光峰科技:2022年年度报告（英文版）

Stock Code：688007 Stock Short Name: Appotronics
Appotronics Corporation Limited
Annual Report 2022
2023 April
本报告为深圳光峰科技股份有限公司自愿披露的《2022年年度报告（英文版）》，对本报告的中英文版本理解上发生歧义时，以中文版本为准。
This is Annual Report 2022 (English version) voluntarily disclosed by Appotronics
Corporation Limited. In the event of any discrepancy between the English and Chinese
versions of this report the Chinese version shall prevail.Annual Report 2022
Maintain long-term strategic focus
Dear Shareholders
We would like to thank you all for your continued support and trust over the last year. Though
various changes afflicted the global economy Appotronics and various shareholders have tackled this
difficulty jointly.Albeit with many uncertainties we soon made a foray into the automotive optics industry through
our extensive experience. To be specific we obtained the IATF 16949:2016 certification and provided
automotive optical solutions to carmakers such as some international manufacturer BYD Auto and
Seres. In 2023 BMW’s i Vision Dee stuns the world with Appotronics devices ushering in a new era of
four-window fusion displays. At the same time our own business also rose by 36.87% year-on-year.According to the 2022 China Projector Market Review released by IDC our Formovie Projector gained
a 8% share of the home projector market as one of the top three brands. Despite the recurring waves of
COVID-19 more than 2700 new laser light source projectors were installed in cinemas throughout
China. What’s more our market share of professional displays remained ahead and our market share of
engineering laser projectors ranked first. Besides our laser projector sales got the first place too.In 2022 I acted as Appotronics CEO again. Considering the difficulties not any success mentioned
above was made easily. First of all I express my deepest gratitude to my team because they maintained
our strategic focus and business resilience. Secondly I would like to owe these results to our appropriate
strategy. With Technology First in mind we may create amazing possibilities in every scenario.Though the revenue increased in 2022 our profits were affected. In operations management a lot
of problems arose. For example there is still much room for improvement of our manufacturing capacity.Besides our supply chain is not good enough... At the same time we must deal with external challenges
including shrinking demand supply shocks and expectation weakening.This year we will continue to increase our investment in research and development because the
investments in 2021 (9.47%) and 2022 (10.31%) have brought us a number of technological innovations.In 2022 we developed a pocket-sized optical module the first commercial AR module with more than
10000 PPI. Also our latest ALPD5.0 laser display technology made its debut achieving the maximum
color gamut visible to the human eye while demonstrating remarkable features such as no speckles low
cost high efficiency and compact size.In the first quarter of this year our R&D investment increased by 15.49% year-on-year. Indeed
innovation is our lifeline and leading competitive edge.Also we will continue to improve our management and values. The inadequacy in our
manufacturing capacity must be overcome. And a change in the supply chain is required. More
procedures should be established and the well-established procedures should be improved. Besides
internal audit should be stricter than previously.Last but not least we will continue to expand our investment in automotive optical systems. At the
just-concluded Shanghai Auto Show we presented a model car with the latest immersive laser display
and lights and launched the world's first automotive-grade laser headlight supporting RGB display as
well as immersive in-car digital interactive solutions such as exterior window display in-car transparent
display in-car entertainment screen and smart surface display. Through automotive displays HUDs and
laser headlights we along with our partners are exploring new smart car experience for all consumers.Annual Report 2022
With fast-growing AI web platforms like ChatGPT and advancing smart cockpits Appotronics will help
bring immersive driving simulation to a new level.As a saying goes no great success is achieved with little effort. So we will uphold our strategy and
achieve our goal though more difficulties may lie ahead.Thank all shareholders and friends!
Time tells everything!
LI Yi
April 2023Annual Report 2022
Important Note
I. The Board of Directors the Board of Supervisors directors supervisors and senior officers of the
Company hereby warrant that the information contained in this Annual Report is true accurate
and complete and this Annual Report is free from any misrepresentation misleading statement or
material omission and agree to assume joint and several liability for this Annual Report.II. The Company did not make profits at the time of getting listed and has not made profits by now
□ Yes √ No
III. Alert of significant risks
The Company has described in detail the risks that may exist in the production and operation of the
Company. Refer to “Section III Discussion and Analysis of the Management- Risk factors” for the relevant
risks.IV. All directors of the Company attended the meeting of the Board of Directors.V. Pan-China Certified Public Accountants (Special General Partnership) issued a standard
unqualified auditor’s report to the Company.VI. LI Yi Principal of the Company WANG Yingxia Person in Charge of the Accounting Body and
WANG Yingxia Chief Accountant hereby represent that the financial statements contained in this
Annual Report are true accurate and complete.VII. Profit distribution proposal or proposal for capitalization of capital reserve approved by the Board
of Directors during the reporting period
Audited by Pan-China Certified Public Accountants (Special General Partnership) the Company's net
profit attributable to shareholders of listed companies in 2022 was RMB119440773.77 the net profit
realized by the parent company was RMB192539137.52 and the profit available for distribution by
shareholders of the parent company at the end of the year was RMB579741763.06. The Company proposed
to distribute a cash dividend of 0.54 yuan (tax inclusive) to all shareholders for every 10 shares and as of the
disclosure date of this report the total share capital of the Company was 457107538 shares after deducting
the number of shares in the special securities account for repurchase of 900000 shares the total proposed
cash dividend was RMB24635207.05 (tax inclusive) accounting for 20.63% of the net profit attributable to
shareholders of the listed Company in 2022. This year no capital reserve will be converted into share capital
and no bonus shares will be issued. The proposal has been deliberated and approved by the 19th meeting of
the second Board of Directors and the 18th meeting of the second Board of Supervisors and needs to be
submitted to the Company's General Meeting of Shareholders for deliberation.At the same time according to the relevant provisions of the Self-Regulatory Guidelines for Listed
Companies on the Shanghai Stock Exchange No.7-Share Repurchase the repurchase amount of
RMB19371239.41 (excluding stamp duty transaction commissions and other transaction costs)
implemented by the Company in 2022 is regarded as cash dividends and the proportion of the repurchase
amount to the net profit attributable to shareholders of the listed company in 2022 is 16.22%.VIII. Is there any material event concerning any special arrangement of corporate governance?
□ Applicable √ N/A
IX. Risk statement regarding forward-looking statements
√ Applicable □ N/A
The forward-looking statements contained herein regarding the future plans development strategies or
other matters of the Company do not constitute any substantive covenant made by the Company to the
investors. Investors and relevant personnel should have sufficient know about the risks in this aspect and
understand the differences among plans predictions and promises. The investors should be aware of the risk
of investment.X. Is there any non-operating occupation of funds by the controlling shareholder or its affiliates?
No
1 / 245Annual Report 2022
XI. Is there any external guarantee provided in contravention of the stipulated decision-making
procedure
No
XII. Are the majority of the directors unable to guarantee the truthfulness accuracy and completeness
of the Annual Report disclosed by the Company?
No
XIII. Others
□ Applicable √ N/A
2 / 245Annual Report 2022
Table of Contents
Section I Definitions ............................... 4
Section II Company Profile and Financial Highlight... 6
Section III Discussion and Analysis of the Managem.. 11
Section IV Corporate Governance .................... 41
Section V Environment Social Responsibility and Ot.. 62
Section VI Significant Matters ..................... 71
Section VII Changes in Shares and Shareholders ..... 94
Section VIII Preferred Shares ..................... 103
Section IX Corporate Bonds ........................ 104
Section X Financial Report ........................ 105
Financial Statements with seals and signatures of the Principal of the Companythe Person
in Charge of the Accounting Body and Chief Accountant
List of
Documents Original Auditor’s Report with seals of the accounting firm and seals and signatures of
Available for the certified public accountants
Inspection
All original documents and announcements of the Company publicly disclosed in the
websites designated by the Company as of the reporting period
3 / 245Annual Report 2022
Section I Definitions
I.Definitions
For purpose of this report unless the context otherwise requires the following terms shall have the
meanings indicated below:
Terms
Company or
means Appotronics Corporation Limited
Appotronics
Appotronics Ltd. means Appotronics Corporation Ltd. the former name of the Company
CINEAPPO means CINEAPPO Laser Cinema Technology (Beijing) Co. Ltd.Formovie means Formovie (Chongqing) Innovative Technology Co. Ltd.Appotronics HK means Appotronics Hong Kong Limited
Appotronics Daye means Shenzhen Appotronics Daye Investment Partnership (LP)
Appotronics Deye means Shenzhen Appotronics Deye Consulting Partnership (LP)
Appotronics
means Shenzhen Appotronics Hongye Investment Partnership (LP)
Hongye
Jinleijing means Shenzhen Jinleijing Investment Limited Partnership (LP)
Appotronics
means Shenzhen Appotronics Chengye Consulting Partnership (LP)
Chengye
XGIMI means Chengdu XGIMI Technology Co. Ltd.Anker means Anker Innovations Technology Co. Ltd.Zebao means Shenzhen Sunvalley Innovation Technology Co. Ltd
Dangbei means Hangzhou Dangbei Network Technology Co. Ltd.Delta Electronics
means Delta Electronics Inc.Delta
Blackpine means Blackpine Investment Corp. Ltd.AR means Augmented Reality
HUD means head-up display
CES means International Consumer Electronics Show
PPI means Pixels Per Inch
ODM means Original Design Manufacturer
EVT means Engineering Verification Test
DVT means Design Verification Test
PVT means Production/Process/Pilot Run verification test
MP means Mass ProductionCINIONIC means Cinionic Limited (previously known as Barco Cineappo Limited)）
WeCast means WeCast Technology Corp.GDC BVI means GDC Technology Limited（British Virgin Islands）
GDC Cayman means GDC Technology Limited（Cayman Islands）
4 / 245Annual Report 2022
DCI means Digital Cinema Initiatives，Digital Cinema Initiatives of the United StatesDLP means Digital Light Processing
Liquid Crystal on Silicon，LCD and a new reflective display technologyLCOS means
that organically combines CMOS integrated circuits
LCD means Liquid Crystal Display
RGB means Optical Three Primary Colors R:Red G:Green B:Blue
ADB means Adaptive Driving Beam
AI means Artificial Intelligence
AIGC means AI generated content
AIOT means Artificial Intelligence & Internet of Things
Chat Generative Pre-trained Transformer，and a chatbot model publishedChatGPT means
by OpenAI
Midjourney means AI painting tools
Micro LED means Micro Light Emitting Diode Display
PCT means Patent Cooperation Treaty
IDC means International Data Corporation
AVC Revo means Asia Vital Components Revo
5 / 245Annual Report 2022
Section II Company Profile and Financial Highlights
I. Company profile
Chinese name 深圳光峰科技股份有限公司
Shortname in Chinese 光峰科技
English name Appotronics Corporation Limited
Short name in English Appotronics
Legal representative LI Yi
20-22/F Hi-tech Zone Union Tower No. 63 Xuefu Road Yuehai Street
Registered address Nanshan District Shenzhen
1. October 24 2006 Room 10 14/F Fangda Building Keji South 12th Road
South Area High-tech Industrial Zone Nanshan District Shenzhen
2. September 6 2007 Room 03 17/F Overseas Chinese High-tech Venture
Building South Area High-tech Industrial Zone Nanshan District Shenzhen
Historical changes of the 3. June 7 2011 Area A 1/F Building 13 Xili Wenguang Industrial Zone
Nanshan District Shenzhen
Company’s registered
address 4. October 24 2012 401Shenzhen IC Design and Application Industrial Park
South to Chaguang Road Xili Township Nanshan District Shenzhen
5. December 14 2017 21-22/F Hi-tech Zone Union Tower No. 63 Xuefu
Road Yuehai Street Nanshan District Shenzhen
6. August 1 2018 20-22/F Hi-tech Zone Union Tower No. 63 Xuefu Road
Yuehai Street Nanshan District Shenzhen
20-22/F Hi-tech Zone Union Tower No. 63 Xuefu Road Yuehai Street
Office address Nanshan District Shenzhen
Postal code of office address 518052
Website http://www.appotronics.com
Email ir@appotronics.cn
II. Contact person and contact information
Board Secretary (Domestic representative for information disclosure)
Name CHEN Yasha
20-22/F Hi-tech Zone Union TowerNo. 63 Xuefu Road Yuehai
Address
StreetNanshan District Shenzhen
Telephone 0755-32950536
Facsimile 0755-86186299
Email ir@appotronics.cn
III. Media for information disclosure and place for keeping the annual reports
China Securities Journal (https://www.cs.com.cn)
Name and website of the media on which the Shanghai Securities News (https://www.cnstock.com)
Company discloses its annual report Securities Times (http://www.stcn.com)
Securities Daily (http://www.zqrb.cn)
Website of the securities exchange on which Shanghai Stock Exchange website
the Company discloses its annual report (http://www.sse.com.cn)
Place for keeping the annual reports Office of the Board of Directors
IV. Stock and depository receipts of the Company
(I) Stock of the Company
√ Applicable □ N/A
Stock of the Company
Stock short
Type of stock Stock exchange and board Stock code Former stock short name
name
6 / 245Annual Report 2022
Shanghai Stock Exchange
A-shares Appotronics 688007 N/A
STAR Market
(II) Depository receipts of the Company
□ Applicable √ N/A
V. Other related information
Pan-China Certified Public Accountants
Name
(Special General Partnership)
Domestic accounting
6/F No. 128 Xixi Road Xihu District
firm appointed by the Office address
Hangzhou Zhejiang
Company
Accountants signing the
WEI Biaowen NIU Chunjun
report
Name Huatai United Securities Co. Ltd.Floor 27 Fund Building No.5999 Yitian Road
Office address
Lianhua Street Futian District Shenzhen
Sponsor performing the
Sponsor
duty of continuous
representatives ZHANG Guanfeng QIN Lin
supervision within the
signing the report
reporting period
Period of continuous
From July 22 2019 to December 31 2022
supervision
VI. Main accounting data and financial highlights in the past three years
(I) Main accounting data
In RMB
%Change
Main accounting data 2022 2021 2020
(2022v 2021)
Operating income 2541144635.15 2498228401.78 1.72 1948884176.83
Net profit attributable to
shareholders of the listed 119440773.77 233364344.09 -48.82 113847873.06
company
Net profit attributable to
shareholders of the listed
64813134.02124279830.79-47.8540289988.80
company after deduction of
non- recurring profit or loss
Net cash flow from operating
177350715.6958337226.84204.0152390430.42
activities
At the end of At the end of %Change At the end of
2022 2021 (2022v 2021) 2020
Net assets attributable to
shareholders of the listed 2647663487.59 2438064581.44 8.60 2091599671.75
company
Total assets 4333350260.15 4097230955.90 5.76 3226204326.69
(II) Financial highlights
Financial highlights 2022 2021 %Change (2022v 2021) 2020
Basic earnings per share (RMB/share) 0.26 0.52 -50.00 0.25
Diluted earnings per share (RMB/share) 0.26 0.51 -49.02 0.25
Basic earnings per share after deduction of
0.140.27-48.150.09
non-recurring profit or loss (RMB/share)
Weighted average return on net assets (%) 4.73 10.26 - 5.53 percentage points 5.62
Weighted average return on net assets after
2.57 5.46 - 2.89 percentage point 1.99
deduction of non-recurring profit or loss (%)
Proportion of R&D investments to operating
10.31 9.47 -0.84 percentage point 10.49
income (%)
7 / 245Annual Report 2022
Explanation about the main accounting data and financial highlights in the past three years
√ Applicable □ N/A
During the reporting period the net profit attributable to shareholders of the listed company and the net
profit attributable to shareholders of the listed company after deduction of non-recurring profit or loss
decreased 48.82% and 47.85% respectively; the basic earnings per share diluted earnings per share and
basic earnings per share after deduction of non-recurring profit or loss decreased by 50.00%49.02% and
48.15% primarily due to the following:
1. Changes in revenue structure of which the revenue of the cinema projection service business
decreased by 25.41% year-on-year;
2. Expenses increased including a year-on-year increase of RMB81.9049 million in sales expenses and
a year-on-year increase of RMB25.4062 million in R&D expenses;
3. Non-recurring profit and loss during the reporting period decreased by RMB54.4569 million
year-on-year.During the reporting period the net cash flow generated by operating activities increased by 204.01%
year-on-year mainly due to the year-on-year increase in sales collection and the decrease in purchase
payments caused by the optimization of the account period.VII. Differences in accounting data under Chinese accounting standards and overseas accounting
standards
(I) Differences in net profit and net assets attributable to shareholders of the listed company disclosed
on the financial statements according to the international accounting standards and the Chinese
accounting standards
□ Applicable √ N/A
(II) Differences in net profit and net assets attributable to shareholders of the listed company disclosed
on the financial statements according to the overseas accounting standards and the Chinese
accounting standards
□ Applicable √ N/A
(III) Explanation about the difference between overseas and Chinese accounting standards
□ Applicable √ N/A
VIII. Financial highlights in 2022 by quarter
In RMB
1st quarter 2
nd quarter 3rd quarter 4th quarter
(Jan. - Mar.) (Apr. - Jun.) (Jul. - Sep.) (Oct. - Dec.)
Operating income 525139870.53 744182331.58 606484116.96 665338316.08
Net profit attributable to shareholders of
17858914.5328107566.5745389736.0228084556.65
the listed company
Net profit attributable to shareholders of
the listed company after deduction of 550708.61 21454678.31 32170896.11 10636850.99
non- recurring profit or loss
Net cash flow from operating activities -68223422.47 -10329937.20 89773197.08 166130878.28
Explanation about the difference between quarterly data and the data disclosed on regular reports
□ Applicable √ N/A
8 / 245Annual Report 2022
IX. Items and amounts of non-recurring profit or loss
√ Applicable □ N/A
In RMB
Note (if
Item of non-recurring profit or loss 2022 2021 2020
applicable)
Gain or loss on disposal of non- current
-5668573.431437535.03-1112121.13
assets
Government grants recognized in profit
or loss for the current period (excluding
government grants that are closely
related to the business of the Company Section X
40229974.9487716471.2040750823.51
and are provided in fixed amount or VII. 84
quantity continuously according to the
applicable polices and standards of the
country)
Profit or loss on entrusted investments or Section X
12637561.739776977.4418624853.96
assets management VII. 68
Debt restructuring gains and losses -912618.35
Net profit or loss of subsidiaries from the
beginning of the period up to the business
combination date recognized as a result
27765106.1914561407.4723593500.83
of business combination of enterprises
involving enterprises under common
control
Profit or loss on changes in the fair value
of held-for-trading financial assets
derivative financial assets
held-for-trading financial liabilities and
derivative financial liabilities and
investment income on disposal of
Section X
held-for-trading financial assets -3120000.00 40127764.00
VII. 70
derivative financial assets
held-for-trading financial liabilities
derivative financial liabilities and other
debt investments other than those used
in the effective hedging activities relating
to normal operating business
Reversal of impairment loss on
accounts receivable and contract assets 837824.59
tested for impairment individually
Other non-operating income and
-679415.19865330.692429083.25
expenses
Other gains or losses meeting the
362064.36-9823212.01323003.17
definition of non-recurring profit or loss
Less: Effect of income taxes 4542972.68 7304758.42 9068330.19
Effects attributable to minority
12281312.4128273002.101982929.14
interests (after tax)
Total 54627639.75 109084513.30 73557884.26
For non-recurring profit and loss items defined by the Company as defined in the Interpretive Announcement
on Information Disclosure of Companies Offering Securities to the Public No.1-Non-Recurring Profit and
Loss and the items of non-recurring profit and loss listed in the Explanatory Announcement on Information
Disclosure of Companies Offering Securities to the Public No.1-Non-Recurring Profit and Loss that are
defined as recurring profit and loss reasons should be given.□ Applicable √ N/A
9 / 245Annual Report 2022
X. Items at fair value
√ Applicable □ N/A
In RMB
Effect on profit for
Item Opening balance Closing balance Change
the current period
Held-for-trading
417200000.00352880000.00-64320000.009517561.73
financial assets
Receivables financing 244860.00 4279041.00 4034181.00
Investment in other
7075419.387075419.38
equity instruments
Total 424520279.38 364234460.38 -60285819.00 9517561.73
XI. Explanation about performance indicators not under the Accounting Standards for Business
Enterprises
√ Applicable □ N/A
The table below lists relevant indicators about the net profit excluding the effect of share-based
payment expenses:
In RMB
Change
Item 2022 2021
(%)
Net profit attributable to shareholders of the
listed company excluding the effect of share- 171801853.92 277641613.32 -38.12
based payment expenses
Net profit attributable to shareholders of the
listed company after deduction of non-recurring
117175029.32164481340.03-28.76
profit or loss excluding the effect of share-based
payment expenses
XII. Explanations of information suspension or exemption due to state secrets commercial secrets
and other reasons
□ Applicable √ N/A
10 / 245Annual Report 2022
Section III Discussion and Analysis of the Management
I. Analysis of business conditions during the reporting period
In 2022 in the face of the repeated epidemic and the complex and severe international and domestic
environment the Company has always adhered to the strategic principle of "core technologies+ core devices+
application scenarios" and actively responded to the challenges met in the business environment. We need to
foster new opportunities amidst crises open up new horizons on a shifting landscape. The Company firmly
grasps the market opportunities brought by the steady advancement of the "core devices" strategy continues
to increase R&D investment in core technologies and growth businesses continuously enhances the
Company's core competitive advantages and pursues the Company's high-quality growth.During the reporting period the Company made breakthroughs in the automotive optics and successfully
created a new growth curve; the household core device business has grown rapidly and the upstream and
downstream circle of friends in the ecological chain has continued to expand; although greatly affected by the
epidemic the cinema business and professional display business as a whole have shown strong development
resilience the basic operation foundation is solid and the overseas business has opened up a new situation.The Company's operating profit was under short-term pressure but the overall operating situation maintained
a steady development trend achieving an operating income of RMB2.541 billion a year-on-year increase of
1.72%.
1. Core device business
? Grasp the trend of automotive intelligence for embracing the new track of the automotive optics
(1) Vast automotive display market space accumulate strength to design the three product lines
The intelligence of automobiles has become a development trend in the automotive field and new
requirements have been put forward for automotive displays by the intelligent cockpit stimulating innovative
applications of laser projection display in automotive displays including roof screens transparent window
displays rollable large screen projection AR-HUD smart surface displays smart laser headlights etc. The
market space of the automotive optical track is broad and with the accelerated popularization of automotive
intelligence and technology the market scale of the industry is growing rapidly.
2022 is the first year of the Company's automotive business development and the Company is preparing
to lay out three product lines: automotive display laser headlights and HUD. With the advantages of small
volume high brightness and non-trace display of ALPD laser display core technology the Company's
vehicle-mounted intelligent projection display solution can turn any surface in the car into a digital interactive
interface realizing a variety of typical application scenarios such as in-plane sunroof display side window
projection smart surface display and vehicle-mounted large-screen projection so that drivers and passengers
can experience the functionality or entertainment brought by ubiquitous display. The multi-scene
single-machine multi-function projection display of the Company's intelligent cockpit can provide a new
visual experience for automotive customers and maximize the intelligent display value of electric vehicles. In
addition the Company's vehicle-mounted business has carried out leading technology and product portfolio in
sub-fields such as HUD and laser headlights seizing the development opportunities of the automotive optics
market.Laser headlights automotive
display
Transparent Rollable large screen Smart surface Body display Laser headlight Higher-efficiency
display (car (can be automatically display (any interior (exterior surface) (high brightness HUD
windows sunroof) operated) surface) high precision)
Figure 1: Appotronics's vehicle-mounted business provides a variety of application solutions
11 / 245Annual Report 2022
(2) It has successively obtained fixed orders from a number of automakers and continued to increase the
carrying capacity of ALPD
In April 2022 the Company obtained IATF 16949:2016 quality management system certification
indicating that the design and manufacture of vehicle-mounted laser optical engines and projectors fully met
the quality management system requirements of the International Automotive Working Group and obtained
an access to enter the domestic and foreign automotive supply chain.With its profound technology accumulation in the field of optics the Company has obtained the
Development Nomination Letter issued by BYD an internationally renowned brand car Company Seres and
many other well-known car companies realizing the rapid growth of automotive optical business.At CES 2023 automotive brand BMW unveiled the world's first concept car I Vision Dee equipped with
four-window fusion display technology. The concept car Dee is equipped with the world's premiere
four-window fusion display technology making "window transparent display" an important change for the
next generation of smart cars. The core device of this technology is provided by the Company using
ultra-small high-brightness ALPDDLP optical machine to make projection display on the surface of the side
window a reality with external display through the internal projection and internal display through the
external projection and drivers and passengers can interact with the display screen outside the car or inside
the car.Figure 2: Live display diagram of BMW I Vision Dee concept car side window display
(3) Forward arrangement of automotive optical technology patents continuous expansion of business
cooperation ecosystem
The Company attaches great importance to the patent arrangement of automotive optical technology and
provide solid patent protection for the development of this business. During the reporting period the
Company produced 81 new authorizations and patents related to automotive optical technology a
year-on-year increase of 326.32%; as of December 31 2022 the cumulative number of patents authorized and
applied for related to vehicle-mounted designs was 148 a year-on-year increase of 82.72%.At the 2022 (6th) High-tech Intelligent Vehicle Annual Conference the Company's vehicle-mounted
laser projection display technology won the 2022 Intelligent Vehicle Innovation Technology Award.Appotronics also won the vice president unit seat of Shenzhen Automotive Electronics Industry Association
aiming to promote the development of automotive electronic display and lighting electronics industry and
continuously bring new technologies and new solutions to the automotive industry.With the growing demand for automotive intelligence and technology the intelligence of electric
vehicles has ushered in a rapid development period and the vehicle-mounted laser track has entered a stage of
rapid development. With deep technology accumulation in optics the Company will use technology to
empower diversified vehicle-mounted application scenarios actively cooperate with excellent domestic and
foreign vehicle manufacturers and upstream and downstream partners in the supply chain and strive to build
a healthy automotive optical industry ecosystem.? Rapid growth in the household core device business for gaining more powerful brand value
influence
During the reporting period the Company accelerated the arrangement of the To C core device business
12 / 245Annual Report 2022
and the household core device business achieved an overall operating income of RMB413 million a
year-on-year increase of 68.93%. Relying on the core advantages of ALPD laser display technology the
Company continues to supply customized laser micro-projectors or laser TV optical machines and other core
devices for partners such as Dangbei Anker and XGIMI. Among them the laser projectors X3 and X3 Pro
released by the Company and Dangbei are deeply loved by consumers and have become the hot-selling
projection products in the market.? Breakthroughs have been made in innovative fields such as AR and robotics
In May 2022 the Company announced the world's first pocket-sized AR commercial optical module
developed by itself with a PPI of more than 10000 which made a breakthrough in the underlying technical
architecture and made significant progress at the high pixel density level.Relying on the advantages of self-developed laser light machine such as high brightness small size
excellent heat dissipation and high energy efficiency the Company reached a strategic cooperation with
Midea Group to provide projection solutions for the first generation of home service robots released by it.This strategic cooperation fully reflects the Company's ability of laser implantation to enter the mobile device
filed which will help the Company cultivate and broaden the innovative application scenarios of core
devices.
2. Non-core device business
? C-end products are in a stage of well-grounded development and own-brand business maintained
a growing trend
In 2022 Formovie continued to focus on its own brand and released a number of new smart projector
products and its own brand business increased by 36.87% year-on-year accounting for 66.11% of Formovie's
total revenue. In the 2022 shipment ranking of the domestic consumer projector market (that is the home
projector market) the shipments of Formovie's own brand (excluding ODM) increased by 100.4%
year-on-year and the market share reached 8% ranking the top three (data source: IDC). During the reporting
period the overall sales volume of the sub-brand Xiaoming series projectors increased by 119.98%
year-on-year and the sales volume increased by 167.97% year-on-year.? The professional display business ranks first in the market accelerating the arrangement of
overseas markets
In the engineering business the Company's market share remains ahead in the 2022 laser projection
engineering market the Company's engineering projector sales share reached 14.5% up 2.7 percentage points
year-on-year ranking first in the market; the share of sales was 13.5% up 3.4 percentage points year-on-year
ranking second in the market (data source: AVC Revo). The Company adhered to the innovation drive and
launched the new laser 3DLP high-brightness engineering projector G series during the reporting period to
further enrich the high-brightness engineering projector product category. The Company continues to deepen
customer cooperation focusing on creating Xinjiang's first global "walking immersion" super sensory
performance All Celebrate and Dance Including Xinjiang Meeting the museum*Beijing 798 Hall and other
influential cases with industry influence to enhance the brand influence in the engineering business market.Xinjiang Hetian Yotegan Old City| Large-scale live performance All Celebrate and
Jiangxi Wuyuan Wunuzhou Huiyi Cultural Tourism characteristic town (T-series)
Dance Including Xinjiang (G-series S-series)
"Fascinating Zuoquan" light and shadow show in Zuoquan County Shanxi Province
Meet Dunhuang Light and Shadow Art Exhibition (Beijing/Haikou/Nanjing/Chengdu)
(T series)
Figure 3: Case display of benchmarking projects in the engineering machinery in 2022
Under the influence of relatively weak market demand for general education the Company accelerated
13 / 245Annual Report 2022
its transformation to higher vocational education and successively won the bid for Northeastern University
Sichuan Normal University Beijing Information Science and Technology University and other university
projection program projects. In the field of business and education the Company's shipments in the laser
projection business education market ranked first in the industry in 2022 (data source: AVC Revo). Its
overseas special display business field has covered some countries such as North America East Asia and
Central Asia.? The cinema business has been significantly impacted by the epidemic accumulating momentum to
meet the market recovery
Affected by multiple factors such as the long-term shutdown of cinemas and insufficient film sources
the Company's cinema projection service business has been affected to a certain extent. However with years
of deep cultivation and leading advantages the Company achieved nearly 2700 sets of new laser cinema light
sources installed nationwide during the reporting period. As of the end of the reporting period the number of
ALPD laser light source projection solutions of its subsidiary CINEAPPO installed in China has exceeded
27700 sets. The Company also actively responds to the national "dual carbon" policy pays attention to the
energy-saving and environmental protection performance of products and reduces carbon emissions. In terms
of overseas cinema market with the rapid recovery of overseas cinema market and the boost of movie
viewing demand the Company's overseas cinema light source sales performed well.With restrictions eased down sufficient film sources and favorable policies in the film industry the
Company will actively seize the opportunity to promote the development of the cinema business and drive
the high-quality development of domestic and foreign markets with product advantages and channel upgrades.II. Main business business model industry situation and research and development situation of the
Company during the reporting period
(I) Major business main products or services
1. The main business engaged in by the Company
The Company as a global leading enterprise in the laser display adheres to the market and customer
demand-oriented continues to focus on the original laser display technology and architecture as the lead and
devotes itself to researching and developing producing and selling laser display core devices and complete
machines. The Company applies laser display technology to traditional applications such as home projection
cinema projection engineering business and education and successfully enters the field of the automotive
optics lays out and expands new fields such as aviation display AR and robotics and is committed to
providing customers with a full range of laser technology solutions.
2. The Company's main products and services
The Company's products are mainly divided into laser display core devices and complete laser display
equipment according to major categories. Among them the core devices are further divided into laser light
sources (cinema light sources engineering light sources) laser intelligent mini projectors automotive optical
core devices (automotive displays HUDs laser headlights) and systems laser TV light machines etc.;
complete equipment can be further divided into intelligent mini projector laser TV laser movie projector
laser engineering projector laser education projector etc. The Company mainly provides laser cinema
projection services intelligent large-screen ecosystem Feng OS and corresponding system solutions.(II) Main business model
According to industrial policy industry characteristics upstream and downstream development and
customer needs combined with the Company's development strategy competitive advantage service
experience and other factors the Company develops a relatively mature business model with independent
and complete R&D procurement production and sales system.
1. R&D mode
The Company adheres to the innovation-driven continuously improves the R&D system that adopts the
independent R&D mode and separates technology development and product development in terms of
organizational structure and development process. In terms of technology development the Company focuses
on the continuous innovation and mastery of core technologies and key technologies and pays attention to
user needs-oriented and introduce product development after the technology is mature so as to maintain the
Company's core competitiveness in technology and leading position in the industry; in terms of product
development according to the differentiated needs of different market segments the Company sets up
product lines and teams for product planning divides it into feasibility \EVT\DVT\PVT\MP and other stages
to achieve rapid response to market demand.
2. Procurement model
The Company maintains long-term and in-depth cooperation with many suppliers constantly strengthens
14 / 245Annual Report 2022
supply chain management and quality management and always adopts diversified procurement. The
procurement mode consists of front-end procurement services such as supplier selection determination of
purchase price cooperative business system and establishment of supplier platform as well as back-end
business such as purchase order execution and delivery.
3. Production mode
The Company implements the model of "independent production as the mainstay supplemented by
outsourced production" with an independent production system. The Company's external sales and projection
services of light sources optical core devices and core processes in the production process are completed by
the Company independently; To C intelligent mini projector laser mini projector laser TV complete machine
etc. are mainly outsourced and other complete products are produced by itself.
4. Sales model
(1) Product sales model
The Company's marketing service network is laid out well matching various application market
segments. It adopts the product sales model combining "direct sales distribution and agent sales" and
achieves mutual penetration and coordinated development both online and offline to respond to customer
needs in a timely and rapid manner;
(2) Cinema projection service mode
The Company's holding subsidiary CINEAPPO provides laser film projection services to downstream
cinema customers and charges service fees according to the length of time (the fees are charged by the hour
or a certain period of time) the cinema uses the light source in this case the cinema does not need to purchase
light source equipment thereby effectively alleviating its financial pressure and reducing its labor and
maintenance costs.
(3) Automotive optical business cooperation model
According to the needs of OEMs and the design of their own production lines the Company designs and
develops automotive optical products and accepts the audit and certification of car companies at all stages
until it receives mass production confirmation. The Company's specific supply process is as follows:
Before the mass production of the project the Company obtains the project designation point and signs
relevant sales contracts with the car company stipulating the rights and obligations of both parties.The designated-point contract usually uses the project usage within the procurement period as a
reference to determine the purchased products model specifications supply terms etc. and the
designated-point supplier supplies and provides services according to the contract provisions and settles and
pays regularly. Regarding the Company's products the mode of synchronous research and development with
car companies is adopted so the project progress after signing the designated-point contract is closely related
to the development progress of customer models.After the mass production of the project car company requires the Company to conduct mass production
puts forward specific delivery arrangements and after the car company confirms the receipt it will pay the
Company according to the price agreed by both parties.(III) The situation of the industry
1.The development stage basic characteristics and main technical thresholds of the industry
(1) Industry development stage
As an emerging industry laser display is at a stage of rapid growth and its growth drivers mainly come
from: First technological progress has spawned emerging application fields and laser display technology has
been applied to the automotive optics and other fields and the market has great potential for explosion;
second the “14th Five-Year Plan” listed laser display in the Ministry of Science and Technology's "New
Display and Strategic Electronic Materials Key Special Project". With the support of national and industry
policies more and more domestic enterprises and scientific research institutions enter the upstream and
downstream fields of the laser display industry chain strengthen the industrial chain actively develop and
iterate technology thus further increasing the localization rate of core components of products.
(2) Basic characteristics of the industry
In 2007 the ALPD laser display pioneered by the Company's R&D team broke through the application
bottleneck of the core devices and imaging solutions of laser display in the display field and became the
mainstream technology of the laser display industry and has been widely used in vehicle-mounted household
cinema engineering business and education and other fields.In terms of technology ALPD laser display has become the mainstream technology which can be
matched with a variety of chips and technical routes suitable for DLP LCOS and LCD technology; in terms
of market in addition to traditional applications such as cinema engineering business and education
15 / 245Annual Report 2022
emerging industries such as intelligent cockpit intelligent networking AR and AI are booming and
gradually become a new application development focus of the laser display industry and the overall scale of
the industry continues to expand which is expected to help to broaden the market growth space of ALPD
laser display technology.
(3) Main technical barriers
Laser display products cover optics electronics materials physics mechanical design precision
manufacturing and other fields. The key to product performance improvement lies in the core devices while
the research and development and iteration of core devices are subject to high technical barriers and strong
patent barriers. In terms of specific application fields the technical barriers of the TO C market and the
innovative application market lie in high efficiency small size and high-performance price ratio while the
technical barriers of the TO B market lie in the continuous upgrading of performance such as brightness
color dynamic range etc.It is worth mentioning that ALPD laser display technology as the only laser display technology that
meets the requirements of automotive regulations can solve the problem of compliance of red laser vehicle
specifications in RGB light sources and has significant technical advantages in the automotive optics.
2.Analysis of the Company's position in the industry and its changes
As a new generation of display technology laser display is widely used in the market with its advantages
of high brightness small volume long service life wide color gamut energy saving and environmental
protection. In addition to the traditional display field it can also be applied to innovative fields such as
vehicle-mounted AR and aviation.As a leader in the laser display industry the Company has laid out a patent moat around the underlying
technical architecture of laser phosphor display technology which is difficult to be bypassed by companies in
the industry entering the laser phosphor technology route. The Company is committed to the breakthrough
and innovation of laser display technology the development of application scenarios and the industrialization
promotion and thus forms the technical reserve and patent arrangement of the whole technology chain of
laser display from key system architecture core devices to key algorithms. With the core competitive
advantage of "patent moat+ technical barriers" the Company has its voice at the upstream core device stage
in the laser display industry.
3.The development and future development trend of new technologies new industries new formats and
new models during the reporting period
(1) Accelerated development of automotive intelligence leads to considerable market potential of the
automotive optics
A. Automotive intelligence
In terms of demand the automobile consumer group is younger and the demand for automotive
intelligence will explode. According to SIC data in 2020 the proportion of car buyers after the post-90s
generation accounted for about 26% and by 2025 this proportion will quickly increase to 38% and more
than 52% of car buyers will be the post-90s generation in 2030. As Generation Z gradually becomes the
main group of car buyers the preference for intelligent driving high-tech and other configurations is stronger
and the demand for automotive intelligence will further improve.In terms of supply in recent years blockbuster models of various new energy vehicle companies have
been launched one after another thus greatly inspiring the market enthusiasm and more intelligent vehicles
will be launched soon. In the medium and long term in the future China's smart electric vehicle market will
present a diversified competitive pattern with the subsequent domestic intelligent vehicle supply significantly
increased industrial development showed an accelerated trend. In order to accelerate the construction of an
intelligent transportation system China has issued a number of policies and regulations to promote the
intelligent upgrade of the automotive industry. With the support of multiple policies the transportation field
of China's automobile market is developing towards intelligence and Internet connectivity.B. Intelligent cockpit
Automotive intelligence starts first followed by the era of intelligent cockpit. The intelligent cockpit is
in a period of rapid growth with accelerated application. With the change of consumer demand consumers'
positioning of cars is gradually evolving from travel tools to the third space and intelligent cockpits are given
stronger interactive attributes. Compared with traditional cockpits intelligent cockpits have outstanding
advantages in interactive performance sense of technology comfort safety and other fields and the related
hardware industry has broad growth space.In 2030 the global automotive intelligent cockpit market will reach $68.1 billion of which the Chinese
16 / 245Annual Report 2022
market will exceed RMB160 billion; China's intelligent cockpit market share will further rise to 37%
becoming the world's leading smart cockpit consumer market (Source: IHS forecast). In the intelligent cockpit
industry chain some subdivisions have seen rapid growth opportunities:
Head-up display (HUD): W-HUD is the current mainstream program and AR-HUD combining virtual
image and real scene is expected to become the mainstream in the future with more integrated display effect
richer information content. As the terminal car manufacturers accelerate the promotion of front-mounted
HUD the penetration rate of HUD continues to increase and it is expected to further increase. In terms of
market size according to the data of Yiou Think Tank the market size of China's automotive front-mounted
HUD will reach RMB2.96 billion in 2021 and the market size is expected to reach RMB31.74 billion in 2025
with a compound annual growth rate of 81% and the overall scale is expected to achieve rapid growth in the
future.Automotive display: As a terminal system automotive display helps realize the human-computer
interaction and the multi-screen automotive display is in great demand. The driver enters commands on the
display by voice touch etc. and the display uploads the command to the system and outputs. The vehicle is
equipped with a central display instrument panel display head-up display rearview mirror display and front
and rear entertainment screens. According to Omdia global automotive display shipments in 2020 was 140
million and the market size reached $7.2 billion and it is expected that automotive display shipments will be
230 million in 2025 with a five-year compound growth rate of 10% and the automotive display market size
will be $12.8 billion with a five-year compound growth rate of 12%.Relying on the characteristics of high brightness small size high energy efficiency ratio and the ability
to convert any surface into a digital interactive interface laser display has become a new display technology
after LCD in the field of automotive display and has become one of the mainstream technologies attracting
car companies.C. Automotive lighting
At first automotive headlights are designed to meet the night visual needs providing basic lighting for
drivers driving at night and providing low and high beam. With the development of technology greater
driving safety is required at night. For example to minimize the effect of headlight glare which is easy to
cause traffic accidents. AFS (adaptive headlight system) and ADB (adaptive high beam system) lighting
systems emerge. In the third stage automotive lamp shows the potential of rich personalization and infinite
scene interaction expansion in the era of intelligent automobiles so that the display function is introduced into
the lamp thus more interactive behavior between the lamp and driver and a trend of display+ lighting
integration including road surface projection pixelated signal lights etc.The market penetration rate of ADB headlamps in 2022 is only 3.2% while the market penetration of
ADB headlamps is expected to reach 13.2% by 2026 driving the overall lamp market value to reach $39.496
billion in 2026 with a compound annual growth rate of 4.7% from 2021 to 2026 (Source: TrendForce).
(2) Laser display is integrated with new technologies for expansion into new fields such as robots and
AR
A. Artificial intelligence empowers terminal devices with more "intelligence"
With the iterative update of a new generation of artificial intelligence technologies and applications such
as ChatGPT 4 and Midjourney V5 and their excellent content generation capabilities artificial intelligence
(AI) has begun to reach the general public users on the C-end and AIGC (artificial intelligence content
generation) technology is gradually changing the current content production mode and bringing new changes.The new direction of artificial intelligence technology represented by GPT has begun to provide more
and broader scene channels for potential downstream applications of electronic products and it is expected to
form a path with computing power chips→ computing power devices→ cloud-side servers →end side AIOT
as the core for the hardware. With the application of artificial intelligence technology in mobile phones smart
homes smart cameras drones self-driving cars and other terminals terminal devices will be given more
"intelligence".According to qubit calculations the domestic AIGC market size is expected to reach RMB17 billion in
2023 and from 2025 as the industrial ecology becomes more and more perfect its application will flourish
and drive the rapid growth of the industry and starting from 2028 AIGC will develop a complete industrial
chain and continue to expand and deepen commercialization scenarios and the market size is expected to
exceed RMB1 trillion by 2030.B. Artificial intelligence accelerates the industrialization of robots
AI and robot develop independently with the emergence of deep algorithms in 2006 robots started to be
used. In March 2023 Google launched PaLM-E the world's largest visual language model to realize the
synchronous training of robot vision and text; at the same time Microsoft released a paper to integrate
17 / 245Annual Report 2022
CHATGPT into robot training which attracted widespread attention in the industry. Multimodal’s application
in robots is on trend which will further empower robots to reduce robot programming costs improve
human-computer interaction capabilities and make scenarios more vivid. Based on factors such as fault
tolerance To C-end applications are ideal scenarios and scenarios such as home companion service robots
food delivery robots and mobile robots will be the first to be applied. With the technical iteration and cost
reduction of general AI products it is expected to create more core scenarios in the future and achieve AI
inclusiveness.Laser display technology is one of the mainstream technical routes which can be matched with a variety
of chips and technical routes suitable for DLP LCOS and LCD technology. It is compatible with the latest
technologies such as human-machine interaction intelligent identification Internet of Things cloud platform
and big data. Among them with the rapid development of AI artificial intelligence the Company's core
device business with first-mover advantage will be more creative and imaginative. Relying on the deep
technology accumulation in the field of laser display the Company provided projection solutions for the first
generation of home service robots released by Midea Group in 2022 and successfully entered the field of
growing robots.C. AR display the mainstream display technology of the future
AR display can superimpose virtual reality in real scenes to achieve enhanced display and therefore can
be applied in industry medical remote communication sports daily information display and other aspects.With the continuous advancement of virtual display technology and the promotion of virtual personal
assistants by major technology giants glasses AR products are expected to usher in a period of rapid
development.AR glasses optical imaging systems currently use more solutions for free-form surfaces birdbaths and
optical waveguides. From the prospective of performance optical waveguides have obvious advantages in
lens thickness field of view light transmittance etc. and have the highest technical barriers. In terms of
display silicon-based OLED screen is widely used and Micro LED has also been pursued by the industry
but problems related to brightness service life power consumption cost yield and other aspects remain to be
solved.From the perspective of technical architecture AR display is similar to projection-type display and with
the accumulation of technology in laser display the Company possesses the imaging optics illumination
optics algorithms and other technology and industrial chain resources required for AR technology research
and development.In May 2022 the Company announced the world's first self-developed AR optical module with PPI
exceeding 10000 which focused on making breakthroughs in the underlying technical architecture and
making significant progress at the high pixel density level. Based on the innovation in optical structure
algorithm and other technical fields the Company has developed SPD (super pixel density) technology
which achieves over 10000 PPI 720p resolution 40 degrees of field of view and power consumption below
200mW in a volume of 0.5cc (cubic centimeters) and the image definition is more than twice the industry
average under the same volume.(IV) Core technology and R&D progress
1. Core technology and its advancement and changes during the reporting period
The Company is committed to the breakthrough and innovation of laser display technology the
development of application scenarios and the industrialization promotion and thus forms the technical reserve
and patent arrangement of the whole technology chain of laser display from key system architecture core
devices to key algorithms. At the same time the Company continues to invest R&D resources in laser display
system miniaturization miniaturization light source architecture complete machine structure complete
machine perception thin film material preparation and processing to maintain the industry-leading level. As a
Leader Level Member of the International Laser Projector Association the Company participates in the
development of international standards for laser display.With the support of accumulated data algorithms and design solutions the Company has the ability to
quickly provide products and solutions that meet different application scenarios such as movie screening
home entertainment outdoor display ultra-large area display immersive display and so on. Meanwhile the
Company has successively made breakthroughs in the fields of automotive-grade laser optical machine wide
18 / 245Annual Report 2022
color gamut high dynamic range optical machine AR optical module and other fields and achieved
market-oriented promotion.National Scientific and Technology Awards
□ Applicable √ N/A
Qualifications of national "little giant" enterprises in specialized refinement differential and innovation and
"leading enterprise" in the manufacturing industry
□ Applicable √ N/A
2. R&D achievements during the reporting period
During the reporting period the Company made the following achievements in technology and product
innovation:
(1) Core devices
In terms of cutting-edge technology the Company officially released ALPD 5.0 laser display
technology in November 2022 which greatly improved the color gamut range by maintaining the original
technical advantages of ALPD without speckle low cost and high luminous efficiency by way of light
source control matching software algorithm reaching 120% Rec.2020 165% DCI-P3 210% Rec.709 to meet
the color gamut requirements of the 4K standard. It helps achieve the maximum color gamut visible to the
human eye thereby improving the visual experience.In terms of automotive optics the Company has developed multiple automotive-grade products such as
automotive laser display HUD PGU and pixelated intelligent headlights that met automotive standards and
carried out mass production and research and development of automotive-grade optical machines based on the
designated projects of automotive enterprises.In terms of innovative applications based on multiple technological innovations such as optics structure
and algorithms the Company has developed SPD (super pixel density) technology and announced the world's
first self-developed AR optical commercial module with PPI exceeding 10000 in May 2022 which made a
breakthrough in the underlying technical architecture and significant progress at the high pixel density level;
the Company provided projection solutions for the first generation of home service robots released by Midea
Group successfully applying laser display light machine to intelligent home service robots and achieving the
first mass production delivery. In addition the "zero" post-focal optical machine solution is another
technological innovation of the Company. Compared with the traditional optical machine it has no prism no
backfocus block thus minimizing the volume of the optical machine and will see more development in
innovative fields such as mobile phones AR and vehicles in the future.
(2) Complete machine
In the field of household projection during the reporting period Formovie Technology released a
number of smart projectors including V10 projector S5 laser intelligent mini projector Xiaoming Q2 and Q2
Pro intelligent projectors enriching the projection product matrix to meet the diversified projection needs of
consumers. In May 2022 Formovie Technology officially released its flagship new V10 4K
ultra-high-definition projector with a brightness of more than 2500 lumens achieving a leading position in
its class and 3840*2160 resolution 8.3 million pixels and AI image quality enhancement function
presenting ultra-high-definition extreme vision; it pioneers the industry in the 2.1-channel speaker design.In the field of household TV during the reporting period Formovie launched Formovie Theater a
full-color laser TV product with 4K resolution and BT.2020 color gamut overseas which was the first laser
TV to achieve far-field voice through Android TV 11.0 and Google. For the sound quality the Company
jointly developed and debugged with the well-known brand B&W to achieve the leading sound effect and
image quality synchronization in the industry.In the field of engineering applications as the first enterprise in China to independently develop 3DLP
high-lumen engineering machines the Company launched a new generation of G series high-brightness
engineering projectors using high-efficiency liquid cooling system and 3DLP imaging technology to achieve
25000 lumens of high brightness effectively supplementing the brightness and price range of the previous
generation of T series high-brightness engineering machines and realizing wider application coverage of
high-brightness engineering projectors in cultural tourism night tourism economy and other fields.List of intellectual property rights acquired during the reporting period
Newly added in the current year Total
19 / 245Annual Report 2022
Applications (pcs) Granted (pcs) Applications (pcs) Granted (pcs)
Patent for
2221481622966
invention
Patent forutility
174181715605
model
Patent for design 32 37 219 202
Software copyright 20 16 133 127
Others 136 163 1130 980
Total 584 545 3819 2880
Note: 1. “Others” in the table above refer to trademarks of the Company; 2. during the reporting period the
Company filed 73 PCT international patent applications.
3. R&D investments
In RMB
Current year Last year Change (%)
R&D investments expensed 262108405.90 236702224.29 10.73
R&D investments capitalized - - -
Total R&D investments 262108405.90 236702224.29 10.73
Proportion of R&D investments to +0.84 percentage
10.319.47
operating income (%) points
Proportion of R&D investments
---
apitalized (%)
Reason for the material change in the total R&D investments compared with last year
□ Applicable √ N/A
Reasons of the great change in the proportion of R&D investments capitalized and explanation
about the rationality there of
□ Applicable √ N/A
20 / 245Annual Report 2022
4. R&D projects
√ Applicable □ N/A
In RMB
Estimated Investment Progress
Aggregate Application
No. Item total in the current Or interim Goals Technological level
investment scenario
investment period results
This project will research the
industrialization of the
This project will
technology of RGB trichromatic This project
greatly promote the
Trichromatic laser with phosphor to satisfy the will establish a
industrial upgrading of
Laser Display market demands for RGB trichromatic
trichromatic laser
Complete trichromatic laser display build a laser display
Mass display technology
1 Equipment 102840000.00 26082494.49 95703192.76 mass production line for complete
production and gain international
Production trichromatic laser display equipment
competitive edge for
Demonstration complete equipment acquire production
proprietary
Line proprietary IP and realize demonstration
trichromatic laser
large-scale application of line.display technology.trichromatic laser display
products.Carry out customized research
It is used in
and development design and
innovative
production of vehicle-mounted
projection
Innovative projection products for different
display
projection models according to the Take the lead in the
2 170870000.00 39009880.78 39009880.78 Pilot test scenarios such
optics requirements of automobile industry
as
applications manufacturers; research and
vehicle-mount
develop AR optical modules;
ed AR and
provide projection solutions in the
IoT AloT.field of IoT AloT.Combined with the
new-generation light generator
technology equipped with the
4K
Mass independently developed FengOS Take the lead in the
3 Laser TV 102040000.00 30547199.52 85019675.97 household
production system and screen with obvious industry.laser TVs.improvement in cost
effectiveness color gamut and
ease of use.
21 /245Annual Report 2022
It is used in
Research and develop low-cost Take the lead in the
high-end home
DCI-compliant laser cinema industry DCI standard
Laser cinema Mass markets and
4 114640000.00 37483782.58 81073194.57 projectors for high-end home use household projector
projector production cinema
and DCI-compliant cinema LED and cinema LED
screening
screens. screen.halls.It is used in the
Take the lead in the
upgrading of
industry and make
It adopts a new generation of cinema
Core device significant
optical machine technology to projector light
light source and improvement in cost
Mass realize lower cost wider color source
5 light 100620000.00 28797886.91 55046595.96 performance color
production gamut higher brightness and three-color
generator gamut light efficiency
higher energy efficiency ratio of laser TV laser
project etc. to better meet the
light source optical machine. mini projector
actual needs of
and other
customers.market fields.Research and develop
high-performance cost-effective
intelligent mini projectors lay out
Household
Intelligent mini Mass different product series make Take the lead in the
6 174520000.00 72119130.48 91234969.04 mini projector
projector production breakthroughs in technological industry
market
innovation product form
innovation and quality upgrade to
meet different user needs.It is used in
Develop a variety of high-end
Professional
high-brightness laser engineering engineering
display products
Mass projectors and cost-effective Take the lead in the projection
7 (engineering+ 80040000.00 28068031.14 44303175.89
production intelligent business projectors etc industry business
business
according to the needs of different education and
education)
market users. other market
fields.Total / 845570000.00 262108405.90 491390684.97 / / / /
Remark
Not
22 /245Annual Report 2022
5. R&D staff
In RMB 0’000
Basic information
Amount of the current
Previous period
period
Number of R&D staff (persons) 521 456
Proportion of R&D staff to total employees of
31.8329.14
the Company (%)
Total compensation of R&D staff 16993.04 14761.07
Average compensation of R&D staff 32.62 32.37
Academic structure of the R&D staff
Academic category Person in the academic category
Master and above 140
Bachelor and below 381
Age structure of the R&D staff
Age category Person in the age category
Below 30 (exclusive) 198
30-40 (including 30 excluding 40) 222
40 and above 101
Reason for material changes in the composition of the R&D staff and impact on the future development of the
Company
□ Applicable √ N/A
6. Other information
□ Applicable √ N/A
III. Analysis of core competitiveness during the reporting period
(I) Analysis of core competitiveness
√ Applicable □N/A
1. The R&D team is strong accelerating the development and iteration of products
The Company adheres to innovation-driven continues to increase R&D investment in forward-looking
technology arrangement and product technology development. As a high-tech enterprise the Company will
continue to improve R&D capabilities as the main theme of the Company's core competitiveness and
continue to improve the R&D system. With Mr. LI Yi chairman and general manager as the core personnel
of R&D the Company has established a leading R&D team in optics and display devices developed and
innovated the laser display technology for many years thus having accumulated profound R&D technical
strength and got a deep understanding and judgment of the industry's cutting-edge technology and
development trend.The Company has set up a research institute and a research and development center to jointly coordinate
technology planning development and accumulation. The institute carries out forward-looking product
technology research and product verification develops it into a new product line and ensures that R&D
resources are advanced; the R&D center combining the R&D and scientific research achievements of the
research institute coordinates the management of new product development until mass production and launch.With leading R&D technical resources the Company significantly improves the efficiency of R&D planning
through the cooperation of R&D center and research institute and applies the latest R&D achievements to
projection display products.
2. Relying on the technical advantages of core devices all-round forward-looking strategic arrangement
is made
Based on the technical advantages of core devices and market development trends the Company has
been committed to the breakthrough and innovation of laser display technology the development of
23 /245Annual Report 2022
application scenarios and the industrialization promotion and thus forms the technical reserve and patent
arrangement of the whole technology chain of laser display from key system architecture core devices to key
algorithms and constantly optimizes and improves the strategic arrangement of automotive display aviation
display AR and other application fields. We promote the innovative application of core devices in new fields
and new tracks and continue to broaden the long-term growth space of core device value.
3. Build a patent moat around the underlying technical architecture
The Company takes the underlying technical architecture patent of the original laser display technology
as the center and builds a solid and interconnected intellectual property patent system and it is difficult for
competitors to fully imitate or directly by the underlying patent arrangement of the Company's laser
fluorescence technology route. The Company actively responds to the national "intellectual property power
strategy" and increases the proportion of high-value patents. As of December 31 2022 the Company has
applied for and authorized patents in 2629 cases worldwide and obtained 1773 authorized patents
worldwide including 966 authorized invention patents.In terms of technology leadership the Company's original laser phosphor display has become the
mainstream technology in the current laser display field and as the underlying key architecture technology it
has been used more than 660 times by companies in the same industry such as Philips of the Netherlands
Osram of Germany Epson of Japan NEC and other companies.(II) Events occurred during the reporting period that have a material effect on the Company’score
competitiveness analysis of the effect and countermeasures
□ Applicable √ N/A
IV. Risk factors
(I) Risk of not making a profit
□ Applicable √ N/A
(II) Risk of significant decrease in operating performance or loss
□ Applicable √ N/A
(III) Risk related to core competitiveness
√ Applicable □ N/A
The risk that technological innovation will fall short of expectations
The Company needs to accurately grasp the development trend of industry technology and application
and constantly develop and optimize its own technical capabilities to provide services and products that meet
market demand and customer standards. If we fail to make effective judgments on the direction of
technological innovation or fail to achieve continuous technological innovation or fail to make effective
R&D investment due to financial constraints or face risks such as the loss of core technology personnel and
technology leakage adverse effects such as weakening competitiveness may occur.The Company will continue to timely and accurately grasp the technological development trend of the
laser display industry further strengthen technical advantages and technology development increase
investment in research and development and consolidate its own industry position and enhance product
competitiveness on the basis of maintaining existing technical advantages.(IV) Operating risk
√ Applicable □ N/A
Risk related to the supply of important raw materials
Core suppliers may not be able to supply parts in time or guarantee both quality and quantity resulting in
a slowdown in the growth rate of the Company's related business delayed of the shipment progress of some
core devices or complete machine products and the Company’s growth rate of business performance will not
meet expectations as a result.The Company has established stable cooperative relations with existing suppliers and pays attention to
the supply and demand of important raw materials market and price changes and ensures the supply of raw
materials and controls procurement costs through measures such as early procurement strengthening
cooperation with strategic suppliers and seeking domestic device substitution. At the same time the
24 /245Annual Report 2022
Company will improve the planning of product sales production efficiency and the turnover speed of core
parts.(V) Financial risk
√ Applicable □ N/A
1. Risk of impairment of accounts receivable
As of the end of the reporting period the carrying value of the Company's accounts receivable was
RMB208.2602 million accounting for 4.81% of assets. The Company's product sales mainly adopt the
method of paying before the deliver and we leave a certain credit period to some key high-quality large
customers. If a material adverse change in the customer's operating conditions occurs there may be a risk that
the accounts receivable will not be collected which may adversely affect the Company's future performance.The Company strengthens risk management and control continuously tracks and controls customer
credit and urges customers to settle and pay in a timely manner strengthen the assessment of accounts
receivable collection and establish an early warning system for overdue accounts receivable; for individual
customers who maliciously default and have a long period of arrears payment will be recovered through
arbitration litigation and other legal methods.
2. Risk of impairment of inventories
As of the end of the reporting period the carrying value of the Company's inventory was RMB865.6400
million accounting for 19.98% of assets. The Company's inventory is mainly composed of raw materials and
inventory goods. If the competitive landscape of the industry changes significantly and there is a major
innovation in laser display technology and products the recoverable amount of inventory may be lower than
its carrying value resulting in inventory impairment which will have a negative impact on the Company's
profitability. The Company will pay close attention to the changes in supply and demand of the industrial
chain timely carry out production and marketing coordination according to the market and production
conditions to reduce product inventory risks.
3. Risks of impairment of fixed assets
As of the end of the reporting period the carrying value of the Company's fixed assets was
RMB427.5397 million accounting for 9.87% of the assets. The Company's fixed assets are mainly composed
of production equipment and rental cinema projector light sources of which cinema projector light sources
account for 74.13%. If the theater is shut down due to force majeure the light source of the cinema projector
may be idle resulting in impairment of fixed assets which will adversely affect the Company's operation. In
order to cope with the above risks the Company will pay close attention to the status of fixed assets
strengthen communication with business departments improve the efficiency of asset use and reduce the risk
of impairment. In the meanwhile for assets that show signs of impairment the Company will measure the
recoverable amount and make an impairment provision for fixed assets based on the difference between the
recoverable amount and the carrying value.
4. Risk of exchange rate changes
The Company's procurement and sales involve a variety of foreign currencies of which dollar is the
main foreign currency. If the exchange rate of the relevant currency fluctuates it will have a certain impact on
the Company's financial position. In this regard in order to effectively avoid the risks of the foreign exchange
market prevent large fluctuations in the exchange rate from adversely affecting the Company's business
performance improve the efficiency of the use of foreign exchange funds and reasonably reduce financial
costs the Company carries out foreign exchange derivatives and other businesses in a timely manner to
reduce the risk of exchange rate fluctuations.(VI) Industrial risk
√ Applicable □ N/A
Risk of increased competition in the household smart projection market
With the continuous influx of new brands and the continuous investment of domestic independent brand
companies in this field the competition of the home smart projection market has become more and more
fierce. If the Company fails to update and meet the needs of the application field in terms of technology
products costs services and other aspects in the future or there are mergers and acquisitions between
25 /245Annual Report 2022
competitors integration and concentration of their own advantageous resources or market competition leads
to a significant decline in product prices the Company will face the market share decline business
performance growth slowdown or even decline in the field of home intelligent projection.The Company needs to continue to strengthen the innovation and optimization of intelligent projection
products and channels accurately grasp the application rhythm of the terminal market maintain the
competitiveness of the Company's household projection products to maintain its leading position to ensure
strong competitiveness in the market.(VII) Risk of macro-environment
√ Applicable □ N/A
At present the global economy is witnessing cyclical fluctuations the domestic and foreign economic
situation is complex and changeable and the economic pattern is accelerating its restructuring. If the domestic
and foreign macro economy continues to decline in the future it may adversely affect the Company's
operating conditions and even affect the Company's profitability.The Company will continue to strengthen the study and judgment of the macroeconomic situation pay
close attention to the political economic and international trade environment and tariff changes of major
countries quickly assess risks and actively adjust relevant businesses to reduce the adverse impact of changes
in the international trade environment.(VIII) Risk related to depository receipts
□ Applicable √ N/A
(IX) Other significant risks
√ Applicable □ N/A
1. Risks in intellectual property rights
The Company has always attached importance to the research and development of independent
intellectual property rights but intellectual property disputes between the Company and competitors or third
parties are likely to occur and some competitors or third parties may maliciously file lawsuits against the
Company. Such intellectual property disputes may adversely affect the Company's normal business activities
and hinder the Company's market expansion and market competitiveness.The Company has built a system for the creation management application and protection of intellectual
property rights and continuously improved key technologies and patent management and protection
mechanisms. On the one hand it actively designs the arrangement of intellectual property rights globally and
implements an early warning mechanism for intellectual property risks; on the other hand it formulates and
improves measures to respond to intellectual property disputes. Multiple measures have been taken to protect
the legitimate rights and interests of the Company and avoid market or economic losses caused by intellectual
property disputes.
2. Risks in implementing investment projects
Affected by force majeure the Company faces risks such as slowdown of the capacity expansion and
unsatisfied construction progress of the headquarters building in the process of implementing fundraising and
investment projects. The Company will strengthen the management of fundraising and investment projects
accelerate the progress of project construction and track the progress of fundraising and investment projects
in real time but in the implementation process it is not ruled out that the final implementation progress may
be slower than planned and the implementation plan or plan needs to be adjusted according to the
development of the industry and market. In the event of the foregoing the Company will perform
decision-making procedures in accordance with relevant regulations and disclose information in a timely
manner.
3. Risk related to the management of cinema light source
In the laser film projection service business the customer pays to use the laser light source according to
the duration of using the light source and bears the daily storage maintenance and damage compensation of
the light source but the Company still faces the asset impairment caused by the damage or loss of the light
source due to poor storage of the cinema.In order to cope with the above risks the Company collects a light source deposit from new leasing
26 /245Annual Report 2022
customers and limits the average monthly minimum screening time of the theater to improve the efficiency of
light source use. In addition the Company realizes the linkage of screening time data between the leasing
platform and the third-party platform and timely discovers and handles theaters with risks so as to
continuously improve the quality and safety of leasing operations.
4. Risks in the arbitration with relevant parties of the participating company GDC BVI
At present the Company is in the process of arbitration and counter arbitration with relevant parties of
GDC concerning the rights and interests of the parties. Because GDC CaymanGDC BVI Mr. ZHANG
Wanneng and his management team violated the provisions of the Shareholders’ Agreement and
Settlement Agreement including but not limited to the appointment of directors in violation of corporate
governance regulations violation of protective provisions for the Company and failing to purchase the
minimum quantity of C5 projectors and core device parts by the end of 2021.There will be uncertainties about the Company's cooperation with GDC BVI regarding the procurement
of cinema hardware products; since the arbitration case has not yet commenced its impact on the Company's
profit and loss cannot be determined and the final actual impact shall be subject to the arbitral tribunal's
verdict or negotiation between the parties. The Company has hired a team of professional lawyers to take
relevant legal measures to protect the legitimate rights and interests of the Company and all shareholders in
accordance with the law and will fulfill its information disclosure obligations in a timely manner in
accordance with relevant regulations.V. Main business activities during the reporting period
During the reporting period under the background of complex and changeable macro environment at
home and abroad the Company's operating profit was under pressure in the short term but the Company
actively responded to the challenges of the operating environment and achieved operating income of
RMB2.541 billion a year-on-year increase of 1.72%; the net profit attributable to shareholders of listed
companies was RMB119 million down 48.82% from the same period last year; the net profit attributable to
shareholders of the listed company deducted non-recurring profits and losses was RMB65 million down
47.85% from the same period last year. At the end of the reporting period the Company's total assets reached
RMB4.333 billion an increase of 5.76% over the beginning of the period; the net assets attributable to
shareholders of the listed company were RMB2.648 billion an increase of 8.60% over the beginning of the
period.(I) Analysis of main business
1. Analysis of changes in statement of income and statement of cash flows lines
In RMB
Amount of the Amount of the prior Change ratio
Item
current period period （%）
Operating income 2541144635.15 2498228401.78 1.72
Operating costs 1711732842.88 1651089557.25 3.67
Selling expenses 334758958.86 252854103.31 32.39
Administrative expenses 193554776.41 187933417.27 2.99
R&D expenses -9162605.79 1300380.36 -804.61
Financial expenses 262108405.90 236702224.29 10.73
Net cash flow from operating activities 177350715.69 58337226.84 204.01
Net cash flows from investment activities 47917226.22 -444906406.98 Not Applicable
Net cash flows from financing activities 116013055.07 295570009.05 -60.75
Reasons for the change in sales expenses: In 2022 sales expenses accumulated to RMB334.759 million an
increase of 32.39% year-on-year mainly due to the Company’s increased investment in its own brands
year-on-year increased marketing expenses and increased staff salary;
Reasons for the change in financial expenses: In 2022 the cumulative financial expenses incurred were
-RMB9.1626 million a year-on-year decrease of RMB10.463 million mainly due to exchange gains caused by
exchange rate changes;
Reasons for the change in net cash flow from operating activities: Net cash flow from operating activities
was RMB177.3507 million an increase of RMB119.0135 million over the same period of the previous year
27 /245Annual Report 2022
mainly due to the increase in sales collection and the decrease in purchase payments caused by the optimization
of the account period;
Reasons for the change in net cash flow from investment activities: net cash flow from investment activities
was RMB47.9172 million an increase of RMB492.8236 million over the same period of the previous year
mainly due to the decrease in the structured wealth management purchased in the current period compared with
the same period of the previous year and the disposal of the equity recovery investment funds of the
shareholding company Cinionic in the current period;
Reasons for the change in net cash flow from financing activities: Net cash flow from financing activities
was RMB116.0131 million a decrease of RMB179.557 million from the same period of the previous year
mainly due to the introduction of strategic investment by the Company's subsidiaries in the same period of the
previous year.Detailed description of major changes in the business types profit composition or profit sources of the
Company
□ Applicable √ N/A
2. Analysis of revenue and costs
√ Applicable □ N/A
During the reporting period our operating income was RMB 2.541 billion increased by 1.72% year on year.
(1). Main business by industry product region and sales mode
In RMB 0’000
Main business by industry
Gross % Change % Change
Operating Operating % Change in
Industry margin in in operating
income costs gross margin
(%) operating cost
-1.27 percentage
Laser display 254114.46 171173.28 32.64 1.72 3.67
points
Main business byproduct
% Change
Gross % Change
Operating Operating in % Change in
Product margin in operating
income costs operating gross margin
(%) cost
income
+1.09 percentage
1. Sales 225924.34 157009.04 30.50 6.60 4.96
points
(1) Light source and -6.93percentage
52028.1429582.9643.1480.14105.15
light machine points
(2) Complete laser +1.46percentage
151966.54109619.8227.87-11.03-12.80
projector points
Laser cinema -4.08percentage
3085.791817.1541.11-50.65-46.97
projector points
+6.86percentage
Laser TV 40940.28 25989.79 36.52 -27.13 -34.24
points
Professional display -0.42percentage
43386.1225369.1341.53-15.19-14.58
projector points
Smart mini +5.31percentage
64554.3556443.7512.5612.846.38
projector points
(3) Other -3.96percentage 21929.66 17806.26 18.80 79.05 88.23
products points
2. Cinema
-11.40percentage
projection 26898.39 13741.61 48.91 -25.41 -3.99
points
service
3. Other +33.33percentage
1291.73422.6367.28-29.31-64.99
business points
28 /245Annual Report 2022
Main business by region
% Change
Gross % Change
Operating Operating in % Change in
Region margin in operating
income costs operating gross margin
(%) cost
income
-2.39percentage
Domestic 212026.97 147173.87 30.59 -8.55 -5.29
points
-2.94percentage
Overseas 42087.49 23999.41 42.98 134.23 146.95
points
Main business by sales mode
% Change
Gross % Change
Operating Operating in % Change in
Sales mode margin in operating
income costs operating gross margin
(%) cost
income
+1.54percentage
Direct sales 157493.60 112145.62 28.79 2.11 -0.05
points
-0.70percentage
Distribution 69644.52 45241.22 35.04 19.90 21.21
points
+30.75percentage
Commissioned sales 77.95 44.83 42.49 -94.58 -96.47
points
Projection -11.40percentage 26898.39 13741.61 48.91 -25.41 -3.99
services points
Description of main business by sector product region and sales mode:
1. Description of sub-products: The Company's main business consists of products sale and projection
services and the operating income during the reporting period was RMB2.541 billion a year-on-year increase
of 1.72% of which the operating income of light source and optical machine was RMB520.2814 million a
year-on-year increase of 80.14% mainly due to the increase in sales of laser micro-projectors.
2. Description of the situation by region: The Company's export operating income in the reporting period was
RMB420.8749 million a year-on-year increase of 134.23% mainly due to the growth of overseas
e-commerce business and the recovery of sales growth in overseas cinema markets.
3. Description of the sales model: The Company's sales model is divided into product sales and screening
services and product sales are mainly supplemented by direct sales and distribution of which the sales
revenue is RMB0.7795 million down 94.58% year-on-year mainly due to the change of the Company's sales
strategy and conversion of part of the sales business to self-developed business.
(2). Analysis of output and sales volume
√ Applicable □ N/A
% % Change %
Sales
Main products Unit Output Stock Change in in sales Change
volume
output volume in stock
Optical
engine and
Set 628861.00 568696.00 154288.00 19.99 24.48 63.92
complete
equipment
Explanation about output and sales volume
We supplied part of laser light source produced under operating leases used part of laser TV light
generators produced to manufacture laser TV products and used part of laser mini projector light generators for
production laser mini projectors which were not included in the production and sales volume.During the reporting period the Company's production and sales increased year-on-year due to the
increased stocking and inventory of micro-projectors in peak season and the inventory increased by 63.92%
year-on-year.
(3). Performance of significant procurement contracts and significant sales contracts
□ Applicable √ N/A
29 /245Annual Report 2022
(4). Analysis of costs
In RMB 0’000
Costs by industry
Amount Ratio in total Ratio in total %
Amount of
Components for the costs for the costs for the Change Situation
Industry the prior
of cost current current prior period in Description
period
period period (%) (%) amount
Laser
171173.28100.00165108.96100.003.67
display
Costs byproduct
Amount Ratio in total Ratio in total %
Amount of
Components for the costs for the costs for the Change Situation
Product the prior
of cost current current prior period in Description
period
period period (%) (%) amount
Direct
141494.0590.12134461.7389.895.23
materials
Direct labor 4866.31 3.10 4054.86 2.71 20.01
1. Sales
Indirect
10648.686.7811072.437.40-3.83
expenses
Subtotal 157009.04 100.00 149589.02 100.00 4.96
Depreciation
8522.2062.027665.6153.5611.17
of light source
Software
2.Cinema 1048.06 7.63 1439.08 10.05 -27.17
license fee
projection
Technical
business 3565.57 25.95 4434.46 30.98 -19.59
service fee
Labor cost 605.78 4.41 773.73 5.41 -21.71
Subtotal 13741.61 100.00 14312.88 100.00 -3.99
3.Other
422.63100.001207.06100.00-64.99
business
Total 171173.28 100.00 165108.96 100.00 3.67
Explanation about cost analysis
1. Sales costs mainly comprise direct materials direct labor and indirect expenses of which the costs of
direct materials account for 90.12%.
2. For the leasing service business variable cost items such as technical service fees software usage fees
and labor costs decreased year-on-year mainly due to the decrease in theater screening time; the depreciation
of the light source is calculated adopting the average life method whether it is used or not and the increase in
the current period is mainly caused by the increase in assets.
(5). Change in the scope of consolidation due to changes in equity interests held in major subsidiaries
during the reporting period
√ Applicable □ N/A
Increased consolidation scope:
The day on Amount
Percentage
which the of capital
Company name Acquisition of shares of capital
equity was contribut
contribution
acquired ion
Business combinations
Weiwoqi Trading Co.Ltd that are not under 2022.06.15 33.31%
common control
Hongkong Orange Juice Energy
Found 2022.03.15 33.31%
Technology Co. Limited
Wemax INC Found 2022.03.19 33.31%
Yaoyouguang (Chongqing) Technology Co.Found 2022.10.28 39.19%
Ltd.Appotronics International Limited Found 2022.04.26 100.00%
Appotronics Intelligent Manufacturing
Found 2022.08.17 100.00%
(Shenzhen) Co. Ltd.
30 /245Annual Report 2022
(6). Significant changes in or adjustments to the businesses products or services of the Company
during the reporting period
□ Applicable √ N/A
(7). Main customers and main suppliers
A. The Company’s major customers of the sales
√ Applicable □ N/A
The sales to top 5 customers were RMB 1003.4696 million representing 39.49% of the total annual
sales of which the sales to related parties were RMB 487.4308 million representing 19.18% of the total
annual sales.Top 5 customers
√ Applicable □ N/A
In RMB 0’000
Related to the listed
No. Customer Sales % of total annual sales
company or not
1 Customer 1 39314.98 15.47 Yes
2 Customer 2 19274.84 7.59 No
3 Customer 3 18344.38 7.22 No
4 Customer 4 18175.59 7.15 No
5 Customer 5 5237.17 2.06 No
Total - 100346.96 39.49 /
Description of sales to a single customer accounting for over 50% of the total sales value new
customer in the top 5 customers or serious dependance on a small number of customers during the
reporting period
√ Applicable □ N/A
Customer 5 is the top five new customers
B. Information on major suppliers of the Company
√ Applicable □ N/A
The procurement amount of the top five suppliers was RMB792.8062 million accounting for 36.98% of
the total annual procurement; among the top five suppliers the purchase amount of related parties was
RMB146.6225 million accounting for 6.84% of the total annual procurement.Top 5 suppliers
√ Applicable □ N/A
In RMB 0’000
Procurement % of total annual Related to the listed
No. Supplier
cost purchase cost company or not
1 Supplier 1 22386.91 10.44 No
2 Supplier 2 19123.39 8.92 No
3 Supplier 3 17129.12 7.99 No
4 Supplier 4 14662.25 6.84 Yes
5 Supplier 5 5978.95 2.79 No
Total / 79280.62 36.98 /
Description of purchase from a single supplier accounting for over 50% of the total sales value new
supplier in the top 5 suppliers or serious dependance on a small number of suppliers during the
reporting period
□ Applicable √ N/A
31 /245Annual Report 2022
3. Expenses
√ Applicable □ N/A
Unit: In RMB
Item Amount of the current period Amount of the prior period % Change
Selling expenses 334758958.86 252854103.31 32.39
Administrative expenses 193554776.41 187933417.27 2.99
R&D expenses 262108405.90 236702224.29 10.73
Financial expenses -9162605.79 1300380.36 -804.61
(1) In 2022 the sales expenses accumulated to RMB334.7590 million an increase of 32.39% year-on-year
mainly due to the Company’s increased investment in its own brands year-on-year increased marketing
expenses and increase in sales staff compensation;
(2) The cumulative financial expenses incurred in 2022 were -RMB9.1626 million a year-on-year decrease of
RMB10.463 million mainly due to exchange gains caused by exchange rate changes.
4. Cash flow
√ Applicable □ N/A
Unit: In RMB
Amount of the Amount of the prior
Item % Change
current period period
Net cash flow from operating activities 177350715.69 58337226.84 204.01
Net cash flows from investment activities 47917226.22 -444906406.98 N/A
Net cash flows from financing activities 116013055.06 295570009.05 -60.75
Reasons for the change in net cash flow from operating activities: Net cash flow from operating activities
was RMB177.3507 million an increase of RMB119.0135 million over the same period of the previous year
mainly due to the increase in sales collection and the decrease in purchase payments caused by the
optimization of the account period;
Reasons for the change in net cash flow from investment activities: net cash flow from investment
activities was RMB47.9172 million an increase of RMB492.8236 million over the same period of the
previous year mainly due to the decrease in the structured wealth management purchased in the current
period compared with the same period of the previous year and the disposal of the equity recovery investment
funds of the shareholding company Cinionic in the current period;
Reasons for the change in net cash flow from financing activities: Net cash flow from financing activities
was RMB116.0131 million a decrease of RMB179.557 million from the same period of the previous year
mainly due to the introduction of strategic investment by the Company's subsidiaries in the same period of the
previous year.(II) Explanation about material change in profit due to non-main business
□ Applicable √ N/
(III) Analysis of assets and liabilities
√ Applicable □ N/A
1. Status of assets and liabilities
In RMB
% of total
% of total
assets at Balance as at %Chang
Balance at the end Assetsas at
Item the end of December 31 e in Explanation
of the period December
the 2021 amount
312021
period
Primarily due to the
Monetary 957729831.1 increase in receivables
1355882208.6331.2923.3841.57
capital 5 and bank borrowings in
the current period
Primarily due to the
Notes collection of notes
2234687.770.055256603.030.13-57.49
receivable receivable at maturity in
the current period
Accounts 403134471.8 Primarily due to an
208260235.794.819.84-48.34
receivable 7 increase in recover ables
32 /245Annual Report 2022
for the current period
Primarily due to the
Receivables
4279041.00 0.10 244860.00 0.01 1647.55 collection of matured
financing
bank acceptance bills
Primarily due to the
decrease in procurement
requirements in the
Prepayments 48445976.86 1.12 98116970.83 2.39 -50.62 current period and the
corresponding decrease in
advance payments
Primarily due to the
collection of customer
Contract
1061581.35 0.02 3903859.23 0.10 -72.81 payments in the current
assets
period
Non-current Primarily due to the
assets due Reclassificatio of
13431554.820.313473049.180.08286.74
within one long-term receivables due
year within one year
Primarily due to the
Other current
106502611.79 2.46 52761820.83 1.29 101.86 increase in the input VAT
assets
to be deducted
Primarily due to the
Long-term
increase in the Company's
accounts 11524193.80 0.27 5793552.74 0.14 98.91
installment collection
receivable
business
Primarily due to the
Long-term disposal of the equity
293601085.2
equity 162394917.57 3.75 7.17 -44.69 interest in Cinionic a
7
investment shareholding company in
the current period
Primarily due to the
increase in the investment
for the construction in
Construction 148620511.3
278978057.73 6.44 3.63 87.71 progress of the
in progress 5
headquarters building
during the reporting
period
Primarily due to the
Right-of-use impact of implementing
62255670.291.4426803910.760.65132.26
assets the New
Lease Standard
Primarily due to the
Long-term
amortization of expenses
prepaid 5990984.03 0.14 10126164.82 0.25 -40.84
such as renovation of the
expenses
Company
Primarily due to the new
bank borrowings and
Short-term intra-group bankers'
129589634.032.995570878.110.142226.20
borrowings acceptance bill
discounting in the current
period
Primarily due to the
increase in the proportion
134378967.6
Notes payable 201299388.57 4.65 3.28 49.80 of bankers' acceptances
issued during the period
to pay the price due
Primarily due to a
decrease in purchases in
Accounts 419966567.2
276845321.28 6.39 10.25 -34.08 the current period and an
payable 7
increase in bankers'
acceptances payable
Primarily due to the
Taxes payable 8272768.90 0.19 19546190.23 0.48 -57.68 decrease in the amount of
corporate income tax
33 /245Annual Report 2022
payable accrued
Other Primarily due to the
current 28383608.37 0.66 19561104.12 0.48 45.10 increase in rebates
liabilities payable for the period
Primarily due to the
Leasing
34319284.23 0.79 10789352.69 0.26 218.08 impact of implementing
liabilities
the New Lease Standard
Primarily due to the
Estimated increase in the cost of
56463882.871.3036428688.940.8955.00
liabilities three guarantees accrued
in the current period
Other information
None
2. Overseas assets
√ Applicable □ N/A
(1) Size of assets
The overseas assets were RMB 560.6319 million representing 12.94% of the total assets.
(2) Explanation about the high proportion of overseas assets
□ Applicable √ N/A
3. Encumbrances on assets as of the end of the reporting period
√ Applicable □ N/A
Unit: In RMB
Carrying value at the end of the
Item Reasons for limitation period
Other monetary funds 60141839.19 Cash deposit
Bank deposits 40000000.00 Fixed term deposit
Bank deposits 1111250.50 Accounts with restricted payments
Bank deposits 46710.53 Accrue of interest
Bank deposits 5.29 Accounts not handling for a long time
Intangible assets 281035499.82 Mortgage guarantee
Total 382335305.33
34 /245Annual Report 2022
4. Other information
□ Applicable √ N/A
(IV) Analysis of operation information of the industry
√ Applicable □ N/A
For details of the analysis of industry operating information during the reporting period please refer to
(II) Main business business model industry situation and research and development situation of the
Company during the reporting period of Section Ⅲ Discussion and Analysis of the Management.
35 /245Annual Report 2022
(V) Analysis of investments
Overall analysis of external equity investments
√ Applicable □ N/A
In RMB
Investment in the reporting period (in RMB) Investment in the same period of last year (in RMB) Range of change
162394917.57293601085.27-44.69%
Note: The main reasons for the changes during the reporting period are described in (Ⅴ) (Ⅵ) of Section III.
1. Material equity investments
□ Applicable √ N/A
2. Material non-equity investments
□ Applicable √ N/A
3. Financial assets at fair value
√ Applicable □ N/A
In RMB
Gain or loss on Impairme
Amount at the Cumulative fair The purchase Sale/redemption
Asset changes in fair nt of the Other Amount at the end
beginning of the value changes amount for the for the current
category value for the current changes of the period
period included in equity current period period
period period
Shares 16200000.00 -3320000.00 12880000.00
Others 408320279.38 -4900000.00 56965819.00 351354460.38
Total 424520279.38 -3320000.00 -4900000.00 56965819.00 364234460.38
Note: Other investments are mainly structured deposits and other equity instruments as detailed in Section Ⅹ and Section XI.Description of securities investment
√Applicable □N/A
36 /245Annual Report 2022
In RMB
Cumulative Purchase Dispo
Carrying value Gain or loss Sale for Carrying
Abbrevia fair value amount sal of
Security Securit Initial Capital at the on changes in the value at the Accounti
tion of changes for the profit
type y code investment cost source beginning of fair value for current end of the ng items
securities included in current and
the period the period period period
equity period loss
Domestic Tradable
Self-own
and foreign 835438 Gabrielle 14000000.00 16200000.00 -3320000.00 12880000.00 financial
ed capital
shares assets
Total - - 14000000.00 - 16200000.00 -3320000.00 12880000.00 -
Private equity investment
□ Applicable √ N/A
Derivatives investment
□ Applicable √ N/A
4. Specific progress of material assets restructuring and integration during the reporting period
□ Applicable √ N/A
(VI) Sale of material assets and equities
□ Applicable √ N/A
To further optimize the Company's asset structure and effectively integrate the Company's resources based on Company’s operation and development during the
reporting period the Company transferred its 20% equity interest in Cinionic Limited to the transferee Barco Visual Electronics Company Limited for $20 million and the
transaction was completed. Upon completion of the transaction the Company will no longer hold equity interest in Cinionic Limited. Due to the difference in conversion
caused by exchange rate fluctuations the Company recognized a gain or loss on disposal of -$704670.16 (equivalent to -RMB4700290.90).(VII) Analysis of major investees
√ Applicable □ N/A
In RMB 0’000
Registered Shareholdin Operating
Company Main business Total assets Net assets Net profit
capital g percentage income
Provision of cinema laser light source lease
CINEAPPO 10000.00 63.20% 85120.11 42873.59 33682.91 1153.46
service and sales of projectors
Formovie
R&D and sale of household display products 7017.54 39.19% 94209.96 -7927.15 115933.32 -14217.05
(Chongqing)
Appotronics HK R&D and sale of laser light source 30116.15 100.00% 48935.32 36605.30 19090.82 -1205.54
37 /245Annual Report 2022
(VIII) Structured entities controlled by the Company
□ Applicable √ N/A
38 /245Annual Report 2022
VI. Discussion and analysis of future development of the Company
(I) Structure and trend of the industry
√ Applicable □ N/A
In terms of the automotive optics business the industry is in the stage from 0 to 1 enjoying a
promising future. According to data from the China Association of Automobile Manufacturers China's
annual sales of new energy vehicles in 2022 will be 6.887 million units a year-on-year increase of 93.4%
maintaining the world's first place for eight consecutive years.With the acceleration of vehicle electrification intelligent process and the upgrading and strengthening
of user experience new requirements are put forward for vehicle displays stimulating innovative applications
of laser projection displays in vehicle displays. Potential application scenarios include roof screens
transparent window displays rollable large screen projection AR-HUD smart surface display smart lights
etc. and the market size is expected to exceed RMB100 billion.In terms of cinema projection service business the industry has gone through a difficult time and
is expected to embrace a promising future. In 2022 the domestic film market was seriously impacted due
to force majeure and 40% of cinemas were closed for nearly 100 days and film projection was stopped then.According to the public information of the National Film Administration the total box office of China's film
market in 2022 was RMB30.067 billion a year-on-year decrease of 36% and the national cinema industry is
under great pressure.Due to multiple favorable factors such as the optimization and adjustment of prevention and control
policies the gradual recovery of offline entertainment consumption and the continuous release of
high-quality films it is expected that the national film projection market will start to develop in 2023 and the
upgrading of cinemas will be improved accelerating the pace of industry recovery.In terms of professional display business the market is gradually recovering. The engineering
market industry is becoming more and more concentrated the cultural tourism in various provinces has
resumed its construction and the digitization of visits in various places remains the focus of promoting
market recovery. It is predicted that the average annual compound growth rate of the laser projection
engineering market in 2022~2025 will be 14.6% (data source: AVC Revo).With the obvious recovery trend of offline consumption business market demand is expected to recover
as well and the average annual compound growth rate of the laser projection business market in 2022~2025
will be 17.6% (data source: AVC Revo). In terms of the education market under the background of domestic
film procurement although domestic head brands have development opportunities they are still facing
long-term growth pressure and the average annual compound growth rate of the laser projection education
market in 2022~2025 will be 2.4% (data source: AVC Revo).In terms of smart projection business mass consumption investment is more cautiously conducted
and high-cost performance will be one of the main themes of market growth in 2023. In 2023 mass
consumption investment will be more cautiously conducted. When choosing products consumers may use a
more positive attitude than ever to compare prices judge trends from a more professional perspective and
confirm their needs more rationally so the high-cost performance of products will be one of the main themes
of market growth in 2023. At the same time there will still be an influx of new brands into the projection
track in 2023 causing the competition between projection brands to intensify which requires major projection
manufacturers to improve their core competitive advantages and actively compete for market share in the
fierce market competition. In 2022 China's smart projection market sales will increase by 28.6% year-on-year
and at the same time it is predicted that China's smart projection market sales will increase by 19%
year-on-year in 2023 and the growth rate of this market will gradually slow down from a high-speed growth
state (Source: RUNTO).Compared fierce competition between major entities in China the overseas projection market is still
dominated by traditional projection the intelligent projection market is still at the early stage of development
and the penetration rate of intelligent micro-projection products is not as good as that of China. In 2022
China exported 9.382 million projectors with an export value of RMB12.35 billion (data source: the General
Administration of Customs). With the gradual improvement of overseas consumers' awareness of smart mini
projectors the overseas smart projection market is expected to further expand.
39/ 245Annual Report 2022
(II) Development strategy of the Company
√ Applicable □ N/A
In the future the Company plans to drive the display industry with the mission and vision of "New light
New life" and the development strategy of "core technologies+ core devices+ application scenarios" and
continues to promote the breakthrough and innovation of laser display technology accelerate the development
of application scenarios and promote the deep industrialization of laser display technology aiming to expand
and strengthen the laser display industry ecology.(III) Business plan
√ Applicable □ N/A
In 2023 the Company will continue to adhere to the development strategy of "core technologies+ core
devices+ application scenarios" continue to increase R&D investment in growth businesses such as
automotive optics taking the market and customer needs as the guide to realize the combination of customer
needs and technological innovation create a new growth pole of the Company's performance and go all out
to pursue the Company's high-quality growth.In terms of the automotive optics business the Company will continue to develop vehicle display
lighting system and AR-HUD; adhering to the development route of leading customers and the goal of
obtaining more high-quality fixed-point cooperation we will carry out multi-level and all-round cooperation
with excellent domestic and foreign vehicle manufacturers.In terms of cinema projection service business the Company will continue to optimize the brightness
color dynamic range and other aspects of core products give full play to the advantages of product energy
conservation and environmental protection continue to expand the scale of light source upgrading and
transformation business and upgrade customer and equipment maintenance systems to bring customers a
better service experience. With the boost of overseas cinema market demand the Company will give full play
to the core competitiveness of products vigorously carry out overseas light source transformation business
and increase the market share of overseas markets.In terms of professional display business the Company continues to strengthen the arrangement of laser
highlighting products increase the arrangement in lighting cultural tourism large-scale venue performing
arts market etc. as well as accelerate the transformation of education business to higher vocational education
and actively develop the overseas professional display market to further expand the coverage of overseas
markets.In terms of intelligent projection the Company will strengthen the core technology competitiveness
through technology iteration and product power improvement accelerate the overseas arrangement while
deeply cultivating the domestic projection market and jointly expand and strengthen the laser display
industry. The subsidiary Formovie Technology will deepen the cost-effective product route enrich the
categories of its own brand intelligent projection products and continue to focus on the construction of its
own brand.In terms of other innovative businesses the Company increases its core competitive advantages deepens
the strategic arrangement of cutting-edge application fields and accelerates the commercialization of
innovative technologies such as AR optics and ALPD5.0 laser display technology with display products.(IV) Others
□ Applicable √ N/A
VII. Information not disclosed according to the standard due to inapplicability of the standard
involving State secrets or trade secrets or other reasons and explanation about the relevant
reasons
□ Applicable √ N/A
40/ 245Annual Report 2022
Section IV Corporate Governance
I. Corporate governance
√ Applicable □ N/A
During the reporting period in accordance with the requirements of laws and regulations such as the
Company Law the Securities Law the Rules for the Listing of Stocks on the Science and Technology
Innovation Board of the Shanghai Stock Exchange the Self-Regulatory Guidelines for Listed Companies on
the Science and Technology Innovation Board of the Shanghai Stock Exchange and the Articles of Association
and in combination with the actual operating conditions of the Company the Company continuously
improved the corporate governance structure continued to improve the Company's internal governance and
control system and the Company's standard operation level and governance level. During the reporting period
the actual status of corporate governance met the requirements of the relevant regulatory documents on the
governance of listed companies.(Ⅰ) About the Company and its controlling shareholders
During the reporting period the controlling shareholders and actual controllers of the Company regulated
their own behavior exercised their shareholder rights and fulfilled their obligations in strict accordance with
the Governance Guidelines for Listed Companies the Rules for the Listing of Stocks on the Science and
Technology Innovation Board of the Shanghai Stock Exchange and the Self-Regulatory Guidelines for Listed
Companies on the Science and Technology Innovation Board of the Shanghai Stock Exchange. The
Company's major decisions are subject to the corresponding approval procedures in accordance with the
Articles of Association etc. and the controlling shareholders and actual controllers have no right to directly or
indirectly interfere in the Company's decision-making and business activities beyond the shareholders' general
meeting. In the Company controlling shareholder cannot occupy the Company's funds or provide guarantees
for other controlling shareholders; the Company has an independent and complete business system and
independent operation ability.（II）Shareholders and the General Meeting of Shareholders
The General Meeting of Shareholders is the highest authority of the Company. During the reporting
period the Company held a total of 4 general meetings of shareholders; the convening convening voting
information disclosure etc. of the shareholders' general meeting are strictly carried out in accordance with
provisions and requirements of relevant laws and regulations normative documents and Company rules and
regulations such as the Company Law the Articles of Association and the Rules of Procedure of the General
Meeting of Shareholders and the content of the resolution is legal and valid and the witness lawyer shall
witness the scene and issue a legal opinion. The Company treats all shareholders equally allows more
shareholders to participate in the shareholders' meeting through legal and effective methods such as on-site
and online fully protects the equal rights of all shareholders especially small and medium-sized shareholders
ensuring that each shareholder has the right to know and participate in the Company's affairs in accordance
with the law and fully exercise the right to vote.（III）Directors and the Board of Directors
The Board of Directors is the permanent decision-making and management body of the Company.During the reporting period the Company held a total of 11 meetings of the Board of Directors; the
convocation and convening of the Board of Directors are legal and compliant and the Company strictly
complies with provisions and requirements of relevant laws and regulations normative documents and
Company rules and regulations such as the Articles of Association and the Rules of Procedure of the Board of
Directors. The second Board of Directors of the Company has 7 directors including 3 independent directors
and the composition of the Board of Directors and the qualifications of the Board of Directors meet the
requirements of laws and regulations and all of them have the professional knowledge skills and quality
necessary for directors. All directors carry out their work in accordance with regulations and requirements
attend the Board of Directors special committees and shareholders' meetings on time perform their duties
and obligations diligently and conscientiously and actively safeguard the overall interests of the Company
and shareholders; at the same time they can actively participate in relevant training and be familiar with
relevant laws and regulations.The Board of Directors has four special committees: Audit Committee Remuneration and Assessment
Committee Strategy Committee and Nomination Committee whose personnel composition and qualifications
meet the requirements of laws and regulations and the Articles of Association and the members of the
Committee are diligent and conscientious to provide full protection for the Board of Directors to make
scientific decisions on the Company.（IV）Supervisors and the Board of Supervisor
41 / 245Annual Report 2022
The Board of Supervisors is the supervisory body of the Company. During the reporting period the
Company held a total of 11 supervisory meetings; the convocation and convening of the Board of Supervisors
are legally compliant and the Company strictly complies with the relevant laws and regulations normative
documents and provisions and requirements of the Company's rules and regulations such as the Articles of
Association and the Rules of Procedure of the Board of Supervisors. The second Board of Supervisors of the
Company is composed of 3 supervisors including 1 employee representative supervisor the composition of
the Board of Supervisors and the qualifications of the members of the Board of Supervisors meet the
requirements of laws and regulations and they all have professional knowledge and work experience. All
supervisors can independently and effectively perform their duties of supervising and inspecting major
matters and financial status of the Company as well as directors and senior management and actively
safeguard the legitimate rights and interests of the Company and all shareholders.（V）Information disclosure and investor relations management
During the reporting period the Company further improved the information disclosure management in
accordance with relevant laws and regulations the Information Disclosure Management System and Investor
Relations Management System and other relevant requirements the Company's disclosed information is true
accurate complete timely and fair the disclosure content is concise and easy to understand and fully reveals
risks to facilitates all shareholders to consult. The designated website for the Company's information
disclosure is the Shanghai Stock Exchange website (www.sse.com.cn) and the designated newspapers for
information disclosure are China Securities News Shanghai Securities News Securities Daily and Securities
Times to ensure that the shareholders of the Company can obtain the Company's information fairly.The Company attaches importance to investor relations management enables investors to learn about the
Company's operation through field research investor hotline (0755-32950536) investor email
(IR@appotronics.cn) online performance briefing Shanghai Stock Exchange "E Interactive" platform and
WeChat public account (Appotronics) and other channels to ensure active communication with investors to
protect investors' right to know and participate effectively safeguard the legitimate rights and interests of
investors especially small and medium-sized investors and improve the smooth information exchange
between investors and the Company.（VI）Registration of insiders
During the reporting period in accordance with laws and regulations and the relevant requirements of
the Insider Information Management System on insider management the Company registered and filed
relevant personnel involved in insider information in the regular reporting repurchase of shares and other
relevant major events; during the trading window period the Company reminded the Company's directors
supervisors senior management core technical personnel and other information insiders. At the same time
the Company's directors supervisors senior management and related personnel have continuously
strengthened the publicity and study of laws and regulations related to the prevention and control of insider
trading strengthened the awareness of confidentiality and no cases of information insiders illegally using
insider information to buy and sell the Company's stocks have been found.Is there major deviation in the corporate governance from laws administrative regulations and the
regulations of CSRC on the governance of listed companies; if yes specify the reasons.□ Applicable √ N/A
II. Give an explanation if the Company cannot guarantee its independence and ability to operate
independently due to its relationship with the controlling shareholder in business personnel assets
organization financial and other affairs.□ Applicable √ N/A
Information about the business identical or similar to that of the Company operated by the controlling
shareholder actual controller and other units under their control impact of horizontal competition or
major changes in horizontal competition on the Company measures that have been taken solution
progress and subsequent solution plans.□ Applicable √ N/A
Information about horizontal competition operated by the controlling shareholder actual controller and
other units under their control causing material adverse effects to the Company.□ Applicable √ N/A
42 / 245Annual Report 2022
III. General meetings of shareholders held
Reference to
Resolutions published
Session Date of meeting Date of disclosure Resolution
on the designated
of resolutions
website
1st extraordinary
general meeting of March 292022 www.sse.com.cn March 302022
shareholders in 2022
2nd extraordinary
general meeting of April 222022 www.sse.com.cn April 232022
All proposals
shareholders in 2022
are reviewed
Annual general and passed.meeting of May 252022 www.sse.com.cn May 262022
shareholders in 2021
3rd extraordinary September
general meeting of www.sse.com.cn September 72022 62022
shareholders in 2022
Extraordinary general meetings convened at the request of preferred shareholders with resumed voting rights
□ Applicable √ N/A
Explanation about the general meetings of shareholders
□ Applicable √ N/A
IV. Implementation of and changes in arrangements of differentiated voting rights during the
reporting period
□ Applicable √ N/A
V. Governance of red-chip structure companies
□ Applicable √ N/A
43 / 245Annual Report 2022
VI. Directors supervisors and senior officers
(I) Changes in shareholding and remunerations of current directors supervisors senior officers and key technical staff and the former directors supervisors
senior officers and key technical staff who left the Company during the reporting period
√ Applicable □ N/A
Unit: Share
Total
Remuneration
Number of Number of Whether or not
(inclusive of tax)
Beginning shares held shares held receive any
Gende Expiry date of Change in Cause of received from
Name Title (Note) Age date of term as at as at remuneration
r term of office shareholding change the Company
of office January December from any affiliate
during the
1 2021 31 2021 of the Company
reporting period
(in RMB 0’000)
Chairman July 18 2018
General August
LI Yi Male 52 December 31 2021 0 0 - - 308.77 No
Manager 22024
key technical staff -
YU August
Director Male 62 March 29 2022 0 0 - - 10.86 No
Zhuoping 2 2024
August
Director
ZHANG 32021 August
Male 47 0 0 - - 225.83 No
Wei Deputy December 31 2 2024
Genera Manager 2021
NING August
Independent director Male 57 July 18 2018 0 0 - - 18 No
Xiangdong 22024
TANG August
Independent director Male 60 July 18 2018 0 0 - - 18 No
Guliang 22024
CHEN August 3 August
Independent director Male 46 0 0 - - 18 No
Youchun 2021 22024
Director on behalf of
July 15 2021
WANG the staff and workers August Equity
Female 41 6000 78124 72124 77.07 No
Yingxia Financial August 22024 incentives
Director 32021
Chairperson
GAO August
of the Board of Female 42 July 18 2018 0 0 - - 71.59 No
Lijing 22024
Supervisors
SUN August August
Supervisor Male 41 3000 3000 - - 68 No
Hongdeng 32021 22024
44 / 245Annual Report 2022
WANG Director on behalf of August
Female 46 July 18 2018 0 0 - - 42.35 No
Yanyun the staff and workers 22024
Chen Board August Equity
Female 32 April 292022 0 18750 18750 30.98 No
Yasha Secretary 22024 incentives
Equity
HU Fei Key technical staff Male 42 - - 30000 190316 160316 137.71 No
incentives
Equity
YU Xin Key technical staff Male 42 - - 15000 103752 88752 134.15 No
incentives
Equity
WANG Lin Key technical staff Male 41 - - 13000 101752 88752 84.95 No
incentives
WANG Equity
Key technical staff Male 45 August 23，2021 - 0 90752 90752 89.32 No
Zeqin incentives
GUO Equity
Key technical staff Male 32 - - 0 76052 76052 69.45 No
Zuqiang incentives
BO Director
Male 60 July 18 2018 March 11 2022 30000 30000 - - - No
Lianming (retired)
Deputy
LIANG
General Male 43 December 31 2021 July 12022 0 0 - - 110.62 No
Guanning
Manager(retired)
Board
YAN Li Female 39 May 19 2020 April 292022 15000 15000 - - 19.79 No
Secretary(retired)
Total - - - - - 112000 707498 595498 - 1535.43 /
Note:
(1) As of the end of the reporting period LI Yi indirectly holds the Company's shares through Shenzhen Appotronics Holdings Limited Shenzhen Yuanshi Laser Industrial Investment
Consulting Partnership (LP) Shenzhen Appotronics Daye Investment Partnership (LP) Shenzhen Appotronics Hongye Investment Partnership (LP) Shenzhen Jinleijing Investment Limited
Partnership(LP) and Shenzhen Appotronics Chengye Consulting Partnership(LP); WANG Yingxia GAO Lijing WANG Yanyun HU Fei YU Xin GUO Zuqiang WANG Lin etc.indirectly hold the Company's shares through the shareholding platforms Shenzhen Appotronics Hongye Investment Partnership (LP) and Shenzhen Appotronics Daye Investment Partnership
(LP); YU Xin and GUO Zuqiang indirectly hold the Company's shares through the shareholding platform Shenzhen Appotronics Daye Investment Partnership (LP); WANG Lin indirectly
holds Company's shares through the shareholding platform Shenzhen Appotronics Hongye Investment Partnership (LP). The aforesaid indirect shareholding has not changed during the
reporting period;
(2) The Company held the eighth meeting of the second session of the Board of Directors on March 11 2022 and March 29 2022 and the first extraordinary General Meeting of Shareholders
in 2022 respectively and elected Mr. YU Zhuoping as the director of the second Board of Directors of the Company and the above disclosed remuneration is his total pre-tax remuneration
obtained from the Company from May 2022 to the end of the reporting period;
The Company held the 12th meeting of the second session of the Board of Directors on April 29 2022 and appointed Ms. CHEN Yasha as the secretary of the second session of the
Board of Directors of the Company and the above disclosed remuneration was her total amount of pre-tax remuneration received from the Company from April 2022 to the end of the
reporting period.
(3) Mr. LIANG Guanning the former deputy general manager of the Company resigned from the position of Deputy General Manager of the Company on July 1 2022 due to personal
reasons and the above disclosed remuneration is his total pre-tax remuneration received from the Company from January 1 2022 to June 30 2022; Ms. YAN Li the former secretary of the
Board of Directors of the Company resigned as the secretary of the Board of Directors of the Company on April 29 2022 due to family and physical reasons and the above disclosed
remuneration is the total amount of pre-tax remuneration received by her from the Company from January 1 2022 to April 29 2022.
45 / 245Annual Report 2022
Name Main work experience
LI Yi male Chinese received a bachelor's degree from Tsinghua University and a master's and doctoral degree from the University of Rochester. He founded the
LI Yi Company in October 2006 and served as the chairman of the Company since December 2010 and won the honors of "2020 Shenzhen Science and Technology
Award Mayor Award" and "2021 Quality Development Leader".YU Zhuoping male born in January 1960 Chinese with no right of permanent residence abroad obtained a bachelor's degree and a master's degree in mechanical
engineering from Tongji University and a doctorate degree in automotive engineering from Tsinghua University. He is currently a professor at Tongji University
director of the National Intelligent New Energy Vehicle Collaborative Innovation Center vice chairman of the Society of Automotive Engineers of China vice
chairman and director of the Expert Committee of China Hydrogen Energy Alliance chairman of Tongji Automobile Design and Research Institute Co. Ltd.YU
chairman of Nanchang Jiling New Energy Technology Co. Ltd. director of Shanghai Motor Vehicle Testing and Certification Technology Research Center Co.Zhuoping
Ltd. director of Beijing Guohydrogen Zhonglian Hydrogen Technology Research Institute Co. Ltd. chairman of Shanghai Intelligent New Energy Vehicle
Technology Innovation Platform Co. Ltd. director of Appotronics Corporation Limited non-executive director of Huazhong In-Vehicle Holdings Co. Ltd.independent director of Weichai Power Co. Ltd. independent director of Huayu Automotive Systems Co. Ltd. independent director of Shanghai Highly (Group)
Co. Ltd. independent director of Ningbo Shenglong Automotive Powertrain System Co. Ltd. and independent director of Jiangling Motors Co. Ltd.ZHANG Wei male born in November 1975 Chinese received a doctorate degree from Indiana University and is a practicing lawyer in the State of New York. He
ZHANG is currently the director and deputy general manager of Appotronics Corporation Limited and has served as the legal director of Legend Holdings Co. Ltd. the
Wei general manager of the legal department of China Vanke Co. Ltd. the vice president of Qifei International Development Co. Ltd. the vice president of Tianjin
Qisi Technology Co. Ltd. and the independent director of Appotronics Corporation Limited.WANG Yingxia female born in September 1982 Chinese with no right of permanent residence abroad got the bachelor degree. She is currently the director and
WANG
financial director of Appotronics Corporation Limited and has successively served as the financial director and financial manager of YLX Incorporated and the
Yingxia
deputy director of the finance department of Appotronics Corporation Limited.NING Xiangdong male born in May 1965 Chinese with no right of permanent residence abroad got the Ph.D. of Tsinghua University. He is currently a professor and
doctoral supervisor of the School of Economics and Management of Tsinghua University and an independent director of Appotronics Corporation Limited an independent
NING director of Sinopec Marketing Co. Ltd. an independent director of Sinochem Energy Co. Ltd. an independent director of MH Robot＆Automation Co. Ltd. an
Xiangdong independent director of Xiamen Bank Co. Ltd. an external director of Shandong Heavy Industry Group Co. Ltd. a supervisor of Beijing Xiaoheiban Edu＆Tech Co. Ltd.and a former teaching assistant lecturer and associate professor of Tsinghua University executive deputy director of China Center for Economic Research Tsinghua
University.TANG Guliang male born in August 1962 Chinese with no right of permanent residence abroad received a doctorate degree from the Institute of Fiscal Science Ministry
of Finance. He is currently a professor and doctoral supervisor of the International Business School of the University of International Business and Economics an
TANG independent director of Appotronics Corporation Limited an independent director of Shanghai Fosun Pharmaceutical (Group) Co. Ltd. an independent director of
Guliang Jointown Pharmaceutical Group Co. Ltd. an independent director of Chongqing Changan Automobile Co. Ltd. an independent director of Jic Leasing Co. Ltd. an
independent director of Three Gorges Capital Holdings Co. Ltd. and was the dean and professor of the School of Accountancy of Beijing Technology and Business
University (formerly Beijing Business School).CHEN Youchun male born in April 1976 Chinese with no right of permanent residence abroad obtained a bachelor's degree from Southwest University of Political
Science and Law and Northumbria University in the United Kingdom a master's degree from Wuhan University and a doctorate degree from Southwest University of
CHEN
Political Science and Law. He is currently a partner of Beijing JunZeJun (Shenzhen) Law Firm and an independent director of Appotronics Corporation Limited an
Youchun
independent director of Nuode New Materials Co. Ltd. an independent director of ValueHD Corporation and an independent director of Joy Wing Mau Fruit Technologies
Co. Ltd.GAO GAO Lijing female born in June 1980 Chinese with no right of permanent residence abroad master's degree student at Chinese University of Hong Kong
Lijing obtained legal professional qualification certificate through the national judicial examination. She is currently the chairman of the supervisory board and the deputy
46 / 245Annual Report 2022
general manager of the legal center of Appotronics Corporation Limited and has worked in the South China Intellectual Property Office of Foxconn Technology
Group Co. Ltd. and the Intellectual Property and Legal Affairs Center of Netac Technology Co. Ltd.SUN SUN Hongdeng male born in January 1981 Chinese with no right of permanent residence abroad a Master of Arts from Hong Kong Metropolitan University. He
Hongden is currently a supervisor and director of the audit department of Appotronics Corporation Limited and once worked for Huawei Technologies Co. Ltd.WANG WANG Yanyun female born in April 1977 Chinese with no right of permanent residence abroad obtained a bachelor degree. She is currently a supervisor and
Yanyun deputy director of public affairs of Appotronics Corporation Limited and joined the Company in July 2013.CHEN Yasha female born in January 1990 Chinese no right of permanent residence abroad obtained the master's degree in finance and the qualification
Chen
certificate of board secretary of the science and technology innovation board and the qualification certificate of board secretary of the new third board. She joined
Yasha
the Company's board office in September 2018 and is currently the secretary of the Board of Directors of Appotronics Corporation Limited.HU Fei male born in March 1980 Chinese with no right of permanent residence abroad received bachelor's master's and doctoral degrees from Tsinghua
University and master's degree from Rentslill Institute of Technology. He is currently the core technical personnel and general manager of the product technology
HU Fei research and development center (II) of Appotronics Corporation Limited. successively served as a software engineer of Optical Research Associates the vice
president of research and development of YLX Incorporated and Shenzhen Appotronics Optoelectronic Technology Co. Ltd. and the chief technology officer and
deputy general manager of Appotronics Corporation Limited.YU Xin male born in February 1980 Chinese with no right of permanent residence abroad received a doctorate from Tsinghua University. He is currently the
core technical personnel and vice president of Appotronics Corporation Limited. and has successively served as a senior software engineer at Schlumberger
YU Xin
Technologies Co. Ltd. a senior researcher at Shenzhen Zhongguang Industrial Technology Research Institute a senior researcher at Appotronics Corporation
Limited. a general manager of the Cinema Solutions Business Unit and the general manager of the Innovation Center and Cinema Business Division.WANG Lin male born in September 1981 Chinese with no right of permanent residence abroad obtained a bachelor's degree from the University of Science and
Technology of China a master's degree from Tsinghua University and a doctorate degree from the Polytechnic University of Madrid Spain. He is currently the
WANG Lin core technical personnel of Appotronics Corporation Limited. the deputy general manager of the product technology research and development center (II) and has
successively served as a senior optical engineer of Shanghai Philips Lighting (China) Investment Co. Ltd. and a senior optical researcher of Appotronics
Corporation Limited.WANG Zeqin male born in December 1977 Chinese with no right of permanent residence abroad obtained a bachelor's degree from Jilin University majoring in
WANG optoelectronic technology. He is currently the core technical personnel and the person in charge of the product technology R&D center (Ⅰ) of Appotronics
Zeqin Corporation Limited. successively served as R&D engineer and R&D expert of O-Net Information Technology (Shenzhen) Co. Ltd. researcher of Shenzhen YLX
Incorporated R&D director of R&D center of Appotronics Corporation Limited. person in charge of core device R&D center and complete machine R&D center.GUO Zuqiang male born in April 1990 Chinese with no right of permanent residence abroad received a master's degree from Tsinghua University. He is
GUO
currently the core technical personnel and the person in charge of the core device R&D center of Appotronics Corporation Limited. and has successively served as
Zuqiang
an optical engineer of YLX Incorporated and the R&D manager of Appotronics Corporation Limited.Other information
□ Applicable √ N/A
47 / 245Annual Report 2022
(II) Posts held by current directors supervisors and senior officers and the former directors supervisors and senior officers who left the Company during the
reporting period
1. Posts held at corporate shareholders of the Company
√ Applicable □ N/A
Name Corporate shareholder Posts held at corporate Beginning date Expiry date
shareholder of term of office of term of
office
Shenzhen Appotronics Holdings Limited Director January 2014 -
Shenzhen Appotronics Daye Investment Partnership (LP) Representative of Managing Partner October 2016 -
Shenzhen Appotronics Hongye Investment Partnership (LP) Representative of Managing Partner December 2015 -
LI Yi Shenzhen Jinleijing Investment Limited Partnership (LP) Representative of Managing Partner October 2016 -
Shenzhen Yuanshi Laser Industrial Investment Representative of Managing Partner
June 2016 -
Consulting Partnership (LP)
Shenzhen Appotronics Chengye Consulting Partnership (LP) Representative of Managing Partner July 2017 -
Blackpine Investment Corp. Limited Director September 2018 -
Explanation about the posts None
held at corporate shareholders
of the Company
2. Posts held at other entities
√ Applicable □ N/A
Name Other entity Posts held at other entity Beginning date of Expiry date of
term of office term of office
Shenzhen YLX Technology Development Co. Ltd. Chairman January 2007 -
Shenzhen Guangfeng Optoelectronic Technology Development Co. Ltd Director and General Manager October 2017 -
Shenzhen Appotronics Deye Consulting Partnership (LP) Representative of Managing Partner May 2018 -
Shenzhen Qingda Yifeng Investment Consulting Partnership (LP) Representative of Managing Partner October 2016 -
YLX (HONG KONG) Limited Director June 2008 -
LI Yi
APEX Fund Managed Limited Director November 2013 -
Long Pine Investment Ltd. Director September 2016 -
Atria Light Ltd. Director April 2018 -
Atria Light Hong Kong Limited Director April 2018 -
Longpines Financial Investment Ltd. Director May 2018 -
Tongji University professor 1985 -
National Intelligent New Energy Vehicle Collaborative Innovation
Director 2012 -
YU Zhuoping Center
Tongji Automotive Design and Research Institute Co. Ltd. Director December 2017 -
Shanghai AINEV Innovative Platform Co. Ltd. Director March 2018 -
48 / 245Annual Report 2022
Huazhong In-Vehicle Holdings Co. Ltd. Non-executive Director August 2019 -
Weichai Power Co. Ltd. Independent director July 2020 -
Nanchang Jiling New Energy Technology Co. Ltd. Director August 2020 -
Shanghai Highly (Group) Co. Ltd. Independent director September 2020 -
Ningbo Shenglong Automotive Powertrain System Co. Ltd. Independent director October 2020 -
Beijing Guoqing Zhonglian Hydrogen Energy Technology Research
Director October 2020 -
Institute Co. Ltd.Shanghai Motor Vehicle Inspection Certification & Tech Innovation
Director April 2021 -
Center Co. Ltd.Huayu Automotive Systems Co. Ltd. Independent director July 2021 -
Jiangling Motors Corporation Limited Independent director October 2021 -
GDC Technology Limited Director November 2022 -
AVIC Vanke Co. Ltd. Director January 2018 -
Hengqin Vanke Cloudland Commercial Services Co. Ltd. Director & General Manager May 2017 -
Lijiang Banyan Tree International Travel Agency Co. Ltd. Director March 2018 -
Lijiang Banyan Tree Property Services Co. Ltd. Director May 2018 -
ZHANG Wei Lijiang Angsana Real Estate Development Co. Ltd. Director July 2018 -
Yangshuo Banyan Tree Hotel Co. Ltd. Director September 2018 -
Huangshan Banyan Tree Property Management Co. Ltd. Director September 2018 -
Huangshan Banyan Tree Tourism Development Co. Ltd. Director September 2018 -
Zhenro Services Group Co. Ltd. Director June 2020 -
Hangzhou Qifei Huachuang Technology Co. Ltd. Director January 2021 -
WANG Yingxia Shenzhen Tiwu Technology Co. Ltd Supervisor January 2018 -
Tsinghua University Professor & Doctoral Tutor 1990 -
Sinopec Sales Co. Ltd. Independent director December 2018 -
Shandong Heavy Industry Group Co. Ltd. External director December 2019 -
NING
Xiamen Bank Co. Ltd. Independent director October 2017 -
Xiangdong
Sinochem Energy Co. Ltd. Independent director August 2018 -
Beijing Shengge Education Technology Co. Ltd Supervisor January 2021 -
MH Robot & Automation Co. Ltd. Independent director December 2022 -
University of International Business and Economics Professor & Doctoral Tutor March 2006 -
China JIC Leasing Co. Ltd. Independent director April 2017 -
Shanghai Fosun Pharmaceutical (Group) Co. Ltd. Independent director December 2019 -
TANG Guliang
Three Gorges Capital Holdings Co. Ltd. Independent director July 2019 -
Jointown Pharmaceutical Group Co. Ltd. Independent director November 2020 -
Chongqing Chang'an Automobile Co. Ltd Independent director June 2022 -
CHEN Youchun Beijing Junzejun (Shenzhen) Law Firm Partner July 2004 -
49 / 245Annual Report 2022
Nord New Materials Co. Ltd Independent director February 2018 -
Shenzhen Weihai De Technology Co. Ltd Independent director July 2020 -
Xinrongmao Fruit Industry Technology Group Co. Ltd Independent director October 2019 -
Explanation
about the posts
None
held at other
entities
(III) Remunerations of directors supervisors senior officers and key technical staff
√ Applicable □ N/A
In RMB 0’000
According to the Articles of Association the remuneration of directors is submitted to the
Board of Directors and the General Meeting of Shareholders respectively after deliberation by the
Decision-making procedure regarding the remunerations of remuneration and evaluation committee of the Board of Directors the remuneration matters of
directors supervisors and senior officers supervisors are deliberated by the Board of Supervisors and submitted to the General Meeting of
Shareholders for deliberation and the remuneration matters of executives are submitted to the Board
of Directors for deliberation after deliberation by the remuneration and evaluation committee.For directors supervisors and senior management who receive remuneration in the Company
their remuneration shall be determined in accordance with the relevant provisions of the Articles of
Association and other relevant provisions taking into account the market industry level and personal
ability and the degree of contribution to the Company; non-independent directors who do not
receive remuneration in the Company receive directors' allowances in accordance with the
Basis for determining the remunerations of directors
remuneration package approved by the general meeting; independent directors receive independent
supervisors and senior officers
director allowance in accordance with the remuneration package approved by the General Meeting of
Shareholders.The Board of Directors of the Company has established a Remuneration and Appraisal
Committee which is responsible for evaluating the performance of the Company's directors and
senior management as well as formulating and reviewing remuneration policies and plans.Remunerations actually paid to directorssupervisors and During the reporting period the remunerations actually paid to directors supervisors and senior
senior officers officers are consistent with the relevant information disclosed by the Company.Total remunerations paid to directors supervisors and senior
1535.43
officers as of the end of the reporting period
Total remunerations paid to key technical staff as of the end of
824.35
the reporting period
Note: Dr. LI Yi Chairman of the Company General Manager of the Company are key technical staff of the Company and the remunerations actually paid to key
technical staff as of the end of the reporting period contain their remunerations.
50 / 245Annual Report 2022
(IV) Changes in directors supervisors senior officers and key technical staff
√ Applicable □ N/A
Name Position Change Cause of change
After the deliberation and approval of the Company’s eighth meeting of the second Board of Directors and the first
YU
Director Elected extraordinary General Meeting of Shareholders in 2022 Mr. YU Zhuoping was elected as a director of the second
Zhuoping
Board of Directors of the Company.Secretary of the After the deliberation and approval of the Company’s 12th meeting of the second Board of Directors Ms.CHEN
Chen Yasha Recruited
Board of Directors Yasha was appointed as the secretary of the second Board of Directors of the Company.BO Left the Resigned as a director of the second term of the Board and a member of the Strategy Committee of the second term of
Director
Lianming Company the Board of Directors due to personal health matters.LIANG Deputy General Left the
Resigned as the deputy general manager of the Company due to personal reasons.Guanning Manager Company
Secretary of the Left the
YAN Li Resigned as the secretary of the Company’s second Board of Directors due to personal family and physical reasons.Board of Directors Company
(V) Penalties imposed by the securities regulatory authorities in the past three years
□ Applicable √ N/A
(VI) Others
□ Applicable √ N/A
VII. Board meetings held during the reporting period
Session Date of meeting Resolution
The meeting deliberated and approved 6 proposals including Proposal on Electing Mr. YU Zhuoping as a
8th meeting of the second
March 112022 Non-Independent Director of the Company and the Proposal on the Estimated Comprehensive Credit Line and Guarantee
Board of Directors
Line of the Company and its Subsidiaries in 2022.The meeting deliberated and approved 2 proposals including Proposal on the Extension of Some Fundraising and
9th meeting of the secon
March 182022 Investment Projects and the Proposal on the Plan of Repurchasing the Company's Shares by Centralized Bidding
d Board of Directors
Transaction.
10th meeting of the seco The meeting deliberated and approved 3 proposals including the Proposal on the Company's Shareholder Return Plan for
April 62022
nd Board of Directors the Next Three Years (2022-2024) and the Proposal on the New Special Account for Over-raised Funds.
11th meeting of the seco The meeting deliberated and approved 17 proposals including the Proposals on the Company's  and the Proposal on the Company's .
12th meeting of the seco April 292022 The meeting deliberated and approved 4 proposals including the Proposal on the Company's  and Summary Thereof and the Proposal on the Company's .
13th meeting of the seco
May 252022 The meeting deliberated and approved the Proposal on the Initial Grant of Restricted Shares to Incentive Recipients.nd Board of Directors
The meeting deliberated and approved 5 proposals including the Proposal on the Use of Temporarily Idle Raised Funds for
14th meeting of the seco
June 292022 Cash Management and the Proposal on Adjusting the Internal Investment Structure of Some Fundraising and Investment
nd Board of Directors
Projects.
15th meeting of the seco The meeting deliberated and approved 6 proposals including the Full Text of the 2022 Semi-annual Report and Summary
August 182022
nd Board of Directors Thereof and the 2022 Semi-annual Special Report on the Deposit and Use of Raised Funds.
16th meeting of the seco The meeting deliberated and approved 3 proposals including the Third Quarter Report of 2022 and Proposal on Carrying
October 282022
nd Board of Directors out Foreign Exchange Derivatives Trading Business.The meeting deliberated and approved 2 proposals including the Proposal on the Cancellation of Partially Granted 2019
17th meeting of the seco November
Restricted Stocks and The Third Vesting Period of the Initial Granted Part of the 2019 Restricted Stock Incentive Plan and
nd Board of Directors 142022
the Second Vesting Period of the Reserved Granted Part Meet the Vesting Conditions.The meeting deliberated and approved 2 proposals including Proposal on Granting Reserved Restricted Shares to
18th meeting of the seco December
Incentive Recipients of the 2022 Restricted Stock Incentive Plan and the Proposal on Changing the Registered Capital and
nd Board of Directors 272022
Amendment and Granting Part of the Second Vesting Period to Meet the Vesting Conditions.VIII. Performance of duties by the directors
(I) Attendance by the directors of the meetings of the Board of Directors and shareholders
Attendance of the
Attendance of the meetings of the Board of Directors general meetings of
Whether or
shareholders
Name of the not an
Meetings the Meetings
Director independent Meetings Meetings Whether the director General meetings of
director should attended through Absence
director attended in attended has been absent from shareholders
have attended communication times
person by proxy two consecutive meetings attended
in 2021 equipment
LI Yi NO 11 11 9 0 0 No 4
YU Zhuoping NO 9 9 7 0 0 No 3
ZHANG Wei NO 11 11 9 0 0 No 4
WANG Yingxia NO 11 11 9 0 0 No 4
NING Xiangdong Yes 11 11 9 0 0 No 4
TANG Guliang Yes 11 11 9 0 0 No 4
CHEN Youchun Yes 11 11 9 0 0 No 4
Explanation about absence from two consecutive meetings of the Board of Directors
□ Applicable √ N/A
52 / 245Annual Report 2022
Meetings of the Board of Directors held in 2012 11
Where: Face-to-face meetings 0
Meeting held through communication equipment 9
Meetings held both in the form of face-to-face meeting and through communication equipment 2
(II) Objections raised by directors to matters of the Company
□ Applicable √ N/A
(III) Others
□ Applicable √ N/A
IX. Specific-purpose committees under the Board of Directors
√ Applicable □ N/A
(1). Members of specific-purpose committees under the Board of Directors
Category of specific-purpose committee Members
Audit Committee TANG Guliang (chairperson) CHEN Youchun LI Yi
Nomination Committee CHEN Youchun (chairperson) NING Xiangdong LI Yi
Compensation and Performance Assessment Committee NING Xiangdong (chairperson) TANG Guliang ZHANG Wei
Strategy Committee LI Yi (chairperson) YU Zhuoping NING Xiangdong
(2). The Audit Committee held 7 meetings during the reporting period
Major opinions and Performance of
Date of meeting Content of meeting
suggestions other duties
The meeting deliberated and approved the Proposal on the Company's Shareholder Return
April 32022
Plan for the Next Three Years (2022-2024)
April 132022 Report on the audit implementation stage of the 2021 financial statements.The meeting deliberated and approved 8 proposals including the Proposal on the Company’s
April 152022 < Report on the Performance of Duties of the Audit Committee of the Board of Directors in
2021> and the Proposal on the Company's .
All proposals are
April 252022 Report on the completion of the audit of the 2021 financial statements. None
reviewed and passed.The meeting deliberated and approved 2 proposals including the Full Text of the 2022
August 152022 Semi-annual Report and Summary Thereof and the Proposal on the Expected Situation of
New Daily Related Party Transactions in 2022.The meeting deliberated and approved 3 proposals including the Third Quarter Report of
October 282022
2022 and the Proposal on Carrying out Foreign Exchange Derivatives Trading Business.
December 232022 Report on the audit plan for the 2022 financial statements.
53 / 245Annual Report 2022
(3). The Nomination Committee held 2 meetings during the reporting period
Major opinions and Performance of
Date of meeting Content of meeting
suggestions other duties
The meeting deliberated and approved the Proposal on Electing Mr. YU Zhuoping as a
March 82022
Non-Independent Director of the Company All proposals are
None
The meeting deliberated and approved the Proposal on the Appointment of the Secretary of reviewed and passed.April 272022
the Board of Directors of the Company.
(4). The Remuneration and Appraisal Committee held 4 meetings during the reporting period
Major opinions and Performance of
Date of meeting Content of meeting
suggestions other duties
The meeting deliberated and approved 2 proposals including Proposal on the Company's
April 152022 Directors in 2021 and 2022 Remuneration Plan and the Proposal on the Company's Senior
Management's 2021 Remuneration and 2022 Annual Remuneration Plan.The meeting deliberated and approved 2 proposals including Proposal on the Company's  and the Proposal on the
April 272022