光峰科技:2023年半年度报告（英文版）

2023 Semiannual Report
Stock Code: 688007 Stock Short Name: Appotronics
Appotronics Corporation Limited
2023 Semiannual Report
August 2023本报告为深圳光峰科技股份有限公司自愿披露的《2023年半年度报告（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 2023 Semiannual Report (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.
1 / 2152023 Semiannual Report
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 Semiannual Report is
true accurate and complete and this Semiannual Report is free from any misrepresentation
misleading statement or material omission and agree to assume joint and several liability for
this Semiannual Report.II. Alert of significant risks
The Company has described in detail the risks that may exist in the production and operationof the Company in this Report. Refer to “Section III Discussion and Analysis of the Management -V. Risk factors” for the relevant risks. The investors should be aware of the risk of investment.III. All directors of the Company attended the meeting of the Board of Directors.IV. This Semiannual Report has not been audited.V. LI Yi Principal of the Company WANG Yingxia Person in Charge of the Accounting Body
and WANG Yingxia Chief Accountant hereby warrant that the financial report contained in
this Semiannual Report is true accurate and complete.VI. Profit distribution proposal or proposal for capitalization of capital reserve approved by the
Board of Directors during the reporting period
None
VII. Is there any material event concerning any special arrangement of corporate governance?
□ Applicable√ N/A
VIII. 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 sufficiently 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.IX. Is there any non-operating occupation of funds by the controlling shareholder or other
affiliates?
No
X. Is there any external guarantee provided in contravention of the stipulated decision-making
procedure?
No
2 / 2152023 Semiannual Report
XI. Are the majority of the directors unable to guarantee the truthfulness accuracy and
completeness of the Semiannual Report disclosed by the Company?
No
XII. Others
□ Applicable√ N/A
3 / 2152023 Semiannual Report
Table of Contents
Section I Definitions ............................... 5
Section II Company Profile and Financial Highlight... 6
Section III Discussion and Analysis of the Managem.. 10
Section IV Corporate Governance .................... 32
Section V Environment and Social Responsibilities .. 35
Section VI Significant Matters ..................... 38
Section VII Changes in Shares and Shareholders ..... 62
Section VIII Preferred Shares ...................... 68
Section IX Bonds ................................... 69
Section X Financial Report ......................... 70
Financial Statements with seals and signatures of the Principal of the Company
List of Documents Person in charge of the Accounting Body and Chief Accountant
Available for
Inspection All original documents and announcements of the Company publicly disclosed
during the reporting period
4 / 2152023 Semiannual Report
Section 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 predecessor of the Company
CINEAPPO means CINEAPPO Laser Cinema Technology (Beijing) Co. Ltd.Formovie Chongqing
means Formovie (Chongqing) Innovative Technology Co. Ltd.Formovie
Appotronics HK means Appotronics Hong Kong Limited
Appotronics Daye means Shenzhen Appotronics Daye Investment Partnership (LP)
Appotronics Deye means Shenzhen Appotronics Deye Consulting Partnership (LP)
Appotronics Hongye means Shenzhen Appotronics Hongye Consulting Partnership (LP)
Appotronics Chengye means Shenzhen Appotronics Chengye Consulting Partnership (LP)
Jinleijing means Shenzhen Jinleijing Investment Limited Partnership (LP)
Blackpine means Blackpine Investment Corp. Ltd.CINIONIC means Cinionic Limited (previously known as Barco Cineappo Limited)
WeCast means WeCast Technology Corp.GDC BVI means GDC Technology Limited (British Virgin Islands)
GDC Cayman means GDC Technology Limited (Cayman Islands)
SSE means Shanghai Stock Exchange
Anker means Anker Innovations Technology Co. Ltd.Dangbei means Hangzhou Dangbei Network Technology Co. Ltd.ViewSonic means ViewSonic China Limited
Delta Electronics or
means Delta Electronics Inc.Delta
CES means International Consumer Electronics Show
AR means Augmented Reality
HUD means Head-Up Display
DCI means Digital Cinema Initiatives of the United States
DLP means Digital Light Processing
Liquid Crystal on Silicon a new reflective display technology that
LCOS means
organically combines LCD and CMOS integrated circuits
LCD means Liquid Crystal Display
RGB means Optical three primary colors R: red G: green B: blue
LED means Light Emitting Node a common light emitting device
On-Screen Display an adjustment method by using a menu displayed on
OSD means
the screen
CVIA means China Video Industry Association
A screen resolution of digital products representing the screen resolution
4K means
of 4096×2160 which is an ultra-high-definition resolution
nit means The unit of brightness
IATF means International Automotive Task Force
ADB means Adaptive Driving Beam
AI means Artificial Intelligence
PCT means Patent Cooperation Treaty
5 / 2152023 Semiannual Report
Section II Company Profile and Financial Highlights
I. Company profile
Chinese name 深圳光峰科技股份有限公司
Short name 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
Registered address
Street 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
3. June 7 2011 Area A 1/F Building 13 Xili Wenguang Industrial
Historical changes of the
Zone Nanshan District Shenzhen
Company’s registered address
4. October 24 2012 401 Shenzhen 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
Office address
Street Nanshan District Shenzhen
Postal code of office address 518052
Website http://www.appotronics.com
Email ir@appotronics.cn
Reference to changes during the
N/A
reporting period
II. Contact person and contact information
Board Secretary (Domestic representative for information
disclosure)
Name CHEN Yasha
20-22/F Hi-tech Zone Union Tower No. 63 Xuefu Road Yuehai
Address
Street Nanshan District Shenzhen
Telephone 0755-32950536
Facsimile 0755-86186299
Email ir@appotronics.cn
III. Description of changes to the media for information disclosure and place for keeping
semiannual reports
China Securities Journal (https://www.cs.com.cn)
Designated newspaper for Shanghai Securities News (https://www.cnstock.com)
information disclosure Securities Times (http://www.stcn.com)
Securities Daily (http://www.zqrb.cn)
Websites for publishing the
Shanghai Stock Exchange website (http://www.sse.com.cn)
semiannual reports
Place for keeping the semiannual Office of the Board of Directors
6 / 2152023 Semiannual Report
reports
Reference to changes during the N/A
reporting period
IV. Stock and depository receipts of the Company
(I) Stock of the Company
√ Applicable□ N/A
Stock of the Company
Stock class Stock exchange and Stock short Stock code Former stock
board name short name
Shanghai Stock
A-shares Appotronics 688007 N/A
Exchange STAR Market
(II) Depository receipts of the Company
□ Applicable√ N/A
V. Other related information
□ Applicable√ N/A
VI. Main accounting data and financial indicators of the Company
(I) Main accounting data
Unit: Yuan Currency: RMB
During the
Change over the
Main accounting data reporting period Prior period
prior period (%)
(Jan. - Jun.)
Operating income 1073249037.75 1269322202.11 -15.45
Net profit attributable to shareholders
74914640.9545966481.1062.98
of the listed company
Net profit attributable to shareholders
of the listed company after deduction of 34228839.62 22005386.92 55.55
non-recurring profit or loss
Net cash flow from operating activities 114738832.13 -78553359.67 N/A
Changes at the
end of the
At the end of the At the end of the reporting period
reporting period prior year from the end of
the prior year
(%)
Net assets attributable to shareholders
2725371454.072647663487.592.93
of the listed company
Total assets 4340274686.92 4333350260.15 0.16
(II) Financial highlights
During the
reporting Prior Change over the
Financial highlights
period period prior period (%)
(Jan. - Jun.)
Basic earnings per share (RMB/share) 0.16 0.10 60.00
Diluted earnings per share (RMB/share) 0.16 0.10 60.00
Basic earnings per share after deduction of non-
0.070.0540.00
recurring profit or loss (RMB/share)
Weighted average return on net assets (%) 2.78 1.86 +0.92 percentage
7 / 2152023 Semiannual Report
points
Weighted average return on net assets after +0.38 percentage
1.270.89
deduction of non-recurring profit or loss (%) points
Proportion of R&D investments to operating income +2.72 percentage
11.789.06
(%) points
Explanation about the main accounting data and financial highlights
√ Applicable□ N/A
1. 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 increased by 62.98% and 55.55% year on year respectively; the basic earnings per share diluted
earnings per share and basic earnings per share after deduction of non-recurring profit or loss increased
by 60.00% 60.00% and 40.00% respectively year on year primarily due to the following:
(1) During the reporting period the incomes from the business of cinema projection services and
the business of light sources and light generators increased by 32.75% and 18.43% year on year
respectively while the proportion of the income from the To C business decreased which changed the
income structure and increased the overall gross profit margin by 7.39 percentage points;
(2) During the reporting period the non-recurring profit or loss increased by RMB 16.7247 million
year on year an year-on-year increase by 69.80% which caused a positive impact on the net profit
attributable to shareholders of the listed company;
2. During the reporting period the net cash flow from operating activities increased by RMB
193.2922 million year on year which was mainly due to the optimized supply chain management
decreased payment for procurement and net recovery of security deposits during the reporting period.VII. Differences in accounting data under Chinese accounting standards and overseas accounting
standards
□ Applicable√ N/A
VIII. Items and amounts of non-recurring profit or loss
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Note (if
Item of non-recurring profit or loss Amount
applicable)
Gain or loss on disposal of non-current assets -216132.87
Government grants recognized in profit or loss for the current
period (excluding government grants that are closely related to the
VII. 84 of
business of the Company and are provided in fixed amount or 33198815.57
Section X
quantity continuously according to the applicable polices and
standards of the country)
VII. 68 of
Profit or loss on entrusted investments or assets management 5198708.55
Section X
Net profit or loss of subsidiaries from the beginning of the period up
to the business combination date recognized as a result of business
14923989.20
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 67000.00
investment income on disposal of held-for-trading financial assets
derivative financial assets held-for-trading financial liabilities
8 / 2152023 Semiannual Report
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
69851.05
assets tested for impairment individually
Other non-operating income and expenses 14480.93
Other gains or losses meeting the definition of non-recurring profit
442061.07
or loss
Less: Effect of income taxes 3469096.89
Effects attributable to minority interests (net of tax) 9543875.27
Total 40685801.33
It is required to specify the reason for defining items as non-recurring profit or loss items according to
Information Disclosure and Presentation Rules for Companies Making Public Offering of Securities No.
1 - Non-recurring Profit or Loss and reasons for defining non-recurring profit or loss items illustrated in
Information Disclosure and Presentation Rules for Companies Making Public Offering of Securities No.
1 - Non-recurring Profit or Loss as recurring profit or loss items.
□ Applicable√ N/A
IX. Explanation about performance indicators not under the Accounting Standards for Business
Enterprises
□ Applicable√ N/A
9 / 2152023 Semiannual Report
Section III Discussion and Analysis of the Management
I. Industry and main business during the reporting period
1. Main business
The Company as a global leading enterprise in the field of laser display technology stays market
and customer demand-oriented and continues to engage in the research development production and
sales of laser display core devices and complete equipment based on the proprietary semiconductor laser
light source technologies and architecture. We apply the semiconductor laser light source technology to
household display cinema large venue business education and other conventional scenarios and
successfully expands to new fields such as automotive display aviation display AR robots etc. to
provide customers with a full range of solutions.
2. Main products and services
Our products may be mainly classified into core laser display devices and complete laser display
equipment. The core devices can be further classified into laser light source (cinema light source and
large venue light source) laser TV and smart mini projection light generator automotive optical core
devices (automotive display AR-HUD laser headlights) and systems; and complete laser display
equipment can be classified into laser smart mini projector laser TV laser cinema projector large venue
laser projector laser education projector and others. The services the Company performs include laser
cinema projection services smart large-screen ecology system Feng OS and corresponding system
solutions.
3. Industry in which the Company operates
3.1 Development stage basic characteristics and main technical barriers of the industry
1 Development stage of the industry
As an emerging industry laser display is at a stage of rapid growth and its growth drivers mainly
come from: 1. technological progress has spawned emerging application fields and semiconductor laser
light source technology has been applied to the automotive optics and other fields and the market has
great potential for explosion; 2. the laser display industry in which the Company operates is one of the
strategic emerging industries receiving the major support from the state for accelerated development.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 semiconductor laser light source technology invented by our R&D team
created a wholly new semiconductor laser light source which made a breakthrough in the application of
core devices and imaging solutions of laser display hence becoming the mainstream technical route for
the laser display industry and widely used in vehicle household cinema large venue commercial and
education fields.
10 / 2152023 Semiannual Report
In terms of technology the ALPD semiconductor laser light source technology is compatible with
various chip and technology routes and is suitable for the DLP LCOS and LCD technologies. In terms
of market in addition to traditional applications such as cinema large venue and business education
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 application scenarios
of the ALPD semiconductor laser light source technology.
3 Main technical barriers
(1) Core technologies and core devices
The ALPD technology independently developed by the Company at its early stage created a
wholly new semiconductor laser light source - the ultra-high-brightness semiconductor laser light source
based on rare earth light-emitting materials. The innovative combination of the semiconductor solid laser
with the rare earth phosphor material is the key component of our ALPD semiconductor laser light
source technology. The blue laser of the gallium nitride (GaN) semiconductor material system is used to
excite phosphor on the phosphor wheel hence obtaining the green light and red light in a cost-effective
manner.On one hand since the phosphor material contains numerous doping ions that emit light on their
own different doping ions emit light at slightly different time and the lights are emitted towards various
directions of the whole space there is no time or spatial interference hence eliminating speckle from the
origin of the technology. On the other hand thanks to the phosphor wheel as a core device developed
and manufactured by the Company and the rare earth phosphor materials as an advantageous industry of
China we can effectively control the costs of the devices.As a result our ALPD semiconductor laser light source technology solves the problem of speckle
and problem of costs of conventional RGB trichromatic laser display hence achieving industrialization
rapidly and becoming the mainstream technology architecture for laser display at present.Our latest independently developed ALPD 5.0 super panchromatic laser technology which is a
breakthrough on the basis of our early technology architecture creatively integrates six light sources
(three colors of laser light sources + three colors of LED light sources) by employing a unique light
combination technology. This solves the technical bottleneck of pure three-color laser light sources or
pure three-color LED light sources effectively overcomes the problems of speckle and colorful edges
caused by pure laser display and the problems of limited brightness for pure three-color LED hence
achieving the advantages of higher brightness no speckle and more comfortable colors.
(2) Laser products
Laser display products involve several fields including optics electronics materials physics
mechanical designing precision manufacturing etc. Specifically in the designing of mechanical
structures simulation and designing of heat and stress designing of optical lens and other components
electronic software and hardware (especially for image processing) analysis of ultra-high-definition
signals precision manufacturing etc. the Company has profound technologies and manufacturing
11 / 2152023 Semiannual Report
processes barriers in all the foregoing fields.It should be noted that at present the ALPD semiconductor laser light source technology is the
only laser display and lighting technology meeting automotive standards thanks to its obvious technical
advantages in the automotive optical field.
3.2 Analysis of the position of the Company in the industry and changes therein
As the display technology of a new generation thanks to the advantages of high brightness small
size long service life wide color gamut environment friendliness the ALPD semiconductor laser light
source technology has a broad space for market application. Besides the conventional display field it
has expanded to the automotive optics AR aviation and many other innovative fields.As a leader in the laser display technology Appotronics has created a strong patent moat around the
underlying technical architecture of the ALPD semiconductor laser light source technology which is
hard to be bypassed by projection brands in the industry entering the route of laser phosphor
technologies. We are committed in the breakthroughs innovations expansion of application scenarios
and industrialization of semiconductor laser light source technology and created technology reserves
and patent portfolios covering the whole technology chain of laser display technology from key system
architecture core devices to key algorithm. Thanks to the core competitive advantages consisting of
“patent moat + technical barriers” the Company holds a key position at the upstream core device stage.II. Core technologies and progress in R&D of technologies
1. Core technologies and their advancement and changes during the reporting period
We are committed in the breakthroughs innovations expansion of application scenarios and
industrialization of semiconductor laser light source technology and created technology reserves and
patent portfolios covering the whole technology chain of laser display technology from key system
architecture core devices to key algorithm. Meanwhile the Company has devoted many R&D resources
in the miniaturization of laser display system light source architecture complete equipment structure
machine perception and the preparation and processing of thin film materials to maintaining the leading
position in the industry. As a Leader Level Member of the Laser Illuminated Projector Association
(LIPA) we have participated in the preparation of the international laser display standard.With the support of the data algorithm and design solutions accumulated by us over the years we
can rapidly come up with products and solutions meeting the requirements of different application
scenarios such as cinema projection home entertainment outdoor exhibition ultra large-sized display
and immersive display. Meanwhile we have continuously achieved breakthrough in automobile-grade
laser light generators AR optical modules etc. and released products to the market.National scientific and technology awards
□ Applicable√ N/A
Qualification of national “little giant” enterprises in specialized refine differential and innovative
aspects and “leading enterprise” in the manufacturing industry
□ Applicable√ N/A
12 / 2152023 Semiannual Report
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 technologies and core devices
A.Core technologies
In November 2022 we officially released the ALPD 5.0 super panchromatic laser technology and
moved further towards productization in 2023. Thanks to the innovation in the key technical architecture
this technology has the advantages of higher brightness no speckle and more comfortable colors.Relying on the unique light combination technology and profound patent barriers the ALPD 5.0
super panchromatic laser technology integrates three colors of laser light sources with three colors of
LED light sources to achieve the unprecedented integration of six light sources. This technology
perfectly overcomes the technical bottleneck of pure three-color laser light sources or pure three-color
LED light sources effectively solves the problems of speckle and colorful edges hence achieving the
advantages of higher brightness no speckle and more comfortable colors to produce extreme visual
experience for users.On the basis of the innovative light source architecture the ALPD 5.0 super panchromatic laser
technology also has an outstanding dynamic color gamut modulation so that the system employs an
algorithm to perform pre-analysis to identify the color gamut standard required for playing a video and
feeds back such standard to the light source for modulation; this accurately restores the color gamut that
should be achieved for a corresponding image to present the truest colors and brightness.B.Core devices
In the field of automotive core devices we released the world’s first automobile-grade colorful
laser headlight at the 20th Shanghai International Automobile Industry Exhibition. Meanwhile we also
presented various immersive in-vehicle digital interaction solutions such as window display in-vehicle
transparent display in-vehicle entertainment large screen smart surface etc.In the field of automotive display and lighting the ALPD technology used in our colorful laser
headlights is the only laser technology that has passed the automobile-grade certification by now - it
integrates the three functions of high beam low beam and projection display and even implements
colorful display for the first time to present ultra-high-definition and finer road display for more accurate
ADB control hence meeting the dual requirements of “lighting + display” for future smart headlights.There are obvious advantages for applying laser light sources to smart headlights. Firstly the laser
is brighter. With the same DLP or LCoS chip the luminous flux of laser is 4 times of LED. Secondly
laser devices are smaller. For example our laser headlight module can implement the light aperture of
10mm x 10mm in the headlight hence meeting the light distribution requirements for both the high
beam and low beam.Moreover the ALPD colorful laser headlight is a programmable component; therefore we can
develop various applications specific for driving entertainment and human-vehicle interaction for
vehicle manufacturers so as to create new experience of intelligent vehicles for consumers.
13 / 2152023 Semiannual Report
In the field of household core devices based on the ALPD semiconductor laser light source
technology we are continuously developing light generator products for laser mini projectors to meet
diversified requirements of customers. During the reporting period we supplied light generators for
Dangbei’s new laser projector D5X Pro. The light generator adopts the ALPD semiconductor laser
light source technology to present high-brightness clear and speckle-free images hence creating more
eye-friendly use experience for consumers. Thanks to the high performance of laser light generators this
light generator allows appearance designed with a smaller and more compact size of the overall device.C.Algorithms
During the reporting period based on the study achievements of 3D visual algorithms we
developed the 3D and real-time projection and rendering system based on multiple points of sight which
can accurately sense the geographic information and semantic information of the projection bearing
surface render 3D content in real time and achieve high-precision overlapping projection display. Being
suitable for rapid mass production and measurement against specifications and being equipped with
functional modules for device parameter estimation projection assistance (i.e. automatic focusing
automatic omnidirectional correction automatic obstacle avoidance automatic screen-in non-inductive
focusing non-inductive omnidirectional correction etc.) high-quality 3D model reconstruction for the
projection bearing surface AI object gesture estimation real-time overlapping projection rendering
monocular/binocular 3D rendering AI content generation etc. this system can achieve high-quality 3D
sensing and real-time rendering in projection augmented reality (projection AR) applications making
projection more interesting and novel. This algorithm system may be applied to large venue consumer
and other fields to provide customers with solutions of greater functions and provide consumers with
more genuine and immersive experience.
(2) Branded complete equipment
A. Household products
In the field of household smart mini projectors Formovie released multiple new projectors
including X5 laser projector Xiaoming Q3 and Q3 MAX smart projectors etc. In March 2023
Formovie officially released the X5 laser projector which was the first projection product directly
adopting the CVIA brightness standard in the industry. Being equipped with the ALPD semiconductor
laser light source technology the X5 laser projector can achieve speckle-free and eye-friendly 4K
resolution and the brightness up to 4500 CVIA lumens which is brighter than TVs and achieved
projection for a 1800-inch giant screen.In the field of household laser TVs Formovie released the laser TV C3 in May 2023. Being
equipped with the ALPD semiconductor laser light source technology that is same as high-end cinema
laser halls this product can display outstanding clear and speckle-free images while improving the
brightness performance to 400nit.B. Dedicated display equipment
In March 2023 we released the T Pro G Pro D and other series of large venue projectors at the
Summit of Dedicated Display Core Partners and achieved product upgrade in terms of brightness image
14 / 2152023 Semiannual Report
quality and lens adaptation. The T Pro series high-brightness large venue projector is a laser large venue
projector with stable performance and brightness up to 30000lm; it is equipped with the ALPD dual-
color laser light source technology and the 3DLP imaging technology to produce outstanding colors. The
core light source has the service life of up to 20000 hours and supports dual-channel signal backup.Being able to restore colors accurately with outstanding stability this product is suitable for large venuesoutdoor lighting stage performance and lease scenarios. In terms of software we released the “newAppotronics OSD system” and “Appotronics dedicated console system” to improve the control of
projectors during installation adjustment and management helping users to efficiently complete project
management operation and maintenance.List of intellectual property rights acquired during the reporting period
Increase Total
Applications Applications
Granted (pcs) Granted (pcs)
(pcs) (pcs)
Patent for
584116691007
invention
Patent for utility
9488798682
model
Patent for design 12 10 232 212
Software
06133133
copyright
Others 32 45 1150 1025
Total 196 190 3982 3059
Note: 1. The “others” showed in the above table refers to the Company’s trademarks; 2. During the
reporting period the Company filed a total of 15 valid PCT international patent applications.
3. R&D investments
Unit: Yuan
Current period Prior period % Change
R&D investments expensed 126406142.12 114959786.37 9.96
R&D investments capitalized - - -
Total R&D investments 126406142.12 114959786.37 9.96
Proportion of R&D investments to +2.72 percentage
11.789.06
operating income (%) points
Proportion of R&D investments
---
capitalized (%)
Reason for the material change in the total R&D investments compared with last year
□ Applicable√ N/A
Reasons for the great change in the proportion of R&D investments capitalized and explanation
about the rationality thereof
□ Applicable√ N/A
15 / 2152023 Semiannual Report
4. R&D projects
√ Applicable□ N/A
Unit: 0’000 Yuan
Investment
Estimated Progress
in the Aggregate Technological
No. Item total or interim Goals Application scenario
current investment level
investment results
period
Innovative Provide customized automotive optical
Automotive AR and
projection Laboratory products for vehicle manufacturer Leading in the
1 17087.00 3435.95 7336.94 other innovative
and optical test brands and develop AR optical industry.scenarios.application modules etc.Core
Continuously develop the new
device Continuous
generation ALPD semiconductor laser
light development of core
Mass light source technology to achieve light Leading in the
2 source and 10062.00 1368.37 6873.03 technologies and core
production sources and light generators with wider industry.light devices for use in
color gamut higher brightness and
generator various fields.higher energy efficiency.project
Develop laser TVs with advantageous
Mass Leading in the
3 Laser TV 10204.00 1504.13 10006.10 performance such as high brightness Household laser TVs.
production industry.and eye-friendliness.Develop DCI-compliant and highly
Intended for the high-
Laser cost-effective household cinema
Mass Leading in the end household market
4 cinema 11464.00 1489.51 9596.82 projectors; and DCI-compliant LED
production industry. and projection halls at
projector cinema screen for cinema projection
cinemas.halls.The smart mini projector products with
high performance and high cost
effectiveness will be researched and
Smart
Mass developed and different series of Leading in the Intended for home mini
5 mini 17452.00 3451.71 12575.21
production products will be laid out to make industry. projector market.projector
breakthroughs in technology
innovation product form innovation
and quality upgrade and meet different
16 / 2152023 Semiannual Report
user needs.Dedicated
Multiple laser large venue projectors
display
with high brightness education Large venue projector
products
Mass projectors and business projectors with Leading in the business education
6 (large 8004.00 1390.94 5821.26
production cost effectiveness will be researched industry. projector and other
venue +
and developed for meeting different fields.business
user needs.education)
Total - 74273.00 12640.61 52209.36 - - - -
17 / 2152023 Semiannual Report
5. R&D staff
Unit: 0’000 Yuan Currency: RMB
Basic information
Current period Prior period
Number of R&D staff (persons) 465 471
Proportion of R&D staff to total employees of
31.3330.45
the Company (%)
Total compensation of R&D staff 8664.32 7641.61
Average compensation of R&D staff 18.63 16.22
Education
Academic background Number Percentage (%)
Master and above 132 28.39
Bachelor and below 333 71.61
Total 465 100
Age structure
Age Number Percentage (%)
Below 30 (exclusive) 162 34.84
30-40 (including 30 excluding 40) 198 42.58
40 and above 105 22.58
Total 465 100
Note: The average compensation of R&D staff shown in the table above was the average compensation
for the first half of 2023 and the first half of 2022 respectively.
6. Other information
□ Applicable√ N/A
III. Analysis of core competitiveness during the reporting period
(I) Analysis of core competitiveness
√ Applicable□ N/A
1.High-quality R&D team to accelerate product R&D and iteration
The Company stays 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 optical modules mechanical
designing thermal simulation software and hardware control and preparation of rare earth phosphor
materials 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 under a
new application scenario 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
18 / 2152023 Semiannual Report
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 for application scenarios 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 semiconductor laser light source 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 and constantly optimizes and improves the strategic
arrangement of automotive optics 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 semiconductor laser
light source 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 bypass the underlying patent
arrangement of the Company’s laser phosphor technology route. The Company actively responds to the
national “intellectual property power strategy” and increases the proportion of high-value patents. As of
June 30 2023 the Company had a total of 2714 patents filed and granted throughout the world
including 1901 patents granted throughout the world of which 1007 ones were patents for invention.In terms of technology leadership the Company’s original semiconductor laser light source
technology has become the mainstream technology in the current laser display field and as the
underlying key architecture technology it has been used more than 670 times by leading companies in
the same industry such as Philips of the Netherlands Osram of Germany and Epson of Japan.(II) Events occurred during the reporting period that have a material effect on the Company’s
core competitiveness analysis of the effect and countermeasures
□ Applicable√ N/A
IV. Discussion and analysis of business situationsIn the first half of 2023 we persisted in the core strategy of “core technologies + core devices +application scenarios” in response to challenges in the operating environment. Meanwhile we increased
R&D efforts for core technologies and growth businesses to build up energy for sustainable development
of the Company.During the reporting period we made continuous efforts to expand the business of automotive core
devices; the stable recovery of the business of cinema core devices and the business of dedicated display
improved the overall gross profit margin of the Company; the business of household core devices and To
C products experienced revenue reduction due to prudent consumption of the public and change in
consumption habits. During the first half of 2023 our operating income was RMB 1.073 billion
decreased by 15.45%; the net profit attributable to the parent company reached RMB 74.9146 million
19 / 2152023 Semiannual Report
increased by 62.98% year on year; and the overall gross profit margin of the Company was 37.70%
increased by 7.39 percentage points year on year.
1. Core device business
1.1 Orderly carried out the business of automotive core devices to build a solid and all-round
foundation for development
? Obtained fixed orders from multiple vehicle manufacturers to continuously increase the
ALPD installations
During the reporting period after making active efforts to communicate with well-known
automobile manufacturers and the downstream and upstream players in the supply chain and to promote
favorable cooperation we received the Development Nomination Letters from BYD Beijing Electric
Vehicle and other outstanding vehicle manufacturers which led to the stable development of the
business of automotive core devices. The increase in fixed orders and the mass production and delivery
of products under corresponding fixed orders will lead to positive impact on the operating performance
of the Company during the project life cycle of the business of automotive core devices.At the end of the period besides the 5 nominations we have obtained we also communicated with
multiple vehicle manufacturers on laser headlights AR-HUD and other products to build the foundation
for projects of their new vehicle models.? Actively participated in major industry exhibitions and released new products and new
concepts for automotive optics
In January 2023 at the International Consumer Electronics Show (CES 2023) the automobile
brand BMW released Dee - the world’s first concept car equipped with the multi-window immersive
display technology at four windows which technology was supplied by Appotronics. An ultra small-
sized and high-brightness ALPD DLP light generator is used to achieve the functions of projection
inside and display outside and projection inside and display inside at the side windows so that the
driver and passengers can interact with the display image either inside or outside of the car.In addition at the 20th Shanghai International Automobile Industry Exhibition held in April 2023
we made our debut with an exhibition car equipped with the automotive immersive laser display and
lighting technical scenario and released the world’s first automobile-grade colorful laser headlight and
the immersive in-vehicle digital interaction solution containing window display in-vehicle transparent
display in-vehicle entertainment large screen smart surface. This presented our new concept for various
automotive optical scenarios in the future hence providing drivers and passengers with experience that
is more intelligent and interesting.? Built a comprehensive supply chain system for the automotive optical business to get ready
for delivery of products for dedicated projects
We constantly build and improve the supply chain system in consideration of IATF standards
automotive industry standards and the requirements of customers in cooperation at present including
but not limited to building different production lines for automotive products for mass production
delivery to vehicle manufacturer customers; constantly optimizing the plan and delivery management
20 / 2152023 Semiannual Report
manufacturing management engineering management quality management and other functions in
accordance with the whole-process designing for automotive projects; and building a set of strict
procedure management system containing quality control procurement management engineering
management and production management specific for the automotive business so as to ensure the
quality of automotive products both on complete vehicles and on the end market.? Strengthened the patent layout in intellectual property rights to enhance the unique
advantages in automotive optics
In the field of automotive display and lighting our ALPD semiconductor laser light source
technology is the only laser technology that has passed the automobile-grade certification by now. While
continuously enhancing R&D efforts for automotive optics we constantly improve the patent layout in
technologies for automotive core devices to enhance our head start advantages and unique advantages in
the field of automotive optics. During the reporting period we have 62 new patents granted and filed for
technologies of automotive core devices an increase of 113.79% year on year; as of June 30 2023 we
have a total of 176 patents granted and filed an increase of 70.87% year on year.In consideration of the growing demands for intelligentization and scientific technologies in
vehicles we will actively expand the business of automotive core devices in three major directions
namely automotive display laser headlight and AR-HUD actively explore more novel and comfortable
smart vehicle experience with outstanding domestic and overseas automakers and upstream and
downstream partners in the supply chain and make use of our resources to develop high-quality
dedicated products hence driving the rapid development of the growth business.
1.2 Achieved outstanding performance in the business of cinema core devices and significant
results in overseas market expansion
With respect to the domestic market the cinema market was gradually recovering - the number of
films shown increased by 50% year on year in the first half of 2023. According to the statistics of China
Film Administration as of June 30 2023 the total box office in China for the first half of 2023 was
RMB 26.271 billion up by 52.91% year on year. Driven by multiple favorable factors such as sufficient
supply of films and increased showings we achieved the operating income of RMB 180 million from
the business of cinema projection services up by 32.75% year on year. Thanks to the accumulation and
leading advantages built by the Company for multiple years we achieved over 800 installations of newly
leased light sources during the reporting period. As of June 30 2023 over 28600 sets of ALPD laser
light source projection solutions have been installed throughout China. Besides the cinema projection
services the subsidiary CINEAPPO continuously improved its product portfolio in recent years and
built various innovative products and services in consideration of the different requirements of cinema
customers.With respect to the overseas market the box office in the North America was USD 4.4 billion in the
first half of 2023 up by nearly 20% year on year. Given the continuous increase in the film watching
demands we will take active measures to expand the overseas market. Our light source business has
expanded to North America Europe the Middle East Southeast Asia and other regions.
21 / 2152023 Semiannual Report
1.3 Accelerated the pace for productization of ALPD 5.0 in the transitional period of the smart
projection market
Entering the year 2023 the public became more prudent in consumption which affected the
demands of consumer electronics to a certain extent. Meanwhile the market entered a transitional period
due to changes in the arrangement of smart projection brands. In the first half of 2023 our Business
Division of Household Core Devices worked actively to assist Dangbei ViewSonic Anker and other
customers in releasing new products.We officially released the ALPD 5.0 super panchromatic laser technology in November 2022.Thanks to the innovation in the key technical architecture this technology has the advantages of higher
brightness no speckle and more comfortable colors. In this year we will take the lead in releasing
ALPD 5.0 light generator products in the household field and the Business Division of Household
Core Devices will assist customers in releasing new products to allow consumers to experience
projection products that are more outstanding.
2. Brand business
2.1 Favorable recovery of the dedicated display business to build an ecology of core partners
The reporting period witnessed the gradual recovery of the cultural and tourism lighting night
economy and cultural and art market in China. We helped customers in multiple benchmark projectsincluding the light show on the world’s highest cooling tower - “Lighting Show Program of the IndirectCooling Tower of Mengtai Dongsheng Phase II”. Meanwhile thanks to the recovery of offline education
activities our education business performed outstandingly. In the first half of 2023 we achieved the
operating income of RMB 202 million from the dedicated display business which achieved favorable
recovery with the increase by 13.79% year on year.
22 / 2152023 Semiannual Report
Figure 1: Lighting Show Program of the Indirect Cooling Tower of Mengtai Dongsheng Phase II
To deepen the strategic cooperation with core customers and partners we held a summit of core
partners under the theme of “Innovate Together to Create a Bright Future” in March 2023 at which we
explored new opportunities and technical trends with core partners and released multiple new products
and software. In terms of new products we released the T Pro G Pro D and other new products and
achieved product upgrade in terms of brightness image quality and lens adaptation. In terms of software
we released the “new Appotronics OSD system” and “Appotronics dedicated console system” to
improve the control of projectors during installation adjustment and management helping users to
efficiently complete project management operation and maintenance.For the overseas market relying on the core advantages of the ALPD semiconductor laser light
source technology we will further improve the influence of the ALPD brand enhance the overseas
layout and expand the size of the overseas business.
2.2 Formovie improved the ratio of self-branded business to 78% despite the short-term
fluctuation in the demands of consumer electronics
Under the industry background of prudent consumption of the public change in consumption habits
and change in market conditions the subsidiary Formovie continuously improved its business structure
by making great efforts to develop the cost-effective sub-brand Xiaoming and actively responding to the
changes in the current market conditions. This increased the ratio of Formovie’s self-branded business to
its total income to 78%.During the reporting period facing the short-term fluctuation in the market of consumer electronics
Formovie paid great attention to the cultivation and development of its self-branded products and
released new products such as the laser projector X5 laser TV C3 Xiaoming Q3 and Q3 MAX smart
projector.Significant changes in the operations of the Company during the reporting period and the events
that have or are expected to have a significant impact on the operations of the Company during
the reporting period
□ Applicable√ N/A
V. Risk factors
√ Applicable□ N/A
1. Risks of the macro environment and the consumer electronics industry
At present given that the global economy is experiencing cyclical fluctuation both domestic and
overseas economy is complex and prone to changes. Under such circumstances the public are more
prudent in consumption which slows down the demands on the consumer electronics market. As
optional consumption products smart projection products are facing more significant short-term
fluctuation.We will continue to enhance efforts for studying the macro economic conditions closely follow the
development trend of the consumer electronics industry conduct in-depth research into market demands
constantly enhance efforts for product R&D and technology investment improve our R&D and product
23 / 2152023 Semiannual Report
designing competence assess risks rapidly and take initiative to make relevant business adjustment
hence improving the risk tolerance of the Company.
2. Financial risks
(1) Risk of impairment of accounts receivable
As of the end of the reporting period the book value of our accounts receivable was RMB
206.7273 million accounting for 4.76% of our total assets. Our products are generally delivered after
receiving the payment therefor. We give certain credit period to some major and high-quality customers.In case of any material adverse change in the business condition of our customers we may be unable to
recover certain accounts receivable which may have an adverse effect on our operating performance in
the future.The Company strengthens risk management and control continuously tracks and controls customer
credit and strengthens the assessment of accounts receivable collection and establishes 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 book value of our inventories was RMB 757.7190 million
accounting for 17.46% of our assets. Our inventories mainly comprise raw materials and goods in stock.In the event of any significant change in the competition pattern of the industry and material innovation
in laser display technology and products the recoverable amount of the inventories will be lower than
their book value. The impairment of inventories will have a negative effect on our earnings. The
Company will pay close attention to the changes in supply and demand of the industrial chain and
promptly 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 book value of our fixed asset was RMB 379.9624 million
accounting for 8.75% of our assets. Our fixed assets mainly consist of production equipment and cinema
projector light sources for lease where the cinema projector light sources account for 71.87%. If force
majeure factors result in shutdown of cinemas the cinema projector light sources may be idle causing
risks of impairment of fixed assets and adverse effects to the operation of the Company. 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) Risks of exchange rate movement
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
24 / 2152023 Semiannual Report
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.
3. Risks in failing to implement investment projects as expected
Under the impact of changes in the internal and external environment there are risks that the
Company cannot implement investment projects as expected. Despite the efforts of the Company in
enhancing the management over investment projects accelerate the progress of investment projects and
constantly monitoring the progress of such investment projects in the actual implementation this cannot
avoid situation like delayed construction compared with the plan or adjustment to the implementation
plan or solution in response to industry and market development. Upon the occurrence of such
circumstances the Company will make decisions in accordance with relevant provisions and promptly
fulfill its obligations for information disclosure.
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 Cayman GDC 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.The cooperation on the purchase business for cinema hardware products between the Company and
GDC BVI is subject to uncertainty. The trial of this case has not been started the impact of such case on
the profit or loss of the Company cannot be determined at present; the eventual actual impact depends on
the award of the arbitration tribunal or the negotiation between the parties. The Company has engaged a
professional attorney team and taken relevant legal measures to safeguard the legitimate rights and
interests of the Company and all shareholders in accordance with law and will promptly fulfill the
information disclosure obligations in accordance with relevant provisions.VI. Main business activities during the reporting period
Refer to “IV. Discussion and analysis of business situations” in this section for details.(I) Analysis of main business
1 Analysis of changes in the lines of financial statements
Unit: Yuan Currency: RMB
Item Current period Prior period % Change
Operating income 1073249037.75 1269322202.11 -15.45
Operating costs 668659467.49 884560607.88 -24.41
Selling expenses 143399660.02 120302361.36 19.20
Administrative expenses 86696223.82 106015842.36 -18.22
Financial expenses -17021406.56 -3353880.91 N/A
R&D expenses 126406142.12 114959786.37 9.96
Net cash flow from operating 114738832.13 -78553359.67 N/A
25 / 2152023 Semiannual Report
activities
Net cash flows from investment
-260010504.245167457.19-5131.69
activities
Net cash flows from financing
110646737.55124508865.09-11.13
activities
Description of reasons for changes in the operating income: The operating income decreased by
15.45% year on year primarily due to the year-on-year decrease by 39.97% of the To C business;
Description of reasons for changes in operating costs: The operating costs decreased by 24.41% year
on year primarily due to the decrease in the operating costs corresponding to the year-on-year decrease
by 39.97% of the operating income from the To C business;
Description of reasons for changes in the selling expenses: The selling expenses increased by 19.20%
year on year primarily due to the increase in marketing fees salaries of the sales staff etc.;
Description of reasons for changes in the administrative expenses: The administrative expenses
decreased by 18.22% year on year primarily due to the year-on-year decrease by RMB 19.2929 million
of the share-based payment;
Description of reasons for changes in the financial expenses: The financial expenses decreased by
RMB -13.6675 million year on year primarily due to the year-on-year increase in the subsidy for
interests on loans and interest incomes received;
Description of reasons for changes in the R&D expenses: The R&D expenses increased by 9.96%
year on year primarily due to the increase in the R&D expenses in the business of automotive core
devices;
Description of reasons for changes in the net cash flows from operating activities: The net cash flow
from operating activities increased by RMB 193.2922 million year on year primarily due to the
optimized supply chain management decreased payment for procurement and net recovery of security
deposits during the reporting period;
Description of reasons for changes in the net cash flows from investment activities: The net cash
flow from investment activities decreased by 5131.69% year on year primarily due to the increase in
the purchase of wealth management products;
Description of reasons for changes in the net cash flows from financing activities: The net cash flow
from financing activities decreased by 11.13% year on year primarily due to the increase in the
repayment of due bank loans.
2 Detailed description of major changes in the business types profit composition or profit
sources of the Company
□ Applicable√ N/A
(II) Explanation about material change in profit due to non-main business
□ Applicable√ N/A
(III) Analysis of assets and liabilities
√ Applicable□ N/A
1. Status of assets and liabilities
Unit: Yuan
% of
% of total
total
Balance at the Balance at the assets at the
assets at %
Item end of the end of the end of the Explanation
the end Change
period prior period prior
of the
period
period
Held-for- Primarily due to the
trading 564877200.00 13.01 352880000.00 8.14 60.08 increase in the
financial purchase of structural
26 / 2152023 Semiannual Report
assets bank deposits in the
current period
Primarily due to the
increase in commercial
Notes
3404025.55 0.08 2234687.77 0.05 52.33 acceptance bills
receivable
received in the current
period
Primarily due to the
increase in bank
Receivables
15223418.33 0.35 4279041.00 0.10 255.77 acceptance bills
financing
received during this
period
Primarily due to the
increase in the
Contract warranty deposit for
1608301.560.041061581.350.0251.50
assets the new integration
project in the current
period
Primarily due to the
Non-
increase in the long-
current
term receivables due
assets due 28306652.31 0.65 13431554.82 0.31 110.75
within 1 year as of the
within 1
end of the reporting
year
period
Primarily due to the
increase in the
Long-term
22198629.19 0.51 11524193.80 0.27 92.63 business of installment
receivables
receipts in the current
period
Primarily due to the
Other non-
increase in
current 18633790.53 0.43 12569088.37 0.29 48.25
prepayments for long-
assets
term assets
Primarily due to the
payment of bank
acceptance bills that
Notes
80254013.57 1.85 201299388.57 4.65 -60.13 are payable at the
payable
beginning and paid
during the reporting
period
Primarily due to the
payment of accrued
Employee
salaries and wages as
benefits 29744716.45 0.69 58470960.55 1.35 -49.13
well as bonuses for the
payable
preceding year in the
current period
Primarily due to the
subscription amounts
for restricted shares
Other
119907648.52 2.76 56662357.08 1.31 111.62 received in the current
payables
period for which the
share registration has
not been completed
Other Primarily due to the
current 9799529.40 0.23 28383608.37 0.66 -65.47 payment made in the
liabilities current period for
27 / 2152023 Semiannual Report
rebates incurred in the
prior period
Primarily due to the
Long-term new long-term bank
531486901.7012.25403720542.459.3231.65
borrowings borrowings incurred in
the current period
Primarily due to the
recognition and
Deferred
5112246.23 0.12 8651422.26 0.20 -40.91 conversion of deferred
income
income to other
income
Other information
None
2. Overseas assets
√ Applicable□ N/A
(1) Size of assets
Including: The overseas assets were RMB 481.0871 million representing 11.08% of the total assets.
(2) Explanation about the high proportion of overseas assets
□ Applicable√ N/A
Other information
None
3. Encumbrances on major assets as of the end of the reporting period
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance of book
Item Reason
value
Other monetary funds 10961787.42 Security deposits
Bank deposits 40000000.00 Term deposits
Accounts not handling for a
Bank deposits 5.49
long time
Intangible assets 275524999.80 Mortgage collateral
Total 326486792.71 -
4. Other information
□ Applicable√ N/A
28 / 2152023 Semiannual Report
(IV) Analysis of investments
Overall analysis of external equity investments
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Investment amount in the reporting period (in Investment in the same period of the
Range of change
RMB) prior year (in RMB)
156523146.05159724538.60-2.00%
1. Material equity investments
□ Applicable√ N/A
2. Material non-equity investments
□ Applicable√ N/A
3. Financial assets at fair value
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Gain or loss Cumulative fair
Impairment of Purchase Sale/redemption
Asset Opening on changes in value changes Other Closing
the current amount for the for the current
category balance fair value for included in changes balance
period current period period
the period equity
Equities 12880000.00 12880000.00
Others 351354460.38 -4900000.00 222941577.33 574296037.71
Total 364234460.38 -4900000.00 222941577.33 587176037.71
Note: “Others” mainly include structured deposits and other equity instruments described in detail in XI of Section X.Description of securities investments
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Gain or
loss on Cumulative Purchase Gains
Sale
Initial Source changes fair value amount or Closing
Security Security Short Opening for the Accounting
investment of in fair changes for the losses balance of
type code name book value current account
cost funds value included in current from book value
period
for the equity period disposal
period
29 / 2152023 Semiannual Report
Domestic Held-for-
Self-
and trading
835438 Gabrielle 14000000.00 owned 12880000.00 12880000.00
overseas financial
capital
shares assets
Total - - 14000000.00 - 12880000.00 12880000.00 -
30 / 2152023 Semiannual Report
Description of investments in private funds
□ Applicable√ N/A
Description of derivative investments
√ Applicable□ N/A
The Company held the 16th meeting of the second Board of Directors on October 28 2022 at
which the Proposal on Carrying out Foreign Exchange Derivatives Trading Business was deliberated
and approved under which the Company and subsidiaries in the scope of consolidation were allowed to
engage in the business of foreign exchange derivative products for no more than USD 35.00 million (the
funds may be used on a rolling basis within such quota) and the management or relevant staff of the
Company were authorized to implement relevant specific affairs. This proposal is valid for 12 months
from the date when it is deliberated and passed by the Board of Directors of the Company. In the current
period the Company carried out the business of foreign exchange derivative products in the amount of
USD 5.00 million. This business has become expired by the end of the period.(V) Sale of material assets and equities
□ Applicable√ N/A
(VI) Analysis of major investees
√ Applicable□ N/A
Unit: 0’000 Yuan Currency: RMB
Company Main Registere Shareholdin Total Net Operatin Net
name business d capital g ratio assets assets g income profit
Provision
of cinema
projection
81132.244672.64716.4
CINEAPPO services 10000.00 67.80% 24187.64
486
and sales
of
projectors
R&D and
sale of - -
Chongqing 79752.8
househol 7017.54 39.19% 15573.7 37600.18 7921.6
Formovie 4
d display 6 8
products
R&D and
-
Appotronic sale of 43254.0 35443.2
30116.15100.00%8162.262129.8
s HK laser light 5 4
8
source
(VII) Structured entities controlled by the Company
□ Applicable√ N/A
VII. Other disclosures
□ Applicable√ N/A
31 / 2152023 Semiannual Report
Section IV Corporate Governance
I. General meetings of shareholders held
Reference to
resolutions Date of
Date of
Session published on the disclosure of Resolutions
meeting
designated resolutions
website
Refer to the Announcement on
the Resolutions of the Annual
General Meeting of
Annual general
Shareholders in 2022 (No.meeting of
May 19 2023 www.sse.com.cn May 20 2023 2023-020) disclosed by the
shareholders in
Company at the website of the
2022
Shanghai Stock Exchange
(www.sse.com.cn) on May 20
2023 for details.
Extraordinary general meeting of shareholders requested by the preferred shareholders with
restitution of voting right
□ Applicable√ N/A
Explanation about the general meetings of shareholders
√ Applicable□ N/A
During the reporting period the Company held 1 annual general meeting. After being certified by
Beijing Zhong Lun (Shenzhen) Law Firm engaged by the Company the convening and holding
procedures of general meetings of shareholders the qualifications of the persons attending the meeting
and conveners the voting procedures and results comply with the relevant provisions of the Companies
Law the Rules for General Meetings of Shareholders and other laws regulations and normative
documents as well as the provisions of the Articles of Association and are legal and valid. All proposals
submitted by the Board of Directors of the Company to the general meeting have been reviewed and
passed.II. Changes in directors supervisors senior officers and key technical staff
□ Applicable√ N/A
Description of changes in directors supervisors senior officers and key technical staff
□ Applicable√ N/A
Description of determination of key technical staff of the Company
√ Applicable□ N/A
The key technical staff of the Company were determined by taking into account the following factors:
(1) play an important role in the Company’s R&D system or hold an important position in the
Company’s R&D department;
(2) lead the R&D of multiple core technologies of the Company during the period of service;
32 / 2152023 Semiannual Report
(3) obtain several patents in the capacity as inventor or designer and make outstanding contributions to
the core technologies of the Company;
(4) have a deep professional knowledge background in the laser display industry broad work
qualifications or project experience.Any candidate shall meet at least two of the above criteria at the same time and then with the approval
by the Chairman may be determined as a key technician of the Company.III. Proposals for profit distribution or capitalization of the capital reserve
Profit distribution proposal or proposal for capitalization of the capital reserve during the
reporting period
Whether to implement profit distribution or
No
capitalization of the capital reserve
Number of bonus shares distributed per 10 shares -
Cash dividends distributed per 10 shares (inclusive
-
of tax)
Number of shares distributed out of the capital
-
reserve
Description of the proposal for profit distribution or capitalization of the capital reserve
-
IV. Share incentive plan employee stock ownership plan or other employee incentive measures of
the Company and their effect
(I) Equity incentives already disclosed in the interim announcements about which no new
information is available
√ Applicable□ N/A
Summary Reference
On June 25 2023 the Company held the 20th meeting of the second
Board of Directors and the 19th meeting of the second Board of Refer to the relevant
Supervisors deliberating and approving the Proposal on Adjustments announcements disclosed by the
to Grant Prices under the Company’s Restricted Share Incentive Company at the website of the
Plan the Proposal on Invalidating Partially Granted but Not Vested Shanghai Stock Exchange
Restricted Shares the Proposal on Meeting Vesting Criteria for the (www.sse.com.cn) on June 27
First Vesting Period in the Initial Grant under 2022 Restricted Share 2023 for details.Incentive Plan and other related proposals.(II) Incentives that have not been disclosed in any interim announcement or about which there’s
new information available
Share incentives
□ Applicable√ N/A
Other information
□ Applicable√ N/A
Employee stock ownership plan
□ Applicable√ N/A
Other incentives
33 / 2152023 Semiannual Report
□ Applicable√ N/A
34 / 2152023 Semiannual Report
Section V Environment and Social Responsibilities
I. Environment
Whether mechanisms related to environmental
Yes
protection have been established
Investment in environmental protection funds
17.24
during the reporting period (unit: RMB 0’000)
(I) Environmental protection information of the Company and its major subsidiaries that are
identified as major polluters by the environmental protection authority
□ Applicable√ N/A
(II) Environmental protection information of any company that is not identified as a major
polluter
√ Applicable□ N/A
1. Administrative penalties imposed due to environmental issues
□ Applicable√ N/A
2. Disclosure of environmental protection information with reference to that of major polluters
√ Applicable□ N/A
As a leading laser display technology enterprise in the world the Company mainly engages in the
research development production and sales of laser display core devices and complete equipment and
application of semiconductor laser light source technologies to different scenarios based on the
proprietary semiconductor laser light source technologies and architecture making it a low energy
consumption enterprise. During the reporting period the Company had no production or operating entity
included in the list of major polluters identified by the environmental protection authority did not
conduct its routine production and operation in the heavy pollution industry identified by relevant
national laws and regulations and its production and operating activities had little impact on
environment.During its production the Company mainly emits waste gas waste water and solid waste which
have been properly handled in accordance with the requirements of relevant authorities and industrial
parks. For waste gas we apply the level II standards defined in the Emission Limits of Air Pollutants
(DB44/27-2001) promulgated by Guangdong Province. The waste gas is treated by an environment
protection facility and emitted when reaching the waste gas emission criteria. Moreover we engage a
professional third-party inspection institution every year to monitor and assess the waste gas emitted. Of
the waste water domestic sewage is pre-processed according to standards and discharged through the
municipal sewage pipelines to the regional water quality purification plant for in-depth processing. The
industrial wastewater is uniformly recycled and treated by a qualified environmental protection company.Meanwhile the Company actively optimizes the production process and reduces sewage discharge. With
respect to solid waste industrial solid waste is treated by a qualified environmental protection company
while recyclable waste is collected and sorted by the Company’s cleaning staff and then recovered by
the relevant resource recovery unit.
35 / 2152023 Semiannual Report
3. Reason for failure to disclose other environmental protection information
□ Applicable√ N/A
(III) New information about the environmental protection information disclosed during the
reporting period
□ Applicable√ N/A
(IV) Relevant information conducive to protecting ecology preventing pollution and fulfilling
environmental responsibilities
√ Applicable□ N/A
The Company achieved ISO14001 environmental management system certification in 2008 and
maintained such certification to date and also achieved the QC080000 Hazardous Substance Process
Management (HSPM) certification in 2019. All of our products are green products and have passed
China environmental labeling product certification RoHS REACH and other certifications.We actively implemented internal measures to reduce costs and improve efficiency and achieve
energy conservation and environment protection by means of technical innovation. For example our
ALPD 5.0 super panchromatic laser technology can achieve the energy efficiency of up to 20 lm/W and
improve the efficiency by about 100% compared with other light sources hence significantly reducing
energy consumption while maintaining the high brightness. To promote green office among employees
we replaced paper approval with online approval which effectively reduced the paper consumption at
the office. Moreover we encouraged employees to shut down devices when leaving their posts turn off
the light for one hour at the lunch break and take the employee bus hence improving employees’
awareness of energy conservation and environment protection. We actively implemented rules of energy
conservation and emission reduction and daily management measures and effectively carried out
measures to save water and power.(V) Measures taken to reduce carbon emissions during the reporting period and their effect
Whether carbon reduction measures are
Yes
in place
Reduction of CO2 equivalent emissions
414203
(in tons)
To develop and produce new products that facilitate carbon
Types of carbon reduction measures reduction: The xenon lamp light sources used for
(e.g. using clean energy to generate projection at conventional cinemas have the characteristics
electricity using carbon reduction of high power consumption and fast brightness attenuation.technologies in the production process Our ALPD laser light source thanks to its obvious
developing and producing new products advantages in energy and power conservation can reduce
that contribute to carbon reduction etc.) power consumption by about 1.8 degree for each hour
compared with xenon lamps.
36 / 2152023 Semiannual Report
Specific description
√ Applicable□ N/A
To verify the use performance of the ALPD laser light source a cinema in Hebei Province
selected two cinema halls with almost identical conditions and retained the xenon lamp light source in
one hall while upgrading the other hall with the ALPD laser light source. After operation for two
months given the basically same film programming the xenon lamp hall consumed a total of 1076
degrees of electricity making the hourly electricity consumption of 2.91 degrees; while the ALPD laser
hall consumed 403 degrees of electricity making the hourly electricity consumption of 1.1 degrees
which reduced the hourly electricity consumption by 1.81 degrees compared with the xenon lamp hall.As of the end of the reporting period we have installed over 28600 sets of our ALPD laser light
source projection solution throughout China achieving the total light source operation of about 268
million hours. On the basis of the average of about 1.8 degrees of electricity saved per hour this saved a
total of about 482 million degrees of electricity equivalent to reducing the CO2 emission by 0.4142
million tons.II. Information on consolidation and expansion of the results of poverty alleviation rural
revitalization and other specific work
□ Applicable√ N/A
37 / 2152023 Semiannual Report
Section VI Significant Matters
I. Fulfillment of covenants
(I) Covenants made by the actual controller shareholders affiliates and acquirer of the Company the Company itself and other related parties during
the reporting period or the outstanding covenants made by them in the prior periods
√ Applicable□ N/A
Whether Whether
Reason for Action
there’s a the
failure to plan if
Validity time limit covenant
Background Covenant fulfill the failing to
Covenantor Covenant content period of for the has been
of covenant type covenant fulfill the
covenant fulfillment strictly
on time (if covenant
of the fulfilled
applicable) on time
covenant on time
Covenant by the controlling
36 months
shareholder regarding
after
restriction on the sale of
Covenant Restriction completion of
shares held by him voluntary
relating to on the sale Refer to IPO Prospectus the IPO and Yes Yes N/A N/A
lock-up of such shares
IPO of shares the extended
extension of lock-up period
period stated
intention to hold and dispose
below
of shares and other issues
36 months
after
Covenant by the actual completion of
controller regarding the IPO and
restriction on the sale of the extended
Covenant Restriction
shares held by him voluntary period stated
relating to on the sale Refer to IPO Prospectus Yes Yes N/A N/A
lock-up of such shares below and 6
IPO of shares
extension of lock-up period months after
intention to hold and dispose termination of
of shares and other issues employment
with the
Company
38 / 2152023 Semiannual Report
Covenant by the concert
parties of the actual controller 36 months
regarding restriction on the after
Covenant Restriction sale of shares held by them completion of
relating to on the sale voluntary lock-up of such Refer to IPO Prospectus the IPO and Yes Yes N/A N/A
IPO of shares shares extension of lock-up the extended
period intention to hold and period stated
dispose of shares and other below
issues
12 months
after
Covenant by HU Fei as a
completion of
member of key technical
the IPO and
staff regarding restriction on
the extended
Covenant Restriction the sale of shares held by
period stated
relating to on the sale him voluntary lock-up of Refer to IPO Prospectus Yes Yes N/A N/A
below and 6
IPO of shares such shares extension of
months after
lock-up period intention to
termination of
hold and dispose of shares
employment
and other issues
with the
Company
Covenant
Issuer’s covenant regarding
relating to Others Refer to IPO Prospectus Permanent No Yes N/A N/A
measures against fraud in IPO
IPO
Controlling shareholder
Covenant actual controller and their
relating to Others concert parties’ covenant Refer to IPO Prospectus Permanent No Yes N/A N/A
IPO regarding measures against
fraud in IPO
Directors supervisors and
Covenant
senior officers’ covenant
relating to Others Refer to IPO Prospectus Permanent No Yes N/A N/A
regarding measures against
IPO
fraud in IPO
Covenant Issuer’s covenant regarding
Others Refer to IPO Prospectus Permanent No Yes N/A N/A
relating to remedial measures for diluted
39 / 2152023 Semiannual Report
IPO earnings in the current period
Controlling shareholder
actual controller and their
Covenant
concert parties’ covenant
relating to Others Refer to IPO Prospectus Permanent No Yes N/A N/A
regarding remedial measures
IPO
for diluted earnings in the
current period
Directors and senior officers’
Covenant
covenant regarding remedial
relating to Others Refer to IPO Prospectus Permanent No Yes N/A N/A
measures for diluted earnings
IPO
in the current period
Covenant
Issuer’s covenant regarding
relating to Others Refer to IPO Prospectus Permanent No Yes N/A N/A
profit distribution policy
IPO
Issuer’s covenant regarding
Covenant restraint measures and
relating to Others liability for compensation in Refer to IPO Prospectus Permanent No Yes N/A N/A
IPO the event of failure to fulfill
its covenants
Controlling shareholder
actual controller and their
Covenant concert parties’ covenant
relating to Others regarding restraint measures Refer to IPO Prospectus Permanent No Yes N/A N/A
IPO and liability for compensation
in the event of failure to
fulfill their covenants
Directors supervisors and
senior officers’ covenant
Covenant
regarding restraint measures
relating to Others Refer to IPO Prospectus Term of office No Yes N/A N/A
and liability for compensation
IPO
in the event of failure to
fulfill their covenants
Covenant Resolve Controlling shareholder’s
relating to horizontal covenant on avoiding Refer to IPO Prospectus Permanent No Yes N/A N/A
IPO competition horizontal competition and
40 / 2152023 Semiannual Report
issues regulating and reducing
related-party transactions
Resolve Actual controller’s covenant
Covenant related- on avoiding horizontal
relating to party competition and regulating Refer to IPO Prospectus Permanent No Yes N/A N/A
IPO transaction and reducing related-party
issues transactions
For details refer to the 2021
Restricted Share Incentive
Covenant by the grantee of
Plan (Draft) the 2021 Second
share incentives regarding
Others Restricted Share Incentive Permanent No Yes N/A N/A
information disclosure
Plan (Draft) and the 2022
documents
Covenant Restricted Share Incentive
related to Plan (Draft) of the Company
share For details refer to the 2021
incentives Restricted Share Incentive
Company’s covenant on Plan (Draft) the 2021 Second
Others refraining from providing Restricted Share Incentive Permanent No Yes N/A N/A
financial assistance Plan (Draft) and the 2022
Restricted Share Incentive
Plan (Draft) of the Company
II. Non-operating occupation of funds by the controlling shareholder and other affiliates during the reporting period
□ Applicable√ N/A
III. Guarantees in violation of applicable regulations
□ Applicable√ N/A
IV. Audit of semiannual report
□ Applicable√ N/A
V. Changes in matters involved by non-standard audit opinions in the previous annual report and treatment thereof
□ Applicable√ N/A
VI. Matters relating to bankruptcy and reorganization
□ Applicable√ N/A
41 / 2152023 Semiannual Report
VII. Material litigations and arbitrations
√ The Company was involved in material litigations or arbitrations during the reporting period
□ The Company was not involved in material litigations or arbitrations during the reporting period
(I) Litigations and arbitrations already disclosed in interim announcements about which no new information is available
√ Applicable□ N/A
Summary and type of case Reference
I. (2019) Yue 03 Min Chu No. 2943 2944 2946 2948 and 2951
In July 2019 the Company initiated a patent infringement litigation on the ground that
Delta Electronics (Shanghai) Co. Ltd. Delta Video Display System (Wujiang) Limited Refer to the Announcement of Litigation Involving Appotronics (No.and Shenzhen Super Network Technology Co. Ltd. infringed the patent for invention 2019-006) disclosed by the Company at the website of the Shanghai
200810065225.X owned by the Company requesting the court to order the defendants to Stock Exchange (www.sse.com.cn) on July 31 2019 for details.
stop the acts of infringing the Company’s patent rights and compensate the plaintiff for its
economic losses etc. in the amount of RMB 28.00 million.II. (2021) Yue 73 Zhi Min Chu No. 1860
Refer to the Announcement on Malicious Litigation Initiated by
In December 2021 Delta maliciously initiated an intellectual property litigation against
Delta Electronics (No. 2021-097) disclosed by the Company at the
the Company. Since such act infringed the rights and interests of the Company the
website of the Shanghai Stock Exchange (www.sse.com.cn) on
Company sued Delta to Guangzhou Intellectual Property Court on December 17 2021 on
December 21 2021 for details.the ground of such malicious act involving the amount of RMB 10.00 million.III. 01-22-0001-2735
In March 2022 GDC Cayman and GDC BVI initiated the arbitration against the
Company and its wholly-owned subsidiary Appotronics HK in respect of the dispute over
Refer to the Announcement on Arbitration with GDC Cayman and
the implementation of the Settlement Agreement involving the total amount of USD
GDC BVI (No. 2022-028) disclosed by the Company at the website
38.00 million. Later the Company raised counter-claims against GDC Cayman GDC
of the Shanghai Stock Exchange (www.sse.com.cn) on April 2 2022
BVI Mr. ZHANG Wanneng and his management team on the ground that GDC Cayman
for details.GDC BVI Mr. ZHANG Wanneng and his management team violated the provisions of
the Shareholders’ Agreement and Settlement Agreement involving the total amount of no
less than USD 40.00 million.(II) Litigations and arbitrations that have not been disclosed in interim announcements or about which there’s new information available
√ Applicable□ N/A
Unit: 0’000 Yuan Currency: RMB
During the reporting period:
Party Type of Amount Whether Result Enforcement of
Plaintiff/claimant Defendant/respondent Background Status
jointly and litigation/arbitration claimed any and judgment/award
42 / 2152023 Semiannual Report
severally provision effect
liable is
recognized
and the
amount
Case of dispute over
infringement on
patents for
Under trial
invention (2019)
of the
Jing 73 Min Chu
second
No. 1275 the
instance.Plaintiff alleges that
Judgment
Fengmi it is the owner of
of first
Appotronics (Beijing) Infringement on the patent for Trial not
Delta Electronics Inc. 1601.00 No instance: -
Corporation Limited Technology patent for invention invention completed
All the
Co. Ltd. ZL201610387831.8
claims of
and the Defendant
Delta
infringed such
Electronics
patent for invention
should be
of the Plaintiff and
dismissed.caused economic
losses to the
Plaintiff.Case of dispute over
infringement on
patents for
Chengdu invention (2021)
The court
Jinxi Chuan 01 Zhi Min The
approved
Appotronics Guangxian Infringement on Chu No. 685 the Plaintiff
Delta Electronics Inc. 1601.00 No to -
Corporation Limited Information patent for invention Plaintiff alleges that withdrew
withdraw
Technology the Defendant its case
the case
Co. Ltd. infringed such
patent for invention
ZL201610387831.8
of the Plaintiff and
43 / 2152023 Semiannual Report
caused economic
losses to the
Plaintiff.Case of dispute over
infringement on
patents for
invention (2021)
Chuan 01 Zhi Min
Chengdu
Chu No. 686 the The court
Jinxi The
Plaintiff alleges that approved
Appotronics Guangxian Infringement on Plaintiff
Delta Electronics Inc. the Defendant 1601.00 No to -
Corporation Limited Information patent for invention withdrew
infringed such withdraw
Technology its case
patent for invention the case
Co. Ltd.ZL201110041436.1
of the Plaintiff and
caused economic
losses to the
Plaintiff.Case of dispute over
infringement on
patents for
invention (2023) Hu
73 Zhi Min Chu No.
15 (former case
Shanghai No.: (2021) Hu 73 The court
The
Haichi Zhi Min Chu No. approved
Appotronics Infringement on Plaintiff
Delta Electronics Inc. Digital 1070) the Plaintiff 1601.00 No to -
Corporation Limited patent for invention withdrew
Technology alleges that the withdraw
its case
Co. Ltd. Defendant infringed the case
such patent for
invention
ZL201110041436.1
of the Plaintiff and
caused economic
losses to the
44 / 2152023 Semiannual Report
Plaintiff.Delta
Video
Display
System
(Wujiang) Cases of dispute
Limited over infringement
WANG on patents for
Yuhai invention (2020)
Hunan Yue 73 Zhi Min
Dehao Chu No. 1335-
Cultural 1338 1340 1341
and 1361 the Plaintiff
Creative accused the
Co. Ltd. Defendants Delta
Digital Electronics The court
Appotronics Corporation Delta Electronics Protection Infringement on (Shanghai) Co. Case has made
3825.00 No -
Limited (Shanghai) Co. Ltd. (Beijing) patent for invention Ltd. Delta Video closed the
Electronics Display System decision
Technology (Wujiang) Limited
Co. Ltd. and other entities
Guangdong of infringing the
Jianye patent for invention
Display No.Information ZL200880107739.5
Technology of the Plaintiff and
Co. Ltd. caused economic
and losses to the
Guangzhou Plaintiff.Jianye
Network
Technology
Co. Ltd.Appotronics Corporation Delta Electronics Delta Infringement on Cases of dispute Case The court
4175.00 No -
Limited (Shanghai) Co. Ltd. Video patent for invention over infringement closed has made
45 / 2152023 Semiannual Report
Display on patents for the
System invention (2020) decision
(Wujiang) Yue 73 Zhi Min
Limited Chu No. 1339
WANG 1353 1355 1357-
Yuhai 1360 the Plaintiff
Hunan accused the
Dehao Defendants Delta
Cultural Electronics
and (Shanghai) Co.Creative Ltd. Delta Video
Co. Ltd. Display System
Digital (Wujiang) Limited
Protection and other entities
(Beijing) of infringing the
Electronics patent for invention
Technology No.Co. Ltd. ZL200810065225.X
Guangdong of the Plaintiff and
Jianye caused economic
Display losses to the
Information Plaintiff.Technology
Co. Ltd.and
Guangzhou
Jianye
Network
Technology
Co. Ltd.(III) Other information
√ Applicable□ N/A
46 / 2152023 Semiannual Report
1. As of the end of the reporting period 3 of the invalidation petitions initiated by the Company against the patents held by Delta Electronics Inc. were under
examination at China National Intellectual Property Administration.
2. As of the end of the reporting period 1 of the invalidation petitions initiated against a patent held by the Company was under examination at China NationalIntellectual Property Administration. The patent involved is “phosphor layer device and corresponding light source and projection system and correspondingproduction method” (patent No.: ZL201510420950.4).
47 / 2152023 Semiannual Report
VIII. Penalties imposed on the listed company and its directors supervisors senior officers
controlling shareholder actual controller for suspected violation of laws and regulations
and rectification of the relevant violations
□ Applicable√ N/A
IX. Credit standing of the Company and its controlling shareholder and actual controller during
the reporting period
□ Applicable√ N/A
X. Material related-party transactions
(I) Related-party transactions in connection with day-to-day operation
1. Matters already disclosed in the interim announcements about which no new information is
available
√ Applicable□ N/A
Summary Reference
The Company expects to engage in daily related-party
Refer to the Announcement on the
transactions with China Film Equipment Co. Ltd. and its
Prediction of Daily Related-party
affiliates Xiaomi Communications Co. Ltd. and its
Transactions in 2023 (No. 2023-010)
affiliates Beijing DonView Education Technology Co.disclosed by the Company at the
Ltd. and its affiliates CINIONIC Limited and its affiliates
website of the Shanghai Stock
GDC Technology Limited and its affiliates Shenzhen YLX
Exchange (www.sse.com.cn) on April
Technology Development Co. Ltd. for the amount of RMB
282023.
573.5000 million in 2023.
2. Matters already disclosed in the interim announcements about which there is new
information available
□ Applicable√ N/A
3. Matters that have not been disclosed in any interim announcement
□ Applicable√ N/A
(II) Related-party transactions involving acquisition or sale of assets or equities
1. Matters already disclosed in the interim announcements about which no new information is
available
□ Applicable√ N/A
2. Matters already disclosed in the interim announcements about which there is new
information available
□ Applicable√ N/A
3. Matters that have not been disclosed in any interim announcement
□ Applicable√ N/A
4. Fulfillment of performance covenants (if any) during the reporting period
□ Applicable√ N/A
(III) Material related-party transactions involving joint external investments
1. Matters already disclosed in the interim announcements about which no new information is
available
√ Applicable□ N/A
Summary Reference
Refer to the Announcement on Stopping
On April 26 2023 the Company held the 19th meeting
Acquiring 51% Equity Interests in WeCast
of the second Board of Directors and the 18th meeting of
Technology Corp. by the Subsidiary
48 / 2152023 Semiannual Report
the second Board of Supervisors at which the Proposal Formovie (No. 2023-014) disclosed by the
on Stopping Acquiring 51% Equity Interests in WeCast Company at the website of the Shanghai
Technology Corp. by the Subsidiary Formovie was Stock Exchange (www.sse.com.cn) on April
reviewed and approved under which it was approved 28 2023 for details.that Formovie (Chongqing) Innovative Technology Co.Ltd. a subsidiary of the Company shall stop acquiring
the 51% equity interests in WeCast.
2. Matters already disclosed in the interim announcements about which there is new
information available
□ Applicable√ N/A
3. Matters that have not been disclosed in any interim announcement
□ Applicable√ N/A
(IV) Accounts receivable from and payable to related parties
1. Matters already disclosed in the interim announcements about which no new information is
available
□ Applicable√ N/A
2. Matters already disclosed in the interim announcements about which there is new
information available
□ Applicable√ N/A
3. Matters that have not been disclosed in any interim announcement
□ Applicable√ N/A
(V) Financial business between the Company and its affiliated financial companies or between
the Company’s controlled financial companies and affiliates
□ Applicable√ N/A
(VI) Other material related-party transactions
□ Applicable√ N/A
(VII) Others
□ Applicable√ N/A
XI. Material contracts and performance thereof
(I) Trusteeship contracting and lease
√ Applicable□ N/A
(1) Trusteeship
□ Applicable√ N/A
(2) Contracting
□ Applicable√ N/A
49 / 2152023 Semiannual Report
(3) Lease
√ Applicable□ N/A
Unit: 0’000 Yuan Currency: RMB
Impact of
Basis for Related-party Related-
Name of Name of Leased Amount of Lease lease income
Start date End date determining transaction or party
lessor lessee assets leased assets income on the
lease income not relation
Company
Office
Shenzhen
Appotronics R&D
Meisheng
Corporation factory 1469.40 2022.12.01 2024.11.30 - - - No None
Industry
Limited employee
Co. Ltd.dormitory
Description of lease
None
50 / 2152023 Semiannual Report
(II) Material guarantees that have been performed or have not yet been fully performed during the report period
√ Applicable□ N/A
Unit: 0’000 Yuan Currency: RMB
External guarantees provided by the Company (excluding those provided for the subsidiaries)
Total amount of guarantees provided during the reporting period (excluding those provided for 0
the subsidiaries)
Balance of guarantees as of the end of the reporting period (A) (excluding those provided for the 0
subsidiaries)
Guarantees provided by the Company or its subsidiaries for the subsidiaries of the Company
Whether
Whether
Relationsh the Amount
Relationsh the Whethe
ip between Commencem obligatio of the
ip between Inceptio obligatio r there’s
the Guarante ent date of Expiry Type of n overdue
Guaranto the obligor n date of n a
guarantor Obligor ed guarantee date of guarant guarante obligatio
r and the guarante guarante counter
and the amount (signing date guarantee ee ed has n
listed e ed has guarant
listed of agreement) been guarante
company become ee
company discharge ed
overdue
d
Three years
CINEAPP after the
Appotroni
O Laser due date for
cs Joint and
Headquarte Cinema Controlled 2021/12/ the
Corporati 50000.00 2021/12/29 several No No - No
rs Technolog subsidiary 29 obligations
on liability
y (Beijing) under the
Limited
Co. Ltd. master
contract.CINEAPP
Appotroni
O Laser
cs Joint and
Headquarte Cinema Controlled 2021/1/2
Corporati 23000.00 2021/1/26 2026/2/7 several No No - No
rs Technolog subsidiary 6
on liability
y (Beijing)
Limited
Co. Ltd.Appotroni Headquarte CINEAPP Controlled 2021/12/ Joint and
4000.00 2021/12/27 2026/7/3 No No - No
cs rs O Laser subsidiary 27 several
51 / 2152023 Semiannual Report
Corporati Cinema liability
on Technolog
Limited y (Beijing)
Co. Ltd.CINEAPP
Appotroni
O Laser
cs Joint and
Headquarte Cinema Controlled 2022/12/
Corporati 10000.00 2022/12/30 2027/2/28 several No No - No
rs Technolog subsidiary 30
on liability
y (Beijing)
Limited
Co. Ltd.Formovie
Appotroni
(Chongqin
cs Joint and
Headquarte g) Controlled 2021/9/1
Corporati 20000.00 2021/9/10 2028/4/25 several No No - No
rs Innovative subsidiary 0
on liability
Technolog
Limited
y Co. Ltd.Formovie
Appotroni
(Chongqin
cs Joint and
Headquarte g) Controlled 2021/12/
Corporati 9000.00 2021/12/6 2026/12/30 several No No - No
rs Innovative subsidiary 6
on liability
Technolog
Limited
y Co. Ltd.Three years
Formovie after the
Appotroni
(Chongqin due date for
cs Joint and
Headquarte g) Controlled 2022/9/1 the
Corporati 30000.00 2022/9/16 several No No - No
rs Innovative subsidiary 6 obligations
on liability
Technolog under the
Limited
y Co. Ltd. master
contract.Appotroni Formovie Three years
cs (Chongqin after the Joint and
Headquarte Controlled 2022/12/
Corporati g) 12000.00 2022/12/22 due date several No No - No
rs subsidiary 22
on Innovative (without liability
Limited Technolog accelerated
52 / 2152023 Semiannual Report
y Co. Ltd. maturity) of
the latest
financing
due and
payable
among all
the
financings
drawn and
used during
the period
of
occurrence
of
guaranteed
debts under
the master
agreement
or/and
inter-bank
borrowing.The
guarantee
Formovie period is
Appotroni
(Chongqin three years
cs Joint and
Headquarte g) Controlled 2021/12/ from the
Corporati 5000.00 2021/12/29 several No No - No
rs Innovative subsidiary 29 date of
on liability
Technolog termination
Limited
y Co. Ltd. of claims
determinati
on period.Total amount of guarantees provided for the subsidiaries during the reporting period 20908.07
Balance of guarantees provided for the subsidiaries as of the end of the reporting period (B) 51793.89
Total amount of guarantees provided by the Company (including those provided for the subsidiaries)
53 / 2152023 Semiannual Report
Total amount guaranteed (A+B) 51793.89
Proportion of total amount guaranteed to the net assets of the Company (%) 19.00
Including:
Total amount of guarantees provided for the shareholders actual controller and their affiliates (C) 0
Total amount of debt guarantees directly or indirectly provided for the obligors whose equity-
36599.64
debt ratio exceeds 70% (D)
Total amount guaranteed in excess of 50% of the net assets of the Company (E) 0
Total amount guaranteed (C+D+E) 36599.64
Explanation about outstanding guarantees for which the Company may assume joint and several
N/A
liability
Explanation about guarantees N/A
(III) Other material contracts
□ Applicable√ N/A
54 / 2152023 Semiannual Report
XII. Use of offering proceeds
√ Applicable□ N/A
(I) Overall use of offering proceeds
√ Applicable□ N/A
Unit: Yuan
Cumulative
Cumulative
investment
Net offering total offering Ratio of the
Date of Total offering progress as
Source of proceeds after Total offering proceeds used Amount amount
receiving Total offering proceeds of the end of
offering deduction of proceeds as of the end invested in invested in
offering proceeds committed after the
proceeds offering committed of the this year (4) this year (%)
proceeds adjustment (1) reporting
expenses reporting (5)=(4)/(1)
period (%)
period (2)
(3)=(2)/(1)
Initial public July 16
1190000000.001062470797.731062470797.731062470797.73824612707.2677.6170089074.446.60
offering 2019
(II) Breakdown of investment projects
√ Applicable□ N/A
Unit: Yuan
Total Cumul Cumul Date
Whet Whet
invest Total ative ative for the
her her Bene
ment invest total invest project
the benef fits Material
Whe from ment offerin ment to
Wheth Date inves its or changes
ther the from g progre reach Specific
er Source of tmen are R&D in the
over offeri the procee ss as of the reason for
change of receivi Com t achie resul project
- ng offerin ds the workin failing to
Natu of offerin ng plete prog ved ts feasibilit Balance amount and
Project raise proce g used end of g achieve the
re invest g offerin d or ress duri achie y; if any reasons thereof
d eds procee as of the conditi plan of
ment is procee g not meet ng ved describe
fund com ds the reporti on for investment
involve ds procee s the the by the
s are mitte after end of ng its progress
d ds prog repo the specific
used d for adjust the period intend
ress rting proje reasons
the ment reporti (%) ed use
plan perio ct
proje (1) ng (3) = [Note
ned d
ct period (2)/(1) 1]
55 / 2152023 Semiannual Report
(2)
As of December 31
2022 the project “R&DR&D
and industrialization of
and
new generation of laser
industrial Proddisplay products” has
ization of uctio Initial
July 3130 31300 27931 Decem N/A been completed which
new n and public
N/A 16 No 0000 0000.0 1086.9 89.24 ber Yes Yes N/A N/A [Note No used the raised funds of
generatio const offerin
2019 0.00 0 9 2022 4] RMB 279.3111 million;
n of laser ructi g
the remaining raised
display on
funds of RMB 51.6167
products
million in total were
[Note 5]
used to supplement the
working capital.The
construction
of the head
office
building
slowed down
due to the
complex
R&D
geological
center at Initial
July 2840 28400 15197 Decem conditions on
the head public
R&D N/A 16 No 0000 0000.0 2898.4 53.51 ber No No the site. This N/A N/A No N/A
office of offerin
2019 0.00 0 3 2023 project may
Appotro g
be fully
nics
implemented
only after the
construction
of the head
office
building is
completed.As a result
56 / 2152023 Semiannual Report
the project
implementati
on is
postponed.Since the
main body of
the head
office
building of
Informati the Company
Oper
on Initial is still under
ation July 7000 Decem
system public 70000 38556 construction
mana N/A 16 No 0000. 55.08 ber No No N/A N/A No N/A
upgrade offerin 000.00 386.63 the
geme 2019 00 2023
and g prerequisites
nt
building for
implementin
g this project
have not
been
satisfied.Supp
leme
nting
the
Supplem work
Initial
entary ing July 3330 33300 33539
public
working capit N/A 16 No 0000 0000.0 5037.6 100.72 N/A Yes Yes N/A N/A N/A No N/A
offerin
capital al 2019 0.00 0 2
g
[Note 2] and
repay
ment
of
loans
Share Initial
July 2000 Septem
repurcha Other public 20000 19377
N/A 16 Yes 0000. 96.89 ber Yes Yes N/A N/A N/A No N/A
se [Note s offerin 000.00 297.59
2019002022
3] g
57 / 2152023 Semiannual Report
Other Initial
July 4247
excess Other public 42470
N/A 16 N/A 0797. - - N/A No Yes N/A N/A N/A No N/A
offering s offerin 797.73
201973
proceeds g
[Note 1] On March 18 2022 the Company held the 9th meeting of the second Board of Directors and the 8th meeting of the second Board of Supervisors approving
the Proposal on Postponing Some Investment Projects through deliberation and agreeing the Company to adjust the time for some investment projects to reach the
working condition for its intended use.[Note 2] During the period of implementation of the Company’s investment projects the total wealth management returns of RMB 2.3950 million were realized
from the special account of supplementary working capital which have been put into use in the project (supplementary working capital). The special account for
supplementary working capital (Huaxia Bank Co. Ltd. Shenzhen Houhai Branch account number: 10869000000251463) has been deregistered on July 30 2020.The interest RMB 1418.11 incurred after completion of this project has been paid to the basic account of the Company to be used as supplementary working capital.[Note 3] The Company held the 9th meeting of the second Board of Directors and the 1st extraordinary general meeting of shareholders in 2022 respectively on
March 18 2022 and March 29 2022 approving the Proposal on Repurchase of Shares of the Company through Call Auction through deliberation and agreeing the
Company to use the excess offering proceeds to repurchase some RMB-denominated ordinary shares (A shares) issued by it through call auction via the trading
system of the Shanghai Stock Exchange.[Note 4] As of December 31 2022 the project “R&D and industrialization of new generation of laser display products” has been completed for which the
incremental sales revenue of RMB 50.5068 million before and after the investment in this project was taken as the indicator of the benefits realized from the project.[Note 5] On April 26 2023 the Company held the 19th meeting of the second Board of Directors and the 18th meeting of the second Board of Supervisors
respectively which deliberated and approved the Proposal on the Completion of Some of the Company’s Fundraising Projects and Permanent Replenishment ofWorking Capital with the Surplus Raised Funds and agreed that the Company would close the fundraising project “R&D and industrialization of new generation oflaser display products” and a total of RMB 51.6167 million saved (as of December 31 2022) shall be used for permanent replenishment of the working capital. As
at the date of remittance the actual balance in the special account was RMB 52.0022 million (including the interest income and wealth management income net of
handling fees). This special account (Hua Xia Bank Co. Ltd. Shenzhen Houhai Branch account No.: 10869000000305964) has been deregistered on May 17 2023
and the funds have been transferred to the general account of the Company.
58 / 2152023 Semiannual Report
(III) Change in investment projects during the reporting period
□ Applicable√ N/A
59 / 2152023 Semiannual Report
(IV) Other information about the use of offering proceeds during the reporting period
1. Early investment and replacement of projects invested with offering proceeds
□ Applicable√ N/A
2. Supplement the working capital with idle offering proceeds
□ Applicable√ N/A
3. Cash management of idle offering proceeds and investment in relevant products
√ Applicable□ N/A
The Proposal on Cash Management of Temporarily Idle Offering Proceeds was approved through
deliberation at the 14th meeting of the second Board of Directors and the 13th meeting of the second
Board of Supervisors held by the Company on June 29 2022. It was approved that without affecting the
normal implementation of the investment plan for offering proceeds a maximum of RMB 469 million
temporarily idle offering proceeds may be put under cash management to purchase investment products
featuring high security good liquidity and guarantee of the principal (including but not limited to
structural deposits agreement deposits notice deposits term deposits large-amount deposit note and
return notes) where the total amount for purchasing return notes shall be no more than RMB 100 million
for no more than 12 months which shall be effective within 12 months from the review and approval by
the Board of Directors and Board of Supervisors.The Proposal on Cash Management of Temporarily Idle Offering Proceeds was approved through
deliberation at the 20th meeting of the second Board of Directors and the 19th meeting of the second
Board of Supervisors held by the Company on June 25 2023. It was approved that without affecting the
normal implementation of the investment plan for offering proceeds a maximum of RMB 249.00
million (inclusive) temporarily idle offering proceeds may be put under cash management to purchase
investment products featuring high security good liquidity and guarantee of the principal (including but
not limited to structural deposits notice deposits term deposits large-amount deposit note and return
notes) where the total amount for purchasing return notes shall be no more than RMB 100 million
(inclusive) which shall be effective within 12 months from the review and approval.
4. Supplement working capital or repay bank loans with excess offering proceeds
□ Applicable√ N/A
5. Others
√ Applicable□ N/A
1. On March 18 2022 the Company held the 9th meeting of the second Board of Directors and the
8th meeting of the second Board of Supervisors approving the Proposal on Postponing Some Investment
Projects through deliberation and agreeing the Company to adjust the time for some investment projects
to reach the working condition for its intended use. Refer to the Announcement on Postponing Some
Investment Projects (No. 2022-019) disclosed by the Company at the website of the Shanghai Stock
Exchange (www.sse.com.cn) on March 21 2022.
2. The Company held the 9th meeting of the second Board of Directors and the 1st extraordinary
general meeting of shareholders in 2022 respectively on March 18 2022 and March 29 2022 approving
the Proposal on Repurchase of Shares of the Company through Call Auction through deliberation and
60 / 2152023 Semiannual Report
agreeing the Company to use the excess offering proceeds to repurchase some RMB-denominated
ordinary shares (A shares) issued by it through call auction via the trading system of the Shanghai Stock
Exchange with the repurchase funds totaling not less than RMB 10 million (inclusive) but not more than
RMB 20 million (inclusive) the repurchase price not exceeding RMB 26.89 per share (inclusive namely
the price after adjustments to equity distribution in 2021) and the repurchase period being six months
from the date on which this repurchase plan is approved by the general meeting of shareholders.As of December 31 2022 the Company repurchased 900000 shares in the aggregate through call
auction representing 0.1969% of the Company’s total share capital and paid RMB 19377297.59
(including stamp duty commissions and other transaction fees). The repurchase of shares has been
completed.
3. The Company held the 14th meeting of the second Board of Directors and the 13th meeting of the
second Board of Supervisors on June 29 2022 approving the Proposal on Adjusting Internal Investment
Structure of Some Investment Projects through deliberation and agreeing the Company to adjust theinternal investment structure of the investment project “R&D and industrialization of new generation oflaser display products” and to decrease the “equipment purchase expenses” by RMB 53.802 million and
increase the “R&D expenditures” by RMB 53.802 million.
4. The Company held the 19th meeting of the second Board of Directors and the 18th meeting of the
second Board of Supervisors and the annual general meeting for 2022 on April 26 2023 and May 19
2023 respectively approving the Proposal on Adjusting Internal Investment Structure of Some
Investment Projects through deliberation and agreeing the Company to adjust the internal investment
structure of the investment project “R&D center at the head office of Appotronics” and to decrease the
“equipment purchase expenses” by RMB 65.0000 million and increase the “R&D expenditures” by
RMB 65.0000 million.XIII. Other significant matters
□ Applicable√ N/A
61 / 2152023 Semiannual Report
Section VII Changes in Shares and Shareholders
I. Changes in shares
(I) Statement of changes in shares
1. Statement of changes in shares
During the reporting period there is no change in total ordinary shares and share capital structure of the
Company.
2. Explanation about changes in shares
□ Applicable√ N/A
3. Effect of the changes in shares on the earnings per share net assets per share and other
financial indicators for the duration after the reporting period to the disclosure date of the
semiannual report
√ Applicable □ N/A
On July 5 2023 the Company disclosed the Announcement on the Vesting Result for the First
Vesting Period in the Initial Grant of the Restricted Share Incentive Plan 2022 and Listing of Shares
(No. 2023-029). The Company registered a total of 3299000 newly vested shares for the first vesting
period in the initial grant of the restricted share incentive plan 2022. These shares became available for
trading on July 7 2023 increasing the Company’s total shares from 457107538 shares to 460406538
shares.From the end of the reporting period to the disclosure date of this semiannual report changes in the
Company’s shares increased the diluted earnings per shares and net assets per share attributable to
ordinary shareholders of the Company.
4. Other information disclosed as the Company deems necessary or required by the securities
regulatory authority
□ Applicable√ N/A
(II) Changes in non-tradable shares
□ Applicable√ N/A
II. Shareholders
(I) Total number of shareholders:
Total number of ordinary shareholders as of the end of the
14576
reporting period (accounts)
Total number of shareholders of preferred shares whose
voting right has been restituted as of the end of the reporting 0
period (accounts)
Total number of shareholders holding shares with special
0
voting rights as of the end of the reporting period (accounts)
Number of holders of depository receipts
□ Applicable√ N/A
(II) Shares held by top 10 shareholders and top 10 holders of tradable shares as of the end of the
reporting period
Shares held by top 10 shareholders through both the general securities account and the customer
credit transaction guarantee securities account of a securities company
62 / 2152023 Semiannual Report
□ Applicable√ N/A
Unit: Share
Shares held by top 10 shareholders
Number of Shares
non- pledged
tradable marked or
Balance
Numb shares frozen
Change of shares
er of held
Sharehold during held as
non- including Sharehold
er the of the Percenta
tradab the shares er
(Full reporti end of ge (%) Shar
le lent out nature
name) ng the e Quantit
shares under the
period reportin statu y
held refinancin
g period s
g
arrangeme
nt
Shenzhen Domestic
Appotroni non-state-
797626 Non
cs 0 17.45 0 0 0 owned
79 e
Holdings corporatio
Limited n
Shenzhen
Yuanshi
Domestic
Laser
non-state-
Industrial 241395 Non
0 5.28 0 0 0 owned
Investment 00 e
corporatio
Consulting
n
Partnershi
p (LP)
Nantong
Strait Domestic
Appotroni non-state-
227803 Non
cs 0 4.98 0 0 0 owned
29 e
Investment corporatio
Partnershi n
p (LP)
Shenzhen
Domestic
Appotroni
non-state-
cs Daye 204302 Non
0 4.47 0 0 0 owned
Investment 50 e
corporatio
Partnershi
n
p (LP)
Shenzhen
Domestic
Appotroni
non-state-
cs Hongye 156623 Non
0 3.43 0 0 0 owned
Investment 74 e
corporatio
Partnershi
n
p (LP)
Shenzhen
Domestic
Jinleijing
non-state-
Investment 123531 Non
0 2.70 0 0 0 owned
Limited 06 e
corporatio
Partnershi
n
p (LP)
63 / 2152023 Semiannual Report
Shenzhen
Appotroni Domestic
cs non-state-
103948 Non
Chengye 0 2.27 0 0 0 owned
46 e
Consulting corporatio
Partnershi n
p (LP)
Bank of
China Co.Ltd. -
Stable
Income - 971054 Non
2.12 0 0 0 Others
Bond 222857 4 e
Securities
Investment
Fund of E
Fund
Shenzhen
Guochuan
g Chenggu
Capital
Manageme Domestic
nt Co. non-state-
+42860 811436 Non
Ltd. - 1.78 0 0 0 owned
0 9 e
Shenzhen corporatio
Chengguh n
ui Equity
Investment
Partnershi
p (LP)
Industrial
Bank Co.Ltd. -
Tianhong
+49707 754068 Non
Yongli 1.65 0 0 0 Others
7 8 e
Bond
Securities
Investment
Fund
Shares held by top 10 holders of tradable shares
Number of Type and number of shares
Shareholder tradable shares
Category Quantity
held
Shenzhen Appotronics Holdings RMB-denominated
7976267979762679
Limited ordinary share
Shenzhen Yuanshi Laser Industrial
RMB-denominated
Investment Consulting Partnership 24139500 24139500
ordinary share
(LP)
Nantong Strait Appotronics RMB-denominated
2278032922780329
Investment Partnership (LP) ordinary share
Shenzhen Appotronics Daye RMB-denominated
2043025020430250
Investment Partnership (LP) ordinary share
Shenzhen Appotronics Hongye RMB-denominated
1566237415662374
Investment Partnership (LP) ordinary share
Shenzhen Jinleijing Investment RMB-denominated
1235310612353106
Limited Partnership (LP) ordinary share
64 / 2152023 Semiannual Report
Shenzhen Appotronics Chengye RMB-denominated
1039484610394846
Consulting Partnership (LP) ordinary share
Bank of China Co. Ltd. - Stable
RMB-denominated
Income Bond Securities Investment 9710544 9710544
ordinary share
Fund of E Fund
Shenzhen Guochuang Chenggu
Capital Management Co. Ltd. - RMB-denominated
81143698114369
Shenzhen Chengguhui Equity ordinary share
Investment Partnership (LP)
Industrial Bank Co. Ltd. - Tianhong
RMB-denominated
Yongli Bond Securities Investment 7540688 7540688
ordinary share
Fund
Description of special repurchase
shareholders among top 10 N/A
shareholders
Description of entrusting voting
right entrusted voting right and
N/A
waiver of voting right of the
shareholders above
1. As of June 30 2023 the following entities in top 10
shareholders of the Company constituted persons acting in
concert: Shenzhen Appotronics Holdings Limited Shenzhen
Yuanshi Laser Industrial Investment Consulting Partnership
(LP) Shenzhen Appotronics Daye Investment Partnership
(LP) Shenzhen Appotronics Hongye Investment Partnership
Affiliates or concert parties among
(LP) Shenzhen Jinleijing Investment Limited Partnership (LP)
the shareholders stated above
and Shenzhen Appotronics Chengye Consulting Partnership
(LP);
2. Except for the above we are not aware whether there are
affiliates or concert parties as defined in the Administrative
Measures for the Acquisition of the Listed Companies among
other shareholders.Holders of preferred shares whose
voting rights have been restituted
N/A
and the number of shares held by
them
Top 10 holders of non-tradable shares and lock-up period
□ Applicable√ N/A
Statement of top 10 holders of domestic depository receipts as of the end of the reporting period
□ Applicable√ N/A
Number of non-tradable depository receipts held by top 10 holders and lock-up period
□ Applicable√ N/A
(III) Statement of top 10 shareholders by number of votes held as of the end of the reporting
period
□ Applicable√ N/A
(IV) Strategic investors or general corporations that become top 10 shareholders as a result of
allotment of new shares/depository receipts
□ Applicable√ N/A
65 / 2152023 Semiannual Report
III. Directors supervisors senior officers and key technical staff
(I) Changes in shareholding 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
Other information
□ Applicable√ N/A
(II) Share incentives granted to directors supervisors senior officers and key technical staff
during the reporting period
1.Share options
□ Applicable√ N/A
2.Type I restricted shares
□ Applicable√ N/A
3.Type II restricted shares
√ Applicable□ N/A
Unit: Share
Number of Number Number
Number of
restricted of of
Number of restricted
shares restricted restricted
restricted shares
already shares shares
shares already
granted as that that have
Name Title granted granted as
at the could be been
during the of the end of
beginning vested in vested in
reporting the
of the the the
period reporting
reporting reporting reporting
period
period period period
Chairman & General
LI Yi 3500000 0 0 0 3500000
Manager
ZHANG Director Deputy
70000001000000700000
Wei General Manager
WANG Director Financial
4705600500000470560
Yingxia Director
CHEN
Board Secretary 432750 0 75000 0 432750
Yasha
YU Xin Key technical staff 1070000 0 100000 0 1070000
HU Fei Key technical staff 540000 0 75000 0 540000
WANG
Key technical staff 630000 0 75000 0 630000
Lin
WANG
Key technical staff 632000 0 75000 0 632000
Zeqin
GUO
Key technical staff 626000 0 75000 0 626000
Zuqiang
Total - 8601310 0 625000 0 8601310
66 / 2152023 Semiannual Report
(III) Other information
□ Applicable√ N/A
IV. Changes in the controlling shareholder or actual controller
□ Applicable√ N/A
V. Implementation of and changes in arrangements relating to depository receipts during the
reporting period
□ Applicable√ N/A
VI. Shares with special voting rights
□ Applicable√ N/A
67 / 2152023 Semiannual Report
Section VIII Preferred Shares
□ Applicable√ N/A
68 / 2152023 Semiannual Report
Section IX Bonds
I. Enterprise bonds corporate bonds and non-financial corporate debt financing instruments
□ Applicable√ N/A
II. Convertible corporate bonds
□ Applicable√ N/A
69 / 2152023 Semiannual Report
Section X Financial Report
I. Auditor’s report
□ Applicable√ N/A
II. Financial statements
Consolidated Balance Sheet
June 30 2023
Prepared by: Appotronics Corporation Limited
Unit: Yuan Currency: RMB
Item Note June 30 2023 December 31 2022
Current Assets:
Monetary funds VII. 1 1279193927.48 1355882208.63
Balances with clearing agencies
Placements with banks and other
financial institutions
Held-for-trading financial assets VII. 2 564877200.00 352880000.00
Derivative financial assets
Notes receivable VII. 4 3404025.55 2234687.77
Accounts receivable VII. 5 206727257.21 208260235.79
Receivables financing VII. 6 15223418.33 4279041.00
Prepayments VII. 7 34764381.68 48445976.86
Premiums receivable
Amounts receivable under reinsurance
contracts
Reinsurer’s share of insurance contract
reserves
Other receivables VII. 8 26973222.84 26331721.55
Including: Interest receivable
Dividend receivable 14307084.00 13789908.00
Financial assets purchased under resale
agreements
Inventories VII. 9 757719004.42 865639961.79
Contract assets VII. 10 1608301.56 1061581.35
Assets held for sale
Non-current assets due within 1 year VII. 12 28306652.31 13431554.82
Other current assets VII. 13 95956187.10 106502611.79
Total current assets 3014753578.48 2984949581.35
Non-current Assets:
Loans and advances
Debt investments
Other debt investments
Long-term receivables VII. 16 22198629.19 11524193.80
Long-term equity investment VII. 17 156523146.05 162394917.57
Investment in other equity instruments VII. 18 7075419.38 7075419.38
Other non-current financial assets
Investment property
Fixed assets VII. 21 379962412.96 427539718.53
Construction in progress VII. 22 314382210.87 278978057.73
Productive biological assets
Oil and gas assets
Right-of-use assets VII. 25 55804553.57 62255670.29
Intangible assets VII. 26 285586197.40 290341693.08
70 / 2152023 Semiannual Report
Development expenditure
Goodwill
Long-term prepaid expenses VII. 29 7285477.87 5990984.03
Deferred tax assets VII. 30 78069270.62 89730936.02
Other non-current assets VII. 31 18633790.53 12569088.37
Total non-current assets 1325521108.44 1348400678.80
Total assets 4340274686.92 4333350260.15
Current Liabilities:
Short-term borrowings VII. 32 129604426.40 129589634.03
Loans from the central bank
Taking from banks and other financial
institutions
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable VII. 35 80254013.57 201299388.57
Accounts payable VII. 36 275507953.57 276845321.28
Advance from customers VII. 37 99404605.97 113834728.10
Contract liabilities VII. 38 39465849.54 37285920.43
Financial assets sold under repurchase
agreements
Customer deposits and deposits from
banks and other financial institutions
Funds from securities trading agency
Funds from underwriting securities
agency
Employee benefits payable VII. 39 29744716.45 58470960.55
Taxes payable VII. 40 6453066.16 8272768.90
Other payables VII. 41 119907648.52 56662357.08
Including: Interest payable
Dividend payable 797774.22
Fees and commissions payable
Amounts payable under reinsurance
contracts
Liabilities held for sale
Non-current liabilities due within 1 year VII. 43 178360640.39 178031817.37
Other current liabilities VII. 44 9799529.40 28383608.37
Total current liabilities 968502449.97 1088676504.68
Non-current Liabilities:
Insurance contract reserves
Long-term borrowings VII. 45 531486901.70 403720542.45
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities VII. 47 27260832.49 34319284.23
Long-term payables
Long-term employee benefits payable
Provisions VII. 50 53463551.36 56463882.87
Deferred income VII. 51 5112246.23 8651422.26
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 617323531.78 503155131.81
Total liabilities 1585825981.75 1591831636.49
Owners’ Equity (Shareholders’ Equity):
Paid-in capital (or share capital) VII. 53 457107538.00 457107538.00
Other equity instruments
71 / 2152023 Semiannual Report
Including: Preferred shares
Perpetual bonds
Capital reserve VII. 55 1551466365.12 1530752116.04
Less: Treasury shares VII. 56 19377297.59 19377297.59
Other comprehensive income VII. 57 12451180.91 5736897.41
Special reserve
Surplus reserve VII. 59 75519782.06 75519782.06
General risk reserve
Retained profits VII. 60 648203885.57 597924451.67
Total owners’ (or shareholders’) equity
attributable to owners of the parent 2725371454.07 2647663487.59
company
Minority interests 29077251.10 93855136.07
Total owners’ (or shareholders’)
2754448705.172741518623.66
equity
Total liabilities and owners’ (or
4340274686.924333350260.15
shareholders’) equity
Principal of the Company: LI Yi Chief Accountant: WANG Yingxia Person in Charge of the
Accounting Body: WANG Yingxia
Balance Sheet of the Parent Company
June 30 2023
Prepared by: Appotronics Corporation Limited
Unit: Yuan Currency: RMB
Item Note June 30 2023 December 31 2022
Current Assets:
Monetary funds 708529158.47 675429827.76
Held-for-trading financial assets 556410000.00 352880000.00
Derivative financial assets
Notes receivable 3404025.55 2234687.77
Accounts receivable XVII. 1 640188219.65 688004828.29
Receivables financing 8441068.33 2399041.00
Prepayments 8174839.77 11009592.85
Other receivables XVII. 2 14803374.55 7556623.71
Including: Interest receivable
Dividend receivable
Inventories 342827948.28 390906125.18
Contract assets 1608301.56 1061581.35
Assets held for sale
Non-current assets due within 1 year 1388837.66 1334808.66
Other current assets 25403663.47 27531860.98
Total current assets 2311179437.29 2160348977.55
Non-current Assets:
Debt investments
Other debt investments
Long-term receivables 993013.56 944108.40
Long-term equity investment XVII. 3 466035120.86 450239347.45
Investment in other equity instruments 7075419.38 7075419.38
Other non-current financial assets
Investment property
Fixed assets 64584608.06 66271459.60
Construction in progress 309377852.19 270837599.21
Productive biological assets
72 / 2152023 Semiannual Report
Oil and gas assets
Right-of-use assets 41175572.84 52738418.54
Intangible assets 288593244.60 294108453.73
Development expenditure
Goodwill
Long-term prepaid expenses 1136835.80 487991.29
Deferred tax assets 17162782.96 20220930.66
Other non-current assets 16605003.36 9952305.78
Total non-current assets 1212739453.61 1172876034.04
Total assets 3523918890.90 3333225011.59
Current Liabilities:
Short-term borrowings 60038850.01 60043166.67
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 33608729.87 58301159.76
Accounts payable 289751340.58 275547785.20
Advance from customers
Contract liabilities 17901395.11 19945270.00
Employee benefits payable 16396021.22 35920277.61
Taxes payable 1883828.76 5339271.71
Other payables 77053825.14 9722655.99
Including: Interest payable
Dividend payable 797774.22
Liabilities held for sale
Non-current liabilities due within 1 year 50590576.11 24463018.64
Other current liabilities 1429595.96 2666327.90
Total current liabilities 548654162.76 491948933.48
Non-current Liabilities:
Long-term borrowings 249181118.32 148087667.43
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 19976948.15 29114281.86
Long-term payables
Long-term employee benefits payable
Provisions 22959255.63 24939050.33
Deferred income 2657700.76 5630959.06
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 294775022.86 207771958.68
Total liabilities 843429185.62 699720892.16
Owners’ Equity (Shareholders’ Equity):
Paid-in capital (or share capital) 457107538.00 457107538.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve 1561226098.34 1541789874.63
Less: Treasury shares 19377297.59 19377297.59
Other comprehensive income
Special reserve
Surplus reserve 74242241.33 74242241.33
Retained profits 607291125.20 579741763.06
Total owners’ (or shareholders’)
2680489705.282633504119.43
equity
Total liabilities and owners’ (or 3523918890.90 3333225011.59
73 / 2152023 Semiannual Report
shareholders’) equity
Principal of the Company: LI Yi Chief Accountant: WANG Yingxia Person in Charge of the
Accounting Body: WANG Yingxia
Consolidated Income Statement
Jan. - Jun. 2023
Unit: Yuan Currency: RMB
Item Note Half year of 2023 Half year of 2022
I. Total operating income 1073249037.75 1269322202.11
Including: Operating income VII. 61 1073249037.75 1269322202.11
Interest income
Premiums earned
Fee and commission income
II. Total operating costs 1012145838.42 1227121118.16
Including: Operating costs VII. 61 668659467.49 884560607.88
Interest expenses
Fee and commission expenses
Surrenders
Claims and policyholder benefits (net
of amounts recoverable from reinsurers)
Net withdrawal of insurance contract
reserves
Insurance policyholder dividends
Expenses for reinsurance accepted
Taxes and surcharges VII. 62 4005751.53 4636401.10
Selling expenses VII. 63 143399660.02 120302361.36
Administrative expenses VII. 64 86696223.82 106015842.36
R&D expenses VII. 65 126406142.12 114959786.37
Financial expenses VII. 66 -17021406.56 -3353880.91
Including: Interest expense 7061642.05 12510421.43
Interest income 15604073.30 6740942.87
Add: Other income VII. 67 23608983.31 21565810.43
Investment income (loss is indicated
VII. 68 -2806106.20 -4567473.71
by “-”)
Including: Income from investments in
-8071814.75-10562840.53
associates and joint ventures
Gains from derecognition of
financial assets at amortized assets (loss is
indicated by “-”)
Foreign exchange gains (loss is
indicated by “-”)
Gains from net exposure hedges (loss
is indicated by “-”)
Gains from changes in fair values (loss
VII. 70 -1634000.00
is indicated by “-”)
Losses of credit impairment (loss is
VII. 71 -3513083.07 1393164.79
indicated by “-”)
Impairment losses of assets (loss is
VII. 72 -29013931.74 -19822363.99
indicated by “-”)
Gains from disposal of assets (loss is
VII. 73 15262.15 17213.16
indicated by “-”)
III. Operating profit (loss is indicated by “-”) 49394323.78 39153434.63
Add: Non-operating income VII. 74 9424347.83 167888.31
Less: Non-operating expenses VII. 75 641261.92 1511909.47
IV. Total profits (total losses are indicated by 58177409.69 37809413.47
74 / 2152023 Semiannual Report
“-”)
Less: Income tax expenses VII. 76 18649943.64 19269471.17
V. Net profits (net losses are indicated by “-”) 39527466.05 18539942.30
(I) Categorized by the continuity of operation
1. Net profits from continuing operations 39527466.05 18539942.30
(net losses are indicated by “-”)
2. Net profits from discontinued
operations (net losses are indicated by “-”)
(II) Categorized by the ownership
1. Net profits attributable to shareholders
of the parent company (net losses are 74914640.95 45966481.10
indicated by “-”)
2. Profits or losses attributable to
minority shareholders (net losses are indicated -35387174.90 -27426538.80
by “-”)
VI. Other comprehensive income net of tax VII. 77 5158805.71 13583493.02
(I) Other comprehensive income that can be
attributable to owners of the parent company 6714283.50 13734264.61
net of tax
1. Other comprehensive income that
cannot be reclassified subsequently to profit or
loss
(1) Changes from remeasurement of defined
benefit plans
(2) Other comprehensive income that cannot
be reclassified to profit or loss under the
equity method
(3) Changes in fair value of investments in
other equity instruments
(4) Changes in fair value of enterprises’ own
credit risks
2. Other comprehensive income that will
6714283.5013734264.61
be reclassified to profit or loss
(1) Other comprehensive income that will be
reclassified to profit or loss under the equity -4176328.87 -9668892.26
method
(2) Changes in fair value of other debt
investments
(3) Amount of financial assets reclassified to
other comprehensive income
(4) Provision for credit impairment of other
debt investments
(5) Reserve for cash flow hedges
(6) Exchange differences on translation of
financial statements denominated in foreign 10890612.37 23403156.87
currencies
(7) Others
(II) Other comprehensive income that can
be attributable to minority shareholders net of -1555477.79 -150771.59
tax
VII. Total comprehensive income 44686271.76 32123435.32
(I) Total comprehensive income that can be
81628924.4559700745.71
attributable to owners of the parent company
(II) Total comprehensive income that can be
-36942652.69-27577310.39
attributable to minority shareholders
VIII. Earnings per share:
75 / 2152023 Semiannual Report
(I) Basic earnings per share (RMB/share) 0.16 0.10
(II) Diluted earnings per share (RMB/share) 0.16 0.10
In the event of business combinations involving enterprises under common control the net profits
realized prior to the combination by the party being absorbed is: RMB 0.00 and the net profits realized
in the last period by the party being absorbed is: RMB 0.00.Principal of the Company: LI Yi Chief Accountant: WANG Yingxia Person in Charge of the
Accounting Body: WANG Yingxia
Income Statement of the Parent Company
Jan. - Jun. 2023
Unit: Yuan Currency: RMB
Note Half year of Half year of
Item
20232022
I. Operating income XVII. 4 542956800.34 649645354.34
Less: Operating costs XVII. 4 368571473.83 432684792.22
Taxes and surcharges 3199879.01 2709645.68
Selling expenses 37056481.71 34971927.98
Administrative expenses 46709472.09 70191714.62
R&D expenses 70859871.98 74661621.25
Financial expenses -16034801.70 -12346217.67
Including: Interest expense 3133969.39 1758702.76
Interest income 14313472.46 9044664.08
Add: Other income 19359728.30 12418751.65
Investment income (loss is indicated by “-”) XVII. 5 12717708.55 5884922.38
Including: Income from investments in
associates and joint ventures
Gains from derecognition of financial
assets at amortized assets (loss is indicated by “-”)
Gains from net exposure hedges (loss is
indicated by “-”)
Gains from changes in fair values (loss is
-1634000.00
indicated by “-”)
Losses of credit impairment (loss is indicated
-2891569.80-970107.59
by “-”)
Impairment losses of assets (loss is indicated
-7961985.67-7784985.64
by “-”)
Gains from disposal of assets (loss is indicated
12718.43
by “-”)
II. Operating profit (loss is indicated by “-”) 53831023.23 54686451.06
Add: Non-operating income 362544.72 94307.77
Less: Non-operating expenses 216230.87 1451707.15
III. Total profits (total losses are indicated by “-”) 53977337.08 53329051.68
Less: Income tax expenses 1792767.89 11694579.04
IV. Net profits (net losses are indicated by “-”) 52184569.19 41634472.64
(I) Net profits from continuing operations (net
52184569.1941634472.64
losses are indicated by “-”)
(II) Net profits from discontinued operations (net
losses are indicated by “-”)
V. Other comprehensive income net of tax
(I) Other comprehensive income that cannot be
reclassified subsequently to profit or loss
1. Changes from remeasurement of defined
benefit plans
2. Other comprehensive income that cannot be
reclassified to profit or loss under the equity method
76 / 2152023 Semiannual Report
3. Changes in fair value of investments in other
equity instruments
4. Changes in fair value of enterprises’ own
credit risks
(II) Other comprehensive income that will be
reclassified to profit or loss
1. Other comprehensive income that will be
reclassified to profit or loss under the equity method
2. Changes in fair value of other debt
investments
3. Amount of financial assets reclassified to
other comprehensive income
4. Provision for credit impairment of other debt
investments
5. Reserve for cash flow hedges
6. Exchange differences on translation of
financial statements denominated in foreign
currencies
7. Others
VI. Total comprehensive income 52184569.19 41634472.64
VII. Earnings per share:
(I) Basic earnings per share (RMB/share)
(II) Diluted earnings per share (RMB/share)
Principal of the Company: LI Yi Chief Accountant: WANG Yingxia Person in Charge of the
Accounting Body: WANG Yingxia
Consolidated Cash Flow Statement
Jan. - Jun. 2023
Unit: Yuan Currency: RMB
Item Note Half year of 2023 Half year of 2022
I. Cash Flows from Operating Activities:
Cash receipts from the sale of goods and the
1117055783.681429234114.59
rendering of services
Net increase in customer deposits and
deposits from banks and other financial
institutions
Net increase in loans from the central bank
Net increase in taking from banks and other
financial institutions
Cash receipts from premiums under direct
insurance contracts
Net cash receipts from reinsurance business
Net cash receipts from policyholders’
deposits and investment contract liabilities
Cash receipts from interest fees and
commissions
Net increase in taking from banks
Net increase in financial assets sold under
repurchase arrangements
Net cash received from securities trading
agencies
Receipts of tax refunds 4435896.68 3189929.64
Other cash receipts relating to operating
VII. 78 90837327.64 34395802.37
activities
Sub-total of cash inflows from operating 1212329008.00 1466819846.60
77 / 2152023 Semiannual Report
activities
Cash payments for goods purchased and
678514829.901065198956.89
services received
Net increase in loans and advances to
customers
Net increase in balance with the central bank
and due from banks and other financial
institutions
Cash payments for claims and
policyholders’ benefits under direct insurance
contracts
Net increase in placements with banks and
other financial institutions
Cash payments for interest fees and
commissions
Cash payments for insurance policyholder
dividends
Cash payments to and on behalf of
235611354.36226213079.42
employees
Payments of various types of taxes 30029161.72 47664436.15
Other cash payments relating to operating VII. 78
153434829.89206296733.81
activities
Sub-total of cash outflows from operating
1097590175.871545373206.27
activities
Net cash flow from operating activities 114738832.13 -78553359.67
II. Cash Flows from Investing Activities:
Cash receipts from disposals and recovery of
765000000.001047763409.68
investments
Cash receipts from investment income 5265708.55 5995366.82
Net cash receipts from disposals of fixed
assets intangible assets and other long-term 30975.00 2210.00
assets
Net cash receipts from disposals of
subsidiaries and other business units
Other cash receipts relating to investing
activities
Sub-total of cash inflows from investing
770296683.551053760986.50
activities
Cash payments to acquire or construct fixed
assets intangible assets and other long-term 41659342.63 53593529.31
assets
Cash payments to acquire investments 976816480.00 995000000.00
Net increase in pledged loans receivables
Net cash payments for acquisitions of
11831365.16
subsidiaries and other business units
Other cash payments relating to investing
activities
Sub-total of cash outflows from investing
1030307187.791048593529.31
activities
Net cash flows from investment
-260010504.245167457.19
activities
III. Cash Flows from Financing Activities:
Cash receipts from capital contributions 50609959.00 8866332.86
Including: Cash receipts from capital
contributions from minority shareholders of
subsidiaries
78 / 2152023 Semiannual Report
Cash receipts from borrowings 265000000.00 260569353.56
Other cash receipts relating to financing
activities
Sub-total of cash inflows from financing
315609959.00269435686.42
activities
Cash repayments of borrowings 137959994.00 70016183.00
Cash payments for distribution of dividends
49596180.4457206348.66
or profits or settlement of interest expenses
Including: Payments for distribution of
dividends or profits to minority shareholders of 11040000.00
subsidiaries
Other cash payments relating to financing
VII. 78 17407047.01 17704289.67
activities
Sub-total of cash outflows from financing
204963221.45144926821.33
activities
Net cash flows from financing activities 110646737.55 124508865.09
IV. Effect of Foreign Exchange Rate
8274666.009162860.18
Changes on Cash and Cash Equivalents
V. Net Increase in Cash and Cash
-26350268.5560285822.80
Equivalents
Add: Opening balance of cash and cash
1254582403.12891195166.73
equivalents
VI. Closing Balance of Cash and Cash
1228232134.57951480989.53
Equivalents
Principal of the Company: LI Yi Chief Accountant: WANG Yingxia Person in Charge of the
Accounting Body: WANG Yingxia
Cash Flow Statement of the Parent Company
Jan. - Jun. 2023
Unit: Yuan Currency: RMB
Item Note Half year of 2023 Half year of 2022
I. Cash Flows from Operating Activities:
Cash receipts from the sale of goods and the
631177814.33682350809.37
rendering of services
Receipts of tax refunds 1915638.25 329661.66
Other cash receipts relating to operating
34660128.0942069540.58
activities
Sub-total of cash inflows from operating
667753580.67724750011.61
activities
Cash payments for goods purchased and
345900092.57519893495.98
services received
Cash payments to and on behalf of
147052438.69136476115.67
employees
Payments of various types of taxes 12354746.49 25813452.99
Other cash payments relating to operating
36687871.7351239349.11
activities
Sub-total of cash outflows from operating
541995149.48733422413.75
activities
Net cash flow from operating activities 125758431.19 -8672402.14
II. Cash Flows from Investing Activities:
Cash receipts from disposals and recovery of
765000000.00877000000.00
investments
Cash receipts from investment income 12717708.55 5884922.38
Net cash receipts from disposals of fixed
24975.00
assets intangible assets and other long-term
79 / 2152023 Semiannual Report
assets
Net cash receipts from disposals of
subsidiaries and other business units
Other cash receipts relating to investing
activities
Sub-total of cash inflows from investing
777742683.55882884922.38
activities
Cash payments to acquire or construct fixed
assets intangible assets and other long-term 35226743.48 46538785.01
assets
Cash payments to acquire investments 976818280.00 935000000.00
Net cash payments for acquisitions of
subsidiaries and other business units
Other cash payments relating to investing
activities
Sub-total of cash outflows from investing
1012045023.48981538785.01
activities
Net cash flows from investment
-234302339.93-98653862.63
activities
III. Cash Flows from Financing Activities:
Cash receipts from capital contributions 50609959.00 8866332.86
Cash receipts from borrowings 135000000.00 80569353.56
Other cash receipts relating to financing
activities
Sub-total of cash inflows from financing
185609959.0089435686.42
activities
Cash repayments of borrowings 5750000.00 500000.00
Cash payments for distribution of dividends
29004483.7846860137.39
or profits or settlement of interest expenses
Other cash payments relating to financing
12747615.6714585132.93
activities
Sub-total of cash outflows from financing
47502099.4561945270.32
activities
Net cash flows from financing activities 138107859.55 27490416.10
IV. Effect of Foreign Exchange Rate
3294539.641342904.11
Changes on Cash and Cash Equivalents
V. Net Increase in Cash and Cash
32858490.45-78492944.56
Equivalents
Add: Opening balance of cash and cash
634972775.32483223615.33
equivalents
VI. Closing Balance of Cash and Cash
667831265.77404730670.77
Equivalents
Principal of the Company: LI Yi Chief Accountant: WANG Yingxia Person in Charge of the
Accounting Body: WANG Yingxia
80 / 2152023 Semiannual Report
Consolidated Statement of Changes in Owners’ Equity
Jan. - Jun. 2023
Unit: Yuan Currency: RMB
Half year of 2023
Equity attributable to owners of the Parent Company
Item Paid-in Other equity instruments
Gene Total
Other Speci Minority
Less: ral owner’s
capital Capital comprehen al Surplus Retained Othe interests Preferr Perpet Treasury risk Sub-total
equity
(or share Otheed ual reserve sive reser reserve profits
rs
rs shares resercapital) shares bonds income ve ve
I. Closing
457107515307521119377295736897.475519785979244526476634893855136274151862
balance of the
38.006.047.5912.061.677.59.073.66
prior year
Add: Changes
in accounting
policies
Correctio
ns of prior
period errors
Business
combination
involving
enterprises
under
common
control
Others
II. Opening
457107515307521119377295736897.475519785979244526476634893855136274151862
balance of the
38.006.047.5912.061.677.59.073.66
current year
III. Changes
for the year -
20714249.06714283.550279433.77707966.412930081.5
(decrease is 64777884
809081
indicated by .97
“-”)
(I) Total 6714283.5 74914640. 81628924.4 - 44686271.7
comprehensiv 0 95 5 36942652 6
81 / 2152023 Semiannual Report
e income .69
(II) Owners’
-
contributions 20714249.0 20714249.0
167952323919016.80
and reduction 8 8.28
in capital
1. Ordinary
shares
contributed by
owners
2. Capital
contribution
from holders
of other
equity
instruments
3. Share-
based
payment 20442747.1 20442747.1 3204207. 23646954.6
recognized in 9 9 49 8
owners’
equity
4. Others - -
271501.89271501.891999943919727937.8.778
(III) Profit - - - -
distribution 24635207. 24635207.0 11040000 35675207.0
055.005
1. Transfer to
surplus
reserve
2. Transfer to
general risk
reserve
3.
----
Distributions
24635207.24635207.01104000035675207.0
to owners (or
055.005
shareholders)
4. Others
(IV) Transfers
within
owners’
equity
82 / 2152023 Semiannual Report
1.
Capitalization
of capital
reserve
2.
Capitalization
of surplus
reserve
3. Loss offset
by surplus
reserve
4. Retained
earnings
carried
forward from
changes in
defined
benefit plans
5. Retained
earnings
carried
forward from
other
comprehensiv
e income
6. Others
(V) Special
reserve
1. Transfer to
special
reserve in the
period
2. Amount
utilized in the
current period
(VI) Others
IV. Closing
4571075155146636193772912451180.75519786482038827253714529077251275444870
balance of the
38.005.127.59912.065.574.07.105.17
current year
83 / 2152023 Semiannual Report
Half year of 2022
Equity attributable to owners of the Parent Company
Item Paid-in Other equity instruments
Gene Total
Other Speci Minority
Less: ral owner’s
capital Capital comprehen al Surplus Retained Othe interests
Preferr Perpet Treasury risk Sub-total equity
(or share Otheed ual reserve sive reser reserve profits
rs
shares reser
capital) rs shares bonds income ve
ve
I. Closing -
452756914006051356265865452771824380645818517209262323667
balance of the 16840512.
01.006.658.318.081.447.949.38
prior year 60
Add: Changes
in accounting
policies
Correcti
ons of prior
period errors
Business
combination
involving
enterprises
under
common
control
Others
II. Opening -
452756914006051356265865452771824380645818517209262323667
balance of the 16840512.
01.006.658.318.081.447.949.38
current year 60
III. Changes
for the year - -
35464460.9321126013734264.44414350.019471062.9
(decrease is 1573115.3 24943287.
1.136161
indicated by 3 15
“-”)
(I) Total -
13734264.45966481.59700745.732123435.3
comprehensiv 27577310.
611012
e income 39
(II) Owners’
contributions 35464460.9 3211260 32253200.7 2634023.2 34887224.0
and reduction 1 .13 8 4 2
in capital
84 / 2152023 Semiannual Report
1. Ordinary
shares 3211260 - -
contributed .13 3211260.13 3211260.13
by owners
2. Capital
contribution
from holders
of other
equity
instruments
3. Share-
based
payment 35464460.9 35464460.9 2634023.2 38098484.1
recognized in 1 1 4 5
owners’
equity
4. Others
(III) Profit - - -
distribution 47539596. 47539596.4 47539596.4
4333
1. Transfer to
surplus
reserve
2. Transfer to
general risk
reserve
3.
---
Distributions
47539596.47539596.447539596.4
to owners (or
4333
shareholders)
4. Others
(IV)
Transfers
within
owners’
equity
1.
Capitalization
of capital
reserve
2.
85 / 2152023 Semiannual Report
Capitalization
of surplus
reserve
3. Loss offset
by surplus
reserve
4. Retained
earnings
carried
forward from
changes in
defined
benefit plans
5. Retained
earnings
carried
forward from
other
comprehensiv
e income
6. Others
(V) Special
reserve
1. Transfer to
special
reserve in the
period
2. Amount
utilized in the
current period
(VI) Others
IV. Closing -
4527569143606959321126056265865437040724824789316022881264270774
balance of the 3106247.9
01.007.56.138.312.751.500.792.29
current year 9
Principal of the Company: LI Yi Chief Accountant: WANG Yingxia Person in Charge of the Accounting Body: WANG Yingxia
86 / 2152023 Semiannual Report
Statement of Changes in Owners’ Equity of the Parent Company
Jan. - Jun. 2023
Unit: Yuan Currency: RMB
Half year of 2023
Paid-in Other equity instruments Other Less: Total
Item capital (or Capital comprehen Special Surplus Retained
share Preferred Perpetual
Treasury owner’s
Others reserve sive reserve reserve profits
capital) shares bonds
shares equity
income
I. Closing balance of the prior 457107538. 15417898 19377297.5 74242241. 57974176 26335041
year 00 74.63 9 33 3.06 19.43
Add: Changes in accounting
policies
Corrections of prior
period errors
Others
II. Opening balance of the 457107538. 15417898 19377297.5 74242241. 57974176 26335041
current year 00 74.63 9 33 3.06 19.43
III. Changes for the year 19436223. 27549362. 46985585.(decrease is indicated by “-”) 71 14 85
(I) Total comprehensive 52184569. 52184569.income 19 19
(II) Owners’ contributions and 19436223. 19436223.reduction in capital 71 71
1. Ordinary shares contributed
by owners
2. Capital contribution from
holders of other equity
instruments
3. Share-based payment 19436223. 19436223.
recognized in owners’ equity 71 71
4. Others
(III) Profit distribution - -
24635207.24635207.
0505
1. Transfer to surplus reserve
2. Distributions to owners (or - -
shareholders) 24635207. 24635207.
0505
3. Others
(IV) Transfers within owners’
87 / 2152023 Semiannual Report
equity
1. Capitalization of capital
reserve
2. Capitalization of surplus
reserve
3. Loss offset by surplus
reserve
4. Retained earnings carried
forward from changes in
defined benefit plans
5. Retained earnings carried
forward from other
comprehensive income
6. Others
(V) Special reserve
1. Transfer to special reserve
in the period
2. Amount utilized in the
current period
(VI) Others
IV. Closing balance of the 457107538. 15612260 19377297.5 74242241. 60729112 26804897
current year 00 98.34 9 33 5.20 05.28
Half year of 2022
Paid-in Other equity instruments Other Less: Total
Item capital (or Capital comprehen Special Surplus Retained
Preferred Perpetual Treasury owner’s share Others reserve sive reserve reserve profits
capital) shares bonds
shares equity
income
I. Closing balance of the prior 452756901. 14101501 54988327. 45399613 23718914
year 00 34.25 58 5.72 98.55
Add: Changes in accounting
policies
Corrections of prior
period errors
Others
II. Opening balance of the 452756901. 14101501 54988327. 45399613 23718914
current year 00 34.25 58 5.72 98.55
III. Changes for the year 38311779. - 29195395.
3211260.13
(decrease is indicated by “-”) 65 5905123.7 73
88 / 2152023 Semiannual Report
9
(I) Total comprehensive 41634472. 41634472.income 64 64
(II) Owners’ contributions 38311779. 35100519.
3211260.13
and reduction in capital 65 52
1. Ordinary shares -
contributed by owners 3211260.13 3211260.1
3
2. Capital contribution from
holders of other equity
instruments
3. Share-based payment 38311779. 38311779.
recognized in owners’ equity 65 65
4. Others
(III) Profit distribution - -
47539596.47539596.
4343
1. Transfer to surplus reserve
2. Distributions to owners (or - -
shareholders) 47539596. 47539596.
4343
3. Others
(IV) Transfers within owners’
equity
1. Capitalization of capital
reserve
2. Capitalization of surplus
reserve
3. Loss offset by surplus
reserve
4. Retained earnings carried
forward from changes in
defined benefit plans
5. Retained earnings carried
forward from other
comprehensive income
6. Others
(V) Special reserve
1. Transfer to special reserve
in the period
2. Amount utilized in the
current period
89 / 2152023 Semiannual Report
(VI) Others
IV. Closing balance of the 452756901. 14484619 54988327. 44809101 24010868
3211260.13
current year 00 13.90 58 1.93 94.28
Principal of the Company: LI Yi Chief Accountant: WANG Yingxia Person in Charge of the Accounting Body: WANG Yingxia
90 / 2152023 Semiannual Report
III. Company profile
1. Profile
√ Applicable□ N/A
Appotronics Corporation Limited (hereinafter referred to as “Company” or “the Company”)
formally named as Appotronics Corporation Ltd. (hereinafter referred to as “Appotronics Ltd.”) was
jointly invested and established by LI Yi and XU Yanzheng registered in Nanshan Branch of Market
Supervision and Regulation Bureau of Shenzhen Municipality on October 24 2006 and headquartered
in Shenzhen City Guangdong Province. The Company holds the business license bearing the credibility
code 91440300795413991N. The Company’s registered capital is RMB 457107538.00 divided into
457107538 shares (RMB 1.00 per share) including 457107538 unrestricted shares. The Company’s
shares were listed for trading on Shanghai Stock Exchange on July 22 2019.The Company can be classified into the computer communication and other electronic equipment
manufacturing industry. It mainly engages in research and development production sales and leasing of
laser display core devices and whole machines and can provide customers with technical research and
development services and customized products. Its products mainly include laser optical engines laser
business and education projectors smart mini projectors laser TV laser large venue projector and laser
digital cinema projector.These financial statements have been approved by the 21st meeting of the second Board of
Directors on August 16 2023 for public disclosure.
2. Scope of consolidated financial statements
√ Applicable□ N/A
The Company has included 35 subsidiaries into the consolidated financial statements for the current
period including CINEAPPO Laser Cinema Technology (Beijing) Co. Ltd. Appotronics Hong Kong
Limited Formovie (Chongqing) Innovative Technology Co. Ltd. Fengmi (Beijing) Technology Co.Ltd. etc. Refer to VIII and IX of Section X for details.IV. Basis of preparation of financial statements
1. Basis of preparation
The Company’s financial statements are prepared on a going-concern basis.
2. Going concern
√ Applicable□ N/A
The Company has detected no events or circumstances that may cast significant doubt upon its ability to
continue as a going concern within 12 months from the reporting period.V. Significant accounting policies and accounting estimates
Specific accounting policies and accounting estimates:
91 / 2152023 Semiannual Report
√ Applicable□ N/A
IMPORTANT: The Company establishes the specific accounting policies and makes the specific
accounting estimates with respect to the impairment of financial instruments depreciation of fixed assets
amortization of intangible assets recognition of revenues and other transactions and events according to
the actual production and operation characteristics of the Company.
1. Statement of compliance with the Accounting Standards for Business Enterprises
The financial statements prepared by the Company conform to the requirements of the Accounting
Standards for Business Enterprises and truly and completely reflect the Company’s financial position
operating results changes in shareholders’ equity cash flows and other related information.
2. Accounting period
The Company’s accounting year is from January 1 to December 31 of each calendar year.
3. Operating cycle
√ Applicable□ N/A
The Company has a relatively short operating cycle and determines the liquidity of assets and liabilities
on the basis of 12 months.
4. Functional currency
The Company and domestic subsidiaries adopt RMB as their functional currency while Appotronics
Hong Kong Limited and other overseas subsidiaries engaging in overseas operation adopt the currency
in their primary economic environments as their functional currencies.
5. The accounting treatment of business combinations involving entities under common control
and not involving entities under common control
√ Applicable□ N/A
1. Accounting method for business combinations involving enterprises under common control
Assets and liabilities acquired from a business combination by the Company are measured at the
book values of the assets and liabilities of the acquiree in the consolidated financial statements of the
ultimate controller at the date of combination. The difference between the book value of the owners’
equity of the acquiree as stated in the consolidated financial statements of the ultimate controller and the
book value of the total consideration paid or total par value of the shares issued in connection with the
combination is treated as an adjustment to the capital reserve. In case the capital reserve is not sufficient
to absorb the difference the remaining balance is adjusted against the retained earnings.
2. Accounting treatment of business combinations involving entities not under common control
Where the cost of combination exceeds the Company’s interest in the fair value of the acquiree’s
identifiable net assets the difference is recognized as goodwill. Where the cost of combination is less
than the Company’s interest in the fair value of the acquiree’s identifiable net assets the Company
firstly reassesses the fair values of the acquiree’s identifiable assets liabilities and contingent liabilities
and the measurement of the cost of combination. If after that reassessment the cost of combination is
still less than the Company’s interest in the fair value of the acquiree’s identifiable net assets the
acquirer recognizes the remaining difference immediately in profit or loss for the current period.
92 / 2152023 Semiannual Report
6. Method of preparation of consolidated financial statements
√ Applicable□ N/A
The parent company includes all of its controlled subsidiaries in its consolidated financial
statements. The consolidated financial statements are prepared by the parent company in accordance
with the Accounting Standards for Business Enterprises No. 33 - Consolidated Financial Statements on
the basis of the respective financial statements of the parent company and its subsidiaries by reference
to other relevant data.
7. Classification of joint arrangements and accounting treatment of joint operations
√ Applicable□ N/A
1. Joint arrangements are classified into joint operations and joint ventures.
2. When the Company is a party to a joint operation the Company recognizes the following items
relating to its interest in the joint operation:
(1) the assets individually held by the Company and the Company’s share of the assets held jointly;
(2) the liabilities incurred individually by the Company and the Company’s share of the liabilities
incurred jointly;
(3) the Company’s revenue from the sale of its share of output of the joint operation;
(4) the Company’s share of revenue from the sale of assets by the joint operation; and
(5) the expenses incurred individually by the Company and the Company’s share of the expenses
incurred jointly.
8. Recognition of cash and cash equivalents
Cash equivalents are the Group’s short-term (generally due within 3 months from the acquisition date)
highly liquid investments that are readily convertible to known amounts of cash and which are subject to
an insignificant risk of changes in value.
9. Translation of transactions and financial statements denominated in foreign currencies
√ Applicable□ N/A
1. Transactions denominated in foreign currencies
A foreign currency transaction is recorded in RMB on initial recognition by applying the spot
exchange rate on the date of the transaction. At the balance sheet date foreign currency monetary items
are translated into RMB using the spot exchange rates at the balance sheet date. Exchange differences
arising from such translations are recognized in profit or loss for the current period except for those
attributable to foreign currency borrowings that have been taken out specifically for the acquisition or
construction of qualifying assets and accrued interest. Non-monetary items denominated in foreign
currencies that are measured at historical cost are translated using the foreign exchange rates ruling at
the transaction dates without adjusting the amounts in RMB. Non-monetary items denominated in
foreign currencies that are measured at fair value are translated using the foreign exchange rates
prevailing at the dates when the fair value was determined with exchange differences arising from such
translations recognized in profit or loss for the current period or other comprehensive income.
2. Translation of financial statements denominated in foreign currencies
93 / 2152023 Semiannual Report
Asset and liability items on the balance sheet are translated at the spot exchange rate prevailing at
the balance sheet date; shareholders’ equity items other than “retained profits” are translated at the spot
exchange rates at the dates on which such items arose; income and expense items in the income
statement are translated at the exchange rates that approximate the actual spot exchange rates on the
dates of the transactions. Exchange differences arising from such translations are recognized in other
comprehensive income.
10. Financial instruments
√ Applicable□ N/A
1. Classification of financial assets and financial liabilities
On initial recognition the Company’s financial assets are classified into three categories including
(1) financial assets at amortized cost; (2) financial assets at fair value through other comprehensive
income; and (3) financial assets at fair value through profit or loss for the current period.Upon initial recognition the Company’s financial liabilities are classified into four categories
including (1) financial liabilities at fair value through profit or loss for the current period; (2) financial
liabilities arising as a result of the transfer of financial assets not meeting the criteria for derecognition or
continuing involvement in the financial assets transferred; (3) financial guarantee contracts not falling
under Clauses (1) and (2) and loan commitments not falling under Clause (1) and below market interest
rate; and (4) financial liabilities at amortized cost.
2. Recognition measurement and derecognition of financial assets and financial liabilities
(1) Recognition and initial measurement of financial assets and financial liabilities
When the Company becomes a party to a financial instrument contract a financial asset or liability
is recognized. Financial assets and liabilities are initially measured at fair value. Transaction costs
relating to financial assets or liabilities at fair value through profit or loss are directly recognized in
profit or loss for the current period. Transaction costs relating to other kinds of financial assets or
liabilities are included in their initially recognized amount. However where the accounts that do not
contain any significant financing component or are recognized by the Company without taking into
consideration the significant financing components under the contracts with a term of less than one year
upon initial recognition are initially measured at transaction price defined in the Accounting Standard for
Business Enterprises No. 14 - Revenue.
(2) Subsequent measurement of financial assets
1) Financial assets at amortized cost
Financial assets at amortized cost are subsequently measured at amortized cost using the effective
interest method. Gains or losses arising from financial assets at amortized cost that do not belong to any
hedging relationship are recognized in profit or loss for the current period upon derecognition
reclassification amortization using the effective interest method or recognition of impairment.
2) Investments in debt instruments at fair value through other comprehensive income
Investments in debt instruments at fair value through other comprehensive income are subsequently
measured at fair value. Interest impairment losses or gains and exchange gains or losses calculated
94 / 2152023 Semiannual Report
using the effective interest method are recognized in profit or loss for the current period and other gains
or losses are recognized in other comprehensive income. Upon derecognition the aggregate gains or
losses previously recognized in other comprehensive income are transferred to profit or loss for the
current period.
3) Investments in equity instruments at fair value through other comprehensive income
Investments in debt instruments at fair value through other comprehensive income are subsequently
measured at fair value. Dividends received (other than those received as recovery of investment cost) are
recognized in profit or loss for the current period and other gains or losses are recognized in other
comprehensive income. Upon derecognition the accumulated gains or losses previously recognized in
other comprehensive income are transferred to retained earnings.
4) Financial assets at fair value through profit or loss for the current period
Financial assets at fair value through profit or loss for the current period are subsequently measured
at fair value with gains or losses arising therefrom including interest and dividend income recognized
in profit or loss for the current period except the financial assets belonging to any hedging relationship.
(3) Subsequent measurement of financial liabilities
1) Financial liabilities at fair value through profit or loss for the current period
Financial liabilities at fair value through profit or loss for the current period include financial
liabilities held for trading (including derivatives classified as financial liabilities) and financial liabilities
directly designated as at fair value through profit or loss for the current period. Such financial liabilities
are subsequently measured at fair value. Changes in the fair value of financial liabilities designated as at
fair value through profit or loss for the period arising out of changes in the Company’s own credit risk
are recognized in other comprehensive income unless such treatment will result in or increase any
accounting mismatch in profit or loss. Other gains or losses arising from such financial liabilities
including interest expenses and changes in fair value not arising out of changes in the Company’s own
credit risk are recognized in profit or loss for the current period except the financial liabilities
belonging to any hedging relationship. Upon derecognition the accumulated gains or losses previously
recognized in other comprehensive income are transferred to retained earnings.
2) Financial liabilities arising as a result of the transfer of financial assets not meeting the criteria
for derecognition or continuing involvement in the financial assets transferred
Such financial liabilities are measured in accordance with the Accounting Standards for Business
Enterprises No. 23 - Transfer of Financial Assets.
3) Financial guarantee contracts not falling under Clauses 1) and 2) and loan commitments not
falling under Clause 1) and below market interest rate
Such financial liabilities are subsequently measured at the higher of * provision for impairment
losses determined according to the policy for impairment of financial instruments; and * balance of
the initially recognized amount after deduction of the accumulated amortization determined in
accordance with the relevant provisions of the Accounting Standard for Business Enterprises No. 14 -
Revenue.
95 / 2152023 Semiannual Report
4) Financial liabilities at amortized cost
Financial liabilities at amortized cost are subsequently measured at amortized cost using the
effective interest method. Gains or losses on financial liabilities at amortized cost that do not belong to
any hedging relationship are recognized in profit or loss for the current period upon derecognition or
amortization using the effective interest method.
(4) Derecognition of financial assets and financial liabilities
1) Financial assets are derecognized when:
* the contractual right to receive cash flows from the financial assets has expired; or
* the financial assets have been transferred and such transfer meets the criteria for derecognition
of financial assets as set forth in the Accounting Standards for Business Enterprises No. 23 - Transfer of
Financial Assets.
2) A financial liability (or part thereof) is derecognized accordingly where its present obligation (or
part thereof) is discharged.
3. Recognition and measurement of financial assets transferred
When a financial asset of the Company is transferred if substantially all the risks and rewards
incidental to the ownership of the financial asset have been transferred the financial asset is
derecognized and the rights and obligations incurred or retained in such transfer are separately
recognized as assets or liabilities (as the case may be); if substantially all the risks and rewards
incidental to the ownership of the financial asset have been retained the financial asset transferred
continues to be recognized. If the Company neither transferred nor retained a substantial portion of all
risks and rewards incidental to the ownership of the financial asset then: (1) if the Company does not
retain control over the financial asset the financial asset is derecognized and the rights and obligations
incurred or retained in such transfer are separately recognized as assets or liabilities (as the case may be);
and (2) if the Company retains control over the financial asset the financial asset continues to be
recognized to the extent of the Company’s continuing involvement in the financial asset transferred and
a corresponding liability is recognized.If an entire transfer of a financial asset meets the criteria for derecognition the difference between
(1) the book value of the financial asset transferred at the date of derecognition; and (2) the sum of the
consideration received from the transfer and the portion of the accumulated amount of changes in fair
value directly recorded as other comprehensive income originally that corresponds to the part
derecognized (where the financial asset transferred is an investment in debt instruments at fair value
through other comprehensive income) is recognized in profit or loss for the current period. If part of a
financial asset is transferred and the part transferred entirely meets the criteria for derecognition the
total book value of the financial asset immediately prior to the transfer is allocated between the part
derecognized and the part not derecognized in proportion to their relative fair value at the date of
transfer and the difference between (1) the book value of the part derecognized; and (2) the sum of the
consideration received from the transfer of the part derecognized and the portion of the accumulated
amount of changes in fair value directly recorded as other comprehensive income originally that
96 / 2152023 Semiannual Report
corresponds to the part derecognized (where the financial asset transferred is an investment in debt
instruments at fair value through other comprehensive income) is recognized in profit or loss for the
current period.
4. Determination of fair value of financial assets and financial liabilities
The Company adopts the valuation techniques applicable to the current situations and with
sufficient data available and support of other information to determine the fair value of financial assets
and financial liabilities. The Company classifies the inputs used by the valuation techniques in the
following levels and uses them in turn:
(1) Level 1 inputs: quoted market price (unadjusted) in an active market for an identical asset or
liability available at the date of measurement;
(2) Level 2 inputs: inputs other than inputs included within Level 1 that are observable directly or
indirectly. This category includes quoted prices for similar assets or liabilities in active markets quoted
prices for identical or similar assets or liabilities in inactive markets observable inputs other than quoted
prices (such as interest rate and yield curves observable during regular intervals of quotation) and inputs
validated by the market;
(3) Level 3 inputs: inputs that are unobservable. This category includes interest rate or stock
volatility that cannot be directly observed or validated by observable market data future cash flows from
retirement obligation incurred in business combinations and financial forecasts made using own data.
5. Impairment of financial instruments
(1) Measurement and accounting treatment of impairment of financial instruments
The Company determines the impairment and assesses provision for impairment losses of financial
assets at amortized cost investments in debt instruments at fair value through other comprehensive
income contract assets lease receivable loan commitments other than financial liabilities designated at
fair value through profit or loss for the current period and financial guarantee contracts other than
financial liabilities designated at fair value through profit or loss for the current period and financial
liabilities arising as a result of the transfer of financial assets not meeting the criteria for derecognition or
continuing involvement in the financial assets transferred on the basis of expected credit losses.Expected credit loss is the weighted average of credit losses on financial instruments taking into
account the possibility of default. Credit loss is the difference between all contractual cash flows
receivable under the contract and estimated future cash flows discounted at the original effective interest
rate i.e. the present value of all cash shortage wherein the Company’s purchased or originated financial
assets that have become credit impaired are discounted at their credit-adjusted effective interest rate.With respect to purchased or originated financial assets that have become credit impaired at the
balance sheet date the Company recognizes a loss allowance equal to the accumulated amount of
changes in lifetime expected credit losses since initial recognition.With respect to lease receivable accounts receivable and contract assets that are formed from
transactions under the Accounting Standards for Business Enterprises No. 14 - Revenue the Company
97 / 2152023 Semiannual Report
uses the simple measurement method and recognizes a loss allowance equal to the lifetime expected
credit loss.With respect to financial assets not using the measurement methods stated above at each balance
sheet date the Company assesses whether the credit risk has increased significantly since initial
recognition and recognizes a loss allowance equal to the lifetime expected credit loss if the credit risk
has increased significantly since initial recognition or to the expected credit losses within the next 12
months if the credit risk has not increased significantly since initial recognition.The Company uses reasonable and supportable information including forward-looking information
and compares the possibility of default at the balance sheet date with the possibility of default upon
initial recognition to determine whether the credit risk of the financial instruments has increased
significantly since initial recognition.At the balance sheet date if the Company determines that a financial instrument only has low credit
risk the Company assumes that its credit risk has not increased significantly since initial recognition.The Company assesses expected credit risk and measures expected credit losses of financial
instruments individually or collectively. When assessing the financial instruments collectively the
Company includes the financial instruments in different groups according to their common risk
characteristics.At each balance sheet date the Company re-assesses the expected credit losses with the amount of
increase in or reversal of loss allowance recognized in profit or loss for the current period as impairment
losses or gains. With respect to a financial asset at amortized cost its book value recorded in the balance
sheet is written off against the loss allowance. With respect to an investment in debt instruments at fair
value through other comprehensive income the Company recognizes the loss allowance in other
comprehensive income without reducing its book value.
(2) Financial instruments for which expected credit risk is assessed and expected credit losses are
measured collectively by using a three-stage model
Item Basis for determining Method for measuring
a group expected credit losses
Other receivables - group of deposit and By reference to historic credit
security receivable loss experience and taking
Nature of receivables
Other receivables - group of withholding into account the current
receivable situations and prediction of
Contract assets from future economic conditions
Other receivables - group of receivables from
related parties in the calculate the expected credit
related parties in the scope of consolidation
scope of consolidation losses according to the default
risk exposure and 12-month or
Other receivables - grouping by aging Aging rate of lifetime expected credit
loss.
98 / 2152023 Semiannual Report
(3) Accounts receivable for which expected credit losses are measured collectively and contract
assets using the simple measurement method
1) Groups and method for measuring expected credit losses
Item Basis for Method for measuring expected credit losses
determining a
group
Bank acceptance bills
receivable
Type of notes
Commercial acceptance By reference to historic credit loss experience and
bills receivable taking into account the current situations and prediction
Contract assets of future economic conditions calculate the expected
Accounts receivable -
from related credit losses according to the default risk exposure and
group of receivables from
parties in the rate of lifetime expected credit loss.related parties in the scope
scope of
of consolidation
consolidation
By reference to historic credit loss experience and
taking into account the current situations and prediction
Accounts receivable - of future economic conditions prepare a comparison
Aging
grouping by aging table of the aging of accounts receivable and rate of
lifetime expected credit loss and calculate the expected
credit losses.Contract assets By reference to historic credit loss experience and
Contract assets - contract
from related taking into account the current situations and prediction
assets from related parties
parties in the of future economic conditions calculate the expected
in the scope of
scope of credit losses according to the default risk exposure and
consolidation
consolidation rate of lifetime expected credit loss.By reference to historic credit loss experience and
taking into account the current situations and prediction
Contract assets - grouping of future economic conditions prepare a comparison
Aging
by aging table of the aging of contract assets and rate of lifetime
expected credit loss and calculate the expected credit
losses.By reference to historic credit loss experience and
taking into account the current situations and prediction
Long-term receivables - of future economic conditions prepare a comparison
Aging
grouping by aging table of the aging of long-term receivables and rate of
lifetime expected credit loss and calculate the expected
credit losses.
99 / 2152023 Semiannual Report
2) Accounts receivable contract assets and long-term receivables - comparison table of the age of
accounts receivable and rate of lifetime expected credit loss
Rate of expected credit loss for accounts receivable contract assets
Aging
and long-term receivables (%)
Within 1 year (including the
5.00
same below)
1-2 years 25.00
2-3 years 50.00
Over 3 years 100.00
6. Offsetting of financial assets and financial liabilities
Financial assets and financial liabilities are presented in the balance sheet separately without
offsetting each other. However the Company may represent the financial assets and financial liabilities
on a net basis in the balance sheet only if: (1) the Company has a legal right that is currently enforceable
to set off the recognized financial assets and financial liabilities and (2) the Company intends either to
settle on a net basis or to realize the financial asset and settle the financial liability simultaneously.With respect to the transfer of financial assets not meeting the criteria for derecognition the Company
does not offset the financial assets transferred against the relevant liabilities.
11. Notes receivable
Method for recognition of expected credit losses of notes receivable and relevant accounting
treatments
√ Applicable□ N/A
The Company’s method for recognition of expected credit losses of notes receivable and relevant
accounting treatments are disclosed in V.10 of Section X in details.
12. Accounts receivable
Method for recognition of expected credit losses of accounts receivable and relevant accounting
treatments
√ Applicable□ N/A
The Company’s method for recognition of expected credit losses of accounts receivable and relevant
accounting treatments are disclosed in V.10 of Section X in details.
13. Receivables financing
√ Applicable□ N/A
The Company’s policies on receivables financing and accounting are disclosed in V.10 of Section X in
details.
14. Other receivables
Method for recognition of expected credit losses of other receivables and relevant accounting
treatments
√ Applicable□ N/A
100 / 2152023 Semiannual Report
The Company’s method for recognition of expected credit losses of other receivables and relevant
accounting treatments are disclosed in V.10 of Section X in details.
15. Inventories
√ Applicable□ N/A
1. Categories of inventories
Inventories include finished goods or merchandise held by the Company for sale in the ordinary
course of business or work in progress in the process of production for such sale or materials or
supplies to be consumed in the production process or in the rendering of services.
2. Valuation method of inventories upon delivery
The actual cost of inventories upon delivery is calculated using the moving weighted average
method.
3. Basis for determining net realizable value of inventories
At the balance sheet date inventories are measured at the lower of cost and net realizable value.Any excess of the cost over the net realizable value of each item/class of inventories is recognized as a
provision for diminution in the value of inventories. For inventories directly used for sale the net
realizable value is determined as the estimated selling price in the ordinary course of business less the
estimated costs necessary to make the sale and relevant taxes. For inventories required for processing
the net realizable value is determined as the estimated selling price of finished goods in the ordinary
course of business less the estimated costs of completion and the estimated costs necessary to make the
sale and relevant taxes. As at the balance sheet date if in the same item of inventories some are agreed
with contractual prices while the others are not the net realizable value for such inventories is
determined separately and compared with the costs of the two parts of inventories distinctively as to
determine the provisions or reversal of provisions for decline in value of inventories separately.
4. Inventory count system
The perpetual inventory system is maintained for stock system.
5. Amortization method for low cost and short-lived consumable items and packaging materials
(1) Low cost and short-lived consumable items
Packaging materials are amortized using the immediate write-off method.
(2) Packaging materials
Packaging materials are amortized using the immediate write-off method.
16. Contract assets
(1). Recognition method and criteria of contract assets
√ Applicable□ N/A
The Company presents contract assets or contract liabilities in the balance sheet according to the
relationship between the performance of contractual obligations and payment by customers. Contract
assets and contract liabilities under a same contract are presented at the net amount after offsetting each
other.The Company presents its owned right to unconditionally (that is only depending on the lapse of
101 / 2152023 Semiannual Report
time) receive consideration from customers as the accounts receivable and the right to receive the
consideration for which the goods that have been transferred to customers (that is depending on factors
other than the lapse of time) as the contract assets.
(2). Method for recognition of expected credit losses of contract assets and relevant accounting
treatments
√ Applicable□ N/A
The method for recognition of expected credit losses of contract assets and relevant accounting
treatments are disclosed in V.10 of Section X in details.
17. Held-for-sale assets
□ Applicable√ N/A
18. Debt investments
Method for recognition of expected credit losses of debt investments and relevant accounting
treatments
□ Applicable√ N/A
19. Other debt investments
Method for recognition of expected credit losses of other debt investments and relevant accounting
treatments
□ Applicable√ N/A
20. Long-term receivables
Method for recognition of expected credit losses of long-term receivables and relevant accounting
treatments
√ Applicable□ N/A
The method for recognition of expected credit losses of long-term receivables and relevant accounting
treatments are disclosed in V.10 of Section X in details.
21. Long-term equity investments
√ Applicable□ N/A
1. Judgments on joint control and significant influence
Joint control is the contractually agreed sharing of control of an arrangement which exists only
when decisions about the relevant activities of such arrangement require the unanimous consent of the
parties sharing control. Significant influence is the power to participate in the financial and operating
policy decisions of the investee but does not control or jointly control over those policies.
2. Determination of investment cost
(1) In case of an equity investment acquired through a business combination involving entities
under common control if the acquirer pays consideration for the business combination by cash transfer
of non-monetary assets assumption of liabilities or issuance of equity securities the initial investment
cost of the long-term equity investment is the Company’s share of the book value of the owners’ equity
of the acquiree in the consolidated financial statements of the ultimate controller at the date of
combination. The difference between: (i) the initial investment cost of the long-term equity investment;
and (ii) the book value of the consideration paid for the combination or the total par value of the shares
102 / 2152023 Semiannual Report
issued is treated as an adjustment to the capital reserve. In case the capital reserve is not sufficient to
absorb the difference the remaining balance is adjusted against the retained earnings.For a long-term equity investment acquired through business combination involving enterprises
under common control that is achieved through multiple transactions by steps the Company shall judge
whether such transactions constitute a package deal. If such transactions constitute a package deal the
Company accounts for such transactions as one transaction to acquire control. If such transactions do not
constitute a package deal the initial investment cost is the Company’s share of the book value of the
owners’ equity of the acquiree in the consolidated financial statements of the ultimate controller at the
date of combination. The difference between: (i) the initial investment cost of the long-term equity
investment at the date of combination; and (ii) the sum of the book value of long-term equity investment
before the combination and the book value of the consideration paid for acquisition of the additional
shares at the date of combination is adjusted against the capital reserve. In case the capital reserve is not
sufficient to absorb the difference the remaining balance is adjusted against the retained earnings.
(2) In case of an equity investment acquired through a business combination not involving
enterprises under common control the initial investment cost is the fair value of the carrying amount of
the consideration paid for the combination at the date of acquisition.With respect to a long-term equity investment acquired through a business combination not
involving enterprises under common control that is achieved through multiple transactions by steps the
accounting treatment thereof in the separate financial statements is different from that in the
consolidated financial statements as stated below:
1) In the separate financial statements the sum of the book value of the equity investment
originally held in the acquiree and the additional investment cost incurred is recorded as the initial
investment cost of the equity investment changed into the cost method.
2) In the consolidated financial statements it is required to judge whether such transactions
constitute a package deal. If such transactions constitute a package deal the Company accounts for such
transactions as one transaction to acquire control. If such transactions do not constitute a “package deal”
the Company re-measures the fair value of the equity held in the acquiree prior to the date of acquisition
and records the difference between the fair value and the book value as investment income for the
current period; if the equity held in the acquiree prior to the date of acquisition involves other
comprehensive income under equity method such other comprehensive income is transferred to the
income of the period in which the date of acquisition falls except for other comprehensive income
arising from re-measurement by the investee of changes in net liabilities or net assets of defined benefit
plans.
(3) In the event of no business combination: the initial investment cost is the purchase price actually
paid if it is acquired by cash or the fair value of the equity securities issued if it is acquired through
issuance of equity securities or determined in accordance with the Accounting Standards for Business
Enterprises No. 12 - Debt Restructuring if it is acquired through debt restructuring or determined in
103 / 2152023 Semiannual Report
accordance with the Accounting Standards for Business Enterprises No. 7 - Exchange of Non-monetary
Assets if it is acquired through exchange of non-monetary assets.
3. Subsequent measurement and recognition of profit or loss
Long-term equity investments in investees are measured using the cost method. Long-term equity
investments in associates and joint ventures are measured using the equity method.
22. Investment property
N/A
23. Fixed assets
(1). Criteria for recognition
√ Applicable□ N/A
Fixed assets are tangible assets held for production of goods rendering of service lease or
operation and management with a useful life of more than one accounting year. A fixed asset is
recognized if the economic benefits relating to it are very likely to flow to the Company and its cost can
be reliably measured.
(2). Method of depreciation
√ Applicable□ N/A
Annual
Method of Depreciation Residual ratio
Category depreciation rate
depreciation period (years) (%)
(%)
Machinery and Straight line 5 5.00 19.00
equipment method
Transportation Straight line 5 5.00 19.00
equipment method
Electronic Straight line 3-5 5.00 19.00-31.67
equipment and method
others
Operating leased Straight line 3 7 5.00 31.67 13.57
equipment method
(3). Identification basis valuation method and depreciation method for fixed assets acquired
under finance leases
□ Applicable√ N/A
24. Construction in progress
√ Applicable□ N/A
1. Construction in progress is recognized if the economic benefits relating to it are very likely to
flow to the Company and its cost can be reliably measured. A construction in progress is measured at the
actual cost incurred before it is completed and ready for intended use.
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2. When a construction in progress is ready for intended use it is transferred to fixed assets at its
actual construction cost. A construction in progress that is ready for intended use but the final settlement
of which has not yet been completed is transferred to fixed assets at estimated value first and after the
completion of final settlement the estimated value is adjusted according to the actual cost but the
accrued depreciation is not adjusted.
25. Borrowing costs
√ Applicable□ N/A
1. Recognition for capitalization of borrowing costs
Borrowing costs incurred by the Company that are directly attributable to the acquisition
construction or production of a qualifying asset are capitalized as part of the cost of that asset. Other
borrowing costs are recognized as expenses and charged to the current profit or loss.
2. Capitalization period of borrowing costs
(1) Borrowing costs are capitalized when all of the following conditions are met: 1) capital
expenditure has been incurred; 2) borrowing costs have been incurred; and 3) activities relating to the
acquisition construction or production of the asset that are necessary to prepare the asset for its intended
use or sale have commenced.
(2) Where acquisition and construction or production of a qualified asset is interrupted abnormally
and the interruption period lasts for more than 3 months the capitalization of the borrowing costs shall
be suspended. The borrowing costs incurred during these periods shall be recognized as expenses for the
current period until the acquisition construction or production of a qualifying asset is resumed.
(3) Capitalization of borrowing costs shall be ceased when acquisition construction or production
of the qualifying asset has prepared for its intended use or sale.
3. Capitalization rate and capitalization amount of borrowing costs
As for the specific borrowings for the acquisition and construction or production of assets
qualifying for capitalization the to-be-capitalized amount of interests shall be determined in light of the
actual cost incurred on the current specific borrowings (including the amortization of discounts or
premiums determined using the effective interest method) minus the income of interests earned from the
unused borrowings by depositing it in the bank or investment income from such borrowing by making it
as a temporary investment; where a general borrowing is used for the acquisition and construction or
production assets qualifying for capitalization the Company shall calculate and determine the to-be-
capitalized amount of interests on the general borrowing by multiplying the weighted average value of
the accumulative expenditures to asset minus the specific borrowing by the capitalization rate of the
general borrowing used.
26. Biological assets
□ Applicable√ N/A
27. Oil and gas assets
□ Applicable√ N/A
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28. Right-of-use asset
√ Applicable□ N/A
Right-of-use assets are initially measured at cost; the cost includes: 1) initial measurement amount
of leased liabilities; 2) lease payments paid on or prior to the commencement of the lease term net of the
lease incentives (if any) received; 3) initial direct expenses incurred by the lessee; and 4) costs expected
to be incurred by the lessee for dismantling and removing the leased assets restoring the place of the
leased assets or restoring the leased assets to the state provided under lease provisions.The Company depreciates right-of-use assets by using the straight-line method. If there is
reasonable certainty that the lessee will obtain ownership of the leased asset by the end of the lease term
the Company depreciates the leased asset over its useful life. If there is no reasonable certainty that the
lessee will obtain ownership of the leased asset by the end of the lease term the Company depreciates
the leased asset over the shorter of the lease term and its remaining useful life.
29. Intangible assets
(1). Measurement service life and impairment test
√ Applicable□ N/A
1. Intangible assets include land use rights patents and software etc. and are measured at cost
initially.
2. An intangible asset with a finite useful life is amortized over its useful life in a systematical and
rational expected realization of economic benefits relative to the intangible asset or is amortized using
the straight-line method if it is impossible to determine expected realization reliably. The specific years
are as follows:
Item Amortization period (years)
Land use rights 30
Patents 10
Software 3-5
(2). Accounting policy on internal research and development expenditures
√ Applicable□ N/A
Expenditures incurred during the research phase of internal research and development projects are
recognized as current expenses when they occur. Expenditures on an internal research and development
project at development phase are recognized as an intangible asset if all the following conditions are met:
(1) it is technically feasible to complete the intangible asset so that it will be available for use of sale; (2)
it is intended to complete the intangible asset so that it will be available for use of sale; (3) the pattern in
which the intangible asset will generate economic results can demonstrate the existence of a market for
the output of the intangible asset or the intangible asset itself or if it is to be used internally the
usefulness of the intangible asset; (4) there are sufficient technical financial and other resources
available to complete the development activities and to use or sell the intangible asset; and (5) the
expenditures attributable to the development of the intangible asset can be reliably measured.
106 / 2152023 Semiannual Report
30. Impairment of long-term assets
√ Applicable□ N/A
For long-term equity investments fixed assets construction in progress right-of-use assets
intangible assets with a finite useful life and other long-term assets if there’s an indication of
impairment at the balance sheet date the Company assesses their recoverable amount. Goodwill arising
from business combinations and intangible assets with an infinite useful life are tested for impairment
every year regardless of whether there’s an indication of impairment. Goodwill is tested for impairment
together with the relevant groups of assets or combinations of groups of assets.If the recoverable amount of a long-term asset is less than its book value the difference is measured
as impairment loss of the asset and recognized in profit or loss for the current period.
31. Long-term prepaid expenses
√ Applicable□ N/A
Long-term prepaid expenses are expenses that have already been incurred but should be amortized
over a period of more than one year (excluding one year). Long-term prepaid expenses are stated as the
amount actually incurred and shall be amortized evenly by stages within the benefit period or specified
period. If an item of long-term prepaid expenses will not benefit the subsequent periods the amortized
value of the item that has not yet been amortized is wholly transferred to profit or loss for the current
period.
32. Contract liabilities
Recognition method for contract liabilities
√ Applicable□ N/A
The Company presents contract assets or contract liabilities in the balance sheet according to the
relationship between the performance of contractual obligations and payment by customers. Contract
assets and contract liabilities under a same contract are presented at the net amount after offsetting each
other.The obligations of the Company for transferring goods to customers corresponding to
considerations that have been received or receivable are presented as contract liabilities.
33. Employee benefits
(1). Accounting treatment of short-term employee benefits
√ Applicable□ N/A
1. Employee benefits include short-term benefits post-employment benefits termination benefits
and other long-term employee benefits.
2. Accounting treatment of short-term employee benefits
The short-term employee benefits actually incurred are recognized as liabilities in the accounting
period during which employee services are rendered and included in profit or loss for the current period
or the cost of related assets.
(2). Accounting treatment of post-employment benefits
√ Applicable□ N/A
107 / 2152023 Semiannual Report
Post-employment benefits are classified into defined contribution plans and defined benefit plans.
(1) In the accounting period during which employee services are rendered the amount in
contribution as calculated according to the defined contribution plan is recognized as liabilities and
included in profit or loss for the current period or the cost of related assets.
(2) The accounting treatment of a defined benefit plan generally involves the following steps:
1) According to the projected unit credit method use the unbiased and consistent actuarial
assumptions to estimate demographic variables and financial variables measure the obligation arising
from the defined benefit plan and determine the period to which the relevant obligation belongs.Meanwhile discount the obligation arising from the defined benefit plan in order to determine the
present value of the defined benefit plan obligation and the current service cost;
2) If the defined benefit plan has assets the deficit or surplus resulting after reducing the present
value of the defined benefit plan obligation by the fair value of the defined benefit plan is recognized as
a net liability or asset of the defined benefit plan. If the defined benefit plan has a surplus the net assets
of the defined benefit plan are measured at the lower of surplus in the defined benefit plan and asset
ceiling;
3) At the end of the reporting period the cost of employee benefits arising from the defined benefit
plan is recorded as service cost net interest on the net liabilities or net assets of the defined benefit plan
and changes arising from re-measurement of the net liabilities or net assets of the defined benefit plan
wherein the service cost and the net interest on the net liabilities or net assets of the defined benefit plan
are included in profit or loss for the current period or the cost of related assets and the changes arising
from re-measurement of the net liabilities or net assets of the defined benefit plan are included in other
comprehensive income which will not be reserved to profit or loss in subsequent periods but may be
transferred within the scope of equity.
(3). Accounting treatment of termination benefits
√ Applicable□ N/A
If dismissal benefits are provided to employees the liabilities of employee benefits from the
dismissal benefits are recognized at the earlier of the following and are recognized in the profit or loss
for the current period: (1) when the Company can no longer withdraw the offer of termination benefits
as a result of termination of employment or redundancy; or (2) the Company recognizes the restructuring
costs or expenses relating to payment of termination benefits.
(4). Accounting treatment of other long-term employee benefits
√ Applicable□ N/A
Other long-term employee benefits are accounted for in accordance with the provisions applicable
to defined contribution plans if they are qualified as defined contribution plans otherwise are accounted
for in accordance with the provisions applicable to defined benefit plans. In order to simplify the
accounting treatment the total net amount of the cost of employee benefits arising from the defined
benefit plans that is recorded as service cost net interest on the net liabilities or net assets of other long-
term employee benefits changes arising from re-measurement of the net liabilities or net assets of other
108 / 2152023 Semiannual Report
long-term employee benefits and other components is included in profit or loss for the current period or
the cost of related assets.
34. Lease liabilities
√ Applicable□ N/A
At the commencement date of the lease the Company recognizes the present value of lease
payments not paid as lease liabilities. The interest rate implicit in the lease is used as the discount rate
for calculating the present value of the lease payments; if the interest rate implicit in the lease cannot be
determined the incremental borrowing interest rate of the Company is used as the discount rate. The
difference between the lease payments and the present value thereof is considered as unrecognized
finance charges; in each period during the lease term interest expenses are recognized in the profit or
loss for the current period according to the discount rate of the present value of recognized lease
payments. Variable lease payments not included in measurement of lease liabilities are recognized in the
profit or loss for the current period when the actually arise.Where after the lease inception date there are changes in the substantial fixed payment the
payables expected on the basis of the residual value of the guarantee the index or ratio used for
determining the lease payment the evaluation results or actual exercising of purchase option renewal
option or lease termination option the Company re-measures the lease liability as per the present value
of the lease payment after change and adjust the book value of the right-of-use assets accordingly.Where the book value of the use right asset has been reduced to zero but the lease liability still needs to
be further reduced the Company includes the residual amount in the current profit or loss.
35. Provisions
√ Applicable□ N/A
1. An obligation arising from any external guarantee instigation product quality warranty onerous
contract or other contingencies is recognized as a provision if it is a present obligation assumed by the
Company and it is probable that an outflow of resources embodying economic benefits will be required
to settle the obligation and the amount of the obligation can be reliably measured.
2. The amount recognized as a provision is the best estimate of the consideration required to settle
the present obligation. The book value of provisions is reviewed at the balance sheet date.
36. Share-based payments
√ Applicable□ N/A
1. Categories of share-based payments
Share-based payments include equity-settled share-based payments and cash-settled share-based
payments
2. Accounting treatment for implementation modification and termination of share-based payment
plan
(1) Equity-settled share-based payments
Equity-settled share-based payments in exchange for services rendered by employees that can be
executed immediately upon being granted are measured at the fair value of the equity instruments at the
109 / 2152023 Semiannual Report
grant date and recognized as related costs or expenses with a corresponding adjustment to capital
reserve. At each balance sheet date during the vesting period equity-settled share-based payments in
exchange for services rendered by employees that cannot be executed until services in the vesting period
are completed or required performance conditions are satisfied are measured at the fair value of the
equity instruments at the grant date based on the best estimate of exercisable numbers of equity
instruments and recognized as related costs or expenses with a corresponding adjustment to capital
reserve.For equity-settled share-based payments in exchange for services rendered by other parties if the
fair value of services from other parties can be measured reliably they are measured at the fair value of
services from other parties at the date when such services are received. If the fair value of services from
other parties cannot be measured reliably but the fair value of the equity instruments can be measured
reliably they are measured at the fair value of the equity instruments at the date when such services are
received. The fair value of the equity instruments are recognized as related costs or expenses with a
corresponding increase in owners’ equity.
(2) Modification and termination of share-based payment plan
If the modification increases the fair value of the equity instruments granted the Company will
include the incremental fair value of the equity instruments granted in the measurement of the amount
recognized for services received. If the modification increases the number of the equity instruments
granted the Company will include the fair value of additional equity instruments granted in the
measurement of the amount recognized for services received. If the Company modifies the exercisable
conditions of the share-based payment plan in a manner beneficial to the employee the Company will
consider the modified exercisable conditions when dealing with exercisable conditions.If the modification decreases the fair value of the equity instruments granted the Company will
continue to measure the amount recognized for services received at the fair value of the equity
instruments at the grant date without including the decremental fair value of the equity instruments. If
the modification decreases the number of the equity instruments granted the Company will treat the
decreased number as the cancelled number of equity instruments granted. If the Company modifies the
exercisable conditions in a manner unbeneficial to the employee the Company will not consider the
modified exercisable conditions when dealing with exercisable conditions.If cancellation or settlement of the equity instruments granted occurs (not due to unsatisfaction of
exercisable conditions) during the vesting period the Company will account for the cancellation or
settlement of the equity instruments granted as an acceleration of vesting and recognize immediately the
amount that otherwise would have been recognized over the remainder of the vesting period.
37. Preferred shares perpetual bonds and other financial instruments
□ Applicable√ N/A
38. Revenue
(1). Accounting policies adopted for income recognition and measurement
√ Applicable□ N/A
110 / 2152023 Semiannual Report
1. Principles for revenue recognition
On the commencement date of a contract the Company evaluates the contract identifies each
individual performance obligation contained therein and determine whether each individual performance
obligation is performed over time or at a certain point in time.When meeting one of the following criteria it belongs to the obligation performed over time
otherwise it constitutes the obligation performed at a certain point in time: (1) the customer obtains and
consumes the economic benefits generated by the Company’s performance when the Company performs
the contract; (2) the customer can control the products under construction in the process of the
Company’s performance; (3) the products produced in the process of the Company’s performance have
irreplaceable uses and the Company has the right to collect payment for the cumulative performance
that has been completed up to date throughout the term of the contract.For the obligation performed over time the Company recognizes the revenue based on the
performance progress over time. When the performance progress cannot be reasonably determined and
the costs incurred are expected to be recoverable revenue is recognized to the extent of costs incurred
until the performance progress can be reasonably determined. For the obligation performed at a certain
point in time the revenue is recognized at the time point when the customer obtains the control of the
related goods and services. When judging whether the customer has obtained the control of goods the
Company considers the followings signs: (1) the Company has the current right to receive payment for
such goods that is the customer has the current obligation to make payment for such goods; (2) the
Company has transferred the legal ownership of such goods to the customer that is the customer has the
legal ownership of such goods; (3) the Company has transferred such goods to the customer physically
that is the customer has taken possession of such goods physically; (4) the Company has transferred
material risks and rewards of such goods to the customer that is the customer has obtained material
risks and rewards of such goods; (5) the customer has accepted such goods; and (6) other signs that the
customer has obtained control of such goods.
2. Principles for revenue measurement
(1) The Company measures the revenue based on the transaction price allocated to individual
performance obligations. The transaction price is the amount of consideration to which the Company is
entitled arising from the transfer of goods or services to the customer excluding the amount collected on
behalf of a third party and expected to be returned to the customer.
(2) If there is variable consideration in the contract the Company determines the best estimate of
the variable consideration based on the expected value or the most likely amount. However variable
consideration is included in the transaction price if and to the extent that it is highly probable that its
inclusion will not result in a significant revenue reversal of accumulatively recognized revenue in the
future when the uncertainty has been subsequently resolved.
(3) If there is a major financing component in the contract the Company determines the transaction
price based on the presumed amount payable in cash when the customer obtains the control of goods or
services. The difference between the transaction price and contract consideration is amortized using the
111 / 2152023 Semiannual Report
effective interest method during the term of the contract. If on the commencement of a contract the
Company expects that the customer’s acquisition of control of goods or services is not more than one
year from the customer’s payment therefor the major financing component in the contract will not be
considered.
(4) If the contract has two or multiple performance obligations the Company on the
commencement of a contract allocates the transaction price to each individual performance obligation in
the contract by reference to relative standalone selling prices of goods promised thereby.
3. Specific methods for revenue recognition
(1) Revenue from sales of goods
The performance obligation concerning sales of goods (primarily dividing into goods sold to the
domestic market and goods exported to overseas markets) by the Company is taken as one satisfied at a
certain point in time for the recognition of revenue.Goods sold to the domestic market: 1) Under the direct sale model and the distribution model the
Company recognizes the revenue when the goods sent have been delivered to customers with customers’
receipt given to the Company. For goods sold attached with return conditions the Company recognizes
the revenue according to the amount of consideration to which it expects to be entitled in exchange for
transferring goods to customers and recognize the liabilities according to the expected amount to be
returned due to sales return against the revenue; for goods required for installment and inspection after
sales the Company recognizes the revenue when such goods have been installed and inspected with
customers’ acceptance certificate given to the Company; If the Company shares profits from sales of
product by downstream end customers the Company recognizes shared revenue when it can be
measured reliably. 2) Under the commissioned sales mode the Company recognizes the revenue when it
receives the list of commissioned sales from the customer.Goods exported to overseas markets: The Company mainly adopts FCA for export of goods. Under
this mode the Company recognizes revenue when it delivers goods at the designated location with
export customs clearance procedures completed.
(2) E-commerce platform revenue
In the e-commerce platform model the e-commerce platform is responsible for product promotion
and order management. Consumers place orders and pay directly to the e-commerce platform and the e-
commerce platform arranges third-party logistics through the Company or ships directly to the consumer
by the e-commerce platform after receiving the consumer's payment. The specific revenue recognition
time points are: for domestic e-commerce platforms revenue is recognized according to the time of end
customer receipt; for foreign e-commerce platforms revenue is recognized after receiving the
confirmation list of the e-commerce platform after checking the reconciliation time agreed in the
contract.
(3) Other incomes
Any other performance obligation of the Company is taken as one satisfied over time/at a certain
point in time for the recognition of revenue. For installation services provided by the Company the
112 / 2152023 Semiannual Report
Company recognizes the revenue when it has completed the services and received customers’
acceptance certificate; for repair and maintenance services provided by the Company the Company
recognizes the revenue when it has completed the services and received payments; for patrol inspection
services provided by the Company the Company determines the service performance progress by using
the output approach and recognizes the revenue according to the performance progress; for patent
licensing services provided by the Company the Company recognizes the revenue when the patent
licensing is completed and handed over; and for technology development services provided by the
Company the Company recognizes the revenue when it has completed the services or when the agreed
time point of service acceptance is reached.
(2). Description of differences in the accounting policies in revenue recognition due to different
operating modes adopted for the same business type
□ Applicable√ N/A
39. Contract costs
√ Applicable□ N/A
Assets related to contract costs include contract acquisition costs and contract performance costs.If costs incurred by the Company for acquiring a contract are expected to be recovered such costs
are recognized as an asset as contract acquisition costs.The costs incurred by the Company for performing a contract are recognized as an asset of contract
performance costs if they do not fall within the scope of other relevant standards like inventories fixed
assets or intangible assets and meet all the following conditions:
1. The cost is directly related to a present or expected contract including direct labor direct
materials manufacturing expenses (or similar expenses) costs explicitly to be borne by customers and
other costs arising from the contract;
2. The cost leads to the increase in resources of the Company for fulfilling its performance
obligations in the future; and
3. The cost is expected to be recovered.
Assets related to contract costs are amortized on the same basis as recognizing incomes from goods
related to assets and are recognized in the profit or loss for the current period.If the book value of the assets related to contract costs is greater than the consideration expected to
be acquired by transferring the goods or services related to such assets less the costs expected to be
incurred the Company makes provision for impairment for the exceeding portion and recognizes
impairment loss of assets. In the event of a change in the factors causing impairment in a prior period so
that the consideration expected to be acquired by transferring the goods or services related to such assets
less the costs expected to be incurred is greater than the book value of such assets the provision for
impairment made for such assets is reversed and recognized in the profit or loss for the current period;
provided however that the reversed book value of such assets shall not exceed the book value of such
assets at the reversal data on the assumption that no provision for impairment has been made.
113 / 2152023 Semiannual Report
40. Government grants
√ Applicable□ N/A
1. Government grants are recognized if (1) the Company meets the conditions attaching to the
government grants; and (2) the Company will receive the government grants. Government grants in the
form of monetary assets are measured at the amount received or receivable. Government grants in the
form of non-monetary assets are measured at fair value or if their fair value is unavailable at nominal
amount.
2. Determination and accounting treatment of government grants related to assets
Government grants related to assets are government grants which are offered for purchasing
constructing or otherwise acquiring long-term assets as provided by the applicable government
documents. In the absence of such express provision in the applicable government documents
government grants related to assets are those with a primary condition that the Company should
purchase construct or otherwise acquire long-term assets. Government grants related to assets are offset
against the book value of the relevant assets or recognized as deferred income. Government grants
related to assets recognized as deferred income shall be included in profit or loss over the service life of
the relevant assets on a reasonable and systemic basis. Government grants measured at nominal amount
are directly recognized in profit or loss for the current period. In case of sale transfer retirement or
damage of the relevant assets before the end of intended service life the balance of the unallocated
deferred income is transferred to profit or loss for the period in which the assets are disposed of.
3. Determination and accounting treatment of government grants related to income
Government grants related to income are government grants other than those related to assets.Government grants related to both assets and income in which it is difficult to make a distinction
between the portion related to assets and the portion related to income are wholly classified as
government grants related to income. Government grants related to income as compensation for
expenses or losses to be incurred in subsequent periods are recognized as deferred income and in the
period for recognizing the relevant costs expenses or losses included in profit or loss for the current
period or offset against the relevant costs. Government grants related to income as compensation for
expenses or losses already incurred are directly included in profit or loss for the current period or offset
against the relevant costs.
4. Government grants related to daily operations of the Company are recognized in other income or
offset against the relevant costs and expenses depending on the nature of economic business.Government grants not related to daily operations of the Company are recognized in non-operating
income or expenses.
5. Accounting treatment of policy preferential loans and interest subsidies
(1) If the Ministry of Finance appropriates the interest subsidies to the lending bank who then
grants the loan to the Company at the policy preferential rate the loan is stated as the amount actually
received and the borrowing cost is calculated according to the principal of the loan and the policy
preferential rate.
114 / 2152023 Semiannual Report
(2) If the Ministry of Finance directly appropriates the interest subsidies to the Company the
interest subsidies are offset against the borrowing cost.
41. Deferred tax assets and deferred tax liabilities
√ Applicable□ N/A
1. The difference between the tax base of an asset or liability and its book value (or in case of an
item not recognized as asset or liability whose tax base can be determined according to the applicable
tax law the difference between its tax base and book value) is recognized as a deferred tax asset or
deferred tax liability according to the tax rate applicable to the period in which the asset or liability is
expected to be recovered or settled.
2. Deferred tax assets are recognized to the extent of the amount of income tax payable that will be
available in future periods against which deductible temporary differences are deductible. At the balance
sheet date deferred tax assets not recognized in prior periods are recognized if there’s conclusive
evidence that it is probable that sufficient taxable income will be available in future periods against
which the deductible temporary differences are deductible.
3. At the balance sheet date the book value of deferred tax assets is reviewed and reduced to the
extent that it is no longer probable that sufficient taxable income will be available in future periods to
allow the benefit of the deferred tax assets to be utilized. If it is probable that sufficient taxable income
will be available the reduced amount is reversed.
4. The income taxes and deferred taxes are included in profit or loss for the current period as
income tax expenses or gains except the income taxes arising from any: (1) business combination; or (2)
transaction or event directly recognized in owners’ equity.
42. Leases
(1). Accounting treatment of operating leases
□ Applicable√ N/A
(2). Accounting treatment of finance leases
□ Applicable√ N/A
(3). Method for determination and accounting treatments of lease under the New Lease Standard
√ Applicable□ N/A
1. The Company as the lessee
On the lease inception date the Company recognizes a lease with a lease term of not more than 12
months and not containing an option as a short-term lease and recognizes a low-value assets lease for a
lease in which individually leased assets have a low value when they are new. If the Company subleases
or expects to sublease the leased asset the original lease is not recognized as a low-value assets lease.For short-term leases and low-value assets leases the Company recognizes lease payment in the
costs of relevant assets or the profit or loss for the current period by using the straight-line method in
each period during the lease term.Except for short-term leases and low-value assets leases subject to simplified treatment above on
the lease inception date the Company recognizes right-of-use assets and lease liabilities for leases.
115 / 2152023 Semiannual Report
(1) Use right assets
Right-of-use assets are initially measured at cost; the cost includes: 1) initial measurement amount
of leased liabilities; 2) lease payments paid on or prior to the commencement of the lease term net of the
lease incentives (if any) received; 3) initial direct expenses incurred by the lessee; and 4) costs expected
to be incurred by the lessee for dismantling and removing the leased assets restoring the place of the
leased assets or restoring the leased assets to the state provided under lease provisions.The Company depreciates right-of-use assets by using the straight-line method. If there is
reasonable certainty that the lessee will obtain ownership of the leased asset by the end of the lease term
the Company depreciates the leased asset over its useful life. If there is no reasonable certainty that the
lessee will obtain ownership of the leased asset by the end of the lease term the Company depreciates
the leased asset over the shorter of the lease term and its remaining useful life.
(2) Lease liabilities
At the commencement date of the lease the Company recognizes the present value of lease
payments not paid as lease liabilities. The interest rate implicit in the lease is used as the discount rate
for calculating the present value of the lease payments; if the interest rate implicit in the lease cannot be
determined the incremental borrowing interest rate of the Company is used as the discount rate. The
difference between the lease payments and the present value thereof is considered as unrecognized
finance charges; in each period during the lease term interest expenses are recognized in the profit or
loss for the current period according to the discount rate of the present value of recognized lease
payments. Variable lease payments not included in measurement of lease liabilities are recognized in the
profit or loss for the current period when the actually arise.Where after the lease inception date there are changes in the substantial fixed payment the
payables expected on the basis of the residual value of the guarantee the index or ratio used for
determining the lease payment the evaluation results or actual exercising of purchase option renewal
option or lease termination option the Company re-measures the lease liability as per the present value
of the lease payment after change and adjust the book value of the right-of-use assets accordingly.Where the book value of the use right asset has been reduced to zero but the lease liability still needs to
be further reduced the Company includes the residual amount in the current profit or loss.
2. The Company as the lessor
On the lease inception date the Company classifies a lease in which almost all the risks and
rewards related to the ownership of the leased asset have been substantially transferred as a finance lease
and recognizes all other leases as operating leases.
(1) Operating lease
In each period during the lease term the Company recognizes lease payments as rental incomes by
using the straight-line method/units of production method; initial direct expenses incurred are capitalized
and amortized on the same basis for recognizing lease incomes for recognizing in the profit or loss for
each period. The variable lease payments acquired by the Company that are related to operating leases
and not recognized in lease payments are recognized in the profit or loss for the current period when
116 / 2152023 Semiannual Report
they actually occur.
43. Other significant accounting policies and accounting estimates
□ Applicable√ N/A
44. Changes in significant accounting policies and accounting estimates
(1). Changes in significant accounting policies
□ Applicable√ N/A
(2). Changes in significant accounting estimates
□ Applicable√ N/A
(3). The first implementation of new accounting standards or standard interpretations from 2023
onwards that involves adjusting the financial statements at the beginning of the year in which
they were first implemented
□ Applicable√ N/A
45. Others
□ Applicable√ N/A
VI. Taxes
1. Major categories of taxes and tax rates
Description of major categories of taxes and tax rates
√ Applicable□ N/A
Category of tax Basis of tax computation Tax rate
VAT payable is the difference of the
output tax calculated based on the
Value-added tax incomes from selling goods and taxable
3%6%9%13%
(VAT) services in accordance with the Tax Law
less the input tax allowed to be reduced in
the period
City maintenance 5% 7%
and construction Turnover tax payable
tax
Education 3%
Turnover tax payable
surcharges
Local education 2%
Turnover tax payable
surcharges
Enterprise income 6.5% 8.25% 8.70% 8.84% 15%
Taxable income
tax 16.5% 20% 21% 25%
Disclosure of taxpayers with different rates of enterprise income tax:
√ Applicable□ N/A
Rate of enterprise
Taxpayer
income tax (%)
Appotronics Corporation Limited 15%
Fengmi (Beijing) Technology Co. Ltd. 15%
117 / 2152023 Semiannual Report
Appotronics Hong Kong Limited 8.25% 16.5%
Beijing Orient Appotronics Technology Co. Ltd. 20%
JoveAI Innovation Inc. 8.70% 8.84% 21%
Appotronics USA Inc. 21%
Formovie Technology Inc. 21%
JoveAI Limited Tax exemption
Wemax LLC 21%
Shenzhen Appotronics Display Device Co. Ltd. 20%
Appotronics Technology (Changzhou) Co. Ltd. 20%
Qingda Appotronics (Xiamen) Technology Co. Ltd. 20%
Shenzhen Appotronics Home Line Technology Co. Ltd. 20%
Shenzhen Appotronics Laser Technology Co. Ltd. 20%
Shenzhen Appotronics Xiaoming Technology Co. Ltd. 20%
JoveAI Asia Company Limited 20%
Formovie Limited 16.5%
Chongqing Ewei Ecommerce Co. Ltd. 20%
Chongqing Guangbo Ecommerce Co. Ltd. 20%
Shenzhen Orange Juice Energy Technology Co. Ltd. 20%
Tianjin Bonian Film Partnership (LP) Tax exemption
CINEAPPO Laser Cinema Technology (Beijing) Co. Ltd. 15%
Hongkong Orange Juice Energy Technology Co. Limited 16.5%
Wemax Inc. 6.5% 21%
Shenzhen Weiwoqi Trading Co. Ltd. 20%
Yaoyouguang (Chongqing) Technology Co. Ltd. 20%
Appotronics International Limited 16.5%
Appotronics Intelligent Manufacturing (Shenzhen) Co. Ltd. 20%
Shenzhen Qianhai Taishi Investment Partnership (LP) Tax exemption
Other taxpayers except above 25%
Note:
1. Appotronics Hong Kong Limited as domiciled in Hong Kong one of which can apply the two-
level income tax system namely applying the tax rate of 8.25% for the first HKD 2 million taxable
income and 16.50% for the remaining taxable income.
2. JoveAI Limited as domiciled in the Cayman Islands is exempt from enterprise income tax.
3. Appotronics USA Inc. as domiciled in the United States applies the federal enterprise income
tax rate of 21%.
4. JoveAI Innovation Inc. as domiciled in the United States applies the federal enterprise income
tax rate of 21% the California state enterprise income tax rate of 8.84% and the Delaware state
enterprise income tax rate of 8.70%.
5. Formovie Technology Inc. as domiciled in the United States applies the federal enterprise
income tax rate of 21%.
118 / 2152023 Semiannual Report
6. JoveAI Asia Company Limited as domiciled in Vietnam applies the enterprise income tax rate
of 20%.
7. Wemax LLC as domiciled in the United States applies the federal enterprise income tax rate of
21%.
8. Formovie Limited as domiciled in Hong Kong applies the income tax rate of 16.50%.
9. Hong Kong Orange Juice Energy Technology Co. Limited as domiciled in Hong Kong applies
the income tax rate of 16.50%.
10. Wemax Inc as domiciled in the United States applies the federal enterprise income tax rate of
21% and the New York state enterprise income tax rate of 6.50%.
11. Appotronics International Limited as domiciled in Hong Kong applies the income tax rate of
16.50%.
2. Tax incentives
√ Applicable□ N/A
1. Enterprise income tax
(1) On December 19 2022 the Company obtained the High-tech Enterprise Certificate (Certificate
No.: GR202244206480) jointly issued by Shenzhen Science and Technology Innovation Commission
Shenzhen Finance Bureau and Shenzhen Tax Service of State Taxation Administration with a valid term
of three years. Therefore the Company paid the enterprise income tax at a rate of 15% in 2023.
(2) On December 17 2021 Fengmi (Beijing) Technology Co. Ltd. obtained the High-tech
Enterprise Certificate (Certificate No.: GR202111004001) jointly issued by Beijing Municipal Science
and Technology Commission Beijing Finance Bureau and Beijing Tax Service of State Taxation
Administration with a valid term of three years. Therefore the Company paid the enterprise income tax
at a rate of 15% in 2023.
(3) On October 18 2022 CINEAPPO Laser Cinema Technology (Beijing) Co. Ltd. obtained the
High-tech Enterprise Certificate (Certificate No.: GR202211008942) jointly issued by Beijing Municipal
Science and Technology Commission Beijing Finance Bureau and Beijing Tax Service of State
Taxation Administration with a valid term of three years. Therefore the Company paid the enterprise
income tax at a rate of 15% in 2023.
(4) In accordance with the Notice of the Ministry of Finance and the State Taxation Administration
on Implementing the Inclusive Tax Deduction and Exemption Policies for Micro and Small Enterprises
(Cai Shui [2019] No. 13) and the Announcement of the Ministry of Finance and the State Taxation
Administration on Implementing Preferential Income Tax Policies for Micro and Small Enterprises and
Individually-owned Businesses (Announcement No. 6 in 2023 of the Ministry of Finance and the State
Taxation Administration) the annual taxable income of a small low-profit enterprise that is not more
than RMB 1 million shall be levied with the enterprise income tax rate at a discount of 25% namely for
which the applicable enterprise income tax rate is 20%; for the annual taxable income more than RMB 1
million but no more than RMB 3 million the taxable income shall be calculated at a discount of 50%
namely for which the applicable enterprise income tax rate is 20%. The following companies are
119 / 2152023 Semiannual Report
qualified for enjoying such tax incentives: Beijing Orient Appotronics Technology Co. Ltd. Shenzhen
Appotronics Display Device Co. Ltd. Appotronics Technology (Changzhou) Co. Ltd. Qingda
Appotronics (Xiamen) Technology Co. Ltd. Shenzhen Appotronics Home Line Technology Co. Ltd.Shenzhen Appotronics Laser Technology Co. Ltd. Shenzhen City Appotronics Xiaoming Technology
Co. Ltd. Chongqing Ewei Ecommerce Co. Ltd. Chongqing Guangbo Ecommerce Co. Ltd. Shenzhen
Orange Juice Energy Technology Co. Ltd. Shenzhen Weiwoqi Trading Co. Ltd. Yaoyouguang
(Chongqing) Technology Co. Ltd. and Appotronics Intelligent Manufacturing (Shenzhen) Co. Ltd.
2. Value-added tax (VAT)
(1) In accordance with the Notice of the Ministry of Finance and the State Administration of
Taxation on Value-added Tax Policies for Software Products (Cai Shui [2011] No. 100) for self-
developed and produced software products sold by general VAT taxpayers the tax-refund-upon-
collection policy is applicable to the part of their actual VAT burden in excess of 3% after the VAT has
been collected at a tax rate of 17%. Appotronics Corporation Limited Fengmi (Beijing) Technology Co.Ltd. and Shenzhen Appotronics Software Technology Co. Ltd. are qualified for enjoying such tax
incentives.
(2) According to the Announcement of the Ministry of Finance and the State Taxation
Administration on Clarifying the Policies for Reducing and Exempting Value-added Tax of Small-scale
Taxpayers (Announcement No. 1 of 2023 by the Ministry of Finance and the State Taxation
Administration) production and service-oriented taxpayers are allowed to deduct an additional 5% of
the deductible input tax amount from the payable tax amount; CINEAPPO Laser Cinema Technology
(Beijing) Co. Ltd. is qualified for this tax incentive.
3. Others
□ Applicable√ N/A
VII. Notes to items in the consolidated financial statements
1. Monetary funds
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Cash on hand 3346.05 5479.42
Bank deposits 1257428379.51 1283079345.51
Other monetary funds 21762201.92 72797383.70
Total 1279193927.48 1355882208.63
Including: Total overseas deposits 185283856.24 261403774.28
Other information:
In other monetary funds an amount of RMB 10961787.42 is restricted for in use because they are
security deposits; In the bank deposits RMB 40000005.49 is deposited by the Company at banks at
term deposits or in restricted accounts and therefore is not presented as cash and cash equivalents in the
cash flow statement.
2. Held-for-trading financial assets
√ Applicable□ N/A
Unit: Yuan Currency: RMB
120 / 2152023 Semiannual Report
Item Closing balance Opening balance
Financial assets at fair value through profit or loss 564877200.00 352880000.00
Including:
Equity instrument investment 42880000.00 42880000.00
Structural deposits 521997200.00 310000000.00
Total 564877200.00 352880000.00
Other information:
□ Applicable√ N/A
3. Derivative financial assets
□ Applicable√ N/A
4. Notes receivable
(1). Categories of notes receivable
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Bank acceptances
Commercial acceptances 3404025.55 2234687.77
Total 3404025.55 2234687.77
(2). Notes receivable pledged by the Company at the end of the period
□ Applicable√ N/A
(3). Notes receivable which are undue as at the balance sheet date but endorsed or discounted by
the Company at the end of the period
□ Applicable√ N/A
(4). Notes transferred to accounts receivable due to drawer’s failure in cashing at the end of the
period
□ Applicable√ N/A
(5). Disclosure by categories of provision for bad debts
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance
Provision for Provision for
Carrying amount Carrying amount
bad debts bad debts
Per
Perce cent
Category ntage Book age
Percent Perce Book value
Amoun of value of
Amount age Amount ntage Amount
t provi pro
(%)(%)
sion visi
(%) on
(%)
121 / 2152023 Semiannual Report
Provisio
n for bad
debts
made
individu
ally
Including:
Provisio
n for bad
358318179153404025.2352302.100.0117615.15.02234687.7
debts 100.00 5.00
4.809.2555920507
made by
group
Including:
Bank
acceptan
ce bills
Commer 358318 100.00 17915 5.00 3404025. 2352302. 100.0 117615.1 5.0 2234687.7
cial 4.80 9.25 55 92 0 5 0 7
acceptan
ce bills
358318100.00179155.003404025.2352302.100.0117615.15.02234687.7
Total
4.809.2555920507
Provision for bad debts made individually:
□ Applicable√ N/A
Provision for bad debts made by group:
√ Applicable□ N/A
Item by group: Commercial acceptance bills
Unit: Yuan Currency: RMB
Closing balance
Name Percentage of provision
Notes receivable Provision for bad debts
(%)
Group of commercial 3583184.80 179159.25 5.00
acceptance bills
Total 3583184.80 179159.25 5.00
Recognition criterion to make the Provision for bad debts by group and explanation
□ Applicable√ N/A
If the bad debt provision is made according to the general model of ECL please refer to the disclosure of
other receivables:
□ Applicable√ N/A
(6). Provision for bad debts
√ Applicable□ N/A
Unit: Yuan Currency: RMB
122 / 2152023 Semiannual Report
Changes for the current period
Opening Closing
Category Recovery or Write off or
balance Provision balance
reversal cancellation
Provision for bad debts
made individually
Provision for bad debts
117615.1561544.10179159.25
made by group
Total 117615.15 61544.10 179159.25
Including significant amounts recovered or reversed from the current provision for bad
debts:
□ Applicable√ N/A
Other information:
None
(7). Notes receivable actually canceled in the current period
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
5. Accounts receivable
(1). Disclosure by aging
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Aging Closing balance of carrying amount
Within 1 year
Including: Sub-items within 1 year
Within 1 year 201099239.16
Sub-total of items within 1 year 201099239.16
1 to 2 years 34816446.50
2 to 3 years 4747311.85
Over 3 years 306798.88
Total 240969796.39
(2). Disclosure by categories of provision for bad debts
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance
Category Carrying Provision for bad Book Carrying Provision for Book
amount debts value amount bad debts value
123 / 2152023 Semiannual Report
Perce
Percent ntage
Perce Perce
age of of
Amount ntage Amount Amount ntage Amount
provisi provi
(%)(%)
on (%) sion
(%)
Provision for
bad debts 176624 176624 164985 164985 100.0
7.33100.006.89
made 66.52 66.52 40.60 40.60 0
individually
Including:
Provision for
bad debts 176624 176624 164985 164985 100.0
7.33100.006.89
made 66.52 66.52 40.60 40.60 0
individually
Provision for
bad debts 223307 165800 206727 222932 146723 208260
92.677.4293.116.58
made by 329.87 72.67 257.20 593.11 57.32 235.79
group
Including:
Accounts
receivable for
which the
223307165800206727222932146723208260
provision for 92.67 7.42 93.11 6.58
329.8772.67257.20593.1157.32235.79
bad debts is
made by
aging group
240969100.0342425206727239431100.0311708208260
Total 14.21 13.02
796.39039.19257.20133.71097.92235.79
Provision for bad debts made individually:
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance
Name Provision for bad Percentage of Reason for
Carrying amount
debts provision (%) provision
Expected to be
unrecoverable
Company A 16875766.52 16875766.52 100.00 because the
customer is in
hardship
Expected to be
Company B 786700.00 786700.00 100.00 unrecoverable
because the
124 / 2152023 Semiannual Report
customer is in
hardship
Total 17662466.52 17662466.52 100.00 /
Explanation about provision for bad debts made individually:
□ Applicable√ N/A
Provision for bad debts made by group:
√ Applicable□ N/A
Item by group: Accounts receivable for which the provision for bad debts is made by aging group
Unit: Yuan Currency: RMB
Closing balance
Name Percentage of provision
Accounts receivable Provision for bad debts
(%)
Within 1 year 198608813.03 9930440.68 5.00
1 to 2 years 23412103.50 5853025.88 25.00
2 to 3 years 979614.46 489807.24 50.00
Over 3 years 306798.88 306798.88 100.00
Total 223307329.87 16580072.67 7.42
Recognition criterion to make the Provision for bad debts by group and explanation:
□ Applicable√ N/A
If the bad debt provision is made according to the general model of ECL please refer to the disclosure of
other receivables:
□ Applicable√ N/A
(3). Provision for bad debts
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Changes for the current period
Opening Recovery Closing
Category Write off or Other
balance Provision or balance
cancellation changes
reversal
Provision for
bad debts
16498540.601233776.9769851.0517662466.52
made
individually
Provision for
bad debts
14672357.321909765.352050.0016580072.67
made by
group
Total 31170897.92 3143542.32 69851.05 2050.00 34242539.19
Including significant amounts recovered or reversed from the current provision for bad debts:
□ Applicable√ N/A
(4). Accounts receivable actually canceled in the current period
√ Applicable□ N/A
Unit: Yuan Currency: RMB
125 / 2152023 Semiannual Report
Item Cancellation amount
Accounts receivable actually canceled 2050.00
In which significant amounts canceled are described as below:
□ Applicable√ N/A
Description of accounts receivable cancellation:
□ Applicable√ N/A
(5). Top five closing balances of accounts receivable categorized by debtors
√ Applicable□ N/A
Entity Carrying Proportion to the balance of Provision for Percentage of
amount accounts receivable (%) bad debts provision (%)
Top 1 74247921.96 30.81 3712396.10 5.00
Top 2 27415195.69 11.38 1377935.38 5.03
Top 3 16875766.52 7.00 16875766.52 100.00
Top 4 15719222.85 6.52 2374725.82 15.11
Top 5 12880063.84 5.35 644003.19 5.00
Total 147138170.86 61.06 24984827.02 16.98
(6). Accounts receivable derecognized due to transfer of financial assets
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Amount Gains or losses associated with Method of
derecognized derecognition transferring financial
assets
CCB E
3000000.00 Discount
Infocomm
Sub-total 3000000.00
(7). Assets and liabilities arising from transfer of accounts receivable and continued involvement
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
6. Receivables financing
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Bank acceptance bills 15223418.33 4279041.00
Total 15223418.33 4279041.00
Changes in amount and fair value of receivables financing:
□ Applicable√ N/A
If the bad debt provision is made according to the general model of ECL please refer to the disclosure of
other receivables:
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
126 / 2152023 Semiannual Report
7. Prepayments
(1). Disclosure of prepayments by aging
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance
Aging
Amount Percentage (%) Amount Percentage (%)
Within 1 year 16262610.13 46.78 37333767.05 77.06
1 to 2 years 10111878.04 29.09 4701469.65 9.70
2 to 3 years 7693706.89 22.13 6410740.16 13.24
Over 3 years 696186.62 2.00
Total 34764381.68 100.00 48445976.86 100.00
Reasons for overdue settlement of prepayments with significant amounts aged more than 1 year:
Item Balance Reasons for no settlement
Not delivered due to ongoing
Company C 6503220.00 efforts for solving a technical
difficulty
(2). Top five closing balances of prepayments categorized by receivers
√ Applicable□ N/A
Entity Closing balance Proportion to the total closing balance of
prepayments (%)
Top 1 6503220.00 18.71
Top 2 6135245.74 17.65
Top 3 3048575.71 8.77
Top 4 2014000.00 5.79
Top 5 1438253.83 4.14
Sub-total 19139295.28 55.05
Other information
□ Applicable√ N/A
8. Other receivables
Presented by item
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Interest receivable
Dividend receivable 14307084.00 13789908.00
Other receivables 12666138.84 12541813.55
Total 26973222.84 26331721.55
Other information:
□ Applicable√ N/A
127 / 2152023 Semiannual Report
Interest receivable
(1). Categories of interest receivable
□ Applicable√ N/A
(2). Significant interests overdue
□ Applicable√ N/A
(3). Provision for bad debts
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
(1). Dividends receivable
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Project (or investee) Closing balance Opening balance
Dividend distribution from GDC Technology Limited
14307084.0013789908.00
(BVI)
Total 14307084.00 13789908.00
(2). Dividends receivable with significant amounts aged more than 1 year
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Whether
impairment
Closing has occurred
Project (or investee) Aging Reason for non-recovery
balance and the basis
for its
judgment
Dividend distribution from There are matters not reached an
1-2 agreement through negotiation
GDC Technology Limited 14307084.00 No
years and the payment has not yet
(BVI) been made
Total 14307084.00 - - -
(3). Provision for bad debts
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
Other receivables
(4). Disclosure by aging
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Aging Closing balance of carrying amount
Within 1 year
Including: Subitems within 1 year
128 / 2152023 Semiannual Report
Within 1 year 4814935.60
Sub-total of items within 1 year 4814935.60
1 to 2 years 2052183.69
2 to 3 years 1085737.64
Over 3 years 5412560.59
Total 13365417.52
(5). Categories by the nature of other receivables
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance of carrying Opening balance of carrying
Nature of receivables
amount amount
Deposits/margins/petty cash 11046676.68 11162127.62
Withholding 770800.89 818004.80
Temporary receivables 1547939.95 1133717.92
Compensation receivable 65819.64
Total 13365417.52 13179669.98
(6). Provision for bad debts
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Stage I Stage II Stage III
Provision for bad Lifetime ECL
12-month ECL Lifetime ECL (with Total
debts (without credit
in the future credit impairment)
impairment)
Balance as at January
613139.9424716.49637856.43
12023
Balance as at January
1 2023 in the current
period
--transferred to Stage
II
--transferred to Stage
III
--reversed to Stage II
--reversed to Stage I
Provision 83606.33 -22184.08 61422.25
Reversal
Write-off
Cancellation
Other changes
Balance as at June 30 696746.27 2532.41 699278.68
129 / 2152023 Semiannual Report
2023
Description of significant changes in the balance of other receivables with changed provisions for losses
in the current period:
□ Applicable√ N/A
Basis for recognizing the amount of provision for bad debts and evaluating whether the credit risk of
financial instruments has been increased significantly in the current period:
□ Applicable√ N/A
(7). Provision for bad debts
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Changes for the current period
Opening Closing
Category Recovery or Write off or Other
balance Provision balance
reversal cancellation changes
Provision for
bad debts 637856.43 61422.25 699278.68
made by group
Total 637856.43 61422.25 699278.68
Including significant amounts recovered or reversed from the current provision for bad debts:
□ Applicable√ N/A
(8). Other receivables actually canceled in the current period
□ Applicable√ N/A
(9). Top five closing balances of other receivables categorized by debtors
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Proportion to
Provision for
the balance of
Nature of other Closing bad debts
Entity Aging other
receivables balance Closing
receivables
balance
(%)
Deposits/margins/petty
Top 1 3574618.00 Over 3 years 26.75 178730.90
cash
Deposits/margins/petty
Top 2 1310675.20 Over 3 years 9.81 65533.76
cash
Within 1 year; 1-2
Deposits/margins/petty
Top 3 900000.00 years; 2-3 years; 6.73 45000.00
cash
Over 3 years
Deposits/margins/petty
Top 4 683180.24 Within 1 year 5.11 34159.01
cash
Deposits/margins/petty Within 1 year; 2-3
Top 5 505491.60 3.78 25274.58
cash years
Total - 6973965.04 - 52.18 348698.25
130 / 2152023 Semiannual Report
(10). Accounts receivable involving government grants
□ Applicable√ N/A
(11). Other receivables derecognized due to transfer of financial assets
□ Applicable√ N/A
(12). Assets and liabilities arising from transfer of other receivables and continued involvement
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
9. Inventories
(1). Categories of inventories
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance
Provision for decline Provision for decline
in value of in value of
Item Carrying Carrying
inventories/impairment Book value inventories/impairment Book value
amount amount
of contract of contract
performance cost performance cost
Raw
476094221.5729828966.97446265254.60511371448.7829152044.36482219404.42
materials
Work in
12707512.13963414.8311744097.3015037109.262581014.2112456095.05
progress
Goods on
320339395.1438858676.06281480719.08354588226.8724770894.74329817332.13
hand
Goods upon 15058879.28 3310312.17 11748567.11 31157150.48 1901108.14 29256042.34
delivery
Materials 4168659.09 183081.13 3985577.96 9397672.25 246897.56 9150774.69
for
consigned
processing
Contract
performance 3200650.71 705862.34 2494788.37 2740313.16 2740313.16
cost
Total 831569317.92 73850313.50 757719004.42 924291920.80 58651959.01 865639961.79
(2). Provision for decline in value of inventories and impairment of contract performance cost
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Increase Decrease
Opening
Item Reversal or Closing balance
balance Provision Others Others
write-off
Raw materials 29152044.36 2294599.08 3349.33 1621025.80 29828966.97
131 / 2152023 Semiannual Report
Work in
2581014.21959268.102576867.48963414.83
progress
Goods on hand 24770894.74 21960705.51 34089.15 7907013.34 38858676.06
Goods upon
1901108.141409204.033310312.17
delivery
Materials for
consigned 246897.56 -52231.78 11584.65 183081.13
processing
Contract
performance 705862.34 705862.34
cost
Total 58651959.01 27277407.28 37438.48 12116491.27 73850313.50
(3). Description of capitalized amount of borrowing costs included in the closing balance of
inventories
□ Applicable√ N/A
(4). Description of amortization of contract performance cost during the period
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
10. Contract assets
(1). Description of contract assets
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance
Item Carrying Provision for Carrying Provision for
Book value Book value
amount impairment amount impairment
Warranty
security 1668534.88 187601.32 1480933.56 1031362.02 153332.67 878029.35
receivable
Goods
1202847.321075479.32127368.001202847.321019295.32183552.00
payment
Total 2871382.20 1263080.64 1608301.56 2234209.34 1172627.99 1061581.35
(2). Amount and reasons of major changes in the book value during the reporting period
□ Applicable√ N/A
(3). Description of provision for impairment made on contract assets during the period
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Reversal Write-
Item Provision Reason
off/cancellation
Provision made by 90452.65
132 / 2152023 Semiannual Report
group
Total 90452.65 /
If the bad debt provision is made according to the general model of ECL please refer to the disclosure
of other receivables:
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
11. Held-for-sale assets
□ Applicable√ N/A
12. Non-current assets due within 1 year
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Debt investments due within 1 year
Other debt investments due within 1
year
Long-term receivables due within 1
28306652.3113431554.82
year
Total 28306652.31 13431554.82
Debt investments and other debt investments with significant amounts at the end of the period:
□ Applicable√ N/A
Other information:
None
13. Other current assets
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Input VAT to be deducted 90522705.12 96670912.86
Prepaid enterprise income tax 4367773.15 6101724.28
Cost of returned goods receivable 1065708.83 3729974.65
Total 95956187.10 106502611.79
Other information:
None
14. Debt investments
(1). Description of debt investments
□ Applicable√ N/A
(2). Debt investments with significant amounts at the end of the period
□ Applicable√ N/A
(3). Description of provision for impairment
□ Applicable√ N/A
133 / 2152023 Semiannual Report
15. Other debt investments
(1). Description of other debt investments
□ Applicable√ N/A
(2). Other debt investments with significant amounts at the end of the period
□ Applicable√ N/A
(3). Description of provision for impairment
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
16. Long-term receivables
(1) Description of long-term receivables
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance Range
of
Item Carrying Provision for Carrying Provision for
Book value Book value discount
amount bad debts amount bad debts
rate
Installment 4.30%-
24448456.361519399.4822929056.8814773704.482834052.0211939652.46
payment 4.65%
Including:
Financing 4.30%-
-730427.69-730427.69-415458.66-415458.66
income not 4.65%
realized
Total 23718028.67 1519399.48 22198629.19 14358245.82 2834052.02 11524193.80 /
(2) Provision for bad debts
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Stage I Stage II Stage III
Provision for bad Lifetime ECL
12-month ECL in Lifetime ECL (with Total
debts (without credit
the future credit impairment)
impairment)
Balance as at January
2834052.022834052.02
12023
Balance as at January
1 2023 in the current
period
--transferred to Stage
II
--transferred to Stage
III
--reversed to Stage II
134 / 2152023 Semiannual Report
--reversed to Stage I
Provision 723105.21 723105.21
Reversal
Write-off
Cancellation
-
Other changes -2037757.75
2037757.75
Balance as at June
1519399.481519399.48
302023
Description of significant changes in the balance of long-term receivables with changed provisions for
losses in the current period:
√ Applicable□ N/A
“Other changes” indicate the amount of the provision for bad debts that was transferred to long-term
receivables due within 1 year.Basis for recognizing the amount of provision for bad debts and evaluating whether the credit risk of
financial instruments has been increased significantly in the current period:
□ Applicable√ N/A
(3) Long-term receivables derecognized due to transfer of financial assets
□ Applicable√ N/A
(4) Assets and liabilities arising from transfer of long-term receivables and continued
involvement
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
17. Long-term equity investments
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Changes for the current period
Closi
Adju
Invest ng
stme
Decr ment Declar balan
Openi nt in Other Provis Closin
Additi ease profit ed ce of
Investe ng other equit ion g
onal d or loss cash Other provis
e balan comp y for balanc
invest inves under divide s ion
ce rehen chan impair e
ment tmen equity nds or for
sive ges ment
t metho profits impai
inco
d rment
me
I. Joint
ventur
e
Sub-
total
135 / 2152023 Semiannual Report
II.Associ
ates
GDC
Techn - -
162363761565
ology 8071 4176
9491372.12314
Limite 814.7 328.
7.5706.05
d 5 87
(BVI)
Sub- - -
162363761565
total 8071 4176
9491372.12314
814.7328.
7.5706.05
587
--
162363761565
80714176
Total 9491 372.1 2314
814.7328.
7.5706.05
587
Other information
“Others” under “Changes for the current period” was the amount from the change in foreign currency
exchange gain or loss.
18. Other equity instrument investments
(1). Description of other equity instrument investments
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Shen Zhen Timewaying Technology 7075419.38 7075419.38
Co. Ltd.Shenzhen Bevix Technology Co. Ltd.Total 7075419.38 7075419.38
(2). Description of equity investments not held for trading
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Reasons for
Reasons for
Dividends Amounts to designating
transferring
income retained as financial
to retained
recognize Accumulate Accumulate earnings from assets at fair
Item earnings from
d for the d gains d losses other value through
other
current comprehensiv other
comprehensiv
period e income comprehensiv
e income
e income
Shen Zhen Subject to the
Timewayin management’
136 / 2152023 Semiannual Report
g s intention of
Technolog holding
y Co. Ltd.Shenzhen Subject to the
Bevix management’
Technolog s intention of
y Co. Ltd. holding
Other information:
√ Applicable□ N/A
The Company’s equity investments in Shen Zhen Timewaying Technology Co. Ltd. and Shenzhen
Bevix Technology Co. Ltd. are mainly for promoting future business cooperation rather than making
transactions hence they are designated as investments in equity instruments at fair value through other
comprehensive income.The cost of Shenzhen Bevix Technology Co. Ltd. is RMB 4900000.00 and the fair value change is -
RMB 4900000.00.
19. Other non-current financial assets
□ Applicable√ N/A
20. Investment property
Measurement mode of investment properties
N/A
21. Fixed assets
Presented by item
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Fixed assets 379962412.96 427539718.53
Disposal of fixed assets
Total 379962412.96 427539718.53
Other information:
None
Fixed assets
(1). Description of fixed assets
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Electronic
Machinery and Transportatio Operating leased
Item equipment and Total
equipment n equipment equipment
others
I. Original book
value:
1. Opening
159638878.711171400.0558558067.60682654171.75902022518.11
balance
2. Increase 10467813.25 486486.74 2747223.45 6972816.06 20674339.50
137 / 2152023 Semiannual Report
(1)
9950187.05486486.742560297.9112996971.70
Purchase
(2)
Transfer from
6972816.066972816.06
construction in
progress
(3)
Transfer from 334565.82 72569.90 407135.72
inventories
(4)
Exchange rate 183060.38 114355.64 297416.02
changes
3.
2851486.44712629.6716490101.1220054217.23
Decrease
(1)
Disposal or 2851486.44 454730.00 269230.77 3575447.21
retirement
(2)
Transfer to 257899.67 16220870.35 16478770.02
inventories
4. Closing
167255205.521657886.7960592661.38673136886.69902642640.38
balance
II. Accumulated
depreciation
1. Opening
77432539.28758120.7930586219.43364608760.63473385640.13
balance
2. Increase 12520028.89 97799.22 4358304.49 43126901.58 60103034.18
(1)
12421481.4097799.224280360.6643126901.5859926542.86
Provision
(2)98547.4977943.83176491.32
Exchange rate
changes
3.
2621874.58505329.3710538978.8313666182.78
Decrease
(1)
Disposal or 2621874.58 409719.07 217229.08 3248822.73
retirement
(2)95610.3010321749.7510417360.05
Transfer to
inventories
4. Closing
87330693.59855920.0134439194.55397196683.38519822491.53
balance
III. Provision
138 / 2152023 Semiannual Report
for impairment
1. Opening
1097159.451097159.45
balance
2. Increase 1833685.55 1833685.55
(1)
1833685.551833685.55
Provision
3.
73109.1173109.11
Decrease
(1)
Disposal or 8795.77 8795.77
retirement
(2)64313.3464313.34
Transfer to
inventories
4. Closing
2857735.892857735.89
balance
IV. Book value
1. Closing
79924511.93801966.7826153466.83273082467.42379962412.96
book value
2. Opening
82206339.43413279.2627971848.17316948251.67427539718.53
book value
(2). Temporarily idle fixed assets
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Original book Accumulated Provision for
Item Book value Remark
value depreciation impairment
Operating
leased 45485926.77 28123113.06 2516133.64 14846680.07
equipment
(3). Fixed assets acquired under finance lease
□ Applicable√ N/A
(4). Fixed assets leased out under operating lease
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance of book value
Operating leased equipment 258235787.35
(5). Fixed assets of which certificates of title have not been obtained
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
139 / 2152023 Semiannual Report
Disposal of fixed assets
□ Applicable√ N/A
22. Construction in progress
Presented by item
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Construction in progress 314382210.87 278978057.73
Materials for construction
Total 314382210.87 278978057.73
Other information:
None
Construction in progress
(1). Description of construction in progress
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance
Provision Provision
Item Carrying Carrying
for Book value for Book value
amount amount
impairment impairment
Headquarter
309377852.19309377852.19270837599.21270837599.21
buildings
Assets to be
5004358.685004358.686266605.316266605.31
leased
Decoration
1873853.211873853.21
construction
Total 314382210.87 314382210.87 278978057.73 278978057.73
140 / 2152023 Semiannual Report
(2). Changes in significant constructions in progress for the current period
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Interest
Amount
Amount Amount of Including: capitaliza
injected as a
Budget Opening transferred Other Closing Construction accumulated Capitalized tion rate Source
Item Increase proportion of
amount balance to fixed decreases balance progress capitalized interest for for the of funds
budget
assets interest the period period
amount (%)
(%)
Headqu Self-
arter 534635200 270837599. 38540252. owned
309377852.1963.0863.088011931.433015800.644.08
buildin .00 21 98 capital
gs
Assets Self-
to be 6266605.31 5710569.43 6972816.06 5004358.68 owned
leased capital
534635200277104204.
Total 44250822.41 6972816.06 314382210.87 - - 8011931.43 3015800.64 - -.0052
141 / 2152023 Semiannual Report
(3). Provision for impairment losses for construction in progress in the current period
□ Applicable√ N/A
Other information
□ Applicable√ N/A
Materials for construction
□ Applicable√ N/A
23. Productive biological assets
(1). Productive biological assets measured at cost
□ Applicable√ N/A
(2). Productive biological assets measured at fair value
□ Applicable√ N/A
Other information
□ Applicable√ N/A
24. Oil and gas assets
□ Applicable√ N/A
25. Right-of-use asset
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Houses and buildings Total
I. Original book value
1. Opening balance 80936615.37 80936615.37
2. Increase 9052943.22 9052943.22
(1) Rents 9013018.21 9013018.21
(2) Other changes 39925.01 39925.01
3. Decrease 763530.71 763530.71
(1) Disposal 763530.71 763530.71
4. Closing balance 89226027.88 89226027.88
II. Accumulated depreciation
1. Opening balance 18680945.08 18680945.08
2. Increase 14920234.73 14920234.73
(1) Provision 14899916.76 14899916.76
(2) Other changes 20317.97 20317.97
3. Decrease 179705.50 179705.50
(1) Disposal 179705.50 179705.50
4. Closing balance 33421474.31 33421474.31
III. Provision for impairment
1. Opening balance
2. Increase
(1) Provision
3. Decrease
142 / 2152023 Semiannual Report
(1) Disposal
4. Closing balance
IV. Book value
1. Closing book value 55804553.57 55804553.57
2. Opening book value 62255670.29 62255670.29
Other information:
None
26. Intangible assets
(1). Description of intangible assets
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Land use rights Patents Software Total
I. Original book value
1. Opening balance 330630000.00 20059950.00 20151437.21 370841387.21
2. Increase 2899914.47 2899914.47
(1) Purchase 2875894.25 2875894.25
(2) Exchange
24020.2224020.22
rate changes
3. Decrease
(1) Disposal
4. Closing balance 330630000.00 20059950.00 23051351.68 373741301.68
II. Accumulated
amortization
1. Opening balance 49594500.18 16390600.14 10845243.95 76830344.27
2. Increase 5510500.02 2144910.13 7655410.15
(1) Provision 5510500.02 2121924.37 7632424.39
(2) Exchange
22985.7622985.76
rate changes
3. Decrease
(1) Disposal
4. Closing balance 55105000.20 16390600.14 12990154.08 84485754.42
III. Provision for
impairment
1. Opening balance 3669349.86 3669349.86
2. Increase
(1) Provision
3. Decrease
(1) Disposal
4. Closing balance 3669349.86 3669349.86
IV. Book value
1. Closing book
275524999.8010061197.60285586197.40
value
2. Opening book 281035499.82 9306193.26 290341693.08
143 / 2152023 Semiannual Report
value
The proportion of intangible assets generated by the Company’s internal research and development to
the balance of intangible assets at the end of the period is 0%.
(2). Land use rights of which certificates of title have not been obtained
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
27. Development expenditure
□ Applicable√ N/A
28. Goodwill
(1). Gross carrying amount of goodwill
□ Applicable√ N/A
(2). Impairment provision of goodwill
□ Applicable√ N/A
(3). Relevant information of groups of assets or combinations of groups of assets where the
goodwill is recognized
□ Applicable√ N/A
(4). Specify test procedure key parameters of impairment of goodwill (such as increase rate at
the projection period increase rate at the steady period profit rate discount rate and
projection period upon the estimates of the presented value of future cash flow) as well as
recognition method for impairment loss
□ Applicable√ N/A
(5). Impacts on test of goodwill impairment
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
29. Long-term prepaid expenses
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Opening Closing
Item Increase Amortization Other decreases
balance balance
Decoration
5935938.093232521.811940313.25-18799.027246945.67
construction
RTO gas for
55045.94
the screen 16513.74 38532.20
project
Total 5990984.03 3232521.81 1956826.99 -18799.02 7285477.87
Other information:
None
144 / 2152023 Semiannual Report
30. Deferred tax assets and deferred tax liabilities
(1). Deferred tax assets that are not offset
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance
Deductible Deferred tax Deductible Deferred tax
Item
temporary assets temporary assets
differences differences
Provision for impairment
67348572.4410102393.8754480645.828172204.87
of assets
Unrealized profits for
250032883.0537504932.45293141594.9043971239.24
insider transactions
Provisions 33155919.65 4973387.95 33861061.30 5079159.20
Share-based payment
55758843.588367280.9878336744.6411756236.09
expenses
Deferred income 2657700.76 398655.11 5651422.25 847713.34
Leases 894583.85 135455.56 848471.94 128229.81
Losses from changes in
1120000.00168000.001120000.00168000.00
fair values
Deductible losses 133936891.98 20090533.80 145752332.17 21862849.83
Total 544905395.31 81740639.73 613192273.02 91985632.38
(2). Deferred tax liabilities that are not offset
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance
Taxable Deferred tax Taxable Deferred tax
Item
temporary liabilities temporary liabilities
differences differences
Long-term receivables 24429108.67 3664366.30 15031309.08 2254696.36
Other current assets -
Cost of returned goods 46685.41 7002.81
receivable
Total 24475794.08 3671369.11 15031309.08 2254696.36
(3). Deferred tax assets and deferred tax liabilities that are presented at the net amount after
offset
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing set-off Closing balance Opening set-off Opening balance
amounts of of deferred tax amount of of deferred tax
Item
deferred tax assets or deferred tax assets or
assets and liabilities after assets and liabilities after
145 / 2152023 Semiannual Report
liabilities set-off liabilities set-off
Deferred tax assets 3671369.11 78069270.62 2254696.36 89730936.02
Deferred tax liabilities 3671369.11 2254696.36
(4). Details of unrecognized deferred tax assets
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Provision for impairment of assets 55225838.14 47406755.88
Unrealized profits for insider 33624043.48
36617810.36
transactions
Provisions 20307631.71 18872846.92
Deferred income 2454545.47 3000000.01
Share-based payment expenses 724391.43 3180261.29
Leases 1992084.01 1557490.63
Profit distribution from partnership 15991.72
enterprises
Changes in fair value of 4900000.00
investments in other equity 4900000.00
instruments
Deductible losses 541984302.47 322268687.11
Total 664206603.59 434826077.04
(5). Deductible losses for which no deferred tax assets are recognized will expire in the following
years
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Year Closing balance Opening balance Remark
20234629271.354629271.35
20243721926.963721926.96
20254647581.114647581.11
202687289773.7598077911.35
2027188173306.33105226991.61
2028118599765.45
No expiry date 134922677.52 105965004.73
Total 541984302.47 322268687.11 /
Other information:
□ Applicable√ N/A
31. Other non-current assets
√ Applicable□ N/A
Unit: Yuan Currency: RMB
146 / 2152023 Semiannual Report
Closing balance Opening balance
Provision Provision
Item Carrying Carrying
for Book value for Book value
amount amount
impairment impairment
Prepayment
for
purchase of 18633790.53 18633790.53 12569088.37 12569088.37
long-term
assets
Total 18633790.53 18633790.53 12569088.37 12569088.37
Other information:
None
32. Short-term borrowings
(1). Categories of short-term borrowings
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Notes discount within the group 30000000.00
Guaranteed loans 69500000.00 39500000.00
Credit loans 60000000.00 60000000.00
Interest payable 104426.40 89634.03
Total 129604426.40 129589634.03
Description for categories of short-term borrowings:
None
(2). Short-term borrowings overdue but not yet repaid
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
33. Held-for-trading financial liabilities
□ Applicable√ N/A
34. Derivative financial liabilities
□ Applicable√ N/A
35. Notes payable
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Category Closing balance Opening balance
Commercial acceptance
bills
Bank acceptance bills 80254013.57 201299388.57
Total 80254013.57 201299388.57
Total notes payable matured but not paid yet is RMB 0 at the end of the period.
147 / 2152023 Semiannual Report
36. Accounts payable
(1). Presented by accounts payable
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Amounts payable for purchase 275507953.57 276845321.28
Total 275507953.57 276845321.28
(2). Accounts payable with significant amounts aged more than 1 year
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
37. Receipts in advance
(1). Presented by receipts in advance
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Advance payments of recharge
99404605.97113834728.10
fees
Total 99404605.97 113834728.10
(2). Receipts in advance with significant amounts aged more than 1 year
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Reasons for not repaid or carried-
Item Closing balance
forward
Lease payments received in
Company D 8291234.83
advance
Total 8291234.83 /
Other information:
□ Applicable√ N/A
38. Contract liabilities
(1). Description of contract liabilities
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Goods payment 39465849.54 37285920.43
Total 39465849.54 37285920.43
148 / 2152023 Semiannual Report
(2). Amount and reasons of major changes in the book value during the reporting period
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
39. Employee benefits payable
(1). Presented by employee benefits payable
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Opening balance Increase Decrease Closing balance
I. Short-term
57760642.14180487550.87209126826.7729121366.24
benefits
II. Post-
employment
170231.908970833.408975331.91165733.39
benefits-defined
contribution plan
III. Dismissal
540086.515230288.435312758.12457616.82
benefits
IV. Other benefits
due within 1 year
Total 58470960.55 194688672.70 223414916.80 29744716.45
(2). Presented by short-term employee benefits
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Opening balance Increase Decrease Closing balance
I. Wages or salaries
bonuses allowances 57630572.03 161249944.24 189946770.35 28933745.92
and subsidies
II. Staff welfare 2396777.44 2396777.44
III. Social security
107849.715588106.635573461.28122495.06
contributions
Including: Medical
102565.345194748.765180056.00117258.10
insurance
Work injury
5267.39241105.94241177.945195.39
insurance
Maternity
16.98152251.93152227.3441.57
insurance
IV. Housing funds 10780341.66 10780341.66
V. Union running
costs and employee 22220.40 472380.90 429476.04 65125.26
education costs
VI. Short-term paid
149 / 2152023 Semiannual Report
leaves
VII. Short-term
profit sharing plan
Total 57760642.14 180487550.87 209126826.77 29121366.24
(3). Presented by defined contribution plan
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Opening
Item Increase Decrease Closing balance
balance
1. Basic pensions 164547.68 8715951.66 8720362.91 160136.43
2. Unemployment
5684.22254881.74254969.005596.96
insurance
3. Enterprise annuity
contribution
Total 170231.90 8970833.40 8975331.91 165733.39
Other information:
□ Applicable√ N/A
40. Taxes payable
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Value-added tax (VAT) 415633.50 283831.65
Enterprise income tax 3423409.78 1329891.54
Individual income tax 1503794.91 5330584.62
City maintenance and
420196.47461779.38
construction tax
Education surcharges 181807.01 200014.57
Local education surcharges 118333.33 133343.03
Stamp duty 368555.48 521340.60
Annual franchise right tax 12381.41 11933.84
Urban land use tax 8914.32 49.67
Others 39.95
Total 6453066.16 8272768.90
Other information:
None
41. Other payables
Presented by item
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
150 / 2152023 Semiannual Report
Interest payable
Dividend payable 797774.22
Other payables 119109874.30 56662357.08
Total 119907648.52 56662357.08
Other information:
None
Interest payable
□ Applicable√ N/A
Dividends payable
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Dividends on ordinary shares 797774.22
Total 797774.22
Other description including significant dividend payable with aging of over 1 year and the reason of
non-payment shall be disclosed:
None
Other payables
(1). Other payables presented by nature
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Withholding 118512.62 264611.23
Deposits/margins 11630428.35 9538090.44
Withdrawals in advance 36325990.61 38870669.59
Temporary receipts payable 12531383.72 7988985.82
Amount of equity transfer
7893600.00
payable
Subscription payment for
50609959.00
restricted stocks
Total 119109874.30 56662357.08
(2). Other payables with significant amounts aged more than 1 year
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
42. Liabilities held for sale
□ Applicable√ N/A
43. Non-current liabilities due within 1 year
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
151 / 2152023 Semiannual Report
Long-term borrowings due 147500008.00
146783523.75
within 1 year
Lease liabilities due within 1 30342348.86
31430388.88
year
Long-term payables due within
1 year
Interest payable 146727.76 189460.51
Total 178360640.39 178031817.37
Other information:
None
44. Other current liabilities
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Rebates payable 6375935.11 25168744.15
Taxes to be written off 3423594.29 3013395.69
Refund 201468.53
Total 9799529.40 28383608.37
Changes in short-term bonds payable:
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
45. Long-term borrowings
(1). Categories of long-term borrowings
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Guaranteed loans and loans
139982252.95147905776.70
against collateral
Guaranteed loans 281980000.00 255299986.00
Credit loans 109000000.00
Interest payable 524648.75 514779.75
Total 531486901.70 403720542.45
Description for categories of long-term borrowings:
None
Other description including interest rate range:
□ Applicable√ N/A
46. Bonds payable
(1). Bonds payable
□ Applicable√ N/A
152 / 2152023 Semiannual Report
(2). Changes in bonds payable (excluding other financial instruments such as preference shares
perpetual bonds and others classified as financial liabilities)
□ Applicable√ N/A
(3). Description of converting terms and period of convertible corporate bonds
□ Applicable√ N/A
(4). Description of other financial instruments classified as financial liabilities
Basic information of other financial instruments including outstanding preferred shares and perpetual
bonds at the end of the period
□ Applicable√ N/A
Changes in financial instruments including outstanding preferred shares and perpetual bonds at the end
of the period
□ Applicable√ N/A
Description of other financial instruments classified as financial liabilities
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
47. Lease liabilities
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Unpaid lease payments 28324784.45 37874912.40
Less: Financing charges not
1063951.963555628.17
recognized
Total 27260832.49 34319284.23
Other information:
None
48. Long-term payables
Presented by item
□ Applicable√ N/A
Long-term payables
□ Applicable√ N/A
Special payables
□ Applicable√ N/A
49. Long-term employee benefits payable
□ Applicable√ N/A
50. Provisions
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Opening balance Closing balance Reason
153 / 2152023 Semiannual ReportProduct quality Expenses for “three
49871884.3651870435.99warranty guarantees” services
Amounts payable for
6591998.511578759.24
goods returned
Pending litigation 14356.13
Total 56463882.87 53463551.36 /
Other description including significant assumptions and estimates relative to material provisions:
None
51. Deferred income
Description of deferred income
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Opening
Item Increase Decrease Closing balance Reason
balance
Government The relevant
grants related to 5905986.57 1078195.80 4827790.77 asset is within its
assets service life
Used for
compensation of
Government relevant costs
grants related to 2745435.69 1500000.00 3960980.23 284455.46 expenses or
income losses in
subsequent
periods
Total 8651422.26 1500000.00 5039176.03 5112246.23 /
Other information:
√ Applicable□ N/A
Breakdown of government grants
Increased
Amount
government
Opening recognized in Closing Related to
Item grants for
balance current profit balance assets/income
the current
or loss
period
8K Ultra High
Definition Laser
Related to
Display Technology 2905986.56 532741.26 2373245.30
assets
Engineering Research
Center
Industry support Related to
3000000.01545454.542454545.47
funds assets
R&D of key 1000000.00 1000000.00 Related to
154 / 2152023 Semiannual Report
technologies for ultra income
high-definition micro
laser projector optical
engine based on light-
emitting ceramic
devices
Trichromatic Laser
Display Complete
Related to
Equipment 2412101.15 500000.00 2912101.15
income
Production
Demonstration Line
Research of
trichromatic laser Related to
333334.5448879.08284455.46
light sources and income
LCoS optical engine
Sub-total 8651422.26 1500000.00 5039176.03 5112246.23
Government grants included in the current profit or loss are disclosed in VII.84 of Section X in details.
52. Other non-current liabilities
□ Applicable√ N/A
53. Share capital
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Changes (+ -)
Issuance Capitalization
Opening balance Bonus Sub- Closing balance
of new of capital Others
shares total
shares reserve
Total
457107538.00457107538.00
shares
Other information:
None
54. Other equity instruments
(1) Basic information of other financial instruments including outstanding preferred shares and
perpetual bonds at the end of the period
□ Applicable√ N/A
(2) Changes in financial instruments including outstanding preferred shares and perpetual bonds
at the end of the period
□ Applicable√ N/A
Changes of other equity instruments in the current period reasons for such change and basis for related
accounting treatments:
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
155 / 2152023 Semiannual Report
55. Capital reserve
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Opening balance Increase Decrease Closing balance
Capital premium (Share
1363879803.31271501.891364151305.20
premium)
Other capital reserve 166872312.73 20442747.19 187315059.92
Total 1530752116.04 20714249.08 1551466365.12
Other description including changes in the current period and reasons for changes:
(1) The total expense of equity-settled share-based payments amounted to RMB 24996374.80 in which
RMB 21649969.88 was recognized in the capital reserve (other capital reserve) and RMB 3346404.92
was charged to the amount attributable to minority interests.
(2) With respect to the temporary difference by which the fair value at the end of period of restricted
shares granted by the Company in the current period is greater than the fair value at the grant date the
Company recognized the decrease in deferred tax assets by RMB 1349420.12 the decrease in the
capital reserve (other capital reserve) by RMB 1207222.69 and the decrease in the minority interests
by RMB 142197.43.
(3) The Company acquired minority interests by paying the consideration of RMB 19734000.00 for the
shares and acquired shares in the fair value of the identifiable net assets in the amount of RMB
20005501.89 while the difference RMB 271501.89 was recognized as capital premium (share
premium).
56. Treasury shares
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Opening balance Increase Decrease Closing balance
Treasury shares 19377297.59 19377297.59
Total 19377297.59 19377297.59
Other description including changes in the current period and reasons for changes:
None
156 / 2152023 Semiannual Report
57. Other comprehensive income
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Amount for the current period
Less: Amount
Less: Amount
previously
previously
included in
included in Attributable to
Amount other Less: Attributable to
Opening other owners of the Closing
Item incurred for comprehensive Income minority
balance comprehensive parent balance
current period income and tax shareholders after
income and company after
before tax transferred to expenses tax
transferred to tax
retained
profit or loss
earnings for
for the period
the period
I. Other
comprehensive
income that cannot be
-4900000.00-4900000.00
reclassified
subsequently to profit
or loss
Including: Changes
from remeasurement
of defined benefit
plans
Other
comprehensive
157 / 2152023 Semiannual Report
income that cannot be
reclassified to profit
or loss under the
equity method
Changes in fair
value of investments
-4900000.00-4900000.00
in other equity
instruments
Changes in fair
value of enterprises’
own credit risks
II. Other
comprehensive
income that will be 10636897.41 5158805.71 6714283.50 -1555477.79 17351180.91
reclassified to profit
or loss
Including: Other
comprehensive
income that will be
-13180600.06-4176328.87-4176328.87-17356928.93
reclassified to profit
or loss under the
equity method
Changes in fair
value of other debt
investments
Amount of
financial assets
158 / 2152023 Semiannual Report
reclassified to other
comprehensive
income
Provision for credit
impairment of other
debt investments
Reserve for cash
flow hedges
Exchange
differences on
translation of
23817497.479335134.5810890612.37-1555477.7934708109.84
financial statements
denominated in
foreign currencies
Total other
comprehensive 5736897.41 5158805.71 6714283.50 -1555477.79 12451180.91
income
Other description including adjustments on transferring effective portion of cash flow hedges to amount upon initial recognition of the hedged item:
0
159 / 2152023 Semiannual Report
58. Special reserve
□ Applicable√ N/A
59. Surplus reserve
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Opening balance Increase Decrease Closing balance
Statutory surplus
75519782.0675519782.06
reserve
Total 75519782.06 75519782.06
Surplus reserve description including changes in the current period and reasons for changes:
None
60. Retained profits
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Current period Prior year
Retained profits at the end of prior period before
597924451.67545277188.08
adjustment
Total adjusted undistributed profits at the beginning of the
period (Add: +; Less: -)
Retained profits at the beginning of the period after
597924451.67545277188.08
adjustment
Add: Net profit attributable to owners of the parent
74914640.95119440773.77
company for the period
Less: Appropriation to statutory surplus reserve 19253913.75
Appropriation to discretionary surplus reserve
Appropriation to general risk reserve
Declaration of dividends on ordinary shares 24635207.05 47539596.43
Conversion of ordinary shares’ dividends into share
capital
Retained profits at the end of the period 648203885.57 597924451.67
Details of adjustments to undistributed profits at the beginning of the period:
1. As a result of the retrospective adjustment of the Accounting Standards for Business Enterprises and
related new regulations undistributed profits at the beginning of the period were affected by RMB 0.00.
2. Retained profits at the beginning of the period were affected by RMB 0.00 due to changes in
accounting policies.
3. Retained profits at the beginning of the period were affected by RMB 0.00 due to the correction of
significant accounting errors.
4. Retained profits at the beginning of the period were affected by RMB 0.00 due to changes in the
scope of consolidation resulting from business combination involving entities under common control.
5. Retained profits at the beginning of the period were affected by RMB 0.00 in total due to other
adjustments.
160 / 2152023 Semiannual Report
61. Operating income and operating costs
(1). Description of operating income and operating costs
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Amount for the current period Amount for the prior period
Item
Income Cost Income Cost
Main business 1073249037.75 668659467.49 1269322202.11 884560607.88
Other business
Total 1073249037.75 668659467.49 1269322202.11 884560607.88
(2). Description of incomes from contracts
□ Applicable√ N/A
(3). Description of performance obligations
□ Applicable√ N/A
(4). Description of allocation to remaining performance obligations
□ Applicable√ N/A
Other information:
Breakdown of revenue from contracts with customers by category:
Item Amount for the current period Amount for the prior period
Main business areas:
Domestic 704902664.35 982431749.79
Overseas 188845868.39 151675564.56
Sub-total 893748532.74 1134107314.35
By product:
Laser optical engine 269264171.31 227366190.32
Complete laser projector 529660750.51 797685682.96
Others 94823610.92 109055441.07
Sub-total 893748532.74 1134107314.35
Revenue recognition time:
Goods (transferred at a time
893741128.351133767224.50
point)
Services (provided during a
7404.39340089.85
specific period of time)
Sub-total 893748532.74 1134107314.35
62. Taxes and surcharges
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Amount for the current period Amount for the prior period
City maintenance and 1849757.98 1854709.81
161 / 2152023 Semiannual Report
construction tax
Stamp duty 718782.33 1328656.61
Education surcharges 810475.02 837797.56
Local education surcharges 540316.68 596844.97
Others 86419.52 18392.15
Total 4005751.53 4636401.10
Other information:
None
63. Selling expenses
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Amount for the current Amount for the prior
Item
period period
Marketing fees 67103262.08 56105203.98
Employee benefits 44813421.97 38321847.96
After-sale repair expenses 8783249.44 7794363.57
Travel expenses 3323826.10 1140208.55
Advertising and business promotion
2606865.492152634.28
expenses
Business entertainment expenses 891056.45 874145.73
Other expenses 15877978.49 13913957.29
Total 143399660.02 120302361.36
Other information:
None
64. Administrative expenses
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Amount for the current Amount for the prior
period period
Employee benefits 34743913.52 36480928.08
Share-based payment expenses 25008586.26 44301483.42
Service fees 13261395.13 11634987.32
Depreciation and amortization expenses 6559184.36 7367554.34
Rent expense 2699984.57 2149163.28
Other expenses 4423159.98 4081725.92
Total 86696223.82 106015842.36
Other information:
None
65. R&D expenses
√ Applicable□ N/A
Unit: Yuan Currency: RMB
162 / 2152023 Semiannual Report
Item Amount for the current Amount for the prior
period period
Employee benefits 86643213.03 76416118.90
Material consumption expenses 11968242.66 13749893.95
Rent expense 2027319.05 2724452.14
Service fees 6014448.00 4297638.31
Depreciation and amortization expenses 7408217.43 4958080.99
Testing expenses 2233677.17 4511335.54
Patent fees 1909173.76 836908.48
Other expenses 8201851.02 7465358.06
Total 126406142.12 114959786.37
Other information:
None
66. Financial expenses
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Amount for the current Amount for the prior
period period
Interest expenses 7061642.05 12510421.43
Less: Interest income -15604073.30 -6740942.87
Exchange profit or loss -9807901.42 -10026339.12
Bank service charges 1328926.10 902979.64
Total -17021406.56 -3353880.91
Other information:
None
67. Other income
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Amount for the current Amount for the prior
period period
Government grants related to assets 1078195.80 940282.23
Government grants related to income 21467825.51 18812831.21
Refund of transaction fees for withholding
442061.07364144.36
individual income taxes
Additional deduction of input VAT 620900.93 1448552.63
Total 23608983.31 21565810.43
Other information:
Government grants recognized in other income in the current period are disclosed in VII.84 of Section X
in details.
68. Investment income
√ Applicable□ N/A
Unit: Yuan Currency: RMB
163 / 2152023 Semiannual Report
Amount for the current
Item Amount for the prior period
period
Long-term equity investment accounted for
-8071814.75-5951760.87
using the equity method
Investment income from disposal of long-
-4611079.66
term equity investments
Investment income from held-for-trading
200000.00
financial assets during the holding period
Investment income from disposal of held-
5265708.555795366.82
for-trading financial assets
Total -2806106.20 -4567473.71
Other information:
None
69. Income from net exposure hedges
□ Applicable√ N/A
70. Gains from changes in fair values
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Source of gains from changes in fair
Amount for the current period Amount for the prior period
values
Held-for-trading financial assets -1634000.00
Total -1634000.00
Other information:
None
71. Losses of credit impairment
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Amount for the current
Item Amount for the prior period
period
Bad debt losses -3513083.07 1393164.79
Total -3513083.07 1393164.79
Other information:
None
72. Impairment losses of assets
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Amount for the current Amount for the prior
Item
period period
I. Bad debt losses -90452.65 -38217.98
II. Decline in value of inventories -26383931.20 -19378228.52
III. Impairment losses of long-term equity
164 / 2152023 Semiannual Report
investments
IV. Impairment losses of investment properties
V. Impairment losses of fixed assets -1833685.55 -405917.49
VI. Losses of contract performance cost -705862.34
Total -29013931.74 -19822363.99
Other information:
None
73. Gains on disposal of assets
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Amount for the current period Amount for the prior period
Gains from disposal of fixed
18395.62106.88
assets
Gains from disposal of right-of-
-3133.4717106.28
use assets
Total 15262.15 17213.16
Other information:
□ Applicable√ N/A
74. Non-operating income
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Amount included in
Amount for the Amount for the
Item non-recurring profit or
current period prior period
loss for the period
Total gains from disposal of non-
11482.307964.6011482.30
current assets
Including: Gains from disposal
11482.307964.6011482.30
of fixed assets
Government grants 9000000.00 9000000.00
Amounts not required for
233306.16233306.16
payment
Others 179559.37 159923.71 179559.37
Total 9424347.83 167888.31 9424347.83
Other information:
□ Applicable√ N/A
75. Non-operating expenses
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Amount included in
Amount for the Amount for the prior
Item non-recurring profit or
current period period
loss for the period
165 / 2152023 Semiannual Report
Total losses from disposal of
242877.32353535.44242877.32
non-current assets
Including: Losses from
242877.32353535.44242877.32
disposal of fixed assets
External donations 1011354.98
Penalties and overdue fines 27463.52 141821.94 27463.52
Others 370921.08 5197.11 370921.08
Total 641261.92 1511909.47 641261.92
Other information:
None
76. Income tax expense
(1) Statement of income tax expense
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Amount for the current period Amount for the prior period
Income tax expense in the current
8337698.3715688777.00
period
Deferred income tax expenses 10312245.27 3580694.17
Total 18649943.64 19269471.17
(2) Reconciliation of income tax expenses to the accounting profit
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Amount for the current
period
Total profit 58177409.69
Income tax expense calculated based on statutory/applicable tax rate 8726611.46
Effect of different tax rates of subsidiaries operating in other jurisdictions -8719094.86
Effect of income tax for the period before adjustment -536497.80
Effect of non-taxable income -42425.30
Effect of non-deductible cost expense and loss 237744.26
Effect of utilizing deductible loss not recognized for deferred tax assets for
-351326.89
prior period
Effect of deductible temporary difference or deductible loss not recognized
25128174.15
for deferred tax assets for the current period
Change in the balance of opening deferred tax assets caused by tax rate
0.00
adjustment
Effect of additional deduction of R&D expenses -10821251.40
Others 5028010.02
Income tax expenses 18649943.64
Other information:
□ Applicable√ N/A
166 / 2152023 Semiannual Report
77. Other comprehensive income
√ Applicable□ N/A
Refer to VII. 57 of Section X for details.
78. Items in cash flow statement
(1). Other cash receipts relating to operating activities
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Amount for the current period Amount for the prior period
Interest income 15203804.27 6586011.83
Government grants 31156389.47 14967754.76
Recovery of security deposits 38485289.61 9021162.77
Non-operating income 167768.72 78226.30
Other transaction accounts 5824075.57 3742646.71
Total 90837327.64 34395802.37
Description of other cash receipts relating to operating activities:
None
(2). Other cash payments relating to operating activities
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Amount for the current period Amount for the prior period
Administrative expenses selling
expenses and R&D expenses paid in 133812521.03 135601238.70
cash
Non-operating expenses 369426.97 138934.57
Payment of security deposits 14513684.21 67068694.27
Service charges 777510.79 757068.27
Other transaction accounts 3961686.89 2730798.00
Total 153434829.89 206296733.81
Description of other cash payments relating to operating activities:
None
(3). Other cash receipts relating to investing activities
□ Applicable√ N/A
(4). Other cash payments relating to operating activities
□ Applicable√ N/A
(5). Other cash receipts relating to financing activities
□ Applicable√ N/A
(6). Other cash payments relating to financing activities
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Amount for the current period Amount for the prior period
Dividend payments 23814.21
167 / 2152023 Semiannual Report
Actual lease payment 17383232.80 14493029.54
Share repurchase payment 3211260.13
Total 17407047.01 17704289.67
Description of other cash payments relating to financing activities:
None
79. Supplementary information to the cash flow statement
(1) Supplementary information to the cash flow statement
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Amount for the Amount for the prior
Supplemental information
current period period
1. Reconciliation of net profit to cash flow from
operating activities:
Net profit 39527466.05 18539942.30
Add: Provision for impairment of assets 29013931.74 19822363.99
Impairment losses of credit 3513083.07 -1393164.79
Depreciation of fixed assets depletion of oil and gas
59926542.8660956631.02
assets depreciation of productive biological assets
Amortization of right-of-use assets 14899916.76 13511079.53
Amortization of intangible assets 2121924.37 1599345.03
Amortization of long-term prepaid expenses 1956826.99 3680782.65
Losses on disposal of fixed assets intangible assetsand other long-term assets (gains are indicated by “- -15262.15 -17213.16”)
Losses on disposal of fixed assets (gains are
231395.02345570.84
indicated by “-”)
Losses on changes in fair values (gains are indicated
1634000.00
by “-”)
Financial expenses (income is indicated by “-”) 3338040.63 2484082.32
Investment losses (income is indicated by “-”) 2806106.20 4567473.71
Decrease in deferred tax assets (increase is indicated
10312245.283580734.09
by “-”)
Increase in deferred tax liabilities (decrease is
indicated by “-”)
Decrease in inventories (increase is indicated by “-”) 104726621.15 -33033292.19
Decrease in receivables from operating activities
18233904.7536305146.46
(increase is indicated by “-”)
Increase in payables from operating activities
-200944159.73-255297259.11
(decrease is indicated by “-”)
Others 25090249.13 44160417.64
Net cash flow from operating activities 114738832.13 -78553359.67
2. Significant investing and financing activities
168 / 2152023 Semiannual Report
that do not involve cash receipts and payments:
Conversion of debt into capital
Convertible corporate bonds due within 1 year
Fixed assets acquired under finance leases
3. Net changes in cash and cash equivalents:
Closing balance of cash 1228232134.57 951480989.53
Less: Opening balance of cash 1254582403.12 891195166.73
Add: Closing balance of cash equivalents
Less: Opening balance of cash equivalents
Net increase in cash and cash equivalents -26350268.55 60285822.80
(2) Net cash paid to acquire subsidiaries for the current period
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Amount
Cash or cash equivalents paid in the period for business combination
11840400.00
occurring in the period
Shenzhen Qianhai Taishi Investment Partnership (LP) 11840400.00
Less: Cash and cash equivalents held by subsidiaries at the acquisition date 9034.84
Shenzhen Qianhai Taishi Investment Partnership (LP) 9034.84
Add: Cash or cash equivalents paid in the prior period for business
combination occurring in the period
Net cash paid for acquiring subsidiaries 11831365.16
Other information:
None
(3) Net cash receipts from disposal of subsidiaries for the current period
□ Applicable√ N/A
(4) Composition of cash and cash equivalents
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
I. Cash 1228232134.57 1254582403.12
Including: Cash on hand 3346.05 5479.42
Bank deposits that can be paid at any time 1217428374.02 1241921379.19
Other monetary funds that can be paid at any
10800414.5012655544.51
time
Deposits in the central bank that can be used for
payments
Deposits made with other banks
Placements with banks
II. Cash equivalents
Including: Investments in debt securities due within
169 / 2152023 Semiannual Report
three months
III. Closing balance of cash and cash equivalents 1228232134.57 1254582403.12
Including: Restricted cash and cash equivalents of the
parent company or subsidiaries within the Group
Other information:
□ Applicable√ N/A
80. Notes to items in the statement of changes in owners’ equity
Describe matters such as the names and the adjusted amounts of the items included in “others” in respect
of adjustments to the closing balances of the prior year:
□ Applicable√ N/A
81. Assets with limited ownership or use right
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance of book value Reason
Bank deposits 40000000.00 Term deposits
Accounts not handling for a
Bank deposits 5.49
long time
Other monetary funds 10961787.42 Security deposits
Intangible assets 275524999.80 Mortgage collateral
Total 326486792.71 /
Other information:
None
82. Foreign currency monetary items
(1). Foreign currency monetary items
√ Applicable□ N/A
Unit: Yuan
Closing balance of Closing balance of RMB
Item Exchange rate
foreign currency equivalent
Monetary funds 297486092.24
Including: USD 41026579.84 7.2258 296449860.61
GBP 15782.11 9.1432 144298.99
HKD 297205.06 0.9220 274017.12
Euro 74738.72 7.8771 588724.37
Others 29191.15
Accounts receivable 83635231.71
Including: USD 11394715.89 7.2258 82335938.08
Euro 161644.37 7.8771 1273288.87
Others 26004.76
Accounts payable 44736752.22
Including: USD 6182542.60 7.2258 44673816.31
JPY 1256356.25 0.0501 62935.91
170 / 2152023 Semiannual Report
Other information:
None
(2). Description of overseas operating entities including significant overseas operating entities of
which the major operation place functional currency and choosing basis as well as the reason
for change of functional currency should be disclosed
√ Applicable□ N/A
Major overseas Functional Basis of
Item
operation place currency choice
Common
Appotronics Hong Kong Limited Hong Kong USD
currency
Local
Appotronics USA Inc. USA USD
currency
JoveAI Limited Common
Cayman Islands USD
currency
Local
JoveAI Innovation Inc. USA USD
currency
Local
Formovie Technology Inc. USA USD
currency
Common
Formovie Limited Hong Kong USD
currency
Local
JoveAI Asia Company Limited Vietnam VND
currency
Local
Wemax LLC USA USD
currency
Hongkong Orange Juice Energy Technology Common
Hong Kong USD
Co. Limited currency
Local
Wemax Inc. USA USD
currency
Common
Appotronics International Limited Hong Kong USD
currency
171 / 2152023 Semiannual Report
83. Hedge
□ Applicable√ N/A
84. Government grants
(1). Basic information of government grants
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Amount recognized in
Category Amount Item presented
current profit or loss
Government grants related to assets Other income 1078195.80
Government grants related to income
and used for compensation of the
1500000.00 Other income 3960980.23
Company’s relevant costs or losses in
subsequent periods
Government grants related to income
Other income
and used for compensation of the
27968381.50 non-operating 27941857.82
Company’s relevant costs or losses that
income
have been incurred
Financial
Interest subsidies 6084300.00 6084300.00
expenses
(2). Refund of government grants
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Amount Reason
Trichromatic Display Complete
Equipment Production 992951.47 Refund of remaining funds
Demonstration Line
Sub-total 992951.47
Other information
（1） Government grants related to assets
Amortization
Opening Closing of items
Item deferred Increase Amortization deferred presented in
income income the current
period
8K Ultra High
Definition Laser
Display Technology 2905986.56 532741.26 2373245.30 Other income
Engineering
Research Center
172 / 2152023 Semiannual Report
Industry support
3000000.01 545454.54 2454545.47 Other income
funds
Sub-total 5905986.57 1078195.80 4827790.77
（2） Government grants related to income and used for compensation of the Company’s relevant
costs or losses in subsequent periods
Amortization
Opening Closing of items
Item deferred Increase Amortization deferred presented in
income income the current
period
R&D of key
technologies
for ultra high-
definition
micro laser
projector 1000000.00 1000000.00 Other income
optical engine
based on light-
emitting
ceramic
devices
Trichromatic
Laser Display
Complete
Equipment 2412101.15 500000.00 2912101.15 Other income
Production
Demonstration
Line
Research of
trichromatic
laser light
333334.54 48879.08 284455.46 Other income
sources and
LCoS optical
engine
Sub-total 2745435.69 1500000.00 3960980.23 284455.46
（3） Government grants related to income and used for compensation of the Company’s relevant
costs or losses that have been incurred
Item
Item Amount Description
presented
Refunds of value-added taxes 4431505.74 Other income
Rewards for Employment
40200.00 Other income
Stability and Subsidy for New
173 / 2152023 Semiannual Report
Employees
Refund of service charges for
442061.07 Other income
“three withholdings”
Shenzhen one-off subsidy for
job expansion in 2022 (10th 3000.00 Other income
batch)
Provisions of Guangdong for
Maternity Grants from
Maternity Insurance of
Shenzhen Social Security 12459.49 Other income
Employees Shenzhen Social
Bureau
Insurance Fund Administration
2022 Subsidy for Housing
2022 Talent Housing Rent
Rents for Talents of 370000.00 Other income
Agreement of Nanshan District
Enterprises
Announcement of Shenzhen
Administration for Market
Regulation on 2022 Candidate
2022 Shenzhen Special Funds Projects for the Special Funds for
1000000.00 Other income
for Intellectual Property Rights Intellectual Property Rights (For
Protection) Shenzhen
Administration for Market
Regulation
Disclosure of Shenzhen Science
and Technology Innovation
Key enterprise research Commission on the Candidate
10000000.00 Other income
institute for laser display Subsidy Projects for Key
Enterprise Research Institutes for
2023
Notice on Starting the Application
(Third Batch) of Projects for Sub-
Subsidy for copyright special Funds under the Special
18900.00 Other income
registration Fund for Independent Innovation
Industry Development in Nanshan
District (2022)
2022 Reward for Economic
50000.00 Other income
Contribution
Notice of Shenzhen
Administration for Market
Subsidy for trademark Administration on Handling the
registration under 2022 Subsidy Collection Procedures for
14000.00 Other income
Shenzhen intellectual property Verified Projects on Shenzhen
special fund Intellectual Property Special Fund
in 2022 Shenzhen Administration
for Market Regulation
2022 second and third batch of 50000.00 Other income Announcement of Candidate
174 / 2152023 Semiannual Report
subsidy for daily management Entities Qualified for Subsidy for
expenditures of post-doctor Daily Management Expenditures
stations in Shenzhen (Second Batch in
2022) - Announcement to Society
website of Shenzhen Human
Resources and Social Security
Bureau
Notice on the Reward Scheme of
Special Funds for Standard Field
2022 Shenzhen Special Fund
30000.00 Other income of Shenzhen in 2022 Shenzhen
in the Standard Field
Administration for Market
Regulation
Subsidy for Social Security
and Post for Employment of 62731.52 Other income
the Poor Population
2023 Announcement for Candidate
Special funds for the Projects for the Special Fund for
development of cultural the Development of the Cultural
1500000.00 Other income
industry (original research and Industry Shenzhen City Bureau of
development projects) Culture Radio Television
Tourism and Sports
Notice of Shenzhen Bureau of
Reward for Production Industry and Information
Expansion and Efficiency Technology on the Disclosure for
Improvement of Industrial 310000.00 Other income the First Half of 2022 Proposed
Enterprises for the First Half Subsidy Scheme for Enterprises’
of 2022 Production Expansion and
Efficiency Improvement
Subsidy for Employment of
30000.00 Other income
the Poor Population
Non-
Payment of industry support
9000000.00 operating Investment agreement
funds
income
Subsidy under the 2023
Notice on Filing for Projects under
Nanshan District Scientific
200000.00 Other income Joint Support Plans for
Reward and Support Plan
Technology Breakthrough in 2023
(First Batch)
Announcement of Chongqing
Liangjiang New Area Operation
Rewards for Enterprises
Bureau on Candidate Enterprises
Qualified as Enterprises above 250000.00 Other income
Qualified for Rewards under
Designated Size
Policies for Stabilizing the Macro
Economy (Second Batch)
Special Funds for Service 127000.00 Other income Letter of Chongqing Commission
175 / 2152023 Semiannual Report
Trading of Commerce on Communication
about Review of International
Service Trading Projects under the
Special Development Fund
Sub-total 27941857.82
（4） Interest subsidies
Opening Closing Amortization of items
Item deferred Increase Amortization deferred presented in the
income income current period
Interest
6084300.00 6084300.00 Financial expenses
subsidies
Sub-total 6084300.00 6084300.00
85. Others
□ Applicable√ N/A
VIII. Changes in scope of consolidation
1. Business combination not involving enterprises under common control
√ Applicable□ N/A
(1). Business combinations not involving enterprises under common control in the current
period
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Net
Incomes
profit of
Ratio of the
the
of acquiree
Time Basis for acquiree
acquir Method from the
point of Cost of determini from the
Name of ed of Acquisiti acquisiti
obtaini equity ng the acquisiti
acquiree equity obtaining on date on date
ng acquisition acquisitio on date
interes equity to the
equity n date to the
ts end of
end of
(%) the
the
period
period
Shenzhe
n
Qianhai Share
May
Taishi 19734000. Acquisiti May 15 Transfer
15100.000.0075.57
Investme 00 on 2023 Agreeme
2023
nt nt
Partnersh
ip (LP)
176 / 2152023 Semiannual Report
Other information:
None
(2). Combination costs and goodwill
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Combination costs Shenzhen Qianhai Taishi Investment Partnership
(LP)
-- Cash 19734000.00
-- Fair value of non-cash assets
-- Fair value of debts issued or undertaken
-- Fair value of equity securities issued
-- Fair value of contingent consideration
-- Fair value at the acquisition date of the equity
interests held prior to the acquisition date
--Others
Total combination costs 19734000.00
Less: Acquired shares in the fair value of the
20005501.89
identifiable net assets
Differences between amounts of
goodwill/combination costs and the acquired shares -271501.89
in the fair value of the identifiable net assets
Description of the method for determining the fair value of combination costs and the contingent
considerations and changes thereof:
N/A
Main reasons of large-amount goodwill:
N/A
Other information:
During the reporting period the Company acquired Shenzhen Qianhai Taishi Investment Partnership
(LP) through business combination not involving enterprises under common control. In essence this
transaction is acquiring the minority interests held by the subsidiary CINEAPPO Laser Cinema
Technology (Beijing) Co. Ltd. The difference above is recognized in capital reserve - share premium.
(3). Identifiable assets and liabilities of the acquiree at the acquisition date
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Shenzhen Qianhai Taishi Investment Partnership (LP)
Fair value at the acquisition date Carrying amount at the acquisition
Assets: 20005501.89 date 4759034.84
Monetary funds 9034.84 9034.84
Long-term equity
19996467.054750000.00
investment
Net assets 20005501.89 4759034.84
177 / 2152023 Semiannual Report
Acquired net assets 20005501.89 4759034.84
Method for determining the fair value of identifiable assets and liabilities:
Long-term equity investments are determined according to the net assets and shareholding ratio of the
investee and other assets and liabilities are determined according to the book values.Contingent liabilities of the acquiree that are taken in the business combination:
None
Other information:
None
(4). Gains or losses from the equity interests held prior to the acquisition date that are
remeasured at fair value
Whether there are transactions for the purpose of implementing business combination via multiple
transactions and obtaining the control during the reporting period
□ Applicable√ N/A
(5). Description about the failure in reasonably determining the combination considerations or
the fair values of the identifiable assets and liabilities of the acquiree at the acquisition date or at
the end of the combination period
□ Applicable√ N/A
(6). Other information
□ Applicable√ N/A
2. Business combination involving entities under common control
□ Applicable√ N/A
3. Counter purchase
□ Applicable√ N/A
4. Disposal of subsidiaries
Single disposal of investments in subsidiaries i.e. the loss of control
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
5. Changes in scope of consolidation for other reasons
Description of changes in the scope of consolidation for other reasons (e.g. new subsidiary
establishment subsidiary liquidation etc.) and the relevant information:
□ Applicable√ N/A
6. Others
□ Applicable√ N/A
178 / 2152023 Semiannual Report
IX. Equity in other entities
1. Equity in subsidiaries
(1). Composition of enterprise group
√ Applicable□ N/A
Principal Shareholding
Registration
Subsidiary name operation Business nature ratio (%) Acquisition method
place
place Direct Indirect
Business combination
Shenzhen Appotronics Laser Display
Shenzhen Shenzhen R&D and sales of laser display products 100.00 involving enterprises under
Technology Co. Ltd.common control
Technical research and development of
Appotronics Technology (Changzhou) Co.Changzhou Changzhou projection equipment screen and 100.00 Establishment
Ltd.electronic computer
Shenzhen Appotronics Software Technology Technology development and sales of
Shenzhen Shenzhen 100.00 Establishment
Co. Ltd. computer software and hardware
Technical development sales and
Shenzhen Appotronics Display Device Co.Shenzhen Shenzhen technical services for display products; 100.00 Establishment
Ltd.import and export business
Wemax LLC USA USA Sales of laser equipment 100.00 Establishment
Shenzhen Appotronics Xiaoming Development consultation and transfer
Shenzhen Shenzhen 100.00 Establishment
Technology Co. Ltd. of laser display technology
Shenzhen Appotronics Home Line Software development related to
Shenzhen Shenzhen 100.00 Establishment
Technology Co. Ltd. semiconductor optoelectronic products
Shenzhen Appotronics Laser Technology Software development for
Shenzhen Shenzhen 100.00 Establishment
Co. Ltd. semiconductor optoelectronic devices
Business combination not
Tianjin Bonian Film Partnership (LP) Tianjin Tianjin No specific business conducted 99.00 1.00 involving enterprises under
common control
Beijing Orient Appotronics Technology Co. Technology promotion; computer
Beijing Beijing 59.00 Establishment
Ltd. systems application software services
Qingda Appotronics (Xiamen) Technology Information technology consulting
Shenzhen Xiamen 51.00 Establishment
Co. Ltd. services
Formovie (Chongqing) Innovative Chongqing Chongqing Technology and software development 39.19 Establishment
179 / 2152023 Semiannual Report
Technology Co. Ltd.Fengmi (Beijing) Technology Co. Ltd. Beijing Beijing Technology and software development 39.19 Establishment
Chongqing Guangbo Ecommerce Co. Ltd. Chongqing Chongqing No specific business conducted 39.19 Establishment
Chongqing Ewei Ecommerce Co. Ltd. Chongqing Chongqing No specific business conducted 39.19 Establishment
Shenzhen Orange Juice Energy Technology
Shenzhen Shenzhen Technology and software development 33.31 Establishment
Co. Ltd.Hongkong Orange Juice Energy Technology Hong
Hong Kong Engaged in import and export business 33.31 Establishment
Co. Limited Kong
Wemax Inc. USA USA Engaged in import and export business 33.31 Establishment
Business combination not
Shenzhen Weiwoqi Trading Co. Ltd. Chongqing Shenzhen No specific business conducted 33.31 involving enterprises under
common control
Yaoyouguang (Chongqing) Technology Co.Chongqing Chongqing No specific business conducted 39.19 Establishment
Ltd.Hong
Formovie Limited Hong Kong No specific business conducted 39.19 Establishment
Kong
Formovie Technology Inc. USA USA No specific business conducted 39.19 Establishment
Research and development production Business combination
CINEAPPO Laser Cinema Technology
Beijing Beijing technical services sales and lease of 24.84 42.96 involving enterprises under
(Beijing) Co. Ltd.
laser cinema projection equipment common control
Production research and development
of semiconductor optoelectronic
Hong
Appotronics Hong Kong Limited Hong Kong products sales and consulting 100.00 Establishment
Kong
investment and video content value-
added services
Business combination
R&D manufacture and sales of
Appotronics USA Inc. USA USA 100.00 involving enterprises under
semiconductor optoelectronic products
common control
Cayman Cayman
JoveAI Limited No specific business conducted 64.29 Establishment
Islands Islands
JoveAI Innovation Inc. USA USA R&D of laser display software system 64.29 Establishment
Technical research and development of
JoveAI Asia Company Limited Vietnam Vietnam projection equipment screen and 64.29 Establishment
electronic computer
Appotronics International Limited Hong Hong Kong No specific business conducted 100.00 Establishment
180 / 2152023 Semiannual Report
Kong
Appotronics Intelligent Manufacturing
Shenzhen Shenzhen No specific business conducted 100.00 Establishment
(Shenzhen) Co. Ltd.Business combination not
Shenzhen Qianhai Taishi Investment
Shenzhen Shenzhen No specific business conducted 70.00 30.00 involving enterprises under
Partnership (LP)
common control
Description of the difference between the proportion of shareholding and the proportion of voting rights in a subsidiary:
None
Basis for holding half of the voting rights or below but still controlling the investee and holding over half voting rights but having no control over the investee:
Fengmi (Beijing) Technology Co. Ltd. Formovie Technology Inc. Formovie Limited Chongqing Ewei Ecommerce Co. Ltd. Chongqing Guangbo Ecommerce
Co. Ltd. and Yaoyouguang (Chongqing) Technology Co. Ltd. are wholly-owned subsidiaries of Formovie (Chongqing) Innovative Technology Co. Ltd.;
Hongkong Orange Juice Energy Technology Co. Limited Wemax Inc. and Weiwoqi Trading Co. Ltd. are wholly-owned subsidiaries of Shenzhen Orange Juice
Energy Technology Co. Ltd.; Shenzhen Orange Juice Energy Technology Co. Ltd. is a controlled subsidiary of Formovie (Chongqing) Innovative Technology Co.Ltd.The Company and Shenzhen Fengye Investment Consulting Limited Partnership (Limited Partnership) a party acting in concert with the Company hold a total of
53.6250% voting rights in Formovie (Chongqing) Innovative Technology Co. Ltd. for which the voting rights are exercised according to the opinions of the
Company. Since the voting rights are sufficient to exercise significant influence on the resolution of the general meeting of Formovie (Chongqing) Innovative
Technology Co. Ltd. the Company becomes the controlling shareholder of Formovie (Chongqing) Innovative Technology Co. Ltd.Basis for controls over significant structured entities included in consolidation scope:
None
Basis to determine the company acts as the agent or the principal:
None
Other information:
None
(2). Significant non-wholly subsidiaries
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Profit or loss
Minority attributable to Dividends declared for
shareholdings ratio minority distribution to minority Closing balance of minority
Subsidiary name
(%) shareholders for shareholders in the interests
the current current period
period
Formovie (Chongqing) Innovative Technology Co. Ltd. 60.81 -49013347.97 -98871403.61
181 / 2152023 Semiannual Report
CINEAPPO Laser Cinema Technology (Beijing) Co. Ltd. 32.20 16806569.59 11040000.00 143846043.06
Description of the difference between the proportion of shareholding by minority shareholders and their proportion of voting rights in a subsidiary:
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
(3). Significant financial information of significant non-wholly subsidiaries
√ Applicable□ N/A
Unit: 0’000 Yuan Currency: RMB
Closing balance Opening balance
Subsidiary Non- Non- Non- Non-
Current Total Current Total Current Total Current Total
name current current current current
assets assets liabilities liabilities assets assets liabilities liabilities
assets liabilities assets liabilities
Formovie
(Chongqing)
Innovative 72686.24 7066.60 79752.84 64264.26 31062.34 95326.60 87088.07 7121.89 94209.96 78428.22 23708.90 102137.12
Technology
Co. Ltd.CINEAPPO
Laser
Cinema
27171.2753960.9781132.2435367.051092.5036459.5523247.5461872.5785120.1136586.715659.8242246.53
Technology
(Beijing)
Co. Ltd.Amount for the current period Amount for the prior period
Total Cash flow from Total Cash flow from
Subsidiary name Operating Operating
Net profit comprehensive operating Net profit comprehensive operating
income income
income activities income activities
Formovie (Chongqing)
Innovative Technology 37600.18 -7921.68 -8124.01 -5369.48 60958.84 -4658.22 -4666.57 -11314.58
Co. Ltd.CINEAPPO Laser 24187.64 4716.46 4716.46 11989.67 16109.94 636.46 636.46 3727.18
182 / 2152023 Semiannual Report
Cinema Technology
(Beijing) Co. Ltd.
Other information:
None
(4). Significant limitations on use of the group assets and payment of the group debts:
□ Applicable√ N/A
(5). Financial or other support provided to structured entities included in consolidated financial statements:
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
2. Changes of shares of owners’ equity in subsidiaries but continue to remain control over transactions of subsidiaries
√ Applicable□ N/A
(1). Description of changes in the share in the owner’s equity of subsidiaries
√ Applicable□ N/A
Shareholding ratio prior
Subsidiary name Date of change Shareholding ratio after change
to change
CINEAPPO Laser Cinema Technology (Beijing) Co.May 15 2023 63.20% 67.80%
Ltd.
(2). Effect of the transaction on the minority interests and the equity attributable to owners of the parent company
√ Applicable□ N/A
Unit: Yuan Currency: RMB
CINEAPPO Laser Cinema Technology (Beijing) Co. Ltd.Acquisition cost/disposal consideration
-- Cash 19734000.00
-- Fair value of non-cash assets
Total acquisition cost/disposal consideration 19734000.00
Less: Share in net assets of subsidiaries calculated based on the
20005501.89
acquired/disposed shareholding ratio
Difference -271501.89
Including: Adjustment to capital reserves -271501.89
183 / 2152023 Semiannual Report
Adjustment to surplus reserves
Adjustment to retained profits
Other information
□ Applicable√ N/A
3. Equity in joint ventures or associates
√ Applicable□ N/A
(1). Significant associates or joint ventures
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Shareholding ratio Accounting treatment
Principal
Registration (%) method for investments
Associates or joint ventures operation Business nature
place in joint ventures or
place Direct Indirect
associates
Asia and British R&D production and sales of digital
Accounting for under
GDC Technology Limited (BVI) North Virgin cinema servers and cinema management 44.00
equity method
America Islands system
Description of the difference between the proportion of shareholding and the proportion of voting rights in joint ventures or associates:
None
Basis that the Company owns less than 20% voting rights but may exercise major impact or that the Company owns 20% or over voting rights but does not have
major impact:
None
(2). Major financial information of significant joint ventures
□ Applicable√ N/A
(3). Major financial information of significant associates
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance/Amount for the current Opening balance/Amount for the prior
period period
GDC Technology Limited (BVI) GDC Technology Limited (BVI)
Current assets 506702638.76 552730874.23
Non-current assets 36851993.25 52568431.68
Total assets 543554632.01 605299305.91
Current liabilities 202634110.90 240966036.37
184 / 2152023 Semiannual Report
Non-current liabilities 170431610.33 172710379.48
Total liabilities 373065721.23 413676415.85
Minority interests
Interests attributable to shareholders of the parent company 170488910.78 191622890.06
Share of net assets calculated by ownership percentage 75015120.74 84314071.63
Adjustment
--Goodwill 77772341.43 77772341.43
--Unrealized profits for insider transactions -517974.63 -797530.34
--Others
Book value of investment of associates 156523146.05 162394917.57
Fair values of equity investments in associates having publicly quoted
prices
Operating income 121512899.31 113618609.56
Net profit -18317067.87 -19899972.82
Net profit of discontinued operations
Other comprehensive income -9491656.52 -2383768.26
Total comprehensive income -27808724.38 -22283741.07
Dividends received from associates in the current year
Other information
None
(4). Summary financial information of insignificant joint ventures and associates
□ Applicable√ N/A
(5). Descriptions of significant limitations over the ability of joint ventures or associates to transfer funds to the Company
□ Applicable√ N/A
(6). Excessive loss of joint venture or associates
□ Applicable√ N/A
(7). Unrecognized commitment relating to investments in joint ventures
□ Applicable√ N/A
(8). Contingent liabilities relating to investments in joint ventures or associates
□ Applicable√ N/A
185 / 2152023 Semiannual Report
4. Significant joint operations
□ Applicable√ N/A
5. Interests in structured entities that are not included in consolidated financial statements
Description of structured entities that are not included in consolidated financial statements:
□ Applicable√ N/A
6. Others
□ Applicable√ N/A
X. Risks associated with financial instruments
√ Applicable□ N/A
The Company’s risk management objectives are to achieve a proper balance between risks and yield minimize the adverse impacts of risks on the Company’s
operation performance and maximize the benefits of the shareholders and other stakeholders. Based on these risk management objectives the Company’s basic risk
management strategy is to identify and analyze its exposure to various risks establish an appropriate minimum tolerance to risk implement risk management and
monitor regularly and effectively these exposures to ensure the risks are monitored at a certain level.The Company is exposed to various risks associated with financial instruments in its daily routines primarily including credit risk liquidity risk and market
risk. The management has reviewed and approved policies to manage these risks summarized as below.(I) Credit risk
Credit risk refers to the risk that a party of the financial instrument will default on its obligations resulting in financial loss to the counter-party.
1. Management of credit risk
(1) Evaluation of credit risk
The Company assesses at each balance sheet date whether the credit risk of the underlying financial instruments has increased significantly since initial
recognition. In determining whether the credit risk has increased significantly since initial recognition the Company considers reasonable and supportable
information that is available without undue additional cost or effort including quantitative and qualitative analysis based on historical data ranking of external
credit risks and forward-looking information. The Company compares the risk of a default occurring on a financial instrument as at the balance sheet date with the
risk of a default occurring on the financial instrument as at the date of initial recognition based on individual financial instrument or a group of financial instruments
with similar credit risk characteristic to determine the change of the risk of a default occurring on a financial instrument over the expected life.The Company considers the credit risk of financial instruments has increased significantly when one or more of the following quantitative and qualitative
criteria are met:
1) The quantitative criterion primarily refers to a certain percentage of increase in the probability of default over the remaining life of the financial instruments
as of the balance sheet date when comparing with that at initial recognition of the financial instruments;
186 / 2152023 Semiannual Report
2) The qualitative criterion includes inter alia adverse material changes in business or financial conditions that are expected to cause a significant decrease in
the debtor’s ability to meet its debt obligations and an actual or expected significant adverse change in the technological market economic or legal environment of
the debtor that results in a significant decrease in the debtor’s ability to meet its debt obligations.
(2) Definition of defaulted or credit-impaired assets
A financial asset is defined as defaulted when the financial instrument meets one or more conditions stated as below and the criterion of defining defaulted
asset is consistent with that of defining credit-impaired asset:
1) significant financial difficulty of the debtor;
2) a breach of contract terms with binding force by the debtor;
3) it is becoming probable that the debtor will enter bankruptcy or other financial reorganization;
4) the creditor of the debtor for economic or contractual reasons relating to the debtor’s financial difficulty has granted to the debtor a concession that the
creditor would not otherwise consider.
2. Measurement of ECL
Key parameters to measure ECL include the probability of default loss given default and the exposure at default. The Company established models of the
probability of default loss given default and the exposure at default on the basis of qualitative analysis on historical statistical data (such as counterparty ranking
guarantee methods collateral category and repayment way) and forward-looking information.
3. Details of reconciliation of the opening balance and the closing balance of provision for impairment of financial instruments can refer to the description in
VII 4 5 6 8 10 and 16 of Section X.
4. Credit risk exposure and credit risk concentration
The Company’s credit risk is primarily from monetary funds and receivables. In order to control the risks associated with aforementioned items the Company
has taken the following measures.
(1) Monetary funds
The credit risk of the Company is limited because the Company has deposited bank deposits and other monetary funds in banks with high credit ratings.
(2) Receivables
The Company regularly evaluates the creditworthiness of its customers with deals on credit and selects to deal with approved and creditworthy customers
subject to the results of the credit assessment with monitoring the balance of its receivables so as to ensure that the Company is not exposed to significant risk of
bad debt.No collateral is required since the Company only deals with third parties that are approved and creditworthy. The concentrated credit risks are managed by
customers. As of June 30 2023 the Company is exposed to certain concentration of credit risks as the Company’s accounts receivable from top 5 customers have
accounted for 61.06% of the total balance of accounts receivable (December 31 2022: 56.87%). The Company held no collateral or other credit ranking measures
for the balance of accounts receivable.The maximum exposure to the Company is the book value of each financial asset in the balance sheet.
187 / 2152023 Semiannual Report
(II) Liquidity risk
Liquidity risk refers to the risk that the Company is in shortage of funds in performing obligations that are settled by delivering cash or another financial asset.Liquidity risk may arise from an inability to sell a financial asset at fair value as soon as possible a counterparty’s inability to pay its contractual liabilities the
accelerated maturity of liabilities or an inability to generate expected cash flows.In order to control this risk the Company balances the continuity and flexibility of financing by using various financing measures such as notes settlement and
bank loans comprehensively and adopting both long-term and short-term financing methods to optimize the financing structure. The Company has received credit
facilities from a number of commercial banks to satisfy its working capital requirements and capital expenditures.Financial liabilities classified by remaining maturity dates
Closing balance
Item Undiscounted contract
Book value Within 1 year 1-3 years Over 3 years
amount
Bank borrowings 808021579.61 876783006.60 318094678.07 452061512.96 106626815.57
Notes payable 80254013.57 80254013.57 80254013.57
Accounts payable 275507953.57 275507953.57 275507953.57
Other payables 119907648.52 119907648.52 119907648.52
Lease liabilities 58691221.37 61690587.34 33365802.29 25515052.58 2809732.47
Sub-total 1342382416.64 1414143209.60 827130096.02 477576565.54 109436548.04
(Continued to above table)
Closing balance of the prior year
Item Undiscounted contract
Book value Within 1 year 1-3 years Over 3 years
amount
Bank borrowings 680999644.99 741583550.58 294187405.68 302318773.93 145077370.97
Notes payable 201299388.57 201299388.57 201299388.57
Accounts payable 276845321.28 276845321.28 276845321.28
Other payables 56662357.08 56662357.08 56662357.08
188 / 2152023 Semiannual Report
Closing balance of the prior year
Item Undiscounted contract
Book value Within 1 year 1-3 years Over 3 years
amount
Lease liabilities 64661633.09 68598988.87 30342348.86 38256640.01
Sub-total 1280468345.01 1344989606.38 859336821.47 340575413.94 145077370.97
(III) Market risk
Market risk refers to the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk
mainly includes interest rate risk and currency risk.
1. Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The
Company is exposed to the risk of fair value interest rate due to financial instruments with a fixed interest rate and to the risk of cash value interest rate due to
financial instruments with a floating interest rate. The Company determines the proportion between the fixed-rate financial instruments and the floating-rate
financial instruments based on market conditions and maintains appropriate portfolios of financial instruments through regular review and monitoring. The cash
flow interest rate risk exposed to the Company relates primarily to the Company’s floating-rate interest-bearing bank borrowings.As at June 30 2023 the principal of the Company’s floating-rate interest-bearing bank borrowings amounted to RMB 507 495776.70 (December 31 2022:
RMB 650205770.70). On the basis of the assumption that the interest rate has changed 10 basic points where all other variables are held constant it will bring no
material impacts on the Company’s total profits and shareholders’ equity.
2. Currency risk
Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The
Company’s exposure to the currency risk is primarily associated with the Company’s monetary assets and liabilities dominated in foreign currencies. If the monetary
assets and liabilities dominated in foreign currencies are imbalanced in a short time the Company will purchase and sell foreign currencies at the market exchange
rate to keep the net risk exposure acceptable.The closing balance of the Company’s monetary assets and liabilities dominated in foreign currencies are disclosed in VII.82 of Section X in details.XI. Disclosure of fair value
1. The closing balance of the fair value of assets and liabilities measured at fair value
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance of fair value
Item
Level 1 Level 2 Level 3 Total
I. Continuous fair value measurement
189 / 2152023 Semiannual Report
(I) Held-for-trading financial assets 534877200.00 30000000.00 564877200.00
1. Financial assets at fair value through profit or loss 534877200.00 30000000.00 564877200.00
(1) Investment in debt instrument
(2) Investment in equity instrument 12880000.00 30000000.00 42880000.00
(3) Structural deposits 521997200.00 521997200.00
2. Designated as financial assets at fair value through profit or
loss
(1) Investment in debt instrument
(2) Investment in equity instrument
(II) Other debt investments
(III) Other equity instrument investments 7075419.38 7075419.38
(IV) Investment properties
1. Land use right for leasing purpose
2. Buildings leased
3. Land use right held for the purpose of transfer after value
appreciation
(V) Biological assets
1. Consumable biological assets
2. Productive biological assets
Receivables financing 15223418.33 15223418.33
Total assets continuously measured at fair value 534877200.00 52298837.71 587176037.71
(VI) Held-for-trading financial liabilities
1. Financial liabilities at fair value through profit or loss
Including: Held-for-trading bonds issued
Derivative financial liabilities
Others
2. Designated as financial liabilities at fair value through profit
or loss
Total liabilities continuously measured at fair value
II. Non-continuous fair value measurement
(I) Held-for-sale assets
Total assets that are not continuously measured at fair value
Total liabilities that are not continuously measured at fair
190 / 2152023 Semiannual Report
value
2. Basis for determining the market price of continuous and non-continuous level 1 fair value measurement items
□ Applicable√ N/A
3. Valuation techniques and qualitative and quantitative information of key parameters adopted for continuous and non-continuous level 2 fair value
measurement items
√ Applicable□ N/A
The equity instrument investment presented stocks subscribed on the New Third Board; considering the factors including the level of activity for trading of stocks
on the New Third Board the Company classified stocks on the New Third Board as level 2 for the measurement of fair value where the fair value is determined
according to the average closing price of the previous 20 trading days.Structured deposits are valued using observable returns with the sum of expected returns and principal determined as fair value when the expected yield is
observable and the principal amount as fair value in other cases.
4. Valuation techniques and qualitative and quantitative information of key parameters adopted for continuous and non-continuous level 3 fair value
measurement items
√ Applicable□ N/A
The Company uses specific valuation techniques to determine fair value and important parameters used include the net assets of the investee unit at the end of the
period.
5. Reconciliation between opening and closing book values and sensitivity analysis of unobservable parameters for continuous level 3 fair value
measurement items
□ Applicable√ N/A
6. Where transfers among levels occurred in the period transfer reasons and policies for determining transfer time point for continuous fair value
measurement items
□ Applicable√ N/A
7. Changes in valuation techniques in the period and reasons for changes
□ Applicable√ N/A
8. Fair value of financial assets and financial liabilities not measured at fair value
□ Applicable√ N/A
9. Others
□ Applicable√ N/A
191 / 2152023 Semiannual Report
XII. Related-party relationships and transactions
1. Parent of the Company
√ Applicable□ N/A
Unit: 0’000 Yuan Currency: RMB
Proportion of the Company’s Proportion of the Company’s
Registration Registered
Parent company Business nature shares held by the parent voting right held by the parent
place capital
company (%) company (%)
Shenzhen Appotronics R&D and sales of
Shenzhen 1000.00 17.45 17.45
Holdings Limited semiconductor products
Description of the parent company of the Company
None
The ultimate controlling party of the Company is LI Yi.Other information:
None
2. Subsidiaries of the Company
Refer to the Note for details about the subsidiaries of the Company
√ Applicable□ N/A
Subsidiaries of the Company are disclosed in descriptions in IX.1 of Section XI in details.
3. Associates and joint ventures of the Company
Refer to the note for details about the significant joint ventures or associates of the Company.√ Applicable□ N/A
Refer to the description in Note IX.3 of Section X for details about the associates of the Company.Details of other joint ventures or associates having related-party transactions and balances with the Company in the period or in prior periods:
□ Applicable√ N/A
4. Other related parties of the Company
√ Applicable□ N/A
Name of other related party Relationship between other related party and the Company
Beijing Donview Education Technology Co. Ltd. and its affiliates Minority shareholders holding more than 10% shares in the subsidiary and their affiliates
Shenzhen YLX Technology Development Co. Ltd. Controlled by the same de facto controller
Xiaomi Communications Co. Ltd. and its affiliates Minority shareholders holding more than 10% shares in the subsidiary and their affiliates
China Film Equipment Co. Ltd. and its affiliates Minority shareholders holding more than 10% shares in the subsidiary and their affiliates
WeCast and its affiliates The de facto controller resigned as a director of WeCast for less than one year
CINIONIC and its affiliates As of April 30 in the current period the de facto controller resigned as a director of
192 / 2152023 Semiannual Report
Cinionic for less than one year
Other information
From May 1 in the current period Cinionic and its affiliates are no longer related parties because it has been one year after the de facto controller resigned as a
director of Cinionic.
5. Related-party transactions
(1). Sales and purchase of goods rendering and receipt of services
Purchase of goods/receipt of services
√ Applicable□ N/A
Unit: Yuan Currency: RMB
During the Whether the transaction
Transaction amounts
Related party Subject matter reporting amounts are exceeded (if Prior period
approved (if applicable)
period applicable)
Xiaomi Communications Co. Electronic
Ltd. and its affiliates components and 38793268.73 101000000.00 No 102666791.40
Service
China Film Equipment Co. Ltd. Power water
and its affiliates cooling and 11255989.49 35000000.00 No 10702327.46
services
GDC and its affiliates Electronic
336283.18 5000000.00 No 0.00
components
Beijing Donview Education
Maintenance
Technology Co. Ltd. and its 4198.11 0.00 Yes 8962.26
services
affiliates
Shenzhen YLX Technology Electronic
908182.19 3000000.00 No 533349.16
Development Co. Ltd. components
Sales of goods/rendering of services
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Amount for the Amount for the prior
Related party Subject matter
current period period
Xiaomi Communications Co. Ltd. and its affiliates Laser TV smart mini projector 80163085.66 302360399.65
China Film Equipment Co. Ltd. and its affiliates Laser light source and cinema projection services 11606671.69 16119369.88
CINIONIC and its affiliates Cinema light source 30228389.84 50666582.80
193 / 2152023 Semiannual Report
Beijing Donview Education Technology Co. Ltd. and its
Education projector 2573.26 1533749.83
affiliates
GDC and its affiliates Cinema projectors 294140.46 7493997.70
WeCast and its affiliates Laser TV smart mini projector 0.00 -7681578.96
Shenzhen YLX Technology Development Co. Ltd. Electronic components 3685678.75 950681.50
Description of sales and purchase of goods rendering and receipt of services
□ Applicable√ N/A
(2). Details of trust with related parties/subcontracting and trust management/contract-issuing
Details of trust/contracting where a group entity is the trustor/main contractor:
□ Applicable√ N/A
Description of trust/subcontracting with related parties
□ Applicable√ N/A
Details of trust/contracting where a group entity is the trustor/main contractor:
□ Applicable√ N/A
Description of management/contract-issuing with related parties
□ Applicable√ N/A
(3). Leases with related parties
The Company as the lessor:
□ Applicable√ N/A
194 / 2152023 Semiannual Report
The Company as the lessee:
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Variable lease
Simplified handling
payments not
of rental costs for Assumed interest
included in the
short-term leases and Paid rent expenses of lease Added right-of-use assets
measurement of
low-value asset leases liabilities
Type of leased lease liabilities (if
Lessor (if applicable)
assets applicable)
Amount Amount Amount Amount Amount Amount Amount
Amount for Amount for Amount for
for the for the for the for the for the for the for the
the current the current the prior
current prior current prior prior current prior
period period period
period period period period period period period
China Film
Equipment
-
Co. Ltd. Property lease 14231.64 63083.33 1540920.50 379304.00 58659.73 27641.32 3223361.75
1086329.01
and its
affiliates
Description of leases with related parties
□ Applicable√ N/A
195 / 2152023 Semiannual Report
(4). Guarantees with related parties
The Company as a guarantor
□ Applicable√ N/A
The Company as a guaranteed party
□ Applicable√ N/A
Description of guarantees with related parties
□ Applicable√ N/A
(5). Borrowings/loans with related parties
□ Applicable√ N/A
(6). Assets transfer/debt restructuring with related parties
□ Applicable√ N/A
(7). Compensation for key management personnel
√ Applicable□ N/A
Unit: 0’000 Yuan Currency: RMB
Amount for the prior
Item Amount for the current period
period
Compensation for key management
368.84469.87
personnel
(8). Other related-party transactions
□ Applicable√ N/A
6. Amounts due from/to related parties
(1). Amounts due from related parties
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance
Item Related party Carrying Provision for Carrying Provision for
amount bad debts amount bad debts
CINIONIC and its
29768395.791488419.79
affiliates
GDC Technology
Limited (BVI) and its 796680.58 39834.03 1739949.64 86997.48
affiliates
WeCast and its affiliates 16875766.52 16875766.52 16265737.14 16265737.14
Accounts
Xiaomi Communications
receivable 12880063.84 644003.19 22671178.87 1133558.94
Co. Ltd. and its affiliates
Shenzhen YLX
Technology Development 2313052.34 115652.62
Co. Ltd.China Film Equipment
4802595.90310925.872098625.51110758.50
Co. Ltd. and its affiliates
Sub-total 37668159.18 17986182.23 72543886.95 19085471.85
China Film Equipment
3048575.715451984.90
Co. Ltd. and its affiliates
Prepayments
Xiaomi Communications
293901.36
Co. Ltd. and its affiliates
Sub-total 3342477.07 5451984.90
China Film Equipment
189244.209462.21273354.2013667.71
Co. Ltd. and its affiliates
Other
GDC Technology
receivables
Limited (BVI) and its 14307084.00 13789908.00
affiliates
196 / 2152023 Semiannual Report
Xiaomi Communications
200000.0010000.00200000.0010000.00
Co. Ltd. and its affiliates
Sub-total 14696328.20 19462.21 14263262.20 23667.71
(2). Amounts due to related parties
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Related party Closing balance of Opening balance of
carrying amount carrying amount
Shenzhen YLX Technology
493211.51110054.78
Development Co. Ltd.Xiaomi Communications Co. Ltd.Accounts payable 12521840.23
and its affiliates
China Film Equipment Co. Ltd. and
13055929.514356968.33
its affiliates
Sub-total 13549141.02 16988863.34
China Film Equipment Co. Ltd. and
Notes payable 18842525.54 22554693.11
its affiliates
Sub-total 18842525.54 22554693.11
China Film Equipment Co. Ltd. and
7708452.859342716.60
Advance from its affiliates
customers GDC Technology Limited (BVI) and
35359.834800.00
its affiliates
Sub-total 7743812.68 9347516.60
GDC Technology Limited (BVI) and
23677.17
Contract its affiliates
liabilities China Film Equipment Co. Ltd. and
1535329.222738876.11
its affiliates
Sub-total 1535329.22 2762553.28
Beijing Donview Education
50000.0050000.00
Technology Co. Ltd. and its affiliates
CINIONIC and its affiliates 507874.72
Other payables GDC Technology Limited (BVI) and
67020.0020620.00
its affiliates
China Film Equipment Co. Ltd. and
18025.76
its affiliates
Sub-total 117020.00 596520.48
Xiaomi Communications Co. Ltd.
163562.41201468.53
Other current and its affiliates
liabilities China Film Equipment Co. Ltd. and
198514.183179145.48
its affiliates
Sub-total 362076.59 3380614.01
7. Related party commitments
□ Applicable√ N/A
8. Others
□ Applicable√ N/A
XIII. Share-based payments
1. Summary of share-based payments
√ Applicable□ N/A
Unit: Share Currency: RMB
Item Company Chongqing
197 / 2152023 Semiannual Report
Formovie
Total number of the Company’s equity
00
instruments granted during the period
Total number of the Company’s equity
00
instruments executed during the period
Total number of the Company’s equity
998500102800
instruments lapsed during the period
Grant date: April 22 2021; grant
price: RMB 20.786/share; 9 months
Grant date: April 22 2021; grant
price: RMB 18.286/share; 9 months
Grant date: April 22 2021; grant
price: RMB 17.286/share; 9 months G rant date:
Grant date: December 7 2021; grant December 31 2021;
price: RMB 19.841/share; 17 months g r a nt price: RMB
Grant date: December 7 2021; grant 1/share; 36 months
Range of exercise prices and remaining price: RMB 22.841/share; 17 months G ra nt date: July 6
contractual life of the Company’s share Grant date: March 11 2022; grant 2022; grant price:
options outstanding at the end of the price: RMB 19.841/share; 17 months R M B 1/share; 36
period Grant date: March 11 2022; grant months
price: RMB 22.841/share; 17 months G ra nt date: July 7
Grant date: March 11 2022; grant 2022; grant price:
price: RMB 18.286/share; 9 months R MB 3.42/share; 36
Grant date: May 25 2022; grant months
price: RMB 15.341/share; 11 months
Grant date: July 22 2022; grant
price: RMB 4.30/share; 25 months
Grant date: December 27 2022; grant
price: RMB 15.341/share; 18 months
Range of exercise prices and remaining
contractual life of the Company’s other
None None
equity instruments outstanding at the
end of the period
Other information
None
2. Equity-settled share-based payments
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Chongqing
Item Company
Formovie
Evaluation of all
The method of determining the fair value of equity Option pricing
shareholder’s equity
instruments at the grant date model
interests
The basis of determining the number of equity
Actual grant amount Actual grant amount
instruments expected to be executed
Reasons for the significant difference between the
None None
estimate in the current period and that in the prior period
Amounts of equity-settled share-based payments
157384979.4220371250.13
accumulated in capital reserve
Total expenses recognized arising from equity-settled
20403175.814605410.45
share-based payments
Other information
All restricted shares granted by the Company are Type II restricted shares while the registered capital
granted by Foremovie was treated with reference to Type I restricted shares.
198 / 2152023 Semiannual Report
3. Cash-settled share-based payments
□ Applicable√ N/A
4. Modification to and termination of share-based payments
□ Applicable√ N/A
5. Others
□ Applicable√ N/A
XIV. Commitments and contingencies
1. Significant commitments
□ Applicable√ N/A
199 / 2152023 Semiannual Report
2. Contingencies
(1). Significant contingencies as of the balance sheet date
√ Applicable□ N/A
Pending litigation
1、 Civil litigation and arbitration where the Company acted as the plaintiff/claimant
As of June 30 2023 there are 10 major civil litigation and arbitration cases where the Company acted as a plaintiff specifically including:
Cause of Patents Amount involved
Case No. Plaintiff/Claimant Defendant/Respondent Progress
action involved
(1) Compensation
Defendant 1: Delta Electronics
(2019) Yue 03 amount decided in
Infringem (Shanghai) Co. Ltd.;
Min Chu No. 2943 the trial of the first
ent on Appotronics Defendant 2: Delta Video Display 20081006
(2021) Zui Gao Fa RMB 8.00 million instance: RMB
patent for Corporation Limited System (Wujiang) Limited; 5225.X
Zhi Min Zhong 271399.40; (2)
invention Defendant 3: Shenzhen Super
No. 1582 Under trial of the
Network Technology Co. Ltd.second instance
(1) Compensation
Defendant 1: Delta Electronics
(2019) Yue 03 amount decided in
Infringem (Shanghai) Co. Ltd.;
Min Chu No. 2944 the trial of the first
ent on Appotronics Defendant 2: Delta Video Display 20081006
(2021) Zui Gao Fa RMB 8.00 million instance: RMB
patent for Corporation Limited System (Wujiang) Limited; 5225.X
Zhi Min Zhong 501399.40; (2)
invention Defendant 3: Shenzhen Super
No. 1718 Under trial of the
Network Technology Co. Ltd.second instance
(1) Compensation
Defendant 1: Delta Electronics
(2019) Yue 03 amount decided in
Infringem (Shanghai) Co. Ltd.;
Min Chu No. 2946 the trial of the first
ent on Appotronics Defendant 2: Delta Video Display 20081006
(2022) Zui Gao Fa RMB 4.00 million instance: RMB
patent for Corporation Limited System (Wujiang) Limited; 5225.X
Zhi Min Zhong 151399.40; (2)
invention Defendant 3: Shenzhen Super
No. 161 Under trial of the
Network Technology Co. Ltd.second instance
200 / 2152023 Semiannual Report
(1) Compensation
Defendant 1: Delta Electronics
(2019) Yue 03 amount decided in
Infringem (Shanghai) Co. Ltd.;
Min Chu No. 2948 the trial of the first
ent on Appotronics Defendant 2: Delta Video Display 20081006
(2021) Zui Gao Fa RMB 4.00 million instance: RMB
patent for Corporation Limited System (Wujiang) Limited; 5225.X
Zhi Min Zhong 146399.40; (2)
invention Defendant 3: Shenzhen Super
No. 1548 Under trial of the
Network Technology Co. Ltd.second instance
(1) Compensation
Defendant 1: Delta Electronics
(2019) Yue 03 amount decided in
Infringem (Shanghai) Co. Ltd.;
Min Chu No. 2951 the trial of the first
ent on Appotronics Defendant 2: Delta Video Display 20081006
(2021) Zui Gao Fa RMB 4.00 million instance: RMB
patent for Corporation Limited System (Wujiang) Limited; 5225.X
Zhi Min Zhong 581399.40; (2)
invention Defendant 3: Shenzhen Super
No. 1550 Under trial of the
Network Technology Co. Ltd.second instance
Dispute
over
damages
caused by
(2021) Yue 73 maliciousl Appotronics Under trial of the
Defendant: Delta Electronics Inc. - RMB 10.00 million
Min Chu No. 1860 y initiating Corporation Limited first instance
an
intellectua
l property
litigation
Although an
application for
execution had been
Dispute submitted to the
(2023) Yue 0305 over the Appotronics Huaxia Jingrui Lighting court the execution
- RMB 0.7867 million
Zhi No. 4099 sales Corporation Limited Technology (Beijing) Co. Ltd. was suspended at
contract present because the
court found no
property for
execution.
201 / 2152023 Semiannual Report
Arbitratio
n
countercla
GDC Technology Limited (Cayman
im of
Appotronics Hong Islands)
dispute
Kong Limited GDC Technology Limited (British
01-22-0001-2735 over the - USD 40.00 million Accepted
Appotronics Virgin Islands)
implement
Corporation Limited De facto controller ZHANG
ation of
Wanneng and his management team
the
settlement
agreement
Dispute
CINEAPPO Laser
over a Foshan Jiafu Cinema Management Return 7 laser light The award has been
DSC20212921 Cinema Technology -
commerci Co. Ltd. source devices made and is pending
(Beijing) Co. Ltd.
al contract
Return 10 sets of laser
Dispute digital cinema projection Open trial
CINEAPPO Laser Hubei Mango Qin Han Cultural
(2022) Jing Zhong over a equipment and completed; pending
Cinema Technology Tourism Industry Development -
An No. 7825 commerci compensate RMB decision by the
(Beijing) Co. Ltd. Co. Ltd.
al contract 15312.5 for liquidated arbitration tribunal
damages
2、 Civil litigation and arbitration where the Company acted as the defendant/respondent
As of June 30 2023 there were 2 major civil litigation and arbitration cases where the Company was a defendant specifically including:
Cause of Patents Amount
Case No. Plaintiff/Claimant Defendant/Respondent Progress
action involved involved
202 / 2152023 Semiannual Report
Cause of Patents Amount
Case No. Plaintiff/Claimant Defendant/Respondent Progress
action involved involved
(2019) Jing 73 Loss
The judgment of the first
Min Chu compensation
instance in January 2022
No.1275 Infringement Fengmi (Beijing) Technology Co. of RMB 15.00
ZL20161038 held that no
(2022) Zui Gao on patent for Delta Electronics Inc. Ltd.; Appotronics Corporation million and
7831.8 infringement is
Fa Zhi Min invention Limited litigation costs
constituted; pending
Zhong No. of RMB 1.01
second trial
1587 million
Arbitration
of dispute
GDC Technology Limited
over the
01-22-0001- (Cayman Islands) Appotronics Hong Kong Limited USD 38.00
implementati - Accepted
2735 GDC Technology Limited Appotronics Corporation Limited million
on of the
(British Virgin Islands)
Settlement
Agreement
(2). Description shall also be provided even if the Company has no significant contingencies to be disclosed:
□ Applicable√ N/A
3. Others
□ Applicable√ N/A
203 / 2152023 Semiannual Report
XV. Events after the balance sheet date
1. Material non-adjusting event
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Effects on the Reasons for not being
Item Content financial position and able to estimate such
operating results effects
From the end of the
reporting period to the
The Company registered the vesting of
disclosure date of this
a total of 3299000 qualified shares for
semiannual report
the first vesting period in the initial
Issuance changes in the
grant of the restricted share incentive
of stocks Company’s shares
plan 2022. These shares became
and increased the diluted
available for trading on July 7 2023
bonds earnings per shares and
increasing the Company’s total shares
net assets per share
from 457107538 shares to
attributable to ordinary
460406538 shares.
shareholders of the
Company.
2. Profit distribution
□ Applicable√ N/A
3. Sales return
□ Applicable√ N/A
4. Description of other events after the balance sheet date
□ Applicable√ N/A
XVI. Other significant events
1. Corrections of prior period errors
(1). Retrospective application
□ Applicable√ N/A
(2). Prospective application
□ Applicable√ N/A
2. Debt restructuring
√ Applicable□ N/A
The Company as the creditor:
Unit: Yuan Currency: RMB
Method of debt restructuring Book value of creditor’s right Profit or loss related to debt
restructuring
Asset for debt payment 791852.00 0.00
3. Asset swap
(1). Exchange of non-monetary assets
□ Applicable√ N/A
(2). Other asset swap
□ Applicable√ N/A
4. Annuity plan
□ Applicable√ N/A
5. Discontinued operations
□ Applicable√ N/A
204 / 2152023 Semiannual Report
6. Segment reporting
(1). Determination basis and accounting policies of reporting segments
□ Applicable√ N/A
(2). Financial information of reporting segments
□ Applicable√ N/A
(3). If the Company has no reporting segments or cannot disclose the total assets and liabilities of
reporting segments specify the reasons
□ Applicable√ N/A
(4). Other information
□ Applicable√ N/A
7. Other significant transactions and matters having an impact on the decisions of investors
□ Applicable√ N/A
8. Others
□ Applicable√ N/A
XVII. Notes to key items in the parent company’s financial statements
1. Accounts receivable
(1). Disclosure by aging
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Aging Closing balance of carrying amount
Within 1 year
Including: Subitems within 1 year
Within 1 year 353665610.93
Sub-total of items within 1 year 353665610.93
1 to 2 years 274822661.34
2 to 3 years 14129828.38
Over 3 years 6985373.06
Total 649603473.71
205 / 2152023 Semiannual Report
(2). Disclosure by categories of provision for bad debts
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance
Carrying amount Provision for bad debts Carrying amount Provision for bad debts
Category Percentage Percentage
Percentage Book value Percentage Book value
Amount Amount of provision Amount Amount of provision
(%)(%)
(%)(%)
Provision for bad
debts made 786700.00 0.12 786700.00 100.00 0.00
individually
Including:
Provision for bad
debts made 786700.00 0.12 786700.00 100.00 0.00
individually
Provision for bad
debts made by 648816773.71 99.88 8628554.06 1.33 640188219.65 694612393.91 100.00 6607565.62 0.95 688004828.29
group
Including:
Group of aging 85068080.08 13.10 8628554.06 10.14 76439526.02 91536981.15 13.18 6607565.62 7.22 84929415.53
Group of
receivables from
related parties in 563748693.63 86.78 0.00 0.00 563748693.63 603075412.76 86.82 0.00 0.00 603075412.76
the scope of
consolidation
Total 649603473.71 100.00 9415254.06 1.45 640188219.65 694612393.91 100.00 6607565.62 0.95 688004828.29
206 / 2152023 Semiannual Report
Provision for bad debts made individually:
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance
Name Provision for bad Percentage of Reason for
Carrying amount
debts provision (%) provision
Expected to be
unrecoverable
Company B 786700.00 786700.00 100.00 because the
customer is in
hardship
Total 786700.00 786700.00 100.00 /
Explanation about provision for bad debts made individually:
□ Applicable√ N/A
Provision for bad debts made by group:
√ Applicable□ N/A
Item by group: Group of aging
Unit: Yuan Currency: RMB
Closing balance
Name Accounts Percentage of provision
Provision for bad debts
receivable (%)
Group of aging 85068080.08 8628554.06 10.14
Group of receivables from 563748693.63
related parties in the scope
of consolidation
Total 648816773.71 8628554.06 1.33
Recognition criterion to make the Provision for bad debts by group and explanation:
□ Applicable√ N/A
If the bad debt provision is made according to the general model of ECL please refer to the disclosure of
other receivables:
□ Applicable√ N/A
(3). Provision for bad debts
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Changes for the current period
Opening Recovery Closing
Category Write off or Other
balance Provision or balance
cancellation changes
reversal
Provision
for bad
6607565.622809738.442050.009415254.06
debts made
by group
Total 6607565.62 2809738.44 2050.00 9415254.06
Including significant amounts recovered or reversed from the current provision for bad debts:
□ Applicable√ N/A
(4). Accounts receivable actually canceled in the current period
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Cancellation amount
Accounts receivable actually canceled 2050.00
In which significant amounts canceled are described as below:
□ Applicable√ N/A
207 / 2152023 Semiannual Report
Description of accounts receivable cancellation:
□ Applicable√ N/A
(5). Top five closing balances of accounts receivable categorized by debtors
√ Applicable□ N/A
Proportion to the total Closing balance
Entity Closing balance closing balance of of provision for
accounts receivable (%) bad debts
Top 1 273620354.09 42.12
Top 2 154115537.28 23.72
Top 3 70566103.74 10.86
Top 4 31356518.89 4.83
Top 5 28954019.94 4.46
Total 558612533.94 85.99
(6). Accounts receivable derecognized due to transfer of financial assets
√ Applicable□ N/A
Unit: Yuan Currency:
RMB
Method of
Amount Gains or losses associated with
Item transferring financial
derecognized derecognition
assets
CCB E
3000000.00 Discount
Infocomm
Sub-total 3000000.00
(7). Assets and liabilities arising from transfer of accounts receivable and continued
involvement
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
2. Other receivables
Presented by item
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Interest receivable
Dividend receivable
Other receivables 14803374.55 7556623.71
Total 14803374.55 7556623.71
Other information:
□ Applicable√ N/A
Interest receivable
(1). Categories of interest receivable
□ Applicable√ N/A
(2). Significant interests overdue
□ Applicable√ N/A
(3). Provision for bad debts
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
208 / 2152023 Semiannual Report
(4). Dividends receivable
□ Applicable√ N/A
(5). Dividends receivable with significant amounts aged more than 1 year
□ Applicable√ N/A
(6). Provision for bad debts
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
Other receivables
(7). Disclosure by aging
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Aging Closing balance of carrying amount
Within 1 year
Including: Subitems within 1 year
Within 1 year 9312740.42
Sub-total of items within 1 year 9312740.42
1 to 2 years 324556.66
2 to 3 years 569056.66
Over 3 years 4954293.20
Total 15160646.94
(8). Categories by the nature
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance of carrying Opening balance of carrying
Nature of receivables
amount amount
Deposits/margins/petty cash 6628870.41 6539089.13
Receivables from related parties 8015199.08 1153906.23
in the scope of consolidation
Temporary receivables 516577.45 134793.84
Compensation receivable 65819.64
Total 15160646.94 7893608.84
(9). Provision for bad debts
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Stage I Stage II Stage III
12-month Lifetime ECL
Provision for bad debts Lifetime ECL (with Total
ECL in the (without credit
credit impairment)
future impairment)
Balance as at January
336985.13336985.13
12023
Balance as at January
1 2023 in the current
period
--transferred to Stage
II
--transferred to Stage
III
--reversed to Stage II
209 / 2152023 Semiannual Report
--reversed to Stage I
Provision 20287.26 20287.26
Reversal
Write-off
Cancellation
Other changes
Balance as at June 30
357272.39357272.39
2023
Description of significant changes in the balance of other receivables with changed provisions for losses
in the current period:
□ Applicable√ N/A
Basis for recognizing the amount of provision for bad debts and evaluating whether the credit risk of
financial instruments has been increased significantly in the current period:
□ Applicable√ N/A
(10). Provision for bad debts
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Changes for the current period
Opening Closing
Category Recovery Write off or Other
balance Provision balance
or reversal cancellation changes
Provision for
bad debts
336985.1320287.26357272.39
made by
group
Total 336985.13 20287.26 357272.39
Including significant amounts recovered or reversed from the current provision for bad debts:
□ Applicable√ N/A
(11). Other receivables actually canceled in the current period
□ Applicable√ N/A
Description of other receivables cancellation:
□ Applicable√ N/A
(12). Top five closing balances of other receivables categorized by debtors
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Provision
Nature of other Closing Proportion to the balance for bad debts
Entity Aging
receivables balance of other receivables (%) Closing
balance
Receivables from
Within 1
Top 1 related parties in the 4191508.17 27.65
year
scope of consolidation
Receivables from
Within 1
Top 2 related parties in the 3627144.88 23.92
year
scope of consolidation
Deposits/margins/petty
Top 3 3574618.00 Over 3 years 23.58 178730.90
cash
Deposits/margins/petty
Top 4 1257075.20 Over 3 years 8.29 62853.76
cash
Deposits/margins/petty Within 1
Top 5 500000.00 3.30 25000.00
cash year
Total - 13150346.25 - 86.74 266584.66
(13). Accounts receivable involving government grants
□ Applicable√ N/A
210 / 2152023 Semiannual Report
(14). Other receivables derecognized due to transfer of financial assets
□ Applicable√ N/A
(15). Assets and liabilities arising from transfer of other receivables and continued involvement
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
211 / 2152023 Semiannual Report
3. Long-term equity investments
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance
Item Provision for Provision for
Carrying amount Book value Carrying amount Book value
impairment impairment
Investments in subsidiaries 478862913.65 12827792.79 466035120.86 463067140.24 12827792.79 450239347.45
Investments in associates and joint
ventures
Total 478862913.65 12827792.79 466035120.86 463067140.24 12827792.79 450239347.45
(1) Investments in subsidiaries
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance of
Opening Provision for
Investee Increase Decrease Closing balance provision for
balance impairment
impairment
CINEAPPO Laser Cinema Technology
46661211.651221081.3847882293.03
(Beijing) Co. Ltd.
Shenzhen Appotronics Software Technology
1457799.4220979.321478778.74
Co. Ltd.Beijing Orient Appotronics Technology Co.
5900000.005900000.00
Ltd.Shenzhen Appotronics Xiaoming Technology
12000000.0012000000.0012000000.00
Co. Ltd.Fengmi (Beijing) Technology Co. Ltd. 3469000.91 798.47 3469799.38
Qingda Appotronics (Xiamen) Technology
5100000.005100000.00827792.79
Co. Ltd.Shenzhen Appotronics Laser Display
18966857.2618966857.26
Technology Co. Ltd.Appotronics Hong Kong Limited 305476042.87 571280.54 306047323.41
JoveAI Innovation Inc. 800010.03 800010.03
Appotronics Technology (Changzhou) Co. 2000000.00 2000000.00
212 / 2152023 Semiannual Report
Closing balance of
Opening Provision for
Investee Increase Decrease Closing balance provision for
balance impairment
impairment
Ltd.Shenzhen Appotronics Display Device Co.
3000000.003000000.00
Ltd.Tianjin Bonian Film Partnership (LP) 26954120.20 26954120.20
Formovie (Chongqing) Innovative Technology
31277785.13168361.3831446146.51
Co. Ltd.Shenzhen Orange Juice Energy Technology
4312.77-527.683785.09
Co. Ltd.Shenzhen Qianhai Taishi Investment
13813800.0013813800.00
Partnership (LP)
Total 463067140.24 15795773.41 478862913.65 12827792.79
(2) Investments in associates and joint ventures
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
213 / 2152023 Semiannual Report
4. Operating income and operating costs
(1). Description of operating income and operating costs
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Amount for the current period Amount for the prior period
Item
Income Cost Income Cost
Main business 542956800.34 368571473.83 649645354.34 432684792.22
Other business
Total 542956800.34 368571473.83 649645354.34 432684792.22
(2). Description of incomes from contracts
□ Applicable√ N/A
(3). Description of performance obligations
□ Applicable√ N/A
(4). Description of allocation to remaining performance obligations
□ Applicable√ N/A
Other information:
None
5. Investment income
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Amount for the
Item Amount for the prior period
current period
Gains from long-term equity investment
7452000.00
accounted for using the cost method
Investment income from held-for-trading
200000.00
financial assets during the holding period
Investment income from disposal of held-for-
5265708.555684922.38
trading financial assets
Total 12717708.55 5884922.38
Other information:
None
6. Others
□ Applicable√ N/A
XVIII. Supplementary information
1. Breakdown of non-recurring profit or loss for the current period
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Amount Description
Gain or loss on disposal of non-current assets -216132.87
Government grants recognized in profit or loss for the current period
(excluding government grants that are closely related to the business of
33198815.57
the Company and are provided in fixed amount or quantity continuously
according to the applicable polices and standards of the country)
Profit or loss on entrusted investments or assets management 5198708.55
Net profit or loss of subsidiaries from the beginning of the period up to
the business combination date recognized as a result of business 14923989.20
combination of enterprises involving enterprises under common control
Profit or loss on changes in the fair value of held-for-trading financial
67000.00
assets derivative financial assets held-for-trading financial liabilities and
214 / 2152023 Semiannual Report
derivative financial liabilities and investment income on disposal of held-
for-trading financial assets derivative financial assets held-for-trading
financial liabilities derivative financial liabilities and other debt
investments other than those used in the effective hedging activities
relating to normal operating business
Reversal of impairment loss on accounts receivable and contract assets
69851.05
tested for impairment individually
Other non-operating income and expenses 14480.93
Other gains or losses meeting the definition of non-recurring profit or
442061.07
loss
Less: Effect of income taxes 3469096.89
Effects attributable to minority interests (net of tax) 9543875.27
Total 40685801.33
It is required to specify the reason for defining items as non-recurring profit or loss items according to
Information Disclosure and Presentation Rules for Companies Making Public Offering of Securities No.
1 - Non-recurring Profit or Loss and reasons for defining non-recurring profit or loss items illustrated in
Information Disclosure and Presentation Rules for Companies Making Public Offering of Securities No.
1 - Non-recurring Profit or Loss as recurring profit or loss items.
□ Applicable√ N/A
2. Return on net assets and earnings per share
√ Applicable□ N/A
Weighted average Earnings per share
Profit for the reporting period return on net Basic earnings Diluted earnings
assets (%) per share per share
Net profit attributable to ordinary
2.780.160.16
shareholders of the Company
Net profit after deduction of non-
recurring profits or losses attributable to 1.27 0.07 0.07
ordinary shareholders of the Company
3. Differences in accounting data under Chinese accounting standards and overseas accounting
standards
□ Applicable√ N/A
4. Others
□ Applicable√ N/A
Chairman: LI Yi
Approval for submission by the Board of Directors: August 16 2023
Revision information
□ Applicable√ N/A