东方精工:2020年半年度报告(英文版)

来源:巨灵信息 2020-09-12 00:00:00
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    广东东方精工科技股份有限公司
    
    2020年半年报英文版披露说明
    
    近年来中国资本市场持续加大对外开放力度,鼓励境外投资者更多参与,东方精工科技股份有限公司(以下简称“公司”)为更好地服务越来越多的境外投资者,让境外投资者更便捷地获取公司经营与财务等方面信息,同时也更充分地向境外投资者传递公司的投资价值,提升公司国际化水平,公司发布披露《2020年半年度报告》的英文版本。
    
    本次报告翻译中,涉及众多瓦楞包装机械行业和财会方面的专业术语。虽然公司已尽力确保原文内容得到准确的转译,但仍可能会存在不恰当之处。公司在此声明:如果您在阅读《2020年半年度报告》的中文、英文文本的过程中,在对文本的理解上发生歧义时,以中文文本为准。
    
    In recent years, China's capital market continues to open to the outside world and encouraged
    
    foreign investors to participate inthe financial market of China. Guangdong Dongfang Precision
    
    Science & Technology Co., Ltd. (hereinafter referred to as ”the company”) discloses its
    
    Semi-annual Report 2020 in English, that we believe can enables for foreign investors to obtain
    
    information about the company's operation and finance more conveniently, and fully convey the
    
    investment value of the company to them, and at the same time help continuously improving the
    
    company's international level.
    
    As the report involves many professional terms translation of Corrugated packaging machinery
    
    industry and financial accounting, the company has made great efforts to ensure the accurate
    
    translation of the original content, but there may still be some inadequacies. The company hereby
    
    declares that in case of any ambiguity in your understanding of the Chinese version and English
    
    version of the Semi-annual Report 2020, the Chinese version shall prevail.
    
    Guangdong Dongfang Precision Science&Technology Co.,Ltd.
    
    Semi-annual Report 2020
    
    August 2020
    
    Section 1 Important Notes, Table of Contents and Interpretation
    
    The company's board of directors, board of supervisors, directors, supervisors,
    
    and senior management ensure that the contents of the semi-annual report are
    
    true, accurate, and complete, that there are no false records, misleading
    
    statements, or major omissions, and if there are any, we shall bear individual
    
    and joint legal responsibilities.
    
    Tang Zhuolin, person in charge of the company, Qiu Yezhi, chief in charge of
    
    accounting work, and Qiu Yezhi, head of accounting institution (accounting
    
    officer) hereby confirm that the financial report in the semi-annual report is
    
    true, accurate and complete.
    
    All the directors attended the board meeting to review this report.
    
    The relevant risks that may exist in the company's operation and development
    
    are described in detail in “X. Risks faced by the company and countermeasures”
    
    in Section 4 “Discussion and Analysis of Business Situation” of this report.
    
    Investors are advised to read this part.
    
    The company plans not to distribute cash dividends, neither give away bonus
    
    shares, nor capitalize from public reserve.
    
    Table of Contents
    
    Section 1 Important Notes, Table of Contents and Interpretation ........................................... 1
    
    Section 2 Company Profile and Main Financial Indicators......................................................... 6
    
    Section 3 Company Business Overview...................................................................................... 11
    
    Section 4 Discussion and Analysis of Business Situation ........................................................... 28
    
    Section 5 Important Matters....................................................................................................... 54
    
    Section 6 Changes in Shares and Shareholders ......................................................................... 72
    
    Section 7 Preference Shares ........................................................................................................ 81
    
    Section 8 Relevant Information on Convertible Corporate Bonds ........................................... 82
    
    Section 9 Directors, Supervisors and Senior Management........................................................ 83
    
    Section 10 Corporate Bonds .................................................................................................... 85
    
    Section 11 Financial Report ........................................................................................................ 86
    
    Section 12 Catalogue of Documents for Reference. ................................................................. 246
    
    Interpretation
    
    InterpretationItem                    Refersto Interpretation
    Company,DongfangPrecision,thecompany   Refersto GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.
    DongfangPrecision(China)            Refersto Guangdong  Dongfang  Precision  Science&Technology  Co.,Ltd.
                                            CorrugatedBoxPrintingMachineDivision
    Fosber Group                        Refersto FosberS.p.A.
    FosberAsia                         Refersto GuangdongFosberIntelligentEquipmentCo.,Ltd.
    Fosber US                          Refersto FosberAmerica,Inc.
    Fosber Tianjin                       Refersto Fosber(Machinery)TianjinCo.,Ltd.
    Tiruna Group                        Refersto TirunaGroupIndustrial,S.L.
    Tiruna S.L.U                        Refersto TirunaS.L.U.
    Tiruna US                          Refersto TirunaAmericainc.
    Italy QCorr                         Refersto QuantumCorrugatedS.r.l.
    DongfangPrecision(Europe)/ItalyEDF     Refersto EDFEuropes.r.l.
    DongfangPrecision(Netherland)         Refersto DongFangPrecision(Netherland)CooperatiefU.A.
    DongfangPrecision(HK)              Refersto DongfangPrecision(HongKong)Co.,Ltd.
    Parsun Power                        Refersto SuzhouParsunPowerMachineCo.,Ltd.
    Shunyi Investment                    Refersto SuzhouShunyiInvestmentCo.,Ltd.
    YinglianDigital                      Refersto FoshanYinglianDigitalPrintingEquipmentCo.,Ltd.
    Jiateng Robot                        Refersto GuangdongJiatengRobotAutomationCo.,Ltd.
    Pride, BeijingPride                    Refersto BeijingPrideNewEnergyBatteryTechnologyCo.,Ltd.
    ChangzhouPride                     Refersto ChangzhouPrideNewEnergyBatteryTechnologyCo.,Ltd.
    Pulead                            Refersto PuleadTechnologyIndustryCo.,Ltd.
    BAIC                             Refersto BeijingAutomotiveGroupIndustryInvestmentCo.,Ltd.
    CATL                             Refersto ContemporaryAmperexTechnologyCo.Limited
    Foton Motor                        Refersto BeiqiFotonMotorCo.,Ltd.
    Qinghai Puren                       Refersto Qinghai Puren Intelligent Technology R & D Center (Limited
                                            Partnership)
                                            Corrugated cardboard is made into corrugated boxes by printing,
    Corrugated box                      Refersto grooving,die-cuttingandsticking boxes; corrugatedboxesare the most
                                            widelyusedpackagingproducts.
    Corrugated boxautomaticprintinglinkageline  Refersto A complete set of corrugated paper box printing machineryequipment
    and stand-aloneproducts                       thatintegratesallorpartofthe functionsofleadingedgepaperfeeding,
                                            printing,grooving,die cutting,andforming.It hasthe characteristicsof
                                            highly integrated functions, high automation level, and intensive
                                            technology.It can save capital investment, manual investment, reduce
                                            laborintensity and increase production efficiencyof carton production
                                            enterprises.Thistype of product has strong requirementson equipment
                                            manufacturers' design  level,  scientific  research  and  innovation
                                            capabilities,assemblytechnology,andsparepartsfinishing.
                                            The roll base paper goes through a production line consisting of
                                            corrugating,gluing,bonding,paper-dividingandlining,and cuttinginto
    Corrugated boardproductionline           Refersto specification paperboard. It is mainly composed of two relatively
                                            independent process  sections:  wet-end  equipment  and  dry-end
                                            equipment.
                                            Equipment matched with corrugated box printing linkage line or
                                            stand-aloneproducts, which can provide corrugated box printing and
    Prepress andpostpressintelligentautomatic    Refersto packaging production process of pre-press and post-press related
    packaging equipment                         functions, including multi-color complete sets of printing slotting
                                            die-cuttingmachine, pre-feeding machine, waste transfer equipment,
                                            intelligentstackingequipment,stickyboxequipmentandsoon.
                                            Referstothe propulsionengineinstalledonthe outsideofthe hull(side
    Outboard motor                      Refersto oftheship),usuallysuspendedontheoutsideofthetransom,alsoknown
                                            astheoutboardengine.
                                            ManufacturingExecution System is a set of production information
                                            managementsystem for workshop execution layer of manufacturing
                                            enterprises.MES can provide management modules for enterprises,
                                            including manufacturing data management, planning and scheduling
                                            management,  production  scheduling  management,  inventory
    MES                              Refersto management, quality management, human resource management, work
                                            center/equipment  management,  tool  management,  purchasing
                                            management,costmanagement,projectKanbanmanagement,production
                                            processcontrol, bottomdata integrationanalysis, upperdata integration
                                            anddecomposition, etc so as to create a solid, reliable, comprehensive
                                            and feasible manufacturing collaborative management platform for
                                            enterprises.
    ERP                              Refersto EnterpriseResourcePlanning
                                            WarehouseManagementSystem.Throughthefunctionsofincomingand
                                            outgoingbusiness,warehouseallocation,inventoryallocationandvirtual
    WMS                             Refersto warehouse  management, WMS  is  a  management system  that
                                            comprehensivelyapplies the functions of batch management, material
                                            correspondence,inventorycount,qualityinspectionmanagement,virtual
                                            warehousemanagementandreal-timeinventorymanagement.
    SCADA                           Refersto SupervisoryControlAndDataAcquisition
    APS                              Refersto AdvancedPlanningandScheduling
                                            AutomatedGuidedVehicle,referstothetransportvehicleequippedwith
    AGV                             Refersto electromagneticoropticalautomaticnavigationdevices,whichcandrive
                                            alongtheprescribednavigationpath,withsafetyprotectionandvarious
                                            transferfunctions.
    CSRC                             Refersto ChinaSecuritiesRegulatoryCommission
    Shenzhen Exchange,Exchange            Refersto ShenzhenStockExchange
    Yuan,10,000yuan,100millionyuan        Refersto RMBYuan,RMB10,000yuan,RMB100millionyuan
    Reporting period,thisreportingperiod       Refersto January1,2020toJune30,2020
    
    
    Section 2 Company Profile and Main Financial Indicators
    
    I. Company profile
    
    Stock abbreviation                DongfangPrecision      Stockcode            002611
    Stock exchangewherethestockislisted  ShenzhenStockExchange
    The Chinesenameofthecompany       广东东方精工科技股份有限公司
    The Chineseabbreviationnameofthe    东方精工
    company (ifany)
    The company'sforeignname(ifany)     GUANGDONGDONGFANGPRECISIONSCIENCE&TECHNOLOGYCO.,LTD
    Abbreviation ofthecompany'sforeign    DONGFANGPRECISION
    name (ifany)
    The company'slegalrepresentative      TangZhuolin
    
    
    II. Contact person and contact information
    
                                 Secretary oftheBoard              SecuritiesAffairsRepresentative
    Name                         ZhouWenhui                    ZhuHongyu
                                 25th Floor,HisenseSouthBuilding,1777  25thFloor,HisenseSouthBuilding,1777
    Contact address                  ChuangyeRoad,NanshanDistrict,      ChuangyeRoad,NanshanDistrict,
                                 Shenzhen, Guangdong              Shenzhen,Guangdong
    Phone                         0755-36889712                   0755-36889712
    Fax                           0755-36889822                   0755-36889822
    Email                         ir@vmtdf.com                   ir@vmtdf.com
    
    
    III. Other circumstances
    
    1. Contact information of the company
    
    Whether the company's registered address, company office address and its postal code, company website and e-mail address have
    
    changed during the reporting period.
    
    □ Applicable √ Not applicable
    
    The company's registered address, company office address and its postal code, the company's website and e-mail address remain
    
    unchanged during the reporting period, which can be found in the 2019 annual report.
    
    2. Information disclosure and location.
    
    Whether the information disclosure and location have changed during the reporting period.
    
    □ Applicable √ Not applicable
    
    The name of the information disclosure newspaper selected by the company, the URL of the website designated by the CSRC that
    
    publishes the semi-annual report, and there is no change in the reporting period of the company's semi-annual report. For details,
    
    please refer to the 2019 annual report.
    
    IV. Main accounting data and financial indicators
    
    Does the company need to retroactively adjust or restate previous year's accounting data
    
    □ YES √ NO
    
                                      Currentperiod      Sameperiodoflastyear     Increaseordecrease
                                                                        by...thanthepreviousperiod
    Operating income(yuan)                    1,177,491,225.13        4,391,349,294.89              -73.19%
    Net profitattributabletoshareholdersof           127,198,462.09         182,391,136.39              -30.26%
    the listedcompany(yuan)
    Net profitattributabletoshareholdersof
    the listedcompanyafterdeducting                81,018,675.86         166,155,556.81              -51.24%
    non-recurring gainsandlosses(yuan)
    Net cashflowfromoperatingactivities             29,409,409.32        1,419,240,751.97              -97.93%
    (yuan)
    Basic earningspershare(yuan/share)                    0.08                0.10              -20.00%
    Diluted earningspershare(yuan/share)                  0.08                0.10              -20.00%
    Weighted averagereturnonnetassets                   2.89%               4.47%              -1.58%
                                  At theendofthereporting   Attheendoflastyear     Increaseordecrease
                                                                        by...thanthepreviousperiod
    Total assets(yuan)                        6,485,012,563.38        6,273,516,157.31               3.37%
    Net assetsattributabletoshareholdersof
                                         4,478,400,049.32       4,337,064,607.87               3.26%
    the listedcompany(yuan)
    
    
    V. The changes of the main financial indicators in the reporting period compared with the
    
    data in the same period last year after being adjusted according to comparable standards.
    
    In view of the change in the scope of the company's consolidated financial statements during the reporting period comparedwith the same period last year: Pride was included in the company's consolidated financial statements in the first half of 2019, whileno longer included in the company's consolidated financial statements during the reporting period, and the main business ofDongfang Precision focuses on high-end smart equipment. In order to more accurately reflect the changes in the operatingperformance of the company's main business in the first half of 2020 compared with the same period last year, and to ensure that therevenue and profit data are comparable, we compare the revenue and profit data for the reporting period with the data adjustedaccording to the comparable caliber excluding Pride in the same period of last year, as shown in the following table:
    
                                                       After beingadjusted
                                     Reporting period    accordingtothecomparable Increaseordecreasechange
                                                      caliberinthesameperiod
                                                           last year
    Operating income(yuan)                    1,177,491,225.13        1,194,294,360.00              -1.41%
    Net profitbelongingtoshareholdersofthe          127,198,462.09         117,761,020.85               8.01%
    listed company(yuan)
    Net profitafterdeductingnon-recurring             81,018,675.86         101,320,863.52              -20.04%
    gains andlossesbelongingtoshareholders
    of thelistedcompany(yuan)
    Net cashflowfromoperatingactivities             29,409,409.32          59,659,733.31              -50.70%
    (yuan)
    
    
    Supplementary note on "net cash flow from operating activities" during the reporting period:
    
    During the reporting period, the parent company paid enterprise income tax in advance and paid part of the prepaid tax to thecompetent tax authorities in accordance with the provisions of the tax authorities, resulting in a large amount of cash outflow frombusiness activities in the reporting period; after the completion of the settlement and payment of enterprise income tax, the taxauthorities returned about 88.46 million yuan of prepaid tax to the parent company in July 2020. Excluding this effect, the net cashflow generated by operating activities during the reporting period increased by about 98% compared with the comparable adjustedamount in the same period last year.
    
    VI. Differences in accounting data under domestic and foreign accounting standards
    
    1.The difference between net profit and net assets in financial reports disclosed in accordance with
    
    international accounting standards and in accordance with Chinese accounting standards at the same time
    
    □ Applicable √ Not applicable
    
    During the reporting period, there was no discrepancy between the net profit and net assets in the financial reports disclosed in
    
    accordance with international accounting standards and in accordance with Chinese accounting standards.
    
    2.The difference between net profit and net assets in financial reports disclosed in accordance with overseas
    
    accounting standards and in accordance with Chinese accounting standards at the same time
    
    □ Applicable √ Not applicable
    
    There was no discrepancy between the net profit and net assets in the financial report disclosed in accordance with overseas
    
    accounting standards and in accordance with Chinese accounting standards during the reporting period.
    
    VII.Non-recurring items and amounts
    
    √ Applicable □ Not applicable
    
    Unit: yuan
    
                         Item                           Amount               Explanation
    Gains andlossesfromdisposalofnon-currentassets(including                2,745.13
    write-offs ofassetimpairmentprovisions)
    Government subsidies included in the current profit and loss                     Fordetails,pleaserefertonotes
    (closely related to the business of the enterprise, except for            7,097,271.94VII.46andVII.52ofthefinancial
    government subsidiesthatarefixedorquantifiedaccordingtothe                     report
    national unifiedstandard)
    In addition to the effective hedging business related to the
    company's normal business operations, holding transactional
    financial assets,derivativefinancialassets,transactionalfinancial
    liabilities, fairvaluechangesinderivativefinancialliabilities,and           46,010,424.48
    disposal of transactionalfinancialassets and derivative financial
    investment income from assets, trading financial liabilities,
    derivative financialliabilitiesandotherdebtinvestments
    Other non-operatingincomeandexpensesotherthantheabove             -1,288,845.41
    Deduct: theamountofincometaximpact                            5,538,643.77
    Minority shareholders'equityimpact(aftertax)                         103,166.14
    In total                                                  46,179,786.23           --
    
    
    For the company's non-recurring gains and losses items defined by the "Announcement No. 1 of Information Disclosure by
    
    Companies Offering Securities to the Public — Non-recurring Gains and Losses" and the non-recurring gains and losses items
    
    defined by "Announcement No. 1 of Information Disclosure by Companies Offering Securities to the Public —Non-recurring Gains
    
    and Losses" as recurring gains and losses, the reasons should be explained
    
    □ Applicable √ Not applicable
    
    During the reporting period of the company, there were no situations in which the non-recurring gains and losses items listed in
    
    accordance with the definition of "Announcement No. 1 of Information Disclosure by Companies Offering Securities to the Public —
    
    Non-recurring Gains and Losses" were defined and listed as recurring gains and losses.
    
    Section 3 Company Business Overview
    
    I. The main business of the company during the reporting period
    
    Dongfang Precision takes "smart manufacturing" as its strategic vision and business core, andis one of the earliest companies engaged in R&D, design and production of intelligent corrugatedcarton packaging equipment in China. Since its listing in 2011, the company has used the capitalmarket to expand the industry chain of corrugated box packaging equipment. At present, it hasbecome a leading domestic and international leading supplier of intelligent corrugated boxpackaging equipment.The layout and operation of the company’s business sectors are as follows:
    
    1. Smart packaging equipment business
    
    During the reporting period, the company's business of intelligent packaging equipment focused on
    
    the design, R & D, production, sales and service of "corrugated box packaging automation
    
    equipment and production lines". It has business entities focusing on the field of intelligent
    
    packaging equipment, such as Dongfang Precision (China), Dongfang Precision (Europe), Fosber
    
    Group, Fosber Asia, Fosber US and Italy QCorr, which has formed a global group layout.
    
    1.1 Main products and uses
    
    As a typical midstream industry, the corrugated cardboard packaging industry uses corrugated
    
    cardboard base paper produced by upstream paper companies as raw materials to produce
    
    corrugated cardboard finished products, which are widely used in household appliances, electronic
    
    products, IT, food and beverage, books, daily chemical, textile and other downstream consumer
    
    industries and logistics express companies. Compared with metal, plastic, and glass packaging
    
    products, corrugated cardboard boxes are degradable, easy to recycle and reuse, and are recognized
    
    as "green packaging products".
    
    Dongfang Precision is the earliest company engaged in the R&D, design and production of
    
    intelligent corrugated box packaging equipment in China. It provides high-tech content, high
    
    performance and high-quality cardboard production and printing and packaging equipment.
    
    At present, the company has expanded from the corrugated box printing equipment in the initial
    
    stage of listing to three major product lines that can provide customers with high-end corrugated
    
    cardboard production lines, corrugated cardboard printing slotting die-cutting machines, and
    
    corrugated cardboard printing slotted sticking box linkage lines and the solution of the whole
    
    industrial chain equipment including prepress and postpress intelligent automatic packaging
    
    equipment.
    
    Schematic diagram of a corrugated carton packaging intelligent model factory(1-10 are the company's existing products, 11 is the company's strategic expansion link)The main products of the company's intelligent packaging equipment business include: corrugatedcardboard production line, corrugated box printing complete production line, prepress and postpressintelligent automation equipment (including multi-color complete printing slotting die-cuttingmachine, pre-feeder, waste conveying equipment, intelligent stack Stacking equipment, gluingequipment, etc.), as well as automated logistics systems.
    
    1.1.1 Corrugated board production line
    
    The company's corrugated board production line includes raw paper holders and splicing machines,
    
    single-sided machines, glue coating machines, double-sided machines, rotary cutters, slitting and
    
    crimping machines, cross-cutting machines, stacking machines, production line intelligent
    
    management systems, and noise prevention units. The corrugated board production line is a
    
    large-scale automation equipment.
    
    The company's corrugated board production line is positioned at the high end, and it is superior to
    
    domestic counterparts in terms of speed, width, energy saving, safety, and operation automation,
    
    and has reached the world's leading level. The intelligent design and smooth linear process included
    
    in the company's products can effectively reduce labor costs for downstream corrugated board
    
    manufacturers, greatly improve production efficiency, reduce management pressure, and improve
    
    business efficiency.
    
    The company's corrugated board production line business is facing the global market. The company
    
    develops, produces and sells corresponding products for the performance requirements of different
    
    customers in the Asian, European and American markets.
    
    1.1.2 Corrugated box printing production line
    
    The company's corrugated box printing complete production line products include corrugated box
    
    printing linkage line, printing stand-alone products, and prepress and postpress intelligent automatic
    
    equipment.
    
    The company develops and produces two series of production and sales for different customers in
    
    Asia, Europe, and the United States. Corrugated carton printing complete production line equipment,
    
    including: Asia-Pacific Star Series (APSTAR), mainly exported to Europe and the United States
    
    and other developed markets; TOPRA series (TOPRA), mainly for domestic large and
    
    medium-sized group customers or listed companies.
    
    Schematic diagram of the company's printing equipment stand-alone productsSchematic diagram of the company's up-printing fixed sticky box linkage line (left)
    
    and down-printing open and closed sticky box linkage line (right)
    
    Schematic diagram of the company's down-printing automatic printing linkage line product
    
    The company's corrugated box printing production line is exported to more than 30 countries and
    
    regions in Europe, America, Southeast Asia and India. At present, the company has become a
    
    high-profile corrugated box printing equipment manufacturer in the global market and China.
    
    1.2 Main business model
    
    1.2.1 Business model
    
    Dongfang Precision's intelligent packaging equipment business adopts the "design and development
    
    + production + sales + service one-stop" business model, and implements "differentiated" operation
    
    and service-oriented manufacturing.
    
    Fosber Group, Fosber Asia’s corrugated board production line business under Dongfang Precision,
    
    and corrugated box printing equipment business of Dongfang Precision (China) and Dongfang
    
    Precision (Europe) have the product design and R&D strength, and have the production capacity to
    
    meet sales demand.
    
    In terms of "differentiated" operation, on the one hand, the company's corrugated board production
    
    line business and corrugated box printing complete production line business are positioned at the
    
    mid-to-high end, and the market is oriented to large and medium-sized customers. The product has
    
    high technical content, high intelligence, stable quality and good reliability; On the one hand, the
    
    company provides high-quality after-sales services to customers through professional technical
    
    teams, spare parts preparation, remote monitoring, and technical support, and uses services to
    
    empower manufacturing.
    
    The company has been working hard in the industry for many years. Both the Fosber corrugated
    
    cardboard production line brand and Dongfang Precision corrugated box printing equipment brand
    
    have high visibility and brand influence in the industry, which helps the company obtain a premium
    
    for brands, products and services from the market.
    
    1.2.2 Procurement model
    
    The company mainly purchases electrical components, standard parts, raw materials and auxiliary
    
    materials from external suppliers; the core machining parts are produced by the company itself; the
    
    equipment automation control program is developed by the company itself.
    
    1.2.3 Production model
    
    The company adopts 90% of orders to organize production according to customer orders and 10%
    
    according to market forecast orders. Through the combination of the two production modes, the
    
    company can not only better meet the customer's order needs, but also adjust the production rhythm
    
    through reasonable warehouse regulation to ensure that the company can respond in a timely
    
    manner and meet customer needs.
    
    1.2.4 Sales model
    
    The company mainly adopts the direct sales model in the domestic market, and adopts the direct
    
    sales plus channel agent sales model in the foreign market to carry out business sales.
    
    From the perspective of payment and settlement methods, the company is a professional equipment
    
    supplier and has a high brand awareness in the industry. Both domestic and foreign corrugated box
    
    printing equipment sales adopts the payment and settlement method of the customer first prepay,
    
    pay another part when delivery, and pay for the remaining part after installation and commissioning.
    
    From the perspective of product form, the company simultaneously sells the whole machineand the sales of accessories and services, each of which has its own value. The whole machine is aone-time sale with a large single amount; accessories and services can be sold repeatedly in the lifecycle of the whole machine, with a higher gross profit margin. The increasing market share of thecompany's machine products has led to a rigid increase in the demand for accessories and services;at the same time, high-quality after-sales service in turn promotes the sales of machine products.The two complement each other and achieve mutual success, driving the continuous growth of thecompany's overall business.
    
    1.3 Key performance drivers
    
    1.3.1 The overall market scale of the downstream industry is growing steadily, which provides
    
    a strong support for the demand for corrugated carton packaging equipment.
    
    The downstream industry of the company's intelligent packaging equipment business is thecorrugated box production industry, and the downstream end customers of the corrugated boxindustry are electronic products, food and beverage, express delivery, home appliances and othermajor consumer industries.With the rapid development of online shopping, express delivery andother industries, the continuous improvement of environmental standards, the internationaladvocacy of circular economy, the domestic market demand for carton packaging productsrepresented by corrugated carton packaging has steadily increased.
    
    Online consumption has become one of the main daily consumption patterns of domesticconsumers. The growth of the express delivery industry, which provides logistics and transportservices for online consumption, is an important driver of the growth of the corrugated packagingindustry. According to the data of "China Paper", in 2018, the top three downstream areas ofcorrugated packaging in China were electronic products (accounting for 26.0%), beverages(accounting for 21.2%), food (accounting for 20.3%); express industry Currently only 13%.
    
    The domestic health security incident in 2020 has accelerated the development of many fields, and
    
    online retail is a very representative field. With the rapid development of emerging consumption
    
    models, China's express delivery industry has also entered a period of rapid development.
    
    According to data from the State Post Bureau, China's express delivery volume exceeded 40 billion
    
    in 2017; China's express delivery volume exceeded 50 billion in 2018; in 2019, the nationwide
    
    express delivery service business volume totaled 63.52 billion, a year-on-year increase of 25.3%.
    
    According to the "13th Five-Year" development indicators of the express delivery industry, China's
    
    express delivery volume will reach the goal of 75 billion pieces in 2020, and the express delivery
    
    per capita will increase from 0.01 in 2000 to about 50 pieces in 2020. The average annual
    
    compound growth rate of express delivery volume from 2008 to 2020 reached 38.5%.The rapid
    
    development of China's express delivery industry has prompted the market size of the express
    
    packaging industry to continue to rise. In 2018, the express corrugated packaging market reached 33
    
    billion yuan.
    
    2013-2018 China Express Corrugated Packaging Market Size and Growth
    
    Data source: China Paper Association
    
    Under the background of consumption upgrade, industrial upgrade drive and service industry
    
    leadership, with the increase in the richness of express service application scenarios, the deepening
    
    of the depth of embedded production and life, and the expansion of the industry involved, the
    
    express industry has great potential and space for development. According to the forecast of the
    
    Prospective Industry Research Institute, the scale of China's express delivery corrugated paper
    
    market will continue to increase in 2020-2025, and is expected to reach 86.4 billion yuan in 2025.
    
    Compared with developed countries such as Japan and the United States, that figure for per capita
    
    consumption of corrugated packaging in China is still relatively small. According to the data in
    
    2017, the per capita consumption of corrugated paper packaging in China is 50.8 square meters per
    
    person, compared with 108.5 square meters per person in the United States and 110.6 square meters
    
    per person in Japan. That figure in China has a broad space for improvement, which has the
    
    potential to be almost doubled.
    
    Comparison of Per Capita Consumption of Corrugated Packaging
    
    From 2012 to 2017 (square meters / person)
    
    Data source: International Corrugated Case Association (ICCA), Wind Consulting
    
    1.3.2 With the increase of market concentration brought about by the change of industry
    
    market competition pattern, the market share of head enterprises will continue to increase.
    
    In recent years, due to factors such as supply-side reforms, stricter environmental protection, and
    
    high labor and raw material costs, SMEs in the corrugated box packaging industry have accelerated
    
    their elimination, and the development trend of increasing market share of large enterprises is
    
    becoming increasingly clear. The number of enterprises above designated size in the paper and
    
    cardboard container manufacturing industry (industrial corporations with an annual operating
    
    income of more than 20 million) decreased from 2,696 in 2013 to 2,391 in 2018, and the industry
    
    consolidation trend is obvious.
    
    Data show that since 2016, the capacity utilization rate of the company's product downstream
    
    customer industry leading companies (Nine Dragons Paper, Shanying Paper, etc.) has continued to
    
    increase to more than 90%, and industry production capacity has actually accelerated to concentrate
    
    on leading companies. However, compared with the market share of CR5 of 40% to 70% in Europe
    
    and the United States and other countries, the domestic corrugated box factory industry CR5 is less
    
    than 10%, and there is still much room for improvement in the industry concentration.
    
    2017 CR5 international comparison of corrugated packaging industry
    
    Data source: Frost & Sullivan, Wind Consulting
    
    In recent years, China’s demographic dividend has gradually disappeared, labor costs have
    
    continued to rise, and supply-side reforms, restricted industrial produciton due to stricter
    
    environmental protection, industrial upgrades, and centralized industrial production capacity have
    
    gradually become the trend, end customers have placed increasingly higher requirements on the
    
    quality, delivery speed, and cost-effectiveness of corrugated packaging products. Large-scale carton
    
    factories prefer to purchase medium-to-high-end corrugated cardboard intelligent packaging
    
    production lines based on considerations such as high efficiency, high quality, cost reduction,
    
    environmental protection and energy saving.
    
    Market demand will promote the upgrading of industry technology and equipment, and accelerate
    
    the integration of the industry. This trend will be transmitted to corrugated board manufacturing
    
    equipment and corrugated board printing equipment, accelerating the increase of industry
    
    concentration in the equipment industry, and eliminating outdated equipment manufacturers with
    
    low technological content and low production efficiency. In addition, as the number of equipment in
    
    stock in the industry market has increased, the downstream customer's demand for equipment spare
    
    parts and technical support is increasing. The proportion of spare parts sales and technical support
    
    services in the company's business structure increases, and its higher gross profit margin will drive
    
    the company's overall gross profit margin.
    
    2. Outboard motor business
    
    The main body of the company's outboard motor business is Parsun Power. Parsun Power is a
    
    high-tech enterprise focused on providing high-quality, cost-effective watercraft power equipment
    
    for the global market, and is currently the largest manufacturer of outboard motor products in
    
    China.
    
    2.1 Main products and uses
    
    Parsun Power's main products are outboard motors, which mainly include four-stroke, two-stroke,
    
    electric and special-purpose water-jet propulsion outboard motors. There are currently more than 20
    
    categories and more than 200 models, of which four-stroke covers 2.6 horsepower -115 horsepower,
    
    two strokes cover a full range of 2hp-90hp outboard motors. It is the manufacturer with the most
    
    complete models and the largest power range among domestic brands. Some models have maturely
    
    used EFI technology, and the product performance indicators have reached the international
    
    advanced level and can meeet the needs of high-end customers in Europe and America. In addition,
    
    Parsun Power continues to develop new products with higher horsepower outboard motors, so as to
    
    break the monopoly of foreign outboard motors on medium-horsepower outboard motors.
    
    All outboard motor products of Parsun Power are independently developed. The company has
    
    passed the ISO9001 quality management system certification and ISO14001 environmental
    
    management system certification. The products have passed the EU CE certification, the US EPA
    
    certification, and the CCS certification of the authoritative unit China Classification Society. The
    
    company is also the first drafting unit of the domestic outboard engine industry standard "Technical
    
    Conditions for Outboard Engine Gasoline Engines" (JB/T11875-2014).
    
    Outboard motors can be widely used in leisure and entertainment industries (yachts, speedboats,
    
    etc.), maritime patrols (patrol boats, etc.), military uses (assault boats, landing craft), fishing, and
    
    water transportation.
    
    Schematic diagram of outboard motor products
    
    2.2 Main business model
    
    Parsun Power's outboard motor business adopts the "design R&D + production + sales" business
    
    model, and implements a "differentiation + cost-leading" business strategy, and adopts a direct sales
    
    plus channel agent sales model to carry out business sales.
    
    Parsun Power can independently develop and produce various types of outboard motor products,
    
    and focus on small and medium horsepower outboard motor products. At the same time, it can
    
    make full use of the domestic perfect manufacturing industry chain and its own production
    
    experience to provide customers with cost-effective watercraft power equipment to seize the
    
    market.
    
    2.3 Key performance drivers
    
    With economic development and growth in per capita income, emerging markets such as Asia,
    
    Africa, Oceania, and Latin America (especially China) will gradually become the main incremental
    
    markets for outboard motors and their applications. In addition, various specialized markets (such
    
    as emergency rescue, military) also have huge market potential in the future.
    
    Parsun Power will continue to increase investment in the research and development of new products
    
    for high-power outboard engines and continue to launch new products that can meet the needs of
    
    market customers.
    
    The continuous growth of the demand for outboard engines in the industry market, and Parsun
    
    Power continues to improve its own capacity and launch high-horsepower outboard engine products
    
    with independent intellectual property rights to meet the needs of the market, which are the main
    
    performance drivers for the development of Parsun Power's main business.
    
    II. Major changes in major assets
    
    1. Major changes in main assets
    
              Majorassets                               Majorchangesindication
    Equity assets                   Thebalanceofequityassetsincreasedby10.72%overtheendoflastyear,mainlydueto
                                a 1%increaseinthecompany'sshareholdinginJiatengRobotinthecurrentperiod.
    Fixed assets                    Nosignificantchange.
    Intangible assets                 The balance of intangibleassetsincreasedby 27.15% overthe end of last year,mainly
                                duetotheacquisitionofAgnatiassetsbyFosberGroupinthecurrentperiod.
    Project underconstruction          The balance of projects under constructionincreased by 163.17% over the end of last
                                year,mainlyduetothenewproductionequipmentofFosberGroupinthecurrentperiod
                                The balance of transactional financial assets increased by 28.34% over the end of last
    Transactional financialassets         year, mainly due to the addition of bank wealth management products in the current
                                period.
                                The balanceofadvancepaymentincreasedby107.25%overtheendoflastyear,mainly
    Advance payment                due to the increasein paymentsforthe purchaseofraw materialsin the currentperiod.
    Inventory                      The inventory balance increased by 24.88% over the end of last year, mainly due to
                                delaysinproductionduetotheepidemic.
    Other currentassets               The balance of other current assets increased by 438.50% over the end of last year,
                                mainlyduetotheadvancepaymentofenterpriseincometaxbytheparentcompany.
    
    
    2. Main overseas assets
    
    √ Applicable □ Not applicable
    
                                                                           The      Whether
                                                       Control            proportionof  thereisa
    Asset specific  Causeof   Assetsize   Location   Operating  measuresto Incomestatus  overseas   significant
      content    formation                        model    ensureasset           assetsinthe    riskof
                                                       security             company's  impairment
                                                                         net assets
    Holds 100% M&A      1,465,492,26Italy       Produceand Operation   Good          11.35%NO
    equity of    investment         4.73          marketallby management
    Fosber S.p.A.                              oneself
    Holds 100% M&A      162,315,494.          Produceand Operation
    equity of    investment          70Italy       marketallby management Good           0.86%NO
    Italy EDF                                oneself
    
    
    III.Analysis of core competitiveness
    
    1. Comprehensive industrial chain layout, providing overall solutions
    
    Dongfang Precision is one of the global leaders in the field of intelligent corrugated box packaging
    
    equipment. It has a full industry chain layout within the industry and has the ability to provide
    
    high-end intelligent corrugated box packaging equipment solutions.
    
    Dongfang Precision undertakes corrugated board production line and unit equipment business
    
    through its subsidiaries Fosber Group, Fosber Asia, Fosber US and Italy QCorr; undertakes
    
    corrugated box printing production line business through Dongfang Precision (China) and
    
    Dongfang Precision (Europe); through joint stock company Jiateng Robot to lay out an automated
    
    logistics system business.
    
    Schematic diagram of the overall solution of the company's intelligent corrugated packaging equipment2. Stable, reliable and technologically advanced products
    
    The company's intelligent packaging business segment's corrugated box printing complete
    
    production line has leading design concepts, highly integrated functions, high degree of automation,
    
    and advanced overall performance. Leading competitors in terms of overall performance and
    
    product cost performance such as operating stability and life, printing quality, printing efficiency,
    
    overprint accuracy, and printing width.
    
    Fosber Group, under the company's Intelligent Packaging Equipment segment, focuses on
    
    corrugated cardboard production lines and equipment. It is an important high-end corrugated
    
    cardboard production line manufacturer in the European and American markets. It is one of the
    
    world's two largest companies in the field of high-speed wide-width corrugated cardboard
    
    production lines . Its simple equipment design, stable performance, low failure rate, and high degree
    
    of intelligence have the characteristics of design leadership, high degree of mechanical and
    
    electrical integration, energy saving and environmental protection, and is in a leading position in the
    
    industry in Europe and North America.
    
    3. Industry-leading industrial internet technologies and services
    
    The subsidiary Fosber Group actively implemented the Industry 4.0 model. Industry 4.0 isbased on computerization and network connection, and uses big data and algorithms as means torealize the self-learning and intelligent production of machines. The machine's self-learning andintelligent production are divided into four stages: visualization stage (intelligent identificationproblem), transparency stage (intelligent analysis problem), prediction stage (intelligent predictionproblem trend), and adaptive stage (artificial intelligence provides solutions). At present, Fosber hascompleted the functional design of the above four stages.
    
    Schematic diagram of Fosber Group's stage in the application of Industry 4.0 technology
    
    By combining traditional corrugated cardboard production equipment with advanced artificial
    
    intelligence, virtual reality, 3D simulation and other technologies, Fosber Group has developed
    
    intelligent systems such as Pro Care and Pro Syncro to realize the operation of the entire production
    
    line and individual equipment Intelligent monitoring and control. Based on the application of
    
    intelligent manufacturing in the corrugated cardboard production line, Fosber Group realizes
    
    intelligent diagnosis, automatic production planning and management equipment maintenance by
    
    automatically analyzing the collected machine operation data.
    
    Fosber Group remotely helps customers monitor the running status of equipment and machines in
    
    real time. It can detect the operating parameters obtained through the remote control service before
    
    the customer finds the problem, detect and predict possible problems in advance, contact the
    
    customer in advance, and then provide customers with more efficient and better technical support
    
    services.
    
    4. International brand competitiveness and industry influence
    
    Dongfang Precision's intelligent packaging equipment products have considerable brand awareness
    
    and industry influence through its precise product positioning and stable product quality. Its
    
    Dongfang Precision corrugated box printing equipment, Fosber, Tiruna, etc., among which
    
    Dongfang Precision corrugated box printing equipment are domestic first-line brand in the industry,
    
    which enjoys a high reputation in the relevant global market; the Fosber brand is one of the leading
    
    brands in the global corrugated board production line industry; the Tiruna brand also has
    
    considerable visibility and influence in the corrugated roller segment.
    
    The company's intelligent packaging equipment products are well-known in the industry for high
    
    performance, high stability and reliability. At the same time, the service-based manufacturing
    
    model based on intelligent manufacturing brings high-quality technical support and after-sales
    
    service to customers, allowing the company's products to obtain better brand premium.
    
    5. High-quality customer resources and solid strategic cooperation relations help the
    
    company's sustainable development
    
    Dongfang Precision's smart corrugated box packaging equipment business adheres to the market
    
    positioning for mid- to high-end customers. As the business model develops from a single product
    
    manufacturing to an integrated overall solution provider model, end customers have placed higher
    
    and stricter requirements on product quality, timeliness of delivery, and sustainability of long-term
    
    cooperation. The company continues to increase R & D and innovation efforts to improve the
    
    quality of products and services, so as to establish a long-term and stable strategic cooperative
    
    relationship with well-known domestic and foreign brands.
    
    In the "smart packaging equipment" business area, the company focused on specialization,
    
    implemented solution delivery, and realized a differentiated competitive strategy, and established a
    
    close and stable cooperative partnership with major domestic and foreign customers and large
    
    groups such as Hexing Packaging Printing, UCPS, Shanying Paper, Xintonglian Packing, Shengda
    
    Packaging, Zhengye International, International Paper, Smurfit Kappa, Mpact, Modern, and Orora.
    
    6. The management team with rich management experience and professional technical talent
    
    team lays the foundation for the stable development of the company
    
    Dongfang Precision has an experienced management team with rich industry accumulation and a
    
    deep understanding of the company's product development, design, and manufacturing. The
    
    experienced and broad management team enables the company to have forward-looking
    
    deployments in the global economic operating cycle and the overall development trend of the
    
    intelligent packaging equipment manufacturing industry.
    
    At the same time, Dongfang Precision is a company with standardized operation and stable
    
    operation. It has been strengthened through a variety of methods (including core senior management
    
    team building, organizational structure design, management and control system, financial
    
    management system, leadership, mid- and long-term incentives, corporate culture construction, etc.)
    
    The construction and upgrading of the company's organizational capabilities, continue to improve
    
    the management capabilities, resource integration capabilities of various functional departments and
    
    the ability to help subsidiaries' businesses, and improve the company's overall management and
    
    operational efficiency.
    
    Section 4 Discussion and Analysis of Business Situation
    
    I. Overview
    
    The global economy is facing the severe test brought by COVID-19 epidemic in the first half of
    
    2020, and the spread of the epidemic has adversely affected the normal development of the business
    
    activities of most enterprises in the global manufacturing industry. Since the second quarter, with
    
    the effective control of the domestic epidemic, China's manufacturing industry has resumed work
    
    and production in an orderly manner, and market supply and demand have recovered in an all-round
    
    way. The printing and packaging industry at home and abroad has also been obviously affected by
    
    the epidemic. With the domestic economic growth back on track, the domestic printing and
    
    packaging industry has gradually stepped out of the shadow of the epidemic and gradually
    
    recovered.
    
    Under the leadership of the board of directors and management team, Dongfang Precision paid
    
    close attention to the epidemic situation and resumed work steadily in the first half of 2020,
    
    basically realizing the resumption of domestic business by the end of February, and actively
    
    supporting the anti-epidemic work of foreign subsidiaries. In May, it realized the resumption of
    
    work and production of all the business entities at home and abroad under the group.
    
    In the face of the complex and changeable domestic and foreign environment under the epidemic,
    
    and the catalytic acceleration of the epidemic on the unmanned, digital and intelligent progress of
    
    the manufacturing industry, the company's management team actively thought about and actively
    
    sought change, adhered to the strategy of "intelligent manufacturing" as the strategic vision and
    
    business core strategy, while tamping internal efforts and continuously improving the company's
    
    operational efficiency. At the same time, efforts were made to promote the transformation of
    
    high-end smart equipment business to digital and intelligent direction.
    
    In the first half of 2020, the company realized the operating income of the consolidated statement of
    
    about 1.1774912 billion yuan, and realized the net profit of about 127.1985 million yuan belonging
    
    to the shareholders of the listed company.
    
    Considering that Pride is included in the company's consolidated financial statements in the first
    
    half of 2019 and is no longer included in the company's consolidated financial statements for the
    
    reporting period, and Dongfang Precision’s main business is focused on high-end smart equipment.
    
    In order to more accurately reflect the changes in the operating performance of the company's main
    
    business in the first half of 2020 compared with the same period last year, and to ensure that the
    
    revenue and profit data are comparable, we compare the revenue and profit data for the reporting
    
    period with the data excluding Pride in the same period last year, as shown in the following table:
    
    Unit: ten thousand yuan
    
    January to June January to June 2019 Change
    
    2020 (excluding Pride) ratio
    
    Operating income 117,749.12 119,429.44 -1.41%
    
    Net profit belonging to shareholders of the listed 12,719.85 11,776.10 8.01%
    
    company
    
    From January to June 2020, the company's operating income decreased by 1.41% compared with
    
    the comparable adjustment in the same period last year, mainly due to the delay in the shipment and
    
    delivery of some orders caused by COVID-19 epidemic. The company has actively taken measures
    
    to reduce the impact of the epidemic on the main business, maintain stable income while improving
    
    operational efficiency, rationally use its own funds for cash management, and increase the rate of
    
    return on net assets. The company's net profit belonging to shareholders of the listed company in the first
    
    half of 2020 increased by about 8.01% compared with the comparable net profit adjusted for the
    
    same period last year.
    
    The main work achievements in the the first half of 2020 are as follows:
    
    (Ⅰ) Multiple measures should be taken to actively respond to external changes and keep the
    
    income of the main business stable.
    
    In the first half of 2020, the company focused on the core business of "high-end smart equipment",
    
    took many measures to actively respond to changes in the external business environment, and
    
    achieved the steady development of the main business.
    
    In the corrugated board production line business, the wholly-owned subsidiary Fosber Group
    
    achieved operating income of about 100 million euros during the reporting period, basically the
    
    same as the same period last year. In the first half of the year, Fosber Group completed the
    
    acquisition and holding of 60% of the business assets related to Italian corrugated board line
    
    manufacturer Agnati. Through this acquisition, Fosber Group obtained the business covering the
    
    whole value chain of Italy QCorr high-speed intelligent corrugated board production line, related
    
    customer resources, brands, intellectual property rights, and technical support services for the stock
    
    corrugated board production line sold by Agnati, and developed the ability to provide the world's
    
    leading high-speed intelligent corrugated board production line. Fosber Group also added 5
    
    invention patents in the first half of the year, continuously improved and optimized the algorithm of
    
    PRO series intelligent production management information system, and added new modules and
    
    functions. Fosber Asia, a joint venture company, strengthened its development of target customers
    
    in the domestic market in the first half of the year, increased new orders over the same period last
    
    year, and basically realized the localization of Pro-line products for high-end customers in the Asian
    
    market.
    
    In the business of corrugated box printing production line, the revenue of Dongfang Precision
    
    (China) increased by about 15% year-on-year during the reporting period; based on a stable team
    
    and continuously optimized internal processes, order delivery efficiency increased by about 20%
    
    compared with the same period last year. During the reporting period, the operating income of
    
    Dongfang Precision (Europe) increased steadily compared with the same period last year, and the
    
    amount of new orders has met the target for the whole year.
    
    In terms of power equipment business, the subsidiary Parsun Power continued to strengthen the
    
    development of the domestic outboard engine market, with sales revenue from the domestic market
    
    increasing by about 15% in the first half of the year compared with the same period last year; and
    
    continued to promote the research and development of high-power outboard engines and the
    
    development of the outboard military market. Benefitting from the rapid economic recovery after
    
    the epidemic has been brought under control, Parsun Power's petrol generator and water pump
    
    revenue increased by 26.5% compared with the same period last year.
    
    (Ⅱ) Transform to Intelligent Manufacturing to Promote the Upgrading of "Intelligent Factories" in
    
    the Printing and Packaging Industry.
    
    Under the impact of the COVID-19, we found that some key positions in the printing and packaging
    
    industry were over-reliant on the skills of skilled workers, traditional management models, and
    
    some processes were still labor-intensive, which has become the main obstacle for enterprises to
    
    work resumption and production. The understanding of "machine replacement" and "intelligent
    
    factory" in the post-epidemic era is more deeply rooted in the printing and packaging industry, and
    
    enterprises in the industry may speed up the pace of intelligent construction.
    
    Intelligent factory is a factory with the main characteristics of intelligent design, intelligent
    
    production, intelligent management, intelligent logistics and integrated optimization on the basis of
    
    digitalization, supported by industrial big data and Internet. In traditional industrial production,
    
    production efficiency and the quality of finished products are restricted by many factors, such as
    
    manpower, skills, and proficiency. In order to promote the manufacturing accuracy, reliability,
    
    consistency and production efficiency to a new height to meet the upgrading production needs, the
    
    transformation to automation, digitization and intelligence has become the consensus of the
    
    manufacturing industry and gradually accelerate the implementation.
    
    For the printing and packaging industry, intelligent factory is a system engineering with
    
    digitalization and intelligence as the core and hardware and software construction as the important
    
    content, which represents a leap from traditional automatic production to data interconnection, AI
    
    independent learning and decision-making, and flexible production.
    
    Since the beginning of the year, Dongfang Precision has made great efforts to promote the
    
    transformation of the company's corrugated printing and packaging equipment business to become
    
    digital and intelligent. On the basis of the complete hardware layout of corrugated printing and
    
    packaging equipment, the successful practice of production information management system, and
    
    the extended layout in the field of intelligent logistics, it has accelerated the integration of internal
    
    and external resources, enhanced intelligent capacity building, and provided intelligent
    
    manufacturing solutions for customers in the printing and packaging industry, so as to be committed
    
    to becoming a "smart factory" solution and business model supplier in the printing and packaging
    
    industry. In July 2020, Dongfang Precision and Yunyin Technology (Shenzhen) Co., Ltd., a holding
    
    subsidiary of Shanying International Holding Co., Ltd., signed a "Strategic Cooperation
    
    Agreement" to create an intelligent factory model and jointly promote the digital transformation and
    
    upgrading of the printing and packaging industry.
    
    1. Complete layout of corrugated printing and packaging equipment industry chain.
    
    After listing, Dongfang Precision has carried out vertical expansion along the subdivision industry
    
    chain of corrugated printing and packaging, and its main business has been expanded from
    
    complete sets of corrugated box printing equipment at the beginning of listing to including
    
    corrugated rollers, corrugated board production line, corrugated box automatic printing line and
    
    stand-alone products, prepress and postpress fully automatic equipment covering corrugated
    
    production, printing, die-cutting, sticky box, packaging and other complete production and
    
    processing chain necessary production equipment.
    
    The integrity of the layout of Dongfang Precision industry chain is mainly reflected in two aspects:
    
    (1) The layout of the whole industry chain covers all aspects of corrugated printing and packaging
    
    production lines and equipment, and basically completes the omni-directional layout of equipment
    
    products on the corrugated printing and packaging equipment industry chain. It owns Tiruna
    
    corrugated roller - Fosber corrugated board production line - Agnati/Italy QCorr high-end
    
    corrugated board production line - Dongfang Precision corrugated box automatic printing line and
    
    stand-alone products - Dongfang Precision Europe’s corrugated box printing equipment and
    
    automatic prepress and postpress equipment - Jiateng robot AGV and other products.
    
    (2) Dongfang Precision has the most complete and abundant product library of product
    
    specifications and market positioning in the industry. For example, in the field of corrugated box
    
    printing equipment segmentation, Dongfang Precision can provide up and down printing,altogether
    
    a total of 26 different specifications, different market positioning products, far more than
    
    competitors, and can fully meet the needs of different types of customers.
    
    2. Successful practice of production information management system
    
    The foundation and core of intelligent factory is an intelligent production system composed of ERP,
    
    MES, WMS, SCADA, APS and other information systems, in which the production process
    
    execution system (MES) is a set of production information management system for production
    
    execution. It can provide functions and modules including production process control,
    
    manufacturing data management, planning and scheduling management, production scheduling
    
    management, inventory management, quality management, cost management, project Kanban
    
    management and so on, so as to optimize the production activities from order to product completion
    
    in the whole workshop manufacturing process.
    
    Dongfang Precision's corrugated board production line and corrugated box printing machine
    
    business have relatively mature practice in the production information management system:
    
    (1) The subsidiary Fosber Group integrates intelligent sensing, AI, VR, 3D modeling technology,
    
    and years of accumulated corrugated board production line development, operation, technical
    
    support and other data combined with the development, operation, technical support and other
    
    aspects of the PRO series intelligent production management information system, can dock with
    
    customer ERP to achieve ERP scheduling; docking customer warehouse management system to
    
    achieve intelligent inventory management and warehousing logistics control. Through more than
    
    200 sensors installed on the corrugated board production line, it can realize real-time monitoring of
    
    the production data of the corrugated board production line, real-time monitoring and Kanban
    
    management of the production process, and can carry out production line performance analysis and
    
    cost analysis based on data to provide support for customer production decisions. According to the
    
    real-time collected production data and the setting of the program algorithm, it can identify the
    
    abnormal production data in real time, make the automatic diagnosis, and automatically retrieve and
    
    output the solution in the database. The safe storage and transmission of data are realized through
    
    dedicated cloud servers and firewalls, and the real-time monitoring and remote control of the
    
    equipment are realized through the remote control system. It can not only effectively reduce the
    
    over-dependence on some processes or some personnel in the production process, but also improve
    
    production efficiency and ensure the quality of finished products.
    
    Working schematic diagram of PRO series intelligentproduction management information system of Fosber Group(2) Dongfang Precision (China) Press Business independently developed corrugated box printingmachine production information management system, which can achieve ERP scheduling,intelligent material preparation management, automatic deposit order adjustment setting the bestparameters, production data collection, real-time production Kanban management, productionperformance management, cost analysis, quality traceability, equipment fault management, remoteorder management and other functions.
    
    By optimizing the whole production process from the order to the completion of the product, the
    
    low value-added activities within the enterprise are reduced, and the intelligent, automatic and
    
    standardized production management of the corrugated box printing production line is realized. We
    
    can organically combine the production process, massive data of production equipment and
    
    algorithm analysis and processing, simplify the operation difficulty of the printing press and reduce
    
    the dependence on labor, improve effective production time, reduce material consumption, achieve
    
    lean production so as to meet customer cost reduction, efficient and flexible production needs.
    
    Functional schematic diagram of production information management system for
    
    Dongfang Precision corrugated box printing press
    
    3. Extended layout in the field of intelligent logistics.
    
    Intelligent logistics is also a key part of intelligent manufacturing. In intelligent factory mode,
    
    materials are automatically sent in and out of warehouse, sorted and distributed by connecting MES
    
    and AGV, with WMS and WCS, real-time data sharing with MES is realized, intelligent inventory
    
    management is realized so as to provide effective support for purchasing planning and production
    
    execution.
    
    Dongfang Precision acquired 20% equity in Jiateng Robot in 2014, laying out the field of intelligent
    
    logistics. Jiateng Robot focuses on the R & D and sales of AGV and intelligent material distribution
    
    solutions and has launched 6 generations of AGV, thus becoming the leading provider of AGV and
    
    intelligent material distribution solutions in China. The core competitiveness of Jiateng Robot lies
    
    in the use of embedded computer main control hardware system and powerful logistics software
    
    system, including AGV central scheduling system, WMS and WCS.
    
    After years of resource integration and R & D, the company has accumulated rich experience in the
    
    field of integrated solutions of "packaging-intelligent logistics". With the maturity and landing of
    
    the intelligent factory, the demand for the follow-up logistics automation equipment of the
    
    production line increases, the company will gradually be more advantageous in advance layout in
    
    the field of intelligent logistics.
    
    (Ⅲ) Launch an stock incentive plan to lay the foundation for sustainable development in the future.
    
    In order to improve the company's long-term incentive mechanism, fully mobilize the enthusiasm of
    
    managers at all levels and core backbone of the company, effectively promote the long-term
    
    development of the company, and achieve the goal of "stabilizing the team, boosting morale,
    
    gathering talents and improving performance", the company launched the 2020 restricted stock
    
    incentive plan in the first quarter of 2020, with 27 million A shares repurchased from the secondary
    
    market as incentive shares, of which, 22.6 million shares were awarded for the first time,
    
    accounting for 1.46% of the total share capital. The grant price of restricted stock is 1 yuan per
    
    share. The total number of incentive recipients for the first grant is 40, including directors, senior
    
    managers and core technical (business) personnel who served in the company and Dongfang
    
    Precision wholly-owned and holding subsidiaries. The payment, capital verification and grant
    
    registration of some restricted shares for the first time was completed in June 2020. The
    
    implementation of the above stock incentive plan will help to eliminate the negative impact of the
    
    previous Pride event on the company's team and lay the foundation for the healthy and sustainable
    
    development of the company in the future and also helps the deep binding of the self-interests of the
    
    core backbone personnel of the company with the future performance growth of the company and
    
    the improvement of the return ability of shareholders, which is conducive to the improvement of the
    
    company's business performance and value creation ability.
    
    (Ⅳ) Launch a share buyback plan for 2020 to stabilize the long-term value expectation of the
    
    company's shares.
    
    On June 14, 2020, the company's board of directors received a share buyback proposal and an
    
    interim general meeting proposal submitted in writing to the company's board of directors by
    
    shareholders Ruan Huili and Ruan Weixing, who held more than 3% of the shares. After the
    
    resolution of the company's third interim shareholders' meeting in 2020, The motion on the proposal
    
    of shareholders Ruan Huili and Ruan Weixing to buy back shares and buy back part of the
    
    company's shares by centralized bidding was adopted.
    
    Based on the confidence in the company's future development prospects and the high recognition of
    
    the company's value, on the basis of comprehensive consideration of the company's operating
    
    situation, main business development prospects, the company's financial situation and future
    
    profitability, and in order to safeguard the interests of the broad masses of investors and enhance
    
    investor confidence, the company intends to use its own funds, raised funds that have been legally
    
    changed to permanently replenish current funds and loans from financial institutions etc. to
    
    implement centralized bidding transactions to repurchase part of the company's A shares of RMB
    
    common shares (hereinafter referred to as " the repurchase of shares in 2020").
    
    The total amount of funds to be used for the repurchase of shares in 2020 shall not be less than 500
    
    million yuan (inclusive), no more than 1 billion yuan (inclusive), and the repurchase price shall not
    
    exceed 6.42 yuan per share. All the repurchased shares in 2020 will be used for write-off, reducing
    
    the company's registered capital. The implementation period shall be within 12 months from the
    
    date of examination and approval by the shareholders' meeting.
    
    As of the date of disclosure of this report, the company has implemented the repurchase of shares in
    
    2020 through centralized bidding transactions, with a total of 37,531,131 shares of the company,
    
    accounting for 2.43% of the company's total share capital, with a maximum transaction price of
    
    5.10 yuan per share and a minimum transaction price of 4.72 yuan per share. The total amount paid
    
    is about 185 million yuan (excluding transaction fees). The implementation of the repurchase of
    
    shares in 2020 is in line with the established plan, and the company will continue to promote the
    
    repurchase of shares in 2020.
    
    II. Main business analysis
    
    Overview
    
    See "1. Overview" in "Discussion and Analysis of Business Situation".
    
    Year-on-year changes in major financial data
    
    Unit: yuan
    
                  Thisreportingperiod  Sameperiodlast     Year-on-year             Causeofchange
                                      year      increaseordecrease
                                                             Theconsolidatedstatementofthesameperiod
                                                             of last year mainly includes the data of Pride
    Operating income    1,177,491,225.13   4,391,349,294.89        -73.19%fromJanuarytoJuneof2019.Ifthe impactof
                                                             Pride's data is excluded, the year-on-year
                                                             declineis1.41%.
                                                             Theconsolidatedstatementofthesameperiod
                                                             of last year mainly includes the data of Pride
    Operating cost        841,826,823.84   3,696,850,553.46        -77.23%fromJanuarytoJuneof2019.Ifthe impactof
                                                             Pride's data is excluded, the year-on-year
                                                             declineis1.01%.
                                                             Theconsolidatedstatementofthesameperiod
                                                             of last year mainly includes the data of Pride
    Selling expenses       91,295,589.80    194,155,656.79        -52.98%from January to June of 2019. The scope of
                                                             consolidated statements for this reporting
                                                             perioddoesnotincludePride.
                                                             Theconsolidatedstatementofthesameperiod
    Administrative                                               of last year mainly includes the data of Pride
    expenses            122,309,575.89    151,165,409.76        -19.09%fromJanuarytoJuneof2019.Thescopeofthe
                                                             consolidated statements for this reporting
                                                             perioddoesnotincludePride.
                                                             Theconsolidatedstatementofthesameperiod
                                                             of last year mainly includes the data of Pride
                                                             fromJanuarytoJuneof2019.Ifthe impactof
    Financial expenses      -1,734,518.18     12,913,761.69       -113.43%Pride's data is excluded, the expense of the
                                                             same period of last yearis 3.19 million yuan.
                                                             Theincomeofthisperiodis mainlycausedby
                                                             theincreaseofdepositinterestincome.
                                                             The main reason is that the consolidated
    Income tax            5,642,310.00     65,188,292.02        -91.34%statementofthesameperiodlastyearincludes
    expenses                                                   thedataofPridefromJanuarytoJune2019.If
                                                             the impact of Pride data is excluded, the
                                                             year-on-year decrease will be 22.91 million
                                                             yuan, which  is  mainly caused  by  the
                                                             year-on-yeardecreaseofincometaxofFosber
                                                             groupinthecurrentperiod.
                                                             Theconsolidatedstatementofthesameperiod
                                                             of last year mainly includes the data of Pride
    R&D investments      41,336,617.90     64,108,287.55        -35.52%fromJanuarytoJuneof2019.Ifthe impactof
                                                             Pride data is excluded, the year-on-year
                                                             increasewillbe10.92millionyuan.
                                                             The main reason is that the scope of the
                                                             consolidatedstatementforthesameperiodlast
                                                             yearincludesPride'sdatafromJanuarytoJune
                                                             2019. If the influence of Pride's data is
                                                             excluded,  the  net  operating  cash  flow
    Net cashflow                                                decreases by 31.17 million yuan compared
    from operating        29,409,409.32   1,419,240,751.97        -97.93%with the same period last year,mainly due to
    activities                                                   the prepaid enterprise income tax paid by the
                                                             parent company. After the completion of the
                                                             enterpriseincometaxsettlementandpayment,
                                                             the tax authorities have returned about 88.46
                                                             million yuan of prepaid tax to the parent
                                                             companyinJuly2020.
                                                             This is mainly due to the difference between
    Net cashflow                                                theamountinvestedandtheamountrecovered
    from investment      -384,795,059.32    -848,080,051.65        -54.63%from the purchase of wealth management
    activities                                                   products in this period, which is lower than
                                                             thatinthesameperiodlastyear.
    Net cashflow                                                The scope of the consolidated statements for
    from fund-rasing      -357,317,673.55  -1,566,139,069.07        -77.18%the same period last year mainly includes
    activities                                                   Pride's data for the period from January to
                                                             June2019.
    Net increasein                                               It is mainly caused by the cash flow of
    cash andcash        -707,708,887.51    -985,768,719.59        -28.21%investment  activities  and  fund-raising
    equivalents                                                 activities.
    
    
    Significant changes in the composition or source of profits during the reporting period.
    
    □ applicable √ Not applicable
    
    There is no significant change in the composition or source of profits during the reporting period.
    
    Operating income composition
    
    Unit: yuan
    
                                This reportingperiod                    Sameperiodlastyear
                                                                            ProportionYear-on-year
                  Amount           Proportionofoperatingincome           Amount      of    increaseor
                                                                            operating   decrease
                                                                             income
    Total operating 1,177,491,225.13                                 100%4,391,349,294.89    100%   -73.19%
    income
    By industry
    Automobile                                               0.00%3,197,054,934.89  72.80%   -100.00%
    parts
    High-end
    smart       1,177,491,225.13                               100.00%1,194,294,360.00  27.20%    -1.41%
    equipment
    By product
    Intelligent
    packaging
    equipment     626,162,720.18                                53.17%  717,972,353.27  16.35%   -12.79%
    whole lineand
    single machine
    Intelligent
    packaging     302,586,619.85                                25.70%  249,049,329.02   5.67%    21.50%
    equipment
    accessories
    Intelligent
    packaging
    equipment     100,749,743.45                                 8.56%  81,712,552.92   1.86%    23.30%
    software and
    services
    Power        147,992,141.65                                12.57%  145,560,124.79   3.31%     1.67%
    equipment
    Power battery                                              0.00%3,197,054,934.89  72.81%   -100.00%
    system
    By region
    Domestic      101,481,252.35                                 8.62%3,336,894,840.72  75.99%   -96.96%
    Overseas     1,076,009,972.78                                91.38%1,054,454,454.17  24.01%     2.04%
    
    
    Industry, product or region that accounts for more than 10% of the company's operating income or operating profit
    
    √ Applicable □ Not applicable
    
    Unit: yuan
    
                                                       Operatingincome  Operatingcost   Grossmargin
                                                         increasedor     increasedor     increasedor
                 Operatingincome  Operatingcost   Grossmargin     decreased      decreased      decreased
                                                        comparedwith   comparedwith   comparedwith
                                                       the sameperiod  thesameperiod  thesameperiod
                                                         oflastyear     oflastyear     oflastyear
    By industry
    Automobile parts                                             -100.00%      -100.00%
    High-end smart   1,177,491,225.13  841,826,823.84       28.51%        -1.41%        -1.01%        -0.28%
    equipment
    By product
    Power battery                                               -100.00%      -100.00%
    system
    Intelligent
    packaging       1,029,499,083.48  728,630,903.95       29.22%        -3.27%        -1.93%        0.07%
    equipment
    Power equipment   147,992,141.65  113,195,919.89       23.51%        2.35%        5.33%        -2.66%
    By region
    Domestic        101,481,252.35   71,981,996.31       29.07%       -96.96%       -97.60%        19.10%
    Overseas       1,076,009,972.78  769,844,827.53       28.45%        2.04%        9.64%        -4.96%
    
    
    When the statistical caliber of the company's main business data is adjusted in the reporting period, the company's last issue of the
    
    main business data is adjusted according to the caliber at the end of the reporting period.
    
    □ Applicable √ Not applicable
    
    Explanation of the reason why the relevant data have changed by more than 30% year-on-year.
    
    √ Applicable □ Not applicable
    
    The company transferred 100% of Pride's equity in December 2019, and the year-on-year change of more than 30% of the relevant
    
    data in the first half of 2020 was mainly due to the change in the scope of the consolidated statement and the non-merger of Pride.
    
    III. Analysis of non-main Business
    
    √ Applicable □ Not applicable
    
    Unit: yuan
    
                        Amount        Thepercentagein  Explanationofthereasonfor     Isitsustainable?
                                       total profits          itsformation
                                                  It mainlyreferstotheincome
                                                  of bankwealthmanagement
    Income from             32,724,984.33          24.77%productsandtheincome    NO
    investment                                       recognizedtotheassociated
                                                  enterprise undertheequity
                                                  law.
    Fair valuechanges                                  Itismainlyrelatedtothe
    in profitandloss          13,309,111.52         10.07%incomeofbankwealth     NO
                                                  management products.
                                                  It ismainlyduetothe
    Asset impairment          -2,978,396.97          -2.25%Inventoryprovisionfor     NO
                                                  depreciation
    Non-operating              176,776.93          0.13%Nomajorchanges.        NO
    income
                                                  It ismainlycausedby
    Non-operating             1,464,849.29           1.11%outwarddonation,        NO
    expenses                                        sponsorshipexpenditureand
                                                  so on.
    
    
    IV. Analysis of assets and liabilities
    
    1. Significant changes in the composition of assets
    
    Unit: yuan
    
                  Attheendofthisreporting   Attheendofthesameperiod   The
                        period                 lastyear        proportion
                               Asa                  Asa      of      Descriptionofmajorchanges
                   Amount    percentage    Amount    percentage  increase
                              oftotal                 oftotal     and
                               assets                 assets    decrease
    Monetaryfunds  1,940,001,676.49    29.92%2,356,703,434.60    37.57%   -7.65%Itismainlycausedbythepurchaseof
                                                                  financialproductsinthisperiod.
    Accounts       516,566,982.61     7.97%  597,431,210.02     9.52%   -1.55%Nosignificantchange
    receivable
    Inventory       838,468,641.98    12.93%  671,432,701.11    10.70%   2.23%Nosignificantchange
    Investmentreal                                        0.00%
    estate
    Long-termequity   80,128,138.10     1.24%  72,372,355.03     1.15%   0.09%Nosignificantchange
    investment
    Fixedassets     569,720,809.77     8.79%  585,754,900.75     9.34%   -0.55%Nosignificantchange
    Project under     12,735,416.77     0.20%   4,839,241.48     0.08%   0.12%Nosignificantchange
    construction
    Short-termloan    82,888,933.77     1.28%  117,888,353.14     1.88%   -0.60%Nosignificantchange
                                                                  Itismainlyduetothereclassification
    Long-termloan    49,092,928.25     0.76%  224,146,667.48     3.57%   -2.81%ofloansduewithinoneyearto
                                                                  "non-currentliabilitiesduewithinone
                                                                  year".
    Transactional                                                     Itismainlyduetotheincreaseinthe
    financial assets  1,493,920,592.25    23.04%1,164,039,381.59    18.55%   4.49%purchaseoffinancialproductsinthis
                                                                  period.
    
    
    2. Assets and liabilities measured at fair value
    
    √ Applicable □ Not applicable
    
    Unit: yuan
    
                           Profitorloss  Changes Impairmen
                          on changesin  inthe   taccrued                         Other
        Item      Beginning   fairvaluefor cumulativ duringthe    Current     Currentsale  change  Finalnumber
                  number    thecurrent   efair    current  purchaseamount    amount      s
                             period    valueof   period
                                     equity
    Financial
    assets
    1.Transactiona
    l financial
    assets       1,163,000,000.0 13,309,111.5                5,100,446,609.6 4,783,300,000.0       1,493,455,721.1
    (excluding              0         2                           0           0                 2
    derivative
    financial
    assets)
    2.Derivative
    financial
    assets (funds,    1,039,381.59                                         574,510.46          464,871.13
    trust products
    and others).
    Subtotal of    1,164,039,381.5 13,309,111.5                5,100,446,609.6 4,783,874,510.4       1,493,920,592.2
    financial               9         2                           0           6                 5
    assets
    The above    1,164,039,381.5 13,309,111.5                5,100,446,609.6 4,783,874,510.4       1,493,920,592.2
    total                  9         2                           0           6                 5
    Financial             0.00                              304,022.63                      304,022.63
    liabilities
    
    
    Note:
    
    The statistical caliber of "current purchase amount" and "current sales amount" of the transactional financial assets in the above table
    
    are as follows: the cumulative amount of financial products purchased by the company during the reporting period and the
    
    cumulative amount of financial products sold (or redeemed) during the reporting period. There is a situation in which a sum of
    
    money is repeatedly used to buy, sell (or redeem) financial products during the reporting period. The maximum one-day balance of
    
    the funds used by the company to purchase wealth management products during the reporting period can be found in the entrusted
    
    financing section of XV. Major contracts and their performance in Section 5 Important Matters of this report.
    
    Other changes
    
    During the reporting period, has the company's main asset measurement attributes changed significantly
    
    □ YES √ NO
    
    3.At the end of the reporting period, asset rights are restricted
    
               Item              Bookvalueattheendoftheperiod               Restrictedcause
    Monetaryfunds                                   420,985,826.61              Margin
    Fixedassets                                     213,149,396.93           Loanmortgage
    Intangibleassets                                   50,379,689.01           Loanmortgage
    Intotal                                        684,514,912.55             --------
    
    
    V. Investment status analysis
    
    1.Overall situation
    
    √ Applicable □ Not applicable
    
      Investmentduringthereportingperiod   Investmentamountinthesameperiodof            Variation
                (yuan)                      lastyear(yuan)
                     2,931,883,245.00                  1,031,176,742.00                       184.32%
    
    
    2.Significant equity investment during the reporting period
    
    □ Applicable √ Not applicable
    
    3.The major non-equity investments in progress during the reporting period
    
    □ Applicable √ Not applicable
    
    4.Financial assets measured at fair value
    
    √ Applicable □ Not applicable
    
    Unit: yuan
    
                        Profitand  Accumulate
     Asset     Initial      lossfrom  dchangesin    Amount     Amountsold   Cumulative             Source
                       changes in   fairvalue  purchasedduring   duringthe    investment   Amountatthe   sof
      type  investmentcost  fairvaluein  includedin   thereporting  reportingperiod   income   endoftheperiod funds
                       the current    equity      period
                         period
    Fund                 245,830.68      0.00  100,000,000.00                       100,245,830.68Own
                                                                                       funds
    Trust                                                                               Own
    product              3,527,397.26      0.00  500,000,000.00             1,609,589.04  503,527,397.26funds
    s
                                                                                       Raised
           1,164,039,381.5                    4,500,446,609.6 4,783,874,510.4 30,991,624.2            funds
    Other             9 9,535,883.58      0.00           0           6         2  890,147,364.31and
                                                                                       own
                                                                                       funds
    In total  1,164,039,381.5 13,309,111.5      0.00 5,100,446,609.6 4,783,874,510.4 32,601,213.2 1,493,920,592.2  --
                     9         2                    0           6         6           5
    
    
    Note:
    
    The statistical caliber of "current purchase amount" and "current sales amount" of the transactional financial assets in the above table
    
    are as follows: the cumulative amount of financial products purchased by the company during the reporting period and the
    
    cumulative amount of financial products sold (or redeemed) during the reporting period. There is a situation in which a sum of
    
    money is repeatedly used to buy, sell (or redeem) financial products during the reporting period. The maximum one-day balance of
    
    the funds used by the company to purchase wealth management products during the reporting period can be found in the entrusted
    
    financing section of XV. Major contracts and their performance in Section 5 Important Matters of this report.
    
    5. Investment in financial assets
    
    (1) Securities investment
    
    √ Applicable □ Not applicable
    
                                          Profit or Chang
                                           losson  esin
    Variet      Securiti         Account Bookvalue changes  the                  Reportin        Acco Sour
     yof Securi   es    Initial    ing    atthe    infair  cumul  Current   Current  gperiod  Ending  untin ceof
    securi  ties  abbrevi investment measure beginning valuefor ative  purchase    sale    profit   book    g  fund
     ties  code  ation    cost    ment    ofthe     the    fair   amount   amount  andloss  value  subje  s
                             mode   period   current  value                                ct
                                           period   of
                                                 equity
                                                                                    Trans
                            Fair                                                     action Own
    Fund            100,000,00value           245,830.  0.00 100,000,00               100,245,8al   fund
                        0.00 measure              68           0.00                  30.68financ s
                            ment                                                    ial
                                                                                    assets
                                                                                    Trans
    Trust                    Fair                                                      action Own
    produ            500,000,00value           3,527,39  0.00 500,000,00         1,609,58 503,527,3al   fund
    cts                  0.00 measure            7.26           0.00            9.04   97.26financ s
                            ment                                                    ial
                                                                                    assets
                                                                                        Rais
                                                                                    Trans ed
                            Fair                                                     action fund
    Other            4,500,446,value   1,164,039, 9,535,88  0.00 4,500,446, 4,783,874,30,991,6 890,147,3al   s
                       609.60measure    381.59    3.58         609.60    510.46   24.22   64.31financ and
                            ment                                                    ial   own
                                                                                    assets fund
                                                                                        s
    Total             5,100,446,   --    1,164,039, 13,309,1  0.00 5,100,446, 4,783,874,32,601,2 1,493,920  --   --
                       609.60         381.59   11.52         609.60    510.46   13.26  ,592.25
    Announcementand
    disclosure dateof
    securities investment March28,2020
    examinationand
    approval board
    Date          of
    announcement   and
    disclosure       of
    shareholders' meetingApril14,2020
    for examination and
    approval of securities
    investment(ifany)
    
    
    Note:
    
    The statistical caliber of "current purchase amount" and "current sales amount" of the transactional financial assets in the above table
    
    are as follows: the cumulative amount of financial products purchased by the company during the reporting period and the
    
    cumulative amount of financial products sold (or redeemed) during the reporting period. There is a situation in which a sum of
    
    money is repeatedly used to buy, sell (or redeem) financial products during the reporting period. The maximum one-day balance of
    
    the funds used by the company to purchase wealth management products during the reporting period can be found in the entrusted
    
    financing section of XV. Major contracts and their performance in Section5 Important Matters of this report.
    
    (2) Derivatives investment
    
    □ Applicable √ Not applicable
    
    There was no derivative investment during the reporting period.
    
    6.Use of raised funds
    
    √ Applicable □ Not applicable
    
    (1) Overall use of raised funds
    
    √ Applicable □ Not applicable
    
    Unit: ten thousand yuan
    
    Total fundsraised                                                                     290,000
    The totalamountofraisedfundsusedduringthe                                                      0
    reporting period
    The accumulateduseofraisedfunds                                                       187,902.15
    Total fundsraisedduringthereportingperiodfor                                                      0
    changes inuse
    Accumulated totalamountoffundsraisedforchanging                                                 0
    purposes
    Proportion oftotalfundsraisedforcumulativechanges                                              0.00%
    in use
                                 Descriptionoftheoveralluseofraisedfunds
    As of June 30, 2020, the cumulative amount of funds raised by the company was 1.8790215 billion yuan. The details are as
    follows: (1) the cumulative amount of funds raised in the previous year was 1.9409055 billion yuan; (2) the amount of funds
    returned by Beijing Pride New Energy Battery TechnologyCo., Ltd. (hereinafter referred to as "Pride") in 2019 was 61.8841
    million yuan.
    On March 27,2020, the companyheldits firstinterimshareholders'meetingin2020, whichapprovedthe billonterminating the
    fund-raising investmentprojectandpermanentlyreplenishingthecurrentfundswiththesavingsraised.Inviewofthefactthatthe
    company hastransferred100%ofPride'ssharesinDecember2019,PrideisnolongerasubsidiaryofDongfangPrecision,andthe
    previous parent-subsidiaryrelationshipbetweenDongfangPrecisionandPridehasbeenofficiallyterminatedinlaw.Thecompany's
    original plannedinvestmentproject"PrideLiyangBase NewEnergyvehicle BatteryR & Dandindustrialization Project",which
    was originally planned to raise matching funds through a non-public offering in 2017, no longer has any relationship with
    Dongfang Precisionduetothe overalltransferof100%equityinPride.Thecontinuedimplementationofthe fund-raising project
    does nothaveanycommercialrationalityandfeasibility.The2017non-publicofferingfund-raisinginvestmentprojectwasinfact
    terminated automaticallyat theend of2019whenthe company'ssale ofPride'sshareswas completed.Inorder to effectivelyuse
    funds tooptimizetheallocationofresources,expandandstrengthenthemainbusinessandenhancethevaluecreationabilityofthe
    listed company,andthencreatemorevalueforshareholders,withtheapprovaloftheshareholders'meeting,thecompanydecided
    to useallthesavingsraisedtopermanentlyreplenishliquidity.
    As of June 30, 2020, the company has transferred a total of 1.013701 billion yuan from the fund-raising special account for
    permanent replenishment of current funds, and the remaining 100 million yuan of outstanding funds have been used for the
    purchase of large certificate of deposit products and the financial interest of 916,600 yuan in batches to the account. It is still
    deposited inthespecialaccountofraisingfunds,butitnolongerbelongstothenatureofraisedfunds.
    As ofJune 30, 2020, the cumulativenet amountofbank depositinterestminusbank feesreceivedbythe companywas 87.5988
    million yuan,andthenetinterestonraisedfundsreturnedbyPride was6.0403millionyuan.Sinceduringthereportingperiod,the
    company has passed a resolution to terminate the fund-raising investment project and use all the savings raised for permanent
    replenishment ofcurrentfunds.AsofJune30,2020,thebalanceofraisedfundsisRMB0.
    
    
    (2) Raised funds commitment project
    
    √ Applicable □ Not applicable
    
    Unit: ten thousand yuan
    
       Commitmentto    Whether  Raised  Adjusted Amount Cumulative Investm Thedate Benefits Whether Whether
      investmentprojects  theitem  funds    total   invested investment   ent    when  achieved   the     the
     andinvestmentfunds  hasbeen promised investme  during  amountas progress   the    during  expected  project
         direction      changed   total    nt(1)    the    oftheend asofthe project   the   benefits feasibility
                     (includin investme        reporting   ofthe    endof  reaches reporting   are     has
                     g some    nt           period  period(2)   the    the    period  achieved changed
                     changes)                               period intended               significan
                                                         (3) =(2)  usable                  tly
                                                           /(1)   status
    Commitment toinvestmentprojects
                                                                             Not
    Pay cashconsideration NO      180,500  180,500          180,500 100.00%              applicabl NO
                                                                             e
                                                                             Not
    Pay intermediaryfees  NO        9,500   9,500          7,402.15 77.92%              applicabl NO
                                                                             e
    Pride Liyangbasenew
    energy vehiclebattery                                                          Not
    R&D and          NO      100,000  100,000               0  0.00%              applicabl NO
    industrialization                                                              e
    project
    Subtotal ofcommitted    --    290,000  290,000        187,902.15   --     --             --      --
    investment projects
    Over-raised funds
    NONE
    In total              --    290,000  290,000      0 187,902.15   --     --         0   --      --
    The situationand     In December 2019, the company essentially terminated the fund-raising investment project through the
    reasons fornot      BeijingPrideequitypackagesolutionrelatedtothesaleoftheinvestmentproject.InMarch2020,the43th
    reaching theplanned  (interim)meetingofthethirdsessionofthecompany'sboardofdirectorsandthefirstinterimshareholders'
    progress orexpected  meetingin 2020examinedand passedthe motiononterminatingthe fund-raisinginvestmentprojectand
    benefits (byspecific   permanentlyreplenishingthecurrentfundswiththesavingsraised.Itisagreedthattheinvestmentproject
    projects)           ofthefundsraisedbythecompanyshallbeterminatedandallthefundsraisedbythesavingsshallbeused
                    to permanentlyreplenishtheworkingcapital.
    Description ofmajor
    changes inproject    Notapplicable
    feasibility
    The amount,purpose  Notapplicable
    and useprogressof
    over-raised funds
    Changes inthe
    implementation      Notapplicable
    location ofinvestment
    projects withraised
    funds
    The adjustmentofthe
    implementation
    method ofthe       Notapplicable
    fund-raising
    investment project
                    Applicable
                    On September25,2017,the companyheldthe 17thmeetingofthe thirdsessionofthe boardofdirectors,
                    which examinedandpassedthe "Motiononthe useofraised fundsto replaceself-raisedfunds thathave
    Prophase investment  been pre-invested in fund-raising projects". It is agreed that the company will use the raised funds of
    and replacementof   61.8841millionyuantoreplacetheself-raisedfundsthathavebeeninvestedintheprojectinadvance,and
    investment projects   thereplacementwascompletedonSeptember28,2017.
    with raisedfunds     Accordingtotheagreementsignedbetweenthe companyand Pride'sformershareholderaswellasPride,
                    in November 2019, when the company transfers 100% of its shares in 2019, Pride should return to the
                    company a total of 67,924,400.00 yuan in principal and interest allocated in 2017. On December 25th,
                    2019, thecompanyreceived67,924,400.00yuanpaidbyPridebybanktransfer.
    Use idleraisedfundsto Notapplicable
    temporarily
    supplement working
    capital
                    Applicable
                    On March27,2020,the companyhelditsfirstinterimshareholders'meetingin2020,whichapprovedthe
                    bill onterminatingthefund-raisinginvestmentprojectandpermanentlyreplenishingthecurrentfundswith
                    the savingsraised.Inviewofthefactthatthecompanyhastransferred100%ofPride'ssharesinDecember
                    2019, Pride is no longer a subsidiary of Dongfang Precision, and the previous parent-subsidiary
                    relationship betweenDongfangPrecision and Pridehas beenofficiallyterminatedinlaw.The company's
    The amountandreason original planned investment project "Pride Liyang Base New Energy vehicle Battery R & D and
    of thebalanceoffunds industrialization Project", which was originally planned to raise matching funds through a non-public
    raised duringproject  offeringin 2017, no longer has any relationshipwith  DongfangPrecisiondue to the overalltransfer of
    implementation      100% equity in Pride. The continued implementation of the fund-raising project does not have any
                    commercial rationalityandfeasibility.The2017non-publicofferingfund-raisinginvestmentprojectwasin
                    fact terminatedautomaticallyattheendof2019whenthecompany'ssaleofPride'sshareswascompleted.
                    In order to effectivelyuse funds to optimizethe allocationofresources, expandand strengthenthe main
                    business of the listed company,enhancethe value creationability of the listed company,and then create
                    more value for shareholders,withthe approvalofthe shareholders'meeting, the companydecided touse
                    all thesavingsraisedtopermanentlyreplenishliquidity.
    The purposeand
    destination ofthe     Asoftheendofthisreport,therearenounusedfundsraisedbythecompany.
    unused raisedfunds
    Problems orother
    situations intheuse   Notapplicable.
    and disclosureofraised
    funds
    
    
    (3) Raised funds to change projects
    
    □ Applicable √Not applicable
    
    During the reporting period of the company, there was no change in the project of raised funds.
    
    (4) The Status of fund-raising projects
    
        Summaryoffund-raisingprojects             Disclosuredate                  Disclosureindex
    For details,seethespecialreportonthe
    deposit anduseoffundsraisedinthefirst  August28,2020                  Cninfo(http://www.cninfo.com.cn)
    half of2020.
    
    
    7. The status of major projects invested by non-raised funds.
    
    □ Applicable √ Not applicable
    
    The company's reporting period is nothing more than major projects to raise funds for investment.
    
    VI. Major asset and equity sale
    
    1.Sales of major assets
    
    □ Applicable √ Not applicable
    
    The company did not sell any significant assets during the reporting period.
    
    2.Sale of major equity
    
    □ Applicable √ Not applicable
    
    VII. Analysis of major holding companies
    
    √ Applicable □ Not applicable
    
    Major subsidiaries and shareholding companies that affect more than 10% of the company's net profit
    
    Unit: yuan
    
     Company  Company  Companytype Registered  Totalassets    Netassets    Operating    Operating   Netprofit
      name     type               capital                           income      profit
                     R&D,
                     processing,
                     manufacturing,
                     sales:
                     corrugated   1.56
    Fosber   Subsidiary  cardboard    million   1,465,492,264.73559,059,583.50813,333,560.0364,297,515.5161,551,927.35
    S.p.A.             productionlineEuros
                     and
                     accessories,
                     andprovide
                     after-sales
                     service.
    
    
    Acquisition and disposal of subsidiaries during the reporting period
    
    □ Applicable √ Not applicable
    
    VIII. The situation of the structured main body controlled by the company
    
    □ Applicable √ Not applicable
    
    IX. Forecast of business performance from January to September 2020
    
    A warning and explanation of the reasons for predicting that the cumulative net profit from the beginning of the year to the end of the
    
    next reporting period may be a loss or a substantial change compared with the same period last year.
    
    □ Applicable √ Not applicable
    
    X. Risks faced by the company and countermeasures
    
    1. Risk of macroeconomic changes and cyclical fluctuations in downstream industries
    
    In 2020, the uncertainties in the world trade situation and the global macroeconomic slowdown are
    
    continuing. The spread of the new coronavirus epidemic around the world in early 2020 has caused
    
    a certain impact on the global real economy. Europe and the United States and other countries and
    
    regions Under the impact of the epidemic situation, the normal operation in all aspects of society,
    
    economy and life has not yet been fully restored. Although the domestic economic development
    
    shows a trend of restorative growth, the complex and changeable economic environment at home
    
    and abroad not only affects the recovery process of the consumer market, but also affects the
    
    printing and packaging industry, which provides supporting supply chain services for the
    
    production of consumer goods, and then affects the development of the upstream equipment
    
    industry of the printing and packaging industry.
    
    The transmission of the overall changes in the external macro-economy to the micro level will
    
    inevitably be reflected in the changes in the enterprise's capital investment intentions. If the
    
    macroeconomic growth rate continues to slow down in the future, and the operating conditions of
    
    downstream manufacturers will decline, it may cause domestic and foreign industry customers to be
    
    more cautious about their capital expenditure requirements, which in turn will have a certain
    
    negative impact on the company's order acquisition.
    
    2.Risks in globalization and internationalization
    
    With years of development, the company's degree of "globalization" continues to increase. The
    
    existing overseas subsidiaries of Dongfang Precision are distributed in countries such as Italy, Spain,
    
    the Netherlands and the United States. The company is faced with the problem of how to adapt and
    
    be familiar with the overseas legal environment, business environment, and cultural environment, as
    
    well as how to better communicate and cooperate with the overseas management team.
    
    Under the impact of the COVID-19 epidemic, the global economy has slowed down, and the rise of
    
    foreign trade protectionist forces has intensified international economic and trade frictions. Among
    
    the operating locations and customer distribution of the company's foreign subsidiaries, the
    
    European and American markets occupy an important position. The development of the epidemic
    
    situation in Europe and the United States and regions and the changes in the economic restart and
    
    recovery are expected to have a certain uncertain impact on the company's foreign subsidiary
    
    operations in 2020.
    
    3. Fluctuation risk of main raw material prices
    
    The main raw materials required for the manufacturing and production of the company's intelligent
    
    packaging equipment are electrical components, standard parts, machined parts, other raw materials
    
    and auxiliary materials. During the reporting period, the purchase amount of these main raw
    
    materials accounted for a relatively high proportion of the company's main business costs. If the
    
    prices of major raw materials continue to rise sharply in the future, and the company is not able to
    
    transfer the increased procurement costs to the downstream in time, then the production budget
    
    arrangement will be greatly affected, and the company will face the risk of rising operating costs
    
    and falling gross profit margins, which may adversely affect the company's profitability.
    
    Section 5 Important Matters
    
    I. Relevant information on the annual and interim general meetings of shareholders held
    
    during the reporting period
    
    1. The status of the shareholders' meeting during the reporting period
    
       Sessionofthe      Meetingtype       Investor      Dateofconvening   Disclosuredate    Disclosureindex
         meeting                    participationratio
                                                                             Cninfo
                                                                             (http://www.cninfo.c
                                                                             om.cn),
    The firstinterim                                                              announcementofthe
    shareholders'      Interimshareholders'         37.80%March27,2020    March28,2020    resolutionofthefirst
    meeting in2020    meeting                                                     interimgeneral
                                                                             meetingof
                                                                             shareholdersin2020
                                                                             (announcement
                                                                             number:2020-022)
                                                                             Cninfo
                                                                             (http://www.cninfo.c
                                                                             om.cn),
    The secondinterim                                                            announcementofthe
    general meetingof  Interimshareholders'         29.28%April13,2020     April14,2020     resolutionofthe
    shareholders in2020 meeting                                                     secondinterim
                                                                             generalmeetingof
                                                                             shareholdersin2020
                                                                             (announcement
                                                                             number:2020-029)
                                                                             Cninfo
                                                                             (http://www.cninfo.c
                                                                             om.cn),
    2019 annualgeneral Annualshareholders'                                            announcementofthe
    meeting of       meeting                  42.59%May20,2020     May21,2020     resolutionofthe
    shareholders                                                                2019shareholders'
                                                                             meeting
                                                                             (announcement
                                                                             number:2020-046)
    The thirdinterim   Interimshareholders'         35.13%June24,2020     June29,2020     Cninfo
    general meetingof  meeting                                                     (http://www.cninfo.c
    shareholders in2020                                                           om.cn),
                                                                             announcementofthe
                                                                             resolutionofthe
                                                                             thirdinterimgeneral
                                                                             meetingof
                                                                             shareholdersin2020
                                                                             (announcement
                                                                             number:2020-059)
    
    
    2. The shareholders of the preferred shares whose voting rights have been restored request to hold an
    
    interim general meeting of shareholders.
    
    □ Applicable √ Not applicable
    
    II. Profit distribution and capitalization of capital reserves in the reporting period
    
    □ Applicable √ Not applicable
    
    The company does not distribute cash dividends in the planned semi-annual year, does not send bonus shares, and does not convert
    
    capital reserve into share capital.
    
    III. The company's actual controllers, shareholders, related parties, purchasers, and the company's commitments related parties have
    
    fulfilled their commitments during the reporting period and have not fulfilled their commitments as of the end of the reporting period
    
    √ Applicable □ Not applicable
    
       Commitmentreason    Commitmentparty Commitmenttype               Commitmentcontent               Commitmenttime Commitmentterm  Implementation
    Stock reformcommitments
    Commitments madeinthe
    acquisition reportorequity
    change report
                                                   IfPride’saccumulatedactualnetprofitafterdeductionin2016,
                                                   2017,and 2018 is not less than the cumulative promised net
                                                   profitafter deduction, or Pride's cumulative actual net profit
                                                   afterdeduction in 2016, 2017, and 2018 is lower than the
                        BAIC;CATL    Sharesaleslimit  cumulative promised net profit after deduction, but has                            Fulfilled
                                     commitment     fulfilled  the  corresponding  performance  compensationApril25,2017    UntilApril24,2020
                                                   obligationsandobtainedbyholdingthe subscriptionofPride's
                                                   equity Dongfang Precision Co., Ltd. After deducting the
    Commitments madeduring                            number of compensatedshares (if any), the ban can be lifted
    asset reorganization                                 afterthirty-sixmonthsfromthelistingdate.
                                                   IfPride’saccumulatedactualnetprofitafterdeductionin2016,
                                                   2017,and 2018 is not less than the cumulative promised net
                                                   profitafter deduction, or Pride's cumulative actual net profit
                        QinghaiPuren    Sharesaleslimit  after deduction in 2016, 2017, and 2018 is lower than the                            Fulfilled
                                     commitment     cumulative promised net profit after deduction, but has April25,2017    UntilApril24,2020
                                                   fulfilled the  corresponding  performance  compensation
                                                   obligationsandobtainedbyholdingthe subscriptionofPride's
                                                   equity 40% of the shares of Dongfang Precision. After
                                                   deductingthe amount of the compensatedshares (if any), the
                                                   banwillbeliftedafter36monthsfromthelistingdate.
                                                   Thetotalnumberof80% oftheshares ofDongfangPrecision
                        QinghaiPuren    Sharesaleslimit  acquired by subscriptionof shares held by Pride can be lifted April25,2017    UntilMay20,2020 Fulfilled
                                     commitment     after 48 months from the listing date of the shares after
                                                   deductingthenumberofcompensatedshares(ifany)
                                     Share saleslimit  The number of remaining shares of Dongfang Precision
                        QinghaiPuren    commitment     acquired by subscriptionof shares held by Pride can be lifted April25,2017    UntilMay20,2020 Fulfilled
                                                   after60monthsfromthedateoflisting
                                                   IfPride's cumulativeactual net profitafterdeductionin 2016,
                                                   2017,and 2018 is not less than the cumulative promised net
                                                   profitafter deduction, or Pride's cumulative actual net profit
                                                   after deduction in 2016, 2017, and 2018 is low after
                        Pulead;Foton    Sharesaleslimit  accumulatingcommitmentsto deductnon-post-netprofits,butApril25,2017    UntilApril24,2020 Fulfilled
                        Motor         commitment     having fulfilled the correspondingperformance compensation
                                                   obligations,theremainingsharesinDongfangPrecisionshares
                                                   acquiredthrough the subscription of shareholdings in Pride,
                                                   afterdeductingthenumberofcompensatedshares(ifany),the
                                                   bancanbeliftedafter36monthsfromthelistingdate.
                                                   1. For the related transactions between the company, the
                                                   companycontrolled by the company and other companies
                                     Commitments on  actuallycontrolledby the company'scontrollingshareholders,
                        Pulead;BAIC;    industry        and Dongfang Precision and its holding subsidiaries that
                        FotonMotor;     competition,     cannotbeavoidedorhavereasonablereasons,theywillstrictlyApril25,2017    UntilJanuary8,   Fulfilled
                        CATL;Qinghai   relatedparty     abide bythe marketprinciples.Inaccordancewiththe general              2020
                        Puren         transactions,and  principles of equality,mutual benefit and equal pay, fair and
                                     capital occupation reasonable conduct. For related transactions between the
                                                   company,the company controlled by the company, and the
                                                   company'scontrollingshareholderswho actuallycontrol other
                                                   companies and  Dongfang  Precision  and  its  holding
                                                   subsidiaries,an agreement will be signed in accordance with
                                                   thelaw,legalprocedureswillbeperformed,andrelevantlaws,
                                                   regulations,andregulatorydocuments,ArticlesofAssociation
                                                   ofDongfangPrecisionCo., Ltd.and otherrelevantprovisions
                                                   ofcorporate governance system to fulfill the obligation of
                                                   informationdisclosure,andtoensurethatthelegalrightsofthe
                                                   listed company and the majority of small and medium
                                                   shareholdersare notharmedthroughconnectedtransactions;2.
                                                   Thecompanywill activelyfulfill its obligations of avoidance
                                                   inaccordance with the law when it considers related-party
                                                   transactionsinvolving the company,the companiescontrolled
                                                   bythe company,and other companies actually controlled by
                                                   thecompany's controlling shareholders, and the transaction
                                                   mustbereviewedandapprovedbytheauthority.Itcanonlybe
                                                   executedafterwards;3.Thecompanyguaranteesthatitwillnot
                                                   obtainany undue benefits through connected transactions or
                                                   makeDongfangPrecision and its holding subsidiariesassume
                                                   anyundue obligations.In case of loss of DongfangPrecision
                                                   andits holding subsidiaries due to violation of the above
                                                   undertakings,the enterprise shall be liable for compensation
                                                   forlosses of DongfangPrecision and its holding subsidiaries.
                                                   Prideisindependentoftheunitandotherenterprisescontrolled
                                                   bythe unit in terms of assets, business, personnel, finance,
                                                   institutions,etc., and has an independent and complete asset
                                                   structureand business system; after the completion of this
                                                   transaction,the unit will continue to maintain the general
                                                   Pride'sindependent operationguaranteesthat the company or
                                                   itsrelated parties and its transactions are regulated in their
                                                   transactions,activelyperforminternal controlprocedures,and
                                                   thetransactionpricesarestrictlypricedbasedonmarketprices
                                                   toavoid adversely affecting the independence of the listed
                                                   company.
                                                   1.The enterprise, the enterprise controlled by the enterprise
                                                   andother enterprises actually controlled by the controlling
                                                   shareholderoftheenterprisewillnotengageinthesamedirect
                                                   orindirect way as the main business of Dongfang Precision
                                                   andits subsidiaries,PrideanditssubsidiariesSimilarbusiness
                                                   willnotbeengagedinthesameorsimilarbusinessasthemain
                                                   businessofDongfangPrecisionandits subsidiaries,Prideand
                                                   itssubsidiaries through investment, acquisition,joint venture,
                                                   merger,or entrusted operation in China. 2. Any business
                                                   opportunitiesthatthe company,the companycontrolledbythe
                                     Commitments on  company, and other companies actually controlled by the
                                     industry        company's controlling shareholder will obtain from any third
                        Pulead;Qinghai   competition,     partyinthefuturearerelatedtothemainbusinessofDongfang              UntilJanuary8,
                        Puren         relatedparty     Precision and its subsidiaries, Pride and its subsidiaries. IfApril25,2017    2020           Fulfilled
                                     transactions, and  there is competition or there may be competition, the
                                     capital occupation enterprise,theenterprisecontrolledbytheenterpriseandother
                                                   enterprisesactuallycontrolledbythecontrollingshareholderof
                                                   theenterprisewillimmediatelynotifyDongfangPrecision and
                                                   itssubsidiaries,Prideand its subsidiaries,andtry their bestto
                                                   givethebusinessopportunityFerrytoDongfangPrecisionand
                                                   itssubsidiaries, Pride and its subsidiaries.3. If the enterprise,
                                                   theenterprisecontrolledbytheenterpriseandotherenterprises
                                                   actually controlled by the controlling shareholder of the
                                                   enterprisecause losses to Dongfang Precision and its related
                                                   partiesdue to failure to perform or improperly perform the
                                                   abovecommitments,the enterprise shall bear the full amount
                                                   incashandotherlosses.
                                                   1.Sincethecompletionofthisreorganization,thenewlyissued
                                                   sharesissued by Dongfang Precision to the companywill be
                                                   registeredwithinthe name ofthe companywithin 36 months.
                                                   Thecompany and the company acting in concert will not
                        Pulead;BAIC;                 increase the shares of Dongfang Precision. 2. Since the
                        FotonMotor;     Other         completion of this reorganization,within 36 months from the
                        CATL;Qinghai   commitments    date when the newly-increased shares issued by DongfangApril25,2017    UntilApril24,2020 Fulfilled
                        Puren                       Precisiontothe companyare registeredunderthe nameofthe
                                                   company,the companyand the person acting in concert with
                                                   the company will not seek any control position. 3. This
                                                   commitmenttakes effect as soon as it is made and cannot be
                                                   revoked.Ifthe abovecommitmentsare violated,the company
                                                   willassumecorrespondinglegalresponsibilities
                                                   1.Within60monthsfromthecompletionofthistransaction,I
                                                   promise not to give up the actual control of Dongfang
                                                   Precision.2. In orderto continueto share the businessresults
                                                   ofDongfang Precision, I have the intention to hold shares of
                                                   DongfangPrecision for a long time. Under this premise, I
                                                   furtherundertake to selectthe appropriatetime to increase or
                        TangZhuolin;TangOther         reduce holdings of Dongfang Precision based on my own
                        Zhuomian      commitments    capital holdings and capital demand, while ensuring that the April25,2017    UntilMay20,2020 Fulfilled
                                                   actualcontroller of Dongfang Precision does not change The
                                                   relevanttransactionsshallbecarriedoutinaccordancewiththe
                                                   relevant regulations of the China Securities Regulatory
                                                   Commission and  Shenzhen  Stock  Exchange.  3.  This
                                                   commitmenttakes effect as soon as it is made and cannot be
                                                   revoked.If the above commitmentis violated, I will bear the
                                                   correspondinglegalresponsibility.
    Commitments madeduring
    initial publicofferingor
    refinancing
    Equity incentive
    commitment
    Other commitmentsmadeto
    the company'ssmalland
    medium shareholders
    Whether thepromiseis    YES
    fulfilled ontime
    If thecommitmentisnot
    fulfilled withinthetime
    limit, thespecificreasonsfor
    the failuretocompletethe  Notapplicable
    performance andthework
    plan forthenextstepshall
    be explainedindetail.
    
    
    IV. Appointment and Dismissal of Accounting Firms
    
    Has the semi-annual financial report been audited?
    
    □ Yes √ No
    
    The company's semi-annual report has not been audited.
    
    V. Explanation of the "non-standard audit report" of accounting firms during the reporting
    
    period by the board of directors and the board of supervisors
    
    □ Applicable √ Not applicable
    
    VI. Explanation of the board of directors on the relevant situation of the "non-standard audit
    
    report" of the previous year
    
    □ Applicable √ Not applicable
    
    VII. Matters related to bankruptcy and reorganization
    
    □ Applicable √ Not applicable
    
    There were no bankruptcy and reorganization related matters during the reporting period.
    
    VIII. Litigation matters
    
    Major litigation and arbitration matters
    
    □ Applicable √ Not applicable
    
    There are no major litigation or arbitration matters during the reporting period.
    
    Other litigation matters
    
    □ Applicable √ Not applicable
    
    IX.The media questioning.
    
    □ Applicable √ Not applicable
    
    There are no questions in the media during the reporting period.
    
    X. Penalties and rectification
    
    □ Applicable √ Not applicable
    
    There were no penalties and rectifications during the reporting period.
    
    XI. The integrity of the company and its controlling shareholders and actual controllers
    
    □ Applicable √ Not applicable
    
    Ⅻ. Implementation of the company's equity incentive plan, employee stock ownership plan or
    
    other employee incentive measures
    
    √ Applicable □ Not applicable
    
    In order to improve the company's long-term incentive mechanism, fully mobilize the enthusiasm of managers at all levels and core
    
    backbone of the company, effectively promote the long-term development of the company, and achieve the goal of "stabilizing the
    
    team, boosting morale, gathering talents and improving performance", the company launched the 2020 restricted stock incentive plan
    
    in the first quarter of 2020, with 27 million A shares repurchased from the secondary market as incentive shares. The proportion of
    
    the total share capital is 1.75%, and the grant price of restricted shares is 1 yuan per share. The incentive objects are the directors,
    
    senior managers and core technical (business) personnel who served in the company (including subsidiaries, the same below) when
    
    the company announced this incentive plan.
    
    The 2020 restricted stock incentive plan has been examined and approved by the 43th (interim) meeting of the third board of
    
    directors and the first interim general meeting of shareholders held on March 11, 2020 and March 27, 2020 respectively. For details,
    
    see The Summary of the 2020 Restricted Stock Incentive Plan (draft) disclosed on http://www.cninfo.com.cn, on March 12, 2020,
    
    and The Announcement of the Resolution of the First Interim General Meeting of 2020 disclosed on http://www.cninfo.com.cn on
    
    March 28, 2020.
    
    The company held the 44th (interim) meeting of the third session of the board of directors on March 27, 2020, and examined and
    
    adopted the Bill on Granting Restricted Stocks to Incentive Targets. The date of granting some restricted shares for the first time is
    
    March 27, 2020. For details, see The Announcement on Granting Restricted Stocks to Incentive Targets published on March 28, 2020
    
    on http://www.cninfo.com.cn.
    
    On June 8, 2020, the 48th (interim) meeting of the third session of the Board of Directors and the 31st (interim) meeting of the third
    
    session of the Board of Supervisors examined and adopted the Bill on Adjusting the Related Matters of the 2020 Restricted Stock
    
    Incentive Plan. The independent directors of the company expressed an independent opinion on this and agreed that the board of
    
    directors of the company should adjust the list of incentive targets and the number of awards. After the adjustment, the number of
    
    incentive targets for the first grant part of the company's restricted stock incentive plan will be adjusted from 42 to 40, the number of
    
    first grant will be adjusted to 22.6 million shares, the number of reserved restricted shares will be adjusted to 4, 400,000 shares, and
    
    the total number of rights and interests to be granted by the incentive plan will remain unchanged. For details, see the announcement
    
    on the adjustment of the 2020 restricted stock incentive plan disclosed by the company on June 9, 2020 on http://www.cninfo.com.cn.
    
    On June 23, 2020, the company completed the registration of the first grant of the 2020 restricted stock incentive plan. For details,
    
    see The Announcement on the Completion of the First Grant of the 2020 Restricted Stock Incentive Plan published on
    
    http://www.cninfo.com.cn on June 24, 2020.
    
    XIII. Major related transactions
    
    1. Related transactions related to daily operations
    
    □ Applicable √ Not applicable
    
    There are no related transactions related to daily operations during the reporting period of the company.
    
    2. Related transactions in the acquisition or sale of assets or equity
    
    □ Applicable √ Not applicable
    
    During the reporting period, the company did not have any related party transactions related to the acquisition or sale of assets or
    
    equity.
    
    3. Related transactions of joint foreign investment
    
    □ Applicable √ Not applicable
    
    During the reporting period, there was no related party transaction involving joint foreign investment.
    
    4. Related credit and debt transactions
    
    □ Applicable √ Not applicable
    
    There are no related creditor's rights and debts during the reporting period of the company.
    
    5. Other major related party transactions
    
    □ Applicable √ Not applicable
    
    There were no other major related transactions during the reporting period.
    
    XIV. Non-operating capital occupation of listed companies by controlling shareholders and
    
    their related parties
    
    □ Applicable √ Not applicable
    
    During the reporting period of the company, there was no non-operating capital occupation of the listed company by the controlling
    
    shareholder and its related parties.
    
    XV. Major contracts and their performance
    
    1. Entrustment, contracting and leasing matters
    
    (1) Trusteeship
    
    □ Applicable √ Not applicable
    
    There was no trusteeship during the reporting period.
    
    (2) Contracting situation
    
    □ Applicable √ Not applicable
    
    There was no contracting during the reporting period.
    
    (3) Lease situation
    
    □ Applicable √ Not applicable
    
    There were no leases during the reporting period.
    
    2. Material guarantee
    
    √Applicable □ Not applicable
    
    (1) Guarantee situation
    
    Unit: ten thousand yuan
    
                External guaranteesofthecompanyanditssubsidiaries(excludingguaranteesforsubsidiaries)
                  Announcem                                                   Whether
                   entofthe                        Actual                         the   Whether
     Nameofguarantee  relevant   Guarantee   Actualdate    guarantee     Typeof    Warranty  performan guarantee
         object      amountof   amount                amount     guarantee    period     ceis  forrelated
                   guarantee                                                   completed  parties
                   amount
                                    Companyguaranteestosubsidiaries
                  Announcem                                                   Whether
                   entofthe                        Actual                         the    Whether
     Nameofguarantee  relevant   Guarantee   Actualdate    guarantee     Typeof    Warranty  performan guarantee
         object     amountof   amount                amount     guarantee    period     ceis  forrelated
                   guarantee                                                   completed  parties
                   amount
    Dongfang PrecisionJune28,      27,863.5August10,         27,863.5Jointliability 36months  NO     NO
    (Netherland)   2017              2017                   guarantee
    Dongfang PrecisionJanuary11,   35,728.97March16,2020     35,728.97Jointliability 40months  NO     NO
    (Netherland)   2020                                    guarantee
    The totalamountofguarantees                      Totalactualamountof
    approved forsubsidiariesduring 63,592.47             guaranteesissuedto                         35,728.97
    the reportingperiod(B1)                          subsidiariesduringthe
                                              reporting period(B2)
    The totalamountofguarantees                      Totalactualguaranteebalance
    for subsidiariesapprovedatthe  63,592.47             ofsubsidiariesattheendofthe                 63,592.47
    end ofthereportingperiod(B3)                     reportingperiod(B4)
                                    Subsidiary tosubsidiaryguarantee
                  Announcem                                                   Whether
                   entofthe                        Actual                         the    Whether
     Nameofguarantee  relevant   Guarantee   Actualdate    guarantee     Typeof    Warranty  performan guarantee
         object     amountof   amount                amount     guarantee    period     ceis  forrelated
                   guarantee                                                   completed  parties
                   amount
                                                                   From the
                  May15,                                  Jointliability effective
    Italy QCorr      2020         2,388.3April30,2020       2,388.3guarantee    dateofthe  NO     NO
                                                                   guarantee to
                                                                   May 1,2021
                                                                   Within 48
                  May15,                                  Jointliability monthsfrom
    Italy QCorr      2020        1,990.25April29,2020      1,990.25guarantee    theeffective NO     NO
                                                                   date ofthe
                                                                   guarantee
    The totalamountofguarantees                      Totalactualamountof
    approved forsubsidiariesduring               4,378.55guaranteestosubsidiaries                      4,378.55
    the reportingperiod(C1)                          duringthereportingperiod
                                              (C2)
    The totalamountofguarantees                      Totalactualguaranteebalance
    approved forsubsidiariesatthe               4,378.55ofsubsidiariesattheendofthe                  4,378.55
    end ofthereportingperiod(C3)                     reportingperiod(C4)
    Total companyguarantee(iethesumofthetopthreeitems)
    The totalamountofguarantees                      Totalactualguaranteeamount
    approved duringthereporting               67,971.02duringthereportingperiod                    40,107.52
    period (A1+B1+C1)                           (A2+B2+C2)
    The totalamountofguarantees                      Totalactualguaranteebalance
    approved attheendofthe                  67,971.02attheendofthereporting                     67,971.02
    reporting period(A3+B3+C3)                     period(A4+B4+C4)
    The proportionoftheactualtotalguarantee(ieA4+B4+C4)                                         15.18%
    to thecompany’snetassets
    Of which:
    Balance ofguaranteeforshareholders,actualcontrollersand                                              0
    their relatedparties(D)
    The balanceofdebtguaranteeprovideddirectlyorindirectly
    for theguaranteedobjectwithanasset-liabilityratioexceeding                                       67,971.02
    70% (E)
    The amountoftheguaranteeamountexceeding50%ofthenet                                             0
    assets (F)
    Total amountoftheabovethreeguarantees(D+E+F)                                            67,971.02
    Explanation ofunexpiredguarantees,duringthereporting
    period, aguaranteeliabilityhasoccurredormaybejointlyand Notapplicable
    severally liable(ifany)
    Instructions forprovidingexternalguaranteesinviolationof  Notapplicable
    prescribed procedures(ifany)
    
    
    (2) External guarantees in violation of regulations
    
    □ Applicable √ Not applicable
    
    During the reporting period, the company had no violations of external guarantees.
    
    3.Entrusted financial management
    
    √Applicable □ Not applicable
    
    Unit: ten thousand yuan
    
        Specific type       Sourceoffundsfor     Entrustedfinancial     Outstandingbalance    Overdueamountnot
                        entrustedfinancing       management                           recovered
    Bank wealth         Raisedfunds                      65,000                0                0
    management products
    Bank wealth         Ownfunds                       167,300             88,000                0
    management products
    In total                                          232,300             88,000                0
    
    
    The specific situation of high-risk entrusted financial management with large single amount or low security, poor liquidity and
    
    non-guaranteed capital
    
    □ Applicable √ Not applicable
    
    The entrusted financial management has expected that the principal cannot be recovered or there are other situations that may cause
    
    impairment
    
    □ Applicable √ Not applicable
    
    4. Other major contracts
    
    □ Applicable √ Not applicable
    
    There were no other major contracts during the reporting period.
    
    XVI. Social responsibility
    
    1. Major environmental protection issues
    
    The company and its subsidiaries are not among the key pollutant discharge units announced by the environmental
    
    protection department.
    
    2. Fulfilling the social responsibility of poverty alleviation with precision
    
    In the first half of 2020, the company and its wholly-owned and holding subsidiaries have not carried out accurate
    
    poverty alleviation work, and there is no follow-up accurate poverty alleviation plan for the time being.
    
    3. Fulfillment of social responsibility during the reporting period
    
    The company attaches great importance to the fulfillment of social responsibilities in its daily operations, and
    
    intends to promote the harmony and common prosperity of the company and its stakeholders, actively act in the
    
    protection of shareholders and creditors, the protection of the rights and interests of employees, the protection of
    
    the rights and interests of suppliers, customers and clients, environmental protection and sustainable development,
    
    public relations and social welfare, and strive to realize the society including the sustainable development of the
    
    company The overall benefit is maximized.
    
    (1) Corporate governance: During the reporting period, the company strictly followed the requirements of laws
    
    and regulations such as the "Company Law", "Securities Law", and "Code of Corporate Governance for Listed
    
    Companies in China", continuously improved the corporate governance structure, and improved the internal
    
    control system. The decision-making system with the board of directors, the board of supervisors and the
    
    management as the main structure, and at the same time fulfill the information disclosure obligations in a timely
    
    manner in accordance with the law and regulations, and effectively protect the rights and interests of all
    
    shareholders.
    
    (2) Customer-supplier relationship: The company has long been adhering to the principles of "integrity
    
    management" and "mutual benefit and win-win", actively build and develop strategic partnerships with suppliers
    
    and customers, jointly build a platform of trust and cooperation, and effectively implement the company's supplier
    
    1. Social responsibility to consumers. The company's contracts with suppliers and customers have performed well,
    
    and the rights and interests of all parties have received high attention and due protection.
    
    (3) Production safety: The company strictly abides by the relevant laws and regulations of the "Labor Law" and
    
    "Labor Contract Law", puts people first, pays attention to the needs of employees, strives to improve the working
    
    and living environment of employees, and sets up labor unions to effectively protect the interests of employees.
    
    Configure labor protection articles according to the hazards of job exposure, organize employees to conduct
    
    occupational health examinations (before going on duty, on the job, and before leaving the job), and purchase
    
    "safety and liability insurance" for the jobs with larger risk factors.
    
    (4) Environmental protection: Dongfang Precision has invested a total of about 6.006 million yuan in
    
    environmental protection in China, including the expenses of new environmental protection equipment, equipment
    
    maintenance, operation, hazardous waste transfer and disposal, etc., and the normal operation of environmental
    
    protection equipment is managed and operated by special personnel. There is even regular maintenance of
    
    environmental protection equipment so as to ensure the normal operation of the equipment. Dongfang Precision
    
    has obtained the "Environmental Assessment Approval" from the environmental protection department, passed the
    
    certification review of "OHSAS18001:2007 Occupational Health and Safety Management System" and
    
    "ISO14001:2005 Environmental Management system", and obtained the certificates of "Environmental Cleaner
    
    Production" and "National Pollution Discharge License". In terms of exhaust emissions, the prescribed total
    
    amount of exhaust emissions is VOCs:0.606t/a (including organized emissions of 0.397 t/a and unorganized
    
    emissions of 0.209 t/a). In the production process, the company takes a variety of measures to control waste
    
    discharge, treat waste gas, etc., to achieve discharge standards. In wastewater discharge, through metal surface
    
    treatment cleaning wastewater treatment facilities and reclaimed water reuse system for treatment, the Company
    
    can meet the standards in Table 1 - Standard for Water Quality of Reclaimed Water for Products and Processes in
    
    Urban Sewage Recycled Industrial Water Quality (GB/T 19923-2005) , and then recycled without discharge.
    
    (5) Anti-epidemic and anti-epidemic aspects: Since the outbreak of the new coronavirus pneumonia around the
    
    Spring Festival in 2020, the company has actively participated in social anti-epidemic activities and took the
    
    following actions:
    
    A. Doing its own epidemic prevention work: The company organized and established the epidemic prevention
    
    committee with the general manager as the general commander for the first time, and made all-round
    
    deployment arrangements for various prevention and control work; actively carried out the collection and
    
    deployment of epidemic prevention materials, and equipped staff Masks, temperature guns, disinfectants and
    
    other epidemic prevention materials.
    
    B. Actively respond to the government's call for orderly resumption of production and production under the
    
    premise of good epidemic prevention and control work, formulate a thorough plan for resumption of production
    
    and compaction of related work, implement various prevention and control measures, and pass the on-site
    
    acceptance of government departments Afterwards, the safe resumption of work was successfully achieved;
    
    C. Actively fulfill social responsibilities, go through the same path of "fighting epidemic" road through wind and
    
    rain: the company actively fulfills its social responsibilities and responsibilities as an influential listed company,
    
    actively donates cash and donated epidemic prevention materials to relevant associations, hospitals, and public
    
    welfare organizations, and supports them with practical actions Anti-epidemic frontline; and donated
    
    anti-epidemic materials to the company's subsidiaries and agents in Italy, the United States and Spain.
    
    (6) Anti-fraud: during the reporting period, the company organized and implemented logistics business
    
    procurement audit, information business backup project procurement audit to conduct a comprehensive review of
    
    the supplier qualification background and access procedures, price comparison, technical solutions, services and
    
    delivery of procurement business, and prompt and report business risks in time for the existing problems such as
    
    insufficient search of supplier resources and price comparison at different levels so as to effectively improve the
    
    effectiveness of the procurement business, monitor and prevent the risk of procurement fraud.
    
    XVII. Explanation of other important matters
    
    √Applicable □ Not applicable
    
    Based on the changes in the actual situation of the company (such as total share capital, etc.), and the revision of
    
    superior laws such as The Company Law and Code of Corporate Governance for Listed Companies in China
    
    during the period from 2018 to 2019, and combined with the needs of the actual situation of the company, we
    
    promote the creation of a relatively stable internal and external development environment, so that the company
    
    can focus on the development of the company's "high-end smart equipment" main business and other factors. The
    
    forty-third (interim) meeting of the third session of the board of directors and the first interim general meeting of
    
    shareholders held by the company on March 11, 2020 and March 27, 2020 respectively examined and passed the
    
    bill on revising the Articles of Association of the Company.
    
    XVIII. Major matters of the company's subsidiaries
    
    □ Applicable √ Not applicable
    
    Section 6 Changes in Shares and Shareholders
    
    I. Changes in shares
    
    1. Changes in shares
    
    Unit: shares
    
                     Beforethischange          Increaseanddecreaseofthischange(+,-)        Afterthischange
                                      Issuing      Provident
                  Number     Percentage    new  Stock   Fund     Others     Intotal     Number   Percentage
                                       sharesgivingConversion
                                                 toshares
    I. Restricted     731,859,476       39.80%    0    0       0 -489,573,912-489,573,912  242,285,564   15.68%
    shares
    1. National             0        0.00%    0    0       0        0        0         0   0.00%
    holdings
    2. State-owned
    legal person     356,869,565       19.41%    0    0       0 -356,869,565-356,869,565         0   0.00%
    holding shares
    3. Other
    domestic-funded  374,989,911       20.39%    0    0       0 -134,004,347-134,004,347  240,985,564   15.60%
    shares
    Of which:
    domestic legal   155,304,347        8.45%    0    0       0 -155,304,347-155,304,347         0   0.00%
    person holding
    shares
    Domestic
    natural person   219,685,564        11.95%    0    0       0  21,300,000  21,300,000  240,985,564   15.60%
    holding shares
    4. Foreign             0        0.00%    0    0       0   1,300,000   1,300,000   1,300,000   0.08%
    shareholdings
    Of which:
    Overseas legal          0        0.00%    0    0       0        0        0         0   0.00%
    person holding
    shares
    Overseas natural
    person holding          0        0.00%    0    0       0   1,300,000   1,300,000   1,300,000   0.08%
    shares
    II.Unrestricted  1,106,787,620       60.20%    0    0       0 196,053,773 196,053,7731,302,841,393   84.32%
    shares
    RMB common  1,106,787,620       60.20%    0    0       0 196,053,773 196,053,7731,302,841,393   84.32%
    stock
    Domestically
    listed foreign           0        0.00%    0    0       0        0        0         0   0.00%
    shares
    Foreign-listed           0        0.00%    0    0       0        0        0         0   0.00%
    foreign shares
    4.Others               0        0.00%    0    0       0        0        0         0   0.00%
    III.Totalshares  1,838,647,096       100.00%    0    0       0 -293,520,139-293,520,1391,545,126,957  100.00%
    
    
    Reasons for changes in shares
    
    √Applicable □ Not applicable
    
    1. The repurchase and cancellation of the performance compensation shares shall be completed during the
    
    reporting period.
    
    At the end of 2019, the company resolved the dispute over Pride's performance commitment by implementing a
    
    "package of solutions". In the above plan, the company buys back 293,520,139 shares of Dongfang Precision A
    
    shares held by Pride's former shareholders, Pulead, CATL, BAIC, Foton Motor, Qinghai Puren, etc., which was
    
    completed in January 2020.
    
    2. Some restricted shares are listed and circulated during the reporting period.
    
    With the application of the company and the approval of the Shenzhen Stock Exchange, 193,871,164 limited sale
    
    condition shares held by shareholders such as Pulead, CATL, BAIC, Foton Motor, Qinghai Puren, etc., will be
    
    lifted on Monday, April 27, 2020. 24,782,609 limited sale condition shares held by shareholders such as Qinghai
    
    Puren will be lifted from the restricted listing and circulation on Wednesday, June 3, 2020.
    
    3.The first registration of the company's 2020 restricted stock incentive plan will be completed within the
    
    reporting period
    
    The company launched the restricted stock incentive plan in the first half of 2020 and completed the registration
    
    of the first grant in June 2020, granting a total of 22,600,000 restricted shares, of which three foreign incentive
    
    targets were granted a total of 1,300,000 incentive shares.
    
    Approval of changes in shares
    
    √ Applicable □ Not applicable
    
    With regard to the above-mentioned share changes, the company has fulfilled the approval procedures of the
    
    shareholders' general meeting and the board of directors in accordance with the laws and regulations and the
    
    Articles of Association, and all of them have been approved by the Shenzhen Stock Exchange.
    
    Transfer of ownership of changes in shares
    
    √ Applicable □ Not applicable
    
    During the reporting period, the "repurchase and cancellation of performance compensation shares" and "the first
    
    grant and registration of the company's 2020 restricted stock incentive plan" involved the transfer of shares, all of
    
    which were approved by the Shenzhen Stock Exchange. completed in Shenzhen Branch of China Securities
    
    Registration and Clearing Co., Ltd.
    
    Progress in the implementation of share repurchase
    
    √ Applicable □ Not applicable
    
    The 49th (interim) meeting of the third session of the board of directors held on June 15, 2020 and the third
    
    interim shareholders' meeting of 2020 held on June 24, 2020 examined and approved the 2020 annual share
    
    repurchase plan. The company uses its own funds, funds raised that have been changed into permanent
    
    replenishment of current funds in accordance with the law, and loans from financial institutions, to implement a
    
    centralized bidding transaction to buy back part of the company's A-shares of RMB common shares (hereinafter
    
    referred to as "the repurchase of shares in 2020"). The total amount of funds to be used by the company shall not
    
    be less than 500 million yuan (inclusive), not more than 1 billion yuan (inclusive), and the repurchase price shall
    
    not exceed RMB 6.42 yuan per share; all the repurchased shares will be used for write-off and reduce the
    
    company's registered capital; the implementation period shall be within 12 months from the date of consideration
    
    and adoption of this share repurchase plan by the shareholders' general meeting.
    
    As of the date of disclosure of this report, the company has implemented the repurchase of shares in 2020 through
    
    centralized bidding transactions, with a total of 37,531,131 shares of the company, accounting for 2.43% of the
    
    company's total share capital, with a maximum transaction price of 5.10 yuan per share and a minimum
    
    transaction price of 4.72 yuan per share. the total amount paid is about 185 million yuan (excluding transaction
    
    fees).
    
    Progress in the implementation of centralized bidding to reduce holdings of repurchased shares
    
    □ Applicable √ Not applicable
    
    The impact of share changes on financial indicators such as basic earnings per share and diluted earnings
    
    per share in the most recent year and the most recent period, and net assets per share attributable to the
    
    company's common stock shareholders
    
    √ Applicable □Not applicable
    
                                           Before thechangeofshares      Afterthechangeofshares
     Basicearningspersharefor2019(RMB/share)               1.01                      1.19
     Dilutedearningspersharefor2019(RMB/share)              1.01                      1.19
     Netassetspersharefor2019(yuan/share)                  2.36                      2.81
    
    
    Other content deemed necessary by the company or required by the securities regulatory agency
    
    □ Applicable √ Not applicable
    
    2. Changes in restricted shares
    
    √Applicable □ Not applicable
    
    Unit: shares
    
                            Numberof     Thenumberof  Thenumberof  Numberof
                         restrictedsharesat shareswhosesales   increased    restricted
        Shareholder name      thebeginningof   restrictionshave    restricted   sharesatthe  Reasonsforsalesrestriction         Dateofliftingtherestrictiononsale
                            theperiod    beenliftedinthis  sharesinthis   endofthe
                                           period        period      period
                                                                         Participateinthenon-public  On January 8, 2020, the performance compensation
            Pulead             188,347,825      188,347,825         0         0offeringofsharesandmakea repurchase cancelled 111,537,653 shares; on April 27,
                                                                         commitmenttolimitthesale  2020,the restrictiononthe sale of76,810,172shares was
                                                                         ofshares               lifted.
                                                                         Participateinthenon-public  On January 8, 2020, the performance compensation
            BAIC             118,956,522      118,956,522         0         0offeringofsharesandmakea repurchasecancelled70,444,833shares;onApril27,2020,
                                                                         commitmenttolimitthesale  therestrictiononthesaleof48,511,689shareswaslifted.
                                                                         ofshares
                                                                         Participateinthenon-public  On January 8, 2020, the performance compensation
            CATL             114,000,000      114,000,000         0         0offeringofsharesandmakea repurchasecancelled67,509,632shares;onApril27,2020,
                                                                         commitmenttolimitthesale  therestrictiononthesaleof46,490,368shareswaslifted.
                                                                         ofshares
                                                                         Participateinthenon-public  On January 8, 2020, the performance compensation
          Foton Motor           49,565,218       49,565,218         0         0offeringofsharesandmakea repurchasecancelled29,352,014shares;onApril27,2020,
                                                                         commitmenttolimitthesale  therestrictiononthesaleof20,213,204shareswaslifted.
                                                                         ofshares
          QinghaiPuren           41,304,347       41,304,347         0         0Participateinthenon-public  On January 8, 2020, the performance compensation
                                                                         offeringofsharesandmakea repurchasecancelled14,676,007shares;onApril27,2020,
                                                                         commitmenttolimitthesale  the restriction on the sale of 1,845,731 shares was lifted;
                                                                         ofshares               on June 3, 2020, the restriction on the sale of 24,782,609
                                                                                             shares waslifted.
                                                                         Participateinthecompany's  When the conditions for the lifting of sales restrictions
           QiuYezhi            16,632,388             0    9,000,000   25,632,3882020restrictedstockincentive stipulated in the 2020 restricted stock incentive plan are
                                                                         plan                  met
                                                                         Participateinthecompany's  When the conditions for the lifting of sales restrictions
           XieWeiwei                  0             0    1,000,000    1,000,0002020restrictedstockincentive stipulated in the 2020 restricted stock incentive plan are
                                                                         plan                  met
                                                                         Participateinthecompany's  When the conditions for the lifting of sales restrictions
          ZhouWenhui                  0             0    1,200,000    1,200,0002020restrictedstockincentive stipulated in the 2020 restricted stock incentive plan are
                                                                         plan                  met
      Other37incentivetargets                                                  Participateinthecompany's  When the conditions for the lifting of sales restrictions
     granted partoftherestricted             0             0   11,400,000   11,400,0002020restrictedstockincentive stipulated in the 2020 restricted stock incentive plan are
      stockincentiveplanforthe                                                 plan                  met
         firsttimein2020
             Total             528,806,300      512,173,912   22,600,000   39,232,388          --                             --
    
    
    II. Securities issuance and listing
    
    □ Applicable √ Not applicable
    
    III. The number of company shareholders and shareholdings
    
    Unit: shares
    
    Total numberofordinaryshareholdersatthe                             52,278Totalnumberofpreferredshareholderswith                                  0
    end ofthereportingperiod                                             votingrightsrestoredattheendofthereporting
                                                                   period(ifany)(seeNote8)
                                 Commonstockshareholdersholdingmorethan5%ofthesharesorthetop10commonstockshareholders
                                                     Numberof                Numberof                Pledgeorfreezesituation
                                        Shareholding    sharesheldat  Changesduring  shareswith   Numberofshares
    Name ofshareholder   Natureofshareholders    ratio          theendofthe  thereporting    limitedsales   holdingunlimited Sharestatus      Quantity
                                                     reporting    period        conditions    sales
                                                     period
    TangZhuolin        Domesticnaturalperson          17.52%   270,737,568               203,053,176     67,684,392Freeze                   187,000,000
    TangZhuomian      Domesticnaturalperson           8.79%   135,885,134                            135,885,134
    Pulead Technology    State-ownedlegalperson           4.97%   76,810,172-111,537,653                   76,810,172
    Industry Co.,Ltd.
    Beijing Automotive
    Group Industry      State-ownedlegalperson           3.14%   48,511,689-70,444,833                    48,511,689
    Investment Co.,Ltd.
    ContemporaryAmperex Domesticnon-state-owned
    TechnologyCo.      legalperson                   3.01%   46,490,368-67,509,632                    46,490,368
    Limited
    Ruan Huili         Domesticnaturalperson           2.92%   45,087,232-83,100                       45,087,232
    Construction
    Investment Investment State-ownedlegalperson           2.54%   39,215,685                            39,215,685
    Co., Ltd.
    Luzhou Industrial
    Investment GroupCo., State-ownedlegalperson           2.06%   31,770,010                            31,770,010
    Ltd.
    Huarong           Other                       2.03%   31,372,549                            31,372,549
    Securities-China
    Merchants
    Securities-Huarong
    YouzhiNo.1Collective
    Asset ManagementPlan
    Qiu Yezhi          Domesticnaturalperson           2.02%   31,176,5189,000,000         25,632,388      5,544,130
    Strategic investorsorgenerallegalpersonsbecome
    top 10ordinaryshareholdersduetoplacingnew    None
    shares (ifany)(seeNote3)
    Explanation oftheabove-mentionedshareholders'   Mr.TangZhuolinandMr.TangZhuomianarebrothers.OnAugust18,2010,thetwosigneda"ConsistentActionAgreement."Pulead
    related relationshiporconcertedaction          TechnologyIndustryCo.,Ltd.andQinghaiPurenIntelligentTechnologyR&DCenter(LimitedPartnership)arepartiesactingin
                                        concert.Thecompanyisnotawareofwhetherthereisanassociatedrelationshiporconcertedactionamongothershareholders.
                                           Shareholdingsofthetop10commonstockshareholderswithunlimitedsales
               Nameofshareholder            Numberofordinaryshareswithunlimitedsalesheldattheendofthereporting               Typesofshares
                                                                 period                             Typesofshares           Quantity
    Tang Zhuomian                                                                       135,885,134RMBcommonstock               135,885,134
    Pulead TechnologyIndustryCo.,Ltd.                                                          76,810,172RMBcommonstock               76,810,172
    Tang Zhuolin                                                                          67,684,392RMBcommonstock               67,684,392
    Beijing AutomotiveGroupIndustryInvestment                                                   48,511,689RMBcommonstock               48,511,689
    Co.,Ltd.
    ContemporaryAmperexTechnologyCo.Limited                                                  46,490,368RMBcommonstock               46,490,368
    Ruan Huili                                                                           45,087,232RMBcommonstock               45,087,232
    Construction InvestmentInvestmentCo.,Ltd.                                                    39,215,685RMBcommonstock               39,215,685
    Luzhou IndustrialInvestmentGroupCo.,Ltd.                                                    31,770,010RMBcommonstock               31,770,010
    Huarong Securities-ChinaMerchants
    Securities-HuarongYouzhiNo.1CollectiveAsset                                                  31,372,549RMBcommonstock               31,372,549
    Management Plan
    Qinghai PurenIntelligentTechnologyR&DCenter                                                26,628,340RMBcommonstock               26,628,340
    (Limited Partnership)
    Explanation oftherelationshiporconcertedaction   Mr.TangZhuolinandMr.TangZhuomianarebrothers.OnAugust18,2010,thetwosigneda"ConsistentActionAgreement."Pulead
    among thetop10commonstockshareholdersof    TechnologyIndustryCo.,Ltd.andQinghaiPurenIntelligentTechnologyR&DCenter(LimitedPartnership)arepartiesactinginconcert.
    unrestricted sharesoutstanding,andbetweenthetop  Thecompanyisnotawareofwhetherthereisanassociatedrelationshiporaconcertedactionamongtheothertop10shareholderswith
    10 commonstockshareholdersofunrestrictedshares unrestrictedsharesoutstandingandthetop10shareholders,orbetweenthetop10shareholderswithunrestrictedsharesoutstanding.
    outstanding andthetop10commonstock
    shareholders
    Explanation ofthetop10commonstock         AsofJune30,2020,amongthetop10shareholdersofthecompany,PuleadTechnologyIndustryCo.,Ltd.held73,755,050sharesofthe
    shareholders' participationinfinancingandsecurities companythroughthecustomercredittransactionguaranteesecuritiesaccountofCITICConstructionInvestmentSecuritiesCo.,Ltd.
    lending business(ifany)(seeNote4)
    
    
    Whether the top 10 common stock shareholders of the company and the top 10 common stock shareholders of unrestricted shares in the report period conducted agreed repurchase transactions
    
    □ Yes √ No
    
    The top 10 common stock shareholders of the company and the top 10 common stock shareholders with unrestricted sales conditions did not engage in agreed repurchase transactions during the
    
    reporting period.
    
    IV. Changes of controlling shareholder or actual controller
    
    Controlling shareholder changes during the reporting period
    
    □ Applicable √ Not applicable
    
    The controlling shareholder of the company has not changed during the reporting period.
    
    Change of actual controller during the reporting period
    
    □ Applicable √ Not applicable
    
    During the reporting period, the actual controller has not changed.
    
    Section 7 Preference Shares
    
    □ Applicable √ Not applicable
    
    During the reporting period, the company did not have preferred shares.
    
    Section 8 Relevant Information on Convertible Corporate Bonds
    
    □ Applicable √ Not applicable
    
    There was no convertible corporate bonds in the company during the reporting period.
    
    Section 9 Directors, Supervisors and Senior Management
    
    I. Changes in shareholding of directors, supervisors and senior management
    
    √ Applicable □Not applicable
    
                                                               Number
                              Number of  Number Numberof            of   Numberof
                              shares held ofshares   shares   Numberof restricted restricted
                                at the   increased decreased sharesheld  shares   shares  Numberofrestricted
      Name    Jobtitle   Jobstatus  beginning   inthe    inthe  attheendof awarded  grantedin  sharesawardedat
                                ofthe    current   current   theperiod   atthe  thecurrent theendoftheperiod
                                period    period   period   (shares)  beginning  period      (shares)
                               (shares)   (shares)  (shares)            ofthe   (shares)
                                                                period
                                                               (shares)
    Tang     Chairmanof  Current   270,737,568                270,737,568
    Zhuolin   theBoard
            Directorand
    Qiu Yezhi General     Current   22,176,518                 31,176,518         9,000,000        9,000,000
            Manager
            Directorand
    Xie      Deputy     Current                            1,000,000         1,000,000        1,000,000
    Weiwei   General
            Manager
    Mai     Independent  Current
    Zhirong   Director
    Peng     Independent  Current
    Xiaowei  Director
    He      Independent  Current
    Weifeng  Director
    Zhou    Board      Current                            1,200,000         1,200,000        1,200,000
    Wenhui   Secretary
            Chairmanof
    Chen    the        Current        480                     480
    Huiyi    Supervisory
            Board
    Zhao     Employee   Current
    Xiuhe    Representative
            Supervisor
    Cen     Supervisor   Current
    Meiling
    In total       --        --    292,914,566       0       0 304,114,566      0 11,200,000       11,200,000
    
    
    II. The company's directors, supervisors, senior management personnel changes
    
    □Applicable √Not applicable
    
    The company's directors, supervisors and senior managers have not changed during the reporting period, as detailed in the 2019
    
    annual report.
    
    Section 10 Corporate Bonds
    
    Whether the company has publicly issued and listed on the stock exchange, and has not matured or failed to fully
    
    redeem the corporate bonds on the date of approval of the semi-annual report.
    
    NO
    
    Section 11 Financial Report
    
    I.Audit report
    
    Is the semi-annual report audited?
    
    □ Yes √ No
    
    The company's semi-annual financial report has NOT been audited.
    
    II. Financial statements
    
    The unit of the statement in the financial notes is: yuan
    
    1. Consolidated balance sheet
    
    Prepared by: Guangdong Dongfang Precision aScience&Technology Co., Ltd.
    
    June 30, 2020
    
    Unit: yuan
    
                Item                      June30,2020                   December31,2019
    Current assets:
    Monetary funds                                   1,940,001,676.49                  2,356,703,434.60
    Settlement provisions
    Dismantling funds
    Transactional financialassets                          1,493,920,592.25                  1,164,039,381.59
    Derivative financialassets
    Notes receivable
    Accounts receivable                                 516,566,982.61                    597,431,210.02
    Receivable financing                                 39,532,463.47                    55,447,099.32
    Advance payment                                   53,680,384.23                    25,901,123.85
    Premium receivable
    Receivable reinsuranceaccount
    Provision forreinsurancecontract
    receivable
    Other receivables                                   83,949,250.19                     79,573,114.49
    Of which:interestreceivable                             3,486,564.94                       721,935.36
    Dividend receivable
    Buy backresalefinancialassets
    Inventory                                        838,468,641.98                    671,432,701.11
    Contract assets
    Holding assetsforsale
    Non-current assetsduewithinoneyear                                                     356,983.48
    Other currentassets                                 120,333,967.45                    22,346,314.29
    Total currentassets                                5,086,453,958.67                  4,973,231,362.75
    Non-current assets:
    Loans andadvances
    Debt investment
    Other debtinvestments
    Long-term receivables
    Long-term equityinvestment                            80,128,138.10                    72,372,355.03
    Investment inotherequityinstruments
    Other non-currentfinancialassets                         17,649,624.09                     20,559,159.34
    Investment realestate
    Fixed assets                                      569,720,809.77                    585,754,900.75
    Project underconstruction                              12,735,416.77                     4,839,241.48
    Productive biologicalassets
    Oil andgasasset
    Right-of-use asset
    Intangible assets                                   317,714,806.59                    249,882,429.53
    Development expenditure
    Goodwill                                        332,717,576.86                    306,633,631.93
    Long-term prepaidexpenses                            11,295,458.17                     8,699,236.33
    Deferred incometaxassets                             55,153,179.77                    49,025,021.61
    Other non-currentassets                                1,443,594.59                     2,518,818.56
    Total non-currentassets                             1,398,558,604.71                  1,300,284,794.56
    Total assets                                     6,485,012,563.38                  6,273,516,157.31
    Current liabilities:
    Short-term loan                                     82,888,933.77                    117,888,353.14
    Borrowing fromtheCentralBank
    Borrowed funds
    Transactional financialliabilities                            304,022.63
    Derivative financialliabilities
    Notes payable                                      51,457,356.15                     43,973,859.51
    Accounts payable                                  451,561,359.28                    472,862,744.45
    Advance payment                                                                286,511,724.62
    Contract liabilities                                  442,374,748.64
    Selling backfinancialassets
    Deposits andInterbankdeposit
    Agent tradingsecurities
    Agent underwritingsecurities
    Salary payabletostaffandworkers                        88,359,478.62                    106,677,329.95
    Taxes payable                                      32,072,332.40                     48,928,229.51
    Other payables                                    105,356,789.44                    90,950,443.16
    Of which:interestpayable                              2,426,515.21                     1,410,745.58
    Dividend payable
    Fees andcommissions
    Reinsurance accountspayable
    Holding liabilitiesforsale
    Non-current liabilitiesduewithinone                      491,320,129.60                    353,399,238.29
    year
    Other currentliabilities
    Total currentliabilities                              1,745,695,150.53                  1,521,191,922.63
    Non-current liabilities:
    Insurance contractreserve
    Long termloan                                     49,092,928.25                    224,146,667.48
    Bonds payable
    Of which:preferredstock
    Perpetual debt
    Lease liability
    Long-term payables
    Long-term salarypayabletostaffand                      17,938,177.86                     12,252,657.36
    workers
    Estimated liabilities                                  98,094,210.40                     78,650,466.48
    Deferred income                                    17,568,648.59                    18,275,808.90
    Deferred incometaxliabilities                           13,919,737.18                    16,915,692.91
    Other non-currentliabilities
    Total non-currentliabilities                            196,613,702.28                    350,241,293.13
    Total Liabilities                                   1,942,308,852.81                  1,871,433,215.76
    Owners' equity:
    Share capital                                    1,545,126,957.00                  1,838,647,096.00
    Other equityinstruments
    Of which:preferredstock
    Perpetual debt
    Capital reserve                                   4,085,401,043.51                  3,862,377,838.84
    Minus: treasuryshares                                79,406,925.60                    160,088,925.60
    Other comprehensiveincome                            28,922,999.01                    24,971,085.32
    Special reserves
    Surplus reserve                                     51,830,974.45                    51,830,974.45
    General riskpreparation
    undistributed profit                                -1,153,474,999.05                  -1,280,673,461.14
    Total equityattributabletoownersof                     4,478,400,049.32                  4,337,064,607.87
    parent company
    Minority shareholderinterest                            64,303,661.25                    65,018,333.68
    Total owner'sequity                                4,542,703,710.57                  4,402,082,941.55
    Total LiabilitiesandOwner'sEquity                     6,485,012,563.38                  6,273,516,157.31
    
    
    Legal representative: Tang Zhuolin Chief in charge of accounting work: Qiu Yezhi Head of accounting institution: Qiu Yezhi
    
    2.Parent Company Balance Sheet
    
    Unit: yuan
    
                Item                      June30,2020                   December31,2019
    Current assets:
    Monetary funds                                   1,501,340,503.96                  1,899,380,375.38
    Transactional financialassets                          1,493,417,186.84                  1,163,000,000.00
    Derivative financialassets
    Notes receivable
    Accounts receivable                                 111,962,124.93                    151,096,214.10
    Receivable financing                                 37,585,033.47                     51,139,322.12
    Advance payment                                    4,221,561.72                     3,233,763.27
    Other receivables                                   47,847,407.67                     36,670,496.12
    Of which:interestreceivable                             1,694,150.03
    Dividend receivable                                  12,264,643.27
    Inventory                                        131,753,806.72                    111,225,290.10
    Contract assets
    Holding assetsforsale
    Non currentassetsduewithinoneyear                                                      356,983.48
    Other currentassets                                  89,518,896.49                     4,961,417.06
    Total currentassets                                3,417,646,521.80                  3,421,063,861.63
    Non-current assets:
    Debt investment
    Other debtinvestments
    Long-term receivables
    Long-term equityinvestment                           449,097,520.04                    439,638,782.00
    Investment inotherequityinstruments
    Other non-currentfinancialassets
    Investment realestate
    Fixed assets                                      333,420,698.22                    340,791,611.76
    Project underconstruction                                211,656.67                       83,070.80
    Productive biologicalassets
    Oil andgasassets
    Right-of-use assets
    Intangible assets                                    59,435,044.45                     60,733,612.10
    Development expenditure
    Goodwill
    Long-term prepaidexpenses                             3,140,484.58                     3,335,014.92
    Deferred incometaxassets                              6,190,965.18                     4,923,465.18
    Other non-currentassets                                 585,189.00                       585,189.00
    Total non-currentassets                               852,081,558.14                    850,090,745.76
    Total assets                                     4,269,728,079.94                  4,271,154,607.39
    Current liabilities:
    Short-term loan                                                                   90,000,000.00
    Transactional financialliabilities
    Derivative financialliabilities
    Notes payable                                      42,427,217.57                     43,843,859.51
    Accounts payable                                   67,256,660.67                     70,687,704.41
    Advance payment                                                                 17,451,789.10
    Contract liabilities                                   30,598,160.14
    Salary payabletostaffandworkers                        12,411,500.40                    26,144,254.56
    Taxes payable                                       3,750,126.46                     1,921,575.57
    Other payables                                     55,517,138.57                     50,214,415.95
    Of which:interestpayable
    Dividend payable
    Holding liabilitiesforsale
    Non-current liabilitiesduewithinone
    year
    Other currentliabilities
    Total currentliabilities                               211,960,803.81                    300,263,599.10
    Non-current liabilities:
    Long-term loan
    Bonds payable
    Of which:preferredstock
    Perpetual debt
    Lease liability
    Long-term payable
    Long-term salarypayabletostaffand
    workers
    Estimated liability
    Deferred income                                    13,865,301.66                     14,423,631.66
    Deferred incometaxliability
    Other non-currentliabilities
    Total non-currentliabilities                             13,865,301.66                     14,423,631.66
    Total liabilities                                    225,826,105.47                    314,687,230.76
    Owner's equity:
    Share capital                                    1,545,126,957.00                  1,838,647,096.00
    Other equityinstruments
    Of which:preferredstock
    Perpetual debt
    Capital reserve                                   3,831,614,807.09                  3,608,591,602.42
    Minus: treasuryshares                                79,406,925.60                    160,088,925.60
    Other comprehensiveincome
    Special reserve
    Surplus reserve                                     51,830,974.45                    51,830,974.45
    Undistributed profit                               -1,305,263,838.47                  -1,382,513,370.64
    Total owner'sequity                                4,043,901,974.47                  3,956,467,376.63
    Total liabilitiesandowners'equity                      4,269,728,079.94                  4,271,154,607.39
    
    
    3.Consolidated Income Statement
    
    Unit: yuan
    
                 Item             Forthesix-monthperiodendedJune30,   Forthesix-monthperiodendedJune30,
                                             2020                          2019
    1. Totaloperatingincome                            1,177,491,225.13                  4,391,349,294.89
    Of which:operatingincome                           1,177,491,225.13                  4,391,349,294.89
    Interest income
    Premiums earned
    Fee andcommissionincome
    2. Totaloperatingcost                               1,094,590,537.26                  4,126,558,011.79
    Of which:operatingcost.                              841,826,823.84                  3,696,850,553.46
    Interest expense.
    Payment offeesandcommission.
    Surrender fund.
    Net indemnityexpenditure.
    Draw thenetreserveofinsurance
    liability contract.
    Policy dividendexpense.
    Reinsurance cost.
    Taxes andsurcharges.                                  5,688,141.92                    12,523,381.19
    selling expenses.                                    91,295,589.80                   194,155,656.79
    Administrative expenses.                              122,309,575.89                   151,165,409.76
    Research anddevelopmentexpenses.                       35,204,923.99                    58,949,248.90
    Financial expenses.                                   -1,734,518.18                    12,913,761.69
    Of which:interestexpense.                              6,239,583.43                    19,117,767.18
    Interest income.                                     11,409,249.10                    12,761,403.50
    Plus: otherincome.                                   7,097,271.94                     3,531,512.52
    Investment income(losswith"-"sign).                      32,724,984.33                    10,101,832.28
    Of which:thereturnoninvestmentin                         23,671.37                      538,060.82
    collaborative venturesandjointventures.
    Income fromderecognitionoffinancial
    assets measuredatamortisedcost(loss
    with "-"sign).
    Exchange gain(losswith"-"sign).
    Net exposurehedginggain(losswith"-"
    sign).
    Fair valuechangeincome(losswith"-"                     13,309,111.52
    sign).
    Loss ofcreditimpairment(lossislisted                       358,541.25                    -39,443,469.18
    with "-"sign).
    Loss onimpairmentofassets(losswith                      -2,978,396.97                     3,093,106.42
    "-" sign).
    Income fromassetdisposal(losswith"-"                        1,972.08                      -408,669.80
    sign).
    3 Operatingprofit(lossesarelistedwith                    133,414,172.02                   241,665,595.34
    "-" sign).
    Plus: non-operatingincome.                               176,776.93                     9,972,949.51
    Minus: non-operatingexpenses.                           1,464,849.29                     2,600,939.94
    4 Thetotalprofit(thetotallossshallbe                     132,126,099.66                   249,037,604.91
    filled inwiththesign"-").
    Minus: incometaxexpenses.                             5,642,310.00                    65,188,292.02
    5. Netprofit(netlossislistedwith"-"                     126,483,789.66                   183,849,312.89
    sign).
    (1) Classifiedbybusinesssustainability.
    1. Netprofitfromcontinuingoperations
    (net losswith"-"sign).
    2.Net profitfromterminationof
    operation (netlosswith"-"sign).
    (2) Classificationaccordingto
    ownership.
    1.Net profitattributabletotheownerof                     127,198,462.09                   182,391,136.39
    the parentcompany.
    2.Minority shareholders'profitandloss.                       -714,672.43                     1,458,176.50
    6.Net aftertaxofothercomprehensive                       3,951,913.69                      -257,578.17
    income.
    Net aftertaxofothercomprehensive
    income attributabletotheownerofthe                       3,951,913.69                      -257,578.17
    parent company.
    (1) othercomprehensiveincomethat                          65,719.32
    cannot bereclassifiedintoprofitorloss.
    1. Re-measurethechangeinthebenefit                        65,719.32
    plan.
    Other comprehensiveincomethatcannot
    be transferredtoprofitorlossunderthe
    equity method.
    3. Changesinfairvalueofinvestmentsin
    other equityinstruments.
    4. Fairvaluechangeofenterprise'sown
    credit risk.
    5.Other.
    (2) Othercomprehensiveincome                          3,886,194.37                      -257,578.17
    reclassified intoprofitorloss.
    1. Othercomprehensiveincomethatcan
    be transferredtoprofitorlossunderthe
    equity method.
    2.Changes infairvalueofotherdebt
    investments.
    3.The amountoffinancialassets
    reclassified toothercomprehensive
    income.
    4.Provision forcreditimpairmentofother
    debt investments.
    5.Cash flowhedgingreserve.
    6.Translation differenceofforeign                         3,886,194.37                      -257,578.17
    currency financialstatements.
    7.Other.
    Net aftertaxofotherconsolidated
    income attributabletominority
    shareholders.
    7 Totalcomprehensiveincome.                          130,435,703.35                   183,591,734.72
    Total consolidatedincomeattributableto                    131,150,375.78                   182,133,558.22
    the owneroftheparentcompany.
    Total consolidatedincomeattributableto                      -714,672.43                     1,458,176.50
    minority shareholders.
    8. Earningspershare:
    (1) Basicearningspershare.                                   0.08                           0.10
    (2) Dilutedearningspershare                                  0.08                           0.10
    
    
    In the case of a business merger under the same control in the current period, the net profit realized by the merged party before the
    
    merger is: yuan, and the net profit realized by the merged party in the previous period is: yuan.
    
    Legal representative: Tang Zhuolin chief in charge of accounting work: Qiu Yizhi head of accounting institution: Qiu Yizhi
    
    4. Parent company profit statement
    
    Unit: yuan
    
                Item              Forthesix-monthperiodendedJune30,   Forthesix-monthperiodendedJune30,
                                            2020                           2019
    I. Operatingincome                                 159,641,747.94                    145,408,081.79
    Minus: operatingcost                                 94,695,220.31                    95,186,297.55
    Taxes andsurcharges                                  3,903,443.82                     3,143,128.47
    Selling expenses                                    10,202,503.51                     11,185,492.45
    Administrative expenses                               40,321,247.10                    39,890,833.58
    Research anddevelopmentexpenses                        9,543,406.45                     6,236,439.17
    Financial expenses                                   -4,909,234.03                     -5,002,130.56
    Of which:interestexpense                                897,594.00                     3,750,363.67
    Interest income                                      6,338,571.34                     9,146,694.77
    Plus: otherincome                                    4,597,985.41                     2,637,630.00
    Investment income(losswith"-"sign)                      51,493,566.58                     9,507,895.91
    Of which:thereturnoninvestmentin
    collaborative venturesandjoint                             23,671.37                       551,059.52
    ventures
    Terminationofrecognitionofgainson
    financial assetsmeasuredatamortised
    cost (losswith"-"sign)
    Net exposurehedginggain(losswith
    "-" sign)
    Fair valuechangeincome(losswith"-"                     13,417,186.84
    sign)
    Loss ofcreditimpairment(lossislisted                     -1,857,481.56                       519,758.39
    with "-"sign)
    Loss onimpairmentofassets(losswith
    "-" sign)
    Income fromassetdisposal(losswith                                                        2,981.92
    "-" sign)
    2. Operatingprofit(lossshallbelisted                      77,251,381.17                     7,436,287.35
    with "-"sign)
    Plus: non-operatingincome                                 4,447.22                       79,137.45
    Minus: non-operatingexpenses                           1,273,796.22                       683,006.13
    3. Thetotalprofit(thetotallossshallbe                     75,982,032.17                     6,832,418.67
    filled inwiththesign"-")
    Minus: incometaxexpenses                             -1,267,500.00                     1,398,230.98
    4. Netprofit(netlossislistedwith"-"                      77,249,532.17                     5,434,187.69
    sign)
    (1) Netprofitfromcontinuingoperation
    (net losswith"-"sign)
    (2) Netprofitfromterminationof
    operation (netlosswith"-"sign)
    5. Netaftertaxofothercomprehensive
    income
    (1) Othercomprehensiveincomethat
    cannot bereclassifiedintoprofitorloss
    1. Re-measurethechangeinthebenefit
    plan
    2 Othercomprehensiveincomethat
    cannot betransferredtoprofitorloss
    under theequitymethod
    3. Changesinfairvalueofinvestments
    in otherequityinstruments
    4. Fairvaluechangeofenterprise'sown
    credit risk
    5. Other
    (2) othercomprehensiveincome
    reclassified intoprofitorloss
    1. Othercomprehensiveincomethatcan
    be transferredtoprofitorlossunderthe
    equity method
    2 Changesinfairvalueofotherdebt
    investments
    3.The amountoffinancialassets
    reclassified toothercomprehensive
    income.
    4.Provision forcreditimpairmentof
    other debtinvestments.
    5.Cash flowhedgingreserve.
    6.Translation differenceofforeign
    currency financialstatements.
    7.Other.
    6. Totalcomprehensiveincome                           77,249,532.17                     5,434,187.69
    7. Earningspershare:
    (1) Basicearningspershare
    (2) Dilutedearningspershare
    
    
    5. Consolidated statement of cash flows
    
    Unit: yuan
    
                Item              Forthesix-monthperiodendedJune30,   Forthesix-monthperiodendedJune30,
                                            2020                           2019
    Cash flowgeneratedbybusiness
    activities:
    Cash receivedfromthesaleofgoods                     1,418,765,853.87                  3,594,432,732.45
    and theprovisionofservices.
    Net increaseincustomerdepositsand
    interbank deposits.
    Net increaseinborrowingfromthe
    central bank.
    Net increaseinfundstransferredto
    other financialinstitutions.
    Cash receivedfromthepremiumofthe
    original insurancecontract.
    Net cashreceivedfromreinsurance
    business.
    Net increaseindepositors'depositsand
    investment funds.
    Cash thatcollectsinterest,commission
    and commission.
    Net increaseinborrowedfunds.
    Net increaseinfundsforrepurchase
    business.
    Net cashreceivedbyagentsbuyingand
    selling securities.
    Tax refundreceived.                                 19,045,479.18                     25,568,755.13
    Receipt ofothercashrelatedtobusiness                     31,236,687.94                     21,351,600.88
    activities.
    Subtotal cashinflowsfromoperating                     1,469,048,020.99                  3,641,353,088.46
    activities.
    Cash paidforthepurchaseofgoodsand                    926,364,370.99                  1,331,701,848.31
    services.
    Net increaseincustomerloansand
    advances.
    Net increaseincentralbankand
    interbank deposits.
    Cash topaytheindemnityofthe
    original insurancecontract.
    Net increaseinloanfunds
    Cash forthepaymentofinterest,fees
    and commissions.
    Cash forthepaymentofpolicy
    dividends.
    Cash paidtoandforemployees.                         245,758,501.22                    322,880,132.50
    Taxes andfeespaid.                                  48,319,826.97                    414,487,266.58
    Payment ofothercashrelatedto                         219,195,912.49                    153,043,089.10
    business activities.
    Subtotal cashoutflowfromoperating                     1,439,638,611.67                  2,222,112,336.49
    activities.
    Net cashflowfromoperatingactivities.                     29,409,409.32                  1,419,240,751.97
    2. Cashflowgeneratedbyinvestment
    activities:
    Recover thecashreceivedfromthe
    investment.
    Cash receivedfrominvestmentincome.                     19,332,320.61                     9,562,419.23
    Net cashrecoveredfromdisposalof
    fixed assets,intangibleassetsandother                                                      40,024.97
    long-term assets.
    Disposal ofnetcashreceivedby
    subsidiaries andotherbusinessunits.
    Receipt ofothercashrelatedto                         4,827,403,841.13                    50,200,000.00
    investment activities.
    Subtotal cashinflowsfrominvestment                    4,846,736,161.74                    59,802,444.20
    activities.
    Cash paidforthepurchaseand
    construction offixedassets,intangible                      86,047,976.06                     23,967,938.26
    assets andotherlong-termassets.
    Cash paidforinvestment.                               1,183,245.00
    Net increaseinpledgedloans.
    Obtain netcashpaidbysubsidiariesand                                                   93,914,557.59
    other businessunits.
    Payment ofothercashrelatedto                        5,144,300,000.00                    790,000,000.00
    investment activities.
    Subtotal cashoutflowfrominvestment                    5,231,531,221.06                    907,882,495.85
    activities.
    Net cashflowfrominvestment                         -384,795,059.32                   -848,080,051.65
    activities.
    3 Cashflowgeneratedbyfund-raising
    activities:
    Absorb thecashreceivedbythe                          22,600,000.00
    investment.
    Of which:thesubsidiaryabsorbsthe
    cash receivedfromtheinvestmentof
    minority shareholders.
    Cash receivedforobtainingloans.                         75,707,759.83                     22,328,668.37
    Receipt ofothercashrelatedto                                                         45,300,545.99
    fund-raising activities.
    Subtotal cashinflowsfromfund-raising                     98,307,759.83                     67,629,214.36
    activities.
    Cash paidtorepaydebts.                              159,171,545.53                    238,056,448.42
    Cash paidforthedistributionof                           6,453,887.85                     7,315,528.05
    dividends, profits,orinterestpayments.
    Of which:dividendsandprofitspaidby
    subsidiaries tominorityshareholders.
    Payment ofothercashrelatedto                         290,000,000.00                  1,388,396,306.96
    fund-raising activities.
    Subtotal cashoutflowfromfund-raising                    455,625,433.38                  1,633,768,283.43
    activities.
    Net cashflowfromfund-raising                         -357,317,673.55                  -1,566,139,069.07
    activities.
    4. Theimpactofexchangeratechanges                      4,994,436.04                     9,209,649.16
    on cashandcashequivalents.
    5.Net increaseincashandcash                         -707,708,887.51                   -985,768,719.59
    equivalents.
    Plus: balanceofcashandcash
    equivalents atthebeginningofthe                      2,226,724,737.39                  2,057,997,442.35
    period.
    6 Balanceofcashandcashequivalents                   1,519,015,849.88                  1,072,228,722.76
    at theendoftheperiod
    
    
    6.Parent company cash flow statement
    
    Unit: yuan
    
                Item              Forthesix-monthperiodendedJune30,   Forthesix-monthperiodendedJune30,
                                            2020                           2019
    Cash flowgeneratedbybusiness
    activities:
    Cash receivedfromthesaleofgoods                      235,170,271.11                    214,123,219.27
    and theprovisionofservices.
    Tax refundreceived.                                  6,177,627.73                     11,554,453.18
    Receipt ofothercashrelatedtobusiness                     12,900,250.98                     8,038,370.68
    activities.
    Subtotal cashinflowsfromoperating                      254,248,149.82                    233,716,043.13
    activities.
    Cash paidforthepurchaseofgoodsand                    108,542,176.20                    138,894,321.46
    services.
    Cash paidtoandforemployees.                          64,093,135.32                    48,334,304.16
    Taxes andfeespaid.                                   5,071,412.19                    10,335,422.77
    Payment ofothercashrelatedto                         111,289,069.98                    33,963,558.43
    business activities.
    Subtotal cashoutflowfromoperating                      288,995,793.69                    231,527,606.82
    activities.
    Net cashflowfromoperatingactivities.                    -34,747,643.87                     2,188,436.31
    2. Cashflowgeneratedbyinvestment
    activities:
    Recover thecashreceivedfromthe
    investment.
    Cash receivedfrominvestmentincome.                     25,936,359.29                     8,956,836.39
    Net cashrecoveredfromdisposalof
    fixed assets,intangibleassetsandother
    long-term assets.
    Disposal ofnetcashreceivedby
    subsidiaries andotherbusinessunits.
    Receipt ofothercashrelatedto                         4,783,300,000.00                      200,000.00
    investment activities.
    Subtotal cashinflowsfrominvestment                    4,809,236,359.29                     9,156,836.39
    activities.
    Cash paidforthepurchaseand
    construction offixedassets,intangible                       1,144,384.43                     5,062,235.32
    assets andotherlong-termassets.
    Cash paidforinvestment.
    Obtain netcashpaidbysubsidiariesand
    other businessunits.
    Payment ofothercashrelatedto                        5,100,300,000.00                    770,000,000.00
    investment activities.
    Subtotal cashoutflowfrominvestment                    5,101,444,384.43                    775,062,235.32
    activities.
    Net cashflowfrominvestment                         -292,208,025.14                   -765,905,398.93
    activities.
    3. Cashflowgeneratedbyfund-raising
    activities:
    Absorb thecashreceivedbythe                          22,600,000.00
    investment.
    Cash receivedforobtainingloans.
    Receipt ofothercashrelatedto
    fund-raising activities.
    Subtotal cashinflowsfromfund-raising                     22,600,000.00
    activities.
    Cash paidtorepaydebts.                               90,000,000.00                    50,000,000.00
    Cash paidforthedistributionof                            897,594.00                     3,308,616.65
    dividends, profits,orinterestpayments.
    Payment ofothercashrelatedto                         290,000,000.00                    74,544,106.96
    fund-raising activities.
    Subtotal cashoutflowfromfund-raising                    380,897,594.00                    127,852,723.61
    activities.
    Net cashflowfromfund-raising                         -358,297,594.00                   -127,852,723.61
    activities.
    4. Theimpactofexchangeratechanges                       -564,662.47
    on cashandcashequivalents.
    5.Net increaseincashandcash                         -685,817,925.48                   -891,569,686.23
    equivalents.
    Plus: balanceofcashandcash
    equivalents atthebeginningofthe                      1,770,491,895.62                  1,432,283,149.36
    period.
    6. Balanceofcashandcashequivalents                   1,084,673,970.14                    540,713,463.13
    at theendoftheperiod
    
    
    7.Consolidated statement of changes in owners' equity
    
    Current amount
    
    Unit: yuan
    
                                                         For thesix-monthperiodendedJune30,2020
                                              Belongtotheowner'sequityoftheparentcompany
                           Otherequity
                           instruments                                                                               Minority
       Item                                         Minus:     Other   Speci          General                          shareholder Totalowner's
                        Preferr             Capital                       al    Surplus    risk   Undistributed Othe
              Sharecapital       Perpetu Othe   reserve     treasury  comprehensi reserv  reserve  preparati    profit     r    Intotal   s'rightsand    equity
                          ed                        shares    veincome                                                interests
                              aldebt  r                                e             on
                         stock
    I.The
    balance at  1,838,647,096.                3,862,377,838. 160,088,925. 24,971,085.     51,830,974.        -1,280,673,461    4,337,064,607. 65,018,333.4,402,082,941.
    the endof           00                        84        60       32            45                .14            87       68         55
    last year
        Plus:
    accounting
    policy
    change
      Prophase
    error
    correction
      Business
    merger
    under the
    same control
    other
    2 Balanceat
    the       1,838,647,096.                3,862,377,838. 160,088,925. 24,971,085.     51,830,974.        -1,280,673,461    4,337,064,607. 65,018,333.4,402,082,941.
    beginning of         00                        84        60       32            45                .14            87       68         55
    the current
    year
    3 The
    amount of
    change in   -293,520,139.                223,023,204.6 -80,682,000. 3,951,913.6                                    141,335,441.4         140,620,769.0
    the current          00                         7        00        9                     127,198,462.09             5 -714,672.43         2
    period (tobe
    filled inwith
    the sign"-")
    (I) Total                                                  3,951,913.6                                    131,150,375.7         130,435,703.3
    consolidated                                                      9                     127,198,462.09             8 -714,672.43         5
    income
    (2) Owners'
    investment   -293,520,139.                223,023,204.6 -80,682,000.
    and               00                         7        00                                             10,185,065.67         10,185,065.67
    reduction of
    capital
    1. Common
    stock
    invested by
    the owner
    2.Capital
    invested by
    holders of
    other equity
    instruments
    3.The
    amount of
    share                                -70,496,933.3 -80,682,000.
    payment                                      3        00                                             10,185,066.67         10,185,066.67
    included in
    the owner's
    equity
    4.Other    -293,520,139.                293,520,138.0                                                            -1.00               -1.00
                      00                        0
    (3) Profit
    distribution
    1. Draw
    surplus
    reserve
    2. Extract
    general risk
    preparednes
    s
    3. Allocation
    to owners
    (or
    shareholders
    )
    4.Other
    (4) Internal
    carry-over
    of owners'
    rights and
    interests
    1. Capital
    reserve to
    increase
    capital (or
    equity)
    2. Transfer
    of surplus
    reserve to
    capital (or
    equity)
    3. Surplus
    reserve to
    make upfor
    losses
    4. Setthe
    amount of
    changes in
    the benefit
    plan tocarry
    forward
    retained
    earnings
    5. Other
    comprehensi
    ve income
    carried
    forward
    retained
    earnings
    6.Other
    (5) Special
    reserve
    1. Current
    extraction
    2. Current
    use
    (6) Other
    4. The
    balance at  1,545,126,957.                4,085,401,043. 79,406,925.6 28,922,999.     51,830,974.        -1,153,474,999    4,478,400,049. 64,303,661.4,542,703,710.
    the endof           00                        51        0       01            45                .05            32       25         57
    the current
    period
    
    
    Previous period amount
    
    Unit: yuan
    
                                                         For thesix-monthperiodendedJune30,2019
       Item                                    Belongtotheowner'sequityoftheparentcompany                                  Minority  Totalowner's
              Sharecapital    Otherequity      Capital     Minus:     Other   Speci  Surplus   General  Undistributed Othe   Intotal   shareholder    equity
                           instruments       reserve     treasury  comprehensi  al    reserve    risk      profit     r            s'rightsand
                        Preferr Perpetu Othe             shares    veincome reserv         preparati                           interests
                         ed   aldebt  r                                e             on
                        stock
    I. The
    balanceat  1,838,647,096.                5,298,075,978. 63,597,455.7 20,300,909.     51,830,974.       -3,118,692,266.    4,026,565,236. 5,667,911.14,032,233,147.
    the endof           00                        80        5       34            45                64            20        1         31
    last year
    Plus:
    accounting
    policy
    change
    Prophase
    error
    correction
    Business
    merger
    under the
    same control
    other
    2 Balanceat
    the       1,838,647,096.                5,298,075,978. 63,597,455.7 20,300,909.     51,830,974.       -3,118,692,266.    4,026,565,236. 5,667,911.14,032,233,147.
    beginning of         00                        80        5       34            45                64            20        1         31
    the current
    year
    3 The
    amount of                            24,876,033.54 73,333,814.7 -257,578.17                     182,391,136.39     133,675,776.9 57,747,087. 191,422,864.4
    change in                                               9                                                     7       52          9
    the current
    period (tobe
    filled inwith
    the sign"-")
    (I) Total                                                                                             182,133,558.2 1,458,176.5 183,591,734.7
    consolidated                                               -257,578.17                     182,391,136.39             2        0          2
    income
    (2) Owners'
    investment                                      73,333,814.7                                             -73,348,481.6 56,648,001. -16,700,480.5
    and                                   -14,666.82        9                                                     1       09          2
    reduction of
    capital
    1. Common
    stock
    invested by
    the owner
    2.Capital
    invested by
    holders of
    other equity
    instruments
    3.The
    amount of
    share
    payment
    included in
    the owner's
    equity
    4.Other                               -14,666.82 73,333,814.7                                             -73,348,481.6 56,648,001. -16,700,480.5
                                                         9                                                      1       09          2
    (3) Profit
    distribution
    1. Draw
    surplus
    reserve
    2. Extract
    general risk
    preparednes
    s
    3. Allocation
    to owners
    (or
    shareholders
    )
    4.Other
    (4) Internal
    carry-over
    of owners'
    rights and
    interests
    1. Capital
    reserve to
    increase
    capital (or
    equity)
    2. Transfer
    of surplus
    reserve to
    capital (or
    equity)
    3. Surplus
    reserve to
    make upfor
    losses
    4. Setthe
    amount of
    changes in
    the benefit
    plan tocarry
    forward
    retained
    earnings
    5. Other
    comprehensi
    ve income
    carried
    forward
    retained
    earnings
    6.Other
    (5) Special
    reserve
    1. Current
    extraction
    2. Current
    use
    (6) Other                             24,890,700.36                                                      24,890,700.36 -359,090.07 24,531,610.29
    4.The
    balance at  1,838,647,096.                5,322,952,012. 136,931,270. 20,043,331.     51,830,974.        -2,936,301,130    4,160,241,013. 63,414,998. 4,223,656,011.
    the endof           00                        34        54       17            45                .25            17       63         80
    the current
    period
    
    
    8.Statement of changes in owners' equity of the parent company
    
    Current amount
    
    Unit: yuan
    
                                                            For thesix-monthperiodendedJune30,2020
          Item                   Otherequityinstruments                Minus:      Other     Special    Surplus    Undistributed           Totalowner's
                     Sharecapital  PreferredPerpetual      Capitalreserve            comprehensive                                Other
                                 stock   debt  Other             treasuryshares   income    reserve    reserve       profit                equity
    I. Thebalanceatthe  1,838,647,096.00                  3,608,591,602.42160,088,925.60                  51,830,974.45-1,382,513,370.64        3,956,467,376.63
    end oflastyear
    Plus: accounting
    policy change
    Prophase error
    correction
    Other
    2 Balanceatthe
    beginning ofthe     1,838,647,096.00                  3,608,591,602.42160,088,925.60                  51,830,974.45-1,382,513,370.64        3,956,467,376.63
    current year
    3 Theamountof
    change inthecurrent  -293,520,139.00                   223,023,204.67 -80,682,000.00                               77,249,532.17          87,434,597.84
    period (tobefilledin
    with thesign"-")
    (1) Totalconsolidated                                                                                    77,249,532.17          77,249,532.17
    income
    (2) Owners'
    investment and      -293,520,139.00                   223,023,204.67 -80,682,000.00                                                  10,185,065.67
    reduction ofcapital
    1. Commonstock
    invested bytheowner
    2. Capitalinvestedby
    holders ofother
    equity instruments
    3. Theamountof
    share payment                                     -70,496,933.33 -80,682,000.00                                                  10,185,066.67
    included inthe
    owner's equity
    4.Other          -293,520,139.00                   293,520,138.00                                                                   -1.00
    (3) Profitdistribution
    1. Drawsurplus
    reserve
    2. Allocationto
    owners (or
    shareholders)
    3.Other
    (4) Internalcarry-over
    of owners'rightsand
    interests
    1. Capitalreserveto
    increase capital(or
    equity)
    2. Transferofsurplus
    reserve tocapital(or
    equity)
    3. Surplusreserveto
    make upforlosses
    4. Settheamountof
    changes inthebenefit
    plan tocarryforward
    retained earnings
    5. Other
    comprehensive
    income carried
    forward retained
    earnings
    6.Other
    (5) Specialreserve
    1. Currentextraction
    2. Currentuse
    (6) Other
    4 Thebalanceatthe
    end ofthecurrent    1,545,126,957.00                  3,831,614,807.09 79,406,925.60                  51,830,974.45-1,305,263,838.47        4,043,901,974.47
    period
    
    
    Previous period amount
    
    Unit: yuan
    
                                                            Forthesix-monthperiodendedJune30,2019
          Item                  Otherequityinstruments                Minus:      Other     Special    Surplus    Undistributed            Totalowner's
                    Sharecapital  PreferredPerpetual     Capitalreserve            comprehensive                                 Other
                                stock   debt  Other             treasuryshares   income    reserve    reserve       profit                 equity
    I. Thebalanceatthe 1,838,647,096.00                  5,055,665,185.99 63,597,455.75                   51,830,974.45-3,502,634,972.72         3,379,910,827.97
    end oflastyear
    Plus: accounting
    policy change
    Prophase error
    correction
    Other
    2 Balanceatthe
    beginning ofthe   1,838,647,096.00                  5,055,665,185.99 63,597,455.75                   51,830,974.45-3,502,634,972.72         3,379,910,827.97
    current year
    3 Theamountof
    change inthe
    current period(tobe                                   -14,666.82 73,333,814.79                                5,434,187.69          -67,914,293.92
    filled inwiththe
    sign "-")
    (1) Total                                                                                            5,434,187.69            5,434,187.69
    consolidated income
    (2) owners'                                         -14,666.82 73,333,814.79                                                   -73,348,481.61
    investment and
    reduction ofcapital
    1. Commonstock
    invested bythe
    owner
    2. Capitalinvested
    by holdersofother
    equity instruments
    3. Theamountof
    share payment
    included inthe
    owner's equity
    4.Other                                          -14,666.82 73,333,814.79                                                    73,319,147.97
    Profit distribution
    1. Drawsurplus
    reserve
    2. Allocationto
    owners (or
    shareholders)
    3.Other
    (4)Internal
    carry-over of
    owners' rightsand
    interests
    1. Capitalreserveto
    increase capital(or
    equity)
    2.Transfer of
    surplus reserveto
    capital (orequity)
    3. Surplusreserveto
    make upforlosses
    4. Settheamountof
    changes inthe
    benefit plantocarry
    forward retained
    earnings
    5.Other
    comprehensive
    income carried
    forward retained
    earnings
    6.Other
    (5) Specialreserve
    1. Current
    extraction
    2. Currentuse
    (6) other
    4 Thebalanceatthe
    end ofthecurrent  1,838,647,096.00                  5,055,650,519.17136,931,270.54                   51,830,974.45-3,497,200,785.03         3,311,996,534.05
    period
    
    
    III. Basic information of the company
    
    Guangdong Dongfang Precision Science& Technology Co., Ltd. (hereinafter referred to as "the Company" or
    
    “Company"), formerly known as Nanhai Dongfang Carton Machinery Industry Co., Ltd., was established on
    
    December 9, 1996. and obtained the registration number 440682000040868 "Enterprise Legal Person Business
    
    License". With the approval of the Securities Regulatory Commission of China Securities Regulatory
    
    Commission [2011] No. 1237 on Approval of the initial Public offering of Guangdong Dongfang Precision
    
    Science&Technology Co., Ltd., the Company issued RMB common stock shares to the public and was listed on
    
    the Shenzhen Stock Exchange in August 2011. Since 2016, the company has adopted the unified social credit
    
    code: 914406002318313119.
    
    The company belongs to the manufacturing industry-special equipment manufacturing industry.
    
    In January 2020, the Company repurchased and cancelled a total of 293,520,139 shares of performance
    
    compensation shares undertaken by Pride's original shareholders. After the completion of the implementation, the
    
    total share capital of the company was changed from 1,838,647,096 shares to 1,545,126,957 shares. As of June 30,
    
    2020, the Company has issued a total of 1,545,126,957 shares. Registration address: No. 2 Qiangshi Road,
    
    Shishan Town, Nanhai District, Foshan City, Foshan City, Guangdong Province (Office Building, Factory A, B),
    
    Headquarter address: No. 2 Qiangshi Road, Shishan Town, Nanhai District, Foshan City, Guangdong Province.
    
    The company's main business scope is: processing, manufacturing, sales: carton printing presses and accessories,
    
    general machinery and accessories, providing after-sales services, brokerage services, technical consulting
    
    services, installation services; import and export of goods, technology import and export (except for projects
    
    prohibited by laws and administrative regulations; projects restricted by laws and administrative regulations must
    
    obtain permission before operating).
    
    The actual control of the company is Tang Zhuolin and Tang Zhuomian.
    
    This financial statement has been approved by all the directors of the company on August 27, 2020.
    
    As of 30 June, 2020, the subsidiaries within the scope of the consolidated financial statements of the Company are
    
    as follows:
    
                                          Subsidiary name
    DongfangPrecision(HongKong)Co.,Ltd.(hereinafterreferredtoas"DongfangPrecision(HongKong)").
    DongFangPrecision(Netherland)CooperatiefU.A.(hereinafterreferredtoas"DongfangPrecision(Netherlands)")
    GuangdongFossbergIntelligentequipmentCo.,Ltd.(hereinafterreferredtoas"FosberAsia").
    SuzhouShunyiInvestmentCo.,Ltd.(hereinafterreferredtoas"ShunyiInvestment").
    
    
    As of 30 June 2020, the subsidiaries indirectly held by the Company within the consolidated financial statements
    
    are as follows:
    
    Nameofsubsidiaryindirectlyheld.
    FosberS.p.A.(hereinafterreferredtoas"FosberGroup").
    FosberAmerica,Inc.(hereinafterreferredtoas"FosberUSA").
    Fosber(Machinery)TianjinCo.,Ltd.(hereinafterreferredtoas"FosberTianjin").
    SuzhouParsunPowerMachineryCo.,Ltd.(hereinafterreferredtoas"ParsunPower").
    EDFEUROPES.R.L(hereinafterreferredtoas"ItalyEDF").
    TirunaGroupIndustrial,S.L.(hereinafterreferredtoas"TirunaGroup").
    TirunaS.L.U.
    TratatamientosIndustrialesTirunaS.A.U.
    TirunaBrazil
    TirunaFranceSARL
    SCICandan
    TirunaUKLtd
    GuangdongTiruna
    TirunaAmericainc.(hereinafterreferredtoas"TirunaUSA")
    QuantumCorrugatedS.r.l.(hereinafterreferredtoas"ItalyQCorr").
    
    
    The scope and changes of the consolidated financial statements for the current period are detailed in this note
    
    "VIII. Changes in the consolidated scope" and "IX. Interests in other subjects".
    
    IV. The basis for the preparation of financial statements.
    
    1. The basis of preparation
    
    On the basis of continuous operation, according to the actual transactions and events, in accordance with the
    
    Accounting Standards for Enterprises-Basic Standards issued by the Ministry of Finance and various specific
    
    accounting standards, guidelines for the application of accounting standards for enterprises, interpretation of
    
    accounting standards for enterprises and other relevant provisions (hereinafter collectively referred to as
    
    "accounting standards for enterprises"), And the disclosure provisions of the China Securities Regulatory
    
    Commission Rules No. 15 on Information Disclosure of Companies Issuing Securities Publicly-General Provisions
    
    on Financial Reports for the preparation of financial statements.
    
    2. Continuous operation.
    
    There are no matters affecting the continuing operation ability of the Company, and it is expected that the Company
    
    will have the continuing operation ability in the next 12 months. The financial statements of the Company are
    
    prepared on the basis of the continuing operation assumption.
    
    V Important accounting policies and accounting estimates.
    
    Tips for specific accounting policies and accounting estimates:
    
    The following disclosures have covered the specific accounting policies and accounting estimates formulated by the
    
    Company according to the characteristics of actual production and operation. See "V (25) Income" in this note for
    
    details.
    
    1. Declaration of compliance with accounting standards for enterprises
    
    The financial statements prepared by the company meet the requirements of enterprise accounting standards and
    
    truly and completely reflect the company's financial situation, operating results, cash flow and other relevant
    
    information during the reporting period.
    
    2. Accounting period.
    
    It is a fiscal year from January 1 to December 31 of the Gregorian calendar.
    
    3. Business cycle.
    
    The business cycle of our company is 12 months.
    
    4. Bookkeeping standard currency
    
    Companyname                                                        Bookkeepingstandardcurrency
    FosberGroup                                                          EURO
    FosberUS                                                            USDOLLARS
    DongfangPrecision(Hongkong)                                             USDOLLARS
    DongfangPrecision(Netherland)                                             EURO
    ItalyEDF                                                            EURO
    TirunaGroup                                                          EURO
    TirunaS.L.U.                                                          EURO
    TratatamientosIndustrialesTirunaS.A.U.                                       EURO
    TirunaBrazil                                                          Real
    TirunaFranceSARL                                                     EURO
    SCICandan                                                           EURO
    TirunaUKLtd                                                         BritishPound
    TirunaUS                                                            USDOLLARS
    ItalyQCorr                                                           EURO
    
    
    5. The accounting treatment of business combination under the same control and non-same control.
    
    Business merger under the same control: the assets and liabilities acquired by the merging party in the business
    
    combination shall be measured according to the book value of the assets and liabilities of the merged party
    
    (including the goodwill formed by the acquisition of the merged party by the ultimate controlling party) in the
    
    consolidated financial statements of the ultimate controlling party on the merger date. The difference between the
    
    book value of the net assets obtained in the merger and the book value of the consolidated consideration paid (or the
    
    total par value of the shares issued) shall be adjusted, the equity premium in the capital reserve shall be adjusted, and
    
    if the equity premium in the capital reserve is insufficient to be offset, the retained earnings shall be adjusted.
    
    Business merger under different control: on the date of purchase, the assets paid and liabilities incurred or assumed
    
    by the purchaser as consideration for the merger shall be measured at fair value, and the difference between the fair
    
    value and its book value shall be recorded into the profits and losses of the current period. The difference of the fair
    
    value share of the identifiable net assets obtained by the purchaser in the merger shall be recognized as goodwill if
    
    the merger cost is greater than the fair value share of the identifiable net assets obtained in the merger; the merger
    
    cost shall be less than the difference in the fair value share of the identifiable net assets acquired in the merger and
    
    shall be recorded in the profits and losses of the current period.
    
    The directly related expenses incurred for the business merger shall be recorded into the profits and losses of the
    
    current period when they occur; the transaction costs for issuing equity securities or debt securities for the enterprise
    
    merger shall be included in the initial recognition amount of the equity securities or debt securities.
    
    6. The method of compiling consolidated financial statements.
    
    1. Merge scope.
    
    The consolidated scope of the consolidated financial statements is determined on the basis of control, which
    
    includes the Company and all subsidiaries.
    
    2. Merge program.
    
    The company prepares consolidated financial statements on the basis of the financial statements of itself and its
    
    subsidiaries and on the basis of other relevant information. The company prepares consolidated financial
    
    statements and regards the entire enterprise group as an accounting entity, in accordance with the recognition,
    
    measurement and presentation requirements of the relevant enterprise accounting standards and in accordance
    
    with unified accounting policies, reflect the overall financial position, operating results and cash flow of the
    
    enterprise group.
    
    If the accounting policies and accounting periods adopted by all subsidiaries included in the consolidated financial
    
    statements are consistent with those of the company, if the accounting policies and accounting periods adopted by
    
    the subsidiaries are inconsistent with those of the company, necessary adjustments shall be made in accordance
    
    with the company's accounting policies and accounting periods when preparing the consolidated financial
    
    statements. For subsidiaries acquired by non-merger under the same control, the financial statements shall be
    
    adjusted on the basis of the fair value of identifiable net assets on the date of purchase. For a subsidiary acquired
    
    by a merger under the same control, the financial statements shall be adjusted on the basis of the book value of its
    
    assets and liabilities (including the goodwill formed by the acquisition of the subsidiary by the ultimate
    
    controlling party) in the financial statements of the ultimate controlling party.
    
    The minority shareholders' shares of subsidiary owners' equity, current net profit and loss and current
    
    comprehensive income are separately shown under the owner's equity item in the consolidated balance sheet,
    
    under the net profit item in the consolidated income statement and under the total comprehensive income item.
    
    The current loss shared by the minority shareholders of the subsidiary exceeds the balance formed by the minority
    
    shareholders' share in the initial owner's equity of the subsidiary, deducting the minority shareholders' rights and
    
    interests.
    
    (1) Increase the number of subsidiaries or businesses.
    
    During the reporting period, if a subsidiary or business is increased as a result of a business merger under the
    
    same control, the beginning of the consolidated balance sheet shall be adjusted, and the income, expenses and
    
    profits of the subsidiary or business combination from the beginning of the current period to the end of the
    
    reporting period shall be included in the consolidated income statement. The cash flow from the beginning of the
    
    current period to the end of the reporting period of the subsidiary or business combination shall be included in the
    
    consolidated cash flow statement, and the relevant items of the comparative statement shall be adjusted as if the
    
    combined report subject has been in existence since the final control party began to control.
    
    If it is possible to control the investee under the same control due to additional investment and other reasons, the
    
    parties involved in the merger shall be deemed to adjust in their current state when the final controlling party
    
    begins to control. For equity investments held prior to the acquisition of control of the merged party, the relevant
    
    profit and loss, other comprehensive income and other changes in net assets have been recognized between the
    
    date of acquisition of the original equity and the date of control of the merged party and the merged party, the
    
    changes in profit and loss, other comprehensive income and other net assets have been offset against the initial
    
    retained earnings or current profits and losses in the comparative statement period, respectively.
    
    During the reporting period, if a subsidiary or business is increased as a result of a merger not under the same
    
    control, the beginning of the consolidated balance sheet period shall not be adjusted; the income, expenses and
    
    profits of the subsidiary or business from the purchase date to the end of the reporting period shall be included in
    
    the consolidated income statement; the cash flow of the subsidiary or business from the purchase date to the end
    
    of the reporting period shall be included in the consolidated cash flow statement.
    
    If it is possible to control the investee who is not under the same control due to additional investment and other
    
    reasons, the company shall re-measure the equity held before the purchase date according to the fair value of the
    
    equity on the purchase date, the difference between the fair value and its book value shall be included in the
    
    investment income of the current period. Where the equity held by the acquiree before the date of purchase
    
    involves changes in other comprehensive income under the equity method and other owners' equity except net
    
    profit and loss, other comprehensive income and profit distribution, the related changes in other comprehensive
    
    income and other owners' equity shall be converted into the investment income of the current period on the date of
    
    purchase, Except for other comprehensive income arising from the re-measurement of net liabilities or changes in
    
    net assets of the benefit plan by the invested party.
    
    (2) Disposal of subsidiaries or businesses.
    
    ①General treatment methods.
    
    If the company disposes of a subsidiary or business during the reporting period, the income, expenses and profits of
    
    the subsidiary or business from the beginning of the business period to the disposal date shall be included in the
    
    consolidated income statement; the cash flow from the beginning of the business period to the disposal date of the
    
    business period shall be included in the consolidated cash flow statement.
    
    When the control over the investee is lost due to the disposal of part of the equity investment or other reasons, the
    
    company shall re-measure the remaining equity investment after disposal according to its fair value at the date of
    
    loss of control. The sum of the consideration obtained from the disposal of the shares and the fair value of the
    
    remaining shares minus the difference between the share of the net assets and the goodwill that should be
    
    continuously calculated by the original subsidiary from the date of purchase or merger, it shall be included in the
    
    investment income of the period in which the control is lost. Other comprehensive income related to the equity
    
    investment of the original subsidiary or other changes in owners' equity except net profit and loss, other
    
    comprehensive income and profit distribution shall be converted into current investment income when control is lost,
    
    with the exception of other comprehensive income arising from the re-measurement of the net liabilities or changes
    
    in net assets of the benefit plan of the invested party.
    
    If the company loses control due to the decrease in the proportion of shares held by the company as a result of the
    
    increase in capital of the subsidiary by other investors, the accounting treatment shall be carried out in accordance
    
    with the above-mentioned.
    
    ② Disposal of subsidiaries step by step.
    
    If the equity investment in a subsidiary is disposed of step by step through multiple transactions until the loss of
    
    control, the terms, conditions and economic impact of the disposal of each transaction in the equity investment of
    
    the subsidiary conform to one or more of the following situations, it is usually indicated that multiple transactions
    
    should be treated as a package of transactions:
    
    I. These transactions are entered into at the same time or taking into account the influence of each other;
    
    II. These transactions as a whole can achieve a complete business result;
    
    III. The occurrence of a transaction depends on the occurrence of at least one other transaction;
    
    Ⅳ. A transaction is uneconomical on its own, but it is economical when it is considered with other transactions.
    
    Where the disposal of each transaction of equity investment in a subsidiary until the loss of control belongs to a
    
    package transaction, the company shall treat each transaction as a transaction of disposal of the subsidiary and loss
    
    of control; However, before the loss of control, the difference between the disposal price and the share of the net
    
    assets of the subsidiary corresponding to the disposal investment shall be recognized as other comprehensive
    
    income in the consolidated financial statements, when the loss of control is transferred to the profit or loss of the
    
    period in which the control is lost.
    
    Where the disposal of all transactions on the equity investment of a subsidiary until the loss of control is not a
    
    package transaction, before the loss of control, accounting treatment shall be carried out according to the relevant
    
    policies of partial disposal of the equity investment of the subsidiary without the loss of control; in the event of loss
    
    of control, accounting treatment shall be carried out in accordance with the general treatment method of disposing of
    
    the subsidiary.
    
    (3) Purchase minority shares in subsidiaries.
    
    The difference between the company's newly acquired long-term equity investment in the purchase of minority
    
    shares and the share of net assets that should be continuously calculated by the subsidiary from the date of purchase
    
    (or merger date), adjust the equity premium in the capital reserve in the consolidated balance sheet, and if the equity
    
    premium in the capital reserve is insufficient to offset, the retained earnings shall be adjusted.
    
    (4) Partial disposal of equity investment in subsidiaries without losing control.
    
    Without losing control, the difference between the disposal price obtained from the partial disposal of the long-term
    
    equity investment in the subsidiary and the disposal of the long-term equity investment corresponds to the share of
    
    the net assets continuously calculated by the subsidiary since the date of purchase or merger, the equity premium in
    
    the capital reserve in the consolidated balance sheet shall be adjusted, and if the equity premium in the capital
    
    reserve is insufficient to be offset, the retained earnings shall be adjusted.
    
    7. Classification of joint venture arrangement and accounting treatment of joint operation.
    
    Joint arrangements are divided into joint operation and joint ventures.
    
    When the company is a joint venture party to the joint venture arrangement, it is a joint operation when it enjoys the
    
    relevant assets and bears the relevant liabilities of the joint venture arrangement.
    
    The company recognizes the following items related to the share of interests in the joint operation, and carries out
    
    accounting treatment in accordance with the provisions of the relevant accounting standards for enterprises:
    
    (1) to recognize the assets held separately by the Company and the assets jointly held according to the share of the
    
    Company;
    
    (2) to recognize the liabilities borne separately by the Company and the liabilities jointly borne according to the
    
    share of the Company;
    
    (3) to recognize the income generated from the sale of the company's share of joint operating output;
    
    (4) to recognize the income generated by the joint operation from the sale of output according to the share of the
    
    company;
    
    (5) to recognize the expenses incurred separately and the expenses incurred by the joint operation according to the
    
    share of the company.
    
    The company's accounting policy on joint venture investment can be found in this note "V (13) Long-term equity
    
    investment".
    
    8. Criteria for determining cash and cash equivalents.
    
    When preparing the statement of cash flows, the cash on hand of the company and the deposits that can be used for
    
    payment at any time shall be recognized as cash. Investments with short term (due within three months from the date
    
    of purchase), strong liquidity, easy to convert into known cash and low risk of value change are identified as cash
    
    equivalents.
    
    9. Conversion of foreign currency business and foreign currency statements.
    
    1. Foreign currency business.
    
    The foreign currency business uses the spot exchange rate on the date of the transaction as the conversion rate to
    
    convert the amount of foreign currency into RMB for bookkeeping.
    
    The balance of foreign currency monetary items on the balance sheet date is converted at the spot exchange rate on
    
    the balance sheet date, and the resulting exchange differences, except for the exchange differences arising from
    
    special foreign currency loans related to the acquisition and construction of assets that meet the capitalization
    
    conditions, shall be recorded into the profits and losses of the current period except for the exchange differences
    
    arising from special foreign currency loans related to the acquisition and construction of assets that meet the
    
    capitalization conditions in accordance with the principle of capitalization of borrowing costs.
    
    2. Conversion of foreign currency financial statements.
    
    The assets and liabilities in the balance sheet shall be converted at the spot exchange rate on the balance sheet date;
    
    except for the "undistributed profit" items, other items shall be converted at the spot exchange rate at the time of
    
    occurrence. The income and expense items in the income statement shall be converted at the spot exchange rate on
    
    the date of the transaction.
    
    When disposing of an overseas operation, the difference in the translation of the foreign currency financial
    
    statements related to the overseas operation shall be transferred from the owner's equity project to the disposal of the
    
    profits and losses of the current period.
    
    10. Financial instruments.
    
    Financial instruments include financial assets, financial liabilities and equity instruments.
    
    1. Classification of financial instruments.
    
    According to the business model of the Company's management of financial assets and the contractual cash flow
    
    characteristics of financial assets, at the time of initial recognition, financial assets are classified as financial assets
    
    measured at amortised cost, financial assets (debt instruments) measured at fair value and their changes included in
    
    other comprehensive income, and financial assets measured at fair value and their changes included in the profits
    
    and losses of the current period.
    
    The business model aims to collect the contract cash flow and the contract cash flow is only the payment of principal
    
    and interest based on the outstanding principal amount, which is classified as financial assets measured at amortised
    
    cost. Where the business model aims to receive both the contractual cash flow and the sale of the financial asset, and
    
    the contractual cash flow is only the payment of principal and interest based on the outstanding principal amount, it
    
    is classified as financial assets (debt instruments) that are measured at fair value and whose changes are included in
    
    other comprehensive income; other financial assets are classified as financial assets measured at fair value and
    
    whose changes are included in the profits and losses of the current period.
    
    For investments in non-transactional equity instruments, the Company determines at the initial recognition whether
    
    they are designated as financial assets (equity instruments) that are measured at fair value and whose changes are
    
    included in other comprehensive income. At the time of initial recognition, in order to eliminate or significantly
    
    reduce accounting mismatch, financial assets can be designated as financial assets measured at fair value and whose
    
    changes are included in the profits and losses of the current period.
    
    At the time of initial recognition, financial liabilities are classified as: financial liabilities measured at fair value and
    
    their changes included in the profits and losses of the current period and financial liabilities measured at amortized
    
    cost.
    
    Financial liabilities that meet one of the following conditions may, at the time of initial measurement, be designated
    
    as financial liabilities measured at fair value and whose changes are included in the profits and losses of the current
    
    period:
    
    1) this designation can eliminate or significantly reduce accounting mismatch.
    
    2) to manage and evaluate the financial liability portfolio or the financial asset and financial liability portfolio on the
    
    basis of fair value in accordance with the enterprise risk management or investment strategy set out in the official
    
    written document, and report to key managers within the enterprise on this basis.
    
    3) the financial liability includes embedded derivatives that need to be split separately.
    
    2. Confirmation basis and Measurement method of Financial Instruments.
    
    (I) Financial assets measured at amortized cost.
    
    Financial assets measured at amortized cost, including notes receivable, accounts receivable, other receivables,
    
    long-term receivables, debt investments, etc., are initially measured at fair value, and the relevant transaction costs
    
    are included in the initial recognition amount; accounts receivable that does not include a significant financing
    
    component and the company decides not to consider accounts receivable with financing components not exceeding
    
    one year shall be initially measured at the contract transaction price.
    
    The interest calculated by the effective interest rate method during the holding period shall be recorded in the profits
    
    and losses of the current period.
    
    At the time of recovery or disposal, the difference between the price obtained and the book value of the financial
    
    asset shall be recorded into the profits and losses of the current period.
    
    (2) Financial assets (debt instruments) that are measured at fair value and whose changes are included in other
    
    comprehensive income.
    
    Financial assets (debt instruments) measured at fair value and whose changes are included in other comprehensive
    
    income, including accounts receivable financing, other debt investments, etc., shall be initially measured at fair
    
    value, and the relevant transaction costs shall be included in the initial recognition amount. The financial asset is
    
    subsequently measured at fair value, and changes in fair value are included in other comprehensive income except
    
    for interest, impairment losses or gains and exchange gains and losses calculated by the effective interest rate
    
    method.
    
    When the recognition is terminated, the accumulated gains or losses previously included in other comprehensive
    
    income are transferred from other comprehensive income and included in the profits and losses of the current
    
    period.
    
    (3) Financial assets (equity instruments) that are measured at fair value and whose changes are included in other
    
    comprehensive income.
    
    Financial assets (equity instruments) measured at fair value and whose changes are included in other comprehensive
    
    income, including investments in other equity instruments, shall be initially measured at fair value, and the relevant
    
    transaction costs shall be included in the initial recognition amount. The financial assets are subsequently measured
    
    at fair value, and changes in fair value are included in other comprehensive income. The dividends earned shall be
    
    recorded in the profits and losses of the current period.
    
    At the time of termination of recognition, the cumulative gains or losses previously included in other comprehensive
    
    income are transferred from other comprehensive income and included in retained earnings.
    
    (4) Financial assets measured at fair value and whose changes are included in the profits and losses of the current
    
    period.
    
    Financial assets measured at fair value and whose changes are included in the profits and losses of the current period
    
    include transactional financial assets, derivative financial assets and other non-current financial assets, which are
    
    initially measured at fair value, and the relevant transaction costs are recorded in the profits and losses of the current
    
    period. The financial assets are subsequently measured at fair value, and the changes in fair value are recorded in the
    
    profits and losses of the current period.
    
    (5) Financial liabilities measured at fair value and whose changes are included in the profits and losses of the current
    
    period.
    
    Financial liabilities measured at fair value and whose changes are included in the profits and losses of the current
    
    period include transactional financial liabilities, derivative financial liabilities, etc., which are initially measured at
    
    fair value, and the relevant transaction costs are recorded in the profits and losses of the current period. The financial
    
    liability is subsequently measured at fair value, and the change in fair value is recorded in the profits and losses of
    
    the current period.
    
    When the recognition is terminated, the difference between the book value and the consideration paid shall be
    
    recorded in the profits and losses of the current period.
    
    (6) Financial liabilities measured at amortized cost.
    
    Financial liabilities measured at amortized cost include short-term loans, notes payable, accounts payable, other
    
    payables, long-term loans, bonds payable and long-term payables, which are initially measured at fair value, and the
    
    relevant transaction costs are included in the initial recognition amount.
    
    The interest calculated by the effective interest rate method during the holding period shall be recorded in the profits
    
    and losses of the current period.
    
    When the recognition is terminated, the difference between the consideration paid and the book value of the
    
    financial liability shall be recorded into the profits and losses of the current period.
    
    3. Confirmation basis and Measurement method of Financial assets transfer.
    
    When a company transfers financial assets, if almost all the risks and rewards in the ownership of the financial assets
    
    have been transferred to the transferee, the recognition of the financial assets shall be terminated; if almost all the
    
    risks and rewards in the ownership of the financial assets are retained, the recognition of the financial asset shall not
    
    be terminated.
    
    In judging whether the transfer of financial assets meets the above-mentioned conditions for termination of
    
    recognition of financial assets, the principle of substance over form shall be adopted.
    
    The company divides the transfer of financial assets into the overall transfer and partial transfer of financial assets.
    
    If the overall transfer of financial assets meets the conditions for termination of recognition, the difference between
    
    the following two amounts shall be recorded into the profits and losses of the current period:
    
    (1) the book value of the transferred financial assets;
    
    (2) the sum of the consideration received as a result of the transfer and the cumulative amount of changes in fair
    
    value that were originally directly included in the owners' equity (the financial assets involved in the transfer are
    
    financial assets (debt instruments) whose changes are measured at fair value and whose changes are included in
    
    other comprehensive income, and financial assets available for sale.
    
    If the partial transfer of financial assets meets the conditions for termination of recognition, the book value of the
    
    transferred financial assets as a whole shall be apportioned according to their respective relative fair values between
    
    the terminated recognition part and the unterminated recognition part, and the difference between the following two
    
    amounts shall be included in the profits and losses of the current period:
    
    (1) to terminate the book value of the recognition part;
    
    (2) the consideration of the termination recognition part, the sum of the amount corresponding to the cumulative
    
    amount of fair value changes that were originally directly included in the owners' equity (the financial assets
    
    involved in the transfer are financial assets (debt instruments) whose changes are measured at fair value and whose
    
    changes are included in other comprehensive income, financial assets available for sale.
    
    If the transfer of a financial asset does not meet the conditions for termination of recognition, the financial asset shall
    
    continue to be recognized, and the consideration received shall be recognized as a financial liability.
    
    4. Conditions for termination of recognition of financial liabilities.
    
    If the current obligation of a financial liability has been discharged in whole or in part, the recognition of the
    
    financial liability or part thereof shall be terminated; if the Company signs an agreement with the creditors to replace
    
    the existing financial liability by assuming a new financial liability, and if the contract terms of the new financial
    
    liability are substantially different from those of the existing financial liability, the recognition of the existing
    
    financial liability shall be terminated and the new financial liability shall be recognized at the same time.
    
    Where substantial changes are made to all or part of the terms of the contract for the existing financial liabilities, the
    
    recognition of the existing financial liabilities or part of them shall be terminated, and the financial liabilities after
    
    the revised terms shall be recognized as a new financial liability.
    
    When the recognition of financial liabilities is terminated in whole or in part, the difference between the book value
    
    of the financial liabilities terminated and the consideration paid (including transferred non-cash assets or new
    
    financial liabilities assumed) shall be included in the profits and losses of the current period.
    
    If the company buys back part of the financial liability, it shall allocate the book value of the financial liability as a
    
    whole according to the relative fair value of the continued recognition part and the termination recognition part on
    
    the repurchase date. The difference between the book value allocated to the termination of recognition and the
    
    consideration paid (including transferred non-cash assets or new financial liabilities assumed) shall be included in
    
    the profits and losses of the current period.
    
    5. The method of determining the fair value of financial assets and financial liabilities.
    
    There are financial instruments in an active market, whose fair value is determined by quotations in the active
    
    market. There are no financial instruments that activate the market, and valuation techniques are used to determine
    
    their fair value. In valuation, the Company adopts valuation techniques that are applicable in the current
    
    circumstances and are supported by sufficient available data and other information, select input values that are
    
    consistent with the characteristics of assets or liabilities considered by market participants in the transactions of the
    
    relevant assets or liabilities, and give priority to the relevant observable inputs. The unobservable input value is used
    
    only if the relevant observable input value cannot be obtained or is impracticable.
    
    6. Test method and Accounting treatment method of impairment of Financial assets.
    
    The Company takes into account all reasonable and justified information, including forward-looking information,
    
    estimates, individually or in combination, the expected credit losses of financial assets measured at amortised cost
    
    and financial assets (debt instruments) measured at fair value and whose changes are included in other
    
    comprehensive income. The measurement of expected credit loss depends on whether the credit risk of financial
    
    assets increases significantly after the initial recognition.
    
    If the credit risk of the financial instrument has increased significantly since the initial recognition, the Company
    
    measures its loss provision at the amount equivalent to the expected credit loss of the financial instrument
    
    throughout its lifetime; if the credit risk of the financial instrument does not increase significantly since the initial
    
    recognition, the Company measures its loss provision at the amount equivalent to the expected credit loss of the
    
    financial instrument in the next 12 months. The increase or reversal amount of the loss provision resulting therefrom
    
    shall be recorded into the profit or loss of the current period as an impairment loss or gain.
    
    Usually more than 30 days overdue, the Company considers that the credit risk of the financial instrument has
    
    increased significantly, unless there is conclusive evidence that the credit risk of the financial instrument has not
    
    increased significantly since the initial recognition.
    
    If the credit risk of a financial instrument is low on the balance sheet date, the Company considers that the credit risk
    
    of the financial instrument has not increased significantly since its initial recognition.
    
    If there is objective evidence that a financial asset has been impaired in credit, the company shall make provision for
    
    impairment of the financial asset on an individual basis.
    
    (1) Impairment of receivables.
    
    ①Accounts receivable.
    
    Accounts receivables are based on the assumption that their credit risk has not increased significantly since the
    
    initial recognition, and the loss provision is measured according to the expected credit loss over the next 12
    
    months. In addition to accounts receivables for individual assessment of credit risk, they are divided into different
    
    combinations based on the characteristics of credit risk:
    
                       Combinationname.                                Provisionratio.
                  Account ageanalysiscombination.                       Usingageanalysismethod.
           Combinationofrelatedpartieswithinthescopeofmerger.            Excludingtheprovisionforbaddebts.
                  Individualidentificationcombination                     Individualidentificationmethod
    
    
    For accounts receivable, regardless of whether it is due to the sale of products or the provision of services or
    
    contains a significant financing component, the Company always measures its loss provision at an amount
    
    equivalent to the expected credit loss over the entire lifetime, the resulting increase or reversal of the loss provision
    
    is recorded in the profits and losses of the current period as an impairment loss or gain.
    
    Based on all reasonable and valid information, including forward-looking information, the company makes
    
    provision for bad debts for accounts receivable in accordance with the combination of related parties and the
    
    combination of age analysis within the scope of merger, and the combination of related parties within the scope of
    
    merger does not make provision for bad debts, the combination of age analysis calculates its expected credit loss on
    
    the basis of age, as follows:
    
                         Accountage                          Proportionofaccountsreceivable(%)
                                                         Intelligent packaging    Powerengineservice
                                                       equipment relatedbusiness
                  Within 1year(including1year)                                   1                5
                   1to2years(including2years)                                   5               10
                   2to3years(including3years)                                   10               30
                   3to4years(including4years)                                   30               50
                   4to5years(including5years)                                   50               80
                       Morethan5years                                      100              100
    
    
    If there is objective evidence that a credit impairment has occurred in an account receivable, the company makes a
    
    provision for bad debts and recognizes the expected credit loss on the account receivable.
    
    ②Other receivables
    
    Other receivables are based on the assumption that their credit risk has not increased significantly since the initial
    
    recognition, and the loss provision is measured according to the expected credit loss over the next 12 months. In
    
    addition to other receivables for individual assessment of credit risk, they are divided into different combinations
    
    based on the characteristics of credit risk:
    
                       Combinationname.                                Provisionratio.
                  Account ageanalysiscombination.                       Usingageanalysismethod.
           Combinationofrelatedpartieswithinthescopeofmerger.            Excludingtheprovisionforbaddebts.
                 Individual identificationcombination                     Individualidentificationmethod
    
    
    In the combination, the age analysis combination calculates its expected credit loss on the basis of book age, as
    
    follows:
    
                          Accountage                          Proportionofaccountsreceivable(%)
                                                           Intelligentpackaging   Powerengineservice
                                                        equipment relatedbusiness
                   Within 1year(including1year)                                   1               5
                    1to2years(including2years)                                   5              10
                    2to3years(including3years)                                  10              30
                    3to4years(including4years)                                  30              50
                    4to5years(including5years)                                  50              80
                        Morethan5years                                      100             100
    
    
    (2) Other receivables.
    
    For lease receivables or long-term receivables formed by the company through the sale of goods or the provision
    
    of services, the Company chooses to always measure its provision for loss at an amount equivalent to the expected
    
    credit loss over the entire lifetime.
    
    The negotiable instruments obtained by the company shall be divided into financial institutions and other
    
    enterprises according to the acceptor. If the acceptor is a negotiable instrument of a financial institution, the
    
    company expects no credit loss; if the acceptor is a negotiable instrument of other enterprises, the company
    
    regards the negotiable instrument as accounts receivable to determine the expected credit loss.
    
    11. Inventory.
    
    1. Classification of inventory.
    
    Inventory is classified into: raw materials, products in process, goods in stock, goods issued, semi-finished products,
    
    materials commissioned for processing, etc.
    
    2. Pricing method for issuing inventory.
    
    The costs of inventory, delivery and production include raw materials, direct labour, other direct costs and indirect
    
    production costs apportioned in proportion to normal production capacity, as well as related interest expenses. The
    
    purchase and storage of all kinds of inventory are priced at actual cost and issued on a weighted average basis.
    
    3. The basis for determining the net realizable value of different types of inventory.
    
    In the course of normal production and operation, the net realizable value of goods directly used for sale, such as
    
    finished goods, goods in stock and materials used for sale, shall be determined on the basis of the estimated selling
    
    price of the inventory minus the estimated sales expenses and related taxes and fees. For the inventory of materials
    
    that need to be processed, in the normal process of production and operation, the net realizable value shall be
    
    determined on the basis of the estimated selling price of the finished goods produced minus the estimated cost to be
    
    incurred at the time of completion, the estimated sales expenses and the amount of relevant taxes and fees. The net
    
    realizable value of the inventory held for the execution of the sales contract or labor contract is calculated on the
    
    basis of the contract price. If the quantity of the inventory held exceeds the quantity ordered under the sales contract,
    
    the net realizable value of the excess inventory is calculated on the basis of the general sales price.
    
    At the end of the period, inventory falling price reserve is made according to a single inventory item; however, for
    
    inventory with a large number and lower unit price, inventory falling price reserve is made according to inventory
    
    category; inventory with the same or similar end-use or purpose related to product lines produced and sold in the
    
    same region and difficult to be measured separately from other items shall be combined with the inventory falling
    
    price reserve.
    
    Except that there is clear evidence that the market price on the balance sheet date is abnormal, the net realizable
    
    value of inventory items is determined on the basis of the market price on the balance sheet date.
    
    The net realizable value of the inventory items at the end of the period is determined on the basis of the market price
    
    on the balance sheet date.
    
    4. Inventory system.
    
    The perpetual inventory system is adopted.
    
    5. Amortization methods for low-value consumables and packaging.
    
    The main results are as follows:
    
    (1) the method of one-time resale is adopted for low-value consumable goods;
    
    (2) the package adopts the method of one-time resale.
    
    12. Contractual assets
    
    See Ⅴ (25) income for details.
    
    Accounting policies with effect from January 1, 2020
    
    1. Confirmation methods and standards of contract assets.
    
    The company shows the contract assets or contract liabilities in the balance sheet according to the relationship
    
    between the performance obligations and the customer payment. The right of the Company to transfer goods or
    
    provide services to customers and have the right to receive consideration (and this right depends on factors other
    
    than the passage of time) is listed as a contractual asset. The contractual assets and contractual liabilities under the
    
    same contract are shown in net amounts. The rights of the Company to collect consideration from customers
    
    unconditionally (only depending on the passage of time) are listed separately as receivables.
    
    2. the Determination Method and Accounting Treatment Method of the Expected Credit Loss of Contract Assets.
    
    The method of determining the expected credit loss of contract assets and accounting treatment methods are
    
    detailed in this note Ⅴ "(10) 6 Testing methods and accounting treatment methods of impairment of financial
    
    assets".
    
    13. Contract cost
    
    The contract cost includes the incremental cost of obtaining the contract and the performance cost of the contract.
    
    The incremental cost incurred in order to obtain the contract refers to the cost that will not be incurred by the
    
    company without obtaining the contract [(eg. sales commission, etc.)]. If the cost is expected to be recovered, the
    
    company will recognize it as a contract acquisition cost as an asset. The expenses incurred by the Company in
    
    order to obtain the contract, other than the incremental costs expected to be recovered, shall be recorded in the
    
    profits and losses of the current period at the time of occurrence.
    
    If the cost incurred in performing the contract does not fall within the scope of other accounting standards for
    
    enterprises such as inventory, and the following conditions are met at the same time, the company shall recognize
    
    it as a contract performance cost as an asset:
    
    (1) The cost is directly related to a current or expected contract, including direct labor, direct materials,
    
    manufacturing costs (or similar expenses), costs clearly borne by the customer and other costs incurred solely as a
    
    result of the contract.
    
    (2) This cost increases the resources used by the Company to fulfill its obligations in the future.
    
    (3) The cost is expected to be recovered.
    
    The assets recognized by the contract cost and the assets recognized by the contract performance cost (hereinafter
    
    referred to as "the assets related to the contract cost") shall be amortized on the same basis as the income from
    
    goods or services related to the asset and shall be included in the profits and losses of the current period.
    
    When the book value of the asset related to the contract cost is higher than the difference between the following
    
    two items, the company shall make provision for impairment of the excess and recognize it as an impairment loss
    
    of the asset:
    
    (1) The remaining consideration expected to be obtained by the Company as a result of the transfer of goods or
    
    services related to the asset.
    
    (2) The estimated cost to be incurred for the transfer of the related goods or services.
    
    14. Long-term equity investment.
    
    1. Criteria for judging joint control and significant influence.
    
    Joint control refers to the common control over an arrangement in accordance with the relevant agreement, and the
    
    relevant activities of the arrangement can only be made with the unanimous consent of the participants who share
    
    the control. Where the Company exercises joint control over the invested entity and enjoys rights over the net assets
    
    of the invested entity together with other joint ventures, the invested entity shall be a joint venture of the Company.
    
    Major impact refers to the right to participate in the financial and business decisions of an enterprise, but not to
    
    control or work with other parties to control the formulation of these policies. If the company can exert significant
    
    influence on the invested entity, the invested entity shall be an associated enterprise of the company.
    
    2. Determination of initial investment cost.
    
    (1) Long-term equity investment formed by enterprise merger.
    
    Business combination under the same control: where a company pays cash, transfers non-cash assets or assumes
    
    debts, and issues equity securities as merger consideration, the initial investment cost of the long-term equity
    
    investment shall be taken as the initial investment cost of the long-term equity investment in accordance with the
    
    share of the book value of the owner's equity of the merged party in the consolidated financial statements of the
    
    ultimate controlling party on the merger date. If it is possible to control the invested unit under the same control due
    
    to additional investment and other reasons, it shall enjoy the share of the book value of the merged party's net assets
    
    in the consolidated financial statements of the final controlling party on the merger date, determine the initial
    
    investment cost of long-term equity investment. The difference between the initial investment cost of the long-term
    
    equity investment on the merger date and the sum of the book value of the long-term equity investment before the
    
    merger plus the book value of the newly paid consideration for further acquired shares on the merger date, if the
    
    equity premium is adjusted and the equity premium is insufficient to be offset, offset the retained earnings.
    
    Business merger under different control: the company takes the merger cost determined on the purchase date as the
    
    initial investment cost of the long-term equity investment. If it is possible to control the invested units that are not
    
    under the same control due to additional investment and other reasons, the sum of the book value of the original
    
    equity investment plus the new investment cost shall be taken as the initial investment cost calculated according to
    
    the cost method.
    
    (2) Long-term equity investment obtained by other means.
    
    The long-term equity investment obtained by means of cash payment shall be taken as the initial investment cost
    
    according to the purchase price actually paid.
    
    The long-term equity investment obtained by issuing equity securities shall be taken as the initial investment cost
    
    according to the fair value of the equity securities issued.
    
    When the exchange of non-monetary assets has a commercial essence, and the fair value of the exchanged assets or
    
    exchanged assets can be measured reliably, it shall be measured on the basis of fair value. If the fair value of both the
    
    exchanged assets and the exchanged assets can be measured reliably, for the exchanged long-term equity investment,
    
    the fair value of the exchanged assets and the relevant taxes payable shall be taken as the initial investment cost of
    
    the converted long-term equity investment, unless there is conclusive evidence that the fair value of the converted
    
    assets is more reliable. Where the exchange of non-monetary assets does not have a commercial substance, or the
    
    fair value of both the exchanged assets and the exchanged assets cannot be measured reliably, for the exchanged
    
    long-term equity investment, the book value of the exchanged assets and the relevant taxes payable shall be taken as
    
    the initial investment cost of the long-term equity investment.
    
    The long-term equity investment obtained through debt restructuring shall be recorded at other costs such as the fair
    
    value of the abandoned creditor's rights and taxes directly attributable to the asset, and the difference between the
    
    fair value and the book value of the abandoned creditor's rights shall be included in the profits and losses of the
    
    current period.
    
    3. Follow-up measurement and profit and loss recognition method.
    
    (1) Long-term equity investment calculated by cost method.
    
    The company's long-term equity investment in subsidiaries shall be accounted for by the cost method. Except for
    
    the declared but not yet paid cash dividends or profits included in the price or consideration actually paid at the
    
    time of the investment, the company recognizes the current investment income in accordance with the cash
    
    dividends or profits declared by the invested entity.
    
    (2) Long-term equity investment accounted for by equity method.
    
    The equity method shall be used to calculate the long-term equity investment of joint ventures and joint ventures.
    
    When the initial investment cost is greater than the investment, it shall enjoy the difference in the fair value share
    
    of the identifiable net assets of the invested unit, and shall not adjust the initial investment cost of the long-term
    
    equity investment; when the initial investment cost is less than the investment, it shall enjoy the difference in the
    
    fair value share of the identifiable net assets of the invested unit, which shall be included in the profits and losses
    
    of the current period.
    
    The company recognizes the investment income and other comprehensive income respectively according to the
    
    share of the net profit and loss and other comprehensive income realized by the invested unit, and adjusts the book
    
    value of the long-term equity investment; the book value of the long-term equity investment shall be reduced
    
    accordingly according to the profits or cash dividends declared and distributed by the invested unit. For other
    
    changes in the owner's equity of the invested unit except net profit and loss, other comprehensive income and
    
    profit distribution, the book value of the long-term equity investment shall be adjusted and included in the owner's
    
    equity.
    
    When recognizing the share of the net profit and loss of the invested unit, it shall be based on the fair value of the
    
    identifiable net assets of the invested unit at the time of the investment, and in accordance with the company's
    
    accounting policy and accounting period, the net profit of the invested unit is recognized after adjustment. During
    
    the period of holding investment, where the invested entity prepares the consolidated financial statements, it shall
    
    be accounted for on the basis of the changes in net profit, other comprehensive income and other owners' equity in
    
    the consolidated financial statements attributable to the invested unit.
    
    The unrealized internal transaction gains and losses between the company, the joint venture and the joint venture
    
    shall be calculated and offset in accordance with the proportion to which the company is entitled, and the
    
    investment income shall be recognized on this basis. If the unrealized internal transaction loss with the invested
    
    entity belongs to the asset impairment loss, it shall be recognized in full. Where a transaction occurs between a
    
    company, an associated enterprise or a joint venture in which assets constitute business, accounting treatment
    
    shall be conducted in accordance with the relevant policies disclosed in this note " 5. (5) Accounting methods for
    
    business mergers under the same control and under different controls" and "5. (6) methods for the preparation of
    
    consolidated financial statements".
    
    When the company confirms that it should share the losses incurred by the invested unit, it shall be dealt with in
    
    the following order: first, write down the book value of the long-term equity investment. Secondly, if the book
    
    value of the long-term equity investment is not enough to offset, the book value of the long-term equity of the net
    
    investment of the invested unit shall continue to be recognized to the limit of the book value of the net investment
    
    of the invested unit, and the book value of the long-term receivables shall be offset. Finally, after the above
    
    treatment, if the enterprise still bears additional obligations in accordance with the investment contract or
    
    agreement, the estimated liabilities shall be recognized according to the expected obligations, which shall be
    
    included in the investment losses of the current period.
    
    (3) Disposal of long-term equity investment.
    
    The difference between the book value of the long-term equity investment and the actual price obtained shall be
    
    included in the profits and losses of the current period.
    
    When dealing with the long-term equity investment calculated by the equity method, the investment shall be treated
    
    on the same basis as the relevant assets or liabilities directly disposed of by the invested unit, and the part originally
    
    included in other comprehensive income shall be treated according to the corresponding proportion. The owner's
    
    equity recognized as a result of changes in owners' equity other than net profit and loss, other comprehensive
    
    income and profit distribution of the invested unit shall be carried forward pro rata to the profits and losses of the
    
    current period, with the exception of other comprehensive income arising from the re-measurement of the net
    
    liabilities or changes in net assets of the benefit plan of the invested party.
    
    If the common control or significant influence on the invested unit is lost due to the disposal of part of the equity
    
    investment, the remaining equity after disposal shall be accounted for in accordance with the criteria for the
    
    recognition and measurement of financial instruments, the difference between the fair value and the book value on
    
    the date of loss of common control or significant influence shall be recorded in the profits and losses of the current
    
    period. Other comprehensive income recognized by the original equity investment due to the use of the equity
    
    method shall be treated on the same basis as the relevant assets or liabilities directly disposed of by the invested unit
    
    when the application of the equity method is terminated. The owner's equity recognized as a result of changes in
    
    owners' equity other than net profit and loss, other comprehensive income and profit distribution of the invested
    
    party shall be transferred to the profits and losses of the current period when the accounting method of equity is
    
    terminated.
    
    If the company loses its control over the invested unit due to the disposal of part of the equity investment or the
    
    decrease of the proportion of shares held by the company due to the increase of capital of the subsidiary by other
    
    investors, when preparing individual financial statements, if the remaining equity can exercise joint control or
    
    significant influence on the invested unit, it shall be accounted for according to the equity method, and the
    
    remaining equity shall be adjusted by the equity method as soon as it is acquired. Where the remaining equity cannot
    
    exercise joint control or exert significant influence on the invested unit, the accounting treatment shall be carried out
    
    in accordance with the relevant provisions of the standards for the recognition and measurement of financial
    
    instruments, and the difference between the fair value and the book value on the date of loss of control shall be
    
    recorded into the profits and losses of the current period.
    
    The disposed equity is acquired through enterprise merger due to additional investment and other reasons, and when
    
    preparing individual financial statements, the remaining equity after disposal is calculated by cost method or equity
    
    method, the other comprehensive income and other owners' equity recognized by the equity method before the date
    
    of purchase are carried forward in proportion to the other comprehensive income and other owners' rights and
    
    interests recognized by the equity method. If the remaining equity after disposal is changed to accounting in
    
    accordance with the standards for recognition and measurement of financial instruments, all other comprehensive
    
    income and other owners' equity are carried forward.
    
    15. Fixed assets.
    
    (1) Confirmation conditions.
    
    Fixed assets refer to tangible assets that are held for the production of goods, the provision of labor services,
    
    leasing or management, and have a useful life of more than one fiscal year. Fixed assets are recognized when the
    
    following conditions are met at the same time: (1) The economic benefits related to the fixed assets are likely to
    
    flow into the enterprise; (2) The cost of the fixed assets can be measured reliably.
    
    (2) Depreciation method
    
          Category.       Depreciationmethod.    Depreciationlife.     Residualvaluerate.   Annualdepreciationrate.
    Houses andbuildings.   Lifeaveragingmethod  20-40              5.00%             2.375%-4.75%
    machinery equipment.   Lifeaveragingmethod  5-18              5.00%             5.28%-19.00%
    Transport equipment.   Lifeaveragingmethod  5-10              5.00%             9.5%-19.00%
    Electronic equipment.   Lifeaveragingmethod  3-10              5.00%             9.5%-31.67%
    Office equipment.     Lifeaveragingmethod  3-10              5.00%             9.5%-31.67%
    Other equipment.      Lifeaveragingmethod  5-10              5.00%             9.5%-19.00%
    
    
    The depreciation of fixed assets shall be classified and calculated by the life-span average method, and the
    
    depreciation rate shall be determined according to the category of fixed assets, the expected service life and the
    
    expected net salvage rate. If the service life of each component of the fixed asset is different or provides economic
    
    benefits for the enterprise in different ways, choose different depreciation rates or depreciation methods to
    
    calculate depreciation respectively.
    
    If the fixed assets leased by financial leasing can be reasonably determined that the ownership of the leased assets
    
    will be acquired at the expiration of the lease term, depreciation shall be calculated within the useful life of the
    
    leased assets; if it is impossible to reasonably determine that the ownership of the leased assets can be obtained at
    
    the expiration of the lease term, depreciation shall be calculated within the shorter period of the lease term and the
    
    useful life of the leased assets.
    
    (3) The identification basis, valuation and depreciation methods of financial leasing fixed assets.
    
    If one of the following conditions is stipulated in the terms of the lease agreement between the company and the
    
    lessee, it is recognized as a financial leased asset: (1) The ownership of the leased asset belongs to the company
    
    after the expiration of the lease term; (2) The company has the option to purchase the asset, the purchase price is
    
    much lower than the fair value of the asset when the option is exercised; (3) The lease term accounts for most of
    
    the useful life of the leased asset; (4) There is no significant difference between the present value of the minimum
    
    lease payment on the lease start date and the fair value of the asset. At the beginning of the lease, the company
    
    takes the lower of the fair value of the leased asset and the present value of the minimum lease payment as the
    
    accounting value of the leased asset, and the minimum lease payment as the accounting value of the long-term
    
    payable, the difference is regarded as an unrecognized financing fee.
    
    16. Projects under construction.
    
    According to the necessary expenditure incurred before the construction of the asset reaches its intended usable state,
    
    the project under construction shall be regarded as the accounting value of the fixed asset. If the built fixed assets
    
    have reached the intended usable state in the project, but the final accounts of the construction have not yet been
    
    handled, from the date of reaching the scheduled usable state, according to the project budget, cost or actual cost of
    
    the project, the fixed assets shall be transferred to the fixed assets according to the estimated value, and the
    
    depreciation of the fixed assets shall be calculated in accordance with the company's fixed assets depreciation policy,
    
    and the original provisional estimated value shall be adjusted according to the actual cost after handling the final
    
    accounts for completion. However, the original depreciation amount shall not be adjusted.
    
    17. Borrowing costs.
    
    1. Confirmation principle of capitalization of borrowing costs.
    
    Borrowing costs, including interest on loans, amortization of discounts or premiums, ancillary expenses and
    
    exchange differences arising from foreign currency loans.
    
    If the borrowing costs incurred by a company can be directly attributed to the purchase, construction or production
    
    of assets that meet the conditions for capitalization, they shall be capitalized and included in the cost of the relevant
    
    assets; other borrowing costs shall be recognized as expenses according to the amount incurred at the time of
    
    occurrence, it shall be recorded in the profits and losses of the current period.
    
    Assets that meet the capitalization conditions refer to fixed assets, investment real estate, inventory and other assets
    
    that take quite a long time of purchase, construction or production activities to reach the intended state of use or sale.
    
    Capitalization begins when borrowing costs meet the following conditions at the same time:
    
    (1) Asset expenditure has been incurred, which includes expenditure in the form of cash payment, transfer of
    
    non-cash assets or undertaking interest-bearing debt for the purchase, construction or production of assets that meet
    
    the capitalization conditions;
    
    (2) The cost of borrowing has been incurred;
    
    (3) The purchase, construction or production activities necessary to make the assets available for use or sale have
    
    begun.
    
    2. Period of capitalization of borrowing costs.
    
    The capitalization period refers to the period from the beginning of capitalization of borrowing costs to the time of
    
    cessation of capitalization, excluding the period of suspension of capitalization of borrowing costs.
    
    When the assets of acquisition, construction or production that meet the conditions for capitalization reach the
    
    intended state of use or sale, the borrowing costs shall cease to be capitalized.
    
    When part of the assets of acquisition, construction or production that meet the capitalization conditions are
    
    respectively completed and can be used separately, the borrowing costs of that part of the assets shall cease to be
    
    capitalized.
    
    If each part of the asset of purchase, construction or production is completed separately, but can be used or sold only
    
    after the overall completion, the capitalization of borrowing costs shall be stopped when the asset is completed as a
    
    whole.
    
    3. Suspension of capitalization period.
    
    If there is an abnormal interruption of assets that meet the capitalization conditions in the process of purchase,
    
    construction or production, and the interruption time exceeds 3 months, the borrowing costs shall be suspended; if
    
    the interruption is a procedure necessary for the acquisition, construction or production of assets eligible for
    
    capitalization to reach the intended usable state or marketable state, the borrowing costs shall continue to be
    
    capitalized. Borrowing costs incurred during the interruption period are recognized as profits and losses of the
    
    current period and continue to be capitalized after the resumption of the purchase and construction of assets or
    
    production activities.
    
    4. The calculation method of the capitalization rate and capitalization amount of borrowing costs.
    
    For special loans borrowed for the acquisition, construction or production of assets that meet the capitalization
    
    conditions, the borrowing costs actually incurred in the current period shall be used to determine the capitalization
    
    amount of the borrowing costs by deducting the interest income earned by the unused loan funds deposited in the
    
    bank or the investment income from temporary investments.
    
    For general loans occupied for the acquisition, construction or production of assets that meet the capitalization
    
    conditions, the amount of borrowing costs that should be capitalized shall be calculated and determined according to
    
    the weighted average of the accumulated asset expenditure exceeding the portion of the special loans multiplied by
    
    the capitalization rate of the general loans occupied. The capitalization rate is calculated based on the weighted
    
    average interest rate of general borrowing.
    
    18. Intangible assets.
    
    (1) valuation method, service life and impairment test.
    
    1. Valuation method of intangible assets.
    
    (1) The company carries on the initial measurement according to the cost when it acquires the intangible assets;
    
    The cost of purchasing an intangible asset, including the purchase price, related taxes and fees, and other expenses
    
    directly attributable to the intended use of the asset. If the price of the purchase of intangible assets exceeds the
    
    normal credit conditions and the payment is deferred and has the nature of financing in essence, the cost of the
    
    intangible assets shall be determined on the basis of the present value of the purchase price.
    
    The debt restructuring shall obtain the intangible assets used by the debtor to repay the debts, and determine its
    
    entry value on the basis of the fair value of the abandoned claims and other costs such as taxes directly attributable
    
    to the intended use of the assets, and the difference between the fair value and the book value of the abandoned
    
    claims shall be recorded into the profits and losses of the current period.
    
    When the exchange of non-monetary assets has a commercial essence, and the fair value of the exchanged assets
    
    or exchanged assets can be measured reliably, it shall be measured on the basis of fair value. If the fair value of
    
    both the exchanged assets and the exchanged assets can be measured reliably, for the exchanged intangible assets,
    
    the fair value of the exchanged assets and the relevant taxes payable shall be taken as the initial investment cost of
    
    the exchanged intangible assets, unless there is conclusive evidence that the fair value of the converted assets is
    
    more reliable. Where the exchange of non-monetary assets does not have a commercial substance, or the fair
    
    value of both the exchanged assets and the exchanged assets cannot be reliably measured, for the exchanged
    
    intangible assets, the book value of the exchanged assets and the relevant taxes payable shall be taken as the initial
    
    investment cost of the intangible assets.
    
    (2) Follow-up measurement.
    
    Analyze and judge the service life of intangible assets when acquiring them.
    
    Intangible assets with limited service life shall be amortized according to the straight-line method within the period
    
    of bringing economic benefits to the enterprise; if it is impossible to foresee the period for which intangible assets
    
    bring economic benefits to the enterprise, they shall be regarded as intangible assets with uncertain service life and
    
    shall not be amortized.
    
    2. Estimation of the useful life of intangible assets with limited useful life:
    
           Item        Expectedservicelife.   Amortizationmethod.       Accordingto
    Land useright.        40-50            Landuserightfortheterm Landuseright.
                                     of useofthelandcertificate.
    Land ownership.       Permanent.        Overseaslandcertificate.  Landownership.
    Trademarksandpatents  5-10            Servicelife.           Trademarksandpatents
    
    
    At the end of each year, the useful life and amortization methods of intangible assets with limited service life are
    
    reviewed.
    
    After review, the useful life and amortization method of intangible assets at the end of this year are not different
    
    from previous estimates.
    
    3. The basis for judging intangible assets with uncertain service life and the procedure for reviewing their
    
    service life.
    
    The land ownership of the subsidiary Fosber Group in Italy has a permanent term, and the company believes that the
    
    land ownership will be used in the foreseeable future and will bring expected economic benefits to the company, so
    
    it is determined that its useful life is uncertain.
    
    The trademarks registered by subsidiaries Fosber Group and Fosber United States have a service life as required by
    
    law, but Fosber Group and Fosber United States may apply for extension at a lower fee at the expiration of the term
    
    of protection. In addition, the relevant survey shows that the market demand for the products attached to the above
    
    trademark rights is long-term, and the company will benefit from the above-mentioned trademark products for a
    
    long time.
    
    Therefore, the company recognizes the right to use the trademark as an intangible asset with uncertain service life.
    
    At the end of each year, the service life of intangible assets with uncertain service life is reviewed.
    
    After review, the service life of the above intangible assets is still uncertain.
    
    (2) Accounting policy for internal R & D expenditure.
    
    1. Specific criteria for dividing the research phase and the development phase.
    
    The expenditure of research and development projects within the company is divided into research phase
    
    expenditure and development phase expenditure.
    
    Research stage: the stage of original planned investigation and research activities carried out in order to acquire and
    
    understand new scientific or technical knowledge.
    
    Development phase: the stage in which research or other knowledge is applied to a plan or design to produce new or
    
    substantially improved materials, devices, products, etc., prior to commercial production or use.
    
    2. Specific conditions for the capitalization of expenditure in the development stage.
    
    The expenditure in the development phase of an internal research and development project is recognized as
    
    intangible assets when the following conditions are met:
    
    (1) it is technically feasible to complete the intangible asset so that it can be used or sold;
    
    (2) have the intention to complete the intangible asset and use or sell it;
    
    (3) the ways in which intangible assets generate economic benefits, including the ability to prove that the products
    
    produced by the intangible assets exist in the market or the intangible assets themselves exist in the market, and that
    
    the intangible assets will be used internally can prove their usefulness;
    
    (4) there are sufficient technical, financial and other resources to support the development of the intangible asset and
    
    the ability to use or sell the intangible asset;
    
    (5) the expenditure attributed to the development stage of the intangible assets can be measured reliably.
    
    If the expenditure in the development stage does not meet the above conditions, it shall be recorded into the profits
    
    and losses of the current period when it occurs. The expenditure of the research stage shall be recorded into the
    
    profits and losses of the current period when it occurs.
    
    19. Impairment of long-term assets.
    
    Long-term assets such as long-term equity investment, investment real estate measured by cost model, fixed assets,
    
    projects under construction and intangible assets with limited service life shall be tested if there are signs of
    
    impairment on the balance sheet date. If the impairment test results show that the recoverable amount of the asset is
    
    lower than its book value, the impairment provision shall be calculated according to the difference and the
    
    impairment loss shall be included. The recoverable amount is the higher between the net amount of the fair value of
    
    the asset minus the disposal expenses and the present value of the expected future cash flow of the asset. The
    
    provision for impairment of assets shall be calculated and confirmed on the basis of individual assets. If it is difficult
    
    to estimate the recoverable amount of individual assets, the recoverable amount of the asset group shall be
    
    determined on the basis of the asset group to which the asset belongs. An asset group is the smallest portfolio that
    
    can independently generate cash inflows.
    
    Goodwill, intangible assets with uncertain useful life, and intangible assets that have not yet reached the serviceable
    
    state shall be tested for impairment at least at the end of each year.
    
    The company conducts a goodwill impairment test, and the book value of goodwill resulting from a business merger
    
    shall be apportioned to the relevant asset group in a reasonable manner from the date of purchase; if it is difficult to
    
    be apportioned to the relevant asset group, it shall be apportioned to the relevant asset group portfolio. When
    
    apportion the book value of goodwill, the company allocates according to the relative benefits that the relevant asset
    
    groups or asset groups can get from the synergy of business merger, and carries on the goodwill impairment test on
    
    this basis.
    
    When conducting an impairment test on a relevant asset group or combination of asset groups containing goodwill,
    
    if there are signs of impairment in the asset group or combination of asset groups related to goodwill, first carry out
    
    an impairment test on the asset group or combination of assets that do not include goodwill, calculate the
    
    recoverable amount, and compare it with the relevant book value to confirm the corresponding impairment loss.
    
    Then carry on the impairment test to the asset group or asset group combination including goodwill, and compare
    
    the book value of these relevant asset groups or asset groups (including the book value portion of the apportioned
    
    goodwill) with their recoverable amount. If the recoverable amount of the relevant asset group or asset group
    
    combination is lower than its book value, the impairment loss of goodwill shall be confirmed. Once the impairment
    
    loss of the above-mentioned assets is recognized, it shall not be reversed in the subsequent accounting period.
    
    20. Long-term prepaid expenses.
    
    Long-term prepaid expenses are expenses that have been incurred but should be borne by the current and subsequent
    
    periods for a period of more than one year.
    
    1. Amortization method.
    
    Long-term prepaid expenses are amortized evenly during the beneficial period.
    
    2. Amortization life.
    
    (1) The expenditure for the improvement of fixed assets shall be amortized over the remaining useful life of the
    
    fixed asset;
    
    (2) Other expenses shall be amortized averagely from 3 to 5 years according to the number of years of benefit.
    
    21. Contractual Liabilities.
    
    See Ⅴ (25) income for details.
    
    22. Salary of staff and workers.
    
    (1) The accounting treatment of short-term compensation.
    
    During the accounting period in which employees provide services to the Company, the Company recognizes the
    
    actual short-term compensation as liabilities and includes it in the profits and losses or related asset costs of the
    
    current period.
    
    The social insurance premium and housing accumulation fund paid by the company for the staff and workers, as
    
    well as the trade union funds and staff education funds drawn in accordance with the provisions, during the
    
    accounting period during which the staff and workers provide services for the company, the corresponding amount
    
    of salary of the staff and workers shall be calculated and determined according to the prescribed basis and
    
    proportion.
    
    If the welfare expenses of staff and workers are non-monetary welfare, if they can be measured reliably, they shall
    
    be measured at fair value.
    
    (2) Accounting treatment of after-service benefits.
    
    (1) Set up a withdrawal plan.
    
    The company shall pay basic old-age insurance and unemployment insurance for its employees in accordance with
    
    the relevant provisions of the local government. During the accounting period in which the staff and workers
    
    provide services for the company, the amount payable shall be calculated according to the local payment base and
    
    proportion, which shall be recognized as liabilities, and shall be included in the profits and losses of the current
    
    period or the cost of related assets.
    
    In addition to the basic old-age insurance, the company has also established an enterprise annuity contribution
    
    system (supplementary old-age insurance) / enterprise annuity plan according to the relevant policies of the national
    
    enterprise annuity system. The company shall pay a certain proportion of the total wages of the employees to the
    
    local social insurance institutions / annuity plan, and the corresponding expenditure shall be included in the profits
    
    and losses of the current period or the cost of related assets.
    
    (2) Set up a benefit plan.
    
    According to the formula determined by the expected cumulative benefit unit method, the Company ascribes the
    
    welfare obligations arising from the established benefit plan to the period during which the employee provides
    
    services, which is included in the current profit or loss or related asset costs.
    
    The deficit or surplus resulting from the present value of the set benefit plan obligations minus the fair value of the
    
    set benefit plan assets is recognized as a net liability or net asset of a set benefit plan. If there is a surplus in the
    
    benefit plan, the company shall measure the net assets of the benefit plan by which of the two items: the surplus of
    
    the benefit plan and the asset ceiling.
    
    All obligations to set benefit plans, including those expected to be paid within 12 months after the end of the annual
    
    reporting period for the provision of services by employees, are discounted according to the market yield of treasury
    
    bonds or high-quality corporate bonds in an active market that match the balance sheet date with the duration and
    
    currency of the set benefit plan obligations.
    
    The service costs arising from the establishment of the benefit plan and the net interest of the net liabilities or net
    
    assets of the benefit plan shall be included in the current profit or loss or the cost of related assets; The changes
    
    resulting from the re-measurement of the net liabilities or net assets of the benefit plan are included in other
    
    comprehensive income and do not return to profit or loss in subsequent accounting periods, all the parts originally
    
    included in other comprehensive income are carried forward to undistributed profits within the scope of equity at the
    
    termination of the original benefit plan.
    
    When setting up the settlement of the benefit plan, the settlement gain or loss shall be confirmed according to the
    
    difference between the present value of the obligation of the set benefit plan and the settlement price determined on
    
    the balance sheet date.
    
    23. Estimated liabilities.
    
    1. Recognition criteria for estimated liabilities.
    
    When the obligations related to litigation, debt guarantee, loss contract, restructuring and other contingent matters
    
    meet the following conditions at the same time, the company is recognized as an estimated liability:
    
    (1) The obligation is a current obligation of the Company;
    
    (2) The performance of this obligation is likely to lead to the outflow of economic benefits from the company;
    
    (3) The amount of the obligation can be measured reliably.
    
    2. The method of measuring all kinds of estimated liabilities.
    
    The Company expects that the liabilities are initially measured on the basis of the best estimate of the expenditure
    
    required to meet the relevant current obligations.
    
    In determining the best estimates, the Company takes into account such factors as risks, uncertainties and the time
    
    value of money associated with contingencies. If the time value of money has a significant impact, the best estimate
    
    is determined by discounting the relevant future cash outflows.
    
    The best estimates are dealt with in the following cases:
    
    If there is a continuous range (or interval) of the required expenditure, and the possibility of various results within
    
    that range is the same, the best estimate is determined according to the middle value of the range, that is, the average
    
    of the upper and lower limits.
    
    Where there is no continuous range (or interval) of expenditure requirements, or although there is a continuous
    
    range, the possibility of various outcomes within that range is different, if a contingent event involves a single
    
    project, the best estimate is determined on the basis of the amount most likely to occur; if a contingent event
    
    involves multiple projects, the best estimate is determined on the basis of various possible outcomes and related
    
    probabilities.
    
    If all or part of the expenses required for the Company's settlement of the estimated liabilities are expected to be
    
    compensated by a third party, the amount of compensation shall be recognized separately as assets when it is
    
    basically determined that it can be received, and the amount of compensation recognized shall not exceed the book
    
    value of the estimated liabilities.
    
    24. Share payment.
    
    The company's share-based payment is a transaction in which equity instruments are granted or liabilities
    
    determined on the basis of equity instruments in order to obtain services provided by employees or other parties.
    
    The company's share-based payments are equity-settled share-based payments.
    
    Where the share-based payment settled by equity is exchanged for services provided by the staff and workers, the
    
    fair value of the equity instruments granted to the staff and workers shall be measured. If the company pays for
    
    shares in restricted shares, the staff and workers shall contribute to subscribe for the shares, and the shares shall not
    
    be listed, circulated or transferred until the unlocking conditions are met and unlocked; if the unlocking conditions
    
    stipulated in the final equity incentive plan are not met, then the company buys back the shares at the agreed price in
    
    advance. When the Company obtains the payment made by the employee to subscribe for restricted shares, it
    
    recognizes the share capital and capital reserve (equity premium) in accordance with the subscription obtained, and
    
    at the same time recognizes a liability in full with respect to the repurchase obligation and recognizes the treasury
    
    shares. On each balance sheet day during the waiting period, the Company makes the best estimate of the number of
    
    exercisable equity instruments on the basis of the latest follow-up information such as [changes in the number of
    
    workable employees] and [whether or not the prescribed performance conditions are met]. According to the fair
    
    value on the date of the grant, the services obtained in the current period shall be included in the relevant costs or
    
    expenses, and the capital reserve shall be increased accordingly. No adjustments will be made to the recognized
    
    relevant costs or expenses and the total amount of owners' equity after the date of exercise. However, if the right can
    
    be exercised immediately after the grant, the relevant costs or expenses shall be included in accordance with the fair
    
    value on the date of the grant, and the capital reserve shall be increased accordingly.
    
    For the share payment that fails to exercise the right in the end, the cost or fee is not recognized, unless the exercise
    
    condition is a market condition or a non-exercisable condition, regardless of whether or not the market condition or
    
    non-exercisable condition is met, as long as the non-market conditions in all the conditions of the exercisable right
    
    are met, it is regarded as the exercisable right.
    
    If the terms of equity-settled share payments are modified, at least the services obtained are confirmed in accordance
    
    with the unmodified terms. In addition, any change that increases the fair value of the equity instrument granted, or
    
    any change that is beneficial to the employee on the modification date, recognizes the increase in access to services.
    
    If the equity-settled share payment is cancelled, it will be treated as an accelerated exercise on the cancellation date,
    
    and the amount that has not yet been recognized shall be recognized immediately. If the employee or other party
    
    may choose to meet the conditions of the non-exercisable right but not during the waiting period, it shall be treated
    
    as canceling the share payment settled on the basis of equity. However, if a new equity instrument is granted and it
    
    is determined on the date of the grant that the new equity instrument is used to replace the cancelled equity
    
    instrument, the granted alternative equity instrument is dealt with in the same manner as the modification of the
    
    terms and conditions of the original equity instrument.
    
    25. Income
    
    Accounting policies for revenue recognition and measurement
    
    Accounting policies applicable since January 1, 2020
    
    1. General principles for the recognition of income from the sale of goods
    
    Income is the total inflow of economic interests formed in the daily activities of a company, which will lead to the
    
    increase of shareholders' rights and interests and have nothing to do with shareholders' investment capital.
    
    The company has fulfilled its performance obligations in the contract, that is, revenue is recognized when the
    
    customer acquires control over the relevant goods or services.
    
    Where two or more performance obligations are included in the contract, the Company shall apportion the
    
    transaction price to each individual performance obligation according to the relative proportion of the separate
    
    selling price of the goods or services promised by each individual performance obligation at the beginning of the
    
    contract. The Company measures income according to the transaction price apportioned to each individual
    
    performance obligation. For a contract with a quality assurance clause, we analyze the nature of the quality
    
    assurance provided by the contract, and if the quality assurance provides a separate service in addition to assuring
    
    the customer that the goods sold meet the established standards, the company regards it as a single performance
    
    obligation. Otherwise, the Company shall carry out accounting treatment in accordance with the provisions of the
    
    Accounting Standards for Enterprises No. 13 - Contingent Events.
    
    Transaction price refers to the amount of consideration that the Company is expected to be entitled to receive as a
    
    result of the transfer of goods or services to customers, excluding the amount collected on behalf of third parties.
    
    The transaction price recognized by the Company does not exceed the amount of cumulative recognized income
    
    that is unlikely to be materially reversed when the relevant uncertainty is eliminated.
    
    If one of the following conditions is met, the performance obligation shall be performed within a certain period of
    
    time, otherwise, the performance obligation shall be fulfilled at a certain time point:
    
    (1) The customer acquires and consumes the economic benefits brought about by the performance of the
    
    Company at the same time as the performance of the Company.
    
    (2) The customer can control the goods under construction during the implementation of the contract.
    
    (3) The goods produced by the Company in the course of performance are of irreplaceable use, and the Company
    
    has the right to collect payment for the accumulated part of the performance that has been completed so far
    
    throughout the term of the contract.
    
    For the performance obligations performed within a certain period of time, the company shall recognize the
    
    income in accordance with the performance progress within that period, except where the performance progress
    
    cannot be reasonably determined. Considering the nature of the goods or services, the company adopts the
    
    production method or input method to determine the progress of performance. When the progress of performance
    
    cannot be reasonably determined and the costs already incurred are expected to be compensated, the company
    
    shall recognize revenue according to the amount of costs already incurred until the progress of implementation
    
    can be reasonably determined.
    
    For performance obligations performed at a certain point in time, the company recognizes revenue at the time
    
    when the customer acquires control over the relevant goods or services.
    
    In determining whether a customer has acquired control over goods or services, the company considers the
    
    following signs:
    
    (1) The Company has a current right of collection in respect of the goods or services, that is, the customer has a
    
    current obligation to pay for the goods or services.
    
    (2) The Company has transferred the legal ownership of the commodity to the customer, that is, the customer
    
    already owns the legal ownership of the commodity.
    
    (3) The Company has transferred the goods in kind to the customer, that is, the customer has possessed the goods
    
    in kind.
    
    (4) The Company has transferred the main risks and rewards in the ownership of the goods to the customer, that is,
    
    the customer has obtained the main risks and rewards in the ownership of the goods.
    
    (5) The customer has accepted the goods or services, etc.
    
    The right of the Company to transfer goods or services to customers and have the right to receive consideration
    
    (and this right depends on factors other than the passage of time) is listed as contract assets. The rights of the
    
    Company to collect consideration from customers unconditionally (only depending on the passage of time) are
    
    shown as receivables. The Company's obligation to transfer goods or services to customers for consideration
    
    received or receivable is shown as contractual liabilities.
    
    2. Specific principles.
    
    (1) Corrugated printing press related business.
    
    Domestic sales mode: domestic sales take the date of receipt of goods as the time point of revenue recognition, and
    
    domestic accessories sales take the sales reconciliation as the time point of revenue recognition.
    
    Export mode: the revenue of the whole export machine and accessories is confirmed by the customs declaration of
    
    the goods and obtaining the customs declaration approved by the customs, the shipment of the goods and the bill of
    
    lading of the goods.
    
    (2) Domestic power engine business.
    
    Domestic sales mode: take the sales reconciliation as the time point of revenue recognition;
    
    Export mode: the time point of revenue recognition is to declare the goods and obtain the customs declaration
    
    approved by the customs, the goods are shipped and the bill of lading is obtained.
    
    (3) Corrugated board production line related business.
    
    Corrugated board production line operating income is divided into machine sales revenue and installation service
    
    income.
    
    Machine sales: 1) Domestic sales model: machines arrive at customers and sign for receipt as the time point of
    
    revenue confirmation;
    
    2) Export mode: the revenue recognition time is based on the declaration of the goods and
    
    obtaining the customs declaration approved by the customs, the shipment of the goods and the
    
    bill of lading.
    
    Installation service revenue: confirm the revenue after the completion of the installation and trial operation of the
    
    machine.
    
    The adoption of different business models in the same kind of business leads to differences in accounting policies for revenue
    
    recognition.
    
    26. Government subsidy.
    
    1. Types.
    
    Government subsidy is the monetary and non-monetary assets obtained by the company from the government free
    
    of charge. It is divided into assets-related government subsidies and income-related government subsidies.
    
    The government subsidy related to assets refers to the government subsidy obtained by the company for the
    
    purchase, construction or other formation of long-term assets. Government subsidies related to income refer to
    
    government subsidies other than those related to assets.
    
    The company divides government subsidies into specific standards related to assets as follows: the use of the money
    
    is clearly defined in the government documents, and the direction in which the money is expected to be used is
    
    expected to form the relevant assets.
    
    The company divides the government subsidy into specific criteria related to revenue as follows: the use is not
    
    specified in the government documents, and the money is expected to be used in the direction of supplementary
    
    liquidity.
    
    If the subsidy object is not clearly specified in the government documents, the company classifies the government
    
    subsidy as asset-related or income-related judgment on the basis of: except that the company designates its use as
    
    asset-related, it will be included in the profits and losses of the current period.
    
    2. Confirm time point.
    
    When the relevant government subsidy is received, it shall be recognized as the government subsidy.
    
    3. Accounting treatment.
    
    Government subsidies related to assets shall write down the book value of the related assets or be recognized as
    
    deferred income. If it is recognized as deferred income, it shall be recorded into the profits and losses of the current
    
    period according to a reasonable and systematic method during the useful life of the relevant assets (other income if
    
    it is related to the daily activities of the company; non-operating income if it has nothing to do with the daily
    
    activities of the company);
    
    Government subsidies related to revenue, which are used to compensate the Company for related costs or losses in
    
    subsequent periods, shall be recognized as deferred income, and during the period during which the relevant costs or
    
    losses are recognized, it shall be included in the profits and losses of the current period (those related to the daily
    
    activities of the Company, other income; non-operating income if not related to the daily activities of the Company)
    
    or write-off related costs or losses; If it is used to compensate for the related costs or losses incurred by the Company,
    
    it shall be directly included in the profits and losses of the current period (those related to the daily activities of the
    
    Company shall be included in other income; those not related to the daily activities of the Company shall be
    
    included in non-operating income) or offset by related costs or losses.
    
    27. Deferred income tax assets/deferred income tax liabilities.
    
    The deferred income tax assets recognized as deductible temporary differences shall be limited to the amount of
    
    taxable income that is likely to be obtained in the future period to offset the deductible temporary differences. For
    
    deductible losses and tax credits that can be carried forward in subsequent years, the corresponding deferred income
    
    tax assets are recognized to the extent that future taxable income is likely to be used to offset deductible losses and
    
    tax credits.
    
    For taxable temporary differences, except in special circumstances, deferred income tax liabilities shall be
    
    recognized.
    
    Special cases in which deferred income tax assets or deferred income tax liabilities are not recognized include:
    
    initial recognition of goodwill; other transactions or events that occur other than a business merger that affect neither
    
    accounting profits nor taxable income (or deductible losses).
    
    When there is a legal right to settle in net, and it is intended to settle assets in net or to acquire assets and liquidate
    
    liabilities at the same time, the current income tax assets and current income tax liabilities shall be reported with the
    
    net amount after offsetting.
    
    When you have the legal right to settle current income tax assets and current income tax liabilities with net amount,
    
    and deferred income tax assets and deferred income tax liabilities are related to the income tax levied by the same
    
    tax collection and administration department on the same taxpayer or on different taxpayers, but during the period of
    
    reversal of each important deferred income tax asset and liability in the future, When the taxpayers involved intend
    
    to settle the current income tax assets and liabilities with net amount or acquire assets and pay off liabilities at the
    
    same time, the deferred income tax assets and deferred income tax liabilities shall be reported as the net amount after
    
    offsetting.
    
    28. Lease
    
    (1) Accounting treatment method of operating lease
    
    (1) The lease fee paid by the company for renting assets shall be apportioned on the straight-line method over the
    
    entire lease period without deducting the rent-free period and included in the current expenses. The initial direct
    
    costs paid by the company related to the lease transaction are included in the current expenses.
    
    When the asset lessor bears the expenses related to the lease that should be borne by the company, the company
    
    deducts part of the expenses from the total rent, and allocates the deducted rental expenses within the lease period to
    
    be included in the current expenses.
    
    (2) The lease fee charged by the company for the lease of assets shall be apportioned on the straight-line method
    
    over the entire lease period without deducting the rent-free period, and shall be recognized as lease-related income.
    
    The initial direct costs related to the lease transaction paid by the company are included in the current expenses; if
    
    the amount is larger, they are capitalized and included in the current income in installments on the same basis as the
    
    lease-related revenue recognition throughout the entire lease period.
    
    When the company has undertaken the lease-related expenses that should be borne by the lessee, the company
    
    deducts this part of the total rental income from the rent, and allocates the deducted rental expenses within the lease
    
    period.
    
    (2) The accounting treatment of financial leasing.
    
    (1) Financing leased-in assets: at the beginning of the lease, the company takes the lower of the fair value of the
    
    leased assets and the present value of the minimum lease payment as the accounting value of the leased asset, and
    
    the minimum lease payment as the accounting value of long-term payables, the difference is regarded as an
    
    unrecognized financing expense. The company uses the effective interest rate method to amortize the unrecognized
    
    financing expenses during the lease period of the asset, which shall be included in the financial expenses. The initial
    
    direct expenses incurred by the company shall be included in the value of the leased assets.
    
    (2) Financing leased-out assets: at the beginning of the lease, the company recognizes the difference between the
    
    sum of the unsecured residual value of the financial lease receivable and its present value as unrealized financing
    
    income and as lease income in each period in which the rent is received in the future. The initial direct expenses
    
    incurred by the company related to the rental transaction shall be included in the initial measurement of the financial
    
    lease receivable and reduce the amount of income recognized during the lease term.
    
    29. Other important accounting policies and accounting estimates.
    
    1. Termination of operation.
    
    Termination of operation is a separable component that meets one of the following conditions, and has been
    
    disposed of by the Company or classified as holding for sale by the Company:
    
    (1) The component represents a separate major business or a separate major area of business;
    
    (2) This component is part of an associated plan to dispose of a separate major business or a separate major business
    
    area;
    
    (3) The component is a subsidiary acquired exclusively for resale.
    
    2. Segment report.
    
    The company determines the operating segment on the basis of the internal organizational structure, management
    
    requirements and internal reporting system, determines the reporting segment and discloses the segment
    
    information on the basis of the operating segment.
    
    Operating segment refers to the components of the company that meet the following conditions at the same time:
    
    (1) This component can generate income and expenses in daily activities;
    
    (2) The management of the company can regularly evaluate the operating results of this component in order to
    
    decide to allocate resources to it and evaluate its performance;
    
    (3) The company can obtain relevant accounting information such as financial position, operating results and cash
    
    flow of this component. If two or more operating divisions have similar economic characteristics and meet certain
    
    conditions, they can be merged into one operating segment.
    
    30. Changes in important accounting policies and accounting estimates.
    
    (1) Important accounting policy changes.
    
    □ Applicable √ Not applicable
    
    (2) Changes in important accounting estimates
    
    □ Applicable √ Not applicable
    
    (3) Implementation of New Income Guidelines for the first time since 2020, Adjustments to New Lease
    
    Guidelines for Initial Implementation of Projects related to Financial Statements at the Beginning of the
    
    Year
    
    Applicable
    
    Whether adjustments need to be adjusted for balance sheet subjects at the beginning of year
    
    √ Yes □ No
    
    Consolidated balance sheet.
    
    Unit: yuan
    
             Item             December31,2019           January1,2020            Adjustinteger
    Current assets:
    Monetary funds                    2,356,703,434.60           2,356,703,434.60
    Settlement provisions
    Dismantling funds
    Transactional financialassets           1,164,039,381.59           1,164,039,381.59
    Derivative financialassets
    Notes receivable
    Accounts receivable                  597,431,210.02            597,431,210.02
    Receivable financing                  55,447,099.32             55,447,099.32
    Advance payment                    25,901,123.85             25,901,123.85
    Premium receivable
    Receivable reinsurance
    account
    Provision forreinsurance
    contract receivable
    Other receivables                     79,573,114.49             79,573,114.49
    Of which:interestreceivable               721,935.36               721,935.36
    Dividend receivable
    Buy backresalefinancial
    assets
    Inventory                         671,432,701.11            671,432,701.11
    Contract assets
    Holding assetsforsale
    Non-current assetsdue                   356,983.48               356,983.48
    within oneyear
    Other currentassets                   22,346,314.29             22,346,314.29
    Total currentassets                  4,973,231,362.75           4,973,231,362.75
    Non-current assets:
    Loans andadvances
    Debt investment
    Other debtinvestments
    Long-term receivables
    Long-term equityinvestment             72,372,355.03             72,372,355.03
    Investment inotherequity
    instruments
    Other non-currentfinancial              20,559,159.34             20,559,159.34
    assets
    Investment realestate
    Fixed assets                        585,754,900.75            585,754,900.75
    Project underconstruction                4,839,241.48              4,839,241.48
    Productive biologicalassets
    oil andgasasset
    Right-of-use asset
    Intangible assets                     249,882,429.53            249,882,429.53
    Development expenditure
    Goodwill                          306,633,631.93            306,633,631.93
    Long-term prepaidexpenses               8,699,236.33              8,699,236.33
    Deferred incometaxassets               49,025,021.61             49,025,021.61
    Other non-currentassets                 2,518,818.56              2,518,818.56
    Total non-currentassets               1,300,284,794.56           1,300,284,794.56
    total assets                       6,273,516,157.31           6,273,516,157.31
    Current liabilities:
    Short-term loan                     117,888,353.14            117,888,353.14
    Borrowing fromtheCentral
    Bank
    Borrowed funds
    Transactional financial
    liabilities
    Derivative financialliabilities
    Notes payable                       43,973,859.51             43,973,859.51
    Accounts payable                    472,862,744.45            472,862,744.45
    Advance payment                    286,511,724.62                                  -286,511,724.62
    Contract liabilities                                          286,511,724.62            286,511,724.62
    Selling backfinancialassets
    Deposits andinterbank
    deposit
    Agent tradingsecurities
    Agent underwritingsecurities
    Salary payabletostaffand              106,677,329.95            106,677,329.95
    workers
    Taxes payable                       48,928,229.51             48,928,229.51
    Other payables                      90,950,443.16             90,950,443.16
    Of which:interestpayable                1,410,745.58              1,410,745.58
    Dividend payable
    Fees andcommissions
    Reinsurance accounts
    payable
    Holding liabilitiesforsale
    Non-current liabilitiesdue              353,399,238.29            353,399,238.29
    within oneyear
    Other currentliabilities
    Total currentliabilities               1,521,191,922.63           1,521,191,922.63
    Non-current liabilities:
    Insurance contractreserve
    Long termloan                      224,146,667.48            224,146,667.48
    Bonds payable
    Of which:preferredstock
    Perpetual debt
    Lease liability
    Long-term payables
    Long-term salarypayableto              12,252,657.36             12,252,657.36
    staff andworkers
    Estimated liabilities                   78,650,466.48             78,650,466.48
    Deferred income                     18,275,808.90             18,275,808.90
    Deferred incometax                   16,915,692.91             16,915,692.91
    liabilities
    Other non-currentliabilities
    Total non-currentliabilities              350,241,293.13            350,241,293.13
    Total Liabilities                    1,871,433,215.76           1,871,433,215.76
    Owners' equity:
    Share capital                      1,838,647,096.00           1,838,647,096.00
    Other equityinstruments
    Of which:preferredstock
    Perpetual debt
    Capital reserve                    3,862,377,838.84           3,862,377,838.84
    Minus: treasuryshares                 160,088,925.60            160,088,925.60
    Other comprehensiveincome             24,971,085.32             24,971,085.32
    Special reserves
    Surplus reserve                      51,830,974.45             51,830,974.45
    General riskpreparation
    Undistributed profit                 -1,280,673,461.14          -1,280,673,461.14
    Total equityattributableto             4,337,064,607.87           4,337,064,607.87
    owners ofparentcompany
    Minority shareholderinterest             65,018,333.68             65,018,333.68
    Total owner'sequity                 4,402,082,941.55           4,402,082,941.55
    Total LiabilitiesandOwner's           6,273,516,157.31           6,273,516,157.31
    Equity
    
    
    Adjustment description.
    
    Parent company balance sheet.
    
    Unit: yuan
    
             Item             December31,2019           January1,2020            Adjustinteger
    Current assets:
    Monetary funds.                    1,899,380,375.38           1,899,380,375.38
    Transactional financial               1,163,000,000.00           1,163,000,000.00
    assets.
    Derivative financialassets.
    Notes receivable.
    Accounts receivable.                  151,096,214.10            151,096,214.10
    Receivable financing.                  51,139,322.12             51,139,322.12
    Advance payment.                     3,233,763.27              3,233,763.27
    Other receivables.                    36,670,496.12             36,670,496.12
    Of which:interestreceivable.
    Dividend receivable.
    Inventory.                         111,225,290.10            111,225,290.10
    Contract assets.
    Holding assetsforsale.
    Non currentassetsduewithin               356,983.48               356,983.48
    one year.
    Other currentassets.                    4,961,417.06              4,961,417.06
    Total currentassets.                 3,421,063,861.63           3,421,063,861.63
    Non-current assets:
    Debt investment.
    Other debt  investments.
    Long-term receivables.
    Long-term equityinvestment.            439,638,782.00            439,638,782.00
    Investment inotherequity
    instruments.
    Other non-currentfinancial
    assets.
    Investment realestate.
    Fixed assets.                       340,791,611.76            340,791,611.76
    Project underconstruction.                  83,070.80                83,070.80
    Productive biologicalassets.
    Oil andgasassets.
    Right-of-use assets.
    Intangible assets.                     60,733,612.10             60,733,612.10
    Development expenditure.
    Goodwill.
    Long-term prepaidexpenses.              3,335,014.92              3,335,014.92
    Deferred incometaxassets.               4,923,465.18              4,923,465.18
    Other non-currentassets.                  585,189.00               585,189.00
    Total non-currentassets.                850,090,745.76            850,090,745.76
    Total assets.                      4,271,154,607.39           4,271,154,607.39
    Current liabilities:
    Short-term loan.                      90,000,000.00             90,000,000.00
    Transactional financial
    liabilities.
    Derivative financial
    liabilities.
    Notes payable.                       43,843,859.51             43,843,859.51
    Accounts payable.                    70,687,704.41             70,687,704.41
    Advance payment.                    17,451,789.10                                   -17,451,789.10
    Contract liabilities.                                          17,451,789.10             17,451,789.10
    Salary payabletostaffand               26,144,254.56             26,144,254.56
    workers.
    Taxes payable.                       1,921,575.57              1,921,575.57
    Other payables.                      50,214,415.95             50,214,415.95
    Of which:interestpayable.
    Dividend payable.
    Holding liabilitiesforsale.
    Non-current liabilitiesdue
    within oneyear.
    Other currentliabilities.
    Total currentliabilities.                300,263,599.10            300,263,599.10
    Non-current liabilities:
    Long-term loan.
    Bonds payable.
    Of which:preferredstock.
    Perpetual debt.
    Lease liability.
    Long-term payable.
    Long-term salarypayableto
    staff andworkers.
    Estimated liability.
    Deferred income.                     14,423,631.66             14,423,631.66
    Deferred incometaxliability.
    Other non-currentliabilities.
    Total non-currentliabilities.              14,423,631.66             14,423,631.66
    Total liabilities.                     314,687,230.76            314,687,230.76
    Owner's equity:
    Share capital.                     1,838,647,096.00           1,838,647,096.00
    Other equityinstruments.
    Of which:preferredstock.
    Perpetual debt.
    Capital reserve.                    3,608,591,602.42           3,608,591,602.42
    Minus: treasuryshares.                160,088,925.60            160,088,925.60
    Other comprehensive
    income.
    Special reserve.
    Surplus reserve.                      51,830,974.45             51,830,974.45
    Undistributed profit.                -1,382,513,370.64          -1,382,513,370.64
    Total owner'sequity.                 3,956,467,376.63           3,956,467,376.63
    Total liabilitiesandowners'            4,271,154,607.39           4,271,154,607.39
    equity
    
    
    Adjustment description.
    
    On July 5, 2017, Ministry of Finance issued Enterprise Accounting Standards No. 14 - Income (Accounting [2017] No. 22), requiring
    
    enterprises listed simultaneously both inside and outside China, as well as enterprises listed abroad and adopting IFRS or corporate
    
    accounting standards to prepare financial statements, effective since January 1, 2018; as for other domestic listed enterprises,
    
    effective since January 1, 2020.
    
    As listed company in China, we implement new revenue guidelines in January 1, 2020. According to the requirements of new income
    
    criterion, the company will adjust project amounts related to financial statements at the beginning of 2020 according to cumulative
    
    impact number of new income criterion first, and do not adjust data for comparable period.
    
    (4) Explanation of introduction of new income standards for the first time and comparative data new lease
    
    standards retroactive adjustment since 2020
    
    □ Applicable √ Not applicable
    
    VI.Taxes.
    
    1. Main taxes and tax rates
    
            Taxcategory                            Taxbasis                          Taxrate
                            Theoutputtaxiscalculatedonthebasisoftheincomefromthesale
    Valueaddedtax             ofgoodsandtaxableservicescalculatedaccordingtotheprovisions  13%,6%
                            ofthetaxLaw.afterdeductingtheinputtaxallowedtobedeductedin
                            thecurrentperiod,thedifferenceisvalue-addedtaxpayable.
    Urban    maintenance    andCalculatedandleviedonthebasisofvalue-addedtaxand
    construction tax             consumptiontaxactuallypaid                           7%,5%
    corporate incometax          Calculatedandleviedonthebasisoftaxableincome            Seethetablebelow
    Additional educationfees       Calculatedandleviedonthebasisofvalue-addedtaxand         3%
                            consumptiontaxactuallypaid
    Local educationaddition       Calculatedandleviedonthebasisofvalue-addedtaxand         2%
                            consumptiontaxactuallypaid
                            Ifitisleviedadvalorem,itshallbepaidat1.2%oftheremaining
    Property tax                valueafterdeducting30%oftheoriginalvalueofthepropertyat    1.2%,12%
                            once;ifleviedfromrent,itshallbepaidat12%oftherentalincome.
    Land usetax               Theareaoflandregisteredinthelanduserightcertificate         3yuanpersquaremeter
    
    
    If there are different tax payers of enterprise income tax rates, the disclosure shall be explained.
    
                   Name oftaxsubject                                Incometaxrate
    Our company*1                                15%
    Dongfang Precision(HK)                         16.50%
    Dongfang Precision(Netherland)                    20%
    Fosber Group                                  24%
    Fosber US                                    21%
    Fosber Tianjin                                  25%
    Shunyi Investment                               25%
    Parsun Power*2                                 15%
    Italy EDF                                     24%
    Fosber Asia*3                                  15%
    Tiruna Group                                  28%
    Tiruna S.L.U.                                  28%
    TratatamientosIndustrialesTirunaS.A.U.                28%
    Tiruna Brazil                                   34%
    Tiruna FranceSARL                              15%
    SCI Candan                                   15%
    Tiruna UKLtd                                  19%
    Guangdong Tiruna                               25%
    Tiruna US                                     21%
    
    
    2. Tax preference.
    
    * 1 The Company passed the review of the High-tech Enterprises of Guangdong Provincial Department of Science
    
    and Technology, Guangdong Provincial Department of Finance, Guangdong State Taxation Bureau and Guangdong
    
    Local Taxation Bureau in November 2017 and obtained the jointly issued "High-tech Enterprise Certificate"
    
    (Certificate No.: GR201744002995), which is valid for three years. The enterprise income tax shall be calculated
    
    and paid at a reduced tax rate of 15% within the period of validity.
    
    * 2 Parsun Power, a subsidiary of the company, passed the review of high-tech enterprises of Jiangsu Provincial
    
    Department of Science and Technology, Jiangsu Provincial Department of Finance and Jiangsu State Taxation
    
    Bureau on November 7, 2019 and obtained the "High-tech Enterprise Certificate" (Certificate No.:
    
    GR201932000339), which is valid for three years, and the enterprise income tax shall be reduced by 15% within the
    
    period of validity.
    
    * 3 Fosber Asia, a subsidiary of the Company, approved and obtained the "High-tech Enterprise Certificate"
    
    (Certificate No.: GR201844003599) jointly issued by the Department of Science and Technology of Guangdong
    
    Province, the Department of Finance of Guangdong Province and the State Taxation Bureau of Guangdong
    
    Province on November 28, 2018, valid for three years, and the enterprise income tax shall be reduced by 15% during
    
    the period of validity.
    
    VII. Project Notes for Consolidated Financial statements.
    
    1. Monetary funds.
    
    Unit: yuan
    
                 Item                      Endingbalance                  Openingbalance.
              Cashonhand                               333,466.53                      249,951.68
              Bank deposit                           1,518,673,673.17                 2,224,849,135.20
           Other monetaryfunds                          420,994,536.79                   131,604,347.72
                 Total                              1,940,001,676.49                 2,356,703,434.60
      Of which:thetotalamountofmoney                     310,445,350.28                   340,057,779.28
             depositedabroad
    
    
    Other instructions.
    
    Of which, the details of the currency funds that are restricted by mortgage, pledge or freeze, as well as those placed abroad and
    
    subject to restrictions on the repatriation of funds are as follows:
    
    Unit: yuan
    
                       Item                         Endingbalance       Balanceattheendoflastyear.
    Bankacceptancemargin                                      5,433,986.23             4,397,386.30
    L/CGuaranteedeposits                                       3,128,028.34                    0.00
    Loanguarantee                                          411,891,293.51           124,024,093.46
    Pledgedtimedeposit                                          532,518.53               480,000.00
    Depositforprepaidaccount.                                                            526,000.00
    Long-termdepositforsettlementandsaleofforeign                                             551,217.45
    exchange.
    Total                                                 420,985,826.61           129,978,697.21
    
    
    2. Transactional financial assets.
    
    Unit: yuan
    
                 Item                      Endingbalance                  Openingbalance.
    Financial assetsmeasuredatfairvalueand
    whose changesareincludedintheprofits                       464,871.13                    1,039,381.59
    and lossesofthecurrentperiod.
    Of which:
    Derivative financialassets                                 464,871.13                    1,039,381.59
    Financial assetsthataredesignatedtobe
    measured atfairvalueandwhosechanges                  1,493,455,721.12                 1,163,000,000.00
    are includedintheprofitsandlossesofthe
    current period.
    Of which:
    Bank investmentinwealthmanagement                    1,393,209,890.44                 1,163,000,000.00
    products
    Asset ManagementPortfolio                            100,245,830.68
    Total                                           1,493,920,592.25                 1,164,039,381.59
    
    
    Other instructions:
    
    3. Notes receivable.
    
    (1) classified presentation of notes receivable.
    
    Unit: yuan
    
                 Item                      Endingbalance                  Openingbalance.
    
    
    Unit: yuan
    
                               Ending balance                         Openingbalance
        Category       Bookbalance   Baddebtprovision  Book    Bookbalance    Baddebtprovision   Book
                    Amount Percenta Amount  Withdra   value   Amount Percentag  Amount  Withdraw  value
                             ge          walratio                  e             alratio
      Ofwhich:
      Ofwhich:
    
    
    Make provision for bad debts on a single basis:
    
    Unit: yuan
    
                                                   Ending balance
           Name
                          Bookbalance       Baddebtprovision   Proportionofprovision Justificationofprovision
    
    
    Provision for uncollectible account according to combination:
    
    Unit: yuan
    
                                                     Ending balance
             Name
                                Book balance           Baddebtprovision          Withdrawalratio
    
    
    Description of the basis for this composition:
    
    If you provide bad debts for receivables according to expected credit loss general model please refer to other accounts receivable
    
    disclosure methods to disclose relevant information about bad debts preparation:
    
    □ Applicable √ Not applicable
    
    (2) Preparation of bad debts for purposes of provision, recovery or reversal during this period
    
    Provision for uncollectible account provision during this period:
    
    Unit: yuan
    
                                          Amountofchangeduringthisperiod
       Category    Openingbalance                                                   Endingbalance
                                Provision   Recoverorreturn   Write-offs       Other
    
    
    Of these loans who are important for recovery or reversal of bad debts during this period:
    
    □ Applicable √ Not applicable
    
    (3) Notes receivable pledged by the company in the end
    
    Unit: yuan
    
                        Item                               Amountpledgedatendofperiod
    
    
    (4) Notes receivable that have been endorsed or discounted by the company at the end of the period and
    
    have not yet matured on the balance sheet date.
    
    Unit: yuan
    
                 Item             Terminationrecognitionamountattheend  Unterminatedrecognitionamountatthe
                                           oftheperiod.                   endoftheperiod.
    Bank acceptancebill.                                  30,175,863.86
    Total                                             30,175,863.86
    
    
    Notes transferred by the company to accounts receivable in the end due to non-performance by the drawer.
    
    Unit: yuan
    
                        Item                           Amountpayableforfinalconversionreceivable
    
    
    Other instructions.
    
    (6) Actual write-off of notes receivable during this period
    
    Unit: yuan
    
                        Item                                    Write-offsamount
    
    
    Of which, key notes receivable write offs:
    
    Unit: yuan
    
                                                                              Whetherpayments
        Unitname      Natureofnotes   Write-offsamount     Reasonsfor    Write-offprocedures  aregeneratedby
                      receivable                       write-offs        performed        associated
                                                                                transactions
    
    
    Description of the cancellation of notes receivable:
    
    4. Accounts receivable
    
    (1) Classified disclosure of accounts receivable
    
    Unit: yuan
    
                               Ending balance                         Openingbalance
        Category       Bookbalance   Baddebtprovision  Book    Bookbalance    Baddebtprovision
                    Amount Percenta Amount  Withdra   value   Amount Percentag Amount Withdraw Bookvalue
                             ge          walratio                  e            alratio
    Accounts receivable
    that makeprovision  1,105,12   0.21% 1,105,12 100.00%    0.001,088,998   0.18% 1,088,998 100.00%      0.00
    for baddebtsona       3.97           3.97                   .63            .63
    single basis
    Of which:
    Accounts receivable
    for whichindividual
    amounts are
    significant and
    provision forbad
    debts ismade
    separately.
    Accounts receivable
    in whichindividual
    amounts arenot     1,105,12        1,105,12               1,088,998        1,088,998
    significant but         3.97   0.21%    3.97 100.00%    0.00     .63   0.18%     .63 100.00%      0.00
    provision forbad
    debts ismade
    separately.
    Accounts receivable
    made bycombination 534,610,  99.79% 18,043,3   3.38% 516,566,9613,715,6  99.82% 16,284,41   2.65% 597,431,21
    of provisionsforbad   287.94          05.33          82.61   20.08            0.06             0.02
    debts
    Of which:
    Age analysis       119,987,  22.39% 5,257,14   4.38% 114,730,1110,307,0  17.94% 4,164,569   3.78% 106,142,44
    combination         280.58           8.82          31.76   14.62            .70             4.92
    Individual         414,623,        12,786,1        401,836,8503,408,6        12,119,84        491,288,76
    identification        007.36  77.40%   56.51   3.08%   50.85   05.46  81.88%    0.36   2.41%      5.10
    combination
    Total            535,715, 100.00% 19,148,4   3.57% 516,566,9614,804,6 100.00% 17,373,40   2.83% 597,431,21
                     411.91          29.30          82.61   18.71            8.69             0.02
    
    
    Provision for bad debts on a single basis: accounts receivable that are not significant in a single amount but set aside the provision for
    
    bad debts separately.
    
    Unit: yuan
    
                                                   Ending balance
           Name
                          Bookbalance       Baddebtprovision     Withdrawalratio      Withdrawalreason
    TECHSERVICE-KHAB                                                     Thecustomergoes
    AROVSK CJSC               1,105,123.97         1,105,123.97           100.00%bankruptandisunableto
                                                                          payoffthematuringdebt
    Total                      1,105,123.97         1,105,123.97--                --
    
    
    Make provision for bad debts on a single basis:
    
    Unit: yuan
    
                                                   Ending balance
           Name
                          Bookbalance       Baddebtprovision   Withdrawalratio      Withdrawalreason
    
    
    Provision for bad debts by combination: aging analysis combination.
    
    Unit: yuan
    
                                                     Ending balance
             Name
                                Book balance           Baddebtprovision          Withdrawalratio
    Aging analysiscombination              119,987,280.58             5,257,148.82                 4.38%
    Of which:
    Within 1year(including1year)            100,522,179.75             2,393,951.31                 2.38%
    1 to2years(inclusive)                   15,113,709.21              755,685.46                 5.00%
    2 to3years(inclusive)                   1,989,926.58              198,992.66                 10.00%
    3 to4years(inclusive)                     196,868.19               59,060.46                 30.00%
    4 to5years(inclusive)                     630,275.85              315,137.93                 50.00%
    More than5years                      1,534,321.00             1,534,321.00                100.00%
    Total                              119,987,280.58             5,257,148.82--
    
    
    The description that determines the basis of the combination:
    
    Set aside provisions for bad debts according to the combination:Individual identification combination
    
    Unit: yuan
    
                                                     Ending balance
             Name
                                Book balance           Baddebtprovision          Withdrawalratio
    Individual identification                 414,623,007.36            12,786,156.51                 3.08%
    combination
    Total                              414,623,007.36            12,786,156.51--
    
    
    The description that determines the basis of the combination:
    
    Set aside provisions for bad debts according to the combination:
    
    Unit: yuan
    
                                                     Ending balance
             Name
                                Book balance           Baddebtprovision          Withdrawalratio
    
    
    The description that determines the basis of the combination:
    
    If the provision for bad debts of accounts receivable is calculated according to the general model of expected credit loss, please refer
    
    to the disclosure methods of other receivables to disclose the relevant information about the provision for bad debts:
    
    □ Applicable √Not applicable
    
    Disclosure by age.
    
    Unit: yuan
    
                      Accountage                                  Endingbalance
    Within 1year(including1year)                                                       466,441,151.15
    1 to2years                                                                     44,909,092.74
    2 to3years                                                                     10,625,310.69
    More than3years                                                                 13,739,857.33
    3 to4years                                                                      3,735,333.99
    4 to5years                                                                      2,086,291.88
    More than5years                                                                  7,918,231.46
    Total                                                                         535,715,411.91
    
    
    (2) Provision for bad debts made, recovered or transferred in the current period.
    
    Provision for bad debts in the current period:
    
    Unit: yuan
    
                                              Currentchangeamount
       Category    Openingbalance              Totakebackor                           Endingbalance
                                Provision      turnback.      Write-off       Other
    Make provision
    for baddebtsona    1,088,998.63                                           16,125.34    1,105,123.97
    single basis
    Set aside
    provisions forbad
    debts according     16,284,410.06    1,589,868.74      33,482.69      12,956.13     215,465.35   18,043,305.33
    to the
    combination.
    Total            17,373,408.69    1,589,868.74      33,482.69      12,956.13     231,590.69   19,148,429.30
    
    
    Of which, the amount of bad debts to be recovered or transferred back in the current period is important:
    
    Unit: yuan
    
               Unitname                Recoverorreturntheamount              Recoverymode
    
    
    (3)The actual write-off of accounts receivable in the current period.
    
    Unit: yuan
    
                        Item                                     Write-offamount
    Actual write-offofaccountsreceivable                                                      12,956.13
    
    
    Of which, the important write-off of accounts receivable:
    
    Unit: yuan
    
                                                                              Whetherpayments
        Unitname     Natureofaccounts  Write-offsamount     Reasonsfor    Write-offprocedures  aregeneratedby
                      receivable                       write-offs        performed        associated
                                                                                transactions
    
    
    Description of the write-off of accounts receivable:
    
    (4)The status of the top five accounts receivable collected by the defaulting party at the end of the period.
    
    Unit: yuan
    
                        Ending balanceofaccounts     Asapercentageofthetotal    Endingbalanceofprovisionfor
          Unitname              receivable         balanceofaccountsreceivableat         baddebts
                                                  theendoftheperiod
    Client Ⅰ.                        30,684,267.15                   5.73%
    Client II.                        22,606,055.60                   4.22%
    Client III.                        21,833,416.99                   4.08%
    Client IV.                       21,671,015.83                   4.05%              1,083,550.79
    Client Ⅴ.                        12,914,950.86                   2.41%
    Total                           109,709,706.43                  20.49%
    
    
    (5) Termination of recognized receivables due to transfer of financial assets.
    
    (6) Transfer of receivables and continuing involvement in assets liabilities.
    
    Other instructions:
    
    5. Accounts receivable financing.
    
    Unit: yuan
    
                 Item                      Endingbalance                  Openingbalance
    Notes receivable                                     39,532,463.47                   55,447,099.32
                 Total                                39,532,463.47                   55,447,099.32
    
    
    Changes in the current period of financing of receivables and changes in fair value
    
    □ Applicable √Not applicable
    
    If the financing impairment provision for receivables is calculated according to the general model of expected credit loss, please refer
    
    to the disclosure methods of other receivables to disclose the relevant information about the impairment provision:
    
    □ Applicable √Not applicable
    
    Other instructions:
    
    6. Advance payment.
    
    (1) Advance payment are shown by age.
    
    Unit: yuan
    
                                  Endingbalance                        Openingbalance
         Accountage
                           Amount           Percentage           Amount           Percentage
    Within 1year                50,976,542.32            94.96%        24,221,885.95            93.52%
    1 to2years                  2,412,644.69             4.49%         1,367,636.64             5.28%
    2 to3years                    35,566.61             0.07%           56,688.15             0.22%
    More than3years               255,630.61             0.48%          254,913.11             0.98%
    Total                      53,680,384.23        --                25,901,123.85        --
    
    
    Explanation of the reasons for the non-timely settlement of advance payment with an age of more than one year and important
    
    amounts:
    
    (2) The advance payment of the top five balances collected by the prepaid object at the end of the period
    
    According to the ending balance collected by prepaid objects, the sum of five advance payments amounts to 19,012,133.42,
    
    accounting for 35% of total advance balance totals.
    
    Other instructions:
    
    7. Other receivables.
    
    Unit: yuan
    
                 Item                      Endingbalance                  Openingbalance
    Interest receivable                                     3,486,564.94                      721,935.36
    Other receivables                                    80,462,685.25                   78,851,179.13
    Total                                             83,949,250.19                    79,573,114.49
    
    
    (1) Interest receivable.
    
    1) Classification of interest receivable.
    
    Unit: yuan
    
                 Item                      Endingbalance                  Openingbalance
    Time deposit                                        3,486,564.94                      721,935.36
    Total                                              3,486,564.94                      721,935.36
    
    
    2) Important overdue interest
    
    Unit: yuan
    
                                                                           Whether impairment
          Loanunit         Endingbalance        Overduetime      Reasonsforoverdue      happensandits
                                                                             judgementbasis
    
    
    Other instructions:
    
    3) Provision for bad debts
    
    □ Applicable √ Not applicable
    
    (2) Dividends Receivable
    
    1) Classification of dividend receivable
    
    Unit: yuan
    
          Project (orinvestedunit)                Endingbalance                  Openingbalance
    
    
    2) Important dividends receivable with an age of more than 1 year
    
    Unit: yuan
    
                                                            Reasonsfornot     Whetherimpairment
     Project(orinvestedunit)    Endingbalance        Accountage          reclaiming         happensandits
                                                                             judgementbasis
    
    
    3) Provision for bad debts
    
    □ Applicable √ Not applicable
    
    Other instructions:
    
    (3) Other receivables.
    
    1) Classification of other receivables by nature of the amount.
    
    Unit: yuan
    
            Nature ofpayment           Bookbalanceattheendoftheperiod         Openingbookbalance
    Current payment                                      3,874,804.23                    1,587,414.17
    Margin, Deposit                                      5,494,022.30                   10,743,022.49
    Export taxrebate                                      2,123,129.21                    2,110,960.29
    Prepaid servicecharge                                  8,007,516.84                    5,314,977.17
    Other                                             20,237,781.00                    14,117,024.25
    Equity transfer                                      41,795,250.00                   41,031,375.00
    Employee loans,pettycash                               1,793,231.27                      986,143.77
    Performance compensation                                500,000.00                    8,200,000.00
    Total                                             83,825,734.85                   84,090,917.14
    
    
    2) Provision for bad debts.
    
    Unit: yuan
    
                          Phase 1            Phase2              Phase3
     Provisionforbaddebts  Expectedcreditloss  Expectedcreditlossover   Expectedcreditlossover        Total
                        overthenext12   theentirelifetime(nocredit  theentirelifetime(credit
                           months        impairmentoccurs)    impairmenthasoccurred)
    Balance ofJanuary1,         2,779,738.01          2,460,000.00                           5,239,738.01
    2020
    The balanceofJanuary1,
    2020 isinthecurrent         ——              ——                ——              ——
    period.
    Current provision             486,001.13                                               486,001.13
    Current reversal               90,928.43          2,310,000.00                           2,400,928.43
    Other change                38,238.89                                                38,238.89
    Balance ofJune30,          3,213,049.60            150,000.00                           3,363,049.60
    2020
    
    
    Changes in the book balance of significant changes in the loss provision in the current period
    
    □ Applicable √ Not applicable
    
    Disclosure by age
    
    Unit: yuan
    
                      Accountage                                  Endingbalance
    Within 1year(including1year)                                                        35,519,897.09
    1 to2years                                                                      3,113,912.23
    2 to3years                                                                     43,335,982.40
    More than3years                                                                  1,855,943.13
    3 to4years                                                                       996,268.52
    4 to5years                                                                       424,057.52
    More than5years                                                                   435,617.09
    Total                                                                          83,825,734.85
    
    
    3) Bad debt provision in the current period of withdrawal, recovery or reversal.
    
    Provision for bad debts in the current period:
    
    Unit: yuan
    
                                        Amount ofchangesinthecurrentperiod
       Category    Openingbalance              Takebackorturn                          Endingbalance
                                Accrual         back        Writeoff        Other
    Provision forbad
    debts bysingle      2,460,000.00                2,310,000.00                              150,000.00
    item
    Provision forbad
    debts by          2,779,738.01     486,001.13      90,928.43                  38,238.89    3,213,049.60
    combination
    Total             5,239,738.01     486,001.13    2,400,928.43                  38,238.89    3,363,049.60
    
    
    Of which the amount of bad debt provisions transferred or recovered is important:
    
    Unit: yuan
    
               Unitname                 Returnorrecoveryamount               Recoverymode
    
    
    4) Actual write-off of other receivables during this period.
    
    Unit: yuan
    
                        Item                                    Write-offsamount
    
    
    Key other receivables write-offs:
    
    Unit: yuan
    
                                                                              Whetherpayments
        Unitname      Natureofother   Write-offsamount     Reasonsfor    Write-offprocedures  aregeneratedby
                      receivables                      write-offs        performed        associated
                                                                                transactions
    
    
    Description of the cancellation of other receivables:
    
    5) Other receivables in the top five of the ending balance collected by the arrears.
    
    Unit: yuan
    
                                                               Proportion oftotal  Baddebtpreparation
       Unit  name    Natureofpayment   Endingbalance     Accountage     endingbalanceof    periodending
                                                                otherreceivables      balance
    Client Ⅰ.       Equitytransfer         41,795,250.002-3years                  49.70%      2,051,568.75
    Client II.        Advancepayment        2,388,300.00Within1year               2.84%
    Client III.       Insurance             1,430,467.83Within1year               1.70%
    Client IV.       Pettycash             1,036,920.25Within1year               1.23%
    Client Ⅴ.       Currentpayment         1,010,518.631-2years                   1.20%
    Total                  --            47,661,456.71       --                56.67%      2,051,568.75
    
    
    8.Inventory
    
    Whether companies need to comply with disclosure requirements in real estate industry.
    
    No
    
    (1) Inventory classification.
    
    Unit: yuan
    
                              Endingbalance                           Openingbalance
                              Inventoryfalling                          Inventoryfalling
                              pricereserveor                           pricereserveor
         Item                   impairment                              impairment
                  Bookbalance.   preparationof    Bookvalue.    Bookvalue.    preparationof    Bookvalue.
                                contract                                contract
                               performance                             performance
                                 costs.                                  costs.
    Raw materials.    282,766,079.58   13,798,131.40  268,967,948.18  248,492,417.64   13,394,596.44  235,097,821.20
    In product.       478,075,453.30   26,681,026.34  451,394,426.96  379,351,397.96   25,945,105.34  353,406,292.62
    Inventory goods.    70,980,449.55     103,237.72   70,877,211.83   25,948,936.98     103,897.01   25,845,039.97
    Send outgoods.    33,445,506.01               33,445,506.01   43,439,406.00               43,439,406.00
    Commissioned
    processing         1,248,805.61                1,248,805.61    1,873,908.29                1,873,908.29
    materials.
    Semi-finished      12,709,989.34     175,245.95   12,534,743.39   12,014,421.40     244,188.37   11,770,233.03
    product.
    Total           879,226,283.39   40,757,641.41  838,468,641.98  711,120,488.27   39,687,787.16  671,432,701.11
    
    
    (2) Inventory falling price reserve and impairment preparation of contract performance costs.
    
    Unit: yuan
    
                             The amountincreasedinthecurrent   Reducedamountinthecurrent
                                       period                     period
         Item     Openingbalance                                                   Endingbalance
                                                        Turnbackor.
                                Provision       Other                     Other
                                                          Resale
    Raw materials.     13,394,596.44    2,382,292.84                1,978,757.89               13,798,131.40
    In product.        25,945,105.34     735,921.00                                        26,681,026.34
    Inventory goods.      103,897.01                                 659.28                 103,237.72
    Send outgoods.
    Semi-finished        244,188.37                               68,942.42                 175,245.95
    product.
    Total            39,687,787.16    3,118,213.84                2,048,359.59               40,757,641.41
    
    
    (3) The ending balance of inventory contains the capitalization amount of borrowing costs.
    
    (4) Description of amortization amount for contract performance costs
    
    9. Non-current assets maturing within one year.
    
    Unit: yuan
    
                 Item                      Endingbalance                  Openingbalance
    Long-term receivablesduewithinoneyear                                                   356,983.48
    Total                                                                            356,983.48
    
    
    Important debt investments/other debt investments.
    
    Unit: yuan
    
                                  Endingbalance                        Openingbalance
     Creditor'srightsproject.           Coupon    Real    Expiration           Coupon    Real    Expiration
                      Facevalue.    rate.   interestrate.   date.   Facevalue.   rate.   interestrate.   date.
    
    
    Other instructions:
    
    10. Other current assets.
    
    Unit: yuan
    
                 Item                      Endingbalance                  Openingbalance
    VATtobedeductedinputtax.                               243,836.30
    Value-addedtaxallowance.                               6,067,878.45                    2,209,523.18
    Prepaid tax.                                       107,403,210.35                   14,404,806.23
    Prepaid interestexpense.                                  221,013.29                      129,649.62
    Prepaid expenses.                                       40,782.78                      207,209.64
    Other.                                             6,357,246.28                    5,395,125.62
    Total                                            120,333,967.45                   22,346,314.29
    
    
    Other instructions:
    
    11. Long-term equity investment.
    
    Unit: yuan
    
     Invested Opening                    Changesinthecurrentperiod.                    Ending  Impairme
      unit.   balance                Investme                                      balance    nt
             (book                 ntprofit   Other                                 (book  provision
             value).  Makean  Reduce  andloss comprehe Changes Declarea Provision         value)   ending
                   additionalinvestmen recognize  nsive   inother   cash     for    Other          balance
                   investmen   t.    dunder  income  rightsand dividend impairme
                      t.          theequity adjustmen interests. orprofit.   nt.
                                  method.    t.
    I. JointVenture
    Foshan
    Yinglian
    Digital
    Printing
    equipmen
    t Co.,Ltd. 10,510,73               -86,657.9                                     10,424,07
    (hereinaft     5.47                     2                                         7.55
    er
    referred
    to as
    "Yinglian
    Digital")
    Subtotal  10,510,73               -86,657.9                                     10,424,07
               5.47                     2                                         7.55
    II. Combinedventure
    Jiateng   60,136,74 7,700,000        110,329.2                                     67,947,07
    robot        0.98     .00              9                                         0.27
    Talleres  1,724,878                       32,111.70                              1,756,990
    Tapre        .58                                                               .28
    Subtotal  61,861,61               110,329.2 32,111.70                              69,704,06
               9.56                     9                                         0.55
    Total    72,372,35 7,700,000        23,671.37 32,111.70                              80,128,13
               5.03      .00                                                       8.10
    
    
    Other instructions
    
    12. Other non-current financial assets.
    
    Unit: yuan
    
                 Item                      Endingbalance                  Openingbalance
    Financial assetsmeasuredatfairvalueand
    whose changesareincludedintheprofits                     17,649,624.09                   20,559,159.34
    and lossesofthecurrentperiod
    Total                                             17,649,624.09                   20,559,159.34
    
    
    Other instructions:
    
    13. Fixed assets.
    
    Unit: yuan
    
                 Item                      Endingbalance                  Openingbalance
    Fixed assets                                       569,720,809.77                   585,754,900.75
    Total                                            569,720,809.77                   585,754,900.75
    
    
    (1) The status of fixed assets.
    
    Unit: yuan
    
        Item     Housesand    machinery    Transport      Office     Electronic      Other       Total
                 buildings.    equipment.    equipment    equipment.   equipment.    equipment
    I. Theoriginal
    book value:
    1. Opening    574,397,960.97 445,755,180.38 24,705,378.27 12,882,317.00  4,918,690.55 33,476,588.51 1,096,136,115.
    balance.                                                                                68
    2.The amount
    increased inthe
    current period.
    (1) Purchase.     340,080.86  2,379,807.02   445,463.73   386,754.84   543,278.40   452,720.95  4,548,105.80
    (2) Transferof
    projects under     71,825.45  1,123,893.80                                              1,195,719.25
    construction.
    (3) Increasein
    business                   913,755.62                                               913,755.62
    consolidation.
    The impactof
    exchange rate    2,737,984.36  5,570,271.53    82,636.84                 191.69   163,080.50  8,554,164.92
    changes.
    3. Reduced
    amount inthe
    current period.
    (1) Disposalor
    scrap
    4.Ending     577,547,851.64 455,742,908.35 25,233,478.84 13,269,071.84  5,462,160.64 34,092,389.96 1,111,347,861.
    balance.                                                                                27
    2 Accumulated
    depreciation.
    1.Opening    152,930,326.96 316,051,462.47 17,885,349.67  5,284,747.59  2,617,618.04 15,611,710.20510,381,214.93
    balance.
    2.The amount
    increased inthe
    current period.
    (1)Provision.  8,848,153.57 11,972,900.62   993,681.86   761,908.19   412,961.05  1,601,926.62 24,591,531.91
    The impactof
    exchange rate    1,725,010.82  4,686,495.53    112,192.98                  17.50   130,587.83  6,654,304.66
    changes.
    3.Reduced
    amount inthe
    current period.
    (1)Disposal
    or scrap.
    4.Ending     163,503,491.35 332,710,858.62 18,991,224.51  6,046,655.78  3,030,596.59 17,344,224.65 541,627,051.50
    balance.
    3.Provision for
    impairment.
    1.Opening
    balance.
    2.The amount
    increased inthe
    current period.
    (1)Provision.
    3.Reduced
    amount inthe
    current period.
    (1)Disposal
    or scrap.
    4.Ending
    balance.
    4 Bookvalue.
    1. Finalbook  414,044,360.29 123,032,049.73  6,242,254.33  7,222,416.06  2,431,564.05 16,748,165.31 569,720,809.77
    value.
    2.Book valueat
    the beginning  421,467,634.01 129,703,717.91  6,820,028.60  7,597,569.41  2,301,072.51 17,864,878.31 585,754,900.75
    of theperiod
    
    
    14. Projects under construction.
    
    Unit: yuan
    
                 Item                      Endingbalance                  Openingbalance
    Projects underconstruction                              12,735,416.77                    4,839,241.48
    Total                                             12,735,416.77                    4,839,241.48
    
    
    (1) Projects under construction.
    
    Unit: yuan
    
                              Endingbalance                           Openingbalance
         Item                   Impairment                              Impairment
                  Bookbalance.     reserve.      Bookvalue    Bookbalance.     reserve.      Bookvalue
    Equipment        12,558,994.19               12,558,994.19    4,756,170.68                4,756,170.68
    installation
    Software            83,070.80                  83,070.80      83,070.80                  83,070.80
    installation.
    Plant construction      93,351.78                  93,351.78
    Total            12,735,416.77               12,735,416.77    4,839,241.48                4,839,241.48
    
    
    (2) Changes in the current period of important projects under construction.
    
    Unit: yuan
    
                                                     The                  Of
                                 The                cumulati               which:
                          The   amount                 ve          Cumulati   the
                         amount  offixed  Other         investme          ve   capitaliz Current
     Project        Opening increased  assets  reduction Ending  ntofthe  Project  amount   ed   interest  Source
     name.  Budget. balance.  inthe  transferr sinthe  balance.  project progress.   of    amount capitaliz offunds
                         current  edinthe current        accounts        interest    of    ation
                         period.  current  period.         forthe        capitaliz interest   rate.
                                period.              proportio        ation.   inthe
                                                    nofthe               current
                                                    budget.               period.
    Software        83,070.8                     83,070.8                                  Other
    installati             0                          0
    on.
    Parsun
    Power
    equipme
    nt             1,274,33        1,123,89        150,442.
    installati           6.28           3.80            48                                  Other
    on and
    Engineer
    ing
    Project.
    Fosber
    Group
    equipme        3,481,83 8,761,84              12,243,6                                  Other
    nt                4.40    1.62                76.02
    installati
    on
    Total           4,839,24 8,761,84 1,123,89        12,477,1   --      --                          --
                     1.48    1.62    3.80          89.30
    
    
    15. Intangible assets.
    
    (1) Intangible assets.
    
    Unit: yuan
    
        Item    Landuseright. rightofpatent.  Non-patented     Land     Trademark.    Software.      Total
                                      technology.    ownership
    I. Theoriginal
    book value:
    1. Opening    98,846,238.53 64,977,998.71            16,721,290.00 117,272,310.51 26,013,377.24 323,831,214.99
    balance.
    2.The amount
    increased inthe
    current period.
    (1) Purchase.               6,188,203.84                         485,640.90   344,584.54  7,018,429.28
    (2) Transferof
    projects under
    construction.
    (3) Increasein
    business                 10,158,872.88                       56,155,450.43            66,314,323.31
    consolidation.
    The impactof
    exchange rate              1,203,377.25              311,297.76  2,173,594.57   252,022.41  3,940,291.99
    changes.
    3. Reduced
    amount inthe
    current period.
    (1) Disposalor                                                         2,103,053.15  2,103,053.15
    scrap
    4. Ending     98,846,238.53 82,528,452.68            17,032,587.76 176,086,996.41 24,506,931.04 399,001,206.42
    balance.
    2 Accumulated
    depreciation.
    1. Opening    17,530,690.04 38,222,325.59                         143,923.41 18,051,846.42 73,948,785.46
    balance.
    2.The amount
    increased inthe
    current period.
    (1)Provision.  1,068,224.29  5,321,471.49                        1,329,079.01   763,047.65  8,481,822.44
    The impactof
    exchange rate                707,399.04                           1,634.31   234,649.37   943,682.72
    changes.
    3.Reduced
    amount inthe
    current period.
    (1)Disposal                                                         2,087,890.79  2,087,890.79
    or scrap.
    4.Ending
    balance.       18,598,914.33 44,251,196.12                        1,474,636.73 16,961,652.65 81,286,399.83
    3.Provision for
    impairment.
    1.Opening
    balance.
    2.The  amount
    increased inthe
    current period.
    (1)Provision.
    3.Reduced
    amount in the
    current period.
    (1)Disposal
    or scrap.
    4.Ending
    balance.
    4 Bookvalue.
    1. Finalbook   80,247,324.20 38,277,256.56            17,032,587.76 174,612,359.68  7,545,278.39 317,714,806.59
    value.
    2.Book valueat
    the beginning   81,315,548.49 26,755,673.12            16,721,290.00 117,128,387.10  7,961,530.82 249,882,429.53
    of theperiod
    
    
    The proportion of intangible assets formed by internal research and development of the company to the balance of intangible assets at
    
    the end of this period.
    
    16. Goodwill.
    
    (1) Original book value of goodwill.
    
    Unit: yuan
    
     Thenameofthe                  Increaseinthisperiod.          Decreaseinthisperiod.
     investee orthe  Openingbalance.  Formedbythe   Theimpactof                            Endingbalance
      formationof                  mergerof     exchangerate     Disposal.
       goodwill.                  enterprises.      changes.
    Fosber Group     160,456,740.18                2,987,199.24                           163,443,939.42
    Parsun Power     208,031,946.10                                                    208,031,946.10
    Italy EDF        68,613,864.09                1,277,374.10                            69,891,238.19
    Italy QCorr                    23,096,745.69                                        23,096,745.69
         Total      437,102,550.37   23,096,745.69    4,264,573.35                           464,463,869.40
    
    
    (2) provision for impairment of goodwill.
    
    Unit: yuan
    
     Thenameofthe                  Increaseinthisperiod.          Decreaseinthisperiod.
     investee orthe  Openingbalance.  Formedbythe   Theimpactof                            Endingbalance
      formationof                  mergerof     exchangerate     Disposal.
       goodwill.                  enterprises.      changes.
    Parsun Power      61,855,054.35                                                     61,855,054.35
    Italy EDF        68,613,864.09                1,277,374.10                            69,891,238.19
         Total      130,468,918.44                1,277,374.10                           131,746,292.54
    
    
    Information about the asset group or asset group portfolio where goodwill is located.
    
    Explain the goodwill impairment testing process, the key parameters (such as the forecast period growth rate, stable period growth
    
    rate, profit margin, discount rate, forecast period, etc.) and the confirmation method of goodwill impairment loss when predicting the
    
    present value of future cash flow:
    
    The influence of goodwill impairment test.
    
    Other instructions.
    
    17. Long-term prepaid expenses.
    
    Unit: yuan
    
                                    The amount      Amortization     Otherreduced
          Item       Openingbalance    increasedinthe    amountforthe       amounts       Endingbalance
                                   current period.     currentperiod.
    Expenditure on
    supporting projects          1,831.03       627,344.72       208,516.90                      420,658.85
    of factorybuildings.
    Office network            38,384.58                       1,820.42                      36,564.16
    construction.
    Expenditure onplant      4,902,531.76       356,404.72       626,630.90                    4,632,305.58
    decoration.
    CE certification           28,066.04                       2,122.64                      25,943.40
    service fee.
    Amortization of           86,864.45                      14,368.43                      72,496.02
    leased assets.
    Shenzhen Office.        2,966,362.95         2,460.39       233,724.77                    2,735,098.57
    Mold amortization         675,195.52      3,656,637.19       959,441.12                    3,372,391.59
    Total                 8,699,236.33      4,642,847.02      2,046,625.18                    11,295,458.17
    
    
    Other instructions.
    
    18. Deferred income tax assets / deferred income tax liabilities.
    
    (1) Unoffset deferred income tax assets.
    
    Unit: yuan
    
                                  Endingbalance                        Openingbalance
           Item         Deductibletemporary   Deferredincometax   Deductibletemporary   Deferredincometax
                           difference.            assets            difference.            assets
    Provision forimpairment        35,514,749.56         6,531,173.61        40,047,445.90         7,625,373.36
    of assets.
    Unrealized profitfrom          40,064,662.50         9,615,519.00        35,104,949.11         7,347,281.21
    insider trading.
    Deductible loss               44,307,619.87        10,588,313.44        32,046,890.02         8,501,046.65
    Credit impairment              6,505,185.93          406,099.59         8,003,088.75          501,069.70
    reserve.
    Deferred income.             28,989,318.08         6,957,436.34        26,277,954.05         6,306,709.91
    Estimated
    liability-after-sales             66,800,201.71        16,032,048.41        65,787,362.65        16,007,718.04
    maintenance servicefee.
    Withholdingexpenses.           7,757,952.04         2,170,840.49         7,338,871.73         1,834,719.89
    Other                      4,228,405.08         1,143,933.25         3,081,562.71          901,102.85
    Financial liabilities
    measured atfairvalue
    and whosechangesare            637,564.96          153,015.59
    included intheprofits
    and lossesofthecurrent
    period.
    Equity incentivefee            10,185,067.00         1,554,800.05
    during firstunlocking
    period
    Total                     244,990,726.73        55,153,179.77       217,688,124.92        49,025,021.61
    
    
    (2) Unoffset deferred income tax liability.
    
    Unit: yuan
    
                                  Endingbalance                        Openingbalance
           Item         Deductibletemporary   Deferredincometax   Deductibletemporary   Deferredincometax
                           difference.            assets            difference.            assets
    Value-addedevaluation
    of assetsofnon-identical        56,486,874.12        10,481,294.88        55,686,591.83        10,912,760.98
    control enterprises'
    merger.
    Depreciation difference         11,150,212.42         2,676,050.98        10,397,629.99         2,636,973.15
    of fixedassets.
    Government subsidy            1,025,011.92          246,002.86         1,006,278.22          241,506.77
    difference.
    Prepaid account.                117,991.63           28,317.99         1,669,971.57          418,570.04
    Financial assets
    measured atfairvalue
    and whosechangesare           1,445,139.08          368,824.82         2,378,966.50          580,080.66
    included intheprofits
    and lossesofthecurrent
    period.
    Other                       496,856.88          119,245.65         7,202,199.04         2,125,801.31
    Total                      70,722,086.05        13,919,737.18        78,341,637.15        16,915,692.91
    
    
    (3) Deferred income tax assets or liabilities shown in net offset.
    
    Unit: yuan
    
                       Deferred incometax    Deferredincometax    Deferredincometax    Deferredincometax
           Item          assetsorliabilities     assetsorliabilities     assetsandliabilities   assetorliabilitybalance
                        endingbalanceafter    endingbalanceafter  offsetatthebeginningof  atthebeginningofthe
                            set-off.             set-off.           theperiod.        periodafterset-off
    Deferred incometax                             55,153,179.77                         49,025,021.61
    assets
    Deferred incometax                             13,919,737.18                         16,915,692.91
    liability
    
    
    (4) Details of unrecognized deferred income tax assets.
    
    Unit: yuan
    
                 Item                      Endingbalance                  Openingbalance
    Deductible temporarydifference                           14,880,268.60                   14,250,399.21
    Total                                             14,880,268.60                   14,250,399.21
    
    
    19.Other non-current assets.
    
    Unit: yuan
    
                                          Ending balance                  Openingbalance
                 Item                Book    Impairment              Book    Impairment
                                   balance.    reserve.   Bookvalue   balance.    reserve.   Bookvalue
    Prepaid purchaseoflong-termassets.                                    38,700.00             38,700.00
    Financing feesrelatedtoprepaidlong-term 1,443,594.59           1,443,594.59 2,480,118.56           2,480,118.56
    loans
    Total                          1,443,594.59           1,443,594.59 2,518,818.56           2,518,818.56
    
    
    Other instructions:
    
    20. Short-term loan.
    
    (1) Classification of short-term borrowings.
    
    Unit: yuan
    
                 Item                      Endingbalance                  Openingbalance
    Credit loan                                         82,888,933.77                   117,888,353.14
    Total                                             82,888,933.77                   117,888,353.14
    
    
    Description of the classification of short-term borrowings:
    
    21.Transactional financial liabilities.
    
    Unit: yuan
    
                 Item                      Endingbalance                  Openingbalance
    Transactional financialliabilities.                            304,022.63
    Of which:
    Derivative financialliabilities.                              304,022.63
    Of which:
    Total                                               304,022.63
    
    
    Other instructions:
    
    22. Notes payable.
    
    Unit: yuan
    
               Category                     Endingbalance                  Openingbalance
    Bank acceptancebill                                  51,457,356.15                   43,973,859.51
    Total                                             51,457,356.15                   43,973,859.51
    
    
    The total amount of notes payable due and unpaid at the end of the current period is 0.00 yuan.
    
    23. Accounts payable.
    
    (1) Presentation of accounts payable.
    
    Unit: yuan
    
                 Item                      Endingbalance                  Openingbalance
    Long-term assetpayments.                                                              69,749.79
    Purchase inventory.                                  451,499,653.44                   470,629,176.02
    Processing fee                                                                      712,857.59
    Other                                               61,705.84                    1,450,961.05
    Total                                            451,561,359.28                   472,862,744.45
    
    
    24. Payment received in advance.
    
    (1) Presentation of advance receipts.
    
    Unit: yuan
    
                 Item                      Endingbalance                  Openingbalance
    
    
    25. Contractual Liabilities
    
    Unit: yuan
    
                 Item                      Endingbalance                  OpeningBalance
    Contributions receivedinadvance                         442,374,748.64                   286,511,724.62
    Total                                            442,374,748.64                   286,511,724.62
    
    
    Amount and reasons for significant changes in book value during reporting period
    
    Unit: yuan
    
             Item             Amountofchange                      Reasonofchange
    
    
    26. Salary payable to staff and workers.
    
    (1) List of salaries payable to staff and workers.
    
    Unit: yuan
    
           Item           Openingbalance     Increaseinthisperiod   Decreaseinthisperiod     Endingbalance
    1. Short-termsalary.           98,755,045.52       185,703,447.51       201,530,616.91        82,927,876.12
    2.After-service
    benefits-set upa               7,922,284.43        30,178,032.44        32,668,714.37         5,431,602.50
    withdrawal plan
    Total                     106,677,329.95       215,881,479.95       234,199,331.28        88,359,478.62
    
    
    (2) Presentation of short-term remuneration.
    
    Unit: yuan
    
           Item           Openingbalance     Increaseinthisperiod   Decreaseinthisperiod     Endingbalance
    1. Wages,bonuses,            94,103,058.39       158,956,074.70       175,350,323.87        77,708,809.22
    allowances andsubsidies.
    2. Welfareexpensesfor          3,860,673.44        15,579,306.28        15,186,554.96         4,253,424.76
    staff andworkers.
    3. Socialinsurance               89,969.07         9,955,872.80         9,756,411.75          289,430.12
    premium.
    Of which:medical                89,969.07         8,696,700.37         8,690,927.59           95,741.85
    insurance premium.
    Industrial injury                     0.00          994,966.35          801,278.08          193,688.27
    insurance premium.
    Maternity insurance                  0.00          264,206.08          264,206.08              0.00
    premium.
    4. Housingprovident                 0.00          988,008.09          988,008.09              0.00
    fund.
    5. Fundsfortradeunions
    and educationforstaff            701,344.62          224,185.64          249,318.24          676,212.02
    and workers
    Total                      98,755,045.52       185,703,447.51       201,530,616.91        82,927,876.12
    
    
    (3) Set up the withdrawal plan and list it.
    
    Unit: yuan
    
           Item           Openingbalance     Increaseinthisperiod   Decreaseinthisperiod     Endingbalance
    1. Basicold-age               7,922,284.43        29,914,228.47        32,404,910.40         5,431,602.50
    insurance.
    2. Unemployment                   0.00          263,803.97          263,803.97              0.00
    insurance premium
    Total                      7,922,284.43        30,178,032.44        32,668,714.37         5,431,602.50
    
    
    Other instructions:
    
    27. Taxes payable.
    
    Unit: yuan
    
                 Item                      Endingbalance                  Openingbalance
    Valueaddedtax.                                      1,661,438.62                    7,909,778.04
    Corporate incometax.                                  16,181,400.77                   27,833,282.53
    Individual incometax.                                  9,474,664.55                    7,786,676.05
    Urban maintenanceandconstructiontax.                        16,474.66                      667,743.61
    Additional educationfees.                                  11,767.62                     476,959.72
    Stamp duty                                           27,162.90                      810,738.35
    Property tax                                         1,482,729.68                      211,158.54
    Land usetax                                          205,153.80                      34,530.60
    Other                                             3,011,539.80                    3,197,362.07
    Total                                             32,072,332.40                   48,928,229.51
    
    
    Other instructions:
    
    28. Other payables.
    
    Unit: yuan
    
                 Item                      Endingbalance                  Openingbalance
    Interest payable.                                      2,426,515.21                    1,410,745.58
    Other payables                                     102,930,274.23                   89,539,697.58
    Total                                            105,356,789.44                   90,950,443.16
    
    
    (1) Interest payable.
    
    Unit: yuan
    
                 Item                      Endingbalance                  Openingbalance
    Interest payableonlong-termloans                          2,426,515.21                    1,410,745.58
    Total                                              2,426,515.21                    1,410,745.58
    
    
    Important overdue interest payments:
    
    Unit: yuan
    
               Loan unit.                    Overdueamount.                  Overduereason
    
    
    Other instructions:
    
    (2) Dividends payable.
    
    Unit: yuan
    
                 Item                      Endingbalance                  Openingbalance
    
    
    Other statements, including important dividends payable unpaid for more than one year, shall disclose the reasons for non-payment:
    
    (3) Other payables.
    
    1) List other payables by nature of the amount.
    
    Unit: yuan
    
                 Item                      Endingbalance                  Openingbalance
    Security deposit.                                       316,164.78                      205,000.00
    Current payment.                                     3,433,252.75                   10,392,785.36
    Withholdingexpenses.                                 43,702,528.93                    46,603,711.83
    Equity acquisitionfunds.                                26,350,910.00                   25,869,305.00
    Equipment engineeringfund.                               390,805.97                      637,290.63
    Other                                             6,112,632.84                    5,651,127.60
    Petty cash                                            23,978.96                      180,477.16
    Restrictive stockrepurchasefunds.                         22,600,000.00
    Total                                            102,930,274.23                   89,539,697.58
    
    
    2) Other important payables with an age of more than one year.
    
    Unit: yuan
    
                 Item                      Endingbalance           Reasonsfornon-repaymentorcarryover
    Former shareholderofItalyEDFequity                      26,350,910.00Missedtheagreedtimeofpayment
    acquisition funds.
    Total                                             26,350,910.00              --
    
    
    Other instructions.
    
    29. Non-current liabilities due within one year.
    
    Unit: yuan
    
                 Item                      Endingbalance                  Openingbalance
    A long-termloanduewithinoneyear                       491,320,129.60                   353,399,238.29
    Total                                            491,320,129.60                   353,399,238.29
    
    
    Other instructions:
    
    30. Long-term loan.
    
    (1) Classification of long-term loans.
    
    Unit: yuan
    
                 Item                      Endingbalance                  Openingbalance
    Mortgage loan                                       6,848,052.20                    9,645,245.56
    Guaranteed loan                                                                 191,323,440.00
    Credit loan                                         42,244,876.05                   23,177,981.92
    Total                                             49,092,928.25                   224,146,667.48
    
    
    Description of the classification of long-term borrowings:
    
    Other instructions, including the interest rate range:
    
    31. Long-term salary payable to staff and workers.
    
    (1) Long-term salary scale payable to staff and workers.
    
    Unit: yuan
    
                 Item                      Endingbalance                  Openingbalance
    I. After-servicebenefits-settingnet                         17,938,177.86                   12,252,657.36
    liabilities forbenefitplans
    Total                                             17,938,177.86                   12,252,657.36
    
    
    (2) Set up changes in the benefit plan.
    
    Set the present value of benefit plan obligations:
    
    Unit: yuan
    
                 Item                  Currentoccurrenceamount.       Theoccurrenceamountoftheprevious
                                                                          period
    I. Openingbalance.                                   12,252,657.36                   10,163,946.95
    II. Thesetbenefitcostthatisincludedin                      5,241,486.25                    1,923,772.98
    the profitsandlossesofthecurrentperiod.
    1. Currentservicecost                                   215,928.35
    4. Netinterest.                                       5,025,557.90                    1,923,772.98
    IV. Otherchanges.                                      444,034.25                      164,937.43
    2. Paidbenefits                                        215,928.35
    3. Exchangeratechange.                                  228,105.90                      164,937.43
    V. Endingbalance                                    17,938,177.86                   12,252,657.36
    
    
    Program assets:
    
    Unit: yuan
    
                 Item                  Currentoccurrenceamount.       Theoccurrenceamountoftheprevious
                                                                          period
    
    
    Set the net liability (net assets) of the benefit plan
    
    Unit: yuan
    
                 Item                  Currentoccurrenceamount.       Theoccurrenceamountoftheprevious
                                                                          period
    
    
    Description of the content of the benefit plan and the risks associated with it, and the impact on the company's future cash flow,
    
    timing and uncertainty:
    
    Set up major actuarial assumptions for the benefit plan and explain the results of the sensitivity analysis:
    
    Other instructions:
    
    32. Estimated liabilities.
    
    Unit: yuan
    
             Item               Endingbalance           Openingbalance          Causeofformation
    Product qualityassurance.                92,989,543.32            73,639,095.36
    Other.                              5,104,667.08             5,011,371.12
    Total                              98,094,210.40            78,650,466.48          --
    
    
    Other notes, including important assumptions and estimated statements relating to important estimated liabilities:
    
    33. Deferred income.
    
    Unit: yuan
    
          Item       Openingbalance   Increasethistime   Decreasethistime   Endingbalance   Causeofformation
    Goverment subsidy      18,275,808.90                      707,160.31     17,568,648.59
    Total                18,275,808.90                      707,160.31     17,568,648.59       --
    
    
    Projects involving government subsidies:
    
    Unit: yuan
    
                                  Theamount  Theamount  Theamount
                        The amount     of      ofother   ofdeduction                     Relatedto
       Debtitem.   Opening   ofnew   non-operatin incomewill  ofcostsand    Other     Ending     assets/
                 balance.  subsidyin  gincomein  beincluded  expensesin   changes.    balance.    earnings
                        this period.  thecurrent  inthecurrent  thecurrent
                                    period.     period.     period.
    Compensation for
     demolition and  3,852,17                                                          Relatedto
     relocationofthe                             148,830.31                    3,703,346.93
       oldfactory      7.24                                                          assets
      building on
      JinfengRoad.
       Amortized
     deferredincome
      (4Mitsubishi   14,423,6                                                 13,865,301.6Relatedto
    gantry machining                             558,330.00
     centers, 3fixed    31.66                                                         6assets
      beam gantry
       machining
        centers)
                 18,275,8                                                  17,568,648.5Relatedto
         Total       08.90                      707,160.31                            9assets
    
    
    Other instructions:
    
    34. Share capital.
    
    Unit: yuan
    
                                        Thischangeincreasesordecreases(+,-)
                  Opening                         Conversionof
                  balance     Issuenew    Sendshares.  providentfund    Other      Subtotal   Endingbalance
                             shares                intostock.
    Total number   1,838,647,096.                                 -293,520,139.0 -293,520,139.0 1,545,126,957.
    of shares              00                                           0          0         00
    
    
    Other instructions:
    
    Other changes in the shares in the period are the Company's repurchase of 293,520,139.00 shares of performance compensation
    
    shares that should be borne by Pride's original shareholders at a price of RMB 1.
    
    35. Capital reserve.
    
    Unit: yuan
    
           Item           Openingbalance     Increasethisperiod    Decreasethisperiod      Endingbalance
    Capital premium(equity       3,862,090,284.37       293,520,138.00        80,682,000.00      4,074,928,422.37
    premium)
    Other capitalreserve             287,554.47        10,185,066.67                         10,472,620.47
    Total                    3,862,377,838.84       303,705,204.67        80,682,000.00      4,085,401,043.51
    
    
    Other explanations, including the changes in the current period and the reasons for the changes:
    
    The changes in capital reserve in the current period mainly include:
    
    1. In January 2020, the Company bought back 293,520,139.00 performance compensation shares at a price of RMB 1, increasing the
    
    equity premium by 293,520,138.00 yuan.
    
    2. In June 2020, the Company received a total of RMB 22,600,000.00 for the first subscription of restricted stocks under the current
    
    incentive plan, and the difference between the amount received for the grant of restricted stocks and the repurchase cost was
    
    80,682,000.00 included in the equity premium. The amount of amortization granted to restricted shares in the current period is RMB
    
    10,185,066.67 included in other capital reserves. For details, see note XIII and note 37.
    
    36. Treasury shares.
    
    Unit: yuan
    
           Item           Openingbalance     Increasethisperiod    Decreasethisperiod      Endingbalance
    Share repurchase             160,088,925.60        22,600,000.00       103,282,000.00        79,406,925.60
    Total                     160,088,925.60        22,600,000.00       103,282,000.00        79,406,925.60
    
    
    Other explanations, including the changes in the current period and the reasons for the changes:
    
    In the first half of 2020, the Company awarded 22,600,000.00 restricted shares, confirmed that the cost of inventory shares delivered
    
    to employees was 22,600,000.00 yuan, and reduced the cost of repurchased inventory shares by 103,282,000.00 yuan. The difference
    
    between the amount received for the grant of restricted shares and the repurchase cost was 80,682,000.00 included in the equity
    
    premium, as detailed in note XIII..
    
    37. Other comprehensive income.
    
    Unit: yuan
    
                                                   Current occurrenceamount
                                                      Minus:in
                                             Minus:the  theprior
                                              previous   period,it
                                       The    periodis  isincluded
                                      amount  includedin  inother
                             Opening   incurred    other    comprehe  Minus:  Belongto Belongto  Ending
              Item            balance  beforethe comprehensi   nsive  incometax theparent  minority  balance
                                    income tax  veincome   income  expenses.  company shareholde
                                      ofthe      and      and           aftertax. rsaftertax
                                      current  transferredto transferred
                                      period.  profitorloss toretained
                                            in thecurrent earningsin
                                              period.   thecurrent
                                                       period.
    I. Othercomprehensiveincome                                                            258,549.
    that cannotbereclassifiedinto    192,829.89 65,719.32                          65,719.32             21
    profit orloss.
    Of which:re-measuretheamount  192,829.89 65,719.32                          65,719.32         258,549.
    of changeinthebenefitplan.                                                                  21
    2.Other comprehensiveincome   24,778,255. 3,886,194.                          3,886,194.         28,664,4
    that isreclassifiedintoprofitor         43      37                               37           49.80
    loss.
    Cash flowhedgingreserve.      460,113.12                                                 460,113.
                                                                                         12
    Translation differenceofforeign  24,822,227. 3,886,194.                          3,886,194.         28,708,4
    currency financialstatements.          50      37                               37           21.87
    Other.                    -504,085.19                                                 -504,085
                                                                                         .19
    Total othercomprehensiveincome 24,971,085. 3,951,913.                          3,951,913.         28,922,9
                                  32      69                               69           99.01
    
    
    Other instructions, including the conversion of the effective portion of the hedging profit or loss of cash flow to the initial recognition
    
    amount of the hedged item:
    
    38. Surplus reserve.
    
    Unit: yuan
    
           Item           Openingbalance     Increasethisperiod    Decreasethisperiod      Endingbalance
    Statutory surplusreserve         51,830,974.45                                           51,830,974.45
    Total                      51,830,974.45                                           51,830,974.45
    
    
    A description of the surplus reserve, including the changes in the current period and the reasons for the changes:
    
    39. Undistributed profits.
    
    Unit: yuan
    
                   Item                        Currentperiod.                  Lastperiod
    Undistributed profitattheendoftheprevious                  -1,280,673,461.14              -3,118,692,266.64
    period beforeadjustment.
    Adjust theinitialundistributedprofitinthelater                -1,280,673,461.14              -3,118,692,266.64
    period.
    Plus: netprofitattributabletotheownerofthe                   127,198,462.09               1,838,018,805.50
    parent companyforthecurrentperiod.
    Undistributed profitattheendoftheperiod                   -1,153,474,999.05              -1,280,673,461.14
    
    
    Details of undistributed profits at the beginning of the adjustment period:
    
    1) Due to the retroactive adjustment of the Accounting Standards for Enterprises and its related new regulations, the undistributed
    
    profit at the beginning of the period was affected by 0.00 yuan.
    
    2) Due to the change of accounting policy, the undistributed profit at the beginning of the period is 0.00 yuan.
    
    3) Due to the correction of major accounting errors, the undistributed profit at the beginning of the period was affected by 0.00 yuan.
    
    4) Due to the change of the merger scope caused by the same control, the undistributed profit at the beginning of the period is
    
    affected by 0.00 yuan.
    
    5) Other adjustments affect the undistributed profit at the beginning of the period by 0.00 yuan.
    
    40. Operating income and operating costs.
    
    Unit: yuan
    
                              Currentoccurrenceamount.          Theoccurrenceamountofthepreviousperiod
           Item
                           Income.              Cost             Income             Cost
    Main business.             1,122,698,491.71       803,803,269.33      4,338,799,337.75      3,658,110,891.89
    Other business               54,792,733.42        38,023,554.51        52,549,957.14        38,739,661.57
    Total                    1,177,491,225.13       841,826,823.84      4,391,349,294.89      3,696,850,553.46
    
    
    41. Taxes and surcharges.
    
    Unit: yuan
    
                 Item                  Currentoccurrenceamount.       Theoccurrenceamountoftheprevious
                                                                          period
    Urban maintenanceandconstructiontax.                      1,731,517.11                    3,828,494.09
    Additional educationfees.                                1,220,501.41                    3,536,110.17
    Property tax.                                        2,203,219.15                    1,846,374.71
    Land usetax.                                         239,684.40                      237,589.81
    Vehicleandvesselusetax.                                  9,930.39                       5,170.00
    Stamp duty.                                          217,428.91                    2,722,013.61
    Other                                                65,860.55                      347,628.80
    Total                                              5,688,141.92                   12,523,381.19
    
    
    Other instructions:
    
    42. Sales expenses.
    
    Unit: yuan
    
                 Item                  Currentoccurrenceamount.       Theoccurrenceamountoftheprevious
                                                                          period
    Staff andworkers'salary.                               22,078,365.25                    26,505,157.11
    Travel expenses                                      2,516,914.22                    7,656,129.90
    Transportation fee.                                    16,540,528.79                   35,244,883.21
    Commission andagencyfee.                             20,394,895.39                   24,982,046.78
    Advertising andexhibitionfees.                            2,247,452.05                    6,198,614.97
    Office expensesandotherthings.                           5,324,784.18                    8,443,405.38
    Product qualitydeposit.                                17,951,965.17                   78,995,177.25
    Other                                             4,240,684.75                    6,130,242.19
    Total                                             91,295,589.80                   194,155,656.79
    
    
    Other instructions:
    
    43. Administrative expenses.
    
    Unit: yuan
    
                 Item                  Currentoccurrenceamount.       Theoccurrenceamountoftheprevious
                                                                          period
    Staff andworkers'salary.                               59,770,138.86                   79,638,383.51
    Depreciation andamortizationofassets                      12,977,606.64                   20,178,298.17
    Tax andfee.                                         1,750,066.68                    2,444,092.63
    Travel expensesandbusinesshospitality                      4,401,637.79                    4,713,549.15
    expenses.
    Acquisition andintermediaryfees                           1,826,187.43                      312,914.53
    Office expensesandotherthings                           18,267,256.03                   27,547,965.46
    Consulting fee                                      10,079,079.98                   13,846,094.47
    Maintenance fee                                      3,052,535.81                    2,484,111.84
    Share payment                                      10,185,066.67
    Total                                            122,309,575.89                   151,165,409.76
    
    
    Other instructions:
    
    44. Research and development expenses.
    
    Unit: yuan
    
                 Item                  Currentoccurrenceamount.       Theoccurrenceamountoftheprevious
                                                                          period
    Staff andworkers'salary.                               23,210,086.32                   34,823,358.29
    Material cost.                                        1,506,176.53                    6,791,677.41
    Utilities.                                             342,355.00                    1,390,408.90
    Depreciation amortizationexpense                          5,869,247.71                    7,045,372.51
    Other costs                                         4,277,058.43                    8,898,431.79
    Total                                             35,204,923.99                   58,949,248.90
    
    
    Other instructions:
    
    45. Financial expenses.
    
    Unit: yuan
    
                 Item                  Currentoccurrenceamount.       Theoccurrenceamountoftheprevious
                                                                          period
    Interest expense.                                      6,239,583.43                    10,735,147.11
    Minus: interestincome.                                 11,409,249.10                   12,761,403.50
    Exchange profitandloss.                                 -589,906.60                      376,194.23
    Other.                                             4,025,054.09                    6,181,203.77
    Discounted interest                                                                 8,382,620.07
    Total                                             -1,734,518.18                   12,913,761.69
    
    
    Other instructions:
    
    46. Other income.
    
    Unit: yuan
    
          Sources ofotherincome.            Currentoccurrenceamount.       Theoccurrenceamountoftheprevious
                                                                          period
    Amortized deferredincome(4Mitsubishi
    gantry machiningcenters,3fixedbeam              558,330.00                      558,330.00
    gantry machiningcenters)
    Patent fundingfortheCouncilforthe                                            15,000.00
    Promotion ofeconomyandTechnology.
    Special fundsforthedemonstration
    Enterprise Projectof"Intelligent
    Manufacturing andessentialSafety"of                                           480,000.00
    Foshan productionSafetySupervisionand
    Administration Bureau.
    Special fundsforEnterpriseResearchand
    Development inFoshanNanhaiDistrict                                          246,300.00
    Economic andScienceandTechnology
    Promotion Bureauin2016and2017.
    Subsidies fortop50scientificand
    technological projectsofFoshanNanhai
    Economic andScienceandTechnology                                          1,000,000.00
    Promotion Bureauin2018(benchmarking
    high-tech) enterprises.
    Compensation fordemolitionand
    relocation oftheoldfactorybuildingon             148,830.31                      148,830.31
    Jinfeng Road.
    Equipment subsidyofLiyangProject
    Investment bytheManagementCommittee                                                   623,602.21
    of JiangsuZhongguancunScienceand
    TechnologyIndustrialPark
    Foshan NanhaiDistrictEconomicand                                                      153,000.00
    Science andTechnologyPromotionBureau
    2017 SpecialSupportAwardforthe
    Development ofHigh-techEnterprises
    Special fundforforeigntradecooperation                                                    200,000.00
    in 2018
    The firstbatchofsmallandmedium-sized
    enterprises toopenupinternationalmarket                                                    58,500.00
    support fundsin2018
    Reward forAdvancedEnterprisesin                                                        30,000.00
    Economic DevelopmentZonein2018
    Beijing PatentGrant                                                                   5,950.00
    2018 Zhongguancunpromotesinnovation
    ability andoptimizesinnovation                                                           12,000.00
    environment supportfunds(patentpart)
    Refund ofincometaxservicefee                            194,481.14
    Stable postallowance                                    104,971.53
    Special fundsforintellectualproperty
    funded bypatentsofNanhaiMarket                           40,894.00
    SupervisionAdministrationin2019
    Foshan NanhaiEconomicPromotion
    Bureau 2019ForeignTradeDevelopment
    Special Fund(ForeignTradesmalland                       2,240,000.00
    medium-sized Enterprisestodevelopthe
    International Market)Project
    Foshan NanhaiEconomicPromotion
    Bureau basicelectricitysubsidyfor                            53,040.00
    transformer capacityoflargeindustrial
    enterprises in2018
    Foshan NanhaiEconomicPromotion
    Bureau toreducethecostofelectricity                          50,000.00
    consumption andsubsidizefundsin2018
    The BureauofScienceandTechnology
    recognized thesubsidyfundsforhigh-tech                      300,000.00
    enterprises in2019
    Business development(thefourthbatch)
    small andmedium-sizeddevelopment                          59,700.00
    projects
    Slicing fundsforprovincialbusiness
    development in2019(thethirdbatch)                          33,000.00
    small andmedium-sizedenterprises
    Financial incentivesforthetransformation
    and upgradingofprovincialindustrial                          20,000.00
    information industryin2019
    Domestic andForeignPatentGrantsof                          5,300.00
    Suzhou High-techZonein2019
    Special fundforbuildingadvanced
    manufacturing baseatSuzhoumunicipal                       400,000.00
    level in2020(specializednewenterprise
    cultivation project)
    2019 SuzhouHigh-techZoneHigh-tech                         50,000.00
    leading TalentEnterpriseAward
    Region-wide trademarksubsidyin2019                         41,600.00
    Foreign governmentsubsidies                             1,345,206.55
    Foshan NanhaiSocialSecurityBureau
    Enterprise affectedunemployment                          1,451,918.40
    Insurance returnProjectAllowance
    Total                                              7,097,271.94                    3,531,512.52
    
    
    47. Return on investment.
    
    Unit: yuan
    
                  Item                    Currentoccurrenceamount.      Theoccurrenceamountoftheprevious
                                                                            period
    Long-term equityinvestmentincome                             23,671.37                   538,060.82
    calculated byequitymethod.
    Bank wealthmanagementproductincome.                      32,701,312.96                  9,563,771.46
    Total                                               32,724,984.33                 10,101,832.28
    
    
    Other instructions:
    
    48. Income from changes in fair value.
    
    Unit: yuan
    
     Thesourceofincomefromchangesinfair      Currentoccurrenceamount.       Theoccurrenceamountoftheprevious
                 value                                                      period
    Transactional financialassets                             13,309,111.52
    Total                                             13,309,111.52
    
    
    Other instructions:
    
    49. Loss of credit impairment.
    
    Unit: yuan
    
                 Item                  Currentoccurrenceamount.       Theoccurrenceamountoftheprevious
                                                                          period
    Losses onbaddebtsofotherreceivables.                      1,914,927.30                    3,107,422.81
    Loss ofbaddebtsonaccountsreceivable                     -1,556,386.05                   -42,550,891.99
    Total                                               358,541.25                   -39,443,469.18
    
    
    Other instructions:
    
    50. Loss of impairment of assets.
    
    Unit: yuan
    
                 Item                  Currentoccurrenceamount.       Theoccurrenceamountoftheprevious
                                                                          period
    2.Loss ofinventorydeclineand                            -2,978,396.97                    3,093,106.42
    impairment ofcontractperformancecost
    Total                                             -2,978,396.97                    3,093,106.42
    
    
    Other instructions:
    
    51. Income from asset disposal.
    
    Unit: yuan
    
      Sourcesofincomefromassetdisposal.       Currentoccurrenceamount.       Theoccurrenceamountoftheprevious
                                                                          period
    Disposal ofothernon-currentassets                            1,972.08                     -408,669.80
    Total                                                 1,972.08                     -408,669.80
    
    
    52.Non-operating income.
    
    Unit: yuan
    
                                                 Theoccurrenceamountofthe   Theamountincludedinthe
             Item           Currentoccurrenceamount.       previousperiod      non-recurringprofitandlossof
                                                                          the currentperiod
    Government subsidy.                                            40,000.00
    Gains fromdisposalof                        773.05                                       773.05
    non-current assets
    Fine income.                             4,622.20               88,294.78                4,622.20
    Withholdingindividualtax                                         3,137.82
    service fee
    Value-addedtaxrebate.                                           44,815.85
    The costofabusinessmergeris
    less thanthedifferenceinthe                                     6,468,480.83
    fair valueshareofthe
    identifiable netassetsacquired
    by thepurchaserinthemerger
    Other                                171,381.68             3,328,220.23              171,381.68
    Total                                176,776.93             9,972,949.51              176,776.93
    
    
    Government subsidies included in the profits and losses of the current period:
    
    Unit: yuan
    
                                             Doesthe
                                           subsidyaffect            Amount    Amount    Relatedto
      Subsidy     Issuing   Reasonsfor  Naturetype.  theprofits  Isitaspecial  incurredin   incurredin    assets/
      project.     subject.   distribution.           andlossesof   subsidy?   thecurrent  theprevious   earnings
                                            thecurrent             period.     period.
                                              year?
                                 Subsidies
                                 obtained for
    Zhongguancu                    beinginline
    n TopTen                      withthelocal
    sales       Zhongguancu Subsidy    government's NO       NO                    40,000.00Relatedto
    Government  n                   investment                                         revenue
    Award in                       promotion
    2018                          andother
                                 local support
                                 policies
    Total                                                                   40,000.00
    
    
    Other instructions:
    
    53. Non-operating expenses.
    
    Unit: yuan
    
                                                 Theoccurrenceamountofthe   Theamountincludedinthe
             Item           Currentoccurrenceamount.       previousperiod      non-recurringprofitandlossof
                                                                          the currentperiod
    Foreign donation.                       1,446,189.29               43,947.41             1,446,189.29
    Sponsorship expenditure.                    16,600.00              181,898.00               16,600.00
    Late fee.                                                     4,415.57
    Other                                  2,060.00             2,370,678.96                2,060.00
    Total                               1,464,849.29             2,600,939.94             1,464,849.29
    
    
    Other instructions:
    
    54. Income tax expenses.
    
    (1) Statement of income tax expenses.
    
    Unit: yuan
    
                 Item                  Currentoccurrenceamount.       Theoccurrenceamountoftheprevious
                                                                          period
    Current incometaxexpenses.                             7,751,569.77                    73,111,516.06
    Deferred incometaxexpenses                             -2,109,259.77                    -7,923,224.04
    Total                                              5,642,310.00                   65,188,292.02
    
    
    (2) The adjustment process of accounting profit and income tax expenses.
    
    Unit: yuan
    
                        Item                                 Currentoccurrenceamount.
    Total profit.                                                                    132,126,099.66
    Income taxexpensesatstatutory/applicabletaxrates.                                         19,818,914.95
    The influenceofdifferenttaxratesonsubsidiaries.                                            7,697,477.02
    Adjust theimpactofincometaxinpreviousperiods.                                          -11,707,933.39
    The impactofundeductiblecosts,expensesandlosses.                                         -1,576,432.00
    The impactofdeductiblelossesontheuseofunrecognized                                      -11,724,572.69
    deferred incometaxassetsinthepreviousperiod.
    The effectofdeductibletemporarydifferencesordeductible
    losses ondeferredincometaxassetsnotrecognizedinthecurrent                                   3,134,856.11
    period.
    Income taxexpense                                                                 5,642,310.00
    
    
    Other instructions.
    
    55. Other comprehensive income.
    
    See note 37 for details.
    
    56. Cash flow statement items.
    
    (1) Other cash received related to business activities.
    
    Unit: yuan
    
                 Item                  Currentoccurrenceamount.       Theoccurrenceamountoftheprevious
                                                                          period
    Current moneyandother.                               19,138,595.34                   10,553,838.88
    Interest income.                                      8,684,557.75                    8,523,417.00
    Government subsidy.                                   3,413,534.85                    2,274,345.00
    Total                                             31,236,687.94                   21,351,600.88
    
    
    Description of other cash received related to business activities:
    
    (2) Other cash paid related to business activities.
    
    Unit: yuan
    
                 Item                  Currentoccurrenceamount.       Theoccurrenceamountoftheprevious
                                                                          period
    Pay cashsalesexpenses.                                68,632,511.73                   60,264,218.70
    Pay cashmanagementexpenses.                           37,794,087.99                   58,389,538.84
    Current moneyandother.                              112,769,312.77                   34,389,331.56
    Total                                            219,195,912.49                   153,043,089.10
    
    
    Description of other cash paid related to business activities:
    
    (3) Other cash received related to investment activities.
    
    Unit: yuan
    
                 Item                  Currentoccurrenceamount.       Theoccurrenceamountoftheprevious
                                                                          period
    Performance compensation.                                                             200,000.00
    Bank financing                                    4,827,403,841.13
    Time deposit                                                                    50,000,000.00
    Total                                           4,827,403,841.13                   50,200,000.00
    
    
    Description of other cash received related to investment activities:
    
    (4) Other cash paid related to investment activities.
    
    Unit: yuan
    
                 Item                  Currentoccurrenceamount.       Theoccurrenceamountoftheprevious
                                                                          period
    Bank financing                                    5,144,300,000.00                   790,000,000.00
    Total                                           5,144,300,000.00                   790,000,000.00
    
    
    Description of other cash paid related to investment activities:
    
    (5) Other cash received related to fund-raising activities.
    
    Unit: yuan
    
                 Item                  Currentoccurrenceamount.       Theoccurrenceamountoftheprevious
                                                                          period
    Deposit forbankacceptanceofbillof                                                    45,300,545.99
    exchange
    Total                                                                          45,300,545.99
    
    
    Description of other cash received related to fund-raising activities:
    
    (6)Other cash paid related to fund-raising activities.
    
    Unit: yuan
    
                 Item                  Currentoccurrenceamount.       Theoccurrenceamountoftheprevious
                                                                          period
    Note guaranteedeposits                                                           1,315,047,825.35
    Stock repurchasefund.                                                              73,348,481.61
    Letter ofguaranteedeposit.                             290,000,000.00
    Total                                            290,000,000.00                 1,388,396,306.96
    
    
    Description of other cash paid related to fund-raising activities:
    
    57. Supplementary information on the statement of cash flows.
    
    (1) Supplementary information on the statement of cash flows.
    
    Unit: yuan
    
          Supplementaryinformation               Currentamount.               Previousperiodamount
    1. Adjustnetprofittocashflowofoperating              --                           --
    activities:
    Net profit.                                        126,483,789.66                   183,849,312.89
    Plus: provisionforimpairmentofassets.                      2,619,855.72                   36,350,362.76
    Depreciation offixedassets,oilandgas                      24,591,531.90                   21,740,298.73
    assets andproductivebiologicalassets.
    Amortization ofintangibleassets.                           8,481,822.44                    11,718,813.98
    Amortization oflong-termprepaidexpenses.                   2,046,625.18                    7,607,830.79
    Losses onthedisposaloffixedassets,
    intangible assetsandotherlong-termassets                       -1,972.08                      408,669.80
    (income isgivenwith"-"sign).
    Loss offairvaluechange(incomeislisted                    -13,309,111.52
    with "-"sign).
    Financial expenses(incomeisgivenwith"-"                    6,239,815.10                   18,720,071.42
    sign).
    Investment loss(incomeislistedwith"-"                    -32,724,984.33                   -16,017,901.37
    sign).
    Deferred incometaxassetsdecrease                         -4,983,844.58                   -16,032,901.90
    (increase with"-"sign).
    Increase indeferredincometaxliabilities                     -2,806,737.40                    -1,398,169.86
    (reduced with"-"sign).
    Reduction ofinventory(increasein"-"sign).                 -163,596,564.15                 -1,081,727,749.23
    Decrease inoperatingreceivables(increase                   -21,051,248.91                   192,604,121.35
    with "-"sign).
    Increase inoperatingpayables(reducedwith                   97,420,432.29                 2,061,417,992.61
    "-" sign).
    Net cashflowfromoperatingactivities.                      29,409,409.32                 1,419,240,751.97
    2. Majorinvestmentsandfund-raising
    activities thatdonotinvolvecashreceipts                --                           --
    and payments:
    3. Netchangesincashandcashequivalents:              --                           --
    The endingbalanceofcash.                            1,519,015,849.88                 1,072,228,722.76
    Less: theopeningbalanceofcash.                        2,226,724,737.39                 2,057,997,442.35
    Net increaseincashandcashequivalents                    -707,708,887.51                  -985,768,719.59
    
    
    (2) The net cash paid by the acquired subsidiary in the current period.
    
    Unit: yuan
    
                                                                   Amount
    Of which:                                                           --
    Of which:                                                           --
    Of which:                                                           --
    
    
    Other instructions:
    
    (3) Composition of cash and cash equivalents.
    
    Unit: yuan
    
                  Item                      Endingbalance                  Openingbalance
    1. Cash.                                         1,519,015,849.88                 2,226,724,737.39
    Of which:cashonhand.                                  333,466.53                      249,951.68
    A bankdepositthatcanbeusedforpayment                 1,518,673,673.17                 2,224,849,135.20
    at anytime.
    Other monetaryfundsthatcanbeusedfor                        8,710.18                    1,625,650.51
    payment atanytime.
    3. Balanceofcashandcashequivalentsat                   1,519,015,849.88                 2,226,724,737.39
    the endoftheperiod
    Of which:theparentcompanyorsubsidiary                  420,985,826.61                   129,978,697.21
    within thegroupusesrestrictedcashand
    cash equivalents
    
    
    Other instructions:
    
    58. Project Notes on the Statement of Changes in Owners' Equity
    
    Explain the name of the "other" project and the adjusted amount of the balance at the end of the previous year:
    
    59. Assets with restricted ownership or use rights.
    
    Unit: yuan
    
                  Item                      Finalbookvalue                  Limitedreasons
    Monetary funds.                                    420,985,826.61                        Margin
    Fixed assets.                                       213,149,396.93                   Loanmortgage
    Intangible assets.                                     50,379,689.01                   Loanmortgage
    Total                                            684,514,912.55              --
    
    
    Other instructions:
    
    60. Foreign currency monetary items.
    
    (1) Foreign currency monetary items.
    
    Unit: yuan
    
              Item           Foreigncurrencybalanceat    Convertedexchangerate   ConversionofRMBbalanceat
                              the endoftheperiod                             theendoftheperiod
    Monetary funds.                     --                    --                      349,834,984.80
    Of which:USDollar.                   25,365,404.597.0795                            179,574,381.79
              Euro.                    21,373,180.597.9610                            170,151,890.68
              HongKongDollar.               83,242.950.9134                                76,034.11
             British Pound                   3,749.91 8.7144                               32,678.22
    Accounts receivable.                  --                    --                      443,457,837.83
    Of which:USDollar.                    2,952,693.417.0795                             20,903,593.00
              Euro.                    53,078,036.037.9610                            422,554,244.83
            Hong KongDollar.
    Long-term loan.                      --                    --
    Of which:USDollar.
              Euro.                     6,166,678.597.9610                             49,092,928.25
             HongKongDollar.
    Accounts payable.                                                                322,314,047.58
    Of which:USDollar.                             7.0795
              Euro.                    40,486,628.267.9610                            322,314,047.58
    Other receivables.                                                                 66,825,385.92
    Of which:USDollar.                             7.0795
            Euro.                       8,394,094.457.9610                             66,825,385.92
    Short-term loan.                                                                  82,888,933.77
    Of which:USDollar.                             7.0795
            Euro.                      10,411,874.617.9610                             82,888,933.77
    Non-current liabilitiesduewithin                                                       20,984,249.60
    one year.
    Of which:USDollar.                             7.0795
            Euro.                       2,635,881.127.9610                             20,984,249.60
    Other payables.                                                                   43,478,396.68
    Of which:USDollar.                      13,163.817.0795                                93,193.19
              Euro.                     5,449,717.817.9610                             43,385,203.49
    
    
    Other instructions:
    
    61.Government subsidy.
    
    (1) Basic situation of government subsidies.
    
    Unit: yuan
    
                                                                       The amountincludedinthe
            Category                Amount            Presentationofitems    profitsandlossesofthecurrent
                                                                              period
    Compensation fordemolition
    and relocationoftheoldfactory             5,340,480.38Deferredincome                         148,830.31
    building onJinfengRoad.
    4 Mitsubishigantrymachining
    centers and3fixedbeamgantry             20,100,000.00Deferredincome                         558,330.00
    machining centers.
    Refund ofincometaxservice                194,481.14Otherincome                           194,481.14
    fee
    Stable postallowance                     104,971.54Otherincome                           104,971.54
    Special fundsforintellectual
    property fundedbypatentsof                 40,894.00Otherincome                           40,894.00
    Nanhai MarketSupervision
    Administration in2019
    Foshan NanhaiEconomic
    Promotion Bureau2019Foreign
    Trade DevelopmentSpecial
    Fund (ForeignTradesmalland              2,240,000.00Otherincome                         2,240,000.00
    medium-sized Enterprisesto
    develop theInternational
    Market) Project
    Foshan NanhaiEconomic
    Promotion Bureaubasic
    electricity subsidyfor                      53,040.00Otherincome                           53,040.00
    transformer capacityoflarge
    industrial enterprisesin2018
    Foshan NanhaiEconomic
    Promotion Bureautoreducethe                50,000.00Otherincome                           50,000.00
    cost ofelectricityconsumption
    and subsidizefundsin2018
    The BureauofScienceand
    Technologyrecognizedthe                  300,000.00Otherincome                           300,000.00
    subsidy fundsforhigh-tech
    enterprises in2019
    Business development(the
    fourth batch)smalland                     59,700.00Otherincome                           59,700.00
    medium-sized development
    projects
    Slicing fundsforprovincial
    business developmentin2019                 33,000.00Otherincome                           33,000.00
    (the thirdbatch)smalland
    medium-sized enterprises
    Financial incentivesforthe
    transformation andupgradingof               20,000.00Otherincome                           20,000.00
    provincial industrial
    information industryin2019
    Domestic andForeignPatent
    Grants ofSuzhouHigh-tech                   5,300.00Otherincome                            5,300.00
    Zone in2019
    Special fundforbuilding
    advanced manufacturingbaseat
    Suzhou municipallevelin2020               400,000.00Otherincome                           400,000.00
    (specialized newenterprise
    cultivation project)
    2019 SuzhouHigh-techZone
    High-tech leadingTalent                    50,000.00Otherincome                           50,000.00
    EnterpriseAward
    Region-wide trademarksubsidy               41,600.00Otherincome                           41,600.00
    in 2019
    Foreign governmentsubsidies               1,345,206.55Otherincome                         1,345,206.55
    Foshan NanhaiSocialSecurity
    Bureau Enterpriseaffected                 1,451,918.40Otherincome                         1,451,918.40
    unemployment Insurancereturn
    Project Allowance
    
    
    VIII. Changes in the scope of the merger.
    
    1. Business merger under different control.
    
    (1) The merger of enterprises under different control occurred in the current period.
    
    Unit: yuan
    
                                                                        Incomeofthe Netprofitof
              Timepointof   Equity     Equity     Modeof              Basisfor  acquireefrom theacquiree
     Nameofthe    equity    acquisition  acquisition    equity     Purchase   determining  thedateof  fromthedate
      acquiree.   acquisition.    cost.      ratio.    acquisition.    date.     thedateof  purchaseto  ofpurchase
                                                                purchase.  theendofthe totheendof
                                                                          period.    theperiod
    
    
    Other instructions:
    
    (2) Combined cost and goodwill.
    
    Unit: yuan
    
                     Combinedcost.
    
    
    The method for determining the fair value of the combined cost, and the description of the contingent consideration and its changes:
    
    The main reasons for the formation of large goodwill:
    
    Other instructions:
    
    (3) The acquiree can identify assets and liabilities on the date of purchase.
    
    Unit: yuan
    
                                    Fair valueonthedateofpurchase        Dailybookvalueofpurchase
    
    
    The method for determining the fair value of identifiable assets and liabilities:
    
    Contingent liabilities of the acquiree in a business merger:
    
    Other instructions:
    
    (4) Gains or losses arising from the re-measurement of equity held before the date of purchase according to
    
    fair value.
    
    Is there a transaction in which the merger is achieved step by step through multiple transactions and control is obtained during the
    
    reporting period?
    
    □ Yes √ No
    
    (5) The date of purchase or the statement of the fair value of the identifiable assets and liabilities of the
    
    purchaser that the consolidated consideration or the fair value of the identifiable assets and liabilities
    
    cannot be reasonably determined at the end of the current period.
    
    (6) Other instructions
    
    2. Enterprise merger under the same control
    
    (1) The merger of enterprises under the same control in the current period
    
    Unit: yuan
    
                                                     Incomeofthe Netprofitof
              Proportionof Constitutethe                    mergedparty  themerged Incomeofthe Netprofitof
               rights and    basisof             Thebasisfor   fromthe   partyfrom  mergedparty  themerged
     Nameofthe   interests    business   Mergerdate  determining  beginningof thebeginning  duringthe  partyduring
    merged party  acquiredin  mergerunder           themerger   thecurrent  ofthecurrent comparison     the
                business    thesame               date    periodtothe periodtothe   period    comparison
                merger     control                       mergerdate  dateofthe              period
                                                                 merger
    
    
    Other instructions:
    
    (2) Combined Cost
    
    Unit: yuan
    
                     Combinedcost
    
    
    There may be a description of the consideration and its changes:
    
    Other instructions:
    
    (3) The book value of the assets and liabilities of the merged party on the merger date
    
    Unit: yuan
    
                                            Mergerdate              Attheendofthepreviousperiod
    
    
    Contingent liabilities of the merged party in a business merger:
    
    Other instructions:
    
    3. Changes in the scope of merger for other reasons.
    
    Explain the changes in the scope of the merger caused by other reasons (for example, newly established subsidiaries, liquidat ion
    
    subsidiaries, etc.) and their related information:
    
    In February 2020, the subsidiary Fosber Group established a new holding subsidiary, Italy QCorr, which was used as the main
    
    acquisition body to complete the acquisition of Italian corrugated board wire manufacturer BP Agnati S.r.l. For the acquisition of
    
    related business assets, Italy Qcorr was included in the consolidated statement during the reporting period.
    
    IX. Rights and interests in other subjects.
    
    1. Interests in subsidiaries.
    
    (1) The composition of enterprise groups
    
     Subsidiaryname.  Mainoperating     Placeof       Natureof         Shareholdingratio.         Modeof
                     place       registration.     business.       Direct        Indirect      acquisition
    Dongfang      HK          HK          Trading             100.00%             Setup
    Precision(HK)                          enterprise
    Dongfang                               Trading
    Precision       Netherland     Netherland     enterprise             90.00%       10.00%Setup
    (Netherland)
                                          Manufacturing                           Businessmerger
    Fosber Group   Italy         Italy         industry                          100.00%underdifferent
                                                                               control
                                          Manufacturing                           Businessmerger
    Fosber US     US          US          industry                          100.00%underdifferent
                                                                               control
    Fosber Tianjin   Tianjin,China   Tianjin,China   Manufacturing                     100.00%Businessmerger
                                                                               underdifferent
                                          industry                               control
                 FoshanCity,    FoshanCity,    Manufacturing
    Fosber Asia     Guangdong     Guangdong     industry              56.40%             Setup
                 Province,China  Province,China
                 SuzhouCity,    SuzhouCity,    Manufacturing                           Businessmerger
    Parsun Power   JiangsuProvince, JiangsuProvince, industry              35.00%       65.00%underdifferent
                 China        China                                              control
                 SuzhouCity,    SuzhouCity,    Investment                              Businessmerger
    Suzhou Shunyi  JiangsuProvince, JiangsuProvince, company            100.00%             underdifferent
                 China        China                                              control
                                          Manufacturing                           Businessmerger
    Italy EDF      Italy         Italy         industry                          100.00%underdifferent
                                                                               control
                                          Manufacturing                           Businessmerger
    Tiruna Group   Spain         Spain         industry                          70.00%underdifferent
                                                                               control
                                          Manufacturing                           Businessmerger
    Tiruna S.L.U.   Spain         Spain         industry                          70.00%underdifferent
                                                                               control
    Tratatamientos                            Manufacturing                           Businessmerger
    Industriales     Spain         Spain         industry                          70.00%underdifferent
    Tiruna S.A.U.                                                                 control
                                          Manufacturing                           Businessmerger
    Tiruna Brazil    Brazil        Brazil        industry                          70.00%underdifferent
                                                                               control
    Tiruna France                            Manufacturing                           Businessmerger
    SARL        France        France        industry                          70.00%underdifferent
                                                                               control
                                          Manufacturing                           Businessmerger
    SCI Candan    France        France        industry                          70.00%underdifferent
                                                                               control
                                          Manufacturing                           Businessmerger
    Tiruna UKLtd   UK          UK          industry                          70.00%underdifferent
                                                                               control
    Guangdong     Guangdong     Guangdong     Manufacturing                           Businessmerger
    Tiruna        Province,China  Province,China  industry                          66.30%underdifferent
                                                                               control
                                          Manufacturing                           Businessmerger
    Tiruna US      US          US          industry                          85.00%underdifferent
                                                                               control
    Italy QCorr     Italy         Italy         Manufacturing                      60.00%Setup
                                          industry
    
    
    A statement that the proportion of shares held in a subsidiary is different from the proportion of voting rights:
    
    Hold half or less of the voting rights but still control the invested entity, and the basis for holding more than half of the voting rights
    
    but not controlling the invested entity:
    
    For important structured subjects that are included in the scope of the merger, the basis for control is:
    
    The basis for determining whether a company is an agent or a principal:
    
    Other instructions:
    
    (2) Important non-wholly owned subsidiaries.
    
    Unit: yuan
    
                                          Profitsandlosses    Declarationofdividends   Balanceofminority
       Subsidiaryname.    Minorityshareholders'  attributabletominority  tominorityshareholders  shareholders'rightsand
                        shareholdingratio.     shareholdersforthe    inthecurrentperiod.  interestsattheendofthe
                                           currentperiod.                            period
    Fosber Asia                     43.60%        -1,584,751.33                          9,450,288.19
    Tiruna Group                    30.00%         1,319,324.69                         54,322,656.80
    
    
    An explanation that the proportion of shares held by minority shareholders of a subsidiary is different from the proportion of voting
    
    rights:
    
    Other instructions:
    
    (3) The main financial information of important non-wholly-owned subsidiaries.
    
    Unit: yuan
    
                          Endingbalance                             Openingbalance
     Subsidia       Non-curr              Non-curr              Non-curr              Non-curr
     ryname. current   ent    Total   current   ent    Total   current   ent    Total   current   ent    Total
            assets.  assets.  assets.  assets.  assets. liabilities assets.  assets.  assets.  assets.  assets. liabilities
    Fosber   158,666, 4,710,57 163,376, 134,294, 7,406,93 141,701, 126,925, 5,087,28 132,012, 99,295,6 7,406,93 106,702,
    Asia      068.51    9.91  648.42  740.25    5.25  675.50  006.60    5.73  292.33   33.40    5.25  568.65
    Tiruna   122,888, 109,430, 232,319, 39,906,1 11,630,8 51,537,0 113,311, 116,986, 230,297, 37,452,7 16,167,4 53,620,1
    Group    545.59  761.37  306.96   89.15   38.55   27.70  370.00  573.42  943.42   55.36   13.79   69.15
    
    
    Unit: yuan
    
                        Currentoccurrenceamount               Theoccurrenceamountofthepreviousperiod
     Subsidiary
       name     Operating   Netprofit.    Total     Cashflow   Operating   Netprofit.    Total     Cashflow
                income.            comprehensi    from     income.            comprehensi    from
                                  ve income.   operating                      veincome.   operating
                                            activities                                 activities
    Fosber Asia  33,057,423.9-3,634,750.76-3,634,750.76 3,296,292.27 68,127,466.4 2,518,366.47 2,518,366.47 12,812,138.2
                      1                                      0                            5
    Tiruna Group 81,726,323.4 4,397,748.98 4,397,748.98 1,033,454.85 11,524,512.3-1,248,318.70-1,248,318.70 3,329,255.82
                      5                                      7
    
    
    Other instructions:
    
    2. Interests in combined venture arrangements or joint ventures.
    
    (1) An important joint venture or combined venture
    
                                                            Shareholdingratio.        Accounting
      Nameofjoint                                                                  treatmentof
       ventureor    Mainoperating     Placeof       Natureof                              investmentin
       combined       place       registration.     business.       Direct        Indirect    jointventuresor
        venture.                                                                    combined
                                                                                  ventures
                 FoshanCity,    FoshanCity,    Manufacturing
    Jiateng Robot   Guangdong     Guangdong     industry              21.00%             Equitymethod
                 Province,China  Province,China
                 FoshanCity,    FoshanCity,    Manufacturing
    Yinglian Digital  Guangdong     Guangdong     industry              50.00%             Equitymethod
                 Province,China  Province,China
    
    
    A statement that the proportion of shares held in a joint venture or joint venture is different from the proportion of voting rights:
    
    The basis for holding less than 20% of the voting rights but having a significant impact, or holding 20% or more of the voting rights
    
    but not having a significant impact:
    
    (2) Main financial information of important joint ventures.
    
    Unit: yuan
    
                                  Balanceattheendoftheperiod/amount    Openingbalance/previousperiod
                                      incurredinthecurrentperiod             occurrenceamount
                                        YinglianDigital(RMB)             YinglianDigital(RMB)
    Current assets.                                      10,027,443.71                    8,319,156.14
    Of which:cashandcashequivalents.                           34,924.14                      36,386.33
    Non-current assets.                                   13,634,425.08                   13,810,304.61
    Total assets.                                        23,661,868.79                   22,129,460.75
    Current liability.                                      1,260,912.16                      920,225.25
    Totalliabilities.                                       1,260,912.16                      920,225.25
    Vestedintheshareholders'rightsand                        22,431,168.10                   21,209,235.50
    interests oftheparentcompany.
    Financial expenses.                                        177.48                       5,519.90
    Net profit.                                           -173,288.74                     495,653.51
    Total comprehensiveincome                               -173,288.74                     495,653.51
    
    
    Other instructions.
    
    (3) Main financial information of important combined associates.
    
    Unit: yuan
    
                                  Balanceattheendoftheperiod/amount    Openingbalance/previousperiod
                                      incurredinthecurrentperiod             occurrenceamount
                                        Jiateng robot(RMB)               Jiatengrobot(RMB)
    Current assets.                                      225,941,939.80                   219,472,243.57
    Non-current assets.                                   114,099,824.42                   113,320,858.41
    Total assets.                                       340,041,764.22                   332,793,101.98
    Current liability.                                    146,974,574.44                   136,413,860.90
    Non-current liability                                   22,842,518.84                   28,053,156.84
    Total liabilities.                                     169,817,093.28                   164,467,017.74
    Vestedintheshareholders'rightsand                       170,224,670.94                   168,326,084.24
    interests oftheparentcompany.
    Operating income.                                    35,272,166.09                   76,705,681.56
    Net profit.                                           551,646.47                    3,994,431.36
    Total comprehensiveincome                               551,646.47                    3,994,431.36
    
    
    Other instructions.
    
    X. Risks related to financial instruments
    
    The company faces various financial risks during its operation: credit risk, market risk and liquidity risk. The
    
    company's board of directors is fully responsible for the determination of risk management objectives and policies,
    
    and assumes ultimate responsibility for the risk management objectives and policies. However, the board of
    
    directors has authorized the company's presidential office to design and implement procedures that ensure the
    
    effective implementation of risk management objectives and policies. The board of directors reviews the
    
    effectiveness of the implemented procedures and the rationality of risk management objectives and policies through
    
    the monthly report submitted by the fund manager. The company's internal auditors also audit risk management
    
    policies and procedures, and report relevant findings to the audit committee.
    
    The overall goal of the company's risk management is to formulate a risk management policy that minimizes risks
    
    without excessively affecting the company's competitiveness and resilience.
    
    1. Credit risk
    
    Credit risk refers to the risk that one party to a financial instrument fails to perform its obligations and causes the
    
    other party to incur financial losses. The company mainly faces customer credit risk caused by credit sales. Before
    
    signing a new contract, the company will assess the credit risk of new customers, including external credit ratings
    
    and bank credit certificates in certain cases (when this information is available). The company has set a credit limit
    
    for each customer, which is the maximum amount that does not require additional approval.
    
    The company uses quarterly monitoring of existing customers' credit ratings and monthly review of aging analysis
    
    of accounts receivable to ensure that the company's overall credit risk is within controllable limits. When
    
    monitoring customers 'credit risk, they are grouped according to customers' credit characteristics. Customers who
    
    are rated as "high risk" will be placed on the list of restricted customers, and only with additional approval will the
    
    company be able to sell them on credit in the future period, otherwise they must be required to pay in advance.
    
    2. Market risk
    
    Market risk of financial instruments refers to the risk that the fair value or future cash flow of financial instruments
    
    will fluctuate due to changes in market prices, including exchange rate risk, interest rate risk, and other price risks.
    
    (1) Interest rate risk
    
    Interest rate risk refers to the risk that the fair value of financial instruments or future cash flows will fluctuate due to
    
    changes in market interest rates. The interest rate risk faced by the company mainly comes from bank loans.
    
    (2) Exchange rate risk
    
    Exchange rate risk refers to the risk that the fair value of financial instruments or future cash flows will fluctuate due
    
    to changes in foreign exchange rates. As far as possible, the company matches foreign currency income with foreign
    
    currency expenditure to reduce exchange rate risk. In addition, the company may also sign forward foreign
    
    exchange contracts or currency swap contracts to avoid exchange rate risk. During the current period and the
    
    previous period, the Company did not sign any forward foreign exchange contracts or currency swap contracts.
    
    The exchange rate risk faced by the company mainly comes from financial assets and financial liabilities
    
    denominated in US dollars. The amounts of foreign currency financial assets and foreign currency financial
    
    liabilities converted into RMB are listed below:
    
                               Endingbalance                        Balanceattheendoflastyear
        Item       USdollars      Euro       Other      Total    USdollars    Euro      Other      Total
                                        foreign                                 foreign
                                       currencies                               currencies
     Monetary
     funds        179,574,381.7  170,151,890.  108,712.33  349,834,98  177,718,51   188,934,0   198,537.6   366,851,1
                         9         68                4.80       3.83      72.13        1     23.57
     Notes
     receivable              -          -         -         -  56,743,777         -         -   56,743,77
                                                               .57                         7.57
     Accounts
     receivable     20,903,593.00  422,554,244.         -  443,457,83  37,871,761   453,987,2         -   491,858,9
                                   83                7.83       .75      06.67               68.42
     Other
     receivables             -  66,825,385.9         -  66,825,385         -   58,019,82         -   58,019,82
                                    2                 .92                1.22               1.22
     Subtotal.
                 200,477,974.7  659,531,521.  108,712.33  860,118,20  272,334,05   700,941,1   198,537.6   973,473,6
                         9         43                8.55       3.15      00.02        1     90.78
     Accounts                 322,314,047.           322,314,04            335,956,0            336,380,0
     payable               -         58         -       7.58  409,926.81     86.13   14,075.42     88.36
     Short-term
     loan                  -  82,888,933.7         -  82,888,933         -   27,888,35         -   27,888,35
                                    7                 .77                3.14               3.14
     Non-current
     liabilitiesdue              20,984,249.6           20,984,249            19,208,45            19,208,45
     withinone              -          0         -       .60         -      8.29         -      8.29
     year
     Long-term
     loan                  -  49,092,928.2         -  49,092,928         -   32,823,22         -   32,823,22
                                    5                 .25                7.48               7.48
     Other
    
    
    payables 93,193.19 43,385,203.4 - 43,478,396 241,316.25 44,855,86 - 45,097,18
    
    9 .68 6.87 3.12
    
     Interest
     payable.               -          -         -         -         -  2,626,376.         -  2,626,376.
                                                                         27                27
     Subtotal
                    93,193.19  518,665,362.         -  518,758,55  651,243.06   463,358,3  14,075.42   464,023,6
                                   69                5.88               68.18               86.66
     Total        200,384,781.6  140,866,158.  108,712.33  341,359,65  271,682,81   237,582,7   184,462.1   509,450,0
                         0         74                2.67       0.09      31.84        9     04.12
    
    
    3. Liquidity risk
    
    Liquidity risk refers to the risk of a shortage of funds when an enterprise fulfills its obligation to settle cash or other
    
    financial assets. The company's policy is to ensure that it has sufficient cash to repay its due debts. Liquidity risk is
    
    centrally controlled by the company's financial department. The finance department monitors cash balances,
    
    securities that can be cashed at any time, and rolling forecasts of cash flows over the next 12 months to ensure that
    
    the company has sufficient funds to repay debts under all reasonable forecasts.
    
    XI. Disclosure of fair value.
    
    1. The end-of-period fair value of assets and liabilities measured at fair value.
    
    Unit: yuan
    
                                              Fairvalueattheendoftheterm
            Item        Fairvaluemeasurement Fairvaluemeasurement  Fairvaluemeasurement
                         at thefirstlevel      atthesecondlevel      atthethirdlevel          Total
    I. Continuousfairvalue          --                --                --                --
    measurement.
    (1) Transactionalfinancial       100,710,701.81      1,393,209,890.44              0.00      1,493,920,592.25
    assets.
    1. Financialassets
    measured atfairvalueand
    whose changesare               464,871.13              0.00               0.00          464,871.13
    included intheprofitsand
    losses ofthecurrent
    period.
    (3) Derivativefinancial           464,871.13                                             464,871.13
    assets.
    2.Financial assetsthatare
    designated tobemeasured
    at fairvalueandwhose         100,245,830.68      1,393,209,890.44              0.00      1,493,455,721.12
    changes areincludedin
    the profitsandlossesof
    the currentperiod.
    (1) Investmentindebt                          1,393,209,890.44                       1,393,209,890.44
    instruments.
    (2) Investmentinequity        100,245,830.68                                          100,245,830.68
    instruments.
    Total assetscontinuously        100,710,701.81      1,393,209,890.44                       1,493,920,592.25
    measured atfairvalue.
    (6)Transactional financial          304,022.63                                             304,022.63
    liabilities
    Derivative financial              304,022.63                                             304,022.63
    liabilities
    Total liabilities
    continuously measuredat          304,022.63                                             304,022.63
    fair value.
    2.Unsustainable fairvalue        --                --                --                --
    measurement
    
    
    XII. Related parties and related transactions.
    
    1. The situation of the parent company of the enterprise
    
                                                                Theshareholding   Theproportionof
      Name ofparent   Placeofregistration  Natureofbusiness   Registeredcapital   ratiooftheparent  votingrightsofthe
        company                                                  companytothe   parentcompanyto
                                                                  enterprise     itsownenterprise
    
    
    A description of the parent company of the enterprise
    
                    Name                     Relationshipwithourcompany        Shareholdingratio(%)
    TangZhuolin(naturalperson).                Thecontrollingshareholderofthecompany           17.52
                                        andoneoftheactualcontrollers
    TangZhuomian(naturalperson)               Thecontrollingshareholderofthecompany           8.79
                                        andoneoftheactualcontrollers
    
    
    The ultimate control of this enterprise is. Tang Zhuolin, Tang Zhuomian.
    
    Other instructions:
    
    2. The situation of the subsidiaries of the enterprise.
    
    The details of the subsidiaries of this enterprise can be found in note 9, the rights and interests in other subjects.
    
    3. The situation of joint ventures and combined ventures.
    
    For details of the important joint ventures or combined ventures of the enterprise, see note 9, rights and interests in other subjects.
    
    Other joint ventures or joint ventures that have a related party transaction with the company in the current period or have a balance
    
    with the company in the previous period are as follows:
    
            Nameofjointventureorcombinedventure                   Relationshipwiththeenterprise
    
    
    Other instructions:
    
    4. Other related parties
    
                Namesofotherrelatedparties.              Relationshipbetweenotherrelatedpartiesandtheenterprise
                      Qiu Yezhi.                       Director,GeneralManager,ChiefFinancialOfficer.
                     Zhou Wenhui.                    DeputyGeneralManagerandSecretaryoftheBoardof
                                                                  Directors.
                      XieWeiwei.                          DirectorandDeputyGeneralManager.
                     Mai Zhirong.                                IndependentDirector.
                     PengXiaowei.                               IndependentDirector.
                      HeWeifeng.                                IndependentDirector.
                      ChenHuiyi.                           ChairmanoftheBoardofSupervisors.
                     Cen Meiling.                                   Supervisor.
                      ZhaoXiuhe.                                    Supervisor.
       SMARTSHOTINCLIMITED(hereinafterreferredtoas    Minorityshareholdersofthecompany'scontrollingsubsidiary.
                    "SMARTSHOT").
    
    
    Other instructions.
    
    5. Related party transactions.
    
    (1) Related transactions for the purchase and sale of goods and the provision and receipt of services.
    
    List of goods purchased / services received.
    
    Unit: yuan
    
                    Related party  Currentoccurrence  Approvedtrading  Whetheritexceedsthe   Theoccurrence
      Related party.     transaction       amount.          quota.         tradingquota.      amountofthe
                      content.                                                   previousperiod
    
    
    Statement on the sale of goods / provision of services.
    
    Unit: yuan
    
          Related party.        Relatedpartytransaction   Currentoccurrenceamount.   Theoccurrenceamountofthe
                                 content.                                    previousperiod
    
    
    Description of related transactions in the purchase and sale of goods, provision and acceptance of labor services
    
    (2) Related party guarantee.
    
    Our company acts as the guarantor.
    
    Unit: yuan
    
       Guaranteedparty.     Guaranteeamount     Guaranteestartdate    Guaranteeexpiration   Whethertheguarantee
                                                                date         hasbeencompleted
    Dongfang Precision           278,635,000.00August10,2017      August17,2020      NO
    (Netherland)
    Dongfang Precision           357,289,680.00February20,2018     June20,2021        NO
    (Netherland)
    
    
    Our company as the guaranteed party
    
    Unit: yuan
    
         Guarantor        Guaranteedamount    Guaranteestartdate    Guaranteeexpiration   Whethertheguarantee
                                                                date          hasbeenfulfilled
    
    
    Description of related party guarantee
    
    (3) The transfer of assets and debt restructuring of related parties
    
    Unit: yuan
    
          Related party         Relatedpartytransaction     Currentoccurrenceamount   Theoccurrenceamountofthe
                                  content                                    previousperiod
    
    
    (4) Key management personnel compensation.
    
    Unit: yuan
    
                 Item                      Currentamount              Amountinthepreviousperiod
    Key managementpersonnelcompensation                     8,117,846.67                    9,579,943.46
    
    
    6. Receivables due from related parties
    
    (1) Receivable items
    
    Unit: yuan
    
                                          Ending balance                  Openingbalance
        Itemname       Relatedparty
                                    Bookbalance    Baddebtprovision    Bookbalance    Baddebtprovision
    Accounts receivable YinglianDigital          660,000.00        66,000.00       660,000.00        66,000.00
    Other receivables   SMARTSHOT            58,227.04         5,822.70        58,227.04         5,822.70
    
    
    (2) Items payable
    
    Unit: yuan
    
           Item name              Relatedparty       Bookbalanceattheendofthe  Bookbalanceatthestartofthe
                                                        period                  period
    Other receivables          YinglianDigital                          74,525.30              200,876.88
    
    
    XIII. Share payment.
    
    1. General situation of share payment.
    
    √ Applicable □ Not applicable
    
    Unit: yuan
    
    The totalamountofequityinstrumentsgrantedbythecompanyinthe                               22,600,000.00
    current period
    The totalamountofvariousequityinstrumentsofthecompany'scurrent                                    0.00
    exercise
    The totalamountofvariousequityinstrumentsinvalidatedbythe                                         0.00
    company inthecurrentperiod
    
    
    Other instructions.
    
    The 44th (interim) meeting of the third session of the Board of Directors of the Company was held on March 27, 2020 to consider
    
    and pass the "Bill on Granting Restricted Stock to Incentive Targets". The board of directors agreed to grant 22.85 million restricted
    
    shares to 42 incentive targets, the date of the first grant of restricted shares is March 27, 2020.
    
    On June 8, 2020, the Company passed the "Bill on Adjusting the Related Matters of the 2020 Restricted Stock Incentive Plan", the
    
    incentive object was adjusted to 40, and the number of restricted shares granted was adjusted to 22.6 million shares. The exercise
    
    price of this restricted share grant is 1 yuan. As of June 30, 2020, the total amount of restricted stock subscription funds granted by
    
    the company under this incentive scheme for the first time is RMB 22,600,000.00.
    
    The arrangements for the lifting of the restricted stock incentive scheme are as follows:
    
      Liftthesalesrestriction             Timeforliftingrestrictionsonsales           Lifttheproportionof
          arrangement                                                          salesrestrictions
      The firstperiodforthe     Fromthefirsttradingday12 monthsafterthefirstgrantof         20%
     liftingofsalesrestrictions  restrictedstocklistingtothelasttradingdaywithin24 months
                              fromthedateoffirstgrantingofrestrictedstocklisting
     The secondperiodforthe   Fromthefirsttradingday24 monthsafterthefirstgrantof         40%
     liftingofsalesrestrictions  restrictedstocklistingtothelasttradingdaywithin36 months
                              fromthedateoffirstgrantingofrestrictedstocklisting
      Thethirdperiodforthe    Fromthefirsttradingday36 monthsafterthefirstgrantof         40%
     liftingofsalesrestrictions  restrictedstocklistingtothelasttradingdaywithin48 months
                              fromthedateoffirstgrantingofrestrictedstocklisting
    
    
    2. Equity-settled share payments.
    
    √ Applicable □ Not applicable
    
    Unit: yuan
    
    The cumulativeamountofequity-settledsharepaymentsincluded                                  10,185,066.67
    in thecapitalreserve
    The totalamountoffeesrecognizedbyequity-settledsharesinthe                                  10,185,066.67
    current period
    
    
    Other instructions
    
    XIV. Commitments and contingencies.
    
    1. Important commitments.
    
    Important commitments that exist on the balance sheet date: not applicable
    
    2.Contingencies.
    
    (1) important contingent matters existing on the balance sheet date.
    
    1. Dongfang Precision and Minsheng Bank Co., Ltd. Foshan Branch signed a letter of guarantee / standby letter of
    
    credit contract on August 10, 2017. to guarantee the equity and loan of 35 million Euros acquired by Dongfang
    
    Precision (Netherland) from the Amsterdam branch of Industrial and Commercial Bank of China (Europe) Co., Ltd.
    
    Dongfang Precision pledged 110.11 million yuan as a deposit in Foshan Branch of Minsheng Bank of China. The
    
    guarantee period is from August 10, 2017 to August 17, 2020.
    
    2. In January 2018, Dongfang Precision and Bank of China (Hong Kong) Co., Ltd. signed a letter of guarantee /
    
    standby letter of credit contract to provide a total guarantee of not more than 44.88 million Euros for overseas
    
    subsidiary Dongfang Precision (Holland) to obtain loans from Bank of China (Hong Kong) Co., Ltd., with a
    
    guarantee period from February 20, 2018 to June 20, 2021.
    
    (2) The company should also explain the important contingent matters that the company does not need to
    
    disclose
    
    There are no important contingent matters that need to be disclosed in the company.
    
    XV.Other important matters
    
    1. Segment information.
    
    (1) The basis for determining the reporting segment and accounting policy.
    
    The company determines the operating division on the basis of internal organizational structure, management
    
    requirements, internal reporting system, etc. The operating division of a company refers to the components that
    
    meet the following conditions at the same time:
    
    (1) This component can generate income and expenses in daily activities;
    
    (2) Management can regularly evaluate the operating results of this component in order to decide to allocate
    
    resources to it and evaluate its performance;
    
    (3) The relevant accounting information such as financial situation, operating results and cash flow of the
    
    component can be obtained through analysis.
    
    The company determines the reporting segment on the basis of industry segment / product segment, and the assets
    
    and liabilities commonly used with each segment are distributed among different segments in proportion to their
    
    size.
    
    (2) Report the financial information of the segment.
    
    Unit: yuan
    
           Item          Domesticcompany     Foreigncompany       Inter-segment           Total
                                                             elimination
    Operating income            340,691,313.50       931,091,854.36       -94,291,942.73      1,177,491,225.13
    Operating cost              229,502,470.69       704,550,755.44       -92,226,402.29       841,826,823.84
    Total assets               4,726,917,079.21      2,107,380,702.70      -349,285,218.53      6,485,012,563.38
    Totalliabilities              448,946,887.90      1,613,660,266.33      -120,298,301.42      1,942,308,852.81
    
    
    XVI. Notes on the main items of the parent company's financial statements
    
    1. Accounts receivable
    
    (1) Classified disclosure of accounts receivable
    
    Unit: yuan
    
                               Ending balance                         Openingbalance
        Category       Bookbalance   Baddebtprovision  Book    Bookbalance    Baddebtprovision
                    amount percentag amount  Withdra   value   amount percentag  amount Withdraw Bookvalue
                             e          walratio                  e            alratio
    Of which:
    Accounts receivable
    for baddebt        114,596, 100.00% 2,634,56   2.30% 111,962,1153,764,3 100.00% 2,668,130   1.74% 151,096,21
    provision by         692.74           7.81          24.93   44.60            .50             4.10
    combination
    Of which:
    account age        39,608,3  34.56% 2,634,56   6.65% 36,973,7757,569,28  37.44% 2,668,130   4.63% 54,901,157.
    combination          43.62           7.81           5.81    7.50            .50              00
    Combination of
    related partiesinthe  74,988,3  65.44%    0.00   0.00% 74,988,3496,195,05  62.56%    0.00   0.00% 96,195,057.
    scope of            49.12                         9.12    7.10                             10
    consolidation
    Total            114,596, 100.00% 2,634,56   2.30% 111,962,1153,764,3 100.00% 2,668,130   1.74% 151,096,21
                     692.74           7.81          24.93   44.60            .50             4.10
    
    
    Provision for bad debts by single item:
    
    Unit: yuan
    
                                                   Ending balance
           Name
                          Bookbalance       Baddebtprovision     Withdrawalratio      Reasonforaccrual
    
    
    Provision for bad debts by combination: account age combination
    
    Unit: yuan
    
                                                     Ending balance
             Name
                                Book balance           Baddebtprovision          Withdrawalratio
    Account agecombination                 39,608,343.62             2,634,567.81                 6.65%
    Of which:
    Within 1year(including1year)            30,734,977.60              307,349.78                 1.00%
    1 to2years(including2years)              4,547,545.36              227,377.27                 5.00%
    2 to3years(including3years)              1,989,926.58              198,992.66                 10.00%
    3 to4years(including4years)               171,297.23               51,389.17                 30.00%
    4 to5years(including5years)               630,275.85              315,137.93                 50.00%
    More than5years                      1,534,321.00             1,534,321.00                100.00%
    Combination ofrelatedparties              74,988,349.12
    in thescopeofconsolidation
    Total                              114,596,692.74             2,634,567.81          --
    
    
    Description of the basis for this composition:
    
    Provision for bad debts by combination: combination of related parties within the scope of consolidation
    
    Unit: yuan
    
                                                     Ending balance
             Name
                                Book balance           Baddebtprovision          Withdrawalratio
    Combination ofrelatedparties              74,988,349.12
    in thescopeofconsolidation
    Total                              74,988,349.12                                --
    
    
    Description of the basis for this composition:
    
    Provision for bad debts by combination:
    
    Unit: yuan
    
             Name                                    Endingbalance
                                Book balance           Baddebtprovision          Withdrawalratio
    
    
    Description of the basis for this composition:
    
    If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit losses, please
    
    refer to the disclosure of other receivables to disclose relevant information about bad debts:
    
    □ Applicable √ Not applicable
    
    Disclosure by age
    
    Unit: yuan
    
                      Accountage                                  Endingbalance
    Within 1year(including1year)                                                       105,723,326.72
    1 to2years                                                                      4,547,545.36
    2 to3years                                                                      1,989,926.58
    More than3years                                                                  2,335,894.08
    3 to4years                                                                       171,297.23
    4 to5years                                                                       630,275.85
    More than5years                                                                  1,534,321.00
    Total                                                                         114,596,692.74
    
    
    (2) The provision for bad debts withdrawn, recovered or transferred back in the current period
    
    Provision for bad debts in the current period:
    
    Unit: yuan
    
                                        Amount ofchangesinthecurrentperiod
       Category    Openingbalance              Takebackorturn                          Endingbalance
                                Accrual         back        Writeoff        Other
    Provision forbad
    debts by          2,668,130.50                  33,482.69         80.00                2,634,567.81
    combination
    Total             2,668,130.50                  33,482.69         80.00                2,634,567.81
    
    
    Of which, the amount of bad debts to be recovered or transferred back in the current period is important:
    
    Unit: yuan
    
                Unitname             Amountrecoveredortransferredback           Recoverymode
    
    
    (3) The actual write-off of accounts receivable in the current period
    
    Unit: yuan
    
                         Item                                    Write-offamount
    Actual write-offofaccountsreceivable                                                         80.00
    
    
    Of which, the important write-off of accounts receivable:
    
    Unit: yuan
    
                                                                             Whetherthepayment
        Unit name     Natureofaccounts  Write-offamount   Write-offreason  Write-offprocedures   isgeneratedby
                       receivable                                  forperformance     relatedparty
                                                                                transactions
    Qingdao Runshuo   Payment                  80.00                             No
    Packaging Co.,Ltd.
    Total                  --                 80.00       --             --              --
    
    
    Notes on the write-off of accounts Receivable:
    
    (4) The status of the top five accounts receivable collected by the defaulting party at the end of the period.
    
    Unit: yuan
    
           Unit name         Endingbalanceofaccounts    Proportionoftotalending    Baddebtpreparationperiod
                                 receivable         balanceofaccountsreceivable       endingbalance
    Client Ⅰ.                          49,839,381.15                 43.49%
    Client II.                           10,696,798.15                 9.33%
    Client III.                           8,356,309.38                 7.29%
    Client IV.                           6,095,860.44                 5.32%
    Client Ⅴ.                           3,567,852.90                  3.11%              178,392.65
    Total                              78,556,202.02                 68.54%
    
    
    2. Other receivables
    
    Unit: yuan
    
                 Item                      Endingbalance                  Openingbalance
    Interest receivable                                     1,694,150.03
    Dividend receivable                                   12,264,643.27
    Other receivables                                    33,888,614.37                   36,670,496.12
    Total                                             47,847,407.67                   36,670,496.12
    
    
    (1) Interest receivable
    
    1) Classification of interest receivable
    
    Unit: yuan
    
                 Item                      Endingbalance                  Openingbalance
    Time deposit                                        1,694,150.03
    Total                                              1,694,150.03
    
    
    2) Provision for bad debts
    
    □ Applicable √ Not applicable
    
    (2) Dividends receivable
    
    1) Classification of dividends receivable
    
    Unit: yuan
    
          Project (orinvestedunit)                Endingbalance                  Openingbalance
    Suzhou ShunyiInvestmentCo.,Ltd                         12,264,643.27
    Total                                             12,264,643.27
    
    
    2) Provision for bad debts
    
    □ Applicable √ Not applicable
    
    Other instructions:
    
    (3) Other receivables
    
    1) Other receivables are classified according to the nature of the money
    
    Unit: yuan
    
            Nature ofpayment           Bookbalanceattheendoftheperiod     Bookbalanceatthebeginningofthe
                                                                          period
    Current payment                                      3,609,836.05                    1,390,770.29
    Security deposit                                      2,027,495.96                    1,522,182.68
    Export taxrebate                                       348,026.76                    1,051,258.91
    Performance compensation                                500,000.00                    8,200,000.00
    Prepaid servicecharge                                   250,000.00                      333,362.86
    Internal relatedparties                                 20,846,851.58                   24,488,538.25
    Employee loans,reserves                                1,731,284.68                      843,783.19
    Other                                             5,738,406.86                    1,827,886.33
    Total                                             35,051,901.89                   39,657,782.51
    
    
    2) Provision for bad debts.
    
    Unit: yuan
    
                          Phase 1            Phase2              Phase3
     Provisionforbaddebts  Expectedcreditloss  Expectedcreditlossover   Expectedcreditlossover        Total
                        overthenext12   theentirelifetime(nocredit  theentirelifetime(credit
                           months        impairmentoccurs)    impairmenthasoccurred)
    Balance ofJanuary1,          527,286.39          2,460,000.00                           2,987,286.39
    2020
    The balanceofJanuary1,
    2020 isinthecurrent         ——              ——                ——              ——
    period.
    Current provision             486,001.13                                               486,001.13
    Current reversal                                2,310,000.00                           2,310,000.00
    Balance ofJune30,2020       1,013,287.52            150,000.00                           1,163,287.52
    
    
    Changes in the book balance of significant changes in the loss provision in the current period
    
    □ Applicable √ Not applicable
    
    Disclosure by age
    
    Unit: yuan
    
                      Accountage                                  Endingbalance
    Within 1year(including1year)                                                        30,860,532.07
    1 to2years                                                                      1,780,547.51
    2 to3years                                                                      1,099,265.00
    More than3years                                                                  1,311,557.31
    3 to4years                                                                       553,529.78
    4 to5years                                                                       350,000.00
    More than5years                                                                   408,027.53
    Total                                                                          35,051,901.89
    
    
    3) Bad debt provision in the current period of withdrawal, recovery or reversal.
    
    Provision for bad debts in the current period:
    
    Unit: yuan
    
                                         Amount ofchangesinthecurrentperiod
        Category     Openingbalance            Takebackorturn                          Endingbalance
                                  Accrual       back        Writeoff        Other
    Provision forbad      2,460,000.00              2,310,000.00                              150,000.00
    debts bysingleitem
    Provision forbad
    debts by              527,286.39   486,001.13                                         1,013,287.52
    combination
    Total               2,987,286.39   486,001.13    2,310,000.00                             1,163,287.52
    
    
    Of which, the amount of bad debts to be recovered or transferred back in the current period is important:
    
    Unit: yuan
    
               Unitname             Amountrecoveredortransferredback           Recoverymode
    
    
    4) Actual write-off of other receivables during this period.
    
    Unit: yuan
    
                        Item                                    Write-offsamount
    
    
    Of which, key other receivables write-offs:
    
    Unit: yuan
    
                                                                              Whetherpayments
        Unitname      Natureofother   Write-offsamount     Reasonsfor    Write-offprocedures  aregeneratedby
                      receivables                      write-offs        performed        associated
                                                                                transactions
    
    
    Description of the cancellation of other receivables:
    
    5) Other receivables in the top five of the ending balance collected by the arrears.
    
    Unit: yuan
    
                                                               Proportionoftotal  Baddebtpreparation
        Unit name     Natureofpayment   Endingbalance     Accountage    endingbalanceof    periodending
                                                               other receivables      balance
    Client Ⅰ.        Currentpayment       10,754,954.53 1-2years                30.68%
    Client II.        Currentpayment        8,623,483.79Within1year              24.60%
    Client III.        Other               3,470,018.00Within1year               9.90%        34,700.18
    Client IV.        Currentpayment        2,700,000.00Within1year               7.70%        27,000.00
    Client Ⅴ.        Guaranteedeposit,        768,814.00 2-3years                  2.19%        76,881.40
                    deposits
    Total            --                 26,317,270.32--                      75.07%       138,581.58
    
    
    3. Long-term equity investment
    
    Unit: yuan
    
                              Endingbalance                           Openingbalance
         Item                   Provisionfor                             Provisionfor
                  Book balance    impairment     Bookvalue    Bookbalance    impairment     Bookvalue
    Investment in     432,581,426.57   61,855,054.35  370,726,372.22  430,846,359.90   61,855,054.35  368,991,305.55
    subsidiaries
    Investment in
    joint venturesand   78,371,147.82               78,371,147.82   70,647,476.45               70,647,476.45
    combined
    ventures
    Total           510,952,574.39   61,855,054.35  449,097,520.04  501,493,836.35   61,855,054.35  439,638,782.00
    
    
    (1) Investment in subsidiaries
    
    Unit: yuan
    
                  Opening              Changesinthecurrentperiod                        Impairment
     Invested unit  balance(book  Additional     Reduce    Provisionfor            Endingbalance  preparation
                   value)     investment   investment   impairment     Other     (bookvalue)  periodending
                                                                                   balance
      Dongfang     1,856,010.00                                             1,856,010.00
    Precision(HK)
      Dongfang
       Precision     307,666.80                                   540,800.00    848,466.80
    (Netherland)
      FosberAsia   16,738,279.20                                   383,066.67 17,121,345.87
       Shunyi     305,584,828.1                                            305,584,828.17
      Investment            7
     Parsun Power  44,504,521.38                                   811,200.00 45,315,721.38  61,855,054.35
        Total     368,991,305.5                                  1,735,066.67 370,726,372.22 61,855,054.35
                         5
    
    
    (2) Investment in associates and joint ventures
    
    Unit: yuan
    
     Invested Opening                    Changesinthecurrentperiod                     Ending  Impairme
      unit    balance Additiona Reduce  Investme  Other    Other   Declare Provision  Other   balance    nt
             (book     l    investmen ntgains comprehe  equity    cash     for            (book  preparatio
             value)  investmen    t    andlosses  nsive   changes dividends impairme         value)  nperiod
                      t           recognize  income         orprofits    nt                   ending
                                  d under adjustmen                                      balance
                                 the equity    t
                                  method
    1. Jointventure
    Yinglian  10,510,73               -86,657.9                                     10,424,07
    Digita       5.47                     2                                         7.55
    Subtotal  10,510,73               -86,657.9                                     10,424,07
               5.47                     2                                         7.55
    2.Combined venture
    Jiateng   60,136,74 7,700,000        110,329.2                                     67,947,07
    Robot       0.98     .00              9                                         0.27
    Subtotal  60,136,74 7,700,000        110,329.2                                     67,947,07
               0.98      .00              9                                         0.27
    Total    70,647,47 7,700,000        23,671.37                                     78,371,14
               6.45      .00                                                       7.82
    
    
    4. Operating income and operating costs
    
    Unit: yuan
    
                                  Currentamount                   Amountinthepreviousperiod
            Item
                            Income             Cost             Income             Cost
    Main business               154,538,552.09        93,837,630.90       141,510,632.48        95,183,587.23
    Other business                5,103,195.85          857,589.41         3,897,449.31            2,710.32
    Total                     159,641,747.94        94,695,220.31       145,408,081.79        95,186,297.55
    
    
    5. Investment income
    
    Unit: yuan
    
                  Item                      Currentamount             Amountinthepreviousperiod
    Cost methodoflong-termequityinvestment                   18,868,681.95
    income
    Long-term equityinvestmentincome                           23,671.37                     551,059.52
    calculated byequitymethod
    Bank wealthmanagementproductincome                    32,601,213.26                    8,956,836.39
    Total                                             51,493,566.58                    9,507,895.91
    
    
    XVII. Supplementary Information
    
    1. Breakdown of current non-recurring gains and losses
    
    √ Applicable □ Not applicable
    
    Unit: yuan
    
                  Item                        Amount                      Explanation
    Non-current assetdisposalgainsandlosses                       2,745.13
    Government subsidiesincludedinthe
    current profitandloss(closelyrelatedtothe
    business oftheenterprise,exceptfor                         7,097,271.94Fordetails,pleaserefertonotesVII(46)
    government subsidiesthatarefixedor                                 andVII(52)ofthefinancialreport
    quantified accordingtothenationalunified
    standard)
    In additiontotheeffectivehedgingbusiness
    related tothecompany'snormalbusiness
    operations, holdingtransactionalfinancial
    assets, derivativefinancialassets,
    transactional financialliabilities,fairvalue
    changes inderivativefinancialliabilities,                     46,010,424.48
    and disposaloftransactionalfinancialassets
    and derivativefinancialInvestmentincome
    from assets,tradingfinancialliabilities,
    derivative financialliabilitiesandotherdebt
    investments
    Other non-operatingincomeandexpenses                     -1,288,845.41
    other thantheabove
    Minus: theamountofincometaximpact                      5,538,643.77
    Effect ofminorityshareholders'equity                         103,166.14
    Total                                             46,179,786.23              --
    
    
    For the company's non-recurring profit and loss items defined by the "Announcement of Information Disclosure by Companies
    
    Offering Securities to the Public No. 1—Non-recurring Gains and Losses" and the "Announcement of Information Disclosure by
    
    Companies Offering Securities to the Public No. 1—Non-recurring Gains and Losses " the non-recurring gains and losses items listed
    
    in the report are defined as recurring gains and losses, and the reasons should be explained.
    
    □ Applicable √ Not applicable
    
    2. Return on net assets and earnings per share
    
                                                                    Earningspershare
     Profit duringthereportingperiod   Weightedaveragereturnonnetassets  Basicearningspershare   Dilutedearningsper
                                                            (yuan /share)      share(yuan/share)
    Net profitattributabletocommon                         2.89%              0.08               0.08
    shareholders ofthecompany
    Net profitattributabletoordinary
    shareholders ofthecompanyafter                         1.84%              0.06               0.06
    deducting non-recurringgainsand
    losses
    
    
    Section 12 Catalogue of Documents for Reference.
    
    1. Financial statements signed and sealed by the legal representative, chief in charge of accounting work and head
    
    of accounting institution.
    
    2. The original copies of all company documents and announcements publicly disclosed in the newspapers
    
    designated by the CSRC during the reporting period.
    
    3. The text of the 2019 annual report of the company containing the signature of the legal representative.
    
    4. The location of the above documents for reference: the securities department of the company.

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