpoliciesinChina,itenjoysanenterpriseincometax

rateof15%for2020.Accordingtorelevantprovisionsofthenationalhigh-techenterpriseincometaxpreferentialpoliciesinChina,itenjoysanenterpriseincometaxrateof15%for2020.

13.Thesubsidiary,FujianJKWiringSystemsCo.,Ltd.(“FujianJK”),wasidentifiedasahigh-techenterprisebytheFujianProvincialDepartmentofScienceandTechnology,FujianProvincialDepartmentofFinance,FujianProvincialTaxService,StateTaxationAdministrationandLocalTaxationBureauofFujianProvinceonDecember1,2020,withtheHigh-techEnterpriseCertificateNo.GR202035000014whichisvalidforthreeyears.Accordingtorelevantprovisionsofthenationalhigh-techenterpriseincometaxpreferentialpoliciesinChina,itenjoysanenterpriseincometaxrateof15%for2020.

14.Thesubsidiary,JiangxiLuxshareIntelligentManufactureCo.,Ltd.(“IntelligentManufactureJiangxi”),wasidentifiedasahigh-techenterprisebyJiangsuProvincialDepartmentofScienceandTechnology,JiangsuProvincialDepartmentofFinance,andJiangsuProvincialTaxService,StateTaxationAdministrationonAugust13,2018,withtheHigh-techEnterpriseCertificateNo.GR201836000417whichisvalidforthreeyears.Accordingtorelevantprovisionsofthenationalhigh-techenterpriseincometaxpreferentialpoliciesinChina,itenjoysanenterpriseincometaxrateof15%for2020.

15.Thesub-subsidiary,JiangxiASAPElectronicCo.,Ltd.(“BoshuoElectronics”),wasidentifiedasahigh-techenterprisebyScienceandTechnologyDepartmentofJiangxiProvince,JiangxiProvincialFinanceBureau,andJiangxiProvincialTaxService,StateTaxationAdministrationonDecember4,2018,withtheHigh-techEnterpriseCertificateNo.GR201836001774whichisvalidforthreeyears.Accordingtorelevantprovisionsofthenationalhigh-techenterpriseincometaxpreferentialpoliciesinChina,itenjoysanenterpriseincometaxrateof15%for2020.

16.Thesub-subsidiary,Kunshan-LuxshareRFTechnologyCo.,Ltd.(“KunshanRF”),wasidentifiedasahigh-techenterprisebyJiangsuProvincialDepartmentofScienceandTechnology,JiangsuProvincialDepartmentofFinance,andJiangsuProvincialTaxService,StateTaxationAdministrationonNovember28,2018,withtheHigh-techEnterpriseCertificateNo.GR201832003391whichisvalidforthreeyears.Accordingtorelevantprovisionsofthenationalhigh-techenterpriseincometaxpreferentialpoliciesinChina,itenjoysanenterpriseincometaxrateof15%for2020.

17.Thesub-subsidiary,SuiningLuxsharePrecisionIndustryCo.,Ltd.(“SuiningLuxshare”)wasidentifiedasahigh-techenterprisebyScience&TechnologyDepartmentofSichuanProvince,SichuanProvincialFinanceDepartment,andSichuanProvincialTaxService,StateTaxationAdministrationonDecember3,2018,withtheHigh-techEnterpriseCertificateNo.GR201851001013whichisvalidforthreeyears.Accordingtorelevantprovisionsofthenationalhigh-techenterpriseincometaxpreferentialpoliciesinChina,itenjoysanenterpriseincometaxrateof15%for2020.

18.Thesub-subsidiary,LuxsharePrecisionIndustry(Baoding)Co.,Ltd.(“BaodingLuxshare”),wasidentifiedasahigh-techenterprisebyHebeiProvincialDepartmentofScienceandTechnology,HebeiProvincialFinanceBureau,andHebeiProvincialTaxService,StateTaxationAdministrationonSeptember10,2019,withtheHigh-techEnterpriseCertificateNo.GR201913000851whichisvalidforthreeyears.Accordingtorelevantprovisionsofthenationalhigh-techenterpriseincometaxpreferentialpoliciesinChina,itenjoysanenterpriseincometaxrateof15%for2020.

19.Thesub-subsidiary,LuxsharePrecisionIndustry(Shanxi)Co.,Ltd.(“ShanxiLuxshare”),wasidentifiedasahigh-techenterprisebyShanxiScienceandTechnologyDepartment,ShanxiProvincialDepartmentofFinance,andShanxiProvincialTaxService,StateTaxationAdministrationonSeptember16,2019,withtheHigh-techEnterpriseCertificateNo.GR201914000049whichisvalidforthreeyears.Accordingtorelevantprovisionsofthenationalhigh-techenterpriseincometaxpreferentialpoliciesinChina,itenjoysanenterpriseincometaxrateof15%for2020.

20.Thesub-subsidiary,DonguanXuntaoElectronicCo.,Ltd.(“DonguanXuntao”),wasidentifiedasahigh-techenterprisebytheDepartmentofScienceandTechnologyofGuangdongProvince,DepartmentofFinanceofGuangdongProvince,andGuangdongProvincialTaxService,StateTaxationAdministrationonDecember2,2019,withtheCertificateNo.GR201944005411whichisvalidforthreeyears.Accordingtorelevantprovisionsofthenationalhigh-techenterpriseincometaxpreferentialpoliciesinChina,itenjoysanenterpriseincometaxrateof15%for2020.

21.Thesubsidiary,KunshanLuxsharePrecisionIndustryCo.,Ltd.(“KunshanLuxshare”),wasidentifiedasahigh-techenterprisebyJiangsuProvincialDepartmentofScienceandTechnology,JiangsuProvincialDepartmentofFinance,andJiangsuProvincialTaxService,StateTaxationAdministrationonDecember2,2020,withtheHigh-techEnterpriseCertificateNo.GR202032002892,whichisvalidforthreeyears.Accordingtorelevantprovisionsofthenationalhigh-techenterpriseincometaxpreferentialpoliciesinChina,itenjoysanenterpriseincometaxrateof15%for2020.

22.Thesubsidiary,LuxshareIntelligentManufacture(Zhejiang)Co.,Ltd.(“ZhejiangIntelligentManufacture”),wasidentifiedasahigh-techenterprisebyZhejiangProvincialDepartmentofScienceandTechnology,ZhejiangProvincialDepartmentofFinance,andZhejiangProvincialTaxService,StateTaxationAdministrationonDecember1,2020,withtheHigh-techEnterpriseCertificateNo.GR202033001987,whichisvalidforthreeyears.Accordingtorelevantprovisionsofthenationalhigh-techenterpriseincometaxpreferentialpoliciesinChina,itenjoysanenterpriseincometaxrateof15%for2020.

23.Thesubsidiary,ShenzhenLuxshareAcousticsTechnologyLtd.(“LuxshareAcoustics”),wasidentifiedasahigh-techenterprisebyJiangsuProvincialDepartmentofScienceandTechnology,JiangsuProvincialDepartmentofFinance,andJiangsuProvincialTaxService,StateTaxationAdministrationonDecember11,2020,withtheHigh-techEnterpriseCertificateNo.

GR202044204060,whichisvalidforthreeyears.Accordingtorelevantprovisionsofthenationalhigh-techenterpriseincometaxpreferentialpoliciesinChina,itenjoysanenterpriseincometaxrateof15%for2020.

3.Others

Note1.AsperthetaxlawinHongKong,HongKongadoptsaterritorialsourceprincipleoftaxation,underwhichonlyprofitswhichhaveasourceinHongKongaretaxablethere,whileprofitssourcedelsewherearenotsubjecttoHongKonggaintax.LuxshareTechnologiesLimited,LuxshareStandardLimited(HK),ICTLANTOLIMITED(HK),LuxsharePrecisionLimited(HK)andYundingTechnologyCo.,Ltd.arenotsubjecttoHongKonggaintax.Note2.Luxshare-ICT(Japan)isentitledtothegradedtaxrateforthecapitalamountingtonotmorethanJPY100million.Corporateincometax(nationaltax):at15%fortheportionoftaxableincomewithinJPY8million(inclusive),andat23.2%fortheportioninexcessthereof.Localcorporateincometax(nationaltax):at10.3%oftotalcorporatetaxableincome(nationaltax).Note3.TheapplicabletaxrateofLuxshareICT,Incisshownasfollows:

	Applicabletaxrate
Incometax(federal)	21%
Localtax(state)	8.84%

Note4.TheapplicabletaxrateofKoreaLuxshareICTCo.,Ltdisshownasfollows:

Totalprofits	Corporatetax	Localtax
LessthanKRW200million	10%	10%ofcorporatetaxableincome
KWR200million~KWR20billion	20%
KWR20billion~KWR300billion	22%
AboveKWR300billion	25%

Note5.LUXSHARE-ICTINTERNATIONALB.V.isincorporatedintheNetherlands,towhomtheapplicabletaxrateis16.5%fortheportionofincomewithinEUR200,000and25%fortheportioninexcessthereof.VII.NotestoItemsinConsolidatedFinancialStatements

1.Cashandbankbalances

InRMB

Item	ClosingBalance	OpeningBalance
Cashonhand	9,919,560.76	594,825.70
Bankdeposit	10,454,884,890.58	6,146,745,098.56
Othercashandbankbalances	63,441,314.59	33,126,334.75

Total	10,528,245,765.93	6,180,466,259.01
Including:Totalamountoffundsdepositedabroad	3,867,118,934.25	2,593,531,992.70
Totalamountoffundswhicharerestrictedinusebymortgage,pledgeorfreezing,etc.	63,441,314.59	33,126,334.75

OtherdescriptionsBankdepositsincludeinterestincurredfromfixed-termdepositsamountingtoRMB11,810,808.21Thebreakdownofcashandbankbalanceswhicharerestrictedinusebymortgage,pledgeorfreezing,etc.,andwhicharedepositedabroadwithrestrictedrepatriationareasfollows:

Item	ClosingBalance	ClosingBalanceofPreviousYear
Securitydepositofbankacceptancebills	10,678,394.18	3,078,831.30
Creditdeposits	13,933,745.95	13,254,298.15
Performancedeposit	21,291,516.86
TermdepositorCallDepositusedforguarantee	17,537,657.60	16,793,205.30
Total	63,441,314.59	33,126,334.75

2.Held-for-tradingfinancialassets

InRMB

Item	ClosingBalance	OpeningBalance
Financialassetsatfairvaluethroughprofitorloss	3,160,064,470.41	1,524,366,132.75
Including:
Derivativefinancialassets	305,388,419.95	16,591,708.18
Bankwealthmanagement	2,854,676,050.46	1,507,774,424.57
Including:
Total	3,160,064,470.41	1,524,366,132.75

Otherdescriptions:

3.Derivativefinancialassets

InRMB

Item

ClosingBalance

OpeningBalance

Otherdescriptions:

4.Notesreceivable

(1)Categorizedpresentationofnotesreceivable

InRMB

Item	ClosingBalance	OpeningBalance
Bankacceptancebill	251,899,317.40	47,511,878.70
Commercialacceptancebill	9,309,284.10	19,362,048.27
Total	261,208,601.50	66,873,926.97

InRMB

Category	ClosingBalance					OpeningBalance
	Bookbalance		Bad-debtprovision		Bookvalue	Bookbalance		Bad-debtprovision		Bookvalue
	Amount	Proportion	Amount	Provisionproportion	Bookvalue	Amount	Proportion	Amount	Provisionproportion	Bookvalue
Including:
Including:

Provisionforbaddebtsmadeindividually:

InRMB

Description	ClosingBalance
	Bookbalance	Bad-debtprovision	Provisionproportion	Reasonforprovision

Provisionforbaddebtsmadebygroup:

InRMB

Description	ClosingBalance
	Bookbalance	Bad-debtprovision	Provisionproportion

Descriptionsonthebasisfordeterminationofthegroup:

Ifthebad-debtprovisionofnotesreceivableismadeaccordingtothegeneralmodelofexpectedcreditloss,pleasedisclosetherelevantinformationofbad-debtprovisionwithreferencetothedisclosuremethodofotherreceivables:

?Applicable√N/A

(2)Bad-debtprovisionmade,recoveredorreversedinthecurrentperiodBad-debtprovisionmadeinthecurrentperiod:

InRMB

Category	OpeningBalance	Amountofchangeinthecurrentperiod				ClosingBalance
		Provision	Recoverorreversal	Writeoff	Other

Includingsignificantamountsrecoveredorreversedfromthecurrentprovisionforbaddebts:

?Applicable√N/A

(3)NotesreceivablepledgedbytheCompanyattheendoftheperiod

InRMB

Item	Pledgedamountattheendoftheperiod
Bankacceptancebill	22,490,383.01
Total	22,490,383.01

(4)NotesreceivablethathavebeenendorsedordiscountedbytheCompanyattheendoftheperiodandhavenotyetmaturedonthebalancesheetdate

InRMB

Item	Derecognizedamountattheendoftheperiod	Amountnotderecognizedattheendoftheperiod
Bankacceptancebill	2,091,917,564.86
Total	2,091,917,564.86

(5)NoteswhichtheCompanytransfersintoaccountsreceivableattheendoftheperiodbecauseofdrawers’non-performance

InRMB

Item	Amounttransferredtoaccountsreceivableattheendoftheperiod

Otherdescriptions

(6)Notesreceivableactuallywrittenoffinthecurrentperiod

InRMB

Item	Write-offamount

Includingthewrite-offofsignificantnotesreceivable:

InRMB

Entityname

Natureofnotesreceivable

Write-offamount

Reasonsforwriteoff

Proceduresforwriteoff

Whetherthefundsaregeneratedbyrelated-party

Instructionsonthewrite-offofnotesreceivable:

5.Accountsreceivable

(1)Categorizeddisclosureofaccountsreceivable

InRMB

transactionsCategory

Category	ClosingBalance					OpeningBalance
	Bookbalance		Bad-debtprovision		Bookvalue	Bookbalance		Bad-debtprovision		Bookvalue
	Amount	Proportion	Amount	Provisionproportion	Bookvalue	Amount	Proportion	Amount	Provisionproportion	Bookvalue
Accountsreceivableforwhichbad-debtprovisionismadeindividually	37,656,321.38	0.27%	37,527,221.68	99.66%	129,099.70	38,880,180.69	0.29%	38,617,539.76	99.32%	262,640.93
Including:
Accountsreceivableforwhichbad-debtprovisionismadebygroup	13,862,652,924.95	99.73%	23,626,684.18	0.17%	13,839,026,240.77	13,268,942,471.16	99.71%	25,579,539.87	0.19%	13,243,362,931.29
Including:
Groupbyaging	13,862,652,924.95	99.73%	23,626,684.18	0.17%	13,839,026,240.77	13,268,942,471.16	99.71%	25,579,539.87	0.19%	13,243,362,931.29
Total	13,900,309,246.33	100.00%	61,153,905.86		13,839,155,340.47	13,307,822,651.85	100.00%	64,197,079.63		13,243,625,572.22

Provisionforbaddebtsmadeindividually:RMB37,527,221.68

InRMB

Description	ClosingBalance
Description	Bookbalance	Bad-debtprovision	Provisionproportion	Reasonforprovision
Entity1	30,988,680.56	30,988,680.56	100.00%	Unrecoverable
Entity2	3,884,072.10	3,884,072.10	100.00%	Unrecoverable
Entity3	2,542,165.36	2,413,065.66	94.92%	Unrecoverable
Entity4	241,403.36	241,403.36	100.00%	Unrecoverable
Total	37,656,321.38	37,527,221.68	--	--

Provisionforbaddebtsmadeindividually:

InRMB

Description	ClosingBalance
	Bookbalance	Bad-debtprovision	Provisionproportion	Reasonforprovision

Provisionforbaddebtsmadebygroup:RMB23,626,684.18

InRMB

Description	ClosingBalance
Description	Bookbalance	Bad-debtprovision	Provisionproportion
Undue	13,718,412,121.82	6,878,063.42	0.05%
1to60daysoverdue	120,007,255.07	6,000,362.74	5.00%
61to120daysoverdue	9,261,165.60	2,778,349.68	30.00%
121to180daysoverdue	7,927,945.22	3,171,178.08	40.00%
181to365daysoverdue	4,484,906.74	2,242,453.37	50.00%
1(excluding1)to2yearsoverdue	32,538.23	29,284.62	90.00%
Morethan2yearsoverdue	2,526,992.27	2,526,992.27	100.00%
Total	13,862,652,924.95	23,626,684.18	--

Descriptiononthebasisfordeterminationofthegroup:

Provisionforbaddebtsmadebygroup:

InRMB

Description	ClosingBalance
	Bookbalance	Bad-debtprovision	Provisionproportion

Descriptiononthebasisfordeterminationofthegroup:

Ifthebad-debtprovisionofaccountsreceivableismadeaccordingtothegeneralmodelofexpectedcreditloss,pleaserefertothedisclosuremethodofotherreceivablestodisclosetherelevantinformationofbaddebtprovision:

√Applicable□N/ADisclosurebyaging

InRMB

Aging	Bookbalance
Within1year(including1year)	13,861,439,232.22
Undue	13,718,412,121.83
1to60daysoverdue	120,007,255.07
61to120daysoverdue	9,261,165.60
121to180daysoverdue	8,449,126.92
181to365daysoverdue	5,309,562.80
1to2years	4,379,393.94
2to3years	34,490,620.17

Total

13,900,309,246.33

(2)Bad-debtprovisionmade,recoveredorreversedinthecurrentperiod

Bad-debtprovisioninthecurrentperiod:

InRMB

Category	OpeningBalance	Amountofchangeinthecurrentperiod				ClosingBalance
Category	OpeningBalance	Provision	Recoverorreversal	Writeoff	Other	ClosingBalance
Accountsreceivable	64,197,079.63	7,737,455.44		8,486,030.92	-2,294,598.29	61,153,905.86
Total	64,197,079.63	7,737,455.44		8,486,030.92	-2,294,598.29	61,153,905.86

Includingsignificantamountsrecoveredorreversedfromthecurrentprovisionforbaddebts:

InRMB

Entityname

Amountrecoveredorreversed

Recoverymethod

(3)Accountsreceivableactuallywrittenoffinthecurrentperiod

InRMB

Item	Write-offamount
Accountsreceivableactuallywrittenoff	8,486,030.92

Includingthewrite-offofsignificantaccountsreceivable:

InRMB

Entityname

Natureofaccountsreceivable

Write-offamount

Reasonsforwriteoff

Proceduresforwriteoff

Whetherthefundsaregeneratedbyrelated-partytransactions

Descriptiononthewrite-offofaccountsreceivable:

(4)Accountsreceivablewithtopfiveclosingbalance-bydebtor

InRMB

Entityname	Closingbalanceofaccountsreceivable	Proportionintotalclosingbalanceofaccountsreceivable	Closingbalanceofbad-debtprovision
Entity1	3,835,859,879.62	27.60%	1,917,929.94
Entity2	1,993,686,757.88	14.34%	996,843.38
Entity3	959,284,250.83	6.90%	479,642.13
Entity4	610,371,562.51	4.39%	305,185.78

Entity5	542,396,461.86	3.90%	271,198.23
Total	7,941,598,912.70	57.13%

(5)Accountsreceivablederecognizedduetotransferoffinancialassets

Item	Amountofderecognition	Waysoffinancialassetstransfer	Gainsorlossesrelatedtoderecognition
Entity1	7,430,587,022.91	Sale	-31,529,890.44
Total	7,430,587,022.91		-31,529,890.44

In2020,theCompanysoldtheaccountsreceivableofspecificcustomerstobanksandfinancialinstitutions.AsofDecember31,2020,theaccountsreceivablederecognizedforthespecificcustomersamounttoRMB7,430,587,022.91.

(6)Amountofassetsandliabilitiesformedbytransferringaccountsreceivableandcontinuinginvolvement

Otherdescriptions:

6.Receivablesfinancing

InRMB

Item

ClosingBalance

OpeningBalance

Increaseanddecreaseaswellasfairvaluechangesofreceivablesfinancinginthecurrentperiod

□Applicable√N/AIftheprovisionforimpairmentofreceivablesfinancingismadeaccordingtothegeneralmodelofexpectedcreditloss,pleaserefertothedisclosuremethodofotherreceivablestodisclosetherelevantinformationofimpairmentprovision:

□Applicable√N/AOtherdescriptions:

7.Prepayments

(1)Presentationofprepaymentsbyaging

InRMB

Aging	ClosingBalance		OpeningBalance
Aging	Amount	Proportion	Amount	Proportion
Within1year	182,183,707.73	99.07%	210,286,780.20	99.19%
1to2years	1,264,401.36	0.69%	1,133,221.56	0.53%
2to3years	172,178.32	0.09%	191,954.70	0.09%

Over3years	266,650.29	0.15%	406,655.45	0.19%
Total	183,886,937.70	--	212,018,611.91	--

Reasonsforuntimelysettlementofprepaymentsinsignificantamountwithagingover1year:

(2)Prepaymentswithtopfiveclosingbalance-byprepaymentbeneficiary

Prepaymentreceiver	ClosingBalance	Proportionintotalclosingbalanceofprepayments(%)
Entity1	45,755,861.25	24.88
Entity2	30,460,372.91	16.56
Entity3	10,155,255.63	5.52
Entity4	8,679,875.60	4.72
Entity5	5,161,011.87	2.81
Total	100,212,377.26	54.49

Otherdescriptions:

8.Otherreceivables

InRMB

Item	ClosingBalance	OpeningBalance
Otherreceivables	407,990,780.79	338,237,923.96
Total	407,990,780.79	338,237,923.96

(1)Interestreceivable

1)Classificationofinterestreceivable

InRMB

Item

ClosingBalance

OpeningBalance

2)Significantoverdueinterest

InRMB

Borrower

Closingbalance

Overduetime

Reasonsfordelay

Whetherthereisimpairmentanditsjudgmentbasis

Otherdescriptions:

3）Bad-debtprovision

□Applicable√N/A

(2)Dividendsreceivable

1)Classificationofdividendsreceivable

InRMB

Item(orInvestee)

ClosingBalance

OpeningBalance

2)Significantdividendsreceivablewithagingover1year

InRMB

Item(orInvestee)

ClosingBalance

Aging

Reasonsfornon-recovery

Whetherthereisimpairmentanditsjudgmentbasis

3)Bad-debtprovision

□Applicable√N/AOtherdescriptions:

(3)Otherreceivables

1)Classificationofotherreceivablesbynature

InRMB

Natureofreceivables	Closingbookbalance	Openingbookbalance
Reservefund	2,150,958.86	9,489,186.52
Securitydeposit	82,843,142.41	39,474,865.66
Importtaxrebatereceivable	52,519,780.76	25,871,375.64
Disbursement	61,811,236.98	2,156,089.51
Transferfundsoffixedassets	15,068,375.17	66,256,604.46
Other	195,784,468.71	196,384,767.00
Total	410,177,962.89	339,632,888.79

2)Bad-debtprovision

InRMB

Bad-debtprovision	StageI	StageII	StageIII	Total
Bad-debtprovision	12-monthECL	LifetimeECL(withcreditimpaired)	LifetimeECL(withcreditunimpaired)	Total
BalanceasatJanuary1,2020	1,394,964.83			1,394,964.83
BalanceasatJanuary1,	——	——	——	——

2020inthecurrentperiod
Provision	852,545.23	852,545.23
Write-off	68,961.70	68,961.70
Otherchanges	8,633.74	8,633.74
BalanceasatDecember31,2020	2,187,182.10	2,187,182.10

Changesinthebookbalanceoftheprovisionforlosswithsignificantamountofchangesinthecurrentperiod

□Applicable√N/ADisclosurebyaging

InRMB

Aging	Bookbalance
Within1year(including1year)	409,648,448.73
Undue	407,198,678.37
1to60daysoverdue	1,661,132.43
61to120daysoverdue	495,439.79
121to180daysoverdue	5,305.30
181to365daysoverdue	287,892.84
1to2years	529,514.16
Total	410,177,962.89

3)Bad-debtprovisionmade,recoveredorreversedinthecurrentperiod

Bad-debtprovisionmadeinthecurrentperiod:

InRMB

Category	Openingbalance	Amountofchangeinthecurrentperiod				Closingbalance
Category	Openingbalance	Provision	Recoverorreversal	Writeoff	Other	Closingbalance
Groupbyaging	1,394,964.83	852,545.23		68,961.70	8,633.74	2,187,182.10
Total	1,394,964.83	852,545.23		68,961.70	8,633.74	2,187,182.10

Includingsignificantamountsreversedorrecoveredfromthecurrentprovisionforbaddebts:

InRMB

Entityname

Amountreversedorrecovered

Recoverymethod

4)Otherreceivablesactuallywrittenoffinthecurrentperiod

InRMB

Item	Write-offamount

Includingthewrite-offofsignificantotherreceivables:

InRMB

Entityname

Natureofotherreceivables

Write-offamount

Reasonsforwriteoff

Proceduresforwriteoff

Whetherthefundsaregeneratedbyrelated-partytransactions

Descriptionsonthewrite-offofotherreceivables:

5)Otherreceivableswithtopfiveclosingbalance-bydebtor

InRMB

Entityname	Natureofreceivables	Closingbalance	Aging	Proportionintotalclosingbalanceofotherreceivables	Closingbalanceofbad-debtprovision
Entity1	Equitytransferfunds	190,000,000.00	Undue	46.32%	950,000.00
Entity2	Exporttaxrebate	52,519,780.76	Undue	12.80%	262,598.90
Entity3	Securitydeposit	17,447,194.83	Undue	4.25%	87,235.97
Entity4	Securitydeposit	13,704,698.01	Undue	3.34%	68,523.49
Entity5	Transferfundsoffixedassets	12,189,828.69	Undue	2.97%	60,949.14
Total	--	285,861,502.29	--	69.68%	1,429,307.50

6)Receivablesinvolvinggovernmentgrants

InRMB

Entityname

Nameofgovernmentgrant

Closingbalance

Agingattheendoftheperiod

Estimatedtime,amountandbasisofcollection

7)Otherreceivablesderecognizedduetotransferoffinancialassets

8)Amountofassetsandliabilitiesformedbytransferringotherreceivablesandcontinuinginvolvement

Otherdescriptions:

9.Inventories

WheretheCompanyneedtocomplywiththedisclosurerequirementsfortherealestateindustryNo

(1)Classificationofinventories

InRMB

Item	ClosingBalance			OpeningBalance
Item	Bookbalance	Provisionfordeclineinvalueofinventoriesorprovisionforimpairmentofcontractperformancecost	Bookvalue	Bookbalance	Provisionfordeclineinvalueofinventoriesorprovisionforimpairmentofcontractperformancecost	Bookvalue
Rawmaterial	3,139,313,968.65	30,816,233.39	3,108,497,735.26	2,394,527,722.87	20,450,891.52	2,374,076,831.35
Productsinprocess	2,047,580,192.49	31,348,190.65	2,016,232,001.84	1,329,809,441.89	5,410,657.68	1,324,398,784.21
Goodsonhand	8,023,281,968.11	67,217,791.93	7,956,064,176.18	3,843,140,662.09	61,496,691.86	3,781,643,970.23
Revolvingmaterials	57,309,755.00	2,374.56	57,307,380.44	49,272,045.90	15,000.03	49,257,045.87
Goodssold	29,388,057.62	160,985.17	29,227,072.45	154,254,852.98	2,690,065.64	151,564,787.34
Materialsintransit	42,757,516.88	0.00	42,757,516.88	1,567,293.31	0.00	1,567,293.31
Workinprocess-outsourced	923,498.10	0.00	923,498.10	18,349,175.85	0.00	18,349,175.85
Total	13,340,554,956.85	129,545,575.70	13,211,009,381.15	7,790,921,194.89	90,063,306.73	7,700,857,888.16

(2)Provisionfordeclineinvalueofinventoriesandprovisionforimpairmentofcontractperformancecost

InRMB

Item	OpeningBalance	Increaseinthecurrentperiod		Decreaseinthecurrentperiod		ClosingBalance
Item	OpeningBalance	Provision	Other	Reversalorwriteoff	Other	ClosingBalance
Rawmaterial	20,450,891.52	13,458,112.74	0.00	3,020,592.33	72,178.54	30,816,233.39
Productsinprocess	5,410,657.68	25,569,567.59	0.00	38,763.03	-406,728.41	31,348,190.65
Goodsonhand	61,496,691.86	23,877,877.36	-143,411.45	17,145,550.61	867,815.23	67,217,791.93
Revolvingmaterials	15,000.03	-12,625.47	0.00	0.00	0.00	2,374.56
Goodssold	2,690,065.64	-2,529,080.47	0.00	0.00	0.00	160,985.17

Total

90,063,306.73

60,363,851.75

-143,411.45

20,204,905.97

533,265.36

129,545,575.70

(3)Descriptionsonclosingbalanceofinventoriescontainingcapitalizedamountofborrowingcosts

(4)Descriptionsoncurrentamortizationamountofcontractperformancecosts

10.Contractassets

InRMB

Item	ClosingBalance			OpeningBalance
	Bookbalance	Provisionforimpairment	Bookvalue	Bookbalance	Provisionforimpairment	Bookvalue

Theamountofandreasonsforsignificantchangesinthebookvalueofcontractassetsinthecurrentperiod:

InRMB

Item

Changeamount

Reasonforchange

Ifthebad-debtprovisionofcontractassetsismadeaccordingtothegeneralmodelofexpectedcreditloss,pleaserefertothedisclosuremethodofotherreceivablestodisclosetherelevantinformationofbaddebtprovision:

?Applicable√N/AProvisionforimpairmentofcontractassetsinthecurrentperiod

InRMB

Item

Provision

Reversal

Writeoff/cancellation

Reason

Otherdescriptions:

11.Held-for-saleassets

InRMB

Item

Closingbookbalance

Provisionforimpairment

Closingbookvalue

Fairvalue

Estimateddisposalcosts

Estimateddisposaltime

Otherdescriptions:

12.Currentportionofnon-currentassets

InRMB

Item

ClosingBalance

OpeningBalance

Significantdebtinvestments/otherdebtinvestments

InRMB

Debtitem	ClosingBalance				OpeningBalance
Debtitem	Facevalue	Couponrate	Effectiveinterestrate	Maturedate	Facevalue	Couponrate	Effectiveinterestrate	Maturedate

Otherdescriptions:

13.Othercurrentassets

InRMB

Item	ClosingBalance	OpeningBalance
Inputtaxtobededucted	1,540,111,512.16	1,176,940,503.21
Incometaxprepaid	257,446,420.71	286,319,473.87
Other	6,927,712.62	21,191,174.65
Total	1,804,485,645.49	1,484,451,151.73

Otherdescriptions:

14.Debtinvestments

InRMB

Item	ClosingBalance			OpeningBalance
	Bookbalance	Provisionforimpairment	Bookvalue	Bookbalance	Provisionforimpairment	Bookvalue

Significantdebtinvestments

InRMB

Debtitem	ClosingBalance				OpeningBalance
Debtitem	Facevalue	Couponrate	Effectiveinterestrate	Maturedate	Facevalue	Couponrate	Effectiveinterestrate	Maturedate

Provisionforimpairment

InRMB

Bad-debtprovision	StageI	StageII	StageIII	Total
Bad-debtprovision	12-monthECL	LifetimeECL(withoutcreditimpaired)	LifetimeECL(withcreditunimpaired)	Total
BalanceasatJanuary1,2020inthecurrentperiod	——	——	——	——

Changesinthebookbalanceoftheprovisionforlosswithsignificantamountofchangesinthecurrentperiod

□Applicable√N/AOtherdescriptions:

15.Otherdebtinvestments

InRMB

Item

Openingbalance

Accruedinterest

Changesinfairvalueinthecurrentperiod

Closingbalance

Cost

Cumulativechangesinfairvalue

Cumulativeprovisionforlossrecognizedinothercomprehensiveincome

Remarks

Othersignificantdebtinvestments

InRMB

Otherdebtitem	ClosingBalance				OpeningBalance
Otherdebtitem	Facevalue	Couponrate	Effectiveinterestrate	Maturedate	Facevalue	Couponrate	Effectiveinterestrate	Maturedate

Provisionforimpairment

InRMB

Bad-debtprovision	StageI	StageII	StageIII	Total
Bad-debtprovision	12-monthECL	LifetimeECL(withcreditimpaired)	LifetimeECL(withcreditunimpaired)	Total
BalanceasatJanuary1,2020inthecurrentperiod	——	——	——	——

Changesinthebookbalanceoftheprovisionforlosswithsignificantamountofchangesinthecurrentperiod

□Applicable√N/AOtherdescriptions:

16.Long-termreceivables

(1)Long-termreceivables

InRMB

Item	ClosingBalance			OpeningBalance			Discountraterange
	Bookbalance	Bad-debtprovision	Bookvalue	Bookbalance	Bad-debtprovision	Bookvalue

Impairmentofbad-debtprovision

InRMB

Bad-debtprovision

StageI

StageII

StageIII

Total

	12-monthECL	LifetimeECL(withcreditimpaired)	LifetimeECL(withcreditunimpaired)
BalanceasatJanuary1,2020inthecurrentperiod	——	——	——	——

Changesinbookbalanceofprovisionforlosswithsignificantchangesinthecurrentperiod

□Applicable√N/A

(2)Long-termreceivablesderecognizedduetotransferoffinancialassets

(3)Amountofassetsandliabilitiesformedbytransferringlong-termreceivablesandcontinuinginvolvement

Otherdescriptions

17.Long-termequityinvestments

InRMB

Investee	Openingbalance(bookvalue)	Increaseanddecreaseinthecurrentperiod								Closingbalance(bookvalue)	Closingbalanceofprovisionforimpairment
Investee	Openingbalance(bookvalue)	Additionalinvestment	Reducedinvestment	Investmentprofitorlossrecognizedunderequitymethod	Othercomprehensiveincomeadjustment	Otherchangesinequity	Declaredcashdividendsorprofits	Provisionforimpairment	Other	Closingbalance(bookvalue)	Closingbalanceofprovisionforimpairment
I.Jointventure
RiyimaoIndustrialCo.,Ltd.	77,160,654.68			18,394,906.69	-374,657.21		-8,758,307.43		-185,657.72	86,236,939.01
XuandeEnergyCo.,Ltd.	454,220.23			-453,732.03					-488.20
Subtotal	77,614,874.91			17,941,174.66	-374,657.21		-8,758,307.43		-186,145.92	86,236,939.01
II.Associates
SILICONCHSYSTEMSPRIVATELIMITED	25,502,902.88			-2,839,396.33						22,663,506.55
ZhuhaiKinwongFlexibleCircuitCo.,Ltd.	234,305,410.77			3,291,894.45						237,597,305.22	34,372,608.46
CaldigitHoldingLimited		55,510,273.80		5,295,883.15	-679,239.68				-892,336.71	59,234,580.56

AssemTechnologyCo.,Ltd.		55,251,818.12	-1,405,798.82	-18,304.30	26,148.20		-57,944.76	53,795,918.44
TaihanPrecisionCo.,Ltd.		97,442,171.83					-104,844.17	97,337,327.66
ChangshuLizhenSmartTechnologyPartnership(LimitedPartnership)		600,000,000.00						600,000,000.00
VietnamMeilvLuxshareCo.,Ltd.		83,531,280.00	2,516,084.31					86,047,364.31
Subtotal	259,808,313.65	891,735,543.75	6,858,666.76	-697,543.98	26,148.20		-1,055,125.64	1,156,676,002.74	34,372,608.46
Total	337,423,188.56	891,735,543.75	24,799,841.41	-1,072,201.19	26,148.20	-8,758,307.43	-1,241,271.56	1,242,912,941.75	34,372,608.46

Otherdescriptions

ChangshuLizhenSmartTechnologyPartnership(LimitedPartnership)wasjointlyestablishedbytheCompanyanditssubsidiaries,ChangshuLuxshareIndustrialInvestmentManagementCo.,Ltd.,andChangshuLuxshareCorporateManagementServicesPartnership(LimitedPartnership),inwhichtheCompanyandChangshuLuxshareCorporateManagementServicesPartnership(LimitedPartnership)arelimitedpartners,contributingRMB570millionandRMB5.4billionrespectively;theCompany’ssubsidiaryisageneralpartner,contributingRMB30million.Accordingtothepartnershipagreement,thepurposeofthepartnershipistoinvestinandacquiretargetsinthefieldofsystemassembly,caseassembly,andconsumerelectronics,orotherprojectsinChangshu;inrespectofpartnershipaffairpractice,themanagingpartnershallberesponsibleforday-to-dayaffairsofthepartnership,andhavetherighttoconcludecontractsandotheragreementsandcommitmentsonbehalfofthepartnershipinordertoachievethepartnershippurpose.Forprofitdistribution,exceptfortheagreeddistributionproportion,allinvestmentincomeobtainedbythepartnershipmaynotbereinvestedwithouttheconsentofallpartners,andtheoperatinglossesofthepartnershipshallbebornebyallpartnersinproportiontotheircapitalcontributions.Fortheabovereasons,theCompanydoesnotactuallycontroloverChangshuLizhenSmartTechnologyPartnership(LimitedPartnership),andthereforedoesnotincludeitinthescopeofconsolidation.

18.Otherinvestmentsinequityinstruments

InRMB

Item	ClosingBalance	OpeningBalance
BeijingXloongTechnologiesCo.,Ltd.	10,977,900.79	10,752,374.31
BeijingWiparkingTechnologyCo.,Ltd.	9,150,443.30	8,789,652.45

JingtuoLiyinTechnology(Beijing)Co.,Ltd.	3,724,908.43	3,675,044.01
ZhejiangTonyElectronicCo.,Ltd	114,221,319.04	170,733,150.00
Total	138,074,571.56	193,950,220.77

Itemizeddisclosureofnon-tradingequityinstrumentinvestmentsinthecurrentperiod

InRMB

Projectname	Recognizeddividendincome	Cumulativegains	Cumulativelosses	Amountofothercomprehensiveincomecarriedovertoretainedearnings	Reasonsforbeingdesignatedasequityinstrumentsatfairvaluethroughothercomprehensiveincome	Reasonsforcarry-overofothercomprehensiveincometoretainedearnings
BeijingXloongTechnologiesCo.,Ltd.		977,900.79			Notforshort-termtradingpurposes
BeijingWiparkingTechnologyCo.,Ltd.			-849,556.70		Notforshort-termtradingpurposes
JingtuoLiyinTechnology(Beijing)Co.,Ltd.		724,908.43			Notforshort-termtradingpurposes
ZhejiangTonyElectronicCo.,Ltd		94,854,026.52		22,570,692.52	Notforshort-termtradingpurposes	Disposalofpartialequities

Otherdescriptions:

19.Othernon-currentfinancialassets

InRMB

Item

ClosingBalance

OpeningBalance

Otherdescriptions:

20.Investmentproperties

(1)Investmentpropertiesmeasuredatcost

√Applicable□N/A

InRMB

Item	Buildings	Landuseright	Constructioninprogress	Total
I.Originalcarryingamount
1.Openingbalance	48,092,587.77	16,462,696.47		64,555,284.24
2.Increaseinthecurrentperiod	416,874.16			416,874.16
(1)Purchase
(2)Transferfrominventories\fixedassets\constructioninprogress	416,874.16			416,874.16
(3)Increaseinbusinesscombination

3.Decreaseinthecurrentperiod	1,657,313.52	2,479,861.45	4,137,174.97
(1)Disposal	1,635,786.91	2,447,106.02	4,082,892.93
(2)Othertransferout	21,526.61	32,755.43	54,282.04
Otherdecrease
4.Closingbalance	46,852,148.41	13,982,835.02	60,834,983.43
II.Accumulateddepreciationandamortization
1.Openingbalance	11,898,806.50		11,898,806.50
2.Increaseinthecurrentperiod	1,937,521.84		1,937,521.84
(1)Provisionoramortization	1,937,521.84		1,937,521.84

3.Decreaseinthecurrentperiod	593,455.15	593,455.15
(1)Disposal	586,057.33	586,057.33
(2)Othertransferout	7,397.82	7,397.82

4.Closingbalance

13,242,873.19

III.Provisionforimpairment

1.OpeningBalance

2.Increaseinthecurrentperiod

(1)Provision

3.Decreaseinthecurrentperiod

(1)Disposal

(2)Othertransferout

4.Closingbalance
IV.Bookvalue
1.Closingbalance	33,609,275.22	13,982,835.02	47,592,110.24
2.Openingbalance	36,193,781.27	16,462,696.47	52,656,477.74

（(2)Investmentpropertiesmeasuredatfairvalue

?Applicable√N/A

(3)Investmentpropertieswithouttitlecertificate

InRMB

Item

Bookvalue

Reasonsfornotobtainingthetitlecertificate

Othernotes

21.Fixedassets

InRMB

Item	ClosingBalance	OpeningBalance
Fixedassets	19,761,012,854.95	13,707,298,535.36
Total	19,761,012,854.95	13,707,298,535.36

(1)Fixedassets

InRMB

Item

Buildings

Officeequipment

Machineryequipment

Computerequipment

Auxiliaryproduction

Transportation

Otherequipment

Mouldequipment

Total

					equipment	equipment
I.Originalcarryingamount
1.OpeningBalance	4,544,013,678.10	156,341,023.99	8,181,591,674.43	125,793,925.18	1,454,366,545.86	43,266,776.57	1,553,202,096.75	1,250,190,928.04	17,308,766,648.92
2.Increaseinthecurrentperiod	2,492,192,167.48	48,347,866.40	4,314,086,470.71	40,443,707.53	569,707,147.67	7,934,264.41	1,406,352,642.72	1,160,993,026.63	10,040,057,293.55
(1)Purchase	1,376,914,445.58	47,371,263.44	3,710,468,499.89	39,983,029.14	504,361,471.28	7,926,608.05	1,402,523,140.31	1,104,246,919.00	8,329,831,867.42
(2)Transferinfromconstructioninprogress	1,104,725,605.43	76,610.52	600,513,202.51	461,794.41	65,394,619.23		2,637,529.78	56,744,583.48	1,694,517,454.63
(3)Increaseinbusinesscombination							1,192,403.53		1,192,403.53
Other	10,552,116.47	899,992.44	3,104,768.31	-1,116.02	-48,942.84	7,656.36	-430.90	1,524.15	14,515,567.97
3.Decreaseinthecurrentperiod	14,574,834.24	8,129,332.62	1,789,988,570.25	15,504,093.64	207,991,692.00	3,017,838.40	179,030,360.83	187,522,202.07	2,405,758,924.05
(1)Disposalorscrap	4,734,995.24	6,993,109.39	1,287,833,063.55	15,388,508.94	207,846,950.28	2,905,349.27	178,244,446.32	187,451,181.22	1,891,397,604.21
Other	9,839,839.00	1,136,223.23	502,155,506.70	115,584.70	144,741.72	112,489.13	785,914.51	71,020.85	514,361,319.84
4.ClosingBalance	7,021,631,011.34	196,559,557.77	10,705,689,574.89	150,733,539.07	1,816,082,001.53	48,183,202.58	2,780,524,378.64	2,223,661,752.60	24,943,065,018.42
II.Accumulateddepreciation
1.	699,447,771	63,593,544.	1,430,353,1	40,297,931.	374,257,195	20,728,806.	473,785,977	431,843,198	3,534,307,5

Openingbalance	.71	06	21.23	56	.19	43	.54	.93	46.65
2.Increaseinthecurrentperiod	259,995,232.86	28,329,216.99	895,638,952.13	20,651,189.65	247,118,761.61	4,987,517.73	378,515,628.73	388,140,993.58	2,223,377,493.28
(1)Provision	253,562,583.58	27,590,506.72	890,016,029.45	20,749,387.24	247,192,980.04	4,979,361.94	378,280,200.82	388,139,528.62	2,210,510,578.41
Other	6,432,649.28	738,710.27	5,622,922.68	-98,197.59	-74,218.43	8,155.79	235,427.91	1,464.96	12,866,914.87
3.Decreaseinthecurrentperiod	3,060,287.77	4,845,104.83	399,134,860.42	5,409,087.04	70,251,075.09	1,624,321.34	79,177,957.74	89,489,851.58	652,992,545.81
(1)Disposalorscrap	1,779,929.69	4,599,344.73	336,142,693.31	5,372,392.83	35,677,962.98	1,607,891.93	79,112,373.52	86,344,097.74	550,636,686.73
Other	1,280,358.08	245,760.10	62,992,167.11	36,694.21	34,573,112.11	16,429.41	65,584.22	3,145,753.84	102,355,859.08
4.ClosingBalance	956,382,716.80	87,077,656.22	1,926,857,212.94	55,540,034.17	551,124,881.71	24,092,002.82	773,123,648.53	730,494,340.93	5,104,692,494.12
III.Provisionforimpairment
1.OpeningBalance		1,832,839.19	23,065,704.76	24,706.94	2,857,463.43	42,534.87	16,267,714.79	23,069,602.93	67,160,566.91
2.Increaseinthecurrentperiod		8,390.80	81,189,350.05	17,490.44	524,635.23	-42,534.87	-4,462,197.74	1,689,925.38	78,925,059.29
(1)Provision		8,390.80	80,987,860.48	17,490.44	524,635.23	-42,534.87	-4,462,197.74	1,689,925.38	78,723,569.72
Other			201,489.57						201,489.57
3.Decreaseinthecurrentperiod		34,548.67	56,283,660.26	11,041.09	818,658.55		11,191,869.73	386,178.55	68,725,956.85
(1)Disposalor		34,548.67	56,283,660.26	11,041.09	818,658.55		11,191,869.73	386,178.55	68,725,956.85

scrap
Other
4.Closingbalance		1,806,681.32	47,971,394.55	31,156.29	2,563,440.11		613,647.32	24,373,349.76	77,359,669.35
IV.Bookvalue
1.Closingbalance	6,065,248,294.54	107,675,220.23	8,730,860,967.40	95,162,348.61	1,262,393,679.71	24,091,199.76	2,006,787,082.79	1,468,794,061.91	19,761,012,854.95
2.Openingbalance	3,844,565,906.39	90,914,640.74	6,728,172,848.44	85,471,286.68	1,077,251,887.24	22,495,435.27	1,063,148,404.42	795,278,126.18	13,707,298,535.36

(2)Temporarilyidlefixedassets

InRMB

Item

Originalcarryingamount

Accumulateddepreciation

Provisionforimpairment

Bookvalue

Remarks

(3)Fixedassetsleasedinthroughfinancelease

InRMB

Item

Originalcarryingamount

Accumulateddepreciation

Provisionforimpairment

bookvalue

(4)Fixedassetsleasedoutthroughoperatinglease

(5)Fixedassetswithouttitlecertificate

InRMB

Item	Bookvalue	Reasonsfornotobtainingthetitlecertificate
Workshop,officeanddormitorybuildingsofFujianJK	10,115,951.99	Note1
PrecisionmachineryworkshopofBoshuoElectronics	6,089,484.25	Newlybuilt;thecertificateisinprocess
NewhousesandbuildingsofLuxshareElectronicKunshan	385,256,993.67	Newlybuilt;thecertificateisinprocess
ChangshuLuxshareFactoryandAuxiliaryBuildingProject	313,734,239.12	Newlybuilt;thecertificateisinprocess

Item	Closingbookvalue

NewDormitoryofZhejiangIntelligentManufacture	133,995,943.37	Newlybuilt;thecertificateisinprocess
CadreTrainingCenterofMeiteTechnology(Suzhou)Co.,Ltd.	1,443,777.51	Newlybuilt;thecertificateisinprocess
PlantandDormitoryforJiangxiIntelligentManufacture	427,715,309.33	Newlybuilt;thecertificateisinprocess
ComplexBuildingandDormitoryofDongguanLuxshare	151,693,631.20	Newlybuilt;thecertificateisinprocess

Otherdescriptions

Note1:Thelandoccupiedbythestaffdormitoryisinnatureanallottedland,theuserightofwhichwasacquiredbytheCompanybymeansoftransferthroughagreementinlinewithrelevantregulationsatthattime.Thepropertytitleformedbasedontheallottedlanduserightisnotallowedtobetransferredunlesstheallocatedlanduserightisconvertedtopaidlanduseright.However,theexistinglanduserightcannotbetransferredbyagreement,asaresultofwhichthepropertytitletothestaffdormitorybuildinghasnotbeentransferredtoFujianJK.

(6)Disposaloffixedassets

InRMB

Item

ClosingBalance

OpeningBalance

Otherdescriptions

22.Constructioninprogress

InRMB

Item	ClosingBalance	OpeningBalance
Constructioninprogress	1,596,064,894.58	865,549,438.56
Total	1,596,064,894.58	865,549,438.56

(1)Constructioninprogress

InRMB

Item	ClosingBalance			OpeningBalance
Item	Bookbalance	Provisionforimpairment	Bookvalue	Bookbalance	Provisionforimpairment	Bookvalue
Workshopconstruction	1,311,923,496.51		1,311,923,496.51	646,783,362.29		646,783,362.29
Mouldimprovement	4,759,515.63		4,759,515.63	32,471,966.51		32,471,966.51
Equipment	145,475,258.95		145,475,258.95	184,343,732.88		184,343,732.88

installationengineering
Other	133,906,623.49	133,906,623.49	1,950,376.88	1,950,376.88
Total	1,596,064,894.58	1,596,064,894.58	865,549,438.56	865,549,438.56

(2)Changesinsignificantconstructionsinprogressforthecurrentperiod

InRMB

Projectname	Budget	Openingbalance	Increaseinthecurrentperiod	Amounttransferredtofixedassetsinthecurrentperiod	Otherdecreaseinthecurrentperiod	Closingbalance	Proportionofaccumulatedprojectinvestmentinbudget	Projectprogress	Amountofaccumulatedcapitalizedinterest	Including:Amountofcurrentcapitalizedinterest	Currentinterestcapitalizationrate	Sourceoffunds
ChangshuLuxshareworkshopconstruction	786,917,140.87		643,399,268.56	277,048,598.87	2,175,096.00	364,175,573.69	81.76%	81.76
DongguanLuxshareworkshopconstruction	1,000,000,000.00	168,993,660.03	101,006,322.64	197,298,704.82		72,701,277.85	95.00%	95.00				Fundsfromequityfinancing
WorkshopProject	500,000,000.00	83,849,433.44	207,418,190.22	5,615,836.45	5,807,816.60	279,843,970.61	58.25%	58.25
IntelligentManufactureJiangxiworkshopconstruction	1,082,665,773.12	189,572,791.91	1,204,150.95	101,233,151.33		89,543,791.53	75.00%	80.00				Fundsfromequityfinancing
Zhejiangintelligentmanufacturingworkshopconstruction	144,730,000.00	15,602,124.80	226,829,927.62	242,432,052.42			100.00%	100.00
YunzhongphaseI	1,700,000,000.00	87,679,914.12	28,170,000.00	87,679,914.12		28,170,000.00	80.00%	80.00

andphaseIIworkshopconstruction
Yi’anprojectconstruction	660,786,440.65	80,220,457.42	424,517,985.48	138,057,144.69	5,193,555.51	361,487,742.70	76.38%	76.38
Total	5,875,099,354.64	625,918,381.72	1,632,545,845.47	1,049,365,402.70	13,176,468.11	1,195,922,356.38	--	--	--

(3)Provisionforimpairmentofconstructioninprogressforthecurrentperiod

InRMB

Item

Currentprovisionamount

Reasonsforprovision

Otherdescriptions

(4)Engineeringmaterials

InRMB

Item	ClosingBalance			OpeningBalance
	Bookbalance	Provisionforimpairment	Bookvalue	Bookbalance	Provisionforimpairment	Bookvalue

Otherdescriptions:

23.Bearerbiologicalassets

(1)Bearerbiologicalassetsmeasuredatcost?Applicable√N/A

(2)Bearerbiologicalassetsmeasuredatfairvalue?Applicable√N/A

24.Oilandgasassets?Applicable√N/A

25.Right-of-useassets

InRMB

Item

Total

Othernotes:

26.Intangibleassets

(1)Intangibleassets

InRMB

Item	Landuseright	Patentright	Non-patenttechnology	Software	Other	Total
I.Originalcarryingamount
1.Openingbalance	1,022,608,330.65	1,771,459.90	71,902,729.82	16,318,959.18	42,059,231.19	1,154,660,710.74
2.Increaseinthecurrentperiod	257,568,074.66	77,940.05	17,144,353.16	109,894,112.81		384,684,480.68
(1)Purchase	257,442,863.77	66,981.13	17,073,890.16	109,889,559.91		384,473,294.97
(2)InternalR&D
(3)Increaseinbusinesscombination
Other	125,210.89	10,958.92	70,463.00	4,552.90		211,185.71
3.Decreaseinthecurrentperiod	101,574,187.62	921,331.82	2,140,160.48	-341,853.96	21,388.19	104,315,214.15
(1)Disposal	14,198,228.54	486,066.04	1,276,656.56	60,344.86		16,021,296.00
Decreaseinbusinesscombination	62,418,000.00					62,418,000.00
Other	24,957,959.08	435,265.78	863,503.92	-402,198.82	21,388.19	25,875,918.15
4.ClosingBalance	1,178,602,217.69	928,068.13	86,906,922.50	126,554,925.95	42,037,843.00	1,435,029,977.27
II.Accumulatedamortization
1.OpeningBalance	66,801,559.21	717,432.77	31,090,251.01	6,196,585.34	2,129,036.88	106,934,865.21

2.Increaseinthecurrentperiod	22,720,572.80	84,456.51	18,392,710.88	22,013,583.55	3,645,854.39	66,857,178.13
(1)Provision	22,720,572.80	74,790.68	18,328,216.88	22,011,767.67	3,645,854.39	66,781,202.42
Other		9,665.83	64,494.00	1,815.88		75,975.71
3.Decreaseinthecurrentperiod	2,073,254.46	203,138.67	1,764,307.81	-125,490.23	8,065.01	3,923,275.72
(1)Disposal	287,912.59	20,252.80	1,241,156.17	10,057.49		1,559,379.05
Decreaseinbusinesscombination	1,456,420.00					1,456,420.00
Other	328,921.87	182,885.87	523,151.64	-135,547.72	8,065.01	907,476.67
4.ClosingBalance	87,448,877.55	598,750.61	47,718,654.08	28,335,659.12	5,766,826.26	169,868,767.62
III.Provisionforimpairment
1.OpeningBalance
2.Increaseinthecurrentperiod
(1)Provision
Other
3.Decreaseinthecurrentperiod
(1)Disposal
Other
4.ClosingBalance
IV.Bookvalue
1.Closingbalance	1,091,153,340.14	329,317.52	39,188,268.42	98,219,266.83	36,271,016.74	1,265,161,209.65
2.Opening	955,806,771.44	1,054,027.13	40,812,478.81	10,122,373.84	39,930,194.31	1,047,725,845.53

TheproportionofintangibleassetsformedthroughinternalR&Dinthebalanceofintangibleassetsattheendofthisperiod.

(2)Landuserightwithouttitlecertificate

InRMB

balance

Item

Bookvalue

Reasonsfornotobtainingthetitlecertificate

Otherdescriptions:

27.Developmentexpenditure

InRMB

Item	OpeningBalance	Increaseinthecurrentperiod			Decreaseinthecurrentperiod			ClosingBalance
		Internaldevelopmentexpenditure	Other		Recognizedasintangibleassets	Convertedtocurrentprofitorloss

Otherdescriptions

28.Goodwill

(1)Originalcarryingamountofgoodwill

InRMB

TotalInvesteenameoreventforminggoodwill

Investeenameoreventforminggoodwill	OpeningBalance	Increaseinthecurrentperiod		Decreaseinthecurrentperiod		ClosingBalance
Investeenameoreventforminggoodwill	OpeningBalance	Formedbybusinesscombination	Other	Disposal	Other	ClosingBalance
ASAPTechnology(Jiangxi)Co.,Ltd.	42,325,745.85					42,325,745.85
LantoElectronicLimited	376,682,429.24					376,682,429.24
BozhouLantoElectronicLimited	9,564,372.61					9,564,372.61
M&Aof	53,174,339.31					53,174,339.31

KERTONGgoodwill
FujianJKWiringSystemsCo.,Ltd.	17,717,209.29		17,717,209.29
HuzhouJiudingElectronicCo.,Ltd.	1,730,318.45		1,730,318.45
SpeedTechCorp.	26,656,146.69		26,656,146.69
LuxshareElectronicTechnology(Kunshan)Co.,Ltd.	4,582,880.91		4,582,880.91
SukkunststofftechnikGmbH	9,552,894.63		9,552,894.63
MeiteTechnology(Suzhou)Co.,Ltd.	8,570,588.06		8,570,588.06
MeilvElectronic(Huizhou)Co.,Ltd.	6,575,713.14		6,575,713.14
MeilvElectronics(Shanghai)Co.,Ltd.	454,304.97		454,304.97
WuxiHuihongElectronicCo.,Ltd.	3,102,735.14		3,102,735.14
CastleRock,Inc.	8,303,254.98		8,303,254.98
TaiqiaoInvestmentCo.,Ltd.		441,595.93	441,595.93
Total	568,992,933.27	441,595.93	569,434,529.20

(2)Provisionforimpairmentofgoodwill

InRMB

Investeenameoreventforming	OpeningBalance	Increaseinthecurrentperiod		Decreaseinthecurrentperiod		ClosingBalance
		Provision	Other	Disposal	Other

goodwill
MeiteTechnology(Suzhou)Co.,Ltd.	8,570,588.06	8,570,588.06
SukkunststofftechnikGmbH	9,552,894.63	9,552,894.63
MeilvElectronics(Shanghai)Co.,Ltd.	454,304.97	454,304.97
FujianJKWiringSystemsCo.,Ltd.	17,717,209.29	17,717,209.29
Total	36,294,996.95	36,294,996.95

RelevantinformationonassetgrouporsetofassetgroupstowhichthegoodwillbelongsDescriptionsonthegoodwillimpairmenttestprocess,keyparameters(suchasthegrowthrateintheforecastperiod,thegrowthrateinthestableperiod,theprofitrate,thediscountrate,theforecastperiod,etc.,whenforecastingthepresentvalueoffuturecashflow)andtherecognitionmethodofgoodwillimpairmentloss

ThegoodwilloftheCompanyisformedbybusinesscombinationsnotinvolvingenterprisesundercommoncontrolinpreviousyearsandthisyear.Onthebalancesheetdate,theCompanyconductedimpairmenttestsongoodwill.Therecoverableamountoftheassetgroupinvolvedingoodwillisdeterminedaccordingtothepresentvalueofthefuturecashflowoftheassetgroupandthenetrealizablevalue.Themanagementdeterminesthegrowthrateandgrossmarginbasedonthemacromarketenvironment,historicalexperienceandthedevelopmentstageforecastofproductsegmentsinvolvedindifferentassetgroups.Dependingonthedifferentassetgroupsinvolved,thegrowthrateusedintheforecastforthecurrentyearis1.00%-25.00%,thegrossmarginis13.00%-23.81%,andthediscountrateis10.75%-12.01%.Theparametersusedingoodwillimpairmenttestofmajorassetgroupsareasfollows:

Assetgroupname	Grossmargin	Growthrate	Discountrate
ASAPTechnology(Jiangxi)Co.,Ltd.	18%-19.48%	1.4%-1.6%	10.75%
LantoElectronicLimited	22.00%-23.81%	10.00%-10.82%	11.25%
ShenzhenKertongIndustrialCo.,Ltd.	22%-23%	23.00%-24.9%	12.01%

InfluenceofgoodwillimpairmenttestOtherdescriptions

29.Long-termprepaidexpenses

InRMB

Item	OpeningBalance	Increaseinthecurrentperiod	Amortizationamountinthecurrentperiod	Otherreducedamount	ClosingBalance
Houserepairfee	301,886,866.87	228,173,592.60	105,277,059.74		424,783,399.73
Other	50,155,584.53	45,458,799.06	32,310,738.35		63,303,645.24
Total	352,042,451.40	273,632,391.66	137,587,798.09		488,087,044.97

Otherdescriptions

30.Deferredincometaxassets/deferredincometaxliabilities

(1)Deferredincometaxassetsthatarenotoffset

InRMB

Item	ClosingBalance		OpeningBalance
Item	Deductibletemporarydifferences	Deferredincometaxassets	Deductibletemporarydifferences	Deferredincometaxassets
Provisionforimpairmentofassets	178,973,738.82	27,259,356.59	106,187,235.36	16,759,791.66
Deductiblelosses	1,093,128,995.53	151,850,386.35	157,932,162.92	15,959,512.69
Exchangedifferencesofforeignoperations	27,288,912.60	5,457,782.50	26,415,900.11	5,283,180.10
Unrealizedprofitofinternaltransaction	197,095,777.59	29,564,366.64	170,180,940.60	25,527,141.08
Non-leavebonus	1,773,724.21	354,744.89	1,749,973.08	349,994.62
Valuationofderivativefinancialinstruments			960,650.06	144,097.51
Governmentgrants	396,003,023.27	70,194,455.38	232,487,846.06	35,768,155.06
Share-basedpayment	390,170,003.29	67,974,211.12	241,604,404.52	38,422,671.30
Other	15,122,457.21	3,179,130.74	5,732,001.17	1,260,646.35
Total	2,299,556,632.52	355,834,434.21	943,251,113.88	139,475,190.37

(2)Deferredincometaxliabilitiesthatarenotoffset

InRMB

Item	ClosingBalance		OpeningBalance
Item	Taxabletemporarydifference	Deferredtaxincomeliabilities	Taxabletemporarydifference	Deferredtaxincomeliabilities
Assetsvaluationappreciationofbusiness	93,903,990.20	16,054,921.33	99,810,634.68	16,786,151.78

combinationnotinvolvingenterprisesundercommoncontrol
Changesinfairvalueofotherinvestmentsinequityinstruments	95,831,927.34	14,374,789.10	148,985,524.31	22,234,972.50
Accelerateddepreciationoffixedassets	5,363,997,971.61	806,120,054.47	3,405,624,697.88	511,670,187.93
Supportfundsallocatedbythegovernment	15,046,630.73	2,256,994.61	15,434,326.67	2,315,149.00
Accumulativerecognitionofoverseasinvestmentinterestsbyequitymethod	342,518,297.34	68,503,659.35	205,334,910.98	41,066,982.12
Prepaidpension	4,849,056.41	969,811.28	4,606,433.66	921,286.73
Allowanceforbaddebtoverrun	682,946.59	136,589.23	663,432.19	132,686.44
Valuationofderivativefinancialinstruments	320,117,316.21	48,017,597.53	14,537,134.42	2,311,933.44
Other	51,621,287.35	9,657,796.05	3,129,960.92	745,043.06
Total	6,288,569,423.78	966,092,212.95	3,898,127,055.71	598,184,393.00

(3)Deferredincometaxassetsorliabilitiespresentedinnetamountafteroffsetting

InRMB

Item	Offsetamountbetweendeferredtaxassetsandliabilitiesattheendoftheperiod	Closingbalanceofdeferredtaxassetsorliabilitiesafteroffset	Offsetamountbetweendeferredtaxassetsandliabilitiesatthebeginningoftheperiod	Openingbalanceofdeferredtaxassetsorliabilitiesafteroffset
Deferredtaxassets		355,834,434.21		139,475,190.37
Deferredtaxliabilities		966,092,212.95		598,184,393.00

(4)Detailsofunrecognizeddeferredincometaxassets

InRMB

Item

ClosingBalance

OpeningBalance

(5)Thedeductiblelossesofunrecognizeddeferredincometaxassetswillbedueinthefollowingyears

InRMB

Particularyear

Closingamount

Openingamount

Remarks

Otherdescriptions:

31.Othernon-currentassets

InRMB

Item	ClosingBalance			OpeningBalance
Item	Bookbalance	Provisionforimpairment	Bookvalue	Bookbalance	Provisionforimpairment	Bookvalue
Prepaymentsforequipment,projectandland	1,212,186,290.84		1,212,186,290.84	1,422,892,638.91		1,422,892,638.91
Prepaidpension	4,849,056.41		4,849,056.41	4,606,433.66		4,606,433.66
Other	6,164,295.36		6,164,295.36	5,067,455.80		5,067,455.80
Total	1,223,199,642.61		1,223,199,642.61	1,432,566,528.37		1,432,566,528.37

Otherdescriptions:

32.Short-termborrowings

(1)ClassificationofShort-termborrowings

InRMB

Item	ClosingBalance	OpeningBalance
Pledgeloans	5,382,006,847.47	2,231,288,461.26
Mortgageloans	80,950,818.66	41,868,000.00
Guaranteedloans	871,234,184.03	844,714,453.79
Creditloans	1,242,876,948.33	1,048,431,308.12
Total	7,577,068,798.49	4,166,302,223.17

Descriptionsonclassificationofshort-termborrowings:

(2)Overduebutunpaidshort-termborrowings

Thetotalamountofoverduebutunpaidshort-termborrowingsattheendoftheperiodisRMB,ofwhichthesignificantoverdueandoutstandingshort-termborrowingsareasfollows:

InRMB

Borrower

ClosingBalance

Loaninterestrate

Overduetime

Overdueinterestrate

Otherdescriptions:

33.Held-for-tradingfinancialliabilities

InRMB

Item	ClosingBalance	OpeningBalance
Held-for-tradingfinancialliabilities		1,001,553.00
Including:
Derivativefinancialliabilities		1,001,553.00
Including:
Total		1,001,553.00

Otherdescriptions:

34.Derivativefinancialliabilities

InRMB

Item

ClosingBalance

OpeningBalance

Otherdescriptions:

35.Notespayable

InRMB

Category	ClosingBalance	OpeningBalance
Commercialacceptancebill	280,012.21
Bankacceptancebill	128,292,099.33	206,496,660.20
Total	128,572,111.54	206,496,660.20

ThetotalamountofnotespayableduebutunpaidattheendofthisperiodisRMB.

36.Accountspayable

(1)Presentationofaccountspayable

InRMB

Item	ClosingBalance	OpeningBalance
Withinoneyear	23,001,670,496.95	17,254,624,115.62
Onetotwoyears	48,074,585.64	6,716,724.96
Twotothreeyears	777,315.18	5,634,282.62
Morethanthreeyears	1,035,206.06	1,248,056.96
Total	23,051,557,603.83	17,268,223,180.16

(2)Significantaccountspayablewithagingover1year

InRMB

Item

ClosingBalance

Reasonsfornon-paymentorcarryingforward

Entity1	7,060,756.36	Unsettled
Entity2	5,047,010.15	Unsettled
Entity3	3,607,807.50	Unsettled
Entity4	3,262,450.00	Unsettled
Entity5	1,213,928.00	Unsettled
Total	20,191,952.01	--

Otherdescriptions:

37.Receiptsinadvance

(1)Presentationofreceiptsinadvance

InRMB

Item	ClosingBalance	OpeningBalance
Withinoneyear		100,037,449.20
Onetotwoyears		1,511,930.01
Twotothreeyears		60,000.00
Total		101,609,379.21

(2)Significantreceiptsinadvancewithagingover1year

InRMB

Item

ClosingBalance

Reasonsfornon-paymentorcarryingforward

38Contractliabilities

InRMB

Item	ClosingBalance	OpeningBalance
Goodspaymentsreceivedinadvance	152,512,971.36	0.00
Total	152,512,971.36

Amountofandreasonforsignificantchangesinbookvalueduringthereportingperiod

InRMB

Item

Changeamount

Reasonforchange

39.Employeebenefitspayable

(1)Presentationofemployeebenefitspayable

InRMB

Item

OpeningBalance

Increase

Decrease

ClosingBalance

I.Short-termcompensation	1,390,049,933.20	11,477,740,914.72	11,505,531,953.21	1,362,258,894.71
II.Postemploymentbenefits-definedcontributionplan	33,268,964.54	485,266,194.82	483,260,369.76	35,274,789.60
III.Terminationbenefits	98,454.92	591,254.58	591,254.58	98,454.92
Total	1,423,417,352.66	11,963,598,364.12	11,989,383,577.55	1,397,632,139.23

(2)Presentationofshort-termcompensation

InRMB

Item	OpeningBalance	Increase	Decrease	ClosingBalance
1.Salary,bonus,allowanceandsubsidy	1,365,911,504.54	10,958,962,160.01	10,994,429,770.55	1,330,443,894.00
2.Employeewelfare	3,907,968.78	34,061,821.66	34,340,075.18	3,629,715.26
3.Socialinsurancepremium	17,649,747.03	282,229,522.08	276,586,215.52	23,293,053.59
Including:Medicalinsurancepremium	14,227,803.13	248,781,884.09	243,271,856.50	19,737,830.72
Employmentinjuryinsurancepremium	2,199,252.97	14,298,209.61	14,300,381.86	2,197,080.72
Maternityinsurancepremium	1,222,690.93	19,149,428.38	19,013,977.16	1,358,142.15
4.Housingprovidentfund	653,763.92	195,028,615.11	194,709,518.91	972,860.12
5.Tradeunionfundsandstaffeducationfunds	914,416.01	5,858,895.26	5,225,816.10	1,547,495.17
6.Othershort-termcompensation	1,012,532.92	1,599,900.60	240,556.95	2,371,876.57
Total	1,390,049,933.20	11,477,740,914.72	11,505,531,953.21	1,362,258,894.71

（3）Presentationofdefinedcontributionplan

InRMB

Item	OpeningBalance	Increase	Decrease	ClosingBalance
1.Basicendowmentinsurancepremium	32,460,745.49	459,483,031.72	457,500,084.73	34,443,692.48
2.Unemployment	808,219.05	25,783,163.10	25,760,285.03	831,097.12

insurancepremium
Total	33,268,964.54	485,266,194.82	483,260,369.76	35,274,789.60

Otherdescriptions:

40.Taxespayable

InRMB

Item	ClosingBalance	OpeningBalance
Valueaddedtax	51,405,224.41	22,190,181.00
Enterpriseincometax	61,775,887.49	123,745,112.07
Individualincometax	21,229,322.95	70,495,128.22
Urbanmaintenanceandconstructiontax	39,628,090.50	49,444,922.13
Propertytax	9,463,498.94	6,764,746.33
Educationsurcharges	24,409,566.22	29,750,942.00
Landusetax	2,197,387.91	1,632,262.33
Localeducationsurcharges	15,752,322.98	19,851,689.12
Stampduty	6,904,466.32	2,724,640.80
Other	4,655,723.91	1,033,698.68
Total	237,421,491.63	327,633,322.68

Otherdescriptions:

41.Otherpayables

InRMB

Item	ClosingBalance	OpeningBalance
Interestpayable		6,097,484.73
Otherpayables	146,162,097.14	346,292,787.04
Total	146,162,097.14	352,390,271.77

(1)Interestpayable

InRMB

Item	ClosingBalance	OpeningBalance
Interestonlong-termborrowingswithinterestpaidininstallmentsandprincipalrepayableatmaturity		624,916.67
Corporatebondinterest		290,958.90
Interestpayableonshort-termborrowings		5,181,609.16

Total

6,097,484.73

Significantoverduebutunpaidinterest:

InRMB

Borrower

Overdueamount

Reasonsfordelay

Otherdescriptions:

(2)Dividendspayable

InRMB

Item

ClosingBalance

OpeningBalance

Otherdescriptions:itisrequiredtodisclosethereasonsiftherearekeydividendspayablethathavenotbeenpaidformorethan1year.

(3)Otherpayables

1)Presentationofotherpayablesbynature

InRMB

Item	ClosingBalance	OpeningBalance
Within1year	144,334,594.60	324,372,366.62
1-2years	622,251.94	20,753,622.69
2-3years	410,000.00	966,797.73
Over3years	795,250.60	200,000.00
Total	146,162,097.14	346,292,787.04

2)Othersignificantaccountspayableagedover1year

InRMB

Item

ClosingBalance

Reasonsfornon-paymentorcarryingforward

Otherdescriptions

42.Held-for-saleliabilities

InRMB

Item

ClosingBalance

OpeningBalance

Otherdescriptions:

43.Non-currentliabilitiesduewithinoneyear

InRMB

Item	ClosingBalance	OpeningBalance
Long-termborrowingsduewithinoneyear	278,527,714.63	366,537,115.41
Total	278,527,714.63	366,537,115.41

Otherdescriptions:

44.Othercurrentliabilities

InRMB

Item	ClosingBalance	OpeningBalance
Short-termbondspayable	508,715,277.78	500,000,000.00
Government-backedfund	57,000,000.00	115,000,000.00
OutputVATtobelevied	17,673,149.75
Other	39,869,128.36	31,115,152.49
Total	623,257,555.89	646,115,152.49

Increaseanddecreaseinshort-termbondspayable:

InRMB

Bondname	Facevalue	Issuedate	Bondmaturity	Amountofissue	Openingbalance	Currentissue	Interestaccruedatfacevalue	Amortizationofpremiumanddiscount	Currentrepayment	ClosingBalance
Short-termbondspayable	100.00	December26,2019	270days	500,000,000.00	500,000,000.00		13,057,377.05		513,057,377.05
Short-termbondspayable	100.00	March05,2020	270days	1,000,000,000.00		1,000,000,000.00	21,452,054.79		1,021,452,054.79
Short-termbondspayable	100.00	April24,2020	270days	500,000,000.00		500,000,000.00	8,715,277.78			508,715,277.78
Total	--	--	--	2,000,000,000.00	500,000,000.00	1,500,000,000.00	43,224,709.62		1,534,509,431.84	508,715,277.78

Otherdescriptions:

45.Long-termborrowings

(1)Classificationoflong-termborrowings

InRMB

Item	ClosingBalance	OpeningBalance
Pledgeloans	1,878,341.29	1,949,694.88

Mortgageloans	1,301,034,722.05	1,527,173,950.10
Creditloans	192,286,175.07	33,785,179.32
Total	1,495,199,238.41	1,562,908,824.30

Descriptionsonclassificationoflong-termborrowings:

Otherdescriptions,includinginterestraterange:

46.Bondspayable

(1)Bondspayable

InRMB

Item	ClosingBalance	OpeningBalance
Convertiblebonds	2,475,423,249.98
Total	2,475,423,249.98

(2)Increaseanddecreaseinbondspayable(excludingpreferredshares,perpetualbondsandotherfinancialinstrumentsclassifiedasfinancialliabilities)

InRMB

Bondname	Facevalue	Issuedate	Bondmaturity	Amountofissue	Openingbalance	Currentissue	Interestaccruedatfacevalue	Amortizationofpremiumanddiscount	Currentrepayment	ClosingBalance
ConvertiblebondsofLuxshare	3,000,000,000.00	November3,2020	6years	3,000,000,000.00		3,000,000,000.00	500,000.00	-17,629,052.02		2,475,423,249.98
Total	--	--	--	3,000,000,000.00		3,000,000,000.00	500,000.00	-17,629,052.02		2,475,423,249.98

(3)Descriptionsonconditionsandtimeforconversionofconvertiblebonds

1.DescriptiononconditionsandtimeoftheconvertiblebondsTheconversionperiodoftheconvertiblebondsissuedthistimecommencesonthefirsttradingdaysixmonthsaftertheendoftheissueoftheconvertiblebonds(November9,2020,i.e.thedatewhentheproceedsaretransferredtotheissuer'saccount)andendsonthematuritydateoftheconvertiblebonds.(i.e.fromMay10,2021(asthedateofMay09,2021isanon-tradingday,itdeferstoMay10,2021)toNovember2,2026(itdeferstothefirsttradingdaythereafterincaseoflegalholidaysorrestdays;noadditionalinterestwillbechargedtothepaymentduringthedeferredperiod)).

(4)DescriptionsonotherfinancialinstrumentsclassifiedasfinancialliabilitiesBasicinformationonpreferredshares,perpetualbondsandotherfinancialinstrumentsoutstandingattheendoftheperiodChangesinpreferredshares,perpetualbondsandotherfinancialinstrumentsoutstandingattheendoftheperiod

InRMB

Outstandingfinancialinstruments	Opening		Increaseinthecurrentperiod		Decreaseinthecurrentperiod		Closing
	Quantity	Bookvalue	Quantity	Bookvalue	Quantity	Bookvalue	Quantity	Bookvalue

DescriptionsonthebasisforclassifyingotherfinancialinstrumentsintofinancialliabilitiesOtherdescriptions

47.Leaseliabilities

InRMB

Item

ClosingBalance

OpeningBalance

Otherdescriptions

48.Long-termpayables

InRMB

Item

ClosingBalance

OpeningBalance

(1)Presentationoflong-termpayablesbynature

InRMB

Item

ClosingBalance

OpeningBalance

Otherdescriptions:

(2)Specialaccountspayable

InRMB

Item

OpeningBalance

Increase

Decrease

ClosingBalance

Reason

Otherdescriptions:

49.Long-termemployeebenefitspayable

(1)BreakdownofLong-termemployeebenefitspayable

InRMB

Item

ClosingBalance

OpeningBalance

(2)Changesindefinedbenefitplans

Presentvalueofobligationsindefinedbenefitplans:

InRMB

Item

Amountrecognizedinthecurrentperiod

Amountrecognizedinthepriorperiod

Planassets:

InRMB

Item

Amountrecognizedinthecurrentperiod

Amountrecognizedinthepriorperiod

Netliabilities(netassets)ofdefinedbenefitplans

InRMB

Item

Amountrecognizedinthecurrentperiod

Amountrecognizedinthepriorperiod

Descriptionsonthecontentofthedefinedbenefitplans,therelatedrisks,andtheimpactontheCompany’sfuturecashflow,timeanduncertainty:

Descriptionsonthemajoractuarialassumptionsandsensitivityanalysisresultsconcerningthedefinedbenefitplans:

Otherdescriptions:

50.Provisions

InRMB

Item	ClosingBalance	OpeningBalance	Reason
Productqualitywarranty	1,360,598.63	1,317,263.45
Total	1,360,598.63	1,317,263.45	--

Otherdescriptions,includingmajorassumptionsandestimationdescriptionsrelatedtosignificantprovisions

51.Deferredincome

InRMB

Item	OpeningBalance	Increase	Decrease	ClosingBalance	Reason
Governmentgrants	256,059,554.91	212,686,653.09	43,400,225.36	425,345,982.64
Total	256,059,554.91	212,686,653.09	43,400,225.36	425,345,982.64	--

Projectsinvolvinggovernmentgrants:

InRMB

Liabilities	Openingbalance	Newsubsidyamountinthecurrentperiod	Amountincludedinnon-operatingincomeinthecurrentperiod	Amountincludedinotherincomesinthecurrentperiod	Amountofcostoffsetinthecurrentperiod	Otherchanges	Closingbalance	Relatedtoasset/income
Specialfundsfortechnologicaltransformation	244,004,302.41	212,686,653.09		42,856,630.76			413,834,324.74	Relatedtoasset

andindustrialupgrading
Land-relatedrefund	12,055,252.50		543,594.60		11,511,657.90	Relatedtoasset

Otherdescriptions:

52.Othernon-currentliabilities

InRMB

Item	ClosingBalance	OpeningBalance
Depositforleaseofplantbuildings	19,923.33	11,130.10
Government-backedfund	150,000,000.00	350,000,000.00
Total	150,019,923.33	350,011,130.10

Otherdescriptions:

OnMay7,2016,JiangxiLuxshareIntelligentManufactureCo.,Ltd.(formallynamedasJi’anCityLuxshareRadioFrequencyTechnologyCo.,Ltd.,“Ji’anRF”),asubsidiaryoftheCompany,enteredintoaninvestmentagreementwiththeManagementCommitteeofJiangxiJi’anHigh-techIndustrialPark,wherebyitisagreedthatJi’anRFwillsetupaLuxshare-basedRFprojectinthehigh-techpark,mainlyplanningtheproductionofbasestations,high-frequencyantennas,cordlesschargingmodulesandotherelectronicproducts.Inordertopromotethepaceofprojectconstruction,Ji’anRFwasgrantedaloanfundsupportofuptoRMB500millionforcivilengineering.Thespecificfundpaymentshallbemadedependingontheprojectprogressandprojectfunddemand.AsofDecember31,2020,thebalanceoffundsactuallydisbursedisRMB150million.

53.Sharecapital

InRMB

	OpeningBalance	Increaseanddecrease(+,-)					ClosingBalance
	OpeningBalance	Newsharesissued	Stockdividend	Sharesconvertedfromcapitalreserve	Other	Subtotal	ClosingBalance
Totalshares	5,349,001,738.00	39,223,321.00		1,611,543,127.00		1,650,766,448.00	6,999,768,186.00

Otherdescriptions:

TheCompany’ssharecapitalincreasedbyRMB1,650,766,448.00inthecurrentperiod.Indetails,after22,810,292shareswereexercisedindependentlybythestockoptionincentiverecipientsin2018,theCompany’ssharesincreasedto5,371,812,030shares;accordingtothe17thsessionofits4thboardofdirectorsheldonApril20,2020,theCompanymadeprofitdistributionbydistributingcashdividendsofRMB644,617,443.60intotalbasedonthegeneralsharecapitalof5,371,812,030sharestoallshareholdersaccordingtoRMB1.2(tax-inclusive)per10shares,and

atthesametime,thecapitalreservewascapitalizedbyconvertingper10sharesinto3shares,afterwhich,thegeneralsharecapitaloftheCompanyhasbeenchangedto6,983,355,157shares;afterthecapitalizationofcapitalreserve,16,413,029shareswereexercisedindependentlybythestockoptionincentiverecipients,afterwhichtheCompany’ssharesincreasedto6,999,768,186shares.

54.Otherequityinstruments

(1)Basicinformationonpreferredshares,perpetualbondsandotherfinancialinstrumentsoutstandingattheendoftheperiod

(2)Changesinpreferredshares,perpetualbondsandotherfinancialinstrumentsoutstandingattheendoftheperiod

InRMB

Outstandingfinancialinstruments	Opening		Increaseinthecurrentperiod		Decreaseinthecurrentperiod		Closing
Outstandingfinancialinstruments	Quantity	Bookvalue	Quantity	Bookvalue	Quantity	Bookvalue	Quantity	Bookvalue
Convertiblebonds				527,449,226.56				527,449,226.56
Total				527,449,226.56				527,449,226.56

Descriptionsontheincreaseanddecreaseinotherequityinstrumentsinthecurrentperiod,thereasonsforthechanges,andthebasisforrelevantaccountingtreatment:

AccordingtotheProposalontheSpecificPlanforthePublicIssueofConvertibleBonddeliberatedandapprovedatthetenthsecessionofthefourthBoardofDirectorsoftheCompany,andtheReplyforApprovalofPublicIssueofConvertibleBondsbyLuxsharePrecisionIndustryCo.Ltd.receivedbytheCompanyfromChinaSecuritiesRegulatoryCommission(ZhengJianXuKe[2020]No.247)onFebruary19,2020,theCompanywasapprovedtopubliclyissueconvertiblebondswithatotalfacevalueofRMB3billionandatermof6years.TheCompany’sconvertiblebondsofRMB3billionwerelistedfortradingonShenzhenStockExchangeonNovember3,2020,withanabbreviationnameof"LuxshareConvertibleBonds"andthebondcodeof“128136”.TheequityamountofconvertiblebondswasincreasedbyRMB527,449,226.56inthecurrentperiod.

Otherdescriptions:

55.Capitalreserve

InRMB

Item	OpeningBalance	Increase	Decrease	ClosingBalance
Capitalpremium(sharecapitalpremium)	2,350,369,599.00	628,237,652.74	1,611,543,127.00	1,367,064,124.74

Othercapitalreserve	304,323,275.21	347,403,580.73	128,691,411.08	523,035,444.86
Total	2,654,692,874.21	975,641,233.47	1,740,234,538.08	1,890,099,569.60

Otherdescriptionsincludingthoseontheincreaseanddecreaseforthecurrentperiodandthereasonsforthechange:

Capitalsurplus-equitypremiumincreasedbyRMB628,237,652.74inthecurrentperiod,includinganincreaseofRMB487,939,258.34fromstockoptionexercise,atransferofRMB128,691,411.08fromothercapitalreservethroughstockoptionexercise,andanincreaseofRMB11,606,983.32byotherways;capitalreserve-equitypremiumdecreasedbyRMB1,611,543,127.00inthecurrentperiod,whichwasduetothecapitalizationofcapitalreserve.Capitalreserve-theincreaseinothercapitalreserveinthecurrentperiodisduetothecostofshare-basedpaymentincreasedbyRMB347,403,580.73,andthedecreasethereinisduetothetransferofothercapitalreservetoequitypremium.

56.Treasurystock

InRMB

Item

OpeningBalance

Increase

Decrease

ClosingBalance

Otherdescriptions,includingthoseontheincreaseanddecreaseforthecurrentperiodandthereasonsforthechange:

57.Othercomprehensiveincome

InRMB

Item	OpeningBalance	Amountrecognizedinthecurrentperiod						ClosingBalance
Item	OpeningBalance	Amountofincomebeforetaxinthecurrentperiod	Less:amountpreviouslyincludedinothercomprehensiveincomeandtransferredtoprofitorlossforthecurrentperiod	Less:amountpreviouslyincludedinothercomprehensiveincomeandtransferredtoretainedearningsforthecurrentperiod	Less:incometaxexpenses	Attributabletotheparentcompanyaftertax	Attributabletominorityshareholdersaftertax	ClosingBalance
I.Othercomprehensiveincomethatcannotbereclassifiedintoprofitorloss	126,283,944.26	-30,172,249.21		22,570,692.52	-7,918,920.92	-44,824,020.81		81,459,923.45
Changesinfairvalueofotherinvestmentsinequityinstruments	126,283,944.26	-30,172,249.21		22,570,692.52	-7,918,920.92	-44,824,020.81		81,459,923.45

II.Othercomprehensiveincometobereclassifiedintoprofitorloss	39,318,208.48	-169,542,554.65			-165,495,934.99	-4,046,619.66	-126,177,726.51
Translationdifferenceofforeigncurrencyfinancialstatements	39,318,208.48	-169,542,554.65			-165,495,934.99	-4,046,619.66	-126,177,726.51
Totalothercomprehensiveincome	165,602,152.74	-199,714,803.86	22,570,692.52	-7,918,920.92	-210,319,955.80	-4,046,619.66	-44,717,803.06

Otherdescriptions,includingthoseontheadjustmentforconversionoftheeffectivepartofprofitorlossofcashflowhedgingintotheinitialrecognitionamountofthehedgeditem:

58.Specialreserve

InRMB

Item

OpeningBalance

Increase

Decrease

ClosingBalance

Otherdescriptions,includingthoseontheincreaseanddecreaseforthecurrentperiodandthereasonsforthechange:

59.Surplusreserve

InRMB

Item	OpeningBalance	Increase	Decrease	ClosingBalance
Statutorysurplusreserve	362,335,031.18	370,732,766.55		733,067,797.73
Total	362,335,031.18	370,732,766.55		733,067,797.73

Descriptionofsurplusreserve,includingthoseonincreaseanddecreaseforthecurrentperiodandthereasonsforthechange:

60.Undistributedprofits

InRMB

Item	CurrentPeriod	PriorPeriod
Undistributedprofitsattheendoflastyearbeforeadjustment	11,764,987,172.39	7,336,096,836.36
Totaladjustmentoftheundistributedprofitsatthebeginningoftheperiod(increase+,decrease-)		-5,571,942.46
Undistributedprofitsatthebeginningoftheperiodafteradjustment	11,764,987,172.39	7,330,524,893.90
Add:Netprofitsattributabletotheownersoftheparentcompanyinthecurrentperiod	7,225,462,752.58	4,713,820,644.90
Less:Apportiontostatutorysurplusreserve	370,732,766.55	73,446,284.67
Commonstockdividendspayable	644,615,942.06	205,730,836.10
Other	-21,048,041.37	181,245.64

Undistributedprofitsattheendoftheperiod

17,996,149,257.73

11,764,987,172.39

Detailsofadjustmentofundistributedprofitsatthebeginningoftheperiod:

1)TheundistributedprofitsatthebeginningoftheperiodaffectedbytheretroactiveadjustmentasstipulatedintheAccountingStandardsforBusinessEnterprisesandnewregulationsnewlypromulgatedrelatingtheretoamounttoRMB.

2)TheundistributedprofitsatthebeginningoftheperiodaffectedbythechangesinaccountingpoliciesamounttoRMB.

3)TheundistributedprofitsatthebeginningoftheperiodaffectedbythecorrectionofmajoraccountingerrorsamounttoRMB.

4)TheundistributedprofitsatthebeginningoftheperiodaffectedbychangesinthescopeofconsolidationduetobusinesscombinationinvolvingenterprisesundercontrolamounttoRMB.

5)TheundistributedprofitsatthebeginningoftheperiodaffectedbyotheradjustmentsamounttoRMB.

61.Operatingincomeandoperatingcosts

InRMB

Item	Amountrecognizedinthecurrentperiod		Amountrecognizedinthepriorperiod
Item	Income	Cost	Income	Cost
Principalbusiness	91,793,434,304.26	75,153,299,514.88	62,099,166,625.21	49,775,493,325.62
Otherbusiness	707,824,907.28	616,707,534.70	417,147,963.21	292,336,628.34
Total	92,501,259,211.54	75,770,007,049.58	62,516,314,588.42	50,067,829,953.96

Ifthelowerofauditednetsprofitsincludingandexcludingnon-recurringprofitorlossisnegative

□Yes√NoIncome-relatedinformation:

InRMB

Contractclassification	Division1	Division2	Total
Including:
Including:
Including:
Including:
Including:
Including:
Including:

Informationrelatedtoperformanceobligations:

Companypurchasesrawmaterialsfromsuppliers,andcombinestherawmaterialsintocertainproductsfordeliverytothecustomersthroughsignificantproductionandprocessingactivities.yConsideringitassumesthemajorresponsibilitiesfordeliveringproductstothecustomers,theCompanyisdeemedastheprimaryresponsibleparty.TheCompanyisnotobligatedtoreturnthereceivedcustomers’goodspaymentsinanticipation,butithasaqualitywarrantyresponsibilityfortheproductsdeliveredtothecustomers.SincethisresponsibilityisanaffirmativewarrantywhichisrequiredtoensurethattheCompany'sproductsshallmeetthetechnicalparameters,quality,appearanceandotherrequirementsofthecustomers,ratherthanaservicewarranty,thisqualitywarrantydoesnotconstituteaseparateperformanceobligation.Informationrelatingtothetransactionpriceallocatedtotheremainingperformanceobligations:

Attheendofthereportingperiod,theincomescorrespondingtothecontractssignedwhoseperformancehasnotbeencommencedorcompletedamounttoRMB0.00,ofwhichRMBisexpectedtoberecognizedin,RMBisexpectedtoberecognizedin,andRMBisexpectedtoberecognizedin.Otherdescriptions

62.Taxesandsurcharges

InRMB

Item	Amountrecognizedinthecurrentperiod	Amountrecognizedinthepriorperiod
Urbanmaintenanceandconstructiontax	81,906,708.52	121,700,496.38
Educationsurcharges	75,957,575.51	117,804,967.10
Propertytax	39,872,407.36	29,065,746.96
Landusetax	6,222,537.93	6,418,612.42
Vehicleandvesselusetax	1,594,540.33	56,029.89
Stampduty	38,224,811.62	21,969,936.43
Other	6,997,157.54	6,177,170.34
Total	250,775,738.81	303,192,959.52

Otherdescriptions:

63.Sellingexpenses

InRMB

Item	Amountrecognizedinthecurrentperiod	Amountrecognizedinthepriorperiod
Employeebenefits	299,604,855.35	275,535,165.34
Storage,freightandleaseexpenses	25,954,501.83	84,047,142.56
Travelexpenses	10,523,347.33	23,191,081.26
Businessentertainmentexpenses	20,355,079.41	18,139,485.77
Materialexpenditure	1,095,021.52	17,833,112.34
Transportationexpenses	3,366,341.74	4,340,175.59
Consumablesandmiscellaneouspurchases	5,583,719.60	2,113,323.15

Depreciationandamortization	5,752,130.91	4,215,792.99
Consultingfees	2,383,695.21	1,513,311.78
Officeexpenses	322,246.46	2,495,149.63
Other	102,106,936.22	64,851,097.64
Total	477,047,875.58	498,274,838.05

Otherdescriptions:

64.Generalexpenses

InRMB

Item	Amountrecognizedinthecurrentperiod	Amountrecognizedinthepriorperiod
Personnelbenefits	1,460,800,684.09	986,091,683.77
Depreciationandamortization	251,028,760.61	212,114,923.53
Leasefee	62,104,694.48	43,856,074.86
Repaircost,miscellaneouspurchase	125,433,880.08	55,785,837.56
Waterandelectricity	36,346,709.92	20,450,376.73
Travelandtransportationexpenses	26,568,577.76	20,501,589.95
Officeexpenses	115,440,868.62	82,546,812.45
Materialsandconsumption	164,759,105.43	20,562,087.63
Otherexpenses	221,469,927.64	82,925,674.90
Total	2,463,953,208.63	1,524,835,061.38

Otherdescriptions:

65.R&Dexpenses

InRMB

Item	Amountrecognizedinthecurrentperiod	Amountrecognizedinthepriorperiod
Personnelbenefits	2,908,511,305.08	2,134,314,807.66
Mouldandmaterialcost	1,412,859,366.51	954,586,000.29
Consumablesandmiscellaneous	427,092,914.15	565,667,039.05
Depreciationandamortization	434,765,917.47	283,777,931.21
Repairandinspection	171,099,556.49	63,104,300.74
Servicefees	73,318,711.87	65,564,310.79
Waterandelectricity	72,911,702.75	57,562,150.17
Transportationandtravelexpenses	29,788,220.49	43,929,904.57
Commercialinsurance	4,911,888.67	14,371,174.40

Leasefee	47,239,062.80	28,253,209.91
Otherexpenses	162,306,490.05	164,839,817.68
Total	5,744,805,136.33	4,375,970,646.47

Otherdescriptions:

66.Financialexpenses

InRMB

Item	Amountrecognizedinthecurrentperiod	Amountrecognizedinthepriorperiod
Interestexpenses	394,589,818.16	364,595,633.11
Less:Interestincome	144,116,091.77	100,065,571.29
Foreignexchangegainsorlosses	614,733,760.74	37,682,810.65
Other	39,620,655.76	27,860,572.98
Total	904,828,142.89	330,073,445.45

Otherdescriptions:

67.Otherincomes

InRMB

Sourcesofotherincomes	Amountrecognizedinthecurrentperiod	Amountrecognizedinthepriorperiod
Specialfundsfortechnologicaltransformationandindustrialupgrading	42,856,630.76	35,692,547.35
Financialincentives,grantsandsupportfunds	209,265,296.05	129,859,190.43
Patentgrants	1,196,950.00	1,358,580.00
R&Dgrants	8,816,360.00	4,904,499.67
Enterprisedevelopmentsupportfunds	20,325,926.50	4,522,500.00
Jobsecuritygrants	8,612,979.89	24,049,601.68
Exportincentives	83,961,688.97	7,801,607.77
Land-relatedrefund	543,594.60	543,594.60
Taxrebate	62,702,274.58	16,848,851.19
Other	12,467,094.54	6,730,455.66

68.Investmentincome

InRMB

Item

Amountrecognizedinthecurrentperiod

Amountrecognizedinthepriorperiod

Long-termequityinvestmentincomeaccountedforusingtheequitymethod	24,799,841.42	-36,548,318.18
Investmentincomefromdisposaloflong-termequityinvestment	1,723,373.00	-11,293,177.89
Investmentincomefromheld-for-tradingfinancialassetsduringholdingperiod	508,055,516.99	129,978,951.36
Investmentincomefromdisposalofheld-for-tradingfinancialassets		956,475.00
Incomefromwealthmanagement	113,778,334.95	89,722,710.32
Total	648,357,066.36	172,816,640.61

Otherdescriptions:

69.Netexposurehedgingincome

InRMB

Item

Amountrecognizedinthecurrentperiod

Amountrecognizedinthepriorperiod

Otherdescriptions:

70.Incomefromchangesinfairvalue

InRMB

Sourcesofincomefromchangesinfairvalue	Amountrecognizedinthecurrentperiod	Amountrecognizedinthepriorperiod
Held-for-tradingfinancialassets	329,044,852.43	801,205.01
Including:Incomefromchangesinfairvalueofderivativefinancialinstruments	329,044,852.43	801,205.01
Total	329,044,852.43	801,205.01

Otherdescriptions:

71.Impairmentlossesofcredit

InRMB

Item	Amountrecognizedinthecurrentperiod	Amountrecognizedinthepriorperiod
Baddebtlossofotherreceivables	-852,545.23	176,788.76
Baddebtlossofaccountsreceivable	-7,737,455.44	-6,629,761.72
Total	-8,590,000.67	-6,452,972.96

Otherdescriptions:

72.Impairmentlossesofassets

InRMB

Item	Amountrecognizedinthecurrentperiod	Amountrecognizedinthepriorperiod
II.Lossofinventorydepreciationandimpairmentlossofcontractperformancecost	-60,363,851.75	-23,067,157.13
V.Impairmentlossoffixedassets	-78,925,059.30	-57,575,936.71
Total	-139,288,911.05	-80,643,093.84

Otherdescriptions:

73.Incomefromdisposalofassets

InRMB

Sourcesofincomefromassetdisposal	Amountrecognizedinthecurrentperiod	Amountrecognizedinthepriorperiod
Lossondisposaloffixedassets	-2,309,694.02	9,716,496.38

74.Non-operatingincome

InRMB

Item	Amountrecognizedinthecurrentperiod	Amountrecognizedinthepriorperiod	Amountincludedinnon-recurringprofitorlossfortheperiod
Incomefromcompensationforbreachofcontract	4,109,194.81	121,971.25	4,109,194.81
Incomefromassetretirement	7,173,590.23	1,161,945.28	7,173,590.23
Other	10,649,503.20	16,831,856.05	10,649,503.20
Total	21,932,288.24	18,115,772.58	21,932,288.24

Governmentgrantsincludedincurrentprofitorloss:

InRMB

Grantitem

Granter

Reasonsforgrant

Natureandtype

Whetherthesubsidyaffecttheprofitorlossofthecurrentyear

Whetheritisaspecialgrant

Amountinthecurrentperiod

Amountinthepriorperiod

Relatedtoasset/income

Otherdescriptions:

75.Non-operatingexpenses

InRMB

Item	Amountrecognizedinthecurrentperiod	Amountrecognizedinthepriorperiod	Amountincludedinnon-recurringprofitorlossfortheperiod
Externaldonation	8,826,883.90	1,290,000.00	8,826,883.90
Assetretirementloss	42,346,561.68	119,223,122.31	42,346,561.68
Compensation,liquidateddamagesandfines	368,635.63	1,007,227.02	368,635.63
Other	2,414,711.57	6,104,008.54	2,414,711.57
Total	53,956,792.78	127,624,357.87	53,956,792.78

Otherdescriptions:

76.Incometaxexpenses

(1)Incometaxexpenses

InRMB

Item	Amountrecognizedinthecurrentperiod	Amountrecognizedinthepriorperiod
Currentincometaxexpense	486,267,875.03	603,245,275.25
Deferredincometaxexpense	158,497,053.67	104,508,599.40
Total	644,764,928.70	707,753,874.65

(2)Reconciliationofincometaxexpensestotheaccountingprofit

InRMB

Item	Amountrecognizedinthecurrentperiod
Totalprofit	8,135,779,664.12
Incometaxexpensecalculatedbasedonstatutory/applicabletaxrate	1,220,366,949.59
Effectofdifferenttaxratesofsubsidiariesoperatinginotherjurisdictions	-233,899,728.11
Effectofadjustmentonincometaxforpriorperiod	-23,616,326.73
Effectofnon-taxableincome	-4,206,425.06
Effectofnon-deductiblecost,expenseandloss	36,490,531.87
Effectofutilizingdeductiblelossnotrecognizedfordeferredtaxassetsforpriorperiod	-36,678,455.90
Effectofdeductibletemporarydifferenceordeductiblelossnot	130,186,654.90

recognizedfordeferredtaxassetsforthecurrentperiod
Changesinthebalanceofdeferredincometaxassets/liabilitiesatthebeginningoftheperiodduetotaxrateadjustment	-4,851,247.48
AdditionaldeductionofR&Dexpenses	-252,505,793.73
Other	-186,521,230.65
Incometaxexpenses	644,764,928.70

Otherdescriptions

77.OthercomprehensiveincomeSeethenotesfordetails.

78.Itemsinthecashflowstatement

(1)Othercashreceivedrelatedtooperatingactivities

InRMB

Item	Amountrecognizedinthecurrentperiod	Amountrecognizedinthepriorperiod
Specialsubsidiesandgrants	620,035,223.62	276,807,077.07
Leaseincome	58,450,087.37	14,527,054.49
Interestincome	144,116,091.77	100,065,571.29
Non-operatingincome	14,757,798.01	16,953,827.30
Recoveryofcurrentaccountsanddisbursements	341,220,838.10	319,848,015.48
Total	1,178,580,038.87	728,201,545.63

Descriptionsonothercashreceivedrelatedtooperatingactivities:

(2)Othercashpaidrelatedtooperatingactivities

InRMB

Item	Amountrecognizedinthecurrentperiod	Amountrecognizedinthepriorperiod
Sellingexpenses	171,690,889.32	218,523,879.72
Generalexpenses	812,592,804.46	414,496,105.23
R&Dexpenses	971,330,641.74	2,032,615,354.97
Non-operatingexpenses	11,610,231.10	8,401,235.56
Inter-companytransactions	70,545,074.10	47,526,059.37
Handlingcharges	39,620,655.76	27,860,572.98
Other	47,051,077.53
Total	2,124,441,374.01	2,749,423,207.83

Descriptionsonothercashpaidrelatedtooperatingactivities:

(3)Othercashreceivedrelatedtoinvestingactivities

InRMB

Item

Amountrecognizedinthecurrentperiod

Amountrecognizedinthepriorperiod

Descriptionsonothercashreceivedrelatedtoinvestingactivities:

(4)Othercashpaidrelatedtoinvestingactivities

InRMB

Item

Amountrecognizedinthecurrentperiod

Amountrecognizedinthepriorperiod

Descriptionsonothercashpaidrelatingtoinvestingactivities:

(5)Othercashreceivedrelatedtofinancingactivities

InRMB

Item	Amountrecognizedinthecurrentperiod	Amountrecognizedinthepriorperiod
Short-termfinancingbonds	1,500,000,000.00	500,000,000.00
Convertiblebonds	2,985,600,000.00
Total	4,485,600,000.00	500,000,000.00

Descriptionsonothercashreceivedrelatedtofinancingactivities:

(6)Othercashpaidrelatedtofinancingactivities

InRMB

Item	Amountrecognizedinthecurrentperiod	Amountrecognizedinthepriorperiod
Financingcharges	14,511,270.50	12,066,213.47
Total	14,511,270.50	12,066,213.47

Descriptionsonothercashpaidrelatedtofinancingactivities:

79.Supplementaryinformationtocashflowstatement

(1)Supplementaryinformationtocashflowstatement

InRMB

Supplementaryinformation	Currentperiod	Priorperiod
1．Reconciliationofnetprofittocashflowfromoperatingactivities:	--	--
Netprofit	7,491,014,735.42	4,927,424,927.20
Add:Provisionforimpairmentlossesof	147,878,911.72	87,096,066.80

assets
Depreciationoffixedassets,depletionofoilandgasassets,depreciationofbearerbiologicalassets	2,212,448,100.25	1,485,838,229.86
Depreciationofrightofuseassets	0.00	0.00
Amortizationofintangibleassets	66,781,202.42	32,620,359.24
Amortizationoflong-termprepaidexpenses	137,587,798.08	152,561,855.90
Lossfromdisposaloffixedassets,intangibleassetsandotherlong-termassets(“-”meansincome)	2,309,694.02	-9,716,496.38
Lossfromfixedassetsretirement(“-”meansincome)	34,858,852.91	108,508,845.97
Lossfromchangesinfairvalue(“-”meansincome)	-329,044,852.43	-801,205.01
Financialexpenses(“-”meansincome)	394,589,818.16	364,595,633.11
Investmentloss(“-”meansincome)	-648,357,066.36	-172,816,640.61
Decreaseindeferredincometaxassets(“-”meansincrease)	-216,359,243.84	-47,784,054.83
Increaseindeferredincometaxliabilities(“-”meansdecrease)	367,907,819.95	172,570,861.10
Decreaseininventories(“-”meansincrease)	-5,549,633,761.96	-2,974,217,328.29
Decreaseinoperatingreceivables(“-”meansincrease)	-1,149,269,162.66	-2,538,757,065.48
Increaseinoperatingaccountspayable(“-”meansdecrease)	3,910,498,640.37	5,878,864,185.75
Other
Netcashflowfromoperatingactivities	6,873,211,486.05	7,465,988,174.33
2.Significantinvestingandfinancingactivitiesthatdonotinvolvecashreceiptsandpayments:	--	--
Conversionofdebtintocapital
Convertiblebondsduewithinoneyear

Fixedassetsacquiredunderfinanceleases
3.Netchangesincashandcashequivalents:	--	--
Closingbalanceofcash	10,464,804,451.34	6,147,339,924.26
Less:Openingbalanceofcash	6,147,339,924.26	3,809,520,108.33
Add:Closingbalanceofcashequivalents
Less:Openingbalanceofcashequivalents
Netincreaseincashandcashequivalents	4,317,464,527.08	2,337,819,815.93

(2)Netcashpaidtoacquiresubsidiariesfortheperiod

InRMB

	Amount
Cashorcashequivalentspaidincurrentperiodforbusinesscombinationincurredincurrentperiod	92,936,975.09
Including:	--
CyberAcoustics,LLC(USA)	29,259,430.49
TaiqiaoInvestmentCo.,Ltd.	63,677,544.60
Less:Cashandcashequivalentsheldbysubsidiariesatthedateofpurchase	9,039,441.34
Including:	--
CyberAcoustics,LLC(USA)	8,202,381.74
TaiqiaoInvestmentCo.,Ltd.	837,059.60
Including:	--
Netcashpaidtoacquiresubsidiaries	83,897,533.75

Otherdescriptions:

(3)Netcashreceivedfromdisposalofsubsidiariesinthecurrentperiod

InRMB

	Amount
Cashorcashequivalentsreceivedfromdisposalofsubsidiariesinthecurrentperiod	63,942,000.00
Including:	--
LuxsharePrecisionIndustry(Xi’an)Co.,Ltd.	63,942,000.00
Less:Cashandcashequivalentsheldbysubsidiariesonthedateoflossofcontrol	1,260,376.76

Including:	--
LuxsharePrecisionIndustry(Xi’an)Co.,Ltd.	1,260,376.76
Including:	--
LuxsharePrecisionIndustry(Xi’an)Co.,Ltd.	62,681,623.24

Otherdescriptions:

(4)Compositionofcashandcashequivalents

InRMB

Item	ClosingBalance	OpeningBalance
I.Cash	10,464,804,451.34	6,147,339,924.26
Including:Cashonhand	9,919,560.76	594,825.70
Bankdepositsavailableforpaymentatanytime	10,454,884,890.58	6,146,745,098.56
III.Closingbalanceofcashandcashequivalents	10,464,804,451.34	6,147,339,924.26

Otherdescriptions:

80.Notestoitemsinstatementofchangesinowners’equityDescriptionsonthenameof“other”itemsandtheamountofadjustmentforclosingbalanceinthepreviousyear

81.Assetswithrestrictedownershiporrightofuse

InRMB

Item	Closingbookvalue	Reasonsforrestriction
Cashandbankbalances	63,441,314.59	Issueofnotesandletterofcredit
Notesreceivable	22,490,383.01	FinancingfromPledgeofaccountsreceivable
Fixedassets	1,290,093,659.89	Financingfrommortgageoffixedassets
Intangibleassets	472,877,041.20	Financingfrommortgageofland
Accountsreceivable	786,934,477.55	Financingfrommortgageofaccountsreceivable
Total	2,635,836,876.24	--

Otherdescriptions:

82.Foreigncurrencymonetaryitems

(1)Foreigncurrencymonetaryitems

InRMB

Item	Closingbalanceinforeigncurrency	Exchangerate	ClosingbalanceinRMB
Cashandbankbalances	--	--	3,592,636,569.44
Including:USD	523,048,082.79	6.5249	3,412,836,335.19
EUR	351,596.39	8.025	2,821,561.04
HKD	205,300.65	0.8416	172,781.03
JPY	112,221,068.01	0.0632	7,096,411.50
TWD	554,351,920.00	0.2321	128,665,080.63
VND	113,027,017,856.68	0.0003	31,839,710.93
KRW	1,495,890,687.00	0.006	8,970,856.45
GBP	26,302.00	8.8903	233,832.67
Accountsreceivable	--	--	10,818,877,593.73
Including:USD	1,646,938,579.60	6.5249	10,746,109,538.03
EUR	2,516,946.45	8.025	20,198,495.26
HKD
JPY	45,994,723.00	0.0632	2,908,522.30
TWD	178,612,530.00	0.2321	41,455,968.21
VND	27,988,067,376.64	0.0003	7,884,238.58
KRW	10,368,010.00	0.006	62,176.96
GBP	29,094.00	8.8903	258,654.39
Long-termborrowings	--	--	76,010,982.77
Including:USD	9,474,331.41	6.5249	61,819,065.00
EUR
HKD
JPY	224,427,822.00	0.0632	14,191,917.77
Otherreceivables			143,903,073.15
Including:USD	20,485,851.57	6.5249	133,668,132.91
EUR	86,092.19	8.025	690,889.82
JPY	48,484,617.00	0.0632	3,065,973.24
TWD	11,488,729.00	0.2321	2,666,534.00
VND	113,380,803,265.88	0.0003	2,012,287.54
KRW	167,218,480.00	0.006	1,002,809.22
GBP	89,586.00	8.8903	796,446.42

Accountspayable			12,177,427,079.61
Including:USD	1,778,736,848.60	6.5249	11,606,080,063.63
EUR	4,005,846.60	8.025	32,146,919.00
HKD	435,732.59	0.8416	366,729.44
JPY	347,175,945.00	0.0632	21,955,392.12
TWD	45,361,741.00	0.2321	10,528,460.07
VND	1,793,945,485,481.00	0.0003	505,354,443.26
KRW	164,450,302.00	0.006	986,208.46
GBP	997.00	8.8903	8,863.63
Otherpayables			9,156,091.02
Including:USD	460,290.32	6.5249	3,003,348.32
EUR	37,645.77	8.025	302,107.30
JPY	18,338,046.00	0.0632	1,159,624.68
TWD	17,543,598.00	0.2321	4,071,869.10
VND	1,969,478,558.75	0.0003	554,802.11
KRW	10,728,616.00	0.006	64,339.51
Short-termborrowings			2,278,637,441.95
Including:USD	342,815,372.39	6.5249	2,236,836,023.29
TWD	180,100,899.00	0.2321	41,801,418.66

Otherdescriptions:

(2)Descriptionsonoverseasbusinessentities,including,withrespecttosignificantoverseasbusinessentities,disclosureoftheiroverseasmainbusinessplace,functionalcurrencyandselectionbasis,andthereasonsforchangesinfunctionalcurrency(ifany).

□Applicable√N/A

83.Hedging

Disclosureofthequalitativeandquantitativeinformationofthehedgeditems,relevanthedginginstrumentsandhedgedrisksaccordingtothehedgingcategories:

84.Governmentgrants

(1)Basicinformationofgovernmentgrants

InRMB

读取中,请稍候

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