光峰科技:2021年半年度报告（英文版）

Stock Code: 688007 Stock Short Name: Appotronics
Appotronics Corporation Limited
本报告为深圳光峰科技股份有限公司自愿披露的《2021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。
is voluntarily disclosed by Appotronics Corporation
Limited and if the meaning of the translated version is different than the Chinese
version the Chinese version will control.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 operation of theCompany in this Report. Refer to “Section III Discussion and Analysis of the Management – V. Riskfactors” for the relevant risks. We draw the attention of investors to such risks in making investments.III. All directors of the Company attended the meeting of the Board of Directors.IV. This Semiannual Report has not been audited.V. BO Lianming Principal of the Company WANG Yingxia Chief Accountant and LIU Jie
Person in Charge of the Accounting Body (Accounting Officer) hereby represent that: the
financial statements contained in this Semiannual Report are true accurate and complete.VI. Profit distribution proposal or proposal for capitalization of capital reserve approved by the
resolutions of 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. The investors should be aware of the risk of investment.IX. Is there any non-operational occupation of funds by the controlling shareholder or its affiliates?
No
X. Is there any external guarantee provided in contravention of the stipulated decision-making
procedure?
No
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
Table of Contents
Section I Definitions ............................... 4
Section II Company Profile and Financial Highlight... 5
Section III Discussion and Analysis of the Managem... 9
Section IV Corporate Governance..................... 33
Section V Environment and Social Responsibilities .. 37
Section VI Significant Matters ..................... 40
Section VII Changes in Shares and Shareholders .... 644
Section VIII Preferred Shares ..................... 699
Section IX Bonds .................................. 699
Section X Financial Report ........................ 699
Financial Statements with seals and signatures of Principal of the Company
Chief Accountant and Person in charge of the Accounting Body (Chief
List of Documents Officer)
Available for Inspection All original documents and announcements of the Company publicly
disclosed in the websites designated by the Company as of the reporting
period
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 former name of the Company
CINEAPPO means CINEAPPO Laser Cinema Technology (Beijing) Co. Ltd.Fengmi means collectively Chongqing Fengmi and its subsidiary Beijing Fengmi
Beijing Fengmi means Fengmi (Beijing) Technology Co. Ltd.Chongqing
means Fengmi (Chongqing) Innovative Technology Co. Ltd.Fengmi
Appotronics HK means Appotronics Hong Kong Limited
Appotronics
means Shenzhen Appotronics Daye Investment Partnership (LP)
Daye
Appotronics
means Shenzhen Appotronics Deye Consulting Partnership (LP)
Deye
Appotronics
means Shenzhen Appotronics Hongye Investment Partnership (LP)
Hongye
Blackpine means Blackpine Investment Corp. Ltd.Jinleijing means Shenzhen Jinleijing Investment Limited Partnership (LP)
Appotronics
means Shenzhen Appotronics Chengye Consulting Partnership (LP)
Chengye
Dangbei means Hangzhou Dangbei Network Technology Co. Ltd.Delta Electronics
means Delta Electronics Inc.or Delta
CINIONIC means Cinionic Limited (previously known as Barco Cineappo Limited)
GDC BVI means GDC Technology Limited (British Virgin Islands)
GDC Cayman means GDC Technology Limited (Cayman Islands)
Feng Dynamic Page dynamic page architecture developed independently
FDP means
by Appotronics
DCI means Digital Cinema Initiatives of the United States
AR means Augmented Reality
DLP means Digital Light Processing
PCT means Patent Cooperation Treaty
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 BO Lianming
20-22/F Hi-tech Zone Union Tower No. 63 Xuefu Road Yuehai
Registered address
Street Nanshan District Shenzhen
1. On October 24 2006: Room 10 F/14 Fangda Building Keji South
12 Road South Area High-tech Zone Nanshan District Shenzhen
2. On September 6 2007: No. 03 17/F Overseas Students Venture
Building South Area Nanshan District Shenzhen
3. On June 7 2011: Area A 1/F Xili Wenguang Industrial Zone
Nanshan District Shenzhen
Historic changes of registered
4. On October 24 2012: Room 401 Shenzhen Integrated Circuit
address of the Company
Design and Application Industrial Park South Side of Chaguang
Road Xili Town Nanshan District Shenzhen
5. On December 14 2017: 21-22/F Hi-tech Zone Union Tower No.63 Xuefu Road Yuehai Street Nanshan District Shenzhen
6. On 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 Securities affairs representative
representative for information disclosure)
Name YAN Li CHEN Yasha
20-22/F Hi-tech Zone Union Tower No. 20-22/F Hi-tech Zone Union Tower No. 63
Address 63 Xuefu Road Yuehai Street Nanshan Xuefu Road Yuehai Street Nanshan
District Shenzhen District Shenzhen
Telephone 0755-32950536 0755-32950536
Facsimile 0755-86186299 0755-86186299
Email ir@appotronics.cn ir@appotronics.cn
III. Description of changes to the media for information disclosure and place for keeping
semiannual reports
Designated newspaper for information China Securities Journal Shanghai Securities News
disclosure Securities Times Securities Daily
Websites for publishing the semiannual www.sse.com.cn
reports
Place for keeping the semiannual reports Office of the Board of Directors
Reference to changes during the reporting N/A
period
IV. Stock and depository receipts of the Company
(I) Stock of the Company
√ Applicable□ N/A
Stock of the Company
Stock exchange and Former stock short
Type of stock Stock short name Stock code
board 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 highlights of the Company
(I) Main accounting data
Unit: Yuan Currency: RMB
During the Change over
Main accounting data reporting period Prior period the prior period
(Jan. - Jun.) (%)
Operating income 1104689243.59 716025207.34 54.28
Net profit attributable to shareholders
151413920.79 14327442.96 956.81
of the listed company
Net profit attributable to shareholders
of the listed company after deduction 66961936.08 -30232495.13 N/A
of non-recurring profit or loss
Net cash flow from operating activities 170659313.90 63006061.80 170.86
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 2324476282.79 2091599671.75 11.13
of the listed company
Total assets 3651135378.47 3226204326.69 13.17
(II) Financial highlights
During the
Change over the
Financial highlights reporting period Prior period
prior period (%)
(Jan. - Jun.)
Basic earnings per share (RMB/share) 0.33 0.03 1000.00
Diluted earnings per share (RMB/share) 0.33 0.03 1000.00
Basic earnings per share after deduction
of non-recurring profit or loss 0.15 -0.07 N/A
(RMB/share)
Weighted average return on net assets +6.17 percentage
6.89 0.72
(%) points
Weighted average return on net assets
+4.57 percentage
after deduction of non-recurring profit 3.05 -1.52
points
or loss (%)
Proportion of R&D investments to 8.61 12.19 -3.58 percentage
operating income (%) points
Explanation about the main accounting data and financial highlights
√ Applicable□ N/A
1. During the reporting period the operating income increased by 54.28% year on year primarily
due to the rapid growth of the household business revenue and the basic recovery of cinema business
revenue.2. During the reporting period the net profit attributable to shareholders of the listed company
increased by 956.81% year on year; the basic earnings per share and diluted earnings per share increased
by 1000.00% and 1000.00% respectively; and the net profit attributable to shareholders of the listed
company after deduction of non-recurring profit or loss increased by RMB 97.1944 million from
corresponding periods of last year primarily due to the following:
(1) the Company’s revenue increased by 54.28% year on year the business structure optimized the
overall gross margin increased by 8.49% year on year the cinema business resumed its high gross margin
and the gross margin of the large venue and business education increased; and
(2) during the reporting period the year-on-year increase in non-recurring profit or loss was primarily
due to the increase in the government grants recognized in the profit or loss for the current period and
recognition of the performance compensation of the participating company.3. Net cash flow from operating activities increased by 170.86% year on year primarily due to the
increase in revenue and in sales receipts.VII. Differences in accounting data under Chinese Accounting Standards and Oversea Accounting
Standards
□ Applicable√ N/A
VIII. Items and amounts of non-recurring profit or loss
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item of non-recurring profit or loss Amount Note (if applicable)
Gain or loss on disposal of non-current 2048154.10
assets
Government grants recognized in profit or 71808211.32 VII. 84 of Section X
loss for the current period (excluding
government grants that are closely related
to the business of the Company and are
provided in fixed amount or quantity
continuously according to the applicable
polices and standards of the country)
Profit or loss on entrusted investments or 2145923.39
assets management
Net profit or loss of subsidiaries from the 11386216.47
beginning of the period up to the business
combination date recognized as a result of
business combination of enterprises
involving enterprises under common
control
Profit or loss on changes in the fair value of 38175900.00 VII. 70 of Section X
held-for-trading financial assets derivative
financial assets held-for-trading financial
liabilities and 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
Other non-operating income and expenses 501309.74
Other gains or losses meeting the 571819.78
definition of non-recurring profit or loss
Effect of minority interests -24952896.18
Effect of income taxes -17232653.91
Total 84451984.71
IX. Explanation about performance indicators not under the Accounting Standards for Business
Enterprises
□ Applicable√ N/A
Section III Discussion and Analysis of the Management
I. Industry and main business during the reporting period
1. Main business
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 laser display technology to different scenarios based on ALPD? laser display technology
and architecture and provides laser cinema projection services.Since its innovative invention of the ALPD? technology in 2007 the Company has created new laser
display architecture built core intellectual properties and mastered the designing and manufacturing of
core devices. It has upgraded the ALPD? technology continuously and relying on the advanced ALPD?
technology promoted the industrial applications of laser display and gradually extended the application
of laser display from laser cinema projection and other high-end applications to large venue business
education household market and other display applications.ALPD? laser display technology furthers the growth of display applications
Laser cinema projection device
20000+ units installed around the world
C5 passed the DCI certification making China
the fourth country in the world capable of
developing and manufacturing digital cinema
projectors that comply with DCI specifications
Laser venue projector
60000 lumens disruptive product
60000lm
The brightness of complete
equipment suppresses the industry
Laser TV
2020 IF
Outdoor venue solutions design
Appearing on CCTV Spring Festival Gala award
and lighting up the night of the Forbidden
City on Chinese Lantern Festival
Laser education projector
Laser smart mini projector
Figure 1: ALPD? laser display technology and its application and development
2. Main products and services
The Company engages in sales of products and provision of laser cinema projection services etc. Its
diversified products may be classified into core laser display devices and complete laser display equipment.Wherein the core devices can be further classified into laser light source (cinema light source and large
venue light source) laser TV light generator laser mini projection light generator and flexible laser display
screen and complete laser display equipment can be further classified into laser cinema projector large
venue laser projector laser video wall laser education projector laser TV and smart mini projector.2.1 Products of core devices
The Company’s core devices including the laser light source light generator and flexible screen
reflect various advantages and characteristics of ALPD? technology such as high brightness wide color
gamut high contrast and low cost. The quality and performance of such products have received
recognition of downstream customers which helps the Company establish its position as a core supplier
on the industry chain of laser display.Figure 2: Laser light source and laser light generator
2.2 Products of complete equipment
On the basis of laser light source and light generators the Company has further developed complete
equipment which has been widely used in household and other commercial applications.2.2.1 Products for the household market
In recent years laser TV smart mini projector and other household projector products have been
developing rapidly due to the ever increasing acceptance of the new mode of movie watching by the
consumers and rapid decrease of the costs and prices and better performance of products. The Company’s
household products have a leading market share and the household business has grown rapidly.100 inch flexible Fresnel screen embedded
Figure 3: Cinema 2 the New Product of Fengmi Laser TV
2.2.2 Products for the commercial market
- In the field of cinema projection the Company has created a product portfolio of laser cinema light
sources covering multiple ranges of lumens from 5000 lumens to 55000 lumens which are compatible
with many projection equipment brands on the market for wide application in large- medium- and small-
sized cinemas. Thanks to the low operating power the laser cinema light source reduces electricity
consumption by 50% compared with the xenon lamp; moreover since no bulb replacement is required it
helps cinemas to minimize their operating costs. As of the date when this Report is released the Company
has over 23000 laser cinema light sources installed throughout China.- In the field of large venue display market Appotronics’s large venue projector series covers the
range of 5000-60000 lumens hence suitable for outdoor lighting cultural and tourism lighting theme
exhibition halls corporate exhibition rooms theater performance 4D dining hall conference control rail
transit and other scenarios and has such advantages as no damage to the landscape convenient installation
and disassembly and the repeated use in different places.- In the field of business education the Company’s laser business education projector series covers
ultra short short and long throws and a range of 3300-6000 lumens hence broadly suitable for education
business display and other scenarios. The Company has developed a series of solutions for smart
classrooms and business display including laser smart all-in-one teaching device laser synchronous
classroom solution laser interconnected dual-board solution high-definition high-brightness conference
system etc.2.3 Laser cinema projection services
CINEAPPO a controlled subsidiary of the Company provides laser cinema projection services to
downstream cinema customers (“laser as a service”) and charges service fees according to the length of
use of light source by the cinemas (the fees are charged by the hour or a certain period of time) while the
cinemas do not need to purchase light source equipment thereby effectively easing their capital pressure
and reducing their labor and maintenance costs.3. Industry in which the Company operates
3.1 Development stage basic characteristics and main technical barriers of the industry
The laser display is emerging and in the early stage of rapid growth; the application of laser display
technology in household products is a wholly new creation with huge market potential.Currently picture display technologies are mostly implemented by using DLP 3LCD and LCOS
display chips as the picture modulator achieving greatly different actual display effects depending on the
light source. In 2007 the ALPD? technology created by Appotronics’s R&D team made a breakthrough
in the application of core devices and imaging solutions of laser display hence becoming the mainstream
technical route for the laser projector industry and widely used in movie TV business education and large
venue fields.In terms of core technologies certain companies in the industry may face the problems of lack of
R&D capability and core technology and reliance on supply chain for core patents and core devices
rendering them unable to compete with leading domestic or international companies that have their
proprietary IP or core technologies and core devices.In terms of specific applications the technical barriers for To C market are high efficiency small size
and low cost and the technical barriers for To B market are continuous upgrading of performance.3.2 Analysis of the position of the Company in the industry and changes therein
As a new generation of display technology the laser display technology has a wide range of market
applications by virtue of high brightness long life wide color gamut and energy saving and environmental
protection. In addition to being used in the traditional display field it can also be applied in other fields
such as aviation automotive and AR with an increasingly important position in the display field.At the beginning of the industrialization of laser display technology as one of the leading companies
in the field of laser display Appotronics has mastered core technologies. After multiple iterations the
ALPD? technology has gained relatively solid technical advantages in terms of performance cost
efficiency and size. The Company has not only created the fundamental key architecture for laser phosphor
display technology but also built a proprietary IP protection system through patent layout in China the
United States Japan Europe and other countries.According to the Research Report on Chinese Laser Projector Market 2020 issued by AVC blue laser
+ phosphor powder technology architecture represented by ALPD? is the mainstream light source
technical route for the laser display industry at present. On the principle of being open for cooperation and
striving for win-win development Appotronics has become a leading supplier of core devices in the laser
display industry based on its intellectual property rights and core devices hence driving the development
of the entire industry and ecology.II. Core technologies and progress in R&D of technologies
1. Core technologies and their advancement and changes during the reporting period
The Company has been committed in the breakthroughs innovations expansion of application
scenarios and industrialization of laser display technology and created technology reserves and patent
portfolios covering the whole technology chain of laser display from key system architecture core devices
to key algorithm. With the ALPD?4.0 technology matured and the ALPD? 5.0 and 6.0 technology under
development and trial operation at the same time the Company constantly maintains its leading
advantages compared with followers and competitors in the industry. As a Leader Level Member of the
Laser Illuminated Projector Association (LIPA) the Company has participated in and led the preparation
of the international laser display standard.The Company has poured substantial R&D resources in micro- & nano- optical structure technology
light source architecture complete equipment structure machine perception and the preparation and
processing of thin film materials. The big data algorithm and design solutions accumulated by the
Company over the years will enable it to rapidly develop 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.In terms of cutting-edge technologies the ALPD 5.0 technology will make use of the characteristics
of laser with reference to the creation of content to achieve high dynamic range display and improve visual
experience. The ALPD 6.0 is planned to make breakthrough in the existing display architecture to further
reduce the cost of laser display systems. ALPD?5.0 principle prototype has been successfully developed
and by now the Company is conducting further optimization. This technology has the prospect of entering
the stage of product development.2. R&D achievements during the reporting period
During the reporting period the Company made the following achievements in technology and
product innovation:
1. Core devices
During the reporting period the Company completed the development and mass production
introduction of a full range of products based on ALPD 4.0 including the laser cinema light source
platform covering 10000-50000 lumens and the compatible three-color two-color and monochromatic
laser TV light generator platform hence providing more abundant and more competitive solutions of core
devices for the cinema industry and the laser TV industry. Meanwhile in terms of smart mini projectors
the Company developed various laser mini projection light generators suitable for different product forms
and different performance parameters which greatly upgrade the brightness and energy efficiency while
improving color effects. During the reporting period the Company introduced many new customers
including Dangbei and provided them with core devices of the laser mini projection light generator.The Company made further breakthroughs and innovations in flexible laser display screen and
successfully developed three products: (1) ultra short throw diaphragms for speckle reduction used in
three-color laser projectors achieving speckle reduction contrast below 10% taking the lead in the
industry; (2) ultra short throw diaphragms with high contract with an opacity of more than 95% superior
to 85% of competitive products in the industry which can greatly reduce the effect of ambient light; (3)
high-gain direct projection anti-light screens with the smart mini projector achieving the 2.5x high-gain
factor and the ambient light obscuring rate of 80% which supports the projection effect of the projection
device to increase the brightness by 2.5 times and achieves a viewing angle close to 180 degrees as
compared to projecting on a white wall.2. Complete equipment
The Company developed high- medium- and low-end laser TV products to cater for different user
demands on the household market. Having the highest brightness of 4000 lumens covering the REC.709
DCI and REC.2020 color gamuts and with the maximum color gamut area of 158% NTSC its products
are at the highest level in the industry. During the reporting period Fengmi as the subsidiary launched a
new laser TV product Cinema 2 which has a 10% increase in screen brightness compared to the previous
generation has a 4K resolution and can project 80-150 inches of super-large screens.In the business field the Company newly developed S4 product with less than 10cm of a slim body
and a light weight of less than 9.2kg can produce 5000-6000 lumens of brightness and 4K resolution
and also present high-quality projection images in bright environment and project 300 inches of super-
large screen at largest. This product is cost-effective. Based on the compact modular body of S4 platform
and in conjunction with the one-button automatic stacking system this product can achieve more
brightness larger screen and more free application.As the first Chinese enterprise independently researching and developing 3DLP high-lumen large
venue projectors during the reporting period the Company launched the T series of high-brightness large
venue projectors adopting a high-efficiency liquid cooling system and 3DLP imaging technology to
achieve 33000 lumens of high brightness. At present this is the world’s smallest and lightest large venue
projector with the same brightness range. The multi-picture splicing and fusion system is embedded in it.In addition it has 120Hz refresh rate to support constant brightness mode can be configured with more
than 6 motorized lenses and support 360-degree installation easy to use.3. Software
During the reporting period the Company’s Feng OS system completed a total of 7 iterations
achieving an extremely fast boot in 6 seconds. Currently its 12 mass-produced household products are
equipped with this system and complete FDP dynamic engine upgrade. During the reporting period Feng
OS system completed the broadcast of large-scale programs such as the European Cup. At present its
penetration rate of paid members takes the lead in the industry and the Company has completed in-depth
processing of 20000 film and television works and 20000+ film and television characters in aggregate
providing strong support for improving effect of large-screen display.The Company implemented an omnidirectional automatic correction algorithm which is suitable for
a variety of models such as the projector Vogue Pro and adds intelligent auxiliary functions such as
automatic obstacle avoidance and screen alignment to the Vogue Pro model. The Feng OS system adds
machine recommendation algorithms to more pages making it easier for users to discover their
personalized preferences faster and more accurately.List of intellectual property rights acquired during the reporting period
Increase Total
Applications (pcs) Granted (pcs) Applications (pcs) Granted (pcs)
Patent for 79 82 1397 684
invention
Patent for utility 46 23 470 413
model
Patent for design 10 10 161 147
Software
6 12 100 99
copyright
Others 77 73 914 725
Total 218 200 3042 2068
Notes: 1. The “others” showed in the above table refers to the Company’s trademarks; 2. During the
reporting period the Company filed 38 PCT international patent applications totaling 193 valid PCT
international patent applications.3. R&D investments
Unit: Yuan
Current period Previous period Change (%)
R&D investments expensed 95128483.66 87295450.75 8.97
R&D investments capitalized 0.00 0.00 N/A
Total R&D investments 95128483.66 87295450.75 8.97
Proportion of R&D 8.61 12.19 -3.58 percentage
investments to operating points
income (%)
Proportion of R&D
0.00 0.00 N/A
investments capitalized (%)
Reason for the material change in the total R&D investments compared with last year
□ Applicable√ N/A
Reasons of the great change in the proportion of R&D investments capitalized and explanation
about the rationality thereof
□ Applicable√ N/A
4. R&D projects
√ Applicable□ N/A
Unit: Yuan
Investment in Progress or
Estimated total Aggregate Technological Application
No. Item the current interim Goals
investment investment level scenario
period results
Development of laser
phosphor display Through
The development
optical engine high- transformation of
of key laser
Key performance lab R&D results
display
Enterprise fluorescent materials develop multiple
technology and
Laboratory for Mass and fluorescent laser display
1 34000000.00 17641241.08 33682138.89 devices based on
Laser Display production components portable terminal products
laser phosphor
in Guangdong laser display and promote the
technology takes
Province technology and laser development of
the lead in the
display technology with the entire display
industry.high contrast and high industry chain.color reproduction.Use technical
advantage of
ALPD?4.0 to achieve
Some Take the lead in
the mass production of
products the industry; the
light generators and Upgrading of light
have cost
cinema light source source for small-
Light source completed effectiveness
with lower cost higher sized cinema
and light mass color gamut
2 65700000.00 14934483.41 14934483.41 color gamut and projectors laser
generator as production light effect and
brightness and smaller TV laser mini
core devices and new other
size. Research and projector and
products performance are
develop the next other fields.are being greatly
generation of ALPD?
updated improved.laser display
technology with high
brightness and high
dynamic range at the
same time.Some
products
have The proprietary
Research and develop a DCI-compliant
completed DCI-compliant
low-cost and DCI- small cinema
Laser cinema mass cinema projector
3 28140000.00 18633001.19 18633001.19 compliant laser cinema projector that
projector production in China that
projector that meets targets the high-
and new meets high-end
high-end home use. end home use.products home use.are being
updated
Some With a new generation
products of light generator
have technologies and the
completed independently
mass developed FengOS Take the lead in 4K household
4 Laser TV 74200000.00 26789778.55 26789778.55
production system and screen the industry. laser TV.and new achieve great
products improvement in cost
are being effectiveness color
updated gamut and ease of use.Some
products
have
completed Provide high-
High-
mass performance and cost- Take the lead in Household mini
5 performance 50910000.00 4269920.88 4269920.88
production effective laser mini the industry. projector market.mini projector
and new projector
products
are being
updated
Other Some The automatic stacking
Take the lead in High-end large
6 complete 48250000.00 7536415.62 7536415.62 products scheme renders the
the industry. venue business
equipment have linear superposition of
(large venue + completed brightness and cost to education and
business mass achieve a leading other fields.education) production technical advantage and
and new cost-effective
products advantage on the
are being market when the
updated product is applied to
high-lumen use scenes.Some
products
have
Reduce costs and Take the lead in With existing
completed
improve performance the industry display products
mass
7 Screen 11980000.00 1460440.44 1460440.44 on the basis of the first superior to the it can be applied
production
flexible Fresnel anti- products in the in a variety of
and new
light screen Fabulus. field. scenarios.products
are being
updated
This project will
research the
This project will
industrialization of the
greatly promote
technology of RGB
the industrial This project will
trichromatic laser with
Trichromatic upgrading of establish a
phosphor to satisfy the
Laser Display trichromatic laser complete
market demands for
Complete display equipment
RGB trichromatic laser
8 Equipment 102840000.00 3863202.49 28398309.83 Pilot test technology and production
display build a mass
Production gain international demonstration
production line for
Demonstration competitive edge line of
trichromatic laser
Line for proprietary trichromatic laser
display complete
trichromatic laser display.equipment acquire
display
proprietary IP and
technology.realize large-scale
application of
trichromatic laser
display products.Total / / / /
416020000.00 95128483.66 135704488.81 /
5. R&D staff
Unit: 0’000 Currency: RMB
Basic information
Current period Previous period
Number of R&D staff (persons) 391 336
Proportion of R&D staff to total employees of 30.52 30.05
the Company (%)
Total compensation of R&D staff 6049.49 5491.73
Average compensation of R&D staff 15.47 16.34
Education
Academic background Number Percentage (%)
Doctor 15 3.84
Master 91 23.27
Undergraduate 234 59.85
College or below 51 13.04
Total 391 100.00
Age structure
Age Number Percentage (%)
30 years of age or below 164 41.95
30-40 years of age 185 47.31
40 years of age or above 42 10.74
Total 391 100.00
Note: The average compensation of R&D staff shown in the table above was the average compensation
for the first half of 2021 and 2020 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. Advantage in proprietary technologies
Since the Company invented the ALPD? technology the fundamental key technology architecture
has been gradually formed and improved. On the basis of this technology the Company has established
rich product lines and developed high-performance high-quality and cost-effective laser display
projection products in traditional fields such as film television business education and large venue while
further expanding innovative fields such as aviation automotive and smart home. The ALPD?
technology has become the mainstream technical route for laser display. By relying on fundamental
research and original innovation rather than consumption of resources the Company has realized rapid
development continuously improved the performance and cost-performance ratio of its products and
maintained the competitive advantages in the industry.2. Sound IP protection system
With core patents of the Company covering laser phosphor display technologies the Company has
gradually built up a patent system containing the largest number of patents covering the widest scope with
the highest quality in the industry. This patent system safeguards its fundamental research and original
innovation. With key core patents at the center the Company has built a united whole patent system and
is hard to be fully simulated or directly bypassed by the competitors.3. Advantage in layout in the whole industry chain
The Company has a layout of the entire laser display industry chain and keeps extending application
scenarios. The solutions ranging from the development and manufacturing of independently developed
core devices and complete equipment to laser display lead the growth of laser display field. In terms of
core devices the Company has developed cinema light source large venue light source laser light
projector and flexible laser display screen etc.; for complete equipment the Company offers the main
products including laser cinema projector large venue laser projector laser education projector laser TV
and smart mini projector etc. The solutions provided by the Company are widely used in cinemas cultural
tourism security education business homes consumer electronics and other fields; laser display
technology is the mainstream new display technology with a huge future development space. The
Company has advanced layout in multiple innovation fields and has a broad market application space
laying a solid foundation for its future growth.4. Advantage in product performance
Through more than ten years of R&D efforts the Company’s technical advantages have been given
full play in cinema household large venue and other fields. Its products show superior performance in
brightness service life color gamut removal of speckle and other aspects. Through sufficient validation
at R&D and quality labs and on-site use for a long time the Company’s product models have become
mature. Since its installation in June 2014 the first set of ALPD? cinema light source has been stably
operating for over seven years. The Company’s products in other fields have also won trust on the market
with their outstanding performance and reliable quality.5. Advantage in talents and teams
The Company’s founder and Chairman Dr. LI Yi is a well-known expert in the field of laser display
and also the R&D leader and key technician of the Company. In addition the Company has a group of
high-quality R&D talents including a lot of doctors and masters graduated from famous domestic and
foreign universities. The Company’s R&D team has taken the lead in the research of laser display
technology in the industry. The Company is able to precisely catch the development trend of the display
industry and continuously release new laser display products with prominent prospects in response to
market demands.(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 situations
(I) Analysis of the overall business situation during the reporting period
After the pandemic the film large venue projection and business education projection markets are
gradually recovering and the household business segment is growing rapidly. Driven by the market
technology environment demand and other factors the new display industry such as laser display
embraces new development opportunities.During the reporting period the Company seized market opportunities and deepened adjustments to
its business structure further promoted TO C business and explored a new growth curve; meanwhile the
domestic film market continued to pick up and recovered to 90% compared to the corresponding period
in 2019. Benefiting from the good performance of the film market the Company’s cinema business
achieved recovery growth contributing a stable cash flow and net profit to the performance of the first
half of the year; in addition with the gradual control of the pandemic and being supported by a series of
stable investment and growth policies the large venue and business education markets are gradually
recovering. The Company has obvious competitive advantages in terms of large venue and business
education and obtains outstanding performance in the first half of the year. For core devices the Company
has further expanded its leading advantage in the supply of core devices in the laser display industry by
virtue of cost-effective and high-performance core device products. During the reporting period the
Company established cooperation with Dangbei Hewlett-Packard Hisense Changhong etc. to provide
them with core device products such as laser light source light projector and screen.During the reporting period the operating income of the Company was RMB 1.105 billion up by
54.28% year on year; the net profit attributable to the Parent Company was RMB 151 million up by
956.81% year on year. Wherein the operating income of TO C business was RMB 541 million accounting
for 48.99% of total revenue; TO B business was outstanding with the laser cinema projection service
laser cinema projector large venue and business education up by 576.76% 120.09% 154.14% and 51.09%
year on year respectively.Unit: 0’000 Currency: RMB
Main business by sector
Gross % Change in
Operating Operating % Change in % Change in
Sector margin operating
income cost operating cost gross margin
(%) income
+8.49
Laser display 110468.92 72361.23 34.50 54.28 36.59 percentage
points
Main business by product
Year-on-year Year-on-year Year-on-
Gross increase or increase or year increase
Operating Operating
Product margin decrease of decrease of or decrease
income cost
(%) operating operating cost of gross
income (%) (%) margin (%)
-1.23
1. Sales 91163.98 65553.48 28.09 32.67 34.98 percentage
points
-4.63
(1) Laser optical
10289.48 4324.43 57.97 -17.66 -7.47 percentage
engine
points
+4.83
(2) Complete laser
76040.62 56975.74 25.07 44.09 35.37 percentage
projector
points
+8.48
Laser cinema
2855.71 1421.36 50.23 120.09 88.04 percentage
projector
points
+1.93
Laser TV 26060.37 18430.82 29.28 28.21 24.80 percentage
points
+5.07
Laser business
10737.15 7357.36 31.48 51.09 40.68 percentage
education projector
points
+3.95
Laser large venue
8330.56 3921.79 52.92 154.14 134.44 percentage
projector
points
+2.57
Smart mini
28056.83 25844.41 7.89 35.11 31.43 percentage
projector
points
-35.68
(3) Other products 4833.88 4253.31 12.01 40.23 135.87 percentage
points
+120.43
2. Projection
18565.59 6437.12 65.33 576.76 51.29 percentage
service business
points
+60.57
3. Other business 739.35 370.63 49.87 420.74 135.81 percentage
points
+8.49
Total 110468.92 72361.23 34.50 54.28 36.59 percentage
points
The Company completed the following main tasks during the reporting period:
1. Deepen the adjustment of business structure and continue to develop TO C business
During the reporting period the Company’s TO C business continued to implement the dual-driver
strategy of “hardware + software”. In terms of hardware the Company focuses on developing its own C-
end brand by relying on its core technology advantages in the laser display field and the subsidiary Fengmi
keeps launching new C-end products and increasing the sales. In May 2021 the laser TV C2 was launched
on Xiaomi YouPin a crowdfunding platform with the amount exceeding RMB 10.32 million and became
the first popular product with the crowdfunding amount exceeding RMB 10 million among the digital 3C
category in YouPin in 2021. In 618 Shopping Festival Fengmi’s overall sales exceeded RMB 100 million
up by 106% year on year and won the double champion of online sales and sales volume of 618 laser TV
on JD.com Tmall and Xiaomi YouPin platforms for four consecutive years. Also Fengmi actively expands
offline channels. The first offline experience store opened in Chongqing in May to create a closer product
experience and improve the offline distribution network. In addition the Company plans to launch new
laser smart mini projectors within the year to further enhance its market competitiveness in TO C business
and continues to improve profitability.Regarding software in the context of large-screen ecology Feng OS system maintains a fast iterative
space providing end users with smart services and more convenient and comfortable large-screen human-
computer interaction experiences. During the reporting period the number of domestic users of Feng OS
system kept increasing and the penetration rate of paid members took the lead in the industry.What’s more Fengmi successfully completed round A financing and was based in Chongqing. In
future Fengmi will simultaneously construct R&D centers data centers transformation centers of
scientific and technological achievements laboratories and other supporting service facilities in
Chongqing deploy R&D design and manufacturing in the field of smart projection and increase new
product R&D and market investment integrate superior resources and expand existing product categories
and application fields.2. Cinema business recovered well and the large venue and business education grew rapidly
During the reporting period the Company launched cost-effective cinema light source products and
steadily promoted the penetration of cinema light source projection service business to more cinemas. As
of the disclosure date of this report Appotronics has over 23000 ALPD? laser projectors installed
throughout China an increase of 3000 sets compared to the beginning of the period and the authorized
timed broadcasting exceeded 168 million hours taking the absolute leading position on the market.Meanwhile the Company cooperated with UME Cinema to launch the first ALPD? laser
highlighting theater in China. As an upgraded version of ALPD? version the projection brightness is 180%
higher than that of ordinary movies. At the end of the reporting period CINEAPPO the controlled
subsidiary of the Company has established 268 ALPD? highlighting theaters throughout China.Meanwhile CINEAPPO has jointly worked with producers to successively develop “Secret Visitor” “Onthe Cliff” “Chinese Doctors” and other laser highlighting films improving the additional commercialvalue of laser film projection services and creating stronger market competitiveness.In the field of large venue the Company provided the projection solutions for many cultural tourism
projects including “Mr. Big” light show for the 110th anniversary of Tsinghua University “JiamengChunqiu” in Guangyuan Sichuan and “Strange Life Travel” in Beijing 798 Art District. The Companyalso promoted the implementation of the first domestic Chinese outstanding cultural immersive digital
experience center i.e. “Liaocang” project in Beijing. The Company lighted up the stage of the theatrical
performance “Great Journey” for the centenary of the founding of the CPC by providing ALPD? laser
light source. At the end of the reporting period the Company’s large venue business achieved a year-on-
year increase of 154.14%.In the field of business education the Company further developed many cost-effective and
competitive products. During the reporting period the Company expanded many higher education projects
covering core universities in multiple regions and reserved higher education projects including Project
985 and 211. The revenue of higher education business increased by approx. 200% compared with last
year. Meanwhile the Company actively advanced the development of the business office market paid
attention to application scenarios such as emerging industries script killing and immersive restaurants
and expanded new business increments.3. Speed up overseas layout and create synergy
Although the overseas pandemic prevention and control is still severe the Company still actively
improved its overseas layout and expanded overseas markets during the reporting period.With the continuous implementation of the EU’s relevant mercury restriction regulations the mercury
light projection stock market is shrinking and the demand for the laser projection in business education
market is increasing. During the reporting period the Company focused on expanding overseas customers
including Russia and Turkey and the revenue from the overseas business education increased by over 400%
from the previous year. As the next step the Company will continue to focus on the overseas business
education market and explore market opportunities in Europe the Middle East and other regions.Further in the first half of the year the sales of Company’s overseas large venue projector light source
returned to the pre-COVID 19 level basically and the Company also actively engaged with major overseas
cinema customers followed up the reform of cinema light source and promoted the penetration of the
cinema laser projection service model on the overseas markets.4. Achieve significant results in terms of intellectual property operations and phased progress
in the case involving Delta
Regarding R&D results during the reporting period the Company was granted 115 new patents
including 82 patents for invention 23 patents for utility model and 10 patents for design; the Company
filed 38 new PCT international patent applications totaling 193 valid PCT international patent applications.At the end of the reporting period the Company applied for and was granted 2221 patents in total
worldwide.On the principle of cooperation in good faith and win-win development and based on its intellectual
property rights and core devices the Company is exploring the mode of patent operation to establish and
gradually improve the ecology of the laser display industry chain. During the reporting period the
Company actively promoted cooperation with the leading downstream customers in the industry and
achieved certain results in the sales of core devices from the intellectual property operations.During the reporting period significant progress was made in the case on the intellectual property
litigation between the Company and Delta. For the STAR Market Patent No. 1 Case ( (2019) Yue 73 Zhi
Min Chu No. 664) the judgment of the first instance was delivered in which the defense of non-
infringement of Appotronics was established and all claims made by Delta were dismissed by the court
of the first instance; Delta withdrew its case in the second instance and the Supreme People's Court issued
a final ruling allowing Delta to withdraw the lawsuit.(II) Completion of other key tasks during the reporting period
During the reporting period the Company achieved favorable results in innovative scenario
applications talent team building and investor relationship management:
1. Establish an innovation center and explore innovative scenario applications
During the reporting period the Company established an innovation center and extended the
innovative application research and development to multiple fields. In May 2021 the Company and ACIC
reached a strategic partnership. The two parties will explore possibilities of various aviation applications
based on laser light source technology and laser display solutions. Application scenarios include
commercial fixed-wing aircraft and helicopters. Meanwhile the Company actively deployed in-vehicle
laser display smart home and other application fields.2. Launch a new phase of equity incentives and strengthen the building of talents
In order to further establish and improve the Company’s long-term incentive mechanism strengthen
the building of talents and fully mobilize the enthusiasm of the Company’s core team the Company
developed a new phase of equity incentive plan during the reporting period under which 18.5 million
restricted shares were issued representing 4.09% of the share capital of the Company; such shares were
first granted to the Company’s business backbone totaling 220 persons accounting for 17% of the total
employees of the Company.3. Systematize capital market communication and establish a good image of the capital market
During the reporting period the Company improved the talent building of investor relations and
established a dedicated capital market communication mechanism for which a designated person takes
special duties in order to build a two-way communication bridge between the Company and the capital
market through multi-channel and multi-level communication. As of the disclosure date of this report the
securities companies have published several in-depth research reports on the Company and completed
more than a hundred investor exchange activities covering thousands of people. The investor relations
team aims to serve shareholders and tap potential investors significantly increasing the Company’s
activity in the capital market and establishing a good image in the capital market.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. Risk related to the supply of important raw materials
Affected by the tight industry supply chain the core suppliers are unable to supply components in a
timely manner with both quality and quantity guaranteed resulting in a slowdown in the growth of the
Company’s TO C business and delay in the shipment progress of some core devices or complete equipment
products hence the operating performance growth rate of the Company would fail to meet the expectation.2. Risk of impairment of inventories
During the reporting period the Company implemented strategic stocking as affected by the tight
industry supply chain to be specific reserving raw materials in advance. At the end of the reporting period
the carrying amount of the Company’s inventories was RMB 641.5780 million accounting for 17.57% of
total assets of the Company. If the future sales do not meet expectation or market trends change the
recoverable amount of the inventories will be lower than their carrying amount. The impairment of
inventories will have a negative effect on our earnings.3. Risk of loss on external investments
The Company established or invested in subsidiaries or participating companies in other countries
and regions. There may exist the following risks: first the policy culture and law environments and other
factors of the country where an overseas company is incorporated would increase the management risk of
the Company’s overseas subsidiaries; second if the operating performance of the investee decreases
sharply because the technological level or market expansion of the investee falls short of the Company’s
expectation or the investee poorly operates or manages the Company needs to recognize an impairment
loss on the long-term equity investment which will adversely affect the Company’s operating performance;
third if the Company fails to achieve a synergy effect through acquisition of the investee the Company’s
strategic plan may be unable to be implemented as scheduled.4. Risk of COVID-19
As continuously affected by the pandemic the Company failed to expand its overseas business as
scheduled and overseas customers also slowed down in product delivery and acceptance; the Company’s
cinema projection service business was also affected to a certain extent due to the closure of a small
number of theaters and the delay of film schedules as part of domestic anti-epidemic control measures.However if the prevention and control of the epidemic on the world remain grim this would increase the
uncertainty in the production and operation of the Company.VI. Main business activities during the reporting period
Please 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 Amount of the prior
Current period % Change
period
Operating income 1104689243.59 716025207.34 54.28
Operating costs 723612305.19 529787789.94 36.59
Sales expenses 89686195.83 50833894.50 76.43
Administrative expenses 83960516.92 77813657.09 7.90
Financial expenses 1532019.30 8037691.04 -80.94
R&D expenses 95128483.66 87295450.75 8.97
Net cash flows from operating
170659313.90 63006061.80 170.86
activities
Net cash flows from investment
-365535026.25 -92315802.97 N/A
activities
Net cash flows from financing
75588344.51 -115291912.69 N/A
activities
Description of reasons for changes in the operating income: The operating income increased by 54.28%
year on year primarily due to the rapid growth of the household business revenue and the basic recovery
of cinema business revenue.Description of reasons for changes in operating costs: The operating costs increased by 36.59% year on
year primarily due to the increase in the operating income.Description of reasons for changes in the sales expenses: The sales expenses increased by 76.43% year on
year primarily due to the increase in marketing expenses caused by the Company’s furthered promotion
and the increase in employee salaries caused by the rise in sales personnel in the current period.Description of reasons for changes in the financial expenses: The financial expenses decreased by 80.94%
year on year primarily due to the improvement in operating cash flow drop in capital cost and rise in
interest income in the current period.Description of reasons for changes in the R&D expenses: The R&D expenses increased by 8.97% year on
year primarily due to the rise in the salaries of R&D employees and services fees in the current period.Description of reasons for changes in the net cash flows from operating activities: primarily due to the
increase in the operating income and receipts in the current period.Description of reasons for changes in the net cash flows from investment activities: primarily due to the
increase in the net purchase amount of wealth management products and payment of remaining equity.Description of reasons for changes in the net cash flows from financing activities: primarily due to the
receipt of strategic investment funds by Chongqing Fengmi as the subsidiary in the current period.2 Detailed description of major changes in the business type profit composition or profit sources
of the Company in the current period
□ Applicable√ N/A
(II) Explanation about material changes in profit due to non-main business
√ Applicable□ N/A
During the reporting period the year-on-year increase of RMB 39.8920 million in non-recurring
profit or loss was primarily due to the increase by RMB 41.9565 million in the government grants
recognized in the profit or loss for the current period and recognition of the performance compensation
amounting to RMB 38.1759 million of the participating company.(III) Analysis of assets and liabilities
√ Applicable□ N/A
1. Status of assets and liabilities
Unit: Yuan
% of
% of total
total assets
Balance at the
Balance at the end assets at at the %
Item end of the prior Explanation
of the period the end end of Change
period
of the the
period prior
period
Held-for- 457982988.00 12.54 114000000.00 3.53 301.74 Primarily due to
trading the purchase of
financial wealth
assets management
products by the
Company with
idle offering
proceeds and
recognition of
the
performance
compensation
for external
investment
Receivables 168553862.09 4.62 341660832.43 10.59 -50.67 Primarily due to
recovery of
opening
receivables
during this
period
Receivables 1214306.00 0.03 11959000.00 0.37 -89.85 Primarily due to
financing the receipt in
the current
period of
bank’s
acceptance bills
at the end of the
prior period
Prepayment 83781122.54 2.29 47447601.43 1.47 76.58 Primarily due to
s the increase in
prepayments to
some suppliers
for stocking
demand in the
current period.Inventories 641578029.45 17.57 418812140.80 12.98 53.19 Primarily due to
the increase in
raw materials
for stocking
demand during
this period
Contract 2388492.32 0.07 3744655.50 0.12 -36.22 Primarily due to
assets receipt of
contract assets
during this
period
Other 49693022.76 1.36 13002195.46 0.40 282.19 Primarily due to
current the increase in
assets the input VAT
to be deducted
during this
period
Constructio 88984744.00 2.44 51576850.72 1.60 72.53 Primarily due to
n in progress the increase in
the construction
of the
headquarters
building
Use right 36066334.54 0.99 N/A Primarily due to
assets first
implementation
of new lease
standard
Other non- 15891524.06 0.44 6299781.06 0.20 152.26 Primarily due to
current the increase in
assets prepayments
for long-term
assets
Short-term 28097875.42 0.77 88778852.86 2.75 -68.35 Primarily due to
borrowings repayment of
short-term
borrowings
during this
period
Notes 180257484.74 4.94 116822674.67 3.62 54.30 Primarily due to
payable the increase in
payment by
bank’s
acceptance bills
for
procurement
during this
period
Taxes 43934753.55 1.20 19871846.94 0.62 121.09 Primarily due to
payable the increase in
provision for
enterprise
income tax
during this
period
Other 255483098.01 7.00 59848053.83 1.86 326.89 Primarily due to
payables the increase in
the equity
repurchase
payments
payable of
Chongqing
Fengmi during
this period
Long-term 102690487.26 2.81 64845281.53 2.01 58.36 Primarily due to
borrowings the new
increase in
long-term
borrowings of
the subsidiaries
during this
period
Leasing 18391443.49 0.50 N/A Primarily due to
liabilities first
implementation
of new lease
standard by the
Company
Other information
None
2. Overseas assets
√ Applicable□ N/A
(1) Asset size
Including: Overseas assets of 388409538.98 (Unit: Yuan Currency: RMB) accounting for 10.64% of
total assets.
(2) Descriptions of overseas assets
□ Applicable√ N/A
3. Encumbrances on major assets as of the end of the reporting period
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Amount Reason
Bank deposits 40000000.00 Term deposits
Other monetary funds 20292090.37 Security deposit for notes and
letters of credit
Intangible assets 297566999.88 Land use rights used to be as
the loan mortgage
4. Other information
□ Applicable√ N/A
(IV) Analysis of investments
1. Overall analysis of external equity investments
√ Applicable□ N/A
At the end of the reporting period the Company holds the long-term equity investment of RMB
265.9005 million RMB 3.1557 million more than the opening amount which is primarily due to the
increase in the investment return of the investee changes in other comprehensive income and exchange
rate changes.
(1) Material equity investments
□ Applicable√ N/A
(2) Material non-equity investments
□ Applicable√ N/A
(3) Financial assets at fair value
√ Applicable□ N/A
As of June 30 2021 the balance of held-for-trading financial assets of the Company was RMB
457982988.00 including RMB 420000000.00 of structured deposits and RMB 37982988.00 of
performance compensation of the participating company;
The balance of investment in other equity instruments was RMB 11975419.38 which is investment
in two investee companies with zero change in the fair value during the reporting period;
The receivables financing was RMB 1214306.00 which is bank’s acceptance bills.(V) Sale of material assets and equities
□ Applicable√ N/A
(VI) Analysis of major investees
√ Applicable□ N/A
Unit: 0’000 Currency: RMB
Main Registere Shareholdin Total Net Operatin Net
Company
business d capital g percentage assets assets g income profit
Provision
of cinema
laser light
source
93873.4 41077.1 24400.6 5901.2
CINEAPPO projection 10000.00 63.20%
2 2 7 5
service
and sales
of
projectors
R&D and
sale of
Chongqing 79894.8 53121.6 1276.1
househol 7017.54 39.19% -10062.30
Fengmi 7 9 4
d display
products
R&D and
Appotronic sale of 37772.9 35099.1 3144.5
30116.15 100.00% 2180.96
s HK laser light 6 1 0
source
Other information:
None
(VII) Structured entities controlled by the Company
□ Applicable√ N/A
VII. Other disclosures
√ Applicable□ N/A
Considering that the participating company GDC BVI failed to meet the 2020 performance
commitment goal the Company communicated with GDC Cayman with respect to performance
compensation. Through multiple negotiations the two parties reached an agreement on the 2020
performance compensation and signed a settlement agreement and relevant documents on this
performance compensation plan. Please refer to the Announcement No. 2021-005 issued by the Company
on www.sse.com.cn and the designated media for information disclosure on July 16 2021.2020 Performance Compensation Plan provides that GDC Cayman shall transfer 8% of ordinary
shares held by it in GDC BVI (i.e. 20682627 shares) to Appotronics HK as the time when the settlement
agreement is signed. GDC Cayman shall pay Appotronics HK RMB 1.2 million in cash as the
compensation within 12 months from the date of signing the settlement agreement.The said 2020 Performance Compensation Plan has been reviewed and approved by the general
meeting of shareholders. The performance compensation agreement concluded by the two parties is an
adjusting event after the balance sheet date. On June 30 2021 the Company recognized the performance
compensation as the held-for-trading financial assets in an amount of RMB 37.9830 million while
recording gains or losses from changes in fair values in an amount of RMB 38.1759 million (the difference
between the two is the effect of translation exchange rate of the statements).Section IV Corporate Governance
I. General meetings of shareholders held
Reference to
Date of
resolutions
Session Date of meeting disclosure of Resolutions
published on the
resolutions
designated website
All proposals
1st extraordinary submitted to the
general meeting of February 25 February 26 general meeting
www.sse.com.cn
shareholders in 2021 2021 have been
2021 reviewed and
passed.All proposals
2nd extraordinary submitted to the
general meeting of general meeting
April 12 2021 www.sse.com.cn Arpil 13 2021
shareholders in have been
2021 reviewed and
passed.All proposals
Annual general submitted to the
meeting of general meeting
May 14 2021 www.sse.com.cn May 15 2021
shareholders in have been
2020 reviewed and
passed.Extraordinary general meeting of shareholders requested by the preferred shareholder 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 and 2 extraordinary general
meetings in total. After being certified by Beijing JunHe (Shenzhen) Law Firm engaged by the Company
the convening and holding procedures of general meetings of shareholders comply with the relevant laws
and regulations as well as the provisions of the Articles of Association. The qualifications of the persons
attending the meeting and conveners are legal and valid and voting procedures and results of general
meetings of shareholders are legal and valid. All proposals submitted to the general meetings by the Board
of Directors have been reviewed and passed.II. Changes in directors supervisors senior officers and key technical staff
□ Applicable√ N/A
Changes in directors supervisors senior officers and key technical staff
√ Applicable□ N/A
1. Considering that the members of the 1st Board of Directors and Board of Supervisors of the
Company expire in July 2021 the Company elected members of Board of Directors and Board of
Supervisors. On July 15 2021 the Company held the 32nd meeting of the 1st Board of Directors and the
19th meeting of the 1st Board of Supervisors electing six persons including LI Yi BO Lianming ZHANG
Wei NING Xiangdong TANG Guliang and CHEN Youchun as the candidates of the 2nd Board of
Directors and two persons including GAO Lijing and SUN Hongdeng as the candidates of members of
the Company’s Second Board of Supervisors who are not representatives of the staff and workers. On
August 3 2021 the Company held the 3rd extraordinary general meeting of shareholders in 2021
reviewing and approving the said proposal.2. The Company held the conference of the representatives of the staff and workers on July 15 2021
electing Ms. WANG Yingxia as the director of the Second Board of Directors who is the representative
of the staff and workers and Ms. WANG Yanyun as the supervisor of the Second Board of Supervisors
who is the representative of the staff and workers. The said director and supervisor together with the
directors and supervisors elected by the 3rd extraordinary general meeting of shareholders in 2021 of the
Company respectively form the Second Board of Directors and the Second Board of Supervisors of the
Company. Their respective term of office shall be three years from the date of review and approval by the
general meeting of shareholders.3. On August 3 2021 the Company held the 1st meeting of the Second Board of Directors electing
Mr. LI Yi as the Chairman of the Second Board of Directors and engaging Mr. BO Lianming as the
general manager of the Company Ms. WANG Yingxia as the CFO of the Company and Ms. YAN Li as
the secretary of the Board of Directors of the Company. On the same day the Company held the 1st
meeting of the Second Board of Supervisors electing Ms. GAO Lijing as the Chairman of the Second
Board of Supervisors.4. During the reporting period the Company’s key technical staff included LI Yi HU Fei YU Xin
WANG Lin GUO Zuqiang and WU Xiliang. On August 23 2021 after reassessment the Company’s key
technical staff include LI Yi HU Fei YU Xin WANG Lin WANG Zeqin and GUO Zuqiang.Description of determination of key technical staff of the Company
√ Applicable□ N/A
After taking into account technology R&D obtainment of patent for invention and other factors the
Company optimized and adjusted the specific determination standards of key technical staff as follows in
order to standardize and improve the building of the Company’s R&D system:
(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;
(3) obtain several patents in the capacity as inventor or designer and make outstanding contributions
to the core technologies of the Company; and/or
(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 and capitalization of the capital reserve
Profit distribution proposal or proposal for capitalization of capital reserve during the reporting
period
Whether to implement profit distribution or No
capitalization of 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 on ordinary shares and capitalization of the capital
reserve
/
IV. Share incentive plan employee stock ownership plan and 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
Please refer to the relevant
On March 26 2021 the Company held the 30th meeting of the 1st
announcement issued by the
Board of Directors and the 17th meeting of the 1st Board of
Company on www.sse.com.cn
Supervisors which reviewed and approved the Proposal on the
and the designated media for
2021 Restricted Share Incentive Plan (Draft) of the Company and
information disclosure on March
Summary of the Plan and other related proposals.27 2021.Please refer to the relevant
On April 12 2021 the Company held the 2nd extraordinary
announcement issued by the
general meeting of shareholders in 2021 which reviewed and
Company on www.sse.com.cn
approved the Proposal on the 2021 Restricted Share Incentive Plan
and the designated media for
(Draft) of the Company and Summary of the Plan and other related
information disclosure on April
proposals.13 2021.On April 22 2021 the Company held the 31th meeting of the 1st
Board of Directors and the 18th meeting of the 1st Board of
Supervisors which reviewed and approved the Proposal on the
Adjustment of the 2021 Restricted Share Incentive Plan and the Please refer to the relevant
Proposal on Initial Grant of Restricted Shares to Grantees pursuant announcement issued by the
to which the Company initially granted 17.1 million shares to 220 Company on www.sse.com.cn
grantees at the price of RMB 21.00 per share (for special grantees) and the designated media for
RMB 17.5 per share (for Type I grantees) and RMB 18.5 per share information disclosure on April
(for Type II grantees) on April 22 2021. The Company’s 24 2021.independent directors expressed their independent opinions on
such proposals and the Board of Supervisors expressed its opinion
after review of such 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
□ Applicable√ N/A
Section V Environment and Social Responsibilities
I. Environment
(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
The Company has not been identified as a major polluter during the reporting period. The Company
attaches importance to environmental protection and has taken measures the details of which are seen in
“I. Environment” - “(V) Measures taken to reduce carbon emissions during the reporting period and theireffect” in “Section V Environment and Social Responsibilities”.3. Reason for failure to disclose 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
(V) Measures taken to reduce carbon emissions during the reporting period and their effect
√ Applicable□ N/A
1. In the production process the Company keeps improving “energy saving and emission reduction”.To be specific the Company independently researches develops and implements waste water recycling
and reuse systems implements special energy-saving measures for central air-conditioning systems air
compressors UV purifier systems aging products and product equipment so as to minimize the energy
consumption and impact on the environment. During the reporting period the Company’s key
environmental indicators all met standards. The average water consumption per unit of production
equipment decreased by 38.46% year on year and electricity consumption per unit decreased by 10.01%
year on year.Key environmental indicators for the first half of 2021
Meet the
No. Item Goal Actual relevant
standard or not
1 Litigation filed by outsiders 0 0 Yes
Average electricity not more than 26
2 24.53 kwhs Yes
consumption per unit kwhs
Average water consumption not more than 0.1
3 0.08 tons Yes
per unit tons
Total hazardous waste not more than 3.3
4 2.33 tons Yes
discharges tons
Rate of passing the review
5 by the environmental 100% 100% Yes
protection system
2. The Company has not been identified as a major polluter during the reporting period. The Company
attaches importance to environmental protection and has taken the following environmental protection
measures to fulfill its social responsibility:
Disposal of solid wastes
The Company’s solid wastes include consumer wastes general industrial solid wastes and hazardous
wastes. The consumer wastes are collected and then handed over to the environmental sanitation entity for
centralized treatment. The general industrial solid wastes mainly consist of leadless waste scruff and waste
packing materials generated in the production process which are collected by category and then handed
over to the relevant resource recycling entities for recycling. The hazardous wastes mainly consist of waste
active carbon generated in the waste gas treatment process and wastes containing industrial alcohol and
waste packing materials containing cleaning agents that are generated in the production process which
are collected and then handed over to the qualified entities for treatment.Sewage treatment
The Company’s sewage includes domestic sewage and industrial sewage. The domestic sewage is
pre-treated through septic tank or otherwise and after meeting the relevant standard discharged to the
municipal sewage treatment pipelines and sewage treatment plant. The industrial sewage is handed over
to the qualified entities for treatment. In addition the Company has optimized the technologies currently
used to reduce the sewage discharged. The Company appoints a third party to inspect its domestic sewage
every year.Waste gas treatment
The Company’s waste gas mainly includes waste gas containing tin and organic waste gas generated
in the production process. The Company has built a waste gas treatment system comprising UV photolysis
active carbon adsorption plant air purification equipment and other equipment. After the treatment the
concentration of tin and NmHc in the waste gas discharged by the Company to the air meets the local
standard for Atmospheric Pollutant Emission Limit. In addition the Company appoints a third party to
conduct the relevant inspections every year.Certifications relating to environmental protection
The Company passed ISO14001 environmental management system certification in 2008 and
continues to conduct the certification. In 2019 the Company passed QC080000 hazardous substance
process management system certification. All of the Company’s products are green products and have
passed RoHS REACH and China environmental labeling product certification among others.II. Information on consolidation and expansion of the results of poverty alleviation rural
revitalization and other specific work
√ Applicable□ N/A
To actively respond to the national policy of “culture-to-the countryside activity” and support the
rural film projections the Company develops two models of laser light source cinema projection
equipment which can realize mobile movie screening or fixed screening in vast rural areas and helps the
revitalization of rural culture using advanced laser display technology.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
time
Validity covenant fulfill the failing to
Background Covenant Covenant limit for
Covenantor period of has been covenant fulfill
of covenant Type Content the
covenant strictly on time (if the
fulfillme
fulfilled applicable covenant
nt of the
on time ) on time
covenant
Covenant by
the controlling
shareholder
regarding
restriction on
36 months
the sale of
after
shares held by
completion
Covenant Restriction him voluntary Refer to
of the IPO
relating to on the sale lock-up of such IPO Yes Yes N/A N/A
and the
IPO of shares shares Prospectus
specific
extension of
extended
lock-up period
period
intention to
hold and
dispose of
shares and other
issues
Covenant by
the actual 36 months
controller after
regarding completion
restriction on of the IPO
the sale of and the
shares held by specific
Covenant Restriction him voluntary Refer to extended
relating to on the sale lock-up of such IPO period and Yes Yes N/A N/A
IPO of shares shares Prospectus 6 months
extension of after
lock-up period termination
intention to of
hold and employmen
dispose of t with the
shares and other Company
issues
Covenant by 36 months
the concert after
Covenant Restriction Refer to
parties of the completion
relating to on the sale IPO Yes Yes N/A N/A
actual of the IPO
IPO of shares Prospectus
controller and the
regarding specific
restriction on extended
the sale of period
shares held by
them voluntary
lock-up of such
shares
extension of
lock-up period
intention to
hold and
dispose of
shares and other
issues
Covenant by
the directors
regarding
restriction on
the sale of 12 months
shares held by after
them voluntary completion
Covenant Restriction Refer to
lock-up of such of the IPO
relating to on the sale IPO Yes Yes N/A N/A
shares and the
IPO of shares Prospectus
extension of specific
lock-up period extended
intention to period
hold and
dispose of
shares and other
issues
Covenant by
the supervisors
regarding
restriction on
the sale of
shares held by
them voluntary 12 months
Covenant Restriction Refer to
lock-up of such after
relating to on the sale IPO Yes Yes N/A N/A
shares completion
IPO of shares Prospectus
extension of of the IPO
lock-up period
intention to
hold and
dispose of
shares and other
issues
Covenant by 12 months
HU Fei as a after
senior officer completion
and member of of the IPO
key technical and the
Covenant Restriction Refer to
staff regarding specific
relating to on the sale IPO Yes Yes N/A N/A
restriction on extended
IPO of shares Prospectus
the sale of period and
shares held by 6 months
him voluntary after
lock-up of such termination
shares of
extension of employmen
lock-up period t with the
intention to Company
hold and
dispose of
shares and other
issues
Covenant by
the senior
officers
including BO
Lianming
regarding
12 months
restriction on
after
the sale of
completion
Covenant Restriction shares held by Refer to
of the IPO
relating to on the sale them voluntary IPO Yes Yes N/A N/A
and the
IPO of shares lock-up of such Prospectus
specific
shares
extended
extension of
period
lock-up period
intention to
hold and
dispose of
shares and other
issues
Covenant by
the key
technical staff
including YU
Xin regarding 12 months
restriction on after
the sale of completion
shares held by of the IPO
Covenant Restriction Refer to
them voluntary and listing
relating to on the sale IPO Yes Yes N/A N/A
lock-up of such of stock
IPO of shares Prospectus
shares and the
extension of specific
lock-up period extended
intention to period
hold and
dispose of
shares and other
issues
Covenant by
the holders of
more than 5%
shares
12 months
regarding
after
Covenant Restriction restriction on Refer to
completion
relating to on the sale the sale of IPO Yes Yes N/A N/A
of the IPO
IPO of shares shares held by Prospectus
and listing
them voluntary
of stock
lock-up of such
shares
extension of
lock-up period
intention to
hold and
dispose of
shares and other
issues
Covenant by
the other
shareholders
regarding
restriction on
the sale of
12 months
shares held by
after
Covenant Restriction them voluntary Refer to
completion
relating to on the sale lock-up of such IPO Yes Yes N/A N/A
of the IPO
IPO of shares shares Prospectus
and listing
extension of
of stock
lock-up period
intention to
hold and
dispose of
shares and other
issues
Covenant by
senior officers
and core
employees
participating in
strategic
allotment
regarding At least 12
restriction on months
Covenant Restriction the sale of Refer to after
relating to on the sale shares held by IPO completion Yes Yes N/A N/A
IPO of shares them voluntary Prospectus of the IPO
lock-up of such and listing
shares of stock
extension of
lock-up period
intention to
hold and
dispose of
shares and other
issues
Issuer’s plan for
stabilizing the
Company’s
36 months
stock price and
after
Covenant covenant Refer to
completion
relating to Others regarding share IPO Yes Yes N/A N/A
of the IPO
IPO repurchase Prospectus
and listing
measures
of stock
within three
years after the
listing
Covenant Controlling Refer to 36 months
relating to Others shareholder and IPO after Yes Yes N/A N/A
IPO the actual Prospectus completion
controller’s of the IPO
plan for and listing
stabilizing the of stock
Company’s
stock price and
covenant
regarding share
repurchase
measures
within three
years after the
listing
Directors and
senior officers’
plan for
stabilizing the
36 months
Company’s
after
Covenant stock price and Refer to
completion
relating to Others covenant IPO Yes Yes N/A N/A
of the IPO
IPO regarding share Prospectus
and listing
repurchase
of stock
measures
within three
years after the
listing
Issuer’s
covenant
Covenant Refer to
regarding
relating to Others IPO Permanent No Yes N/A N/A
measures
IPO Prospectus
against fraud in
IPO
Controlling
shareholder
actual
controller and
Covenant their concert Refer to
relating to Others parties’ IPO Permanent No Yes N/A N/A
IPO covenant Prospectus
regarding
measures
against fraud in
IPO
Directors
supervisors and
senior officers’
Covenant Refer to
covenant
relating to Others IPO Permanent No Yes N/A N/A
regarding
IPO Prospectus
measures
against fraud in
IPO
Issuer’s
covenant
Covenant Refer to
regarding
relating to Others IPO Permanent No Yes N/A N/A
remedial
IPO Prospectus
measures for
diluted earnings
in the current
period
Controlling
shareholder
actual
controller and
their concert
Covenant parties’ Refer to
relating to Others covenant IPO Permanent No Yes N/A N/A
IPO regarding Prospectus
remedial
measures for
diluted earnings
in the current
period
Directors
supervisors and
senior officers’
covenant
Covenant Refer to
regarding
relating to Others IPO Permanent No Yes N/A N/A
remedial
IPO Prospectus
measures for
diluted earnings
in the current
period
Issuer’s
Covenant covenant Refer to
relating to Others regarding profit IPO Permanent No Yes N/A N/A
IPO distribution Prospectus
policy
Issuer’s
covenant
regarding
restraint
Covenant Refer to
measures and
relating to Others IPO Permanent No Yes N/A N/A
liability for
IPO Prospectus
compensation
in the event of
failure to fulfill
its covenants
Controlling
shareholder
actual
controller and
their concert
parties’
Covenant covenant Refer to
relating to Others regarding IPO Permanent No Yes N/A N/A
IPO restraint Prospectus
measures and
liability for
compensation
in the event of
failure to fulfill
their covenants
Directors
supervisors and
senior officers’
covenant
regarding
Covenant Refer to
restraint Term of
relating to Others IPO No Yes N/A N/A
measures and office
IPO Prospectus
liability for
compensation
in the event of
failure to fulfill
their covenants
Controlling
shareholder’s
covenant on
Resolve avoiding
Covenant Refer to
horizontal horizontal
relating to IPO Permanent No Yes N/A N/A
competition competition and
IPO Prospectus
issues regulating and
reducing
related-party
transactions
Actual
controller’s
covenant on
Resolve
avoiding
Covenant related- Refer to
horizontal
relating to party IPO Permanent No Yes N/A N/A
competition and
IPO transaction Prospectus
regulating and
issues
reducing
related-party
transactions
Refer to
the 2019
Restricted
Share
Covenant by Incentive
the grantee of Plan
share incentives (Draft) and
Others regarding 2021 Permanent No Yes N/A N/A
information Restricted
disclosure Share
documents Incentive
Covenant
Plan
related to
(Draft) of
share
the
incentives
Company
Refer to
the 2019
Company’s Restricted
covenant on Share
refraining from Incentive
Others Permanent No Yes N/A N/A
providing Plan
financial (Draft) and
assistance 2021
Restricted
Share
Incentive
Plan
(Draft) of
the
Company
II. Non-operational occupation of funds by the controlling shareholder and its affiliates during
this report
□ 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
VII. Material litigations and arbitrations
√ The Company was involved in material litigations or arbitration during the reporting period
□ The Company was not involved in material litigations or arbitration 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. Case for changing the inventor of patent 19-cv-00466-RGD-LRL in the United States District Court for the Eastern
District of Virginia The Company brings a suit against Delta in the United States District Court for the Eastern District
Refer to the Announcement on
of Virginia for breach of non-disclosure agreement wrongful appropriation of the technical solutions actually invented by
Litigation disclosed on September 9
the Company’s employees LI Yi and HU Fei and filing for patent application in the United States without authorization
2019 (No. 2019-012).and petitions the court to order that the inventors of the patent-in-suit US 9024241 shall be changed from WANG Bo
ZHANG Kesu and HUA Jianhao into LI Yi and HU Fei.Refer to the Announcement on
II. Cases of dispute over infringement on patents for invention [2019] Jing 73 Min Chu No. 1275 1276 and 1278
Litigation disclosed on September 21
In September 2019 Delta Electronics Inc. initiated a civil litigation on the ground that the Company and its controlled
2019 (No. 2019-014) and the
subsidiary Fengmi infringed the patents for invention ZL201610387831.8 ZL201410249663.7 and ZL201010624724.5
Announcement on Litigation
requesting the court to order to stop the acts of infringing the patent rights and the damages for infringement in the amount
disclosed on June 13 2020 (No.of RMB 48.03 million.2020-022).III. (2020) Yue 73 Zhi Min Chu No. 1335-1341 1353 1355-1361
Refer to the Announcement on
In August 2020 the Company initiated a civil litigation on the ground that Delta Electronics (Shanghai) Co. Ltd. Delta
Litigation Against Delta Electronics
Video Display System (Wujiang) Limited Digital Protection (Beijing) Electronics Technology Co. Ltd. and other entities
(Shanghai) Co. Ltd. and Other
infringed the patents for invention ZL200880107739.5 and ZL200810065225.X owned by the Company requesting the
Entities disclosed on August 11 2020
court to order to stop the acts of infringing the Company’s patent rights and the damages for infringement in the amount of
(No. 2020-037).RMB 80.00 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 Currency: RMB
During the reporting period:
Whether any
Party jointly Enforce
Type of provision is
Plaintiff/ Defendant and Amount Result and ment of
litigation Background recognized Status
claimant /respondent severally claimed effect judgment
/arbitration and the
liable /award
amount
[2019] Yue 73 Zhi Min
Chu No. 662 the Plaintiff
Futian SPN alleges that it is the owner RMB 10.00
Projector & of the patent for invention million
Delta Appotronics Infringement
Video ZL201610387831.8 and released In trial of the
Electronics Corporation on patent for 1614.53 No
System the Defendant infringed and in trial first instance
Inc. Limited invention
Firm of such patent for invention of the first
Shenzhen of the Plaintiff and caused instance
economic losses to the
Plaintiff.[2019] Yue 73 Zhi Min
Chu No. 663 the Plaintiff
Judgment of
Futian SPN alleges that it is the owner
the first
Projector & of the patent for invention
Delta Appotronics Infringement instance: All
Video ZL201310017478.0 and Pending
Electronics Corporation on patent for 1614.53 No claims made
System the Defendant infringed second trial
Inc. Limited invention by the
Firm of such patent for invention
Plaintiff were
Shenzhen of the Plaintiff and caused
dismissed.economic losses to the
Plaintiff.[2019] Yue 73 Zhi Min
Chu No. 664 the Plaintiff Ruling of the
Futian SPN
alleges that it is the owner second
Projector & Trial of the
Delta Appotronics Infringement of the patent for invention instance:
Video second
Electronics Corporation on patent for ZL20310625063.1 and 1614.53 No Delta was
System instance
Inc. Limited invention the Defendant infringed allowed to
Firm of completed
such patent for invention withdraw the
Shenzhen
of the Plaintiff and caused litigation.economic losses to the
Plaintiff.[2019] Jing 73 Min Chu
No. 1277 the Plaintiff
alleges that it is the owner
Ruling of the
Fengmi of the patent for invention
Delta Appotronics Infringement first instance:
(Beijing) ZL201310017478.0 and Pending
Electronics Corporation on patent for 1601.00 No The case of
Technology the Defendant infringed second trial
Inc. Limited invention the Plaintiff
Co. Ltd. such patent for invention
was rejected.of the Plaintiff and caused
economic losses to the
Plaintiff.
(2019) Yue 03 Min Chu
Delta Video Judgment of
No. 2943 2944 2946
Display the first
2948 and 2951 the
System instance: The
Plaintiff alleges that
Delta (Wujiang) Pending Defendant
Appotronics Infringement Defendant 1 Defendant 2
Electronics Limited; appeal in paid the
Corporation on patent for and Defendant 3 infringed 2800.00 No
(Shanghai) Shenzhen the second Company
Limited invention the patent for invention
Co. Ltd. Super instance RMB
200810065225.X of the
Network 1651997.00
Plaintiff and caused
Technology as the
economic losses to the
Co. Ltd. compensation
Plaintiff.
(2019) Yue 03 Min Chu
Delta Video
No. 2942 2945 2947
Display
2949 and 2950 the
System
Plaintiff alleges that
Delta (Wujiang) The The court
Appotronics Infringement Defendant 1 Defendant 2
Electronics Limited; Plaintiff ordered the
Corporation on patent for and Defendant 3 infringed 2800.00 No
(Shanghai) Shenzhen withdrew its case to be
Limited invention the patent for invention
Co. Ltd. Super case withdrawn.200880107739.5 of the
Network
Plaintiff and caused
Technology
economic losses to the
Co. Ltd.Plaintiff.Appotronics Delta Case of dispute (2019) Yue 03 Min Chu The The court
30.00 No
Corporation Electronics over title to No. 4309 the Plaintiff Plaintiff ordered the
Limited Inc. patents petitions the court to withdrew its case to be
declare that the patent case withdrawn.ZL201610387831.8“phosphor color wheeland its applicable lightsource system” is owned
by the Company.
(2021) Yue 03 Min Chu
No. 2295 the Plaintiff
Appotronics petitions the court to
ZHANG
Corporation Delta Case of dispute declare that the patent In trial of
Kesu HUA
Limited LI Electronics over title to ZL201610387831.8 30.00 No the first
Jianhao andYi and HU Inc. patents “phosphor color wheel instanceWANG Bo
Fei and its applicable lightsource system” is owned
by the Company.01-021-0003-7526 U.S.case of arbitration
GDC BVI failed to
achieve the performance
covenant for the year
2020 hence triggering the GDC
performance BVI: The
GDC compensation provisions. 465359 American
Appotronics Technology Dispute over Therefore GDC Cayman 11 Arbitration
Hong Kong Limited performance needs to fulfill the ordinary No Closed Association
Limited (Cayman compensation performance shares or has issued the
Islands) compensation USD 5.6 closing
commitment. In May million receipt.2021 the subsidiary in cash
Appotronics HK applied
with American
Arbitration Association
for the arbitration against
GDC Cayman requesting
the Respondent to pay the
Company performance
compensation.(III) Other information
√ Applicable□ N/A
At the end of this reporting period a total of 14 invalidation petitions have been raised against the
Company’s patent for invention ZL200880107739.5 and a total of 9 invalidation petitions have been
raised against the Company’s patent for invention ZL200810065225.X. These 23 cases have been decided
by the China National Intellectual Property Administration with the patents sustained or withdrawn by
the petitioner. Only 1 invalidation case with the Company as a patentee and WANG Lihua as a petitioner
is in trial at the China National Intellectual Property Administration and the number and name of the
patent involved in the case is ZL201110086731.9 and High-brightness Laser Method and Light-emitting
Device based on Light Wavelength Conversion.At the end of the reporting period there was 1 invalidation case where the Company acted as a
petitioner. The case is in trial at the China National Intellectual Property Administration and is related to
the invalidation petition with Delta Electronics Inc. as patentee.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 routine Please refer to the Announcement No. 2021-003related-party transactions with China Film “Announcement on expected routine related-partyEquipment Co. Ltd. and its affiliates Xiaomi transactions in 2021” and the Announcement No.Communications Technologies Co. Ltd. and its 2021-031 “Announcement on increase in expectedaffiliates Beijing DonView Education quota of routine related-party transactions inTechnology Co. Ltd. and its affiliates 2021” issued by the Company on
CINIONIC Shenzhen YLX Technology www.sse.com.cn and the designated media for
Development Co. Ltd. GDC Technology Limited information disclosure on February 10 2021 and
and its affiliates and WeCast Technology Corp. April 24 2021.and its affiliates for a total expected amount of
RMB 1.56195 billion in 2021.2. Matters already disclosed in the interim announcements about which there’s 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
Summary Reference
The controlled subsidiary Fengmi (Chongqing) Please refer to the Announcement No. 2021-018Innovative Technology Co. Ltd. intends to increase “Announcement on increase by Fengmi ofcapital of USD 4 million to the wholly-owned capital to the wholly-owned subsidiary and
subsidiary Formovie Limited which will be used subscription for 51% of equity of WeCast
for subscribing for 51% of equity in WeCast Technology Corp. and on related-partyTechnology Corp. After completion of this transactions” issued by the Company on
subscription WeCast will be included in the scope www.sse.com.cn and the designated media for
of the consolidated financial statements of the information disclosure on March 27 2021.Company. LI Yi the actual controller and the
Chairman of the Company acts as a director of
WeCast hence this subscription constitutes a
related-party transaction according to the
provisions.2. Matters already disclosed in the interim announcements about which there’s 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) 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
2. Matters already disclosed in the interim announcements about which there’s 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’s 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) Material related-party transactions
□ Applicable√ N/A
(VII) Others
□ Applicable√ N/A
XI. Material contracts and performance thereof
1 Trusteeship contracting and lease
√ Applicable□ N/A
(1) Trusteeship
□ Applicable√ N/A
(2) Contracting
□ Applicable√ N/A
(3) Lease
√ Applicable□ N/A
Unit: 0’000 Currency: RMB
Basis
Impact of Related-
Amount for
lease party Related
Name of Name of Leased of Start Lease determi
End date income on transacti -party
lessor lessee assets leased date income ning
the on or relation
assets lease
Company not
income
Appotroni Office
Shenzhen
cs R&D Decemb
Meisheng November
Corporati factory 1237.67 er 1 / / / No None
Industry 30 2022
on employee 2018
Co. Ltd.Limited dormitory
Description of lease
None
2 Material guarantees that have been performed or have not yet been fully performed during the report period
√ Applicable□ N/A
Unit: 0’000 Currency: RMB
The Company’s guarantees to external parties (excluding those to subsidiaries)
Whether
Relationship Whether Whether
Commencement the Amount of
between the the a
date of obligation the
guarantor Guaranteed Guarantee Guarantee Type of Principal Collateral obligation Counter guarantee Related
Guarantor Obligor guarantee guaranteed overdue
and the amount start date expiry date guarantee debt (if any) guaranteed guarantee for a relationship
(signing date of has obligation
listed has been related
agreement) become guaranteed
company discharged party
overdue
Total amount of guarantees provided during the reporting period (excluding those 0
provided for the subsidiaries)
Balance of guarantees at the end of the reporting period (excluding those provided for 0
the subsidiaries) (A)
Guarantees provided by the Company or its subsidiaries for the subsidiaries of the Company
Whether
Relationship Commencement Whether the the Amount of
Relationship Whether
between the date of Inception Expiry obligation obligation the
between the Guaranteed Type of there’s a
Guarantor guarantor and Obligor guarantee date of date of guaranteed guaranteed overdue
obligor and the amount guarantee counter
the listed (signing date of guarantee guarantee has been has obligation
listed company guarantee
company agreement) discharged become guaranteed
overdue
Three
CINEAPPO years after
Laser the due
Appotronics Joint and
Cinema Controlled 2020-5- date for the
Corporation Headquarters 70000 2020-5-31 several No No No
Technology subsidiary 31 obligations
Limited liability
(Beijing) under the
Co. Ltd. master
contract
Appotronics Two years Joint and
Fengmi Controlled 2019-10-
Corporation Headquarters 16500 2019-10-21 after the several No No No
(Beijing) subsidiary 21
Limited due date liability
Technology for the
Co. Ltd. obligations
Initial
Two years
utilization
after the
date or
Fengmi latest due
Appotronics actual Joint and
(Beijing) Controlled date of the
Corporation Headquarters 10000 2020-12-1 date of several No No No
Technology subsidiary loans
Limited utilization liability
Co. Ltd. under the
under the
financing
financing
letter
letter
Three
years after
Fengmi the due
Appotronics Joint and
(Beijing) Controlled date for the
Corporation Headquarters 10000 2020-7-1 2020-7-1 several No No No
Technology subsidiary obligations
Limited liability
Co. Ltd. under the
master
contract
Two years
after the
CINEAPPO
last
Laser
Appotronics instalment Joint and
Cinema Controlled 2021-1-
Corporation Headquarters 23000 2021-1-26 of payment several No No No
Technology subsidiary 26
Limited under this liability
(Beijing)
single
Co. Ltd.contract
expires
Two years
Fengmi
Appotronics after the Joint and
(Beijing) Controlled
Corporation Headquarters 5500 2021-4-2 2021-4-2 due date several No No No
Technology subsidiary
Limited for the liability
Co. Ltd.obligations
Total amount of guarantees provided for the subsidiaries during the reporting period 39852
Balance of guarantees provided for the subsidiaries at the end of the reporting period 41586
(B)
Total amount of guarantees provided by the Company (including those provided for the subsidiaries)
Total amount guaranteed (A+B) 41586
Proportion of total amount guaranteed to the net assets of the Company (%) 17.89
Including:
Total amount of guarantees provided for the shareholders actual controller and their 0
affiliates (C)
Total amount of debt guarantees directly or indirectly provided for the obligors whose 20738
equity-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) 20738
Explanation about outstanding guarantees for which the Company may assume joint N/A
and several liability
Explanation about guarantees N/A
3 Other material contracts
□ Applicable√ N/A
XII. Use of offering proceeds
√ Applicable□ N/A
Unit: 0’000 Currency: RMB
Total offering proceeds used in this
Total offering proceeds 106247.08 4587.51
year
Total offering proceeds with the purpose
N/A
changed Cumulative total offering proceeds
49810.75
Proportion of total offering proceeds used
N/A
with the purpose changed (%)
Difference
between the Investme
nt Date for cumulative
the project
Changed Cumulative amount progress
Committed
by the to reach Benefits project Total Post- Amount amount invested Whether Material
Investment investment end of the realized including offering adjustment invested invested by and the to obtain changes in
project amount by working in the
partial proceeds total in this the end of committed the expected the project
promised the end of the condition current
change (if committed investment year the period investment period benefits feasibility
period① for its year
any) ② amount by (%)
intended
the end of ④=②/
use
the period ①
③=②-①
R&D and
industrializ
ation of
new March
No change 31300.00 31300.00 31300.00 3302.59 12174.06 -19125.94 38.89 N/A N/A No
generation 2022
of laser
display
products
R&D center
at the head
August
office of No change 28400.00 28400.00 28400.00 1013.90 2321.00 -26079.00 8.17 N/A N/A No2022
Appotronic
s
Information
system March
No change 7000.00 7000.00 7000.00 271.02 1776.19 -5223.81 25.37 N/A N/A No
upgrade and 2022
building
Supplement
ary working No change 33300.00 33300.00 33300.00 0 33539.50 100.72 N/A N/A N/A No
capital
Total - 100000.00 100000.00 100000.00 4587.51 49810.75 -50428.75 - - - -
During the implementation of the R&D and industrialization of new generation of laser display products based on the
principle of ensuring quality controlling costs and reducing risks the Company acted more diligently in the specific
planning and use of funds for the projects which delayed the overall implementation progress expected; the headquarters
building of the Company is still in construction as a result the R&D center at the head office and the information system
Reason for not reaching the planned progress (by
upgrade and building cannot be implemented in a large scale.specific investment project)
As of the date when this Report is released the Company expects that the aforesaid three proceeds-invested projects will
not reach the working condition for its intended use on the original scheduled date. Subsequently the Company will
evaluate the progress of the project according to the actual situation and request the Board of Directors to review the
adjustments to the proceed-invested projects.Description of material changes in project feasibility No material change
On July 29 2019 the Proposal on Replacing Early Funds Invested with Offering Proceeds was reviewed and passed at
the 16th meeting of the first Board of Directors approving the Company to replace the invested funds of RMB 18.9584
million as of July 19 2019 with the offering proceeds and replace the offering expenses paid in the amount of RMB
Early investment and replacement of offering proceeds
3.1056 million with the offering proceeds. The matters above have been assured by Pan-China Certified Public
Accountants (Special General Partnership) which issued the Assurance Report on Replacement of Funds with Offering
Proceeds by Appotronics Corporation Limited (Tian Jian Shen [2019] No. 7-393).Temporarily supplement the working capital with idle
None
offering proceeds
On July 21 2020 the 23rd meeting of the first Board of Directors of the Company reviewed and approved the Proposal
on the Cash Management of Temporarily Idle Offering Proceeds agreeing that the Company would conduct cash
management of temporarily idle offering proceeds up to RMB 670 million provided that it shall ensure that the normal
progress of the Company’s investment plan of proceeds would not be affected and agreeing that the Company would
Cash management of idle offering proceeds and
use these proceeds to purchase investment products with high security good liquidity and guaranteed principal (including
investment in relevant products
but not limited to structural deposits agreed deposits call deposits time deposits large certificates of deposit income
certificates) among them the total purchase amount of income certificates shall not exceed RMB 200 million and the
service life shall not exceed 12 months; and the valid period shall be 12 months from the date of review and approval by
the Board of Directors and the Board of Supervisors.Permanently supplement working capital or repay bank
None
loans with excess offering proceeds
Balance of offering proceeds and reasons thereof N/A
Other use of offering proceeds None
[Note] In the process of the project the total wealth management returns of RMB 2.3950 million were derived from the special account of supplementary working
capital which have been put into use in the project (supplementary working capital). As of the date of approval for issue of this Report the special account (Huaxia
Bank Co. Ltd. Shenzhen Branch (Houhai Subbranch) account number: 10869000000251463) has been deregistered. The interest RMB 1418.11 incurred after
completion of the project has been paid to the basic account of the Company to be used as supplementary working capital.XIII. Other significant matters
□ Applicable√ N/A
Section VII Changes in Shares and Shareholders
I. Changes in ordinary shares
(I) Statement of changes in ordinary shares
1. Statement of changes in ordinary 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 ordinary 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 (if any)
□ Applicable√ N/A
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 shareholders of ordinary shares as of the 11551
end of the reporting period
Total number of shareholders of preferred shares whose 0
voting right has been restituted as of the end of the
reporting period
Total number of shareholders of shares with special 0
voting rights as of the end of the reporting period
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
□ Applicable√ N/A
Unit: Share
Shares held by top 10 shareholders
Change during Balance of Percen Number of Number of Sharehol
Shareholder Shares pledged
the reporting shares held tage non- non-tradable der
(Full name) or frozen
period as at the (%) tradable shares held nature
end of the shares held including
reporting the shares
period lent out Share
Number
under the status
refinancing
arrangement
Domesti
Shenzhen c non-
Appotronics stated
0 79762679 17.62 79762679 79762679 None 0
Holdings owned
Limited corporati
on
SAIF IV Hong
Foreign
Kong (China
-20410779 33502956 7.40 0 0 None 0 corporati
Investments)
on
Limited
CITIC PE
Foreign
Investment
-7060800 30352232 6.70 0 0 None 0 corporati
(Hong Kong)
on
2016 Limited
Shenzhen
Domesti
Yuanshi Laser
c non-
Industrial
stated
Investment 0 24139500 5.33 24139500 24139500 None 0
owned
Consulting
corporati
Partnership
on
(LP)
Domesti
Nantong Strait
c non-
Appotronics
stated
Investment -1984408 23080329 5.10 0 0 None 0
owned
Partnership
corporati
(LP)
on
Shenzhen Domesti
Appotronics c non-
Daye stated
0 20430250 4.51 20430250 20430250 None 0
Investment owned
Partnership corporati
(LP) on
Shenzhen Domesti
Appotronics c non-
Hongye stated
0 15662374 3.46 15662374 15662374 None 0
Investment owned
Partnership corporati
(LP) on
GREEN
Foreign
FUTURE
-3770272 12734246 2.81 0 0 None 0 corporati
HOLDINGS
on
LIMITED
Shenzhen Domesti
Jinleijing c non-
Investment stated
0 12353106 2.73 12353106 12353106 None 0
Limited owned
Partnership corporati
(LP) on
Shenzhen Domesti
Appotronics c non-
Chengye stated
0 10394846 2.30 10394846 10394846 None 0
Consulting owned
Partnership corporati
(LP) on
Shares held by top 10 holders of tradable shares
Number of tradable Type and number of shares
Shareholder
shares held Category Number
SAIF IV Hong Kong (China Investments) RMB-
Limited 33502956 denominated 33502956
ordinary share
CITIC PE Investment (Hong Kong) 2016 RMB-
Limited 30352232 denominated 30352232
ordinary share
Nantong Strait Appotronics Investment RMB-
Partnership (LP) 23080329 denominated 23080329
ordinary share
GREEN FUTURE HOLDINGS LIMITED RMB-
12734246 denominated 12734246
ordinary share
Shenzhen Guochuang Chenggu Capital RMB-
Management Co. Ltd. - Shenzhen Chengguhui 8114369 denominated 8114369
Equity Investment Partnership (LP) ordinary share
Smart Team Investment Limited RMB-
6799660 denominated 6799660
ordinary share
JPMORGAN CHASE BANK NATIONAL RMB-
ASSOCIATION 5930409 denominated 5930409
ordinary share
Shenzhen Liansong Capital Management RMB-
Partnership (LP) 5833817 denominated 5833817
ordinary share
ICBC-AXA Life Co. Ltd. - Traditional 2 RMB-
4900000 denominated 4900000
ordinary share
China Merchants Bank Co. Ltd. - One-year RMB-
ABC Huili Strategic Income Hybrid Securities 3778794 denominated 3778794
Investment Fund ordinary share
Description of special repurchase shareholders
N/A
among top 10 shareholders
Description of entrusting voting right entrusted
voting right and waiver of voting right of the N/A
shareholder above
1. As of June 30 2021 among the Company’s top 10 shareholders
Appotronics Holdings Yuanshi Appotronics Daye Appotronics
Hongye and Jinleijing are concert parties. The Company has not
Affiliates or concert parties among the received any notice about affiliates or concert parties among other
shareholders stated above shareholders stated above.2. The Company is 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 right
has been restituted and the number of shares N/A
held by them
Top 10 holders of non-tradable shares and lock-up period
√ Applicable□ N/A
Unit: Share
Unlocking of non-
tradable shares
Number of
Number Lock-up
No. Holder of non-tradable shares non-tradable
of shares period
shares held Unlock date
newly
unlocked
36 months
Shenzhen Appotronics Holdings July 22 after the
1 79762679 0
Limited 2022 listing
date
36 months
Shenzhen Yuanshi Laser Industrial
July 22 after the
2 Investment Consulting Partnership 24139500 0
2022 listing
(LP)
date
36 months
Shenzhen Appotronics Daye July 22 after the
3 20430250 0
Investment Partnership (LP) 2022 listing
date
36 months
Shenzhen Appotronics Hongye July 22 after the
4 15662374 0
Investment Partnership (LP) 2022 listing
date
36 months
Shenzhen Jinleijing Investment July 22 after the
5 12353106 0
Limited Partnership (LP) 2022 listing
date
36 months
Shenzhen Appotronics Chengye July 22 after the
6 10394846 0
Consulting Partnership (LP) 2022 listing
date
36 months
BLACKPINE Investment Corp. July 22 after the
7 3994011 0
Limited 2022 listing
date
24 months
Huatai Venture Capital Investment July 22 after the
8 2720000 0
Co. Ltd. 2021 listing
date
As of June 30 2021 among the shareholders of the
restricted shares above Appotronics Holdings
Yuanshi Appotronics Daye Appotronics Hongye
Affiliates or concert parties among the
Jinleijing Appotronics Chengye and BLACKPINE
shareholders stated above
Investment Corp. Limited are concert parties. The
Company has not received any notice about affiliates or
concert parties among other shareholders stated above.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
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 of Number of
Number of Number of restricted
restricted restricted
restricted restricted shares
shares already shares that
shares shares that already
granted as at have been
Name Title granted could be granted as
the beginning vested in
during the vested in the of the end
of the the
reporting reporting of the
reporting reporting
period period reporting
period period
period
Chairman
of the
Board of
LI Yi Directors 0 3500000 0 0 3500000
& key
technical
staff
Director &
BO
General 100000 3500000 30000 30000 3570000
Lianming
Manager
WANG Director &
51400 150000 15420 15420 185980
Yingxia CFO
Board
YAN Li 150000 350000 15000 15000 485000
Secretary
Key
HU Fei technical 100000 350000 30000 30000 420000
staff
Key
YU Xin technical 50000 200000 15000 15000 235000
staff
Key
WANG
technical 50000 200000 15000 15000 235000
Lin
staff
Key
WANG
technical 40000 200000 12000 12000 228000
Zeqin
staff
Key
GUO
technical 40000 200000 12000 12000 228000
Zuqiang
staff
Total / 581400 8650000 144420 144420 9086980
Notes: In August 2021 the directors supervisors senior officers and key technical staff of the Company
change and the above stable shows the grant of Type II restricted shares of the directors supervisors
senior officers and key technical staff in office on the disclosure date of this report and their vesting status.(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
Section VIII Preferred Shares
□ Applicable√ N/A
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
Section X Financial Report
I. Auditor's report
□ Applicable√ N/A
II. Financial statements
Consolidated Balance Sheet
At June 30 2021
Prepared by: Appotronics Corporation Limited
Unit: Yuan Currency: RMB
Item Note At June 30 2021 At December 31 2020
Current Assets:
Cash and bank balances VII. 1 923880253.21 1037760573.27
Balances with clearing
agencies
Placements with banks and
other financial institutions
Held-for-trading financial VII. 2 114000000.00
457982988.00
assets
Derivative financial assets
Notes receivable VII. 4 3798593.29 3726328.91
Accounts receivable VII. 5 168553862.09 341660832.43
Receivables financing VII. 6 1214306.00 11959000.00
Prepayments VII. 7 83781122.54 47447601.43
Premiums receivable
Amounts receivable under
reinsurance contracts
Reinsurer's share of
insurance contract reserves
Other receivables VII. 8 10381304.06 12534062.15
Including: Interest
receivable
Dividends receivable
Financial assets purchased
under resale agreements
Inventories VII. 9 641578029.45 418812140.80
Contract assets VII. 10 2388492.32 3744655.50
Held-for-sale assets
Non-current assets due
within one year
Other current assets VII. 13 49693022.76 13002195.46
Total Current Assets 2343251973.72 2004647389.95
Non-current Assets:
Loans and advances
Debt investments
Other debt investments
Long-term receivables VII. 16 13495945.96 13196087.78
Long-term equity VII. 17 262744772.48
265900452.67
investments
Other equity instrument VII. 18 11975419.38
11975419.38
investments
Other non-current financial
assets
Investment properties
Fixed assets VII. 21 448824286.12 447571328.91
Construction in progress VII. 22 88984744.00 51576850.72
Bearer biological assets
Oil and gas assets
Use right assets VII. 25 36066334.54
Intangible assets VII. 26 313157523.55 320488235.60
Development expenditure
Goodwill
Long-term prepaid expenses VII. 29 9976802.17 11572346.79
Deferred tax asset VII. 30 103610372.30 96132114.02
Other non-current assets VII. 31 15891524.06 6299781.06
Total Non-current Assets 1307883404.75 1221556936.74
Total assets 3651135378.47 3226204326.69
Current Liabilities:
Short-term borrowings VII. 32 28097875.42 88778852.86
Loans from the central bank
Taking from banks and other
financial institutions
Held-for-trading financial
liabilities
Derivative financial
liabilities
Notes payable VII. 35 180257484.74 116822674.67
Accounts payable VII. 36 272203766.10 226494815.90
Receipts in advance VII. 37 141944076.60 153258189.88
Contract liabilities VII. 38 40048659.77 31518312.59
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 33220367.56 46105566.15
Taxes payable VII. 40 43934753.55 19871846.94
Other payables VII. 41 255483098.01 59848053.83
Including: Interest payable
Dividends payable VII. 41 3851339.04
Fees and commissions
payable
Amounts payable under
reinsurance contracts
Held-for-sale liabilities
Non-current liabilities due VII. 43 146220719.05 181417412.46
within one year
Other current liabilities VII. 44 3391139.20 3045831.07
Total Current Liabilities 1144801940.00 927161556.35
Non-current Liabilities:
Insurance contract reserves
Long-term borrowings VII. 45 102690487.26 64845281.53
Bonds payable
Including: Preferred shares
Perpetual bonds
Leasing liabilities VII. 47 18391443.49
Long-term accounts payable VII. 48 3230050.00 3262450.00
Long-term employee
benefits payable
Provisions VII. 50 30519379.89 28799354.65
Deferred income VII. 51 16959926.67 16723257.15
Deferred tax liabilities
Other non-current liabilities
Total Non-current 171791287.31 113630343.33
Liabilities
Total Liabilities 1316593227.31 1040791899.68
Owners' (or Shareholders')
Equity:
Paid-in capital (or share VII. 53 452756901.00 452756901.00
capital)
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve VII. 55 1360104339.28 1249020991.15
Less: Treasury shares
Other comprehensive VII. 57 -7977590.58 -3214291.93
income
Special reserve
Surplus reserve VII. 59 35242179.57 35242179.57
General risk reserve
Retained profits VII. 60 484350453.52 357793891.96
Total owners’ (or
shareholders’) equity
2324476282.79 2091599671.75
attributable to owners of the
Parent Company
Minority interests 10065868.37 93812755.26
Total Owners’ (or
2334542151.16 2185412427.01
Shareholders’) Equity
Total Liabilities and
Owners’(or Shareholders’) 3651135378.47 3226204326.69
Equity
Legal representative: BO Lianming Chief Accountant: WANG Yingxia Person in Charge of the
Accounting Body: LIU Jie
Balance Sheet of the Parent Company
At June 30 2021
Prepared by: Appotronics Corporation Limited
Unit: Yuan Currency: RMB
Item Note At June 30 2021 At December 31 2020
Current Assets:
Cash and bank balances 600116631.85 709932686.71
Held-for-trading financial 320000000.00 114000000.00
assets
Derivative financial assets
Notes receivable 2584493.29 2314628.91
Accounts receivable XVII. 1 530618487.97 567539506.79
Receivables financing 1214306.00 100000.00
Prepayments 16858205.85 11001439.23
Other receivables XVII. 2 42129668.23 71654117.57
Including: Interest
receivable
Dividends receivable
Inventories 277455657.71 169022971.44
Contract assets 2372162.32 3720160.50
Held-for-sale assets
Non-current assets due
within one year
Other current assets 8623008.03 1297388.01
Total Current Assets 1801972621.25 1650582899.16
Non-current Assets:
Debt investments
Other debt investments
Long-term receivables 13495945.96 13196087.78
Long-term equity XVII. 3 433116205.54 421648284.99
investments
Other equity instrument 7075419.38 7075419.38
investments
Other non-current financial
assets
Investment properties
Fixed assets 52669261.18 57409189.33
Construction in progress 65509824.53 37982329.74
Bearer biological assets
Oil and gas assets
Use right assets 23267911.80
Intangible assets 312406262.35 319438893.42
Development expenditure
Goodwill
Long-term prepaid expenses 6989278.66 9562162.36
Deferred tax asset 10135929.15 6680188.67
Other non-current assets 8005743.64 5411561.28
Total Non-current Assets 932671782.19 878404116.95
Total assets 2734644403.44 2528987016.11
Current Liabilities:
Short-term borrowings 11410560.27
Held-for-trading financial
liabilities
Derivative financial
liabilities
Notes payable 34224409.65 32313678.21
Accounts payable 298541730.34 210885240.65
Receipts in advance 82567.18 2688210.54
Contract liabilities 28387196.86 20609190.34
Employee benefits payable 21977734.49 28514763.09
Taxes payable 12789462.50 5830858.89
Other payables 43426696.22 23058804.83
Including: Interest payable
Dividends payable 3851339.04
Held-for-sale liabilities
Non-current liabilities due 15704161.94 1001024.66
within one year
Other current liabilities 2027052.47 1918391.60
Total Current Liabilities 457161011.65 338230723.08
Non-current Liabilities:
Long-term borrowings 32021877.44 29029715.07
Bonds payable
Including: Preferred shares
Perpetual bonds
Leasing liabilities 10438482.41
Long-term accounts payable 3230050.00 3262450.00
Long-term employee
benefits payable
Provisions 15648843.74 16345891.60
Deferred income 15085473.02 14450411.10
Deferred tax liabilities
Other non-current liabilities
Total Non-current 76424726.61 63088467.77
Liabilities
Total Liabilities 533585738.26 401319190.85
Owners' (or Shareholders')
Equity:
Paid-in capital (or share 452756901.00 452756901.00
capital)
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve 1370268310.79 1351261718.84
Less: Treasury shares
Other comprehensive
income
Special reserve
Surplus reserve 33964638.84 33964638.84
Retained profits 344068814.55 289684566.58
Total Owners’ (or
2201058665.18 2127667825.26
Shareholders’) Equity
Total Liabilities and
Owners’(or Shareholders’) 2734644403.44 2528987016.11
Equity
Legal representative: BO Lianming Chief Accountant: WANG Yingxia Person in Charge of the
Accounting Body: LIU Jie
Consolidated Income Statement
Jan. - Jun. 2021
Unit: Yuan Currency: RMB
Item Note Half year of 2021 Half year of 2020
I. Total operating income 1104689243.59 716025207.34
Including: Operating income VII. 61 1104689243.59 716025207.34
Interest income
Premiums earned
Fee and commission income
II. Total operating costs 998250659.71 756098193.88
Including: Operating costs VII. 61 723612305.19 529787789.94
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 levies VII. 62 4331138.81 2329710.56
Sales expenses VII. 63 89686195.83 50833894.50
Administration expenses VII. 64 83960516.92 77813657.09
R&D expenses VII. 65 95128483.66 87295450.75
Financial expenses VII. 66 1532019.30 8037691.04
Including: Interest expense 11013330.17 11612825.87
Interest income 10868184.51 4618971.33
Add: Other income VII. 67 54890296.70 32922034.97
Investment income (loss is
VII. 68 9128665.03 11726688.51
indicated by “-”)
Including: Income from
investments in associates and joint 6982738.64 901894.80
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
VII. 70 38175900.00
values (loss is indicated by “-”)
Losses of credit impairment
VII. 71 9407031.23 2170106.96
(loss is indicated by “-”)
Impairment losses of assets
VII. 72 -16581239.34 -12109681.09
(loss is indicated by “-”)
Gains from disposal of assets
VII. 73 2806008.82 149620.91
(loss is indicated by “-”)
III. Operating profit (loss is indicated
204265246.32 -5214216.28
by “-”)
Add: Non-operating income VII. 74 22240680.14 270615.48
Less: Non-operating expenses VII. 75 405501.61 740701.95
IV. Total profits (total losses are
226100424.85 -5684302.75
indicated by “-”)
Less: Income tax expense VII. 76 46305525.16 2693941.42
V. Net profits (net losses are
179794899.69 -8378244.17
indicated by “-”)
(I) Categorized by the continuity of operation
1. Net profits from continuing
operations (net losses are indicated by 179794899.69 -8378244.17
"-")
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 151413920.79 14327442.96
(net losses are indicated by "-")
2. Profits or losses attributable to
minority shareholders (net losses are 28380978.90 -22705687.13
indicated by “-”)
VI. Other comprehensive income net
-4739767.89 1039650.57
of tax
(I) Other comprehensive income
that can be attributable to owners of -4763298.65 1013815.20
the Parent Company 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 be reclassified to profit or -4763298.65 1013815.20
loss
(1) Other comprehensive income that
will be reclassified to profit or loss -135706.31
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 -4763298.65 1149521.51
denominated in foreign currencies
(7) Others
(II) Other comprehensive income
that can be attributable to minority 23530.76 25835.37
shareholders net of tax
VII. Total comprehensive income 175055131.80 -7338593.60
(I) Total comprehensive income
that can be attributable to owners of 146650622.14 15341258.16
the Parent Company
(II) Total comprehensive income
that can be attributable to minority 28404509.66 -22679851.76
shareholders
VIII. Earnings per share:
(I) Basic earnings per share
0.33 0.03
(RMB/share)
(II) Diluted earnings per share
0.33 0.03
(RMB/share)
For business combination involving entities under common control occurred during the period net profit
of the acquiree generated before the business combination is nil and net profit of the acquiree generated
in prior period is nil.Legal representative: BO Lianming Chief Accountant: WANG Yingxia Person in Charge of
the Accounting Body: LIU Jie
Income Statement of the Parent Company
Jan. - Jun. 2021
Unit: Yuan Currency: RMB
Item Note Half year of 2021 Half year of 2020
I. Operating income XVII. 4 572827875.91 384899378.41
Less: Operating costs XVII. 4 381855853.31 256660786.97
Taxes and levies 2677366.89 1352141.01
Sales expenses 31778439.77 27526291.43
Administration expenses 51914220.61 56310385.85
R&D expenses 48699043.93 51085854.54
Financial expenses -13332493.36 -6218121.07
Including: Interest expense 1232450.71 354733.03
Interest income 15462791.57 6827084.77
Add: Other income 15069445.02 26399900.47
Investment income (loss is
XVII. 5 15655417.87 10824793.71
indicated by “-”)
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 indicated by “-”)
Losses of credit impairment
61742.84 -144581.15
(loss is indicated by “-”)
Impairment losses of assets
-9536087.28 -10600208.60
(loss is indicated by “-”)
Gains from disposal of assets
(loss is indicated by “-”)
II. Operating profit (loss is indicated
90485963.21 24661944.11
by “-”)
Add: Non-operating income 2207572.56 253319.61
Less: Non-operating expenses 150645.92 350387.34
III. Total profits (total losses are
92542889.85 24564876.38
indicated by “-”)
Less: Income tax expense 13606250.04 4758965.06
IV. Net profits (net losses are
78936639.81 19805911.32
indicated by “-”)
(I) Net profits from continuing
operations (net losses are indicated by 78936639.81 19805911.32
“-”)
(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
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 78936639.81 19805911.32
VII. Earnings per share:
(I) Basic earnings per share
(RMB/share)
(II) Diluted earnings per share
(RMB/share)
Legal representative: BO Lianming Chief Accountant: WANG Yingxia Person in Charge of the
Accounting Body: LIU Jie
Consolidated Cash Flow Statement
Jan. - Jun. 2021
Unit: Yuan Currency: RMB
Item Note Half year of 2021 Half year of 2020
I. Cash Flows from Operating
Activities:
Cash receipts from the sale of
goods and the rendering of 1453487844.10 857080419.89
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 2222772.52 4632072.61
Other cash receipts relating to
VII. 78. (1) 113502001.69 81270397.72
operating activities
Sub-total of cash inflows
1569212618.31 942982890.22
from operating activities
Cash payments for goods
1051145975.21 572318784.38
purchased and 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
166538999.80 163925755.54
behalf of employees
Payments of various types of
46982376.14 43586182.30
taxes
Other cash payments relating
VII. 78. (2) 133885953.26 100146106.20
to operating activities
Sub-total of cash outflows
1398553304.41 879976828.42
from operating activities
Net cash flow from
170659313.90 63006061.80
operating activities
II. Cash Flows from Investing
Activities:
Cash receipts from disposals
228000000.00 1075000000.00
and recovery of investments
Cash receipts from investment
2145926.39 10824793.71
income
Net cash receipts from
disposals of fixed assets
7250.00 3600.00
intangible assets and other long-
term assets
Net cash receipts from
disposals of subsidiaries and
other business units
Other cash receipts relating to
investing activities
Sub-total of cash inflows
230153176.39 1085828393.71
from investing activities
Cash payments to acquire or
construct fixed assets intangible 27639815.32 19930656.68
assets and other long-term assets
Cash payments to acquire
568048387.32 1158213540.00
investments
Net increase in pledged loans
receivables
Net cash payments for
acquisitions of subsidiaries and
other business units
Other cash payments relating
to investing activities
Sub-total of cash outflows
595688202.64 1178144196.68
from investing activities
Net cash flows from
-365535026.25 -92315802.97
investment activities
III. Cash Flows from Financing
Activities:
Cash receipts from capital
10131579.00
contributions
Including: Cash receipts from
capital contributions from
10131579.00
minority shareholders of
subsidiaries
Cash receipts from borrowings 113544066.34 98922683.45
Other cash receipts relating to VII. 78. (5)
215000000.00
financing activities
Sub-total of cash inflows
338675645.34 98922683.45
from financing activities
Cash repayments of
191867810.44 179644434.20
borrowings
Cash payments for distribution
of dividends or profits or 40008875.22 34547574.58
settlement of interest expenses
Including: Payments for 11040000.00
distribution of dividends or
profits to minority shareholders
of subsidiaries
Other cash payments relating
VII. 78. (6) 31210615.17 22587.36
to financing activities
Sub-total of cash outflows
263087300.83 214214596.14
from financing activities
Net cash flows from
75588344.51 -115291912.69
financing activities
IV. Effect of Foreign Exchange
Rate Changes on Cash and -649558.76 1108215.61
Cash Equivalents
V. Net Increase in Cash and
-119936926.60 -143493438.25
Cash Equivalents
Add: Opening balance of cash
983525089.44 829789487.86
and cash equivalents
VI. Closing Balance of Cash
863588162.84 686296049.61
and Cash Equivalents
Legal representative: BO Lianming Chief Accountant: WANG Yingxia Person in Charge of
the Accounting Body: LIU Jie
Cash Flow Statement of the Parent Company
Jan. - Jun. 2021
Unit: Yuan Currency: RMB
Item Note Half year of 2021 Half year of 2020
I. Cash Flows from Operating
Activities:
Cash receipts from the sale of
goods and the rendering of 695738828.66 351592568.58
services
Receipts of tax refunds 539857.34 3108523.77
Other cash receipts relating to
102652212.97 147176514.17
operating activities
Sub-total of cash inflows
798930898.97 501877606.52
from operating activities
Cash payments for goods
460644038.55 320604308.34
purchased and services received
Cash payments to and on
98344040.37 98194575.75
behalf of employees
Payments of various types of
32447369.04 4579897.88
taxes
Other cash payments relating
59619379.08 87411317.15
to operating activities
Sub-total of cash outflows
651054827.04 510790099.12
from operating activities
Net cash flow from operating
147876071.93 -8912492.60
activities
II. Cash Flows from Investing
Activities:
Cash receipts from disposals
255500000.00 1075000000.00
and recovery of investments
Cash receipts from investment
9597926.39 10824793.71
income
Net cash receipts from
disposals of fixed assets
3600.00
intangible assets and other long-
term assets
Net cash receipts from
disposals of subsidiaries and
other business units
Other cash receipts relating to
investing activities
Sub-total of cash inflows
265097926.39 1085828393.71
from investing activities
Cash payments to acquire or
construct fixed assets intangible 11606321.91 14697925.55
assets and other long-term assets
Cash payments to acquire
472932903.47 1161213540.00
investments
Net cash payments for
acquisitions of subsidiaries and
other business units
Other cash payments relating
to investing activities
Sub-total of cash outflows
484539225.38 1175911465.55
from investing activities
Net cash flows from
-219441298.99 -90083071.84
investment activities
III. Cash Flows from
Financing Activities:
Cash receipts from capital
contributions
Cash receipts from
3494734.74 52241387.30
borrowings
Other cash receipts relating to
financing activities
Sub-total of cash inflows
3494734.74 52241387.30
from financing activities
Cash repayments of
11737867.15 10000000.00
borrowings
Cash payments for
distribution of dividends or
21319708.05 23000602.77
profits or settlement of interest
expenses
Other cash payments relating
8435056.25 22587.36
to financing activities
Sub-total of cash outflows
41492631.45 33023190.13
from financing activities
Net cash flows from
-37997896.71 19218197.17
financing activities
IV. Effect of Foreign
Exchange Rate Changes on -269974.94 295306.01
Cash and Cash Equivalents
V. Net Increase in Cash and
-109833098.71 -79482061.26
Cash Equivalents
Add: Opening balance of cash
666628105.82 524648100.62
and cash equivalents
VI. Closing Balance of Cash
556795007.11 445166039.36
and Cash Equivalents
Legal representative: BO Lianming Chief Accountant: WANG Yingxia Person in Charge of the
Accounting Body: LIU Jie
Consolidated Statement of Changes in Owners’ Equity
Jan. - Jun. 2021
Unit: Yuan Currency: RMB
Half year of 2021
Equity attributable to owners of the Parent Company
Item Other equity instruments
Total
Less: Other General Minority Owner's
Paid-in capital (or share Preferr Capital Special Surplus Retained
interests
Perpetual Treasury comprehensive risk
Others Sub-total Equity
capital) ed Others reserve reserve reserve profits
bonds shares income reserve
shares
I. Closing
balance of - 21851249020 35242179. 3577938 209159 938127
the 452756901.00 3214291.9 41242
preceding 991.15 57 91.96 9671.75 55.26 3 7.01
year
Add:
Changes -44270.3 33021
in 44270.33 11248.6
accountin 3 .69 4
g policies
Corr
ections of
prior
period
errors
Busi
ness
combinati
on
involving
entities
under
common
control
Othe
rs
II.Opening - 2185
balance of 1249020 35242179. 3578381 209164 938015
452756901.00 3214291.9 44544
the 991.15 57 62.29 3942.08 06.62
current 3 8.70
year
III.Changes
for the - - 14909
year 1110833 1265122 232832
4763298.6 837356 6702.(decrease 48.13 91.23 340.71
is 5 38.25 46
indicated
by “-”)
(I) Total - 17505
comprehe 1514139 146650 284045
4763298.6 5131.nsive 20.79 622.14 09.66
income 5 80
(II)
Owners’ -
contributi 1110833 111083 9983101100
ons and 48.13 348.13 200.22
reduction 147.91
in capital
1.Ordinary 20175
shares 201754
439.0
contribute 39.00
d by 0
owners
2. Capital
contributi
on from
holders of
other
equity
instrumen
ts
3. Share- 184611 389051 22351
based 03.38 7.84 621.2
payment 1846110 2
recognize
d in 3.38
owners'
equity
4. Others 926222 - -
9262224 44.75 125166 32543
4.75 104.75 860.00
(III) Profit -
distributio - - - 35941
n 2490162 249016 110400
629.5
9.56 29.56 00.006
1.Transfer
to surplus
reserve
2.Transfer
to general
reserve
3.Distributi -
ons to - - - 35941
owners 2490162 249016 110400
(or 629.59.56 29.56 00.00
sharehold 6
ers)
4. Others
(IV)
Transfers
within
owners’
equity
1.Capitaliza
tion of
capital
reserve
2.Capitaliza
tion of
surplus
reserve
3. Loss
offset by
surplus
reserve
4.Retaine
d earnings
carried
forward
from
changes
in defined
benefit
plans
5.Retaine
d earnings
carried
forward
from
other
comprehe
nsive
income
6.Others
(V)
Special
reserve
1.Transfer
to special
reserve in
the period
2.Amount
utilized in
the period
(VI)
Others
IV.Closing - 2334
balance of 1360104 35242179. 4843504 232447 100658
452756901.00 7977590.5 54215
the 339.28 57 53.52 6282.79 68.37
current 8 1.16
year
Half year of 2020
Total
Minority Owne
Equity attributable to owners of the Parent Company
interests r's
Item Equity
Other equity instruments Less: Other General
Paid-in capital Special Surplus Retained Sub-
Others
(or share capital) Preferred Perpetua
Capital reserve Treasury comprehensive risk total
Others reserve reserve profits
shares l bonds shares income reserve
I. Closing
balance of 19745 21242
1207942318. 2280022 28897582 14964930
the 451554411.00 3287063.85 59837. 09143.37 4.13 0.29 6.18
preceding 64 82
year
Add:
Changes in 1278734.8 12787 63222
-646507.57
accounting 8 34.88 7.31
policies
Correct
ions of prior
period errors
Busine
ss
combination
involving
entities
under
common
control
Others
II. Opening
19758 21248
balance of 1207942318. 2280022 29025455 14900279
451554411.00 3287063.85 38572. 41371.the current 37 4.13 5.17 8.61
52 13
year
III. Changes
for the year - - - -
(decrease is 16084702.84 1013815.20 19539137. 24406 21188011. 23628
indicated by 87 19.83 12 630.95
“-”)
(I) Total - -
14327442. 15341
comprehensi 1013815.20 22679851. 73385
ve income 96 258.16 76 93.60
(II) Owners’
contribution
16084 1491840.6 17576
s and 16084702.84
702.84 4 543.48
reduction in
capital
1. Ordinary
shares
contributed
by owners
2. Capital
contribution
from holders
of other
equity
instruments
3. Share-
based
payment 16084 1491840.6 17576
16084702.84
recognized 702.84 4 543.48
in owners'
equity
4. Others
(III) Profit - - -
distribution 33866580. 33866 33866
83 580.83 580.83
1. Transfer
to surplus
reserve
2. Transfer
to general
reserve
3.Distribution
- - -
s to owners
33866580. 33866 33866
(or
83 580.83 580.83
shareholders
)
4. Others
(IV)
Transfers
within
owners’
equity
1.Capitalizatio
n of capital
reserve
2.Capitalizatio
n 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
comprehensi
ve income
6.Others
(V) Special
reserve
1. Transfer
to special
reserve in
the period
2. Amount
utilized in
the period
(VI) Others
IV. Closing
19733 21012
balance of 1224027021. 2280022 27071541 12781478
451554411.00 4300879.05 97952. 12740.the current 21 4.13 7.30 7.49
69 18
year
Legal representative: BO Lianming Chief Accountant: WANG Yingxia Person in Charge of the Accounting Body: LIU Jie
Statement of Changes in Owners’ Equity of the Parent Company
Jan. - Jun. 2021
Unit: Yuan Currency: RMB
Half year of 2021
Paid-in capital Other equity instruments Less: Other
Item Special Surplus Retained Total Owner's
(or share Preferred Perpetual Capital reserve Treasury comprehensive
Others reserve reserve profits Equity capital) shares bonds shares income
I. Closing balance
of the preceding 452756901.00 1351261718.84 33964638.84 289684566.58 2127667825.26
year
Add: Changes in
accounting 349237.72 349237.72
policies
Corrections
of prior period
errors
Others
II. Opening
balance of the 452756901.00 1351261718.84 33964638.84 290033804.30 2128017062.98
current year
III. Changes for
the year (decrease 19006591.95 54035010.25 73041602.20
is indicated by “-”)
(I) Total
comprehensive 78936639.81 78936639.81
income
(II) Owners’
contributions and
19006591.95 19006591.95
reduction in
capital
1. Ordinary shares
contributed by
owners
2. Capital
contribution from
holders of other
equity instruments
3. Share-based
payment
19006591.95 19006591.95
recognized in
owners' equity
4. Others
(III) Profit
-24901629.56 -24901629.56
distribution
1. Transfer to
surplus reserve
2. Distributions to
owners (or -24901629.56 -24901629.56
shareholders)
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 period
(VI) Others
IV. Closing
balance of the 452756901.00 1370268310.79 33964638.84 344068814.55 2201058665.18
current year
Half year of 2020
Paid-in capital Other equity instruments Less: Other
Item Special Surplus Total Owner's
(or share Preferred Perpetual Capital reserve Treasury comprehensive Retained profits
Others reserve reserve Equity capital) shares bonds shares income
I. Closing
balance of the 451554411.00 1310939867.82 21522683.40 211573548.42 1995590510.64
preceding year
Add: Changes
in accounting
policies
Corrections
of prior period
errors
Others
II. Opening
balance of the 451554411.00 1310939867.82 21522683.40 211573548.42 1995590510.64
current year
III. Changes for
17576543.48 -14060669.51 3515873.97
the year
(decrease is
indicated by
“-”)
(I) Total
comprehensive 19805911.32 19805911.32
income
(II) Owners’
contributions
17576543.48 17576543.48
and reduction in
capital
1. Ordinary
shares
contributed by
owners
2. Capital
contribution
from holders of
other equity
instruments
3. Share-based
payment
17576543.48 17576543.48
recognized in
owners' equity
4. Others
(III) Profit
-33866580.83 -33866580.83
distribution
1. Transfer to
surplus reserve
2. Distributions
to owners (or -33866580.83 -33866580.83
shareholders)
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
period
(VI) Others
IV. Closing
balance of the 451554411.00 1328516411.30 21522683.40 197512878.91 1999106384.61
current year
Legal representative: BO Lianming Chief Accountant: WANG Yingxia Person in Charge of the Accounting Body: LIU Jie
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 and registered in Nanshan Branch of Shenzhen
Administration for Market Administration on October 24 2006 with the business license numbered
4403011245637. Upon establishment the registered capital of Appotronics Ltd. was RMB 100000. On
May 31 2018 the benchmark date Appotronics Ltd. was changed into a company limited by shares as a
whole. On July 20 2018 the Company completed the registration in Nanshan Branch of Shenzhen
Administration for Market Administration and headquartered in Shenzhen Guangdong Province. The
Company now holds the business license with the unified social credit code of 91440300795413991N and
has registered capital amounted to RMB 452756901.00. The Company has 452756901 shares in total
(with the par value of RMB 1 per share) comprising 169456766 restricted outstanding shares and
283300135 unrestricted outstanding shares. The Company’s shares were listed for trading on Shanghai
Stock Exchange on July 22 2019.The Company is in the industry of computer communication and other electronic equipment
manufacturing. It mainly engages in research and development production sales and services of laser
display core devices and complete equipment led by ALPD? laser display technology and architecture to
apply laser display technology to different scenarios as well as provision of laser film screening services
with its main products including among others laser cinema projectors laser TV smart mini projectors
laser business education projectors and large venue laser projectors.The financial statements herein have been approved by the Company’s second meeting of the second
board of directors on August 24 2021 for public disclosure.2. Scope of consolidated financial statements
√ Applicable□ N/A
22 subsidiaries being Appotronics Timewaying (Beijing) Technology Co. Ltd. Shenzhen
Appotronics Software Technology Co. Ltd. Shenzhen City Appotronics Xiaoming Technology Co. Ltd.Beijing Orient Appotronics Technology Co. Ltd. Fengmi (Beijing) Technology Co. Ltd. CINEAPPO
Laser Cinema Technology (Beijing) Co. Ltd. Shenzhen Appotronics Laser Display Technology Co. Ltd.Shenzhen Appotronics Laser Technology Co. Ltd. Qingda Appotronics (Xiamen) Technology Co. Ltd.Shenzhen Appotronics Home Line Technology Co. Ltd. Appotronics Hong Kong Limited Appotronics
USA Inc. Fabulus Technology Hong Kong Limited JoveAI Limited JoveAI Innovation Inc.Appotronics Technology (Changzhou) Co. Ltd. FORMOVIE TECHNOLOGY INC WEMAX LLC
Shenzhen Appotronics Display Device Co. Ltd. JoveAI Asia Company Limited Tianjin Bainian Film
Partnership (LP) and Fengmi (Chongqing) Innovation Technology Co. Ltd. are included by the Company
into the consolidated financial statements for the current period. Refer to descriptions in IIX 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:
√ 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
its actual production and operation characteristics.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 adopts RMB as its functional currency.5. The accounting treatment of business combinations involving entities under common control
and not involving entities under common control
√ Applicable□ N/A
1. Accounting treatment of business combinations involving entities under common control
Assets and liabilities acquired from a business combination by the Company are measured at the
carrying amounts 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 carrying amount of the owners’
equity of the acquiree as stated in the consolidated financial statements of the ultimate controller and the
carrying amount 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 not involving entities 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.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 presented in the statement of cash flows comprises cash on hand and deposits that can be readily
withdrawn on demand. Cash equivalents refer to the enterprise’s short-term 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
Asset and liability items on the balance sheet are translated at the spot exchange rate prevailing at thebalance 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 the accounts receivable if do not contain any significant
financing component or are recognized by the Company without taking into consideration the 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 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 equity 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 ① provision for impairment
losses determined according to the policy for impairment of financial instruments; and ② 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.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:
① the contractual right to receive cash flows from the financial assets has expired; or
② 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 when all or part of the outstanding
obligations thereon have been 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 carrying amount 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
carrying amount 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 carrying amount 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
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 accounts receivable and contract assets that arise from the transactions regulated
under the Accounting Standard for Business Enterprises No. 14 - Revenue that do not contain any
significant financing component or are recognized by the Company without taking into consideration the
financing components under the contracts with a term of less than one year the Company uses the simple
measurement method and recognizes a loss allowance equal to the lifetime expected credit loss.With respect to lease receivable as well as accounts receivable and contract assets that arise from the
transactions regulated under the Accounting Standard for Business Enterprises No. 14 - Revenue
containing significant financing components the Company uses the simple measurement method and
recognizes a loss allowance equal to the lifetime expected credit losses.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 carrying amount 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 carrying amount.
(2) Financial instruments for which expected credit risk is assessed and expected credit losses are
measured collectively
Item Basis for determining a group Method for measuring
expected credit losses
Other receivables - group of
By reference to historic credit
deposit and security receivable
Nature of receivables loss experience and taking
Other receivables- group of into account the current
withholding receivable situations and prediction of
Other receivables - group of Receivables from related future economic conditions
receivables from related parties parties in the scope of calculate the expected credit
in the scope of consolidation consolidation losses according to the default
Other receivables - grouping
Aging risk exposure and 12-month or
by aging
Item Basis for determining a group Method for measuring
expected credit losses
Long-term receivables - rate of lifetime expected credit
Aging
grouping by aging loss.
(3) Accounts receivable for which expected credit losses are measured collectively
1) Groups and method for measuring expected credit losses
Basis for determining a group Method for measuring expected
Item
credit losses
Bank acceptance bills receivable By reference to historic credit
Commercial acceptance bills Type of notes loss experience and taking into
receivable account the current situations
and prediction of future
economic conditions calculate
Accounts receivable - group of Receivables from related
the expected credit losses
receivables from related parties parties in the scope of
according to the default risk
in the scope of consolidation consolidation
exposure and rate of lifetime
expected credit loss.By reference to historic credit
loss experience and taking into
account the current situations
and prediction of future
Accounts receivable - grouping economic conditions prepare a
Aging
by aging comparison table of the aging of
accounts receivable 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
Contract assets - group of
Contract assets from related and prediction of future
contract assets from related
parties in the scope of economic conditions calculate
parties in the scope of
consolidation the expected credit losses
consolidation
according to the default risk
exposure and rate of lifetime
expected credit loss.By reference to historic credit
loss experience and taking into
account the current situations
and prediction of future
Contract assets - grouping by economic conditions prepare a
Aging
aging comparison table of the aging of
account assets and rate of
lifetime expected credit loss
and calculate the expected credit
losses.2) Accounts receivable - comparison table of the age of accounts receivable and rate of lifetime
expected credit loss
Accounts receivable
Aging Rate of expected credit loss for accounts
receivable (%)
Within 1 year (including the same below) 5.00
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
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 mainly include finished goods or commodities held for sale in the ordinary course of
businesses work in progress in the process of production or materials and supplies consumed in the
process of production or rendering service.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 realisable value. If
the net realisable value is below the cost of inventories a provision for decline in value of inventories is
made. 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
Low cost and short-lived consumable items are amortized using the immediate write-off method.
(2) Packaging materials
Low cost and short-lived consumable items 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 satisfaction of performance obligation and customers’ payment. The contract
assets and contract liabilities under the same contract are presented in net amount after offsetting each
other.The Company presents its owned right to unconditionally (that is only depending on the lapse of
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 unanimous consent of the parties
sharing control. Significant influence is the power to participate in the financial and operating policy
making of an entity 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 carrying amount 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 carrying
amount of the consideration paid for the combination or the total par value of the shares 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 carrying amount 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 carrying amount of long-term equity investment before
the combination and the carrying amount 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 entities
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.For a long-term equity investment acquired through a business combination not involving entities
under common control and 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 carrying amount 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 carrying amount 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 of
changes in net liabilities or net assets of defined benefit plans.
(3) In the event of no business combination: (3) 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 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.4. Disposal of investment in a subsidiary through multiple transactions by steps until loss of control
over the subsidiary
(1) Separate financial statements
The difference between the carrying amount of the equity disposed of and the proceeds of disposal
actually received is recognized in profit or loss for the current period. If the remaining equity empowers
the Company to exercise significant influence or joint control over the investee the remaining equity is
accounted for using the equity method; if the remaining equity does not empower the Company to exercise
control joint control or significant influence over the investee the remaining equity is accounted for in
accordance with the Accounting Standards for Business Enterprises No. 22 -- Recognition and
Measurement of Financial Instruments.
(2) Consolidated financial statements
1) Disposal of investment in a subsidiary through multiple transactions by steps until loss of control
over the subsidiary which does not constitute a package deal
Prior to the loss of control the difference between the proceeds from disposal and the share owned
by the Company in the net assets of the subsidiary in relation to the long-term equity investment disposed
of that is calculated continuously from the date of acquisition or combination is adjusted against the capital
reserve (capital premium). In case the capital premium is not sufficient to absorb the difference the
remaining balance is adjusted against the retained earnings.When losing control over a subsidiary the remaining equity is re-measured at its fair value at the date
of loss of control. The sum of the consideration received from the disposal of the equity and the fair value
of the remaining equity net of the share owned by the Company in the net assets of the subsidiary in
relation to the long-term equity investment disposed of as calculated continuously from the date of
acquisition or combination according to the previous shareholding ratio is recognized in the investment
income for the period in which the control is lost and the goodwill is reduced accordingly. Other
comprehensive income relating to the equity investment in the subsidiary is transferred to the investment
income for the period in which the control is lost.2) Disposal of investment in a subsidiary through multiple transactions by steps until loss of control
over the subsidiary which constitutes a package deal
The Company accounts for such transactions as one transaction to dispose of and lose its control over
the subsidiary. However the difference between the proceeds from each disposal before loss of control
and the share owned by the Company in the net assets of the subsidiary in relation to the investment
disposed of is recognized in other comprehensive income in the consolidated financial statements which
is wholly transferred to the profit or loss in the period in which the control is lost.22. Investment properties
(1). Measured at cost
Depreciation or amortization methods
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 value
Category depreciation rate
depreciation period (years) rate (%)
(%)
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. A 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.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. Period for capitalizing borrowing expenses
(1) Borrowing expenses are capitalized when all of the following conditions are met: 1) capital
expenditure has been incurred; 2) borrowing expenses 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 expenses 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 expenses 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 expenses
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
28. Use right assets
√ Applicable□ N/A
Refer to V.42 of Section X for details.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.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
30. Impairment of long-term assets
√ Applicable□ N/A
For long-term equity investments fixed assets construction in progress intangible assets with a finite
useful life use right assets 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 carrying amount 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 satisfaction of performance obligation and customers’ payment. The contract
assets and contract liabilities under the same contract are presented in net amount after offsetting each
other..The Company presents the obligations to transfer goods to customers for the consideration received
or receivable from customers as the contract liabilities.33. Employee benefits
The Employee benefits encompass short-term employee benefits post-employment benefits
termination benefits and other long-term employee benefits.
(1) Accounting treatment of short-term employee benefits
√ Applicable□ N/A
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
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 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
When the Company can no longer withdraw the offer of termination benefits as a result of termination
of employment or redundancy or recognizes the restructuring costs or expenses relating to payment of
termination benefits whichever the earlier the employee benefit liabilities arising from recognition of
termination benefits are recognized in profit or loss for the current period.
(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 long-term
employee benefits and other components is included in profit or loss for the current period or the cost of
related assets.34. Leasing liabilities
√ Applicable□ N/A
Refer to V.42 of Section X for details.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 carrying amount 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
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) Cash-settled share-based payments
Cash-settled share-based payments in exchange for services rendered by employees that can be
executed immediately upon being granted are recognized as related costs or expenses based on the fair
value of liabilities assumed by the Company at the grant date with a corresponding increase in liability.At each balance sheet date during the vesting period cash-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 liabilities assumed by
the Company based on the best estimate of exercisable conditions and recognized as related costs or
expenses and relevant liabilities.
(3) Modification and termination of share-based payment plan
In case the Company modifies a 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
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 irresplaceable
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 revenue based on the transaction price allocated to each individual
performance obligation. 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 such transaction price and the contract consideration is amortized over
the period of the contract using the effective interest method. 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; for goods sold to lower-tier end customers whose
selling profits are shared by the Company the Company recognizes the revenue when such goods are
delivered to the customers and reconciliation is conducted according to the mutually predetermined price
of the goods and recognizes the share of the profits when the selling profits of the goods are realized
according to the share statement. 2) Under the commissioned sales model 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) 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
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 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
1. Costs for contract acquisition
The incremental costs incurred for acquiring the contract (i.e. costs that will not be incurred without
acquisition of the contractt) are recognized as an asset if they are expected to be recovered and are
amortized on the same basis as that for recognizing the revenue of goods or services relating to such asset
and included in the current profit or loss. Where the amortization period for such asset is less than one
year the Company includes the costs in the current profit or loss when they are incurred. Other
expenditures incurred by the Company for obtaining the contract are included in current profit or loss
when they are incurred except for those specified to be borne by the customer.2. Costs for contract performance
The costs incurred by the Company for performing a contract are recognized as an asset if they do
not fall within the scope of Accounting Standards for Business Enterprises other than those concerning
revenue and meet all the following conditions: (1) the costs are directly related to a present or expected
contract; (2) the costs lead to the increase in resources of the Company for fulfilling its performance
obligations in the future; and (3) the costs are expected to be recovered. The aforesaid asset is amortized
on the same basis as that for recognizing the revenue of goods or services relating to such asset and
included in the current profit or loss.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 carrying
amount 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.
(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 carrying amount (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 carrying amount) 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 income 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 carrying amount of deferred income 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 income taxes are included in profit or loss for the current period as
income tax expenses or gains except the income taxes arising from any: (i) business combination; or (ii)
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 new lease standards
√ Applicable□ N/A
A contract whereby the Company transfers or obtains the right to control the use of one or more
identified assets for a certain period of time in exchange for consideration or against payment of
consideration is a lease. On the commencement date of a contract the Company assesses whether the
contract is a lease or includes a lease.1. The Company as lessee
(1) Initial measurement
On the lease inception date except short-term leases and low-value assets leases the Company
recognizes the right to use the leased asset during the lease term as use right assets and recognizes the
present value of the lease payments that have not been paid as lease liabilities. When calculating the
present value of the lease payments the interest rate implicit in the lease is adopted as the discount rate;
or the lessee’s incremental borrowing rate is adopted as the discount rate where it is unable to determine
the interest rate implicit in the lease.
(2) Subsequent measurement
The Company accrues depreciation for the use right assets using the straight-line method. Where
there is reasonable certainty that the Company will obtain ownership of the leased assets upon expiry of
the lease term the leased assets are depreciated over its residual useful life. Where there is no reasonable
certainty that the Company will obtain ownership of the leased assets upon expiry of the lease term the
leased assets are depreciated over the lease term or the residual useful life of the leased assets whichever
is shorter.As to a lease liability the Company calculate the interest expense of the lease liability during each
period of the lease term according to the fixed periodic interest rate and include it in the current profit or
loss or the relevant asset costs. Variable lease payment not included in the measurement of lease liability
is included in the current profit or loss or the relevant asset costs when actually incurred.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 use right 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.
(3) Short-term lease and low-value assets lease
For short-term lease (a lease with a lease term of not more than 12 months from the lease inception
date) and low-value assets lease the Company adopts simplified treatment method and does not recognize
the use right assets and lease liability who instead includes the lease payment therefor in the relevant asset
costs and the current profit or loss by the straight-line method or other systematic method during all periods
in the lease term.2. The Company as lessor
A lease is classified into finance lease or operating lease on the lease inception date based on the
substance of the transaction. Financing lease means a lease that has substantially transferred almost all
risks and remunerations concerning the ownership of the leased assets. Operating lease means a lease other
than financing lease.
(1) Operating lease
The Company recognizes the lease receipts of operating lease as rental income by the straight-line
method during all periods in the lease term. Variable lease payment that is relevant to operating lease and
that is not included in lease receipts is included in the current profit or loss when actually incurred.
(2) Finance lease
On the lease inception date the Company recognizes the receivable financing lease and
derecognizes the financing leased assets. The receivable financing lease is initially measured according to
the net investment in the lease (i.e. the sum of the unguaranteed residual value and the unreceived present
lease receipts discounted at the interest rate implicit in the lease on the lease inception date) and the
interest income during the lease term is calculated and recognized at the fixed periodic interest rate.Variable lease payment of the Company not included in the measurement of net investment in the lease is
included in the current profit or loss when actually incurred.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
Remarks (name and amount of
Changes in accounting policies and line items in financial
Approval procedures
associated reasons statements that have been
materially affected)
Implement the Accounting Standard for Approved by the Refer to V. 44. (3) for details
Business Enterprises No. 21 - Leases management of the
(Cai Kuai [2018] No. 35) amended and Company
released by the Ministry of Finance
Other description:
Since January 1 2021 the Company has implemented the Accounting Standards for Business
Enterprises No. 21 - Leases (Cai Kuai [2018] No. 35) (“New Lease Standards”) amended by the
Ministry of Finance. In accordance with relevant transitional provisions with respect to the old and new
standards the information for the comparative period is not adjusted and the retained earnings and
amounts of other relevant items in the financial statements at the beginning of the reporting period are
retrospectively adjusted according to the cumulative effect from implementing the New Lease Standards
on the first implementation date.
(2). Changes in significant accounting estimates
□ Applicable√ N/A
(3). Description of adjustments in opening balances of line items in financial statements of the year
due to implementation of the New Lease Standards since 2021
√ Applicable□ N/A
Consolidated Balance Sheet
Unit: Yuan Currency: RMB
December 31
Item January 1 2021 Adjusted amount2020
Current Assets:
Cash and bank balances 1037760573.27 1037760573.27
Balances with clearing
agencies
Placements with banks and
other financial institutions
Held-for-trading financial
114000000.00 114000000.00
assets
Derivative financial assets
Notes receivable 3726328.91 3726328.91
Accounts receivable 341660832.43 341660832.43
Receivables financing 11959000.00 11959000.00
Prepayments 47447601.43 49174631.52 1727030.09
Premiums receivable
Amounts receivable under
reinsurance contracts
Reinsurer's share of insurance
contract reserves
Other receivables 12534062.15 12534062.15
Including: Interest receivable
Dividends receivable
Financial assets purchased
under resale agreements
Inventories 418812140.80 418812140.80
Contract assets 3744655.50 3744655.50
Held-for-sale assets
Non-current assets due within
one year
Other current assets 13002195.46 13002195.46
Total Current Assets 2004647389.95 2006374420.04 1727030.09
Non-current Assets:
Loans and advances
Debt investments
Other debt investments
Long-term receivables 13196087.78 13196087.78
Long-term equity investments 262744772.48 262744772.48
Other equity instrument
11975419.38 11975419.38
investments
Other non-current financial
assets
Investment properties
Fixed assets 447571328.91 447571328.91
Construction in progress 51576850.72 51576850.72
Bearer biological assets
Oil and gas assets
Use right assets 39368070.17 39368070.17
Intangible assets 320488235.60 320488235.60
Development expenditure
Goodwill
Long-term prepaid expenses 11572346.79 11572346.79
Deferred tax asset 96132114.02 96455790.38 323676.36
Other non-current assets 6299781.06 6299781.06
Total Non-current Assets 1221556936.74 1261248683.27 39691746.53
Total assets 3226204326.69 3267623103.31 41418776.62
Current Liabilities:
Short-term borrowings 88778852.86 88778852.86
Loans from the central bank
Taking from banks and other
financial institutions
Held-for-trading financial
liabilities
Derivative financial liabilities
Notes payable 116822674.67 116822674.67
Accounts payable 226494815.90 226494815.90
Receipts in advance 153258189.88 153258189.88
Contract liabilities 31518312.59 31518312.59
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 46105566.15 46105566.15
Taxes payable 19871846.94 19871846.94
Other payables 59848053.83 58821952.01 -1026101.82
Including: Interest payable
Dividends payable
Fees and commissions payable
Amounts payable under
reinsurance contracts
Held-for-sale liabilities
Non-current liabilities due 200024423.85 18607011.39
181417412.46
within one year
Other current liabilities 3045831.07 3045831.07
Total Current Liabilities 927161556.35 944742465.92 17580909.57
Non-current Liabilities:
Insurance contract reserves
Long-term borrowings 64845281.53 64845281.53
Bonds payable
Including: Preferred shares
Perpetual bonds
Leasing liabilities 23804845.36 23804845.36
Long-term accounts payable 3262450.00 3262450.00
Long-term employee benefits
payable
Provisions 28799354.65 28799354.65
Deferred income 16723257.15 16723257.15
Deferred tax liabilities
Other non-current liabilities
Total Non-current Liabilities 113630343.33 137435188.69 23804845.36
Total Liabilities 1040791899.68 1082177654.61 41385754.93
Owners' (or Shareholders') Equity:
Paid-in capital (or share
452756901.00 452756901.00
capital)
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve 1249020991.15 1249020991.15
Less: Treasury shares
Other comprehensive income -3214291.93 -3214291.93
Special reserve
Surplus reserve 35242179.57 35242179.57
General risk reserve
Retained profits 357793891.96 357838162.29 44270.33
Total owners’ (or
shareholders’) equity attributable 2091599671.75 2091643942.08 44270.33
to owners of the Parent Company
Minority interests 93812755.26 93801506.62 -11248.64
Total Owners’ (or
2185412427.01 2185445448.70 33021.69
Shareholders’) Equity
Total Liabilities and
Owners’(or Shareholders’) 3226204326.69 3267623103.31 41418776.62
Equity
Description of adjustments on each line item:
√ Applicable□ N/A
Since January 1 2021 the Company has implemented the New Lease Standards for the first time
recognized the use right assets and lease liabilities and adjusted relevant items in the financial
statements..Balance Sheet of the Parent Company
Unit: Yuan Currency: RMB
Item December 31 2020 January 1 2021 Adjusted amount
Current Assets:
Cash and bank balances 709932686.71 709932686.71
Held-for-trading financial
114000000.00 114000000.00
assets
Derivative financial assets
Notes receivable 2314628.91 2314628.91
Accounts receivable 567539506.79 567539506.79
Receivables financing 100000.00 100000.00
Prepayments 11001439.23 13163045.06 2161605.83
Other receivables 71654117.57 71654117.57
Including: Interest receivable
Dividends receivable
Inventories 169022971.44 169022971.44
Contract assets 3720160.50 3720160.50
Held-for-sale assets
Non-current assets due within
one year
Other current assets 1297388.01 1297388.01
Total Current Assets 1650582899.16 1652744504.99 2161605.83
Non-current Assets:
Debt investments
Other debt investments
Long-term receivables 13196087.78 13196087.78
Long-term equity investments 421648284.99 421648284.99
Other equity instrument
7075419.38 7075419.38
investments
Other non-current financial
assets
Investment properties
Fixed assets 57409189.33 57409189.33
Construction in progress 37982329.74 37982329.74
Bearer biological assets
Oil and gas assets
Use right assets 29494047.23 29494047.23
Intangible assets 319438893.42 319438893.42
Development expenditure
Goodwill
Long-term prepaid expenses 9562162.36 9562162.36
Deferred tax asset 6680188.67 7000018.34 319829.67
Other non-current assets 5411561.28 5411561.28
Total Non-current Assets 878404116.95 908217993.85 29813876.90
Total assets 2528987016.11 2560962498.84 31975482.73
Current Liabilities:
Short-term borrowings 11410560.27 11410560.27
Held-for-trading financial
liabilities
Derivative financial liabilities
Notes payable 32313678.21 32313678.21
Accounts payable 210885240.65 210885240.65
Receipts in advance 2688210.54 2688210.54
Contract liabilities 20609190.34 20609190.34
Employee benefits payable 28514763.09 28514763.09
Taxes payable 5830858.89 5830858.89
Other payables 23058804.83 23058804.83
Including: Interest payable
Dividends payable
Held-for-sale liabilities
Non-current liabilities due 15192394.42 14191369.76
1001024.66
within one year
Other current liabilities 1918391.60 1918391.60
Total Current Liabilities 338230723.08 352422092.84 14191369.76
Non-current Liabilities:
Long-term borrowings 29029715.07 29029715.07
Bonds payable
Including: Preferred shares
Perpetual bonds
Leasing liabilities 17434875.25 17434875.25
Long-term accounts payable 3262450.00 3262450.00
Long-term employee benefits
payable
Provisions 16345891.60 16345891.60
Deferred income 14450411.10 14450411.10
Deferred tax liabilities
Other non-current liabilities
Total Non-current 80523343.02 17434875.25
63088467.77
Liabilities
Total Liabilities 401319190.85 432945435.86 31626245.01
Owners' (or Shareholders') Equity:
Paid-in capital (or share
452756901.00 452756901.00
capital)
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve 1351261718.84 1351261718.84
Less: Treasury shares
Other comprehensive income
Special reserve
Surplus reserve 33964638.84 33964638.84
Retained profits 289684566.58 290033804.30 349237.72
Total Owners’ (or
2127667825.26 2128017062.98 349237.72
Shareholders’) Equity
Total Liabilities and
Owners’(or Shareholders’) 2528987016.11 2560962498.84 31975482.73
Equity
Description of adjustments on each line item:
√ Applicable□ N/A
Since January 1 2021 the Company has implemented the New Lease Standards for the first time
recognized the use right assets and lease liabilities and adjusted relevant items in the financial
statements.
(4). Description of retrospective adjustments on comparable data in previous periods upon the first
implementation of the New Lease Standards from 2021
□ 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 output tax
based on the sales of goods and
taxable labor income calculated
Value-added tax (VAT) 3% 6% 9% 13%
pursuant to the tax law net of the
input tax that is allowed to be
deducted in the current period
City maintenance and
Turnover tax payable 5% 7%
construction tax
8.25% 8.70% 8.84% 15%
Enterprise income tax Taxable income
16.5% 20% 21% 25%
Education surcharges Turnover tax payable 3%
Local education surcharges Turnover tax payable 2%
Disclosure of taxpayers with different rates of enterprise income tax:
√ Applicable□ N/A
Taxpayer Rate of enterprise income tax (%)
Appotronics Corporation Limited 15.00
Fengmi (Beijing) Technology Co. Ltd. 15.00
Appotronics Hong Kong Limited 8.25 16.50
Beijing Orient Appotronics Technology Co. Ltd. 20.00
Fabulus Technology HongKong Limited 16.50
JoveAI InnovationInc. 8.70 8.84 21.00
Appotronics USAInc. 21.00
FORMOVIE TECHNOLOGY INC 21.00
JoveAI Limited Tax exemption
WEMAX LLC 21.00
Shenzhen Appotronics Display Device Co. Ltd. 20.00
Appotronics Technology (Changzhou) Co. Ltd. 20.00
Appotronics Timewaying (Beijing) Technology 20.00
Co. Ltd.Qingda Appotronics (Xiamen) Technology Co. 20.00
Ltd.Shenzhen Appotronics Home Line Technology 20.00
Co. Ltd.Shenzhen Appotronics Laser Technology Co. 20.00
Ltd.Shenzhen Appotronics Xiaoming Technology Co. 20.00
Ltd.JoveAI Asia Company Limited 20.00
Tianjin Bainian Film Partnership (LP) Tax exemption
Other taxpayers except above 25.00
Note:
1. Appotronics Hong Kong Limited was incorporated in Hong Kong. One of related entities in Hong
Kong 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 16.5% for the remaining taxable income.2. JoveAI Limited as incorporated in the Cayman Islands is exempt from enterprise income tax.3. Appotronics USA Inc. as incorporated in the United States applies the federal enterprise income
tax rate of 21%.4. JoveAI Innovation Inc. as incorporated 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 incorporated in the United States applies the federal
enterprise income tax rate of 21%.6. JoveAI Asia Company Limited as incorporated in Vietnam applies the enterprise income tax rate
of 20%.7. WEMAX LLC as incorporated in the United States applies the federal enterprise income tax rate
of 21%.2. Tax incentives
√ Applicable□ N/A
1. On December 9 2019 the Company obtained the High-tech Enterprise Certificate (Certificate No.:
GR201944204257) 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 can pay the enterprise income tax at a rate of 15% from 2019 to
2021.2. On November 30 2018 Fengmi (Beijing) Technology Co. Ltd. obtained the High-tech Enterprise
Certificate (Certificate No.: GR201811009590) 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. It can pay the enterprise income tax at a rate of 15% since
2019.3. 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.Shenzhen Appotronics Software Technology Co. Ltd. is qualified for enjoying such tax incentive from
January 1 2015.4. In accordance with Article 1 (26) of Annex 3 of the Notice of the Ministry of Finance and the State
Administration of Taxation on Implementing the Pilot Program of Replacing Business Tax with Value-
Added Tax in an All-round Manner (Cai Shui [2016] No.36) taxpayers are exempted from VAT if they
provide technology transfer technology development and technology consultation and services in
connection therewith. The Company is qualified for enjoying such tax incentive from January 26 2018.5. In accordance with the Announcement of the Ministry of Finance and the State Taxation
Administration on Implementing Preferential Income Tax Policies for Micro and Small Enterprises and
Individual Industrial and Commercial Households (2021 No.13) from January 1 2021 to December 31
2022 the annual taxable income of a small low-profit enterprise that is not more than RMB 1 million shall
be included in its taxable income at the reduced rate of 12.5% with the applicable enterprise income tax
rate of 20%; from January 1 2019 to December 31 2021 the annual taxable income that is not less than
RMB 1 million nor not more than RMB 3 million shall be included in its taxable income at the reduced
rate of 50% with the applicable enterprise income tax rate of 20%. The following subsidiaries are qualified
for enjoying such tax incentives: Beijing Orient Appotronics Technology Co. Ltd. Shenzhen Appotronics
Display Device Co. Ltd. Appotronics Technology (Changzhou) Co. Ltd. Appotronics Timewaying
(Beijing) Technology Co. Ltd. Qingda Appotronics (Xiamen) Technology Co. Ltd. Shenzhen
Appotronics Home Line Technology Co. Ltd. Shenzhen Appotronics Laser Technology Co. Ltd. and
Shenzhen Appotronics Xiaoming Technology Co. Ltd..3. Others
□ Applicable√ N/A
VII. Notes to items in the consolidated financial statements
1. Cash and bank balances
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Cash on hand 5847.50 5858.56
Bank deposits 895755732.73 1020747657.62
Other monetary funds 28118672.98 17007057.09
Total 923880253.21 1037760573.27
Including: Total
32313655.39 78611378.23
oversea deposits
Other description:
In other monetary funds an amount of RMB 20292090.37 is restricted for being used as margins;
while in bank deposits an amount of RMB 40000000.00 as time deposit is restricted for being used.2. Held-for-trading financial assets
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Financial assets at fair value through 420000000.00 114000000.00
profit or loss
Including:
Structural deposits 420000000.00 114000000.00
Designated as financial assets at fair 37982988.00
value through profit or loss
Including:
Performance compensation 37982988.00
Total 457982988.00 114000000.00
Other description:
√ Applicable□ N/A
Performance compensation refers to the consideration of compensation for performance that is required
to be fulfilled by GDC Cayman to the non-majority-owned company GDC BVI in response to the failure
of GDC BVI to fulfill the performance commitment in 2020.3. 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 700000.00 950000.00
Commercial acceptances 3098593.29 2776328.91
Total 3798593.29 3726328.91
(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
Unit: Yuan Currency: RMB
Amount derecognized at the end Amount not derecognized at the
Item
of the period end of the period
Bank acceptances 250000.00
Commercial acceptances 1409666.52
Total 1659666.52
(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 bad Provision for bad
Carrying amount Carrying amount
debts debts
Category Proportion Book Book
Proportion
Proporti of value Proportion value
Amount Amount Amount Amount of provision
on (%) provision (%)
(%)
(%)
Provision
for bad
3961677.1 3798593 3872451.4 3726328
debts 100.00 163083.86 4.12 100.00 146122.57 3.77
5 .29 8 .91
made by
group
Including:
Bank
700000.0 950000.0
acceptance 700000.00 17.67 950000.00 24.53
0 0
bills
Commerci
al 3261677.1 3098593 2922451.4 2776328
82.33 163083.86 5.00 75.47 146122.57 5.00
acceptance 5 .29 8 .91
s
3961677.1 3798593 3872451.4 3726328
Total / 163083.86 / / 146122.57 /
5 .29 8 .91
Provision for bad debts made individually:
□ Applicable√ N/A
Provision for bad debts made by group:
√ Applicable□ N/A
Item by group: Bank acceptance bills and commercial acceptances
Unit: Yuan Currency: RMB
Closing balance
Name Proportion of provision
Notes receivable Provision for bad debts
(%)
Bank acceptance bills 700000.00
Commercial 5.00
3261677.15 163083.86
acceptances
Total 3961677.15 163083.86 4.12
Recognition criterion to make the bad debt provision by group and explanation
□ Applicable√ N/A
If a provision for bad debts of accounts receivable is made in accordance with the general model of ECL
please disclose relevant information subject to the disclosure of the bad debt provision for other
receivables.□ Applicable√ N/A
(6). Provision for bad debts
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Changes for the current period
Opening Closing
Category Recovery or Write off or
balance Provision balance
reversal cancellation
Commercial 146122.57 16961.29 163083.86
acceptances
Total 146122.57 16961.29 163083.86
Including significant amounts recovered or reversed from the current provision for bad debts:
□ Applicable√ N/A
Other description:
None
(7). Notes receivable actually canceled in the current period
□ Applicable√ N/A
Other description:
□ 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: Subitems within 1 year
Sub-total of items within 1 year 175413179.70
1 to 2 years 1079789.28
2 to 3 years 2203450.00
Over 3 years 230200.00
Total 178926618.98
(2). Disclosure by categories of provision for bad debts
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance
Category Provision for bad Book Provision for bad Book
Carrying amount Carrying amount
debts value debts value
Proportio Proportio
Proportio n of Proportio n of
Amount Amount Amount Amount
n (%) provision n (%) provision
(%) (%)
Provision
for bad
178926618.9 10372756.8 168553862.0 361346260.8 19685428.4 341660832.4
debts 100.00 5.80 100.00 5.45
8 9 9 9 6 3
made by
group
Including:
Accounts
receivabl
e for
which the
provision 178926618.9 10372756.8 168553862.0 361346260.8 19685428.4 341660832.4
100.00 5.80 100.00 5.45
for bad 8 9 9 9 6 3
debts is
made by
aging
group
178926618.9 10372756.8 168553862.0 361346260.8 19685428.4 341660832.4
Total / / / /
8 9 9 9 6 3
Provision for bad debts made individually:
□ Applicable√ N/A
Provision for bad debts made by group:
√ Applicable□ N/A
Item by group: provision for bad debts made by aging group
Unit: Yuan Currency: RMB
Closing balance
Name Proportion of provision
Accounts receivable Provision for bad debts
(%)
Within 1 year 175413179.70 8770884.57 5.00
1-2 years 1079789.28 269947.32 25.00
2-3 years 2203450.00 1101725.00 50.00
Over 3 years 230200.00 230200.00 100.00
Total 178926618.98 10372756.89 5.80
Recognition criterion to make the bad debt provision by group and explanation:
□ Applicable√ N/A
If a provision for bad debts of accounts receivable is made in accordance with the general model of
ECL please disclose relevant information subject to the disclosure of the bad debt provision for 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 -
19685428.46 10372756.89
debts made 9312671.57
by group
Total -
19685428.46 10372756.89
9312671.57
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
(5). Top five closing balances of accounts receivable categorized by debtors
√ Applicable□ N/A
Proportion to the
balance of
accounts Provision for
Entity Carrying amount receivable (%) bad debts
Xiaomi Communications Technologies Co. 54205349.26 30.29 2710267.46
Ltd. and its affiliates
BARCO NV and its affiliates 19429915.61 10.86 971495.78
Beijing Jingdong Century Trading Co. Ltd. 14611460.67 8.17 730573.03
Shenzhen Nearbyexpress Technology 12935095.24 7.23 646754.76
Development Company Limited
WeCast Technology Corp. and its affiliates 6220785.59 3.48 311039.28
Sub-total 107402606.37 60.03 5370130.31
(6). Accounts receivable derecognized due to transfer of financial assets
□ Applicable√ N/A
(7). Assets and liabilities arising from transfer of accounts receivable and continued involvement
□ Applicable√ N/A
Other description:
□ Applicable√ N/A
6. Receivables financing
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Bank acceptance bills receivable 1214306.00 11959000.00
Total 1214306.00 11959000.00
Changes in amount and fair value of receivables financing:
□ Applicable√ N/A
If a provision for bad debts of accounts receivable is made in accordance with the general model of
ECL please disclose relevant information subject to the disclosure of the bad debt provision for other
receivables:
□ Applicable√ N/A
Other description:
□ Applicable√ N/A
7. Prepayments
(1). Disclosure of prepayments by aging
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance
Aging
Amount Proportion (%) Amount Proportion (%)
Within 1 year 80287925.92 95.83 45488048.90 92.50
1 to 2 years 3493196.62 4.17 3686582.62 7.50
2 to 3 years
Over 3 years
Total 83781122.54 100.00 49174631.52 100.00
Reasons for overdue settlement of prepayments with significant amounts aged more than 1 year:
Entity Closing balance Reasons for no settlement
China Film Equipment 1851026.53 The settlement time has not
Corporation and its affiliates come
Sub-total 1851026.53
(2). Top five closing balances of prepayments categorized by receivers
√ Applicable□ N/A
Proportion to the balance of
Entity Carrying amount
prepayments (%)
CVTE Group and its affiliates 40529310.39 48.37%
NEO Chinontec Co. Ltd. 16463155.65 19.65%
Kyocera SLD Laser Inc 5814090.00 6.94%
Matsubayashi Optics (GUANGZHOU) Co. Ltd. 2230439.33 2.66%
Shenzhen Colorwin Optical Technology Co. Ltd. 1997957.53 2.38%
Sub-total 67036032.90 80.00%
Other description
√ Applicable□ N/A
[Note] Refer to the description in V. 44 of Section X for details of the difference between the opening
balance of this period and the closing balance of prior year (as at December 31 2020)
8. Other receivables
Presented by items
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Interest receivable
Dividends receivable
Other receivables 10381304.06 12534062.15
Total 10381304.06 12534062.15
Other description:
□ 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 description:
□ Applicable√ N/A
Dividends receivable
(1). Dividends receivable
□ Applicable√ N/A
(2). Dividends receivable with significant amounts aged more than 1 year
□ Applicable√ N/A
(3). Provision for bad debts
□ Applicable√ N/A
Other description:
□ 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
Sub-total of items within 1 year 4797839.31
1 to 2 years 254134.25
2 to 3 years 4688537.95
Over 3 years 1162166.40
Total 10902677.91
(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 9425783.99 8832850.67
Withholding 465219.20 380123.97
Temporary receivables 1011674.72 383488.89
Indemnity receivable 3577279.61
Total 10902677.91 13173743.14
(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 639680.99 639680.99
January 1 2021
Balance as at
January 1 2021 in
the current period
--transferred to
Stage II
--transferred to
Stage III
--reversed to
Stage II
--reversed to
Stage I
Provision -118307.14 -118307.14
Reversal
Write-off
Cancellation
Other changes
Balance as at June 521373.85 521373.85
30 2021
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 bad debt provisions 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 Write off or Other
balance Provision balance
or reversal cancellation changes
Provision for 639680.99 -118307.14 521373.85
bad debts
made by
group
Total 639680.99 -118307.14 521373.85
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
Provision
Proportion to the for bad
Nature of other Closing
Entity Aging balance of other debts
receivables balance
receivables (%) closing
balance
Shenzhen Meisheng Deposits/margins/petty
3574618.00 2-3 years 32.79 178730.90
Industry Co. Ltd. cash
Shenzhen Science
1-2 yea
and Technology Deposits/margins/petty
1310675.20 rs over 12.02 65533.76
Assessment cash
3 years
Management Center
Hong Kong Science
Deposits/margins/petty
& Technology 1011329.11 2-3 years 9.28 50566.46
cash
Parks Corporation
Beijing Dongsheng
Bozhan Technology Deposits/margins/petty Within 1
816155.64 7.49 40807.77
Development Co. cash year
Ltd.Qingdao Haier
Deposits/margins/petty Within 1
Multimedia Co. 500000.00 4.59 25000.00
cash year
Ltd.Total / 7212777.95 / 66.17 360638.89
(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 description:
□ Applicable√ N/A
9. Inventories
(1). Categories of inventories
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance
Provision for Provision for
decline in value of decline in value of
Item Carrying Carrying
inventories/impairm Book value inventories/impairm Book value
amount amount
ent of contract ent of contract
performance cost performance cost
Raw 451338805. 17326482.85 434012322. 243262463. 12343116.67 230919347.materials 08 23 77 10
Work in 41741766.1 4342479.86 37399286.3 23130163.7 533475.37 22596688.3
progress 9 3 2 5
Goods on 139693333. 13191411.80 126501921. 152306656. 17204698.44 135101957.hand 22 42 10 66
Goods 25658485.7 570764.05 25087721.7 15345357.0 15345357.0
upon 8 3 8 8
delivery
Materials 17369489.5 207806.17 17161683.4 15064657.0 215866.48 14848790.6
for 7 0 9 1
consigned
processing
Contract 2145002.14 729907.80 1415094.34
performan
ce cost
Total 677946881. 36368852.53 641578029. 449109297. 30297156.96 418812140.98 45 76 80
(2). Provision for decline in value of inventories and impairment of contract performance cost
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Increase Decrease
Opening Closing
Item Reversal or
balance Provision Others Others balance
write-off
Raw
12343116.67 6673723.18 1690357.00 17326482.85
materials
Work in
533475.37 4237522.32 428517.83 4342479.86
progress
Goods on
17204698.44 4130260.78 8143547.42 13191411.80
hand
Goods upon
570764.05 - 570764.05
delivery
Materials
for
215866.48 192220.04 200280.35 207806.17
consigned
processing
Contract
performance 729907.80 - 729907.80
cost
Total 30297156.96 16534398.17 10462702.60 36368852.53
(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 description:
□ Applicable√ N/A
10. Contract assets
(1). Description of contract assets
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Carrying Provision for Carrying Provision for
Book value Book value
amount impairment amount impairment
Warranties
280586.00 172869.30 107716.70 492467.50 181635.38 310832.12
receivable
Goods payment 3741658.43 1460882.81 2280775.62 4842771.16 1408947.78 3433823.38
Total 4022244.43 1633752.11 2388492.32 5335238.66 1590583.16 3744655.50
(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 off/cancellation Reason
in the period
Provision made by 43168.95
group
Total 43168.95 /
If a provision for bad debts is made in accordance with the general model of ECL please disclose
relevant information subject to the disclosure of other receivables.□ Applicable√ N/A
Other description:
√ Applicable□ N/A
Aging Closing balance
Carrying amount Provision for Proportion of provision
impairment (%)
Within 1 year 1024378.00 51218.90 5.00
1 to 2 years - - 25.00
2 to 3 years 2830666.43 1415333.21 50.00
Over 3 years 167200.00 167200.00 100.00
Total 4022244.43 1633752.11 40.62
11. Held-for-sale assets
□ Applicable√ N/A
12. Non-current assets due within one year
□ Applicable√ N/A
13. Other current assets
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Cost of returns receivable 1072633.94 1381990.01
Input VAT to be deducted 48620388.82 11338961.82
Prepaid enterprise income tax 281243.63
Total 49693022.76 13002195.46
Other description:
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
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 description:
□ Applicable√ N/A
16. Long-term receivables
(1) Description of long-term receivables
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance
Discount
Provision Provision
Item Carrying Carrying rate
for bad Book value for bad Book value
amount amount range
debts debts
Proceeds
from sales
15000000.00 750000.00 14250000.00 15000000.00 750000.00 14250000.00
of goods by
installment
Less:
Unearned
754054.04 754054.04 1053912.22 1053912.22
financing
income
Total 14245945.96 750000.00 13495945.96 13946087.78 750000.00 13196087.78 /
(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 Lifetime ECL (with Total
debts (without credit
in the future credit impairment)
impairment)
Balance as at 750000.00 750000.00
January 1 2021
Balance as at
January 1 2021 in
the current period
--transferred to
Stage II
--transferred to
Stage III
--reversed to
Stage II
--reversed to
Stage I
Provision
Reversal
Write-off
Cancellation
Other changes
Balance as at June 750000.00 750000.00
30 2021
Description of significant changes in the carrying amount of long-term receivables with changed
provisions for losses in the current period:
□ Applicable√ N/A
Basis for recognizing the amount of bad debt provisions 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 description:
□ Applicable√ N/A
17. Long-term equity investments
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Changes for the current period Closing
Investmen Declared balance of
Additiona Adjustment in Other Provision
Opening Decreased t profit or cash Closing provision
Investees l other equity for
balance investmen loss under dividend Others balance for
investmen comprehensiv change impairmen
t equity s or impairmen
t e income s t
method profits t
I. Joint
venture
Sub-total
II.Associates
Cinionic -131406424.6 1686237.8 129147386.4
-2611934.25 1333341.8
Limited 4 8 4 3
GDC
-
Technolog 131338347.8 5260676.5 136753066.2
1394857.33 1240815.4
y Limited 4 0 3 4
(BVI)
Sub-total -262744772.4 6946914.3 265900452.6
-1217076.92 2574157.2
8 8 77
-
262744772.4 6946914.3 265900452.6
Total -1217076.92 2574157.2
8 8 77
Other description
Others represent the conversion rate difference in long-term equity investments.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. 4900000.00 4900000.00
Total 11975419.38 11975419.38
(2). Description of equity investments not held for trading
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Dividen Amount Reasons for Reasons for
d transferred being transferring
income Aggregat from other designated as other
Aggregat
Item recogniz e gains or comprehensiv at fair value comprehensiv
e losses
ed in the losses e income to through other e income to
current retained comprehensiv retained
period earnings e income earnings
Shen Zhen As per the
Timewaying intention for
Technology holding of the
Co. Ltd. management
Shenzhen As per the
Bevix intention for
Technology holding of the
Co. Ltd. management
Other description:
√ Applicable□ N/A
The Company’s equity investments in Shen Zhen Timewaying Technology Co. Ltd.and Shenzhen Bevix
Technology Co. Ltd. are made mainly for promoting business cooperation in the future but not for trading
which are accordingly designated as equity investments at fair value through other comprehensive income.19. Other non-current financial assets
□ Applicable√ N/A
20. Investment properties
Measurement mode of investment properties
N/A
21. Fixed assets
Presented by items
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Fixed assets 448824286.12 447571328.91
Disposal of fixed assets
Total 448824286.12 447571328.91
Other description:
None
Fixed assets
(1). Description of fixed assets
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Electronic
Machinery and Transportation Operating leased
Item equipment and Total
equipment equipment equipment
others
I. Cost:
1.Opening
103894713.95 1020400.05 37318561.28 563293898.80 705527574.08
balance
2. Increase 10374215.65 4671280.36 46015079.81 61060575.82
(1)Purchase 10374215.65 4671280.36 15045496.01
(2)
Transfer from
46015079.81 46015079.81
construction in
progress
3. Decrease 2677681.28 765103.73 5336262.46 8779047.47
(1)
Disposal or 196364.20 728415.51 5183854.65 6108634.36
retirement
(2)
Transfer to 2481317.08 36688.22 152407.81 2670413.11
inventories
4.Closing
111591248.32 1020400.05 41224737.91 603972716.15 757809102.43
balance
II. Accumulated
depreciation
1.Opening
41528570.15 447672.23 17109387.09 198870615.70 257956245.17
balance
2. Increase 9385522.08 68048.82 3493829.66 39495698.30 52443098.86
(1)
9385522.08 68048.82 3493829.66 39495698.30 52443098.86
Provision
3. Decrease 399842.63 587217.52 427467.57 1414527.72
(1)
Disposal or 158308.83 580647.70 382985.33 1121941.86
retirement
(2)
Transfer to 241533.80 6569.82 44482.24 292585.86
inventories
4.Closing
50514249.60 515721.05 20015999.23 237938846.43 308984816.31
balance
III. Provision for
impairment
1.Opening
balance
2. Increase
(1)
Provision
3. Decrease
(1)
Disposal or
retirement
4.Closing
balance
IV. Book value
1. Closing
61076998.72 504679.00 21208738.68 366033869.72 448824286.12
balance
2. Opening
62366143.80 572727.82 20209174.19 364423283.10 447571328.91
balance
(2). Temporarily idle fixed assets
□ Applicable√ N/A
(3). Fixed assets rent 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 carrying amount
Operating leased equipment 366033869.72
Total 366033869.72
(5). Fixed assets of which certificates of title have not been obtained
□ Applicable√ N/A
Other description:
□ Applicable√ N/A
Disposal of fixed assets
□ Applicable√ N/A
22. Construction in progress
Presented by items
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Construction in progress 88984744.00 51576850.72
Materials for construction
Total 88984744.00 51576850.72
Other description:
None
Construction in progress
(1). Description of Construction in progress
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance
Provision
Item Carrying Carrying Provision for
for Book value Book value
amount amount impairment
impairment
Headquarter
65509824.53 65509824.53 37982329.74 37982329.74
buildings
Light
sources to 22071691.77 22071691.77 13594520.98 13594520.98
be leased
Fitting-out
1403227.70 1403227.70
works
Total 88984744.00 88984744.00 51576850.72 51576850.72
(2). Changes in significant constructions in progress for the current period
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Amount
injected
Amount Amount of Including: Interest
as a
Budget Opening transferred Other Closing Construction accumulated Capitalised Capitalization Source
Item Increase proportion
amount balance to fixed decreases balance progress capitalized interest for rate for the of funds
of budget
assets interest the period period (%)
amount
(%)
Headquarter Self-
534635200.00 37982329.74 27527494.79 65509824.53 12.25 12.25 33383.45 33383.45 2.22
buildings financing
Light
Self-
sources to 13594520.98 54492250.60 46015079.81 22071691.77
financing
be leased
Fitting-out Self-
1403227.70 1403227.70
works financing
Total 534635200.00 51576850.72 83422973.09 46015079.81 88984744.00 / / 33383.45 33383.45 / /
(3). Provision for impairment losses for construction in progress in the current period
□ Applicable√ N/A
Other description
□ Applicable√ N/A
Materials for construction
□ Applicable√ N/A
23. Bearer biological assets
(1). Bearer biological assets measured at cost
□ Applicable√ N/A
(2). Bearer biological assets measured at fair value
□ Applicable√ N/A
Other description
□ Applicable√ N/A
24. Oil and gas assets
□ Applicable√ N/A
25. Use right assets
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Houses and buildings Total
I. Cost
1. Opening balance 71832053.32 71832053.32
2. Increase 6169798.91 6169798.91
3. Decrease
4. Closing balance 78001852.23 78001852.23
II. Accumulated depreciation
1. Opening balance 32463983.15 32463983.15
2. Increase 9471534.54 9471534.54
(1) Provision 9471534.54 9471534.54
3. Decrease
(1) Disposal
4. Closing balance 41935517.69 41935517.69
III. Provision for impairment
1. Opening balance
2. Increase
(1) Provision
3. Decrease
(1) Disposal
4. Closing balance
IV. Book value
1. Closing balance 36066334.54 36066334.54
2. Opening balance 39368070.17 39368070.17
Other description:
[Note] Refer to the description in V. 44 of Section X for details of the difference between the opening
balance of this period and the closing balance of prior year (as at December 31 2020)
26. Intangible assets
(1). Description of intangible assets
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Land use rights Patents Software Total
I. Cost
1.Opening
330630000.00 23247800.00 13996355.81 367874155.81
balance
2. Increase 415806.59 415806.59
(1) Purchase 415806.59 415806.59
3. Decrease
(1)Disposal
4.Closing balance 330630000.00 23247800.00 14412162.40 368289962.40
II. Accumulated
Amortization
1.Opening
27552500.10 14860270.10 4973150.01 47385920.21
balance
2. Increase 5510500.02 844610.02 1391408.60 7746518.64
(1) Provision 5510500.02 844610.02 1391408.60 7746518.64
3. Decrease
(1) Disposal
4.Closing
33063000.12 15704880.12 6364558.61 55132438.85
balance
III. Provision for
impairment
1.Opening
balance
2. Increase
(1) Provision
3. Decrease
(1) Disposal
4.Closing
balance
IV. Book value
1. Closing balance 297566999.88 7542919.88 8047603.79 313157523.55
2. Opening balance 303077499.90 8387529.90 9023205.80 320488235.60
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 description:
□ Applicable√ N/A
27. Development expenditure
□ Applicable√ N/A
28. Goodwill
(1). Original book value 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 description:
□ Applicable√ N/A
29. Long-term prepaid expenses
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Opening Other
Item Increase Amortization Closing balance
balance decreases
Renovation
11020278.57 1956427.58 3357124.60 9619581.55
costs
Software 552068.22 194847.60 357220.62
Total 11572346.79 1956427.58 3551972.20 9976802.17
Other description:
None
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
Deducible Deducible
Item Deferred tax Deferred tax
temporary temporary
asset asset
difference difference
Provision for impairment
32201815.94 5315456.14 28773276.08 4625714.28
of assets
Unrealized profits for
349171100.96 86655914.03 343108987.56 85451876.99
inside transactions
Deductible losses 3339193.87 834798.46
Provisions 26803968.88 5136107.85 24854195.43 4578959.70
Deferred income 16381194.52 2586751.33 15797285.68 2504280.31
Share-based payment
29583779.99 5294789.61 639138.44 101038.96
expenses
Lease liability 33572555.38 5878957.55 42411856.75 5283865.43
Accrual of repurchase
1625248.48 406312.12
interest payable
Total 489339664.15 111274288.63 458923933.81 103380534.13
(2). Deferred tax assets that are not offset
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance
Taxable Deferred Taxable Deferred income
Item
temporary income taxes temporary taxes
differences liabilities differences liabilities
Value-added valuation
of business combination
not involving
enterprises under
common control
Changes in fair value of
other debt investments
Changes in fair value of
other investments in
equity instruments
Long-term receivables 13396889.35 2009533.40 13097031.17 1964554.68
Use right assets 31924696.40 5654382.93 39368070.17 4960189.07
Total 45321585.75 7663916.33 52465101.34 6924743.75
(3). Deferred tax assets and deferred tax liabilities that are presented at the net amount after
offset
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Amount for Amount for
which the which the Opening
Closing balance
deferred tax deferred income balance of
of deferred tax
assets and tax assets and deferred income
Item assets or
liabilities are liabilities are tax assets or
liabilities after
offset at the offset at the liabilities after
offset
closing of the opening of the offset
period period
Deferred tax assets 7663916.33 103610372.30 6924743.75 96455790.38
Deferred tax liabilities
(4). Details of unrecognized deferred tax assets
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Deducible temporary 45260046.72 47569632.05
difference
Deductible losses 270414001.83 275961696.98
Total 315674048.55 323531329.03
(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
2021 9487530.31 9487530.31
2022 11900336.99 11900329.00
2023 42584893.83 47115450.59
2024 66906177.28 86745720.01
2025 76093109.30 120712667.07
2026 63441954.12
Total 270414001.83 275961696.98 /
Other description:
√ Applicable□ N/A
[Note] Refer to the description in V. 44 of Section X for details of the difference between the opening
balance of this period and the closing balance of prior year (as at December 31 2020)
31. Other non-current assets
√ 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
Prepayment
for
purchase of 15891524.06 15891524.06 6299781.06 6299781.06
long-term
assets
Total 15891524.06 15891524.06 6299781.06 6299781.06
Other description:
None
32. Short-term borrowings
(1). Categories of short-term borrowings
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Guaranteed loans 28049331.60 77223937.39
Credit loans 11299169.33
Interest payable 48543.82 255746.14
Total 28097875.42 88778852.86
Description for categories of short-term borrowings:
None
(2). Short-term borrowings overdue but not yet repaid
□ Applicable√ N/A
Other description:
□ 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 acceptances
Bank acceptance bills 180257484.74 116822674.67
Total 180257484.74 116822674.67
Total notes payable matured but not paid yet is RMB 0 at the end of the period.36. Accounts payable
(1). Presented by accounts payable
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Amounts payable for
272203766.10 226494815.90
purchase
Total 272203766.10 226494815.90
(2). Accounts payable with significant amounts aged more than 1 year
□ Applicable√ N/A
Other description:
□ 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
Receipts in advance for goods
141944076.60 153258189.88
and cinema services
Total 141944076.60 153258189.88
(2). Receipts in advance with significant amounts aged more than 1 year
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Reasons for not repaid or
Item Closing balance
carried-forward
Receipts in advance from
Jiangsu Happy Blue Sea
27926212.39 customers for cinema projection
Cinema Development Co. Ltd.services
Total 27926212.39 /
Other description:
□ 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 40048659.77 31518312.59
Total 40048659.77 31518312.59
(2). Amount and reasons of major changes in the book value during the reporting period
□ Applicable√ N/A
Other description:
□ Applicable√ N/A
39. Employee benefits payable
(1). Presented by employee benefits payable
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Opening
Item Increase Decrease Closing balance
balance
1. Short-term benefits 46031631.17 150199218.51 163182064.83 33048784.85
2.Post-employment
benefits-defined 73934.98 6093810.04 5996162.31 171582.71
contribution plan
3. Termination benefits 635752.00 635752.00
4. Other benefits due
within one year
Total 46105566.15 156928780.55 169813979.14 33220367.56
(2). Presented by short-term employee benefits
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Opening
Item Increase Decrease Closing balance
balance
I. Wages or salaries
bonuses allowances and 45956435.30 135085848.73 148183122.44 32859161.59
subsidies
II. Staff welfare 3500905.02 3500905.02
III. Social security
53986.52 4311716.14 4249408.62 116294.04
contributions
Including: Medical
53183.08 4115870.55 4057687.13 111366.50
insurance
Work injury
786.46 89695.78 85571.68 4910.56
insurance
Maternity insurance 16.98 106149.81 106149.81 16.98
IV. Housing funds 989.00 6923221.59 6923221.59 989.00
V.Union running costs and
20220.35 377527.03 325407.16 72340.22
employee education costs
VI. Short-term paid leaves
VII.Short-term profit
sharing plan
Total 46031631.17 150199218.51 163182064.83 33048784.85
(3). Presented by defined contribution plan
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Opening Closing
Item Increase Decrease
balance balance
1. Basic pensions 73886.98 5891324.53 5798831.05 166380.46
2. Unemployment
48.00 202485.51 197331.26 5202.25
insurance
3. Enterprise annuity
contribution
Total 73934.98 6093810.04 5996162.31 171582.71
Other description:
□ Applicable√ N/A
40. Taxes payable
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Value-added tax (VAT) 1529974.97 12205136.88
Enterprise income tax 40403724.10 5477611.87
Individual income tax 1099358.16 1067512.87
City maintenance and
409277.99 478213.88
construction tax
Stamp duty 184114.07 294612.70
Education surcharges 175370.30 204948.80
Local education surcharges 116913.53 136632.54
Annual franchise tax 7106.11 7177.40
Urban land use tax 8914.32
Total 43934753.55 19871846.94
Other description:
None
41. Other payables
Presented by items
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Interest payable
Dividends payable 3851339.04
Other payables 251631758.97 58821952.01
Total 255483098.01 58821952.01
Other description:
Refer to the description in V. 44 of Section X for details of the difference in other payables between the
opening balance of this period and the closing balance of prior year (as at December 31 2020)
Interest payable
□ Applicable√ N/A
Dividends payable
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Dividends on ordinary shares 3851339.04
Total 3851339.04
Other description including significant dividend payable with ageing of over 1 year and the reason of
non-payment shall be disclosed:
The balance of dividends payable represents the dividends payable to the payees determined by the
Company for 2020 which has been paid on July 16 2021.Other payables
(1). Other payables presented by nature
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Withholding 110137.00 110389.10
Deposits/margins 5581950.19 6600475.05
Withdrawals in advance 28762556.88 21126906.43
Equity transfer fund payable 11548387.32
Borrowings 19343613.33
Temporary receipts payable 15687.12 92180.78
Equity repurchase amount
217161427.78
payable
Total 251631758.97 58821952.01
Other description: The equity repurchase amount payable pertains to the capital increase of the subsidiary
Fengmi (Chongqing) during the reporting period. When the repurchase right trigger event occurs Fengmi
(Chongqing) is obligated to conduct repurchase. According to the relevant accounting standards the
Company recognizes the investment amount as other payables.
(2). Other payables with significant amounts aged more than 1 year
□ Applicable√ N/A
Other description:
□ Applicable√ N/A
42. Held-for-sale liabilities
□ Applicable√ N/A
43. Non-current liabilities due within one year
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Long-term borrowings due
125280481.42 181057099.90
within 1 year
Lease liabilities due within 1
20745329.40 18607011.39
year
Interest payable 194908.23 360312.56
Total 146220719.05 200024423.85
Other description:
Refer to the description in V. 44 of Section X for details of the difference between the opening balance
of this period and the closing balance of prior year (as at December 31 2020)
44. Other current liabilities
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Taxes to be written off 3391139.20 3045831.07
Total 3391139.20 3045831.07
Changes in short-term bonds payable:
□ Applicable√ N/A
Other description:
□ 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 borrowings 99087647.00 29000000.00
Credit loans borrowings 2043500.81
Mortgaged borrowings 3494734.74
Pledged and guaranteed
33693828.00
borrowings
Interest payable 108105.52 107952.72
Total 102690487.26 64845281.53
Description for categories of long-term borrowings:
None
Other description including interest range:
□ Applicable√ N/A
46. Bonds payable
(1). Bonds payable
□ Applicable√ N/A
(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
Other financial instruments classified as financial liabilities
□ Applicable√ N/A
Other description:
□ Applicable√ N/A
47. Lease liabilities
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Lease liabilities 39136772.89 42411856.75
Less: Lease liabilities due within 1
-20745329.40 -18607011.39
year
Total 18391443.49 23804845.36
Other description:
Refer to the description in V. 44 of Section X for details of the difference between the opening balance
of this period and the closing balance of prior year (as at December 31 2020)
48. Long-term accounts payable
Presented by items
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Long-term accounts payable 3230050.00 3262450.00
Special payables
Total 3230050.00 3262450.00
Other description:
None
Long-term accounts payable
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Purchase of patent use rights by
3230050.00 3262450.00
installment
Total 3230050.00 3262450.00
Other description:
None
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 ReasonProducts quality Expenses for “three27240470.53 29185988.71warranty guarantees” services
Returns payable 1558884.12 1333391.18
Total 28799354.65 30519379.89 /
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
16723257.15 4070480.27 3833810.75 16959926.67
grants
Total 16723257.15 4070480.27 3833810.75 16959926.67 /
Projects relating to government grants:
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Amount
recognize Amount
Increased
d in non- recognized
government Other Related to
Projects with Opening operating in other Closing
grants for change assets/incom
liabilities balance income income for balance
the current s e
for the the current
period
current period
period
8K Ultra High
Definition
Government
Laser Display
grants
Technology 1699187.35 382994.93 1316192.42
related to
Engineering
assets
Research
Center
Ultra-high
Brightness
Laser Light Government
Source 1414127.2 grants
1683873.26 269745.99
Engineering 7 related to
Technology income
Research
Center
Ultra-high
Brightness
Laser Light Government
Source 13340196.5 2815480.2 1781688.5 14373988.2 grants
Engineering 4 7 5 6 related to
Technology income
Research
Center
Research and
Development
of Key
Technologies
Government
of Ultra High
1000000.0 grants
Definition 1000000.00
0 related to
Micro Laser
income
Projection
Optical Engine
Based on
Light-emitting
Ceramic
Devices
Key
Technology of
Trichromatic Government
Laser Display grants
255000.00 255000.00
Complete related to
Equipment income
Industrializatio
n
16723257.1 4070480.2 3833810.7 16959926.6
Total
5 7 5 7
Other description:
√ Applicable□ N/A
Refer to the description in VII. 84 of Section X for details of government grants of this period included
in the current profit or loss
52. Other non-current liabilities
□ Applicable√ N/A
53. Share capital
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Changes (+ -)
Issue Capitalization
Opening balance Bonus Sub- Closing balance
New of capital Others
shares total
share reserve
Total
452756901.00 452756901.00
shares
Other description:
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 description:
□ Applicable√ N/A
55. Capital reserve
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Opening balance Increase Decrease Closing balance
Capital premium
1241202420.08 92622244.75 1333824664.83
(Share premium)
Other capital
7818571.07 18461103.38 26279674.45
reserve
Total 1249020991.15 111083348.13 1360104339.28
Other description including changes in the current period and reasons for changes:
(1) The capital premium (share premium) increased by RMB 92622244.75 due to the capital increase
made by minority shareholders of subsidiaries in the current period;
(2) The total expense of equity-settled share-based payments in the current period amounted to RMB
22351621.22 of which RMB 18461103.38 was recognized in the capital reserve (other capital reserve)
and RMB 3890517.84 was charged to the amount attributable to minority interests.56. Treasury shares
□ Applicable√ N/A
57. Other comprehensive income
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Amount recognized in the current period
Less: Amount
Less: Amount
previously
previously
included in
included in
Amount other Attributable to Attributable to
Opening other Closing
Item incurred for comprehensive Less: Income owners of the minority
balance comprehensive balance
current period income and tax expense parent company shareholders
income and
before tax transferred to after tax after tax
transferred to
retained
profit or loss
earnings for the
for the period
period
I. Other
comprehensive
income that
cannot be
reclassified
subsequently
to profit or
loss
II. Other
comprehensive
income that
-3214291.93 -4739767.89 -4763298.65 23530.76 -7977590.58
will be
reclassified to
profit or loss
Exchange
differences on
translation of
financial
-3214291.93 -4739767.89 -4763298.65 23530.76 -7977590.58
statements
denominated
in foreign
currencies
Total other
comprehensive -3214291.93 -4739767.89 -4763298.65 23530.76 -7977590.58
income
Other descriptions including adjustments on transferring effective portion of cash flow hedges to amount upon initial recognition of the hedged item:
None
58. Special reserve
□ Applicable√ N/A
59. Surplus reserve
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Opening Increase Decrease Closing balance
balance
Statutory surplus
33964638.84 33964638.84
reserve
Surplus reserve
recovered through
business combination 1277540.73 1277540.73
involving entities
under common control
Total 35242179.57 35242179.57
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 Last year
Retained profits at the end of prior
357793891.96 288975820.29
period before adjustment
Total adjusted retained profits at the
beginning of the period (Add:+; Less: 44270.33 1278734.88
-)
Retained profits at the beginning of the
357838162.29 290254555.17
period after adjustment
Add: Net profit attributable to owners
151413920.79 113847873.06
of the Parent Company for the period
Less: Appropriation to statutory
12441955.44
surplus reserve
Appropriation to discretionary
surplus reserve
Appropriation to general risk
reserve
Declaration of dividends on
24901629.56 33866580.83
ordinary shares
Conversion of ordinary shares'
dividends into share capital
Retained profits at the end of the
484350453.52 357793891.96
period
Details of adjustments to retained 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 retained profits at the beginning of the period were affected by RMB 44270.33.2. Retained profits at the beginning of the period were affected by RMB 0 due to changes in accounting
policies.3. Retained profits at the beginning of the period were affected by RMB 0 due to the correction of
significant accounting errors.4. Retained profits at the beginning of the period were affected by RMB 0 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 in total due to other adjustments.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
Revenue Cost Revenue Cost
Main
1104689243.59 723612305.19 716025207.34 529787789.94
business
Total 1104689243.59 723612305.19 716025207.34 529787789.94
(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 description:
Presentation of income by major category
Item Sub-total
Main business areas
Domestic 978637241.86
Overseas 52602507.28
Sub-total 1031239749.14
Main product types
Laser optical engine 102894753.59
Laser projector 760406207.52
Others 167938788.03
Sub-total 1031239749.14
Revenue recognition time
Goods (transferring at a certain point in time) 911639750.72
Service (rendering over time) 119599998.42
Sub-total 1031239749.14
Note: The information on income presented above represents the income amount net of the rental income
and other income to which the new revenue standards are not applicable.62. Taxes and levies
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Amount for the current period Amount for the prior period
City maintenance and
1720331.86 854951.57
construction tax
Education surcharges 741743.40 378217.31
Local education surcharges 499046.18 248054.96
Stamp duty 1096478.56 591733.50
Others 273538.81 256753.22
Total 4331138.81 2329710.56
Other description:
None
63. Sales expenses
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Amount for the Amount for the prior
Item
current period period
Employee benefits 32606069.47 23380108.03
Marketing fees 35119978.09 11258761.35
After-sale repair expenses 6280390.31 7335750.91
Advertising costs and business publicity expenses 2043151.94 2025841.22
Business travel expenses 1601757.27 650816.90
Business entertainment expenses 1073975.75 344196.59
Other expenses 10960873.00 5838419.50
Total 89686195.83 50833894.50
Other description:
1. During the reporting period the Company focused on increasing its marketing efforts resulting in an
increase in the marketing fees;
2. Other expenses are mainly patent royalties paid.64. Administration expenses
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Amount for the current Amount for the prior
period period
Employee benefits 31797608.54 27739712.49
Rent expense 4795962.93 3676664.67
Service fees 16698545.91 17562845.34
Depreciation and amortization fees 3365970.11 8228493.80
Share-based payment expenses 22312482.85 17576543.47
Other expenses 4989946.58 3029397.32
Total 83960516.92 77813657.09
Other description:
The decrease in depreciation and amortization fees is mainly due to the amortization of land use right
being recognized in construction in progress in the current period.65. R&D expenses
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Amount for the current Amount for the prior
period period
Employee benefits 60494851.79 54917336.45
Material consumption expenses 8429853.23 9045544.84
Rent expense 4649585.35 4614423.44
Service fees 7094850.80 2313102.75
Depreciation and amortization fees 4710875.84 6299814.11
Testing expenses 2384569.29 1963709.91
Patent fees 2067359.08 4325481.23
Other expenses 5296538.28 3816038.02
Total 95128483.66 87295450.75
Other description:
None
66. Financial expenses
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Amount for the current Amount for the prior
period period
Interest expenses 11013330.17 11612825.87
Less: Interest income -10868184.51 -4618971.33
Exchange profit or loss 508948.95 189748.99
Bank service charges 877924.69 854087.51
Total 1532019.30 8037691.04
Other description:
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 382994.93 17881.98
Government grants related to income 51598892.61 31357361.04
Refund of commissions for withholding
571819.78
individual income tax
Additional deduction of input VAT 2336589.39 1546791.95
Total 54890296.70 32922034.97
Other description:
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
Amount for the current
Item Amount for the prior period
period
Long-term equity investment
6982738.64 901894.80
accounted for using the equity method
Investment income from disposal of
2145923.39 10824793.71
held-for-trading financial assets
Others 3.00
Total 9128665.03 11726688.51
Other description:
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 38175900.00
Including: Gains from changes in
fair values on derivative financial
instruments
Held-for-trading financial liabilities
Investment properties measured at
fair value
Total 38175900.00
Other description:
Refer to VII. 2 of Section X
71. Losses of credit impairment
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Amount for the current period Amount for the prior period
Bad debt losses 9407031.23 2170106.96
Total 9407031.23 2170106.96
Other description:
None
72. Impairment losses of assets
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Amount for the current
Item Amount for the prior period
period
I. Loss of contract assets -43168.95
II. Losses of decline in value of
inventories and losses of contract -16538070.39 -12109681.09
performance cost
Total -16581239.34 -12109681.09
Other description:
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 on disposal of assets 2806008.82 149620.91
Total 2806008.82 149620.91
Other description:
□ Applicable√ N/A
74. Non-operating income
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Amount included in
Amount for the current Amount for the prior
Item non-recurring profit or
period period
loss for the period
Total gains or losses
from disposal of non- 4100.00 8412.77 4100.00
current assets;
Including: Gains
from disposal of 4100.00 8412.77 4100.00
fixed assets
Gain from
disposal of intangible
assets
Gains from debt
restructuring
Gains from exchange
of non-monetary
assets
Acceptance of
donations
Government grants 21500000.00 21500000.00
Amounts not
4200.00
required for payment
Indemnity 630000.00 252001.08 630000.00
Others 106580.14 6001.63 106580.14
Total 22240680.14 270615.48 22240680.14
Government grants included in profit or loss for the period
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Amount for the current Amount for the prior Related to assets/income
Project with grants
period period
Grants for Fostering
Government grants
Restructuring and 1500000.00
related to income
Listing in 2021
Project Support Fund
of Chongqing
Liangjiang New Area Government grants
20000000.00
Finance Bureau - related to income
Project Landing
Reward
Other description:
□ Applicable√ N/A
75. Non-operating expenses
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Amount included in
Amount for the current Amount for the prior
Item non-recurring profit or
period period
loss for the period
Total losses on
disposal of non- 170231.21 140563.32 170231.21
current assets
Including: Losses on
disposal of fixed 170231.21 140563.32 170231.21
assets
External donations 563138.63
Penalties and 18205.90 1000.00 18205.90
overdue fines
Others 217064.50 36000.00 217064.50
Total 405501.61 740701.95 405501.61
Other description:
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
52765981.28 7761319.12
period
Deferred income tax expenses -6460456.12 -5067377.70
Total 46305525.16 2693941.42
(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 226100424.85
Income tax expense calculated based on
33915063.74
statutory/applicable tax rate
Effect of different tax rates of subsidiaries
12796123.23
operating in other jurisdictions
Effect of adjustment on income tax for the period 694125.81
Effect of non-taxable income -11417223.52
Effect of non-deductible cost expense and loss 459671.41
Effect of utilizing deductible loss not recognized
for deferred tax assets for prior period
Effect of deductible temporary difference or
deductible loss not recognized for deferred tax 9988835.94
assets for the current period
Changes in the opening balance of deferred
-131071.45
income tax assets due to tax rate adjustment
Effect of additional R&D expenses deduction
Income tax expense 46305525.16
Other description:
□ Applicable√ N/A
77. Other comprehensive income
√ Applicable□ N/A
Refer to the notes 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
Government grants 72650106.88 29527428.69
Non-operating income 665006.61 258002.71
Interest income 11045718.76 4618971.33
Other monetary funds-margins 21445628.07 20402679.86
Bank deposits-frozen funds due to
10000000.00
litigation
Receivables and payables 7695541.37 16463315.13
Total 113502001.69 81270397.72
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
Sales expenses administrative and
95588810.53 67811667.43
R&D expenses paid in cash
Financial expenses paid in cash 1863849.47 854087.51
Non-operating expenses 47599.90 600138.63
Other monetary funds-margins 28107696.66 27484998.92
Receivables and payables 8277996.70 3395213.71
Total 133885953.26 100146106.20
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
Unit: Yuan Currency: RMB
Item Amount for the current period Amount for the prior period
Investment funds with repurchase right 215000000.00
Total 215000000.00
Description of other cash receipts relating to financing activities:
None
(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
Share-based payment expenses 20559.65 22587.36
Repayment to shareholders 19320000.00
Lease expenses 11870055.52
Total 31210615.17 22587.36
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
Supplementary information Current period Prior period
1. Reconciliation of net profit to
cash flow from operating activities:
Net profit 179794899.69 -8378244.17
Add: Provision for impairment of
16581239.34 12109681.09
assets
Losses of credit impairment -9407031.23 -2170106.96
Depreciation of fixed assets
depletion of oil and gas assets
52443098.86 47418126.65
depreciation of bearer biological
assets
Amortization of use right assets 9471534.54
Amortization of intangible assets 2236018.62 7660838.99
Amortization of long-term prepaid
3551972.20 3409529.26
expenses
Losses on disposal of fixed assets
intangible assets and other long-term -2806008.82 -149620.91
assets (gains are indicated by “－”)
Losses on retirement of fixed assets
166131.21 132150.55
(gains are indicated by “－”)
Losses on changes in fair values
-38175900.00
(gains are indicated by “－”)
Financial expenses (income is
11522279.12 11802574.86
indicated by “－”)
Investment losses (income is
-9128665.03 -11726688.51
indicated by “－”)
Decrease in deferred tax assets
-7154581.92 -5071725.84
(increase is indicated by “-”)
Increase in deferred tax liabilities
(decrease is indicated by “-”)
Decrease in inventories (increase is
-272867132.22 -142500844.11
indicated by “－”)
Decrease in receivables from
operating activities (increase is 154269042.05 67912872.37
indicated by “－”)
Increase in payables from operating
activities (decrease is indicated by 58149792.82 64980975.06
“－”)
Others 22012624.67 17576543.47
Net cash flow from operating
170659313.90 63006061.80
activities
2. Significant investing and
financing activities that do not
involve cash receipts and
payments:
Conversion of debt into capital
Convertible corporate bonds due
within one year
Fixed assets acquired under finance
leases
3. Net changes in cash and cash
equivalents:
Closing balance of cash 863588162.84 686296049.61
Less: Opening balance of cash 983525089.44 829789487.86
Add: Closing balance of cash
equivalents
Less: Opening balance of cash
equivalents
Net increase in cash and cash
-119936926.60 -143493438.25
equivalents
(2) Net cash paid to acquire subsidiaries for the current period
□ Applicable√ N/A
(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 863588162.84 983525089.44
Including: Cash on hand 5847.50 5858.56
Bank deposit that can be paid
855755732.73 980570123.37
at any time
Other monetary funds that can
7826582.61 2949107.51
be paid at any 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 three months
III. Closing balance of cash and
863588162.84 983525089.44
cash equivalents
Including: Restricted cash and cash
equivalents of the Parent Company
or subsidiaries within the Group
Other description:
□ Applicable√ N/A
80. Notes to items in the statement of changes in owners' equity
Describe matters such as the names and the adjustment 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 carrying Reason
amount
Other monetary funds 20292090.37 Margins
Bank deposits 40000000.00 Time deposits
Land use rights 297566999.88 Mortgage
Total 357859090.25 /
Other description:
None
82. Foreign currency monetary items
(1). Foreign currency monetary items
√ Applicable□ N/A
Unit: Yuan
Closing balance of
Closing balance of
Item Exchange rate RMB equivalent
foreign currency
balance
Cash and bank balances
Including: USD 10081456.17 6.4601 65127215.00
GBP 365.96 8.9410 3272.05
HKD 1703453.28 0.83208 1417409.41
VND 93612676.00 0.0002806 26267.72
Accounts receivable
Including: USD 4071799.30 6.4601 26304230.66
Other receivables
Including: USD 168481.83 6.4601 1088409.47
VND 112935000.00 0.0002806 31689.56
Accounts payable
Including: USD 13324802.64 6.4601 86079557.53
EUR 11804.35 7.6862 90730.59
Other payables
Including: USD 461803.47 6.4601 2983296.61
VND 3200185170.00 0.0002806 897971.96
Non-current liabilities due
within one year
Including: USD 316838.82 6.4601 2047190.67
HKD 2293226.99 0.83208 1908148.31
VND 436491213.68 0.0002806 122479.43
Other description:
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 operation Functional Choosing
Item
place overseas currency basis
Common
Appotronics Hong Kong Limited Hong Kong USD
currency
Common
Appotronics USA Inc. United States USD
currency
Common
Fabulus Technology Hong Kong Limited Hong Kong USD
currency
JoveAI Limited Common
Cayman Islands USD
currency
Common
JoveAI Innovation Inc. United States USD
currency
Common
FORMOVIE TECHNOLOGY INC United States USD
currency
Local
JoveAI Asia Company Limited Vietnam VDN
currency
Common
WEMAX LLC United States USD
currency
83. Hedge
□ Applicable√ N/A
84. Government grants
1. Basic government grants
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Amount recognized
Category Amount Item presented in current profit or
loss
Government grants related to assets Other income 382994.93
Government grants related to income
and used for compensation of the
4070480.27 Other income 3450815.82
Company’s relevant costs or losses in
subsequent periods
Government grants related to income
and used for compensation of the
48152127.98 Other income 48152127.98
Company’s relevant costs or losses that
have been incurred
Government grants related to income
and used for compensation of the Non-operating
21500000.00 21500000.00
Company’s relevant costs or losses that income
have been incurred
1) Government grants related to assets
Opening Increased Amortization Closing Amortized
Item Description
balance government for the balance item
of grants for current of presented
deferred the current period deferred for the
income period income current
period
Contract on Project of
8K Ultra
8K Ultra High
High
Definition Laser
Definition
Display Technology
Laser
Other Engineering Research
Display 1699187.35 382994.93 1316192.42
income Center made by the
Technology
Development and
Engineering
Reform Commission of
Research
Shenzhen Municipal
Center
(XMHT20190101023)
Sub-
1699187.35 382994.93 1316192.42
total
2) Government grants related to income and used for compensation of the Company’s relevant
costs or losses in subsequent periods
Carrie
d-
forwar
Increased
Opening Carrying Closing d item
government
balance of forward for balance of presen
Item grants for Description
deferred the current deferred ted for
the current
income period income the
period
curren
t
period
Contract on
Ultra-high
Shenzhen Science
Brightness
and Technology
Laser
Plan Project made
Light
by Shenzhen
Source Other
Science and
Engineeri 1683873.26 1414127.27 269745.99 incom
Technology
ng e
Innovation
Technolog
Commission
y
(Shen Ke Ji
Research
Chuang Xin
Center
[2019] No. 33)
Notice on the
Approval of Key
Projects of
Strategic
Advanced
Trichroma Electronic
tic Laser Materials of
Display National Key
Complete R&D Plan in
Other
Equipmen 2018 issued by
13340196.54 2815480.27 1781688.55 14373988.26 incom
t the High
e
Productio Technology
n Research and
Demonstr Development
ation Line Center of the
Ministry of
Science and
Technology (Guo
Ke Gao Fa Ji Zi
[2018] No. 41)
Research
and
Developm Electronic Office
ent of Key Report on
Technolog Technology
ies of Breakthrough
Ultra High Project of
Definition Shenzhen Science
Other
Micro and Technology
1000000.00 1000000.00 incom
Laser Innovation No.e
Projection 2021124 issued
Optical by Shenzhen
Engine Science and
Based on Technology
Light- Innovation
emitting Commission
Ceramic
Devices
Key
Assignment of
Technolog
R&D Plan
y of
Projects in key
Trichroma Other
Areas of
tic Laser 255000.00 255000.00 incom
Guangdong
Display e
Province made by
Complete
Shenzhen Finance
Equipmen
Bureau
t
Industriali (2019B01092600
zation 1)
Sub-total 15024069.80 4070480.27 3450815.82 15643734.25
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 presented Description
Other
VAT Refund 1673676.21
income
Job Stabilization Other
5696.29
Subsidy income
Provisions of Guangdong Province on
Maternity Subsidy
Other Employees Maternity Insurance
from Shenzhen Social 124908.48
income promulgated by Shenzhen Social Insurance
Security Bureau
Fund Administration
Fund from Shunyi Park
Management
Notice of Shunyi District People’s
Committee of
Government of Beijing Municipality on
Zhongguancun Science
Other Issuing the Support Measures for
and Technology Park 2200000.00
income Promoting the Development of Enterprises
in 2019 Supporting
in Shunyi District (Shun Zheng Fa [2017]
Development of
No. 38 )
Enterprises in Shunyi
District
2020 Industrial Added
Special Fund for Independent Innovation
Value Award Project
Other Industry Development of Nanshan District
of Shenzhen Nanshan 3830100.00
income (for Economic Development) - Application
District Finance
for Industrial Added Value Award Project
Bureau
The First Reported
Fund for the Second Notice of Shenzhen Administration for
Batch of Patents in Market Administration on Handling the
Other
2019 from the Patent 30000.00 General Subsidy Collection Procedures on
income
Agency of Shenzhen Shenzhen Intellectual Property Special
Intellectual Property Fund in 2019
Administration 30-27
One Time Subsidy on
the Post-doctoral Publicity List of Proposed One Time
Station Unit from Subsidy on the Station Unit in Shenzhen
Other
Shenzhen Human 500000.00 (the Second Batch in 2020) - Website of
income
Resources and Social Shenzhen Human Resources and Social
Security Bureau (the Security Bureau
Second Batch in 2020)
Subsidy for Economic
Development in 2021 Allocation Plan of Special Funds for
under Application Promoting High-quality Economic
Other
ZK01202103000097 300000.00 Development in 2020 (the Third Batch)
income
from Shenzhen issued by Guangdong Administration for
Administration for Market Regulation
Market Administration
Special Fund for the Development of
Government Subsidy
Independent Innovation Industry in
from the Patent
Other Nanshan District (for Scientific and
Agency of Shenzhen 600000.00
income Technological Innovation) - Science and
Intellectual Property
Technology Award Support Plan of
Administration
Nanshan District
Subsidy for Post-
Application for Special Fund for
doctoral Station Unit
Independent Innovation Industry
from Human Other
250000.00 Development in Nanshan District
Resources Bureau of income
Shenzhen - Post-doctoral Station Unit
Nanshan District in
Project (2021)
Shenzhen
Enterprise R&D
Special Fund for Independent Innovation
Investment Support
Industry Development in Nanshan District
Plan of the Science and Other
1000000.00 (for Scientific and Technological
Technology Innovation income
Innovation) - Application for Enterprise
Bureau of Nanshan
R&D Investment Support Plan (2020)
District in Shenzhen
Supplementary Further Notice of Nanshan District
Housing Rent for Housing and Construction Bureau on
Talents from the Other Supplementary Housing Rent for Talents
372000.00
Finance Bureau of income in Nanshan District in 2021 issued by the
Nanshan District in Industry and Information Technology
Shenzhen Bureau of Nanshan District in Shenzhen
Project Support Fund
of Chongqing Technology Investment Agreement
Non-
Liangjiang New Area between Chongqing Liangjiang New Area
operating
Finance Bureau - 20000000.00 Management Committee and Fengmi
income
Project Landing (Contract No.: LJCY-2020-023-TZ)
Reward
Project Support Fund O t her Technology Investment Agreement
of Chongqing 30000000.00 income between Chongqing Liangjiang New Area
Liangjiang New Area Management Committee and Fengmi
Finance Bureau - (Contract No.: LJCY-2020-023-TZ)
Support Fund for
Headquarters
Relocation
The First Batch of The First Batch of Subsidy for Domestic
Other
Subsidy for Domestic 1807500.00 and Overseas Invention Patents in 2020
income
and Overseas Invention (Received on June 11 2021)
Patents in 2020 from
the Patent Agency of
Shenzhen Intellectual
Property
Administration
The First Batch of
Grants for Enterprise Notice of Shenzhen Science and
R&D Funding in 2020 Technology Innovation Commission on
from the High Tech Other Publicizing the List of the First Batch of
1766000.00
Department of income Enterprises to be Funded and the Second
Shenzhen Science and Batch of Enterprises to be Reviewed under
Technology innovation the Enterprise R&D Funding Plan in 2020
Commission
Fund for Patent
Notice of Shunyi District People’s
Promotion and
Government of Beijing Municipality on
Protection Project from
Other Issuing the Rules for the Implementation
Administration for 10000.00
income of Patent Promotion and Protection in
Market Regulation of
Shunyi District (Shun Zheng Fa (2019)
Shunyi District in
No.10)
Beijing
According to the guidance of Several
Opinions on Promoting the Development
of Cultural and Creative Industries in
Publicity Department Shunyi District (Shun Zheng Fa [2013]
of Beijing Shunyi No. 13) and the Management Measures on
District Committee of Special Funds for the Development of
Other
the Communist Party 3000000.00 Cultural and Creative Industries in Shunyi
income
of China - 2020 District (Revised) (Shun Xuan Fa [2016]
Cultural and Creative No. 6) the Publicity Department of the
Fund District is now soliciting projects to be
granted with the special fund for the
development of cultural industry in Shunyi
District in 2020 (“Special Fund”).Funding for Industrial
Application for Special Fund for
Development and
Independent Innovation Industry
Innovative Talents
Other Development of Nanshan District
from the Human 282247.00
income Shenzhen - Funding Project for Industrial
Resources Bureau of
Development and Innovative Talents in
Nanshan District in
Nanshan District (2020)
Shenzhen
Allocation to the
Standard Field of
Shenzhen in 2020 from List of Activities Meeting Incentive
Other
Shenzhen 300000.00 Standard to be Funded by Shenzhen
income
Administration for Special Fund in Standard Field in 2020
Market Administration
ZK0120210600108
Allocation to the
Standard Field of
Shenzhen in 2020 from List of Activities Meeting Incentive
Other
Shenzhen 100000.00 Standard to be Funded by Shenzhen
income
Administration for Special Fund in Standard Field in 2020
Market Administration
ZK0120210600108
Notice of Shenzhen SME Service Bureau
Grants for Fostering on Handling the Allocation of Subsidy for
Restructuring and Non- the Restructuring and Listing Fostering
Listing in 2021 from 1500000.00 operating Projects of the Municipal Private and
Shenzhen SME Service income Small and Medium-sized Enterprises under
Bureau the Innovation and Development Support
Plan in 2021
Sub-total 69652127.98
2. Refund of government grants
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Amount Reason
The number of employees is not
Hong Kong Government
4051.19 eligible for the government
Employment Protection Scheme
grants
Other description
None
85. Others
□ Applicable√ N/A
VIII. Changes in scope of consolidation
1. Business combination not involving enterprises under common control
□ 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 description:
□ 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 and subsidiary liquidation etc.) and the relevant information:
√ Applicable□ N/A
Established by the Company on December 29 2020 Fengmi (Chongqing) Innovation Technology Co.Ltd. engaged in no substantive business at the beginning of its establishment and conducted its business
on March 12 2021 with capital injection who accordingly is included into the scope of consolidation.6. Others
□ Applicable√ N/A
IX. Equity in other entities
1. Equity in subsidiaries
(1). Composition of enterprise group
√ Applicable□ N/A
Princip Proportion of
al Registr shareholding (%) Acquisit
Subsidiary
operati ation Business nature ion
Name Indirec
on place Direct method
t
place
Appotronics Timewaying Sales; technology
Establis
(Beijing) Technology Beijing Beijing development 90
hment
Co. Ltd. consulting
Technology
Shenzhen Appotronics development and
Shenzh Shenzh Establis
Software Technology sales of computer 100
en en hment
Co. Ltd. software and
hardware
Technology
Beijing Orient
promotion; computer Establis
Appotronics Technology Beijing Beijing 59
systems application hment
Co. Ltd.software services
Development
Shenzhen Appotronics
Shenzh Shenzh consultation and Establis
Xiaoming Technology 100
en en transfer of laser hment
Co. Ltd.display technology
Fengmi (Chongqing)
Chong Chong Import and export of Establis
Innovation Technology 39.19
qing qing goods and technology hment
Co. Ltd.Technology and
Fengmi (Beijing) Establis
Beijing Beijing software 39.19
Technology Co. Ltd. hment
development
Business
combina
tion
Shenzhen Appotronics
Shenzh Shenzh R&D and sales of involvin
Laser Display 100
en en laser display products g entities
Technology Co. Ltd.under
common
control
Research and Business
development combina
production technical tion
CINEAPPO Laser
services sales and involvin
Cinema Technology Beijing Beijing 24.84 38.36
leasing of laser g entities
(Beijing) Co. Ltd.
cinema projection under
equipment and other common
products control
Qingda Appotronics Information
Shenzh Xiame Establis
(Xiamen) Technology technology 51
en n hment
Co. Ltd. consulting services
Software
Shenzhen Appotronics development for
Shenzh Shenzh Establis
Laser Technology Co. semiconductor 100
en en hment
Ltd. optoelectronic
devices
Software
Shenzhen Appotronics development related
Shenzh Shenzh Establis
Home Line Technology to semiconductor 100
en en hment
Co. Ltd. optoelectronic
products
Production research
and development
sales consulting
investment and video
Appotronics Hong Kong Hong Hong Establis
content value-added 100
Limited Kong Kong hment
business of
semiconductor
optoelectronic
products
Business
combina
R&D manufacture
tion
and sales of
involvin
Appotronics USA Inc. USA USA semiconductor 100
g entities
optoelectronic
under
products
common
control
Fabulus Technology Hong Hong R&D manufacture Establis100
Hong Kong Limited Kong Kong and sales of screens hment
Cayma Cayma
No specific business Establis
JoveAI Limited n n 64.29
conducted hment
Island Island
R&D of laser display Establis
JoveAI Innovation Inc. USA USA 64.29
software system hment
Technical research
and development of
Appotronics Technology Chang Chang projection Establis100
(Changzhou) Co. Ltd. zhou zhou equipment screen hment
and electronic
computer.FORMOVIE No specific business Establis
USA USA 39.19
TECHNOLOGY INC conducted hment
JoveAI Asia Company Vietna Vietna Technical research Establis
64.29
Limited m m and development of hment
projection
equipment screen
and electronic
computer.Business
combina
tion
Tianjin Bainian Film No specific business involvin
Tianjin Tianjin 99.00 1.00
Partnership (LP) conducted g entities
under
common
control
Technology
development sales
Shenzhen Appotronics Shenzh Shenzh and technical services Establis100
Display Device Co. Ltd. en en of display products; hment
import and export
business
Sale of laser Establis
WEMAX LLC USA USA 100
equipment hment
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 right but having no control over the investee:
The Company has a shareholding of 39.19% in and the largest shareholder of Fengmi (Chongqing) and
together with Shenzhen Fengye Investment Consulting Limited Partnership (LP) the person acting in
concerted has appointed 4 directors among the 7 members of the board of directors of Fengmi
(Chongqing). Fengmi (Chongqing) is under the control of the Company and thus is included into the
scope of consolidation.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 description:
None
(2). Significant non-wholly subsidiaries
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Shareholding by Profit or loss Dividends declared Closing balance
Subsidiaries minority attributable to for distribution to of minority
shareholders minority minority interests
Percentage (%) shareholders for the shareholders in the
current period current period
Fengmi
(Chongqing)
Innovation 60.81 9034446.12 -128397510.69
Technology
Co. Ltd.CINEAPPO
Laser Cinema
Technology 36.80 22890606.78 11040000.00 151163808.22
(Beijing) Co.
Ltd.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 description:
□ Applicable√ N/A
(3). Significant financial information of significant non-wholly subsidiaries
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance
Subsidiarie
Non-current Current Non-current Total Non-current Current Non-current Total
s Current assets Total assets Current assets Total assets
assets liabilities Liabilities Liabilities assets liabilities Liabilities Liabilities
Fengmi
(Chongqin
g) 761120189.3 798948689.8 891040646.7 899571717.6 602633550.2 621792674.9 692687626.4 699851445.5
37828500.50 8531070.85 19159124.70 7163819.12
Innovation 9 9 6 1 3 3 1 3
Technolog
y Co. Ltd.CINEAPP
O Laser
Cinema 206894037.4 731840175.4 938734212.8 443678339.7 84284655.0 527962994.8 218507767.0 714506195.0 933013962.1 509106720.2 45338759.7 554445479.9
Technolog 0 1 1 9 5 4 8 9 7 6 2 8
y (Beijing)
Co. Ltd.Amount for the current period Amount for the prior period
Total Total
Subsidiaries Cash flow from Cash flow from
Operating income Net profit comprehensive Operating income Net profit comprehensive
operating activities operating activities
income income
Fengmi
(Chongqing)
Innovation 531216939.04 12761375.30 12761391.07 31963176.54 396335864.51 -10418569.26 -10418569.26 83212791.30
Technology
Co. Ltd.CINEAPPO
Laser Cinema
Technology 244006736.50 59012508.09 59012508.09 99458332.40 78528870.68 -34638400.65 -34638400.65 22787991.80
(Beijing) Co.
Ltd.Other description: Due to the implementation of the New Lease Standards Fengmi (Chongqing) Innovation Technology Co. Ltd. and CINEAPPO Laser Cinema
Technology (Beijing) Co. Ltd. adjusted the opening balances on the balance sheets on a retrospective basis without adjusting comparable data.(4). Significant limitations on use of the group assets and paying off the group debts:
□ Applicable√ N/A
(5). Financial or other support provided to structured entities included in consolidated financial
statements:
□ Applicable√ N/A
Other description:
□ 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 on changes in shares of owners' equity in subsidiaries
√ Applicable□ N/A
During the reporting period Fengmi (Chongqing) a subsidiary of the Company introduced strategic
investors through equity transfer and capital increase. By June 30 2021 the capital increase has been
completed as a result of which the Company’s shareholding ratio in Fengmi (Chongqing) has decreased
from 55% to 39.19%.
(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
Fengmi (Chongqing) Innovation Technology Co.Ltd.Purchase cost/disposal consideration
--Cash 202631579.00
--Fair value of non-cash assets
Total purchase cost/disposal consideration 202631579.00
Less: Pro-rata net assets of the subsidiary 110009334.25
calculated according to the proportion of equity
acquired/disposed
Difference 92622244.75
Including: Capital reserve adjustment 92622244.75
Surplus reserve Adjustment
Retained profits Adjustment
Other description
□ 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
Proportion of Accounting
shareholding (%) treatment
Name of Principal
Registration method for
associates or operation Business nature
place investments in
joint ventures place Direct Indirect
joint ventures
and associates
R&D production
GDC Asia and British and sale of digital Accounting for
Technology North Virgin cinema servers and 36.00 under equity
Limited (BVI) America Islands cinema management method
system
Description of variances between shareholding ratio and the ratio 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 has 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
Opening
Closing balance/amount of this
balance/amount of last
period
period
GDC GDC (note 2)
Current assets 547485818.74 553504350.37
Non-current assets 65118156.91 72596748.61
Total assets 612603975.65 626101098.98
Current liabilities 377810943.71 379295268.80
Non-current Liabilities 12862485.47 41349472.31
Total Liabilities 390673429.18 420644741.11
Minority interests
Interests attributable to shareholders of
221930546.47 205456357.87
the parent company
Share of net assets calculated by
79894996.73 73964288.83
ownership percentage
Adjustment 62255140.10 62044191.37
--Goodwill 62560946.33 62560946.33
--Unrealized profits for inside
-305806.23 -516754.96
transactions
--Others
Carrying amount of investment of
136753066.23 131338347.84
associate
Fair values of equity investments in
associates having publicly quoted prices
Operating income 133586629.37 44845312.70
Net profit 14713439.07 2142306.37
Net profit of discontinued operations
Other comprehensive income 3894036.40 2565157.07
Total comprehensive income 18607475.46 4707463.44
Dividends received from associates in
the current year
Other description
None
(4). Summary financial information of insignificant joint ventures and associates
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance/2019 Opening balance / 2018
Joint ventures:
Total book value of
investments
Total amounts calculated based on shareholding proportions
--Net profit
--Other comprehensive income
--Total comprehensive income
Associates:
Total book value of
129147386.44 131406424.64
investments
Total amounts calculated based on shareholding proportions
--Net profit 1131089.51 217201.22
--Other comprehensive income -2612904.61 -1059162.87
--Total comprehensive income -1481815.09 -841961.65
Other description
Main information of associates:
Accounting
Proportion of shareholding (%)
treatment
Principal
Registration Business method for
Associates operation
place nature investments
place Direct Indirect
in joint
ventures
and
associates
Accounting
Sale of
Cinionic Europe for under
Hong Kong cinema 20.00
Limited and USA equity
projectors
method
(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
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 maximum 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 counterparty.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 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;
2) The qualitative criteria 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 criteria 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(s) 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 and 8 of Section X.4. Credit risk exposure and credit risk concentration
The Company's credit risk is primarily from cash and bank balances and receivables. In order to
control the risks associated with aforementioned items the Company has taken the following measures.
(1) Cash and bank balances
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 collaterals are required since the Company only deals with third parties that are approved and
creditworthy. The concentrated credit risks are managed by customers. As June 30 2021 the Company
faced certain credit concentration risks 60.03% (December 31 2020: 86.37%) of the Company's accounts
receivable comes from top 5 customers. The Company held no collateral or other credit ranking measures
for the balance of accounts receivable.The maximum exposure to the Company is the carrying amount of each financial asset in the balance
sheet.(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
Book value Within 1 year 1-3 years Over 3 years
contract amount
Bank borrowings 256263752.33 261284410.71 153573265.07 107711145.64
Notes payable 180257484.74 180257484.74 180257484.74
Accounts
272203766.10 272203766.10 272203766.10
payable
Other payables 251631758.97 251631758.97 251631758.97
Long-term
3230050.00 3536904.75 3536904.75
accounts payable
Sub-total 963586812.14 968914325.27 857666274.88 111248050.39
(Continued to above table)
Opening balance
Item Undiscounted Over 3
Book value Within 1 year 1-3 years
contract amount years
Bank borrowings 335041546.85 347893031.23 281565349.76 66327681.47
Notes payable 116822674.67 116822674.67 116822674.67
Accounts
226494815.90 226494815.90 226494815.90
payable
Other payables 58821952.01 58821952.01 58821952.01
Long-term
3262450.00 3572382.75 3572382.75
accounts payable
Sub-total 740443439.43 753604856.56 683704792.34 69900064.22
Note: Refer to the description in V. 44 of Section X for details of the difference between the opening
balance of this period and the closing balance of prior year (as at December 31 2020)
(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. 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 of June 30 2021 the Company held bank loans of RMB 255912194.76 as principal (December
31 2020: RMB 334317535.43) at floating rates. On the assumption that other variables remain
unchanged a change in the interest rate by 50 base points will not cause significant impact on the total
profits and shareholders’ equity of the Company.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. 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
(I) Held-for-trading
financial assets
1. Financial assets at fair
value through profit or loss
(1) Investment in debt
instrument
(2) Investment in equity
instrument
(3)Derivative financial
assets
(4) Structural deposits 420000000.00 420000000.00
(5) Performance
compensation 37982988.00 37982988.00
consideration
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
11975419.38 11975419.38
instrument investments
(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. Bearer biological assets
Receivables financing 1214306.00 1214306.00
Total assets continuously
471172713.38 471172713.38
measured at fair value
(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 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
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
No open market is available for the structural deposits receivables financing and other equity
instrument investments classified as financial assets at fair value through profit or loss for the current
period whose fair value is thus measured at cost.The performance compensation classified as financial assets at fair value through profit or loss for
the current period arose from the failure of GDV BVI a subsidiary of the Company to fulfil the
performance commitment in which case the performance promisor shall make compensation with 8% of
the equity in GDV BVI and USD 1.2 million. The fair value of the said 8% equity is calculated according
to the Asset Appraisal Report (Peng Xin Zi Ping Bao Zi [2021] No. S064) issued by Shenzhen Pengxin
Asset Appraisal and Real Estate Valuation Co. Ltd..5. Reconciliation between opening and closing carrying amounts 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
XII. Related-party relationships and transactions
1. Parent of the Company
√ Applicable□ N/A
Unit: 0’000 Yuan Currency: RMB
Proportion of Proportion of the
Name of the Registration Business Registered the Company's Company's voting
parent place nature capital shares held by right held by the
the parent (%) parent (%)
Shenzhen R&D and
Appotronics sales of
Shenzhen 1000 17.62 17.62
Holdings semiconductor
Co. Ltd. products
Description of the parent of the Company
None
The ultimate controlling party of the Company is LI Yi.Other description:
None
2. Subsidiaries of the Company
Please refer to the Notes for details about the subsidiaries of the Company.√ Applicable□ N/A
Refer to the description in IX.1 of Section X for details about the subsidiaries of the Company.3. Associates and joint ventures of the Company
Information of the significant joint ventures or associates of the Company are disclosed in the Annex.√ Applicable□ N/A
Refer to the description in Note IX.3 of Section X for details about the major joint ventures or 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
Name of associates or joint ventures Relationship with the Company
Cinionic Limited Associate
GDC Technology Limited (BVI) Associate
Other description
√ Applicable□ N/A
Refer to the description in IX.3 of Section X for details of the Company’s associates.4. Other related parties of the Company
√ Applicable□ N/A
Name of other related party Relationship between other related party and the
Company
Shenzhen Bevix Technology Co. Ltd. Holding more than 5% of shares in the company
Shenzhen YLX Technology Development
Controlled by the same de facto controller
Co. Ltd.China Film Equipment Corporation and its Minority shareholders holding more than 10% shares
affiliates in the subsidiary and their affiliates
Xiaomi Communications Technologies Co. Minority shareholders holding more than 10% shares
Ltd. and its affiliates in the subsidiary and their affiliates
Beijing Donview Education Technology Co. Minority shareholders holding more than 10% shares
Ltd. and its affiliates in the subsidiary and their affiliates
The Company’s de facto controller Mr. LI Yi serves
WeCast Technology Corp. and its affiliates
as the chairman of WeCast
Other description
None
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
Amount for the current Amount for the prior
Related party Subject matter
period period
Xiaomi Communications
Electronic components
Technologies Co. Ltd. and 151065707.11 99513144.41
and services
its affiliates
China Film Equipment
Power supply water
Corporation and its 14313447.67 10824895.69
cooling and services
affiliates
GDC and its affiliates Electronic components 5711956.57 3586000.00
Beijing Donview
Education Technology Co. Maintenance services 9911.50 17123.89
Ltd. and its affiliates
WeCast Technology Corp.Sales agency services 155309.88
and its affiliates
Sub-total 171256332.73 113941163.99
Sales of goods/rendering of services
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Amount for the current Amount for the prior
Related party Subject matter
period period
Xiaomi Communications
Laser TV and smart
Technologies Co. Ltd. and 341732526.82 254631263.83
mini projector
its affiliates
China Film Equipment Laser light source and
Corporation and its cinema projection 42679705.11 34976389.39
affiliates services
Cinionic Limited Cinema light source 3130401.43 35973430.61
Beijing Donview
Education Technology Co. Education projector 686049.45 6138857.93
Ltd. and its affiliates
GDC and its affiliates Cinema projector and
3729645.10 13274.34
mould
WeCast Technology Corp.6196785.06
and its affiliates
Sub-total 398155112.97 331733216.10
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
The Company as the lessee:
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Lease fees recognized Lease fees recognized in
Name of lessor Type of leased assets
in the current period the prior period
China Film Equipment
Corporation and its Property lease 1037804.47 835379.65
affiliates
Description of leases with related parties
□ Applicable√ N/A
(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
Unit: Yuan Currency: RMB
Amount of Commencement
Affiliated party Maturity date Description
borrowings/loans date
Borrowings
China Film
Equipment Repaid on January
19320000.00 July 6 2020 July 5 2021
Corporation and its 26 2021
affiliates
(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
659.61 657.82
management 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 Provision for
Carrying amount
amount bad debts bad debts
Beijing Donview
Accounts Education Technology
196.18 9.81 3017.00 150.85
receivable Co. Ltd. and its
affiliates
GDC Technology
Accounts
Limited (BVI) and its 1263338.37 63166.92 2283483.24 114174.16
receivable
affiliates
Xiaomi
Accounts Communications
54205349.26 2710267.46 248915862.75 12445793.14
receivable Technologies Co. Ltd.and its affiliates
Accounts WeCast and its
6220785.59 311039.28
receivable affiliates
China Film Equipment
Accounts
Corporation and its 6110620.30 305662.04 6125422.64 306402.16
receivable
affiliates
Accounts Cinionic Limited
979577.26 48978.86 452175.57 22608.78
receivable
Sub-total 68779866.96 3439124.38 257779961.20 12889129.09
China Film Equipment
Prepayments Corporation and its 1887660.61 3107696.59
affiliates
GDC Technology
Prepayments Limited (BVI) and its 2883384.53
affiliates
Sub-total 1887660.61 5991081.12
China Film Equipment
Other
Corporation and its 313305.00 15665.25 296435.00 14821.75
receivables
affiliates
Xiaomi
Other Communications
100000.00 5000.00 100000.00 5000.00
receivables Technologies Co. Ltd.and its affiliates
Sub-total 413305.00 20665.25 396435.00 19821.75
(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
Accounts China Film Equipment Corporation and its
9114032.85
payable affiliates
Accounts GDC Technology Limited (BVI) and its
5593.76
payable affiliates
Sub-total 9119626.61
Receipts in Beijing Donview Education Technology Co.282.94
advance Ltd. and its affiliates
Receipts in China Film Equipment Corporation and its
895854.50 14032071.28
advance affiliates
Sub-total 896137.44 14032071.28
Contract GDC Technology Limited (BVI) and its
15108.32
liabilities affiliates
Contract China Film Equipment Corporation and its
80684.07 1384955.75
liabilities affiliates
Sub-total 80684.07 1400064.07
Other China Film Equipment Corporation and its
19343613.33
payables affiliates
Other Xiaomi Communications Technologies Co.9620.70 101668.48
payables Ltd. and its affiliates
Other WeCast Technology Corp. and its affiliates
154534.83
payables
Sub-total 164155.53 19445281.81
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
Total number of the Company's equity instruments
17100000.00
granted during the period
Total number of the Company's equity instruments0
executed during the period
Total number of the Company's equity instruments
142360.00
lapsed during the period
Granted on: October 14 2019 grant price:
RMB 17.425/share remaining contractual life:
16 months;
Granted on: October 13 2020 grant price:
RMB 17.425/share remaining contractual life:
16 months;
Range of exercise prices and remaining contractual Granted on: April 22 2021 grant price: RMB
life of the Company's share options outstanding at 17.5/share remaining contractual life: 34
the end of the period months;
Granted on: April 22 2021 grant price: RMB
18.5/share remaining contractual life: 34
months;
Granted on: April 22 2021 grant price: RMB21
/share remaining contractual life: 34 months.Range of exercise prices and remaining contractual None
life of the Company's other equity instruments
outstanding at the end of the period
Other description
None
2. Equity-settled share-based payments
√ Applicable□ N/A
Unit: Yuan Currency: RMB
The method of determining the fair value of equity Open market quotes
instruments at the grant date
The basis of determining the number of equity Actual grant amount
instruments expected to be executed
Reasons for the significant difference between the None
estimate in the current period and that in the prior
period
Amounts of equity-settled share-based payments
44720790.55
accumulated in capital reserve
Total expenses recognized arising from equity-
22312482.85
settled share-based payments
Other description
The difference between the the total expenses recognized by equity-settled share-based payments in the
current period and the amount of share-based payments included in owners' equity arises from the
exchange rate translation difference.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
Significant external commitments and nature and amount thereof as of the balance sheet date
1. Significant lease contracts which the Company has entered into or will perform and their financial
impacts are disclosed in the following table:
Rent
Rent Rent
No. Rent address area(square Rent period
purpose expense/year
meters)
Office
administrati
From December
Yaochuan Industrial Zone Tangwei on research
1 2018 to
1 Community Fuhai Street Bao'an 23765.57 and 12376721.56
November 30
District Shenzhen developmen2022
t plant and
dormitory
C1003 Building B6 Dongsheng Office From May 11
2 Science & Technology Park 66 West 898.30 administrati 2021 to May 10 2915517.36
Xiaokou Road Haidian District Beijing on 2023
Rent
Rent Rent
No. Rent address area(square Rent period
purpose expense/year
meters)
Research
20/F 21/F 22/F United Headquarter and From August 1
Building High-Tech Zone No. 63 developmen 2019 to
3 6143.79 2808589.86
Xuefu Road Nanshan District t office December 31
Shenzhen administrati 2021
on
Section B 1/F (1064.92 m2) and 2/F
(2953.09 m2) Building 13 Jintaizhi
Office From October 3
Industrial Park No. 22 Jinyu Avenue
4 4018.01 administrati 2020 to October 2366595.29
Liangjiang New District Chongqing. An
on 2 2025
area of 2979.98 m2 on 3/F Building 13
thereof is used as reserve.Research
and From February
23/F United Headquarter Building
developmen 1 2020 to
5 High-Tech Zone No. 63 Xuefu Road 2047.93 1918477.00
t office January 31
Nanshan District Shenzhen
administrati 2025
on
Room101 1/F Building 22E Phase III Office From March 20
6 of Hong Kong Science and Technology 1138.25 administrati 2019 to March 1846366.32
Park on 19 2022
2. Contingencies
(1). Significant contingencies as of the balance sheet date
√ Applicable□ N/A
Pending litigation
1. Civil litigation and arbitration filed by the Company
As of June 30 2021 there are 21 civil litigation cases filed by the Company. The details are as follows:
Cause of Subject
Case No. Plaintiff(s) Defendant(s) Patents involved Progress
action amount
Defendant 1:
Delta Electronics
Business
Management
(Shanghai) Co.Ltd.
(2019) Yue
Defendant 2:
03 Min Chu Infringement of Appotronics Pending
Delta Video RMB 28
No.s 2943 patent rights of Corporation 200810065225.X (second
Display System million
2944 2946 inventions Limited instance)
(Wujiang)
2948 2951
Limited
Defendant 3:
Shenzhen Super
Network
Technology Co.Ltd.
(2021) Yue Infringement of Appotronics Defendant 1: Pending
RMB
03 Min Chu patent rights of Corporation Delta ZL201610387831.8 (first
300.000
No. 2295 inventions Limited HU Electronics Inc. instance)
Fei and LI Defendant 2:
Yi ZHANG Kesu
Defendant 3:
HUA Jianhao
Defendant 4:
WANG Bo
Defendants:
Delta Electronics
Business
Management
(Shanghai) Co.
(2020) Yue
Ltd. Delta
73 Zhi Min
Infringement of Appotronics Video Display Pending
Chu Nos. ZL200880107739.5 RMB 80
patent rights of Corporation System (first
1335 -1341 ZL200810065225.X million
inventions Limited (Wujiang) instance)
135 1355 -
Limited and1361
Dijia Baosheng
(Beijing)
Electronic
Technology Co.Ltd. etc.2. Civil litigation and arbitration filed against the Company
As of June 30 2021 there are 6 civil litigation cases filed against the Company. The details are as follows:
Cause of Patents Subject
Case No. Plaintiff(s) Defendant(s) Progress
action involved amount
Damages of
Infringemen RMB 16.00
(2019) Yue Pending
t of patent ZL2016103 million + rights
73 Zhi Min Appotronics (first
rights of 87831.8 protection cost
Chu No. 662 Corporation instance)
inventions of RMB
Limited;145343
Futian SPN
Damages of
Projector & Video
Infringemen RMB 16.00
(2019) Yue System Firm of Pending
t of patent ZL2013100 million + rights
73 Zhi Min Shenzhen (second
rights of 17478.0 protection cost
Chu No. 663 instance)
inventions of RMB145343
Damages of
Delta
Infringemen RMB 15.00
(2019) Jing Electronics Pending
t of patent ZL2016103 million + rights
73 Min Chu Inc. (first
rights of 87831.8 protection cost
No. 1275 instance)
inventions of RMB 1.01
Fengmi (Beijing) million
Technology Co. Damages of
Infringemen Ltd.; RMB 15.00
(2019) Jing Pending
t of patent Appotronics ZL2014102 million + rights
73 Min Chu (first
rights of Corporation Limited 49663.7 protection cost
No. 1276 instance)
inventions of RMB 1.01
million
Infringemen Damages of
(2019) Jing Pending
t of patent ZL2013100 RMB 15.00
73 Min Chu (second
rights of 17478.0 million + rights
No. 1277 instance)
inventions protection cost
of RMB 1.01
million
Damages of
Infringemen RMB 15.00
(2019) Jing Pending
t of patent ZL2010106 million + rights
73 Min Chu (first
rights of 24724.5 protection cost
No. 1278 instance)
inventions of RMB 1.01
million
(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
XV. Events after the balance sheet date
1. Material non-adjusting event
□ Applicable√ N/A
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
On April 9 2020 the Company acquired 36% equity holding 93071822 ordinary shares of GDC
BVI against the payment of USD 18.11 million as consideration. GDC BVI is subject to the performance
commitment as follows: the audited net profit after deducting non-recurring profit or loss in 2020 shall
not be less than USD 9.35 million; if the above performance objective fails to be achieved GDC Cayman
a shareholder of GDC BVI shall be obliged to make a compensation of up to USD 5.6 million or
46535911 ordinary shares of GDC BVI.Given GDC BVI a non-majority-owned company of the Company has failed to fulfil its performance
commitment for 2020 communication has been developed between the Company and GDC Cayman on
performance compensation. After several rounds of negotiation and consultation both parties have
reached a settlement scheme on performance compensation for 2020 and have entered into a settlement
agreement among other relevant documents therefor. For details refer to the Announcement 2021-055
disclosed by the Company on the website of Shanghai Stock Exchange (at www. sse. com. cn) and the
designated information disclosure media dated July 16 2021.As per the settlement scheme on performance compensation for 2020 GDC Cayman shall while
executing the settlement agreement transfer its 8% ordinary shares (i.e. 20682627 shares) in GDC BVI
to Appotronics HK and shall within 12 months from the date of executing the settlement agreement
compensate Appotronics HK with USD1.2 million in cash.Pursuant to the performance compensation agreement reached by both parties on June 30 2021 the
Company recognized the performance compensation as held-for-trading financial assets of RMB 37.983
million and recognized the profit or loss on changes in the fair value of RMB 38.1759 million (the
difference arises from the impact of the exchange rate for translation of statements).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
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
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 description:
√ Applicable□ N/A
The Company has no reporting segments for the lack of multiple operations. The details of the Company’s
principal activity income and principal activity cost by businesses and products and by regions are as
follows:
Categorized by businesses and products:
Unit: 0’000 Yuan
Amount of the current period Amount of the prior period
Item Principal activity Principal activity Principal activity Principal activity
income cost income cost
1. Sales 91163.98 65553.48 68717.24 48566.65
2. Projection
18565.59 6437.12 2743.30 4254.95
service
3. Other
739.35 370.63 141.98 157.18
business
Sub-total 110468.92 72361.23 71602.52 52978.78
Categorized by regions:
Unit: 0’000 Yuan
Amount of the current period Amount of the prior period
Project Principal activity Principal activity cost Principal activity Principal activity cost
income income
Domestic 105208.67 69458.21 64013.91 50343.56
Overseas 5260.25 2903.02 7588.61 2635.22
Sub-total 110468.92 72361.23 71602.52 52978.78
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
Sub-total of items within 1 year 510565166.80
1 to 2 years 22014323.32
2 to 3 years
Over 3 years 55200.00
Total 532634690.12
(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
Proportion
Category Book Proportion Book
Proportion of Proportion
Amount Amount value Amount Amount of provision value
(%) provision (%)
(%)
(%)
Provision for
bad debts 532634690.12 100.00 2016202.15 0.38 530618487.97 569449754.94 100.00 1910248.15 0.34 567539506.79
made by group
Including:
Group of
39220043.07 7.37 2016202.15 5.13 37259040.92 37102820.20 6.52 1910248.15 5.15 35192572.05
aging
Combination
of related
parties in the 493359447.05 92.63 493359447.05 532346934.74 93.48 532346934.74
scope of
consolidation
532634690.1
Total / 2016202.15 / 530618487.97 569449754.94 / 1910248.15 / 567539506.792
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 Proportion of provision
Accounts receivable Provision for bad debts
(%)
Group of aging 39220043.07 2016202.15 5.13
Combination of
related parties in the
493359447.05
scope of
consolidation
Total 532634690.12 2016202.15 0.38
Recognition criterion of provision for bad debt made by group and explanation:
√ Applicable□ N/A
Refer to V.10 of Section X for the recognition criterion of provision for bad debt made by group and
explanation
If a provision for bad debts of accounts receivable is made in accordance with the general model of
ECL please disclose relevant information subject to the disclosure of the bad debt provision for other
receivables.□ Applicable√ N/A
(3). 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
1910248.15 105954.00 2016202.15
made by
group
Total 1910248.15 105954.00 2016202.15
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
(5). Top five closing balances of accounts receivable categorized by debtors
√ Applicable□ N/A
Proportion to the
Provision for
Entity Carrying amount balance of accounts
bad debts
receivable (%)
Fengmi (Beijing) Technology Co. Ltd. 356534307.62 66.94
CINEAPPO Laser Cinema Technology
95247572.00 17.88
(Beijing) Co. Ltd.
Appotronics Technology (Changzhou) Co.18725821.64 3.52
Ltd.Appotronics Hong Kong Limited 17397682.40 3.27
Shenzhen Nearbyexpress Technology
12935095.24 2.43
Development Company Limited 646754.76
Sub-total 500840478.90 94.03 646754.76
(6). Accounts receivable derecognized due to transfer of financial assets
□ Applicable√ N/A
(7). Assets and liabilities arising from transfer of accounts receivable and continued
involvement
□ Applicable√ N/A
Other description:
□ Applicable√ N/A
2. Other receivables
Presented by items
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Interest receivable
Dividends receivable
Other receivables 42129668.23 71654117.57
Total 42129668.23 71654117.57
Other description:
□ 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 description:
□ Applicable√ N/A
(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 description:
□ 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
Sub-total of items within 1 year 8924453.98
1 to 2 years 28738931.85
2 to 3 years 3627218.00
Over 3 years 1162166.40
Total 42452770.23
(8). Categories by the nature of the amount
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance of carrying Opening balance of carrying
Nature of receivables
amount amount
Deposits/margins/petty cash 5723951.27 5911673.21
Receivables from related parties
35990730.27 62284074.96
in the scope of consolidation
Indemnity receivable 3577279.61
Temporary receivables 738088.69 374249.92
Total 42452770.23 72147277.70
(9). 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
493160.13 493160.13
January 1 2021
Balance as at
January 1 2021 in
the current period
--transferred to
Stage II
--transferred to
Stage III
--reversed to
Stage II
--reversed to
Stage I
Provision -170058.13 -170058.13
Reversal
Write-off
Cancellation
Other changes
Balance as at June
323102.00 323102.00
30 2021
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 bad debt provisions 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
493160.13 -170058.13 323102.00
made by
group
Total 493160.13 -170058.13 323102.00
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
Proportion to the for bad
Nature of other Closing
Entity Aging balance of other debts
receivables balance
receivables (%) Closing
balance
Within
Receivables from 1 year
Fengmi (Beijing)
related parties in the 21208080.81 and 1- 49.96
Technology Co. Ltd.scope of consolidation 2
years
Within
Shenzhen
Receivables from 1 year
Appotronics Laser
related parties in the 14319500.00 and 1- 33.73
Display Technology
scope of consolidation 2
Co. Ltd.years
Shenzhen Meisheng Deposits/margins/petty 2-3
3574618.00 8.42 178730.90
Industry Co. Ltd. cash years
Shenzhen Science
and Technology Deposits/margins/petty 1-2
1257075.20 2.96 62853.76
Assessment cash years
Management Center
Qingdao Haier Deposits/margins/petty Within
500000.00 1.18 25000.00
Multimedia Co. Ltd. cash 1 year
Total / 40859274.01 / 96.25 266584.66
(13). Accounts receivable involving government grants
□ Applicable√ N/A
(14). ther 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 description:
□ Applicable√ N/A
3. Long-term equity investments
√ 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
Investments
in 472943998.33 39827792.79 433116205.54 467533569.26 45885284.27 421648284.99
subsidiaries
Investments
in
associates
and joint
ventures
Total 472943998.33 39827792.79 433116205.54 467533569.26 45885284.27 421648284.99
(1) Investments in subsidiaries
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing
Provision balance of
Opening Closing
Investees Increase Decrease for provision
balance balance
impairment for
impairment
Appotronics
Timewaying
(Beijing) 27000000.00 27000000.00 27000000.00
Technology
Co. Ltd.Shenzhen
Appotronics
Software 1647962.22 250659.09 1898621.31
Technology
Co. Ltd.Beijing Orient
Appotronics
5900000.00 5900000.00
Technology
Co. Ltd.Fengmi
(Beijing)
30014636.09 824038.89 27500000.00 3338674.98 -6057491.48
Technology
Co. Ltd.Shenzhen
Appotronics
Laser Display 18966857.26 18966857.26
Technology
Co. Ltd.Shenzhen
Appotronics
Display 3000000.00 3000000.00
Device Co.Ltd.CINEAPPO
Laser Cinema 32576902.46 3190227.69 35767130.15
Technology
(Beijing) Co.
Ltd.Qingda
Appotronics
(Xiamen) 5100000.00 5100000.00 827792.79
Technology
Co. Ltd.Shenzhen
Appotronics
Xiaoming 12000000.00 12000000.00 12000000.00
Technology
Co. Ltd.Appotronics
Hong Kong 301668683.52 514966.33 302183649.85
Limited
Appotronics
Technology
2000000.00 2000000.00
(Changzhou)
Co. Ltd.Tianjin
Bainian Film
26954120.20 26954120.20
Partnership
(LP)
WEMAX
24349.32 27739.72 52089.04
LLC
Appotronics
60873.29 139469.18 200342.47
USA Inc.JoveAI
619184.90 88524.85 707709.75
InnovationInc
Fengmi
(Chongqing)
Innovation 27874803.32 27874803.32
Technology
Co. Ltd.Total 467533569.26 32910429.07 27500000.00 472943998.33 -6057491.48 39827792.79
(2) Investments in associates and joint ventures
□ Applicable√ N/A
Other description:
□ Applicable√ N/A
4. Operating income and operating costs
(1). Description of operating income and operating costs
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Amount for the current period Amount for the prior period
Revenue Cost Revenue Cost
Main business 572827875.91 381855853.31 384899378.41 256660786.97
Total 572827875.91 381855853.31 384899378.41 256660786.97
(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 description:
None
5. Investment income
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Amount for the current
Item Amount for the prior period
period
Long-term equity investments accounted
7452000.00
for using the cost method
Investment income from disposal of long-
6057494.48
term equity investments
Investment income from disposal of held-
2145923.39 10824793.71
for-trading financial assets
Total 15655417.87 10824793.71
Other description:
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: 元 Currency: 人民币
Item Amount Description
Gain or loss on disposal of non-current assets 2048154.10
Unauthorized examination and approval or lack
of official approval documents or tax revenue
return and abatement
Government grants recognized in profit or loss
(other than grants which are closely related to the 71808211.32
Company's business and are either in fixed
amounts or determined under quantitative
methods in accordance with the national
standard)
Capital occupation fees charged to the non-
financial enterprises and included in profit or loss
for the current period
Gains when the investment cost of acquiring a
subsidiary an associate and a joint venture is less
than the fair value of the identifiable net assets of
the investee
Gains or losses from exchange of non-monetary
assets
Gains or losses from entrusting others with
2145923.39
investment or asset management
Asset impairment provision made resulting from
force majeure such as natural disasters
Gains or losses from debt restructuring
Enterprise restructuring fees such as staffing
expenses and integration fees
Gains or losses that exceeds the fair value in
transaction with unfair price
Net profit or loss of subsidiaries from the
beginning of the period up to the business
combination date recognized as a result of 11386216.47
business combination of enterprises involving
enterprises under common control
Gains or losses on contingencies that have no
relation with the normal operation of the
Company
Profit or loss on changes in the fair value of held-
for-trading financial assets derivative financial
assets held-for-trading financial liabilities and
derivative financial liabilities and investment
income on disposal of held-for-trading financial
38175900.00
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 provision of accounts
receivable and contract assets that have undergone
impairment test alone
Gains or losses from outward entrusted loaning
Gains or losses from changes in the fair values of
investment properties that are subsequently
measured using the fair value model
Effect of a one-time adjustment on current profit
and loss according to the requirements of tax and
accounting laws and regulations
Custody fees of entrusted operation
Other non-operating income and expenses
501309.74
besides the above
Other gains or losses meeting the definition of
571819.78
non-recurring profit or loss
Effect of income tax -17232653.91
Effects attributable to minority interests -24952896.18
Total 84451984.71
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 Earnings per share
average return
Profit for the reporting period Basic earnings per Diluted earnings per
on net assets
share share
(%)
Net profit attributable to ordinary
6.89 0.33 0.33
shareholders of the Company
Net profit after deduction of non-
recurring profits or losses
3.05 0.15 0.15
attributable to ordinary
shareholders of the Company
3. Differences in accounting data under Chinese Accounting Standards and Oversea Accounting
Standards
□ Applicable√ N/A
4. Others
□ Applicable√ N/A
Chairman: LI Yi
Approval for submission by the Board of Directors: August 24 2021
Revision information
□ Applicable√ N/A