Stock Code: 688007 Stock Short Name: Appotronics
Appotronics Corporation Limited
August 2023
本报告为深圳光峰科技股份有限公司自愿披露的《2023 年半年度报告（英文
版）》，对本报告的中英文版本理解上发生歧义时，以中文版本为准。
This is 2023 Semiannual Report (English version) voluntarily disclosed by
Appotronics Corporation Limited. In the event of any discrepancy between the English and
Chinese versions of this report, the Chinese version shall prevail.
Important Note
I. The Board of Directors, the Board of Supervisors, directors, supervisors and senior officers of
the Company hereby warrant that the information contained in this Semiannual Report is
true, accurate and complete and this Semiannual Report is free from any misrepresentation,
misleading statement or material omission, and agree to assume joint and several liability for
this Semiannual Report.
II. Alert of significant risks
The Company has described in detail the risks that may exist in the production and operation
of the Company in this Report. Refer to “Section III Discussion and Analysis of the Management -
V. Risk factors” for the relevant risks. The investors should be aware of the risk of investment.
III. All directors of the Company attended the meeting of the Board of Directors.
IV. This Semiannual Report has not been audited.
V. LI Yi, Principal of the Company, WANG Yingxia, Person in Charge of the Accounting Body,
and WANG Yingxia, Chief Accountant, hereby warrant that the financial report contained in
this Semiannual Report is true, accurate and complete.
VI. Profit distribution proposal or proposal for capitalization of capital reserve approved by the
Board of Directors during the reporting period
None
VII. Is there any material event concerning any special arrangement of corporate governance?
□ Applicable√ N/A
VIII.Risk statement regarding forward-looking statements
√ Applicable□ N/A
The forward-looking statements contained herein regarding the future plans, development
strategies or other matters of the Company do not constitute any substantive covenant made by the
Company to the investors. Investors and relevant personnel should sufficiently know about the risks
in this aspect, and understand the differences among plans, predictions, and promises. The investors
should be aware of the risk of investment.
IX. Is there any non-operating occupation of funds by the controlling shareholder or other
affiliates?
No
X. Is there any external guarantee provided in contravention of the stipulated decision-making
procedure?
No
XI. Are the majority of the directors unable to guarantee the truthfulness, accuracy and
completeness of the Semiannual Report disclosed by the Company?
No
XII. Others
□ Applicable√ N/A
Table of Contents
Financial Statements with seals and signatures of the Principal of the Company,
List of Documents Person in charge of the Accounting Body, and Chief Accountant
Available for
Inspection All original documents and announcements of the Company publicly disclosed
during the reporting period
Section I Definitions
For purpose of this report, unless the context otherwise requires, the following terms shall have the
meanings indicated below:
Terms
Company or
means Appotronics Corporation Limited
Appotronics
Appotronics Ltd. means Appotronics Corporation Ltd., the predecessor of the Company
CINEAPPO means CINEAPPO Laser Cinema Technology (Beijing) Co., Ltd.
Formovie, Chongqing
means Formovie (Chongqing) Innovative Technology Co., Ltd.
Formovie
Appotronics HK means Appotronics Hong Kong Limited
Appotronics Daye means Shenzhen Appotronics Daye Investment Partnership (LP)
Appotronics Deye means Shenzhen Appotronics Deye Consulting Partnership (LP)
Appotronics Hongye means Shenzhen Appotronics Hongye Consulting Partnership (LP)
Appotronics Chengye means Shenzhen Appotronics Chengye Consulting Partnership (LP)
Jinleijing means Shenzhen Jinleijing Investment Limited Partnership (LP)
Blackpine means Blackpine Investment Corp. Ltd.
CINIONIC means Cinionic Limited (previously known as Barco Cineappo Limited)
WeCast means WeCast Technology Corp.
GDC BVI means GDC Technology Limited (British Virgin Islands)
GDC Cayman means GDC Technology Limited (Cayman Islands)
SSE means Shanghai Stock Exchange
Anker means Anker Innovations Technology Co., Ltd.
Dangbei means Hangzhou Dangbei Network Technology Co., Ltd.
ViewSonic means ViewSonic China Limited
Delta Electronics or
means Delta Electronics, Inc.
Delta
CES means International Consumer Electronics Show
AR means Augmented Reality
HUD means Head-Up Display
DCI means Digital Cinema Initiatives of the United States
DLP means Digital Light Processing
Liquid Crystal on Silicon, a new reflective display technology that
LCOS means
organically combines LCD and CMOS integrated circuits
LCD means Liquid Crystal Display
RGB means Optical three primary colors, R: red, G: green, B: blue
LED means Light Emitting Node, a common light emitting device
On-Screen Display, an adjustment method by using a menu displayed on
OSD means
the screen
CVIA means China Video Industry Association
A screen resolution of digital products, representing the screen resolution
of 4096×2160, which is an ultra-high-definition resolution
nit means The unit of brightness
IATF means International Automotive Task Force
ADB means Adaptive Driving Beam
AI means Artificial Intelligence
PCT means Patent Cooperation Treaty
Section II Company Profile and Financial Highlights
I. Company profile
Chinese name 深圳光峰科技股份有限公司
Short name in Chinese 光峰科技
English name Appotronics Corporation Limited
Short name in English Appotronics
Legal representative LI Yi
Registered address
Street, Nanshan District, Shenzhen
Road, South Area, High-tech Industrial Zone, Nanshan District,
Shenzhen
Venture Building, South Area, High-tech Industrial Zone, Nanshan
District, Shenzhen
Historical changes of the
Zone, Nanshan District, Shenzhen
Company’s registered address
Industrial Park, South to Chaguang Road, Xili Township, Nanshan
District, Shenzhen
Xuefu Road, Yuehai Street, Nanshan District, Shenzhen
Road, Yuehai Street, Nanshan District, Shenzhen
Office address
Street, Nanshan District, Shenzhen
Postal code of office address 518052
Website http://www.appotronics.com
Email ir@appotronics.cn
Reference to changes during the
N/A
reporting period
II. Contact person and contact information
Board Secretary (Domestic representative for information
disclosure)
Name CHEN Yasha
Address
Street, Nanshan District, Shenzhen
Telephone 0755-32950536
Facsimile 0755-86186299
Email ir@appotronics.cn
III. Description of changes to the media for information disclosure and place for keeping
semiannual reports
China Securities Journal (https://www.cs.com.cn)
Designated newspaper for Shanghai Securities News (https://www.cnstock.com)
information disclosure Securities Times (http://www.stcn.com)
Securities Daily (http://www.zqrb.cn)
Websites for publishing the
Shanghai Stock Exchange website (http://www.sse.com.cn)
semiannual reports
Place for keeping the semiannual Office of the Board of Directors
reports
Reference to changes during the N/A
reporting period
IV. Stock and depository receipts of the Company
(I) Stock of the Company
√ Applicable□ N/A
Stock of the Company
Stock class Stock exchange and Stock short Stock code Former stock
board name short name
Shanghai Stock
A-shares Appotronics 688007 N/A
Exchange, STAR Market
(II) Depository receipts of the Company
□ Applicable√ N/A
V. Other related information
□ Applicable√ N/A
VI. Main accounting data and financial indicators of the Company
(I) Main accounting data
Unit: Yuan Currency: RMB
During the
Change over the
Main accounting data reporting period Prior period
prior period (%)
(Jan. - Jun.)
Operating income 1,073,249,037.75 1,269,322,202.11 -15.45
Net profit attributable to shareholders
of the listed company
Net profit attributable to shareholders
of the listed company after deduction of 34,228,839.62 22,005,386.92 55.55
non-recurring profit or loss
Net cash flow from operating activities 114,738,832.13 -78,553,359.67 N/A
Changes at the
end of the
At the end of the At the end of the reporting period
reporting period prior year from the end of
the prior year
(%)
Net assets attributable to shareholders
of the listed company
Total assets 4,340,274,686.92 4,333,350,260.15 0.16
(II) Financial highlights
During the
reporting Prior Change over the
Financial highlights
period period prior period (%)
(Jan. - Jun.)
Basic earnings per share (RMB/share) 0.16 0.10 60.00
Diluted earnings per share (RMB/share) 0.16 0.10 60.00
Basic earnings per share after deduction of non-
recurring profit or loss (RMB/share)
Weighted average return on net assets (%) 2.78 1.86 +0.92 percentage
points
Weighted average return on net assets after +0.38 percentage
deduction of non-recurring profit or loss (%) points
Proportion of R&D investments to operating income +2.72 percentage
(%) points
Explanation about the main accounting data and financial highlights
√ Applicable□ N/A
the net profit attributable to shareholders of the listed company after deduction of non-recurring profit or
loss increased by 62.98% and 55.55% year on year, respectively; the basic earnings per share, diluted
earnings per share, and basic earnings per share after deduction of non-recurring profit or loss increased
by 60.00%, 60.00%, and 40.00%, respectively year on year, primarily due to the following:
(1) During the reporting period, the incomes from the business of cinema projection services and
the business of light sources and light generators increased by 32.75% and 18.43% year on year,
respectively, while the proportion of the income from the To C business decreased, which changed the
income structure and increased the overall gross profit margin by 7.39 percentage points;
(2) During the reporting period, the non-recurring profit or loss increased by RMB 16.7247 million
year on year, an year-on-year increase by 69.80%, which caused a positive impact on the net profit
attributable to shareholders of the listed company;
decreased payment for procurement, and net recovery of security deposits during the reporting period.
VII. Differences in accounting data under Chinese accounting standards and overseas accounting
standards
□ Applicable√ N/A
VIII. Items and amounts of non-recurring profit or loss
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Note (if
Item of non-recurring profit or loss Amount
applicable)
Gain or loss on disposal of non-current assets -216,132.87
Government grants recognized in profit or loss for the current
period (excluding government grants that are closely related to the
VII. 84 of
business of the Company and are provided in fixed amount or 33,198,815.57
Section X
quantity continuously according to the applicable polices and
standards of the country)
VII. 68 of
Profit or loss on entrusted investments or assets management 5,198,708.55
Section X
Net profit or loss of subsidiaries from the beginning of the period up
to the business combination date recognized as a result of business
combination of enterprises involving enterprises under common
control
Profit or loss on changes in the fair value of held-for-trading
financial assets, derivative financial assets, held-for-trading
financial liabilities and derivative financial liabilities and 67,000.00
investment income on disposal of held-for-trading financial assets,
derivative financial assets, held-for-trading financial liabilities,
derivative financial liabilities and other debt investments, other than
those used in the effective hedging activities relating to normal
operating business
Reversal of impairment loss on accounts receivable and contract
assets tested for impairment individually
Other non-operating income and expenses 14,480.93
Other gains or losses meeting the definition of non-recurring profit
or loss
Less: Effect of income taxes 3,469,096.89
Effects attributable to minority interests (net of tax) 9,543,875.27
Total 40,685,801.33
It is required to specify the reason for defining items as non-recurring profit or loss items according to
Information Disclosure and Presentation Rules for Companies Making Public Offering of Securities No.
Information Disclosure and Presentation Rules for Companies Making Public Offering of Securities No.
□ Applicable√ N/A
IX. Explanation about performance indicators not under the Accounting Standards for Business
Enterprises
□ Applicable√ N/A
Section III Discussion and Analysis of the Management
I. Industry and main business during the reporting period
The Company, as a global leading enterprise in the field of laser display technology, stays market
and customer demand-oriented, and continues to engage in the research, development, production and
sales of laser display core devices and complete equipment based on the proprietary semiconductor laser
light source technologies and architecture. We apply the semiconductor laser light source technology to
household display, cinema, large venue, business education, and other conventional scenarios, and
successfully expands to new fields such as automotive display, aviation display, AR, robots, etc., to
provide customers with a full range of solutions.
Our products may be mainly classified into core laser display devices and complete laser display
equipment. The core devices can be further classified into laser light source (cinema light source and
large venue light source), laser TV and smart mini projection light generator, automotive optical core
devices (automotive display, AR-HUD, laser headlights) and systems; and complete laser display
equipment can be classified into laser smart mini projector, laser TV, laser cinema projector, large venue
laser projector, laser education projector and others. The services the Company performs include laser
cinema projection services, smart large-screen ecology system Feng OS and corresponding system
solutions.
As an emerging industry, laser display is at a stage of rapid growth, and its growth drivers mainly
come from: 1. technological progress has spawned emerging application fields, and semiconductor laser
light source technology has been applied to the automotive optics and other fields, and the market has
great potential for explosion; 2. the laser display industry in which the Company operates is one of the
strategic emerging industries receiving the major support from the state for accelerated development.
With the support of national and industry policies, more and more domestic enterprises and scientific
research institutions enter the upstream and downstream fields of the laser display industry chain,
strengthen the industrial chain, actively develop and iterate technology, thus further increasing the
localization rate of core components of products.
In 2007, the ALPD® semiconductor laser light source technology invented by our R&D team
created a wholly new semiconductor laser light source, which made a breakthrough in the application of
core devices and imaging solutions of laser display, hence becoming the mainstream technical route for
the laser display industry and widely used in vehicle, household, cinema, large venue, commercial, and
education fields.
In terms of technology, the ALPD® semiconductor laser light source technology is compatible with
various chip and technology routes, and is suitable for the DLP, LCOS, and LCD technologies. In terms
of market, in addition to traditional applications such as cinema, large venue, and business education,
emerging industries such as intelligent cockpit, intelligent networking, AR, and AI are booming, and
gradually become a new application development focus of the laser display industry, and the overall
scale of the industry continues to expand, which is expected to help to broaden the application scenarios
of the ALPD® semiconductor laser light source technology.
(1) Core technologies and core devices
The ALPD® technology independently developed by the Company at its early stage created a
wholly new semiconductor laser light source - the ultra-high-brightness semiconductor laser light source
based on rare earth light-emitting materials. The innovative combination of the semiconductor solid laser
with the rare earth phosphor material is the key component of our ALPD® semiconductor laser light
source technology. The blue laser of the gallium nitride (GaN) semiconductor material system is used to
excite phosphor on the phosphor wheel, hence obtaining the green light and red light in a cost-effective
manner.
On one hand, since the phosphor material contains numerous doping ions that emit light on their
own, different doping ions emit light at slightly different time, and the lights are emitted towards various
directions of the whole space, there is no time or spatial interference, hence eliminating speckle from the
origin of the technology. On the other hand, thanks to the phosphor wheel as a core device developed
and manufactured by the Company, and the rare earth phosphor materials as an advantageous industry of
China, we can effectively control the costs of the devices.
As a result, our ALPD® semiconductor laser light source technology solves the problem of speckle
and problem of costs of conventional RGB trichromatic laser display, hence achieving industrialization
rapidly and becoming the mainstream technology architecture for laser display at present.
Our latest independently developed ALPD® 5.0 super panchromatic laser technology, which is a
breakthrough on the basis of our early technology architecture, creatively integrates six light sources
(three colors of laser light sources + three colors of LED light sources) by employing a unique light
combination technology. This solves the technical bottleneck of pure three-color laser light sources or
pure three-color LED light sources, effectively overcomes the problems of speckle and colorful edges
caused by pure laser display and the problems of limited brightness for pure three-color LED, hence
achieving the advantages of higher brightness, no speckle, and more comfortable colors.
(2) Laser products
Laser display products involve several fields, including optics, electronics, materials, physics,
mechanical designing, precision manufacturing, etc. Specifically, in the designing of mechanical
structures, simulation and designing of heat and stress, designing of optical lens and other components,
electronic software and hardware (especially for image processing), analysis of ultra-high-definition
signals, precision manufacturing, etc., the Company has profound technologies and manufacturing
processes barriers in all the foregoing fields.
It should be noted that at present, the ALPD® semiconductor laser light source technology is the
only laser display and lighting technology meeting automotive standards thanks to its obvious technical
advantages in the automotive optical field.
As the display technology of a new generation, thanks to the advantages of high brightness, small
size, long service life, wide color gamut, environment friendliness, the ALPD® semiconductor laser light
source technology has a broad space for market application. Besides the conventional display field, it
has expanded to the automotive optics, AR, aviation, and many other innovative fields.
As a leader in the laser display technology, Appotronics has created a strong patent moat around the
underlying technical architecture of the ALPD® semiconductor laser light source technology, which is
hard to be bypassed by projection brands in the industry entering the route of laser phosphor
technologies. We are committed in the breakthroughs, innovations, expansion of application scenarios,
and industrialization of semiconductor laser light source technology, and created technology reserves
and patent portfolios covering the whole technology chain of laser display technology from key system
architecture, core devices to key algorithm. Thanks to the core competitive advantages consisting of
“patent moat + technical barriers”, the Company holds a key position at the upstream core device stage.
II. Core technologies and progress in R&D of technologies
We are committed in the breakthroughs, innovations, expansion of application scenarios, and
industrialization of semiconductor laser light source technology, and created technology reserves and
patent portfolios covering the whole technology chain of laser display technology from key system
architecture, core devices to key algorithm. Meanwhile, the Company has devoted many R&D resources
in the miniaturization of laser display system, light source architecture, complete equipment structure,
machine perception and the preparation and processing of thin film materials to maintaining the leading
position in the industry. As a Leader Level Member of the Laser Illuminated Projector Association
(LIPA), we have participated in the preparation of the international laser display standard.
With the support of the data, algorithm and design solutions accumulated by us over the years, we
can rapidly come up with products and solutions meeting the requirements of different application
scenarios, such as cinema projection, home entertainment, outdoor exhibition, ultra large-sized display,
and immersive display. Meanwhile, we have continuously achieved breakthrough in automobile-grade
laser light generators, AR optical modules, etc., and released products to the market.
National scientific and technology awards
□ Applicable√ N/A
Qualification of national “little giant” enterprises in specialized, refine, differential, and innovative
aspects, and “leading enterprise” in the manufacturing industry
□ Applicable√ N/A
During the reporting period, the Company made the following achievements in technology and
product innovation:
(1) Core technologies and core devices
A.Core technologies
In November 2022, we officially released the ALPD® 5.0 super panchromatic laser technology, and
moved further towards productization in 2023. Thanks to the innovation in the key technical architecture,
this technology has the advantages of higher brightness, no speckle, and more comfortable colors.
Relying on the unique light combination technology and profound patent barriers, the ALPD® 5.0
super panchromatic laser technology integrates three colors of laser light sources with three colors of
LED light sources to achieve the unprecedented integration of six light sources. This technology
perfectly overcomes the technical bottleneck of pure three-color laser light sources or pure three-color
LED light sources, effectively solves the problems of speckle and colorful edges, hence achieving the
advantages of higher brightness, no speckle, and more comfortable colors to produce extreme visual
experience for users.
On the basis of the innovative light source architecture, the ALPD® 5.0 super panchromatic laser
technology also has an outstanding dynamic color gamut modulation, so that the system employs an
algorithm to perform pre-analysis to identify the color gamut standard required for playing a video, and
feeds back such standard to the light source for modulation; this accurately restores the color gamut that
should be achieved for a corresponding image to present the truest colors and brightness.
B.Core devices
In the field of automotive core devices, we released the world’s first automobile-grade colorful
laser headlight at the 20th Shanghai International Automobile Industry Exhibition. Meanwhile, we also
presented various immersive in-vehicle digital interaction solutions, such as window display, in-vehicle
transparent display, in-vehicle entertainment large screen, smart surface, etc.
In the field of automotive display and lighting, the ALPD® technology used in our colorful laser
headlights is the only laser technology that has passed the automobile-grade certification by now - it
integrates the three functions of high beam, low beam, and projection display, and even implements
colorful display for the first time to present ultra-high-definition and finer road display for more accurate
ADB control, hence meeting the dual requirements of “lighting + display” for future smart headlights.
There are obvious advantages for applying laser light sources to smart headlights. Firstly, the laser
is brighter. With the same DLP or LCoS chip, the luminous flux of laser is 4 times of LED. Secondly,
laser devices are smaller. For example, our laser headlight module can implement the light aperture of
beam and low beam.
Moreover, the ALPD® colorful laser headlight is a programmable component; therefore, we can
develop various applications specific for driving, entertainment, and human-vehicle interaction for
vehicle manufacturers, so as to create new experience of intelligent vehicles for consumers.
In the field of household core devices, based on the ALPD® semiconductor laser light source
technology, we are continuously developing light generator products for laser mini projectors to meet
diversified requirements of customers. During the reporting period, we supplied light generators for
Dangbei’s new laser projector D5X Pro. The light generator adopts the ALPD® semiconductor laser
light source technology to present high-brightness, clear, and speckle-free images, hence creating more
eye-friendly use experience for consumers. Thanks to the high performance of laser light generators, this
light generator allows appearance designed with a smaller and more compact size of the overall device.
C.Algorithms
During the reporting period, based on the study achievements of 3D visual algorithms, we
developed the 3D and real-time projection and rendering system based on multiple points of sight, which
can accurately sense the geographic information and semantic information of the projection bearing
surface, render 3D content in real time, and achieve high-precision overlapping projection display. Being
suitable for rapid mass production and measurement against specifications, and being equipped with
functional modules for device parameter estimation, projection assistance (i.e. automatic focusing,
automatic omnidirectional correction, automatic obstacle avoidance, automatic screen-in, non-inductive
focusing, non-inductive omnidirectional correction etc.), high-quality 3D model reconstruction for the
projection bearing surface, AI object gesture estimation, real-time overlapping projection rendering,
monocular/binocular 3D rendering, AI content generation etc., this system can achieve high-quality 3D
sensing and real-time rendering in projection augmented reality (projection AR) applications, making
projection more interesting and novel. This algorithm system may be applied to large venue, consumer,
and other fields to provide customers with solutions of greater functions, and provide consumers with
more genuine and immersive experience.
(2) Branded complete equipment
A. Household products
In the field of household smart mini projectors, Formovie released multiple new projectors,
including X5 laser projector, Xiaoming Q3 and Q3 MAX smart projectors, etc. In March 2023,
Formovie officially released the X5 laser projector, which was the first projection product directly
adopting the CVIA brightness standard in the industry. Being equipped with the ALPD® semiconductor
laser light source technology, the X5 laser projector can achieve speckle-free and eye-friendly 4K
resolution and the brightness up to 4,500 CVIA lumens, which is brighter than TVs and achieved
projection for a 1,800-inch giant screen.
In the field of household laser TVs, Formovie released the laser TV C3 in May 2023. Being
equipped with the ALPD® semiconductor laser light source technology that is same as high-end cinema
laser halls, this product can display outstanding, clear, and speckle-free images while improving the
brightness performance to 400nit.
B. Dedicated display equipment
In March 2023, we released the T Pro, G Pro, D, and other series of large venue projectors at the
Summit of Dedicated Display Core Partners, and achieved product upgrade in terms of brightness, image
quality, and lens adaptation. The T Pro series high-brightness large venue projector is a laser large venue
projector with stable performance and brightness up to 30,000lm; it is equipped with the ALPD® dual-
color laser light source technology and the 3DLP imaging technology to produce outstanding colors. The
core light source has the service life of up to 20,000 hours and supports dual-channel signal backup.
Being able to restore colors accurately with outstanding stability, this product is suitable for large venues,
outdoor lighting, stage performance, and lease scenarios. In terms of software, we released the “new
Appotronics OSD system” and “Appotronics dedicated console system” to improve the control of
projectors during installation, adjustment, and management, helping users to efficiently complete project
management, operation, and maintenance.
List of intellectual property rights acquired during the reporting period
Increase Total
Applications Applications
Granted (pcs) Granted (pcs)
(pcs) (pcs)
Patent for
invention
Patent for utility
model
Patent for design 12 10 232 212
Software
copyright
Others 32 45 1,150 1,025
Total 196 190 3,982 3,059
Note: 1. The “others” showed in the above table refers to the Company’s trademarks; 2. During the
reporting period, the Company filed a total of 15 valid PCT international patent applications.
Unit: Yuan
Current period Prior period % Change
R&D investments expensed 126,406,142.12 114,959,786.37 9.96
R&D investments capitalized - - -
Total R&D investments 126,406,142.12 114,959,786.37 9.96
Proportion of R&D investments to +2.72 percentage
operating income (%) points
Proportion of R&D investments
- - -
capitalized (%)
Reason for the material change in the total R&D investments compared with last year
□ Applicable√ N/A
Reasons for the great change in the proportion of R&D investments capitalized and explanation
about the rationality thereof
□ Applicable√ N/A
√ Applicable□ N/A
Unit: 0’000 Yuan
Investment
Estimated Progress
in the Aggregate Technological
No. Item total or interim Goals Application scenario
current investment level
investment results
period
Innovative Provide customized automotive optical
Automotive, AR, and
projection Laboratory products for vehicle manufacturer Leading in the
and optical test brands, and develop AR optical industry.
scenarios.
application modules, etc.
Core
Continuously develop the new
device Continuous
generation ALPD® semiconductor laser
light development of core
Mass light source technology to achieve light Leading in the
production sources and light generators with wider industry.
light devices for use in
color gamut, higher brightness, and
generator various fields.
higher energy efficiency.
project
Develop laser TVs with advantageous
Mass Leading in the
production industry.
and eye-friendliness.
Develop DCI-compliant and highly
Intended for the high-
Laser cost-effective household cinema
Mass Leading in the end household market
production industry. and projection halls at
projector cinema screen for cinema projection
cinemas.
halls.
The smart mini projector products with
high performance and high cost
effectiveness will be researched and
Smart
Mass developed, and different series of Leading in the Intended for home mini
production products will be laid out to make industry. projector market.
projector
breakthroughs in technology
innovation, product form innovation
and quality upgrade and meet different
user needs.
Dedicated
Multiple laser large venue projectors
display
with high brightness, education Large venue projector,
products
Mass projectors, and business projectors with Leading in the business education
production cost effectiveness will be researched industry. projector and other
venue +
and developed for meeting different fields.
business
user needs.
education)
Total - 74,273.00 12,640.61 52,209.36 - - - -
Unit: 0’000 Yuan Currency: RMB
Basic information
Current period Prior period
Number of R&D staff (persons) 465 471
Proportion of R&D staff to total employees of
the Company (%)
Total compensation of R&D staff 8,664.32 7,641.61
Average compensation of R&D staff 18.63 16.22
Education
Academic background Number Percentage (%)
Master and above 132 28.39
Bachelor and below 333 71.61
Total 465 100
Age structure
Age Number Percentage (%)
Below 30 (exclusive) 162 34.84
Total 465 100
Note: The average compensation of R&D staff shown in the table above was the average compensation
for the first half of 2023 and the first half of 2022, respectively.
□ Applicable√ N/A
III. Analysis of core competitiveness during the reporting period
(I) Analysis of core competitiveness
√ Applicable□ N/A
The Company stays innovation-driven, continues to increase R&D investment in forward-looking
technology arrangement and product technology development. As a high-tech enterprise, the Company
will continue to improve R&D capabilities as the main theme of the Company’s core competitiveness,
and continue to improve the R&D system. With Mr. LI Yi, Chairman and General Manager, as the core
personnel of R&D, the Company has established a leading R&D team in optical modules, mechanical
designing, thermal simulation, software and hardware control and preparation of rare earth phosphor
materials, developed and innovated the laser display technology for many years, thus having
accumulated profound R&D technical strength and got a deep understanding and judgment of the
industry’s cutting-edge technology and development trend.
The Company has set up a research institute and a research and development center to jointly
coordinate technology planning, development and accumulation. The institute carries out forward-
looking product technology research and product verification, develops it into a new product under a
new application scenario, and ensures that R&D resources are advanced; the R&D center, combining the
R&D and scientific research achievements of the research institute, coordinates the management of new
product development until mass production and launch. With leading R&D technical resources, the
Company significantly improves the efficiency of R&D planning through the cooperation of R&D
center and research institute, and applies the latest R&D achievements to projection display products.
arrangement for application scenarios is made
Based on the technical advantages of core devices and market development trends, the Company
has been committed to the breakthrough and innovation of semiconductor laser light source technology,
the development of application scenarios and the industrialization promotion, and thus forms the
technical reserve and patent arrangement of the whole technology chain of laser display from key system
architecture, core devices to key algorithms, and constantly optimizes and improves the strategic
arrangement of automotive optics, aviation display, AR and other application fields. We promote the
innovative application of core devices in new fields and new tracks, and continue to broaden the long-
term growth space of core device value.
The Company takes the underlying technical architecture patent of the original semiconductor laser
light source technology as the center, and builds a solid and interconnected intellectual property patent
system, and it is difficult for competitors to fully imitate or directly bypass the underlying patent
arrangement of the Company’s laser phosphor technology route. The Company actively responds to the
national “intellectual property power strategy” and increases the proportion of high-value patents. As of
June 30, 2023, the Company had a total of 2,714 patents filed and granted throughout the world,
including 1,901 patents granted throughout the world, of which 1,007 ones were patents for invention.
In terms of technology leadership, the Company’s original semiconductor laser light source
technology has become the mainstream technology in the current laser display field, and as the
underlying key architecture technology, it has been used more than 670 times by leading companies in
the same industry, such as Philips of the Netherlands, Osram of Germany and Epson of Japan.
(II) Events occurred during the reporting period that have a material effect on the Company’s
core competitiveness, analysis of the effect and countermeasures
□ Applicable√ N/A
IV. Discussion and analysis of business situations
In the first half of 2023, we persisted in the core strategy of “core technologies + core devices +
application scenarios” in response to challenges in the operating environment. Meanwhile, we increased
R&D efforts for core technologies and growth businesses to build up energy for sustainable development
of the Company.
During the reporting period, we made continuous efforts to expand the business of automotive core
devices; the stable recovery of the business of cinema core devices and the business of dedicated display
improved the overall gross profit margin of the Company; the business of household core devices and To
C products experienced revenue reduction due to prudent consumption of the public and change in
consumption habits. During the first half of 2023, our operating income was RMB 1.073 billion,
decreased by 15.45%; the net profit attributable to the parent company reached RMB 74.9146 million,
increased by 62.98% year on year; and the overall gross profit margin of the Company was 37.70%,
increased by 7.39 percentage points year on year.
foundation for development
? Obtained fixed orders from multiple vehicle manufacturers to continuously increase the
ALPD® installations
During the reporting period, after making active efforts to communicate with well-known
automobile manufacturers and the downstream and upstream players in the supply chain, and to promote
favorable cooperation, we received the Development Nomination Letters from BYD, Beijing Electric
Vehicle, and other outstanding vehicle manufacturers, which led to the stable development of the
business of automotive core devices. The increase in fixed orders and the mass production and delivery
of products under corresponding fixed orders will lead to positive impact on the operating performance
of the Company during the project life cycle of the business of automotive core devices.
At the end of the period, besides the 5 nominations we have obtained, we also communicated with
multiple vehicle manufacturers on laser headlights, AR-HUD, and other products to build the foundation
for projects of their new vehicle models.
? Actively participated in major industry exhibitions and released new products and new
concepts for automotive optics
In January 2023, at the International Consumer Electronics Show (CES 2023), the automobile
brand BMW released Dee - the world’s first concept car equipped with the multi-window immersive
display technology at four windows, which technology was supplied by Appotronics. An ultra small-
sized and high-brightness ALPD® DLP light generator is used to achieve the functions of projection
inside and display outside, and projection inside and display inside at the side windows, so that the
driver and passengers can interact with the display image either inside or outside of the car.
In addition, at the 20th Shanghai International Automobile Industry Exhibition held in April 2023,
we made our debut with an exhibition car equipped with the automotive immersive laser display and
lighting technical scenario, and released the world’s first automobile-grade colorful laser headlight, and
the immersive in-vehicle digital interaction solution containing window display, in-vehicle transparent
display, in-vehicle entertainment large screen, smart surface. This presented our new concept for various
automotive optical scenarios in the future, hence providing drivers and passengers with experience that
is more intelligent and interesting.
? Built a comprehensive supply chain system for the automotive optical business to get ready
for delivery of products for dedicated projects
We constantly build and improve the supply chain system in consideration of IATF standards,
automotive industry standards, and the requirements of customers in cooperation at present, including
but not limited to building different production lines for automotive products for mass production
delivery to vehicle manufacturer customers; constantly optimizing the plan and delivery management,
manufacturing management, engineering management, quality management, and other functions in
accordance with the whole-process designing for automotive projects; and building a set of strict
procedure management system containing quality control, procurement management, engineering
management, and production management specific for the automotive business, so as to ensure the
quality of automotive products both on complete vehicles and on the end market.
? Strengthened the patent layout in intellectual property rights to enhance the unique
advantages in automotive optics
In the field of automotive display and lighting, our ALPD® semiconductor laser light source
technology is the only laser technology that has passed the automobile-grade certification by now. While
continuously enhancing R&D efforts for automotive optics, we constantly improve the patent layout in
technologies for automotive core devices to enhance our head start advantages and unique advantages in
the field of automotive optics. During the reporting period, we have 62 new patents granted and filed for
technologies of automotive core devices, an increase of 113.79% year on year; as of June 30, 2023, we
have a total of 176 patents granted and filed, an increase of 70.87% year on year.
In consideration of the growing demands for intelligentization and scientific technologies in
vehicles, we will actively expand the business of automotive core devices in three major directions,
namely, automotive display, laser headlight, and AR-HUD, actively explore more novel and comfortable
smart vehicle experience with outstanding domestic and overseas automakers and upstream and
downstream partners in the supply chain, and make use of our resources to develop high-quality
dedicated products, hence driving the rapid development of the growth business.
results in overseas market expansion
With respect to the domestic market, the cinema market was gradually recovering - the number of
films shown increased by 50% year on year in the first half of 2023. According to the statistics of China
Film Administration, as of June 30, 2023, the total box office in China for the first half of 2023 was
RMB 26.271 billion, up by 52.91% year on year. Driven by multiple favorable factors, such as sufficient
supply of films and increased showings, we achieved the operating income of RMB 180 million from
the business of cinema projection services, up by 32.75% year on year. Thanks to the accumulation and
leading advantages built by the Company for multiple years, we achieved over 800 installations of newly
leased light sources during the reporting period. As of June 30, 2023, over 28,600 sets of ALPD® laser
light source projection solutions have been installed throughout China. Besides the cinema projection
services, the subsidiary CINEAPPO continuously improved its product portfolio in recent years, and
built various innovative products and services in consideration of the different requirements of cinema
customers.
With respect to the overseas market, the box office in the North America was USD 4.4 billion in the
first half of 2023, up by nearly 20% year on year. Given the continuous increase in the film watching
demands, we will take active measures to expand the overseas market. Our light source business has
expanded to North America, Europe, the Middle East, Southeast Asia, and other regions.
projection market
Entering the year 2023, the public became more prudent in consumption, which affected the
demands of consumer electronics to a certain extent. Meanwhile, the market entered a transitional period
due to changes in the arrangement of smart projection brands. In the first half of 2023, our Business
Division of Household Core Devices worked actively to assist Dangbei, ViewSonic, Anker, and other
customers in releasing new products.
We officially released the ALPD® 5.0 super panchromatic laser technology in November 2022.
Thanks to the innovation in the key technical architecture, this technology has the advantages of higher
brightness, no speckle, and more comfortable colors. In this year, we will take the lead in releasing
ALPD® 5.0 light generator products in the household field, and the Business Division of Household
Core Devices will assist customers in releasing new products to allow consumers to experience
projection products that are more outstanding.
The reporting period witnessed the gradual recovery of the cultural and tourism lighting, night
economy, and cultural and art market in China. We helped customers in multiple benchmark projects,
including the light show on the world’s highest cooling tower - “Lighting Show Program of the Indirect
Cooling Tower of Mengtai Dongsheng Phase II”. Meanwhile, thanks to the recovery of offline education
activities, our education business performed outstandingly. In the first half of 2023, we achieved the
operating income of RMB 202 million from the dedicated display business, which achieved favorable
recovery with the increase by 13.79% year on year.
Figure 1: Lighting Show Program of the Indirect Cooling Tower of Mengtai Dongsheng Phase II
To deepen the strategic cooperation with core customers and partners, we held a summit of core
partners under the theme of “Innovate Together to Create a Bright Future” in March 2023, at which we
explored new opportunities and technical trends with core partners, and released multiple new products
and software. In terms of new products, we released the T Pro, G Pro, D, and other new products and
achieved product upgrade in terms of brightness, image quality, and lens adaptation. In terms of software,
we released the “new Appotronics OSD system” and “Appotronics dedicated console system” to
improve the control of projectors during installation, adjustment, and management, helping users to
efficiently complete project management, operation, and maintenance.
For the overseas market, relying on the core advantages of the ALPD® semiconductor laser light
source technology, we will further improve the influence of the ALPD® brand, enhance the overseas
layout, and expand the size of the overseas business.
fluctuation in the demands of consumer electronics
Under the industry background of prudent consumption of the public, change in consumption habits,
and change in market conditions, the subsidiary Formovie continuously improved its business structure
by making great efforts to develop the cost-effective sub-brand Xiaoming and actively responding to the
changes in the current market conditions. This increased the ratio of Formovie’s self-branded business to
its total income to 78%.
During the reporting period, facing the short-term fluctuation in the market of consumer electronics,
Formovie paid great attention to the cultivation and development of its self-branded products, and
released new products such as the laser projector X5, laser TV C3, Xiaoming Q3 and Q3 MAX smart
projector.
Significant changes in the operations of the Company during the reporting period, and the events
that have or are expected to have a significant impact on the operations of the Company during
the reporting period
□ Applicable√ N/A
V. Risk factors
√ Applicable□ N/A
At present, given that the global economy is experiencing cyclical fluctuation, both domestic and
overseas economy is complex and prone to changes. Under such circumstances, the public are more
prudent in consumption, which slows down the demands on the consumer electronics market. As
optional consumption products, smart projection products are facing more significant short-term
fluctuation.
We will continue to enhance efforts for studying the macro economic conditions, closely follow the
development trend of the consumer electronics industry, conduct in-depth research into market demands,
constantly enhance efforts for product R&D and technology investment, improve our R&D and product
designing competence, assess risks rapidly, and take initiative to make relevant business adjustment,
hence improving the risk tolerance of the Company.
(1) Risk of impairment of accounts receivable
As of the end of the reporting period, the book value of our accounts receivable was RMB
receiving the payment therefor. We give certain credit period to some major and high-quality customers.
In case of any material adverse change in the business condition of our customers, we may be unable to
recover certain accounts receivable, which may have an adverse effect on our operating performance in
the future.
The Company strengthens risk management and control, continuously tracks and controls customer
credit, and strengthens the assessment of accounts receivable collection, and establishes an early
warning system for overdue accounts receivable; for individual customers who maliciously default and
have a long period of arrears, payment will be recovered through arbitration, litigation and other legal
methods.
(2) Risk of impairment of inventories
As of the end of the reporting period, the book value of our inventories was RMB 757.7190 million,
accounting for 17.46% of our assets. Our inventories mainly comprise raw materials and goods in stock.
In the event of any significant change in the competition pattern of the industry, and material innovation
in laser display technology and products, the recoverable amount of the inventories will be lower than
their book value. The impairment of inventories will have a negative effect on our earnings. The
Company will pay close attention to the changes in supply and demand of the industrial chain, and
promptly carry out production and marketing coordination according to the market and production
conditions to reduce product inventory risks.
(3) Risks of impairment of fixed assets
As of the end of the reporting period, the book value of our fixed asset was RMB 379.9624 million,
accounting for 8.75% of our assets. Our fixed assets mainly consist of production equipment and cinema
projector light sources for lease, where the cinema projector light sources account for 71.87%. If force
majeure factors result in shutdown of cinemas, the cinema projector light sources may be idle, causing
risks of impairment of fixed assets and adverse effects to the operation of the Company. In order to cope
with the above risks, the Company will pay close attention to the status of fixed assets, strengthen
communication with business departments, improve the efficiency of asset use, and reduce the risk of
impairment. In the meanwhile, for assets that show signs of impairment, the Company will measure the
recoverable amount and make an impairment provision for fixed assets based on the difference between
the recoverable amount and the carrying value.
(4) Risks of exchange rate movement
The Company’s procurement and sales involve a variety of foreign currencies, of which dollar is
the main foreign currency. If the exchange rate of the relevant currency fluctuates, it will have a certain
impact on the Company’s financial position. In this regard, in order to effectively avoid the risks of the
foreign exchange market, prevent large fluctuations in the exchange rate from adversely affecting the
Company’s business performance, improve the efficiency of the use of foreign exchange funds, and
reasonably reduce financial costs, the Company carries out foreign exchange derivatives and other
businesses in a timely manner to reduce the risk of exchange rate fluctuations.
Under the impact of changes in the internal and external environment, there are risks that the
Company cannot implement investment projects as expected. Despite the efforts of the Company in
enhancing the management over investment projects, accelerate the progress of investment projects, and
constantly monitoring the progress of such investment projects, in the actual implementation, this cannot
avoid situation like delayed construction compared with the plan, or adjustment to the implementation
plan or solution in response to industry and market development. Upon the occurrence of such
circumstances, the Company will make decisions in accordance with relevant provisions and promptly
fulfill its obligations for information disclosure.
At present, the Company is in the process of arbitration and counter arbitration with relevant parties
of GDC concerning the rights and interests of the parties. Because GDC Cayman, GDC BVI, Mr.
ZHANG Wanneng and his management team violated the provisions of the Shareholders’ Agreement
and Settlement Agreement, including but not limited to the appointment of directors in violation of
corporate governance regulations, violation of protective provisions for the Company, and failing to
purchase the minimum quantity of C5 projectors and core device parts by the end of 2021.
The cooperation on the purchase business for cinema hardware products between the Company and
GDC BVI is subject to uncertainty. The trial of this case has not been started, the impact of such case on
the profit or loss of the Company cannot be determined at present; the eventual actual impact depends on
the award of the arbitration tribunal or the negotiation between the parties. The Company has engaged a
professional attorney team and taken relevant legal measures to safeguard the legitimate rights and
interests of the Company and all shareholders in accordance with law, and will promptly fulfill the
information disclosure obligations in accordance with relevant provisions.
VI. Main business activities during the reporting period
Refer to “IV. Discussion and analysis of business situations” in this section for details.
(I) Analysis of main business
Unit: Yuan Currency: RMB
Item Current period Prior period % Change
Operating income 1,073,249,037.75 1,269,322,202.11 -15.45
Operating costs 668,659,467.49 884,560,607.88 -24.41
Selling expenses 143,399,660.02 120,302,361.36 19.20
Administrative expenses 86,696,223.82 106,015,842.36 -18.22
Financial expenses -17,021,406.56 -3,353,880.91 N/A
R&D expenses 126,406,142.12 114,959,786.37 9.96
Net cash flow from operating 114,738,832.13 -78,553,359.67 N/A
activities
Net cash flows from investment
-260,010,504.24 5,167,457.19 -5,131.69
activities
Net cash flows from financing
activities
Description of reasons for changes in the operating income: The operating income decreased by
Description of reasons for changes in operating costs: The operating costs decreased by 24.41% year
on year, primarily due to the decrease in the operating costs corresponding to the year-on-year decrease
by 39.97% of the operating income from the To C business;
Description of reasons for changes in the selling expenses: The selling expenses increased by 19.20%
year on year, primarily due to the increase in marketing fees, salaries of the sales staff, etc.;
Description of reasons for changes in the administrative expenses: The administrative expenses
decreased by 18.22% year on year, primarily due to the year-on-year decrease by RMB 19.2929 million
of the share-based payment;
Description of reasons for changes in the financial expenses: The financial expenses decreased by
RMB -13.6675 million year on year, primarily due to the year-on-year increase in the subsidy for
interests on loans and interest incomes received;
Description of reasons for changes in the R&D expenses: The R&D expenses increased by 9.96%
year on year, primarily due to the increase in the R&D expenses in the business of automotive core
devices;
Description of reasons for changes in the net cash flows from operating activities: The net cash flow
from operating activities increased by RMB 193.2922 million year on year, primarily due to the
optimized supply chain management, decreased payment for procurement, and net recovery of security
deposits during the reporting period;
Description of reasons for changes in the net cash flows from investment activities: The net cash
flow from investment activities decreased by 5,131.69% year on year, primarily due to the increase in
the purchase of wealth management products;
Description of reasons for changes in the net cash flows from financing activities: The net cash flow
from financing activities decreased by 11.13% year on year, primarily due to the increase in the
repayment of due bank loans.
sources of the Company
□ Applicable√ N/A
(II) Explanation about material change in profit due to non-main business
□ Applicable√ N/A
(III) Analysis of assets and liabilities
√ Applicable□ N/A
Unit: Yuan
% of
% of total
total
Balance at the Balance at the assets at the
assets at %
Item end of the end of the end of the Explanation
the end Change
period prior period prior
of the
period
period
Held-for- Primarily due to the
trading 564,877,200.00 13.01 352,880,000.00 8.14 60.08 increase in the
financial purchase of structural
assets bank deposits in the
current period
Primarily due to the
increase in commercial
Notes
receivable
received in the current
period
Primarily due to the
increase in bank
Receivables
financing
received during this
period
Primarily due to the
increase in the
Contract warranty deposit for
assets the new integration
project in the current
period
Primarily due to the
Non-
increase in the long-
current
term receivables due
assets due 28,306,652.31 0.65 13,431,554.82 0.31 110.75
within 1 year as of the
within 1
end of the reporting
year
period
Primarily due to the
increase in the
Long-term
receivables
receipts in the current
period
Primarily due to the
Other non-
increase in
current 18,633,790.53 0.43 12,569,088.37 0.29 48.25
prepayments for long-
assets
term assets
Primarily due to the
payment of bank
acceptance bills that
Notes
payable
beginning and paid
during the reporting
period
Primarily due to the
payment of accrued
Employee
salaries and wages as
benefits 29,744,716.45 0.69 58,470,960.55 1.35 -49.13
well as bonuses for the
payable
preceding year in the
current period
Primarily due to the
subscription amounts
for restricted shares
Other
payables
period, for which the
share registration has
not been completed
Other Primarily due to the
current 9,799,529.40 0.23 28,383,608.37 0.66 -65.47 payment made in the
liabilities current period for
rebates incurred in the
prior period
Primarily due to the
Long-term new long-term bank
borrowings borrowings incurred in
the current period
Primarily due to the
recognition and
Deferred
income
income to other
income
Other information
None
√ Applicable□ N/A
(1) Size of assets
Including: The overseas assets were RMB 481.0871 million, representing 11.08% of the total assets.
(2) Explanation about the high proportion of overseas assets
□ Applicable√ N/A
Other information
None
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance of book
Item Reason
value
Other monetary funds 10,961,787.42 Security deposits
Bank deposits 40,000,000.00 Term deposits
Accounts not handling for a
Bank deposits 5.49
long time
Intangible assets 275,524,999.80 Mortgage collateral
Total 326,486,792.71 -
□ Applicable√ N/A
(IV) Analysis of investments
Overall analysis of external equity investments
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Investment amount in the reporting period (in Investment in the same period of the
Range of change
RMB) prior year (in RMB)
□ Applicable√ N/A
□ Applicable√ N/A
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Gain or loss Cumulative fair
Impairment of Purchase Sale/redemption
Asset Opening on changes in value changes Other Closing
the current amount for the for the current
category balance fair value for included in changes balance
period current period period
the period equity
Equities 12,880,000.00 12,880,000.00
Others 351,354,460.38 -4,900,000.00 222,941,577.33 574,296,037.71
Total 364,234,460.38 -4,900,000.00 222,941,577.33 587,176,037.71
Note: “Others” mainly include structured deposits and other equity instruments, described in detail in XI of Section X.
Description of securities investments
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Gain or
loss on Cumulative Purchase Gains
Sale
Initial Source changes fair value amount or Closing
Security Security Short Opening for the Accounting
investment of in fair changes for the losses balance of
type code name book value current account
cost funds value included in current from book value
period
for the equity period disposal
period
Domestic Held-for-
Self-
and trading
overseas financial
capital
shares assets
Total - - 14,000,000.00 - 12,880,000.00 12,880,000.00 -
Description of investments in private funds
□ Applicable√ N/A
Description of derivative investments
√ Applicable□ N/A
The Company held the 16th meeting of the second Board of Directors on October 28, 2022, at
which the Proposal on Carrying out Foreign Exchange Derivatives Trading Business was deliberated
and approved, under which the Company and subsidiaries in the scope of consolidation were allowed to
engage in the business of foreign exchange derivative products for no more than USD 35.00 million (the
funds may be used on a rolling basis within such quota), and the management or relevant staff of the
Company were authorized to implement relevant specific affairs. This proposal is valid for 12 months
from the date when it is deliberated and passed by the Board of Directors of the Company. In the current
period, the Company carried out the business of foreign exchange derivative products in the amount of
USD 5.00 million. This business has become expired by the end of the period.
(V) Sale of material assets and equities
□ Applicable√ N/A
(VI) Analysis of major investees
√ Applicable□ N/A
Unit: 0’000 Yuan Currency: RMB
Company Main Registere Shareholdin Total Net Operatin Net
name business d capital g ratio assets assets g income profit
Provision
of cinema
projection
CINEAPPO services 10,000.00 67.80% 24,187.64
and sales
of
projectors
R&D and
sale of - -
Chongqing 79,752.8
househol 7,017.54 39.19% 15,573.7 37,600.18 7,921.6
Formovie 4
d display 6 8
products
R&D and
Appotronic sale of 43,254.0 35,443.2
s HK laser light 5 4
source
(VII) Structured entities controlled by the Company
□ Applicable√ N/A
VII. Other disclosures
□ Applicable√ N/A
Section IVCorporate Governance
I. General meetings of shareholders held
Reference to
resolutions Date of
Date of
Session published on the disclosure of Resolutions
meeting
designated resolutions
website
Refer to the Announcement on
the Resolutions of the Annual
General Meeting of
Annual general
Shareholders in 2022 (No.
meeting of
May 19, 2023 www.sse.com.cn May 20, 2023 2023-020) disclosed by the
shareholders in
Company at the website of the
Shanghai Stock Exchange
(www.sse.com.cn) on May 20,
Extraordinary general meeting of shareholders requested by the preferred shareholders with
restitution of voting right
□ Applicable√ N/A
Explanation about the general meetings of shareholders
√ Applicable□ N/A
During the reporting period, the Company held 1 annual general meeting. After being certified by
Beijing Zhong Lun (Shenzhen) Law Firm engaged by the Company, the convening and holding
procedures of general meetings of shareholders, the qualifications of the persons attending the meeting
and conveners, the voting procedures and results comply with the relevant provisions of the Companies
Law, the Rules for General Meetings of Shareholders and other laws, regulations and normative
documents as well as the provisions of the Articles of Association, and are legal and valid. All proposals
submitted by the Board of Directors of the Company to the general meeting have been reviewed and
passed.
II. Changes in directors, supervisors, senior officers and key technical staff
□ Applicable√ N/A
Description of changes in directors, supervisors, senior officers and key technical staff
□ Applicable√ N/A
Description of determination of key technical staff of the Company
√ Applicable□ N/A
The key technical staff of the Company were determined by taking into account the following factors:
(1) play an important role in the Company’s R&D system or hold an important position in the
Company’s R&D department;
(2) lead the R&D of multiple core technologies of the Company during the period of service;
(3) obtain several patents in the capacity as inventor or designer, and make outstanding contributions to
the core technologies of the Company;
(4) have a deep professional knowledge background in the laser display industry, broad work
qualifications or project experience.
Any candidate shall meet at least two of the above criteria at the same time, and then with the approval
by the Chairman, may be determined as a key technician of the Company.
III. Proposals for profit distribution or capitalization of the capital reserve
Profit distribution proposal or proposal for capitalization of the capital reserve during the
reporting period
Whether to implement profit distribution or
No
capitalization of the capital reserve
Number of bonus shares distributed per 10 shares -
Cash dividends distributed per 10 shares (inclusive
of tax)
Number of shares distributed out of the capital
reserve
Description of the proposal for profit distribution or capitalization of the capital reserve
IV. Share incentive plan, employee stock ownership plan or other employee incentive measures of
the Company and their effect
(I) Equity incentives already disclosed in the interim announcements about which no new
information is available
√ Applicable□ N/A
Summary Reference
On June 25, 2023, the Company held the 20th meeting of the second
Board of Directors and the 19th meeting of the second Board of Refer to the relevant
Supervisors, deliberating and approving the Proposal on Adjustments announcements disclosed by the
to Grant Prices under the Company’s Restricted Share Incentive Company at the website of the
Plan, the Proposal on Invalidating Partially Granted but Not Vested Shanghai Stock Exchange
Restricted Shares, the Proposal on Meeting Vesting Criteria for the (www.sse.com.cn) on June 27,
First Vesting Period in the Initial Grant under 2022 Restricted Share 2023 for details.
Incentive Plan, and other related proposals.
(II) Incentives that have not been disclosed in any interim announcement or about which there’s
new information available
Share incentives
□ Applicable√ N/A
Other information
□ Applicable√ N/A
Employee stock ownership plan
□ Applicable√ N/A
Other incentives
□ Applicable√ N/A
Section V Environment and Social Responsibilities
I. Environment
Whether mechanisms related to environmental
Yes
protection have been established
Investment in environmental protection funds
during the reporting period (unit: RMB 0’000)
(I) Environmental protection information of the Company and its major subsidiaries that are
identified as major polluters by the environmental protection authority
□ Applicable√ N/A
(II) Environmental protection information of any company that is not identified as a major
polluter
√ Applicable□ N/A
□ Applicable√ N/A
√ Applicable□ N/A
As a leading laser display technology enterprise in the world, the Company mainly engages in the
research, development, production and sales of laser display core devices and complete equipment and
application of semiconductor laser light source technologies to different scenarios based on the
proprietary semiconductor laser light source technologies and architecture, making it a low energy
consumption enterprise. During the reporting period, the Company had no production or operating entity
included in the list of major polluters identified by the environmental protection authority, did not
conduct its routine production and operation in the heavy pollution industry identified by relevant
national laws and regulations, and its production and operating activities had little impact on
environment.
During its production, the Company mainly emits waste gas, waste water and solid waste, which
have been properly handled in accordance with the requirements of relevant authorities and industrial
parks. For waste gas, we apply the level II standards defined in the Emission Limits of Air Pollutants
(DB44/27-2001) promulgated by Guangdong Province. The waste gas is treated by an environment
protection facility, and emitted when reaching the waste gas emission criteria. Moreover, we engage a
professional third-party inspection institution every year to monitor and assess the waste gas emitted. Of
the waste water, domestic sewage is pre-processed according to standards, and discharged through the
municipal sewage pipelines to the regional water quality purification plant for in-depth processing. The
industrial wastewater is uniformly recycled and treated by a qualified environmental protection company.
Meanwhile, the Company actively optimizes the production process and reduces sewage discharge. With
respect to solid waste, industrial solid waste is treated by a qualified environmental protection company,
while recyclable waste is collected and sorted by the Company’s cleaning staff and then recovered by
the relevant resource recovery unit.
□ Applicable√ N/A
(III) New information about the environmental protection information disclosed during the
reporting period
□ Applicable√ N/A
(IV) Relevant information conducive to protecting ecology, preventing pollution and fulfilling
environmental responsibilities
√ Applicable□ N/A
The Company achieved ISO14001 environmental management system certification in 2008, and
maintained such certification to date, and also achieved the QC080000 Hazardous Substance Process
Management (HSPM) certification in 2019. All of our products are green products and have passed
China environmental labeling product certification, RoHS, REACH and other certifications.
We actively implemented internal measures to reduce costs and improve efficiency, and achieve
energy conservation and environment protection by means of technical innovation. For example, our
ALPD® 5.0 super panchromatic laser technology can achieve the energy efficiency of up to 20 lm/W and
improve the efficiency by about 100% compared with other light sources, hence significantly reducing
energy consumption while maintaining the high brightness. To promote green office among employees,
we replaced paper approval with online approval, which effectively reduced the paper consumption at
the office. Moreover, we encouraged employees to shut down devices when leaving their posts, turn off
the light for one hour at the lunch break, and take the employee bus, hence improving employees’
awareness of energy conservation and environment protection. We actively implemented rules of energy
conservation and emission reduction and daily management measures, and effectively carried out
measures to save water and power.
(V) Measures taken to reduce carbon emissions during the reporting period and their effect
Whether carbon reduction measures are
Yes
in place
Reduction of CO2 equivalent emissions
(in tons)
To develop and produce new products that facilitate carbon
Types of carbon reduction measures reduction: The xenon lamp light sources used for
(e.g., using clean energy to generate projection at conventional cinemas have the characteristics
electricity, using carbon reduction of high power consumption and fast brightness attenuation.
technologies in the production process, Our ALPD® laser light source, thanks to its obvious
developing and producing new products advantages in energy and power conservation, can reduce
that contribute to carbon reduction, etc.) power consumption by about 1.8 degree for each hour
compared with xenon lamps.
Specific description
√ Applicable□ N/A
To verify the use performance of the ALPD® laser light source, a cinema in Hebei Province
selected two cinema halls with almost identical conditions, and retained the xenon lamp light source in
one hall while upgrading the other hall with the ALPD® laser light source. After operation for two
months, given the basically same film programming, the xenon lamp hall consumed a total of 1,076
degrees of electricity, making the hourly electricity consumption of 2.91 degrees; while the ALPD® laser
hall consumed 403 degrees of electricity, making the hourly electricity consumption of 1.1 degrees,
which reduced the hourly electricity consumption by 1.81 degrees compared with the xenon lamp hall.
As of the end of the reporting period, we have installed over 28,600 sets of our ALPD® laser light
source projection solution throughout China, achieving the total light source operation of about 268
million hours. On the basis of the average of about 1.8 degrees of electricity saved per hour, this saved a
total of about 482 million degrees of electricity, equivalent to reducing the CO2 emission by 0.4142
million tons.
II. Information on consolidation and expansion of the results of poverty alleviation, rural
revitalization and other specific work
□ Applicable√ N/A
Section VI Significant Matters
I. Fulfillment of covenants
(I) Covenants made by the actual controller, shareholders, affiliates and acquirer of the Company, the Company itself and other related parties during
the reporting period or the outstanding covenants made by them in the prior periods
√ Applicable□ N/A
Whether Whether
Reason for Action
there’s a the
failure to plan if
Validity time limit covenant
Background Covenant fulfill the failing to
Covenantor Covenant content period of for the has been
of covenant type covenant fulfill the
covenant fulfillment strictly
on time (if covenant
of the fulfilled
applicable) on time
covenant on time
Covenant by the controlling
shareholder regarding
after
restriction on the sale of
Covenant Restriction completion of
shares held by him, voluntary
relating to on the sale Refer to IPO Prospectus the IPO and Yes Yes N/A N/A
lock-up of such shares,
IPO of shares the extended
extension of lock-up period,
period stated
intention to hold and dispose
below
of shares and other issues
after
Covenant by the actual completion of
controller regarding the IPO and
restriction on the sale of the extended
Covenant Restriction
shares held by him, voluntary period stated
relating to on the sale Refer to IPO Prospectus Yes Yes N/A N/A
lock-up of such shares, below, and 6
IPO of shares
extension of lock-up period, months after
intention to hold and dispose termination of
of shares and other issues employment
with the
Company
Covenant by the concert
parties of the actual controller 36 months
regarding restriction on the after
Covenant Restriction sale of shares held by them, completion of
relating to on the sale voluntary lock-up of such Refer to IPO Prospectus the IPO and Yes Yes N/A N/A
IPO of shares shares, extension of lock-up the extended
period, intention to hold and period stated
dispose of shares and other below
issues
after
Covenant by HU Fei, as a
completion of
member of key technical
the IPO and
staff, regarding restriction on
the extended
Covenant Restriction the sale of shares held by
period stated
relating to on the sale him, voluntary lock-up of Refer to IPO Prospectus Yes Yes N/A N/A
below, and 6
IPO of shares such shares, extension of
months after
lock-up period, intention to
termination of
hold and dispose of shares
employment
and other issues
with the
Company
Covenant
Issuer’s covenant regarding
relating to Others Refer to IPO Prospectus Permanent No Yes N/A N/A
measures against fraud in IPO
IPO
Controlling shareholder,
Covenant actual controller and their
relating to Others concert parties’ covenant Refer to IPO Prospectus Permanent No Yes N/A N/A
IPO regarding measures against
fraud in IPO
Directors, supervisors and
Covenant
senior officers’ covenant
relating to Others Refer to IPO Prospectus Permanent No Yes N/A N/A
regarding measures against
IPO
fraud in IPO
Covenant Issuer’s covenant regarding
Others Refer to IPO Prospectus Permanent No Yes N/A N/A
relating to remedial measures for diluted
IPO earnings in the current period
Controlling shareholder,
actual controller and their
Covenant
concert parties’ covenant
relating to Others Refer to IPO Prospectus Permanent No Yes N/A N/A
regarding remedial measures
IPO
for diluted earnings in the
current period
Directors and senior officers’
Covenant
covenant regarding remedial
relating to Others Refer to IPO Prospectus Permanent No Yes N/A N/A
measures for diluted earnings
IPO
in the current period
Covenant
Issuer’s covenant regarding
relating to Others Refer to IPO Prospectus Permanent No Yes N/A N/A
profit distribution policy
IPO
Issuer’s covenant regarding
Covenant restraint measures and
relating to Others liability for compensation in Refer to IPO Prospectus Permanent No Yes N/A N/A
IPO the event of failure to fulfill
its covenants
Controlling shareholder,
actual controller and their
Covenant concert parties’ covenant
relating to Others regarding restraint measures Refer to IPO Prospectus Permanent No Yes N/A N/A
IPO and liability for compensation
in the event of failure to
fulfill their covenants
Directors, supervisors and
senior officers’ covenant
Covenant
regarding restraint measures
relating to Others Refer to IPO Prospectus Term of office No Yes N/A N/A
and liability for compensation
IPO
in the event of failure to
fulfill their covenants
Covenant Resolve Controlling shareholder’s
relating to horizontal covenant on avoiding Refer to IPO Prospectus Permanent No Yes N/A N/A
IPO competition horizontal competition and
issues regulating and reducing
related-party transactions
Resolve Actual controller’s covenant
Covenant related- on avoiding horizontal
relating to party competition and regulating Refer to IPO Prospectus Permanent No Yes N/A N/A
IPO transaction and reducing related-party
issues transactions
For details, refer to the 2021
Restricted Share Incentive
Covenant by the grantee of
Plan (Draft), the 2021 Second
share incentives regarding
Others Restricted Share Incentive Permanent No Yes N/A N/A
information disclosure
Plan (Draft), and the 2022
documents
Covenant Restricted Share Incentive
related to Plan (Draft) of the Company
share For details, refer to the 2021
incentives Restricted Share Incentive
Company’s covenant on Plan (Draft), the 2021 Second
Others refraining from providing Restricted Share Incentive Permanent No Yes N/A N/A
financial assistance Plan (Draft), and the 2022
Restricted Share Incentive
Plan (Draft) of the Company
II. Non-operating occupation of funds by the controlling shareholder and other affiliates during the reporting period
□ Applicable√ N/A
III. Guarantees in violation of applicable regulations
□ Applicable√ N/A
IV. Audit of semiannual report
□ Applicable√ N/A
V. Changes in matters involved by non-standard audit opinions in the previous annual report and treatment thereof
□ Applicable√ N/A
VI. Matters relating to bankruptcy and reorganization
□ Applicable√ N/A
VII. Material litigations and arbitrations
√ The Company was involved in material litigations or arbitrations during the reporting period
□ The Company was not involved in material litigations or arbitrations during the reporting period
(I) Litigations and arbitrations already disclosed in interim announcements about which no new information is available
√ Applicable□ N/A
Summary and type of case Reference
I. (2019) Yue 03 Min Chu No. 2943, 2944, 2946, 2948 and 2951
In July 2019, the Company initiated a patent infringement litigation on the ground that
Delta Electronics (Shanghai) Co., Ltd., Delta Video Display System (Wujiang) Limited, Refer to the Announcement of Litigation Involving Appotronics (No.
and Shenzhen Super Network Technology Co., Ltd. infringed the patent for invention 2019-006) disclosed by the Company at the website of the Shanghai
stop the acts of infringing the Company’s patent rights and compensate the plaintiff for its
economic losses, etc. in the amount of RMB 28.00 million.
II. (2021) Yue 73 Zhi Min Chu No. 1860
Refer to the Announcement on Malicious Litigation Initiated by
In December 2021, Delta maliciously initiated an intellectual property litigation against
Delta Electronics (No. 2021-097) disclosed by the Company at the
the Company. Since such act infringed the rights and interests of the Company, the
website of the Shanghai Stock Exchange (www.sse.com.cn) on
Company sued Delta to Guangzhou Intellectual Property Court on December 17, 2021 on
December 21, 2021 for details.
the ground of such malicious act, involving the amount of RMB 10.00 million.
III. 01-22-0001-2735
In March 2022, GDC Cayman and GDC BVI initiated the arbitration against the
Company and its wholly-owned subsidiary Appotronics HK in respect of the dispute over
Refer to the Announcement on Arbitration with GDC Cayman and
the implementation of the Settlement Agreement, involving the total amount of USD
GDC BVI (No. 2022-028) disclosed by the Company at the website
of the Shanghai Stock Exchange (www.sse.com.cn) on April 2, 2022
BVI, Mr. ZHANG Wanneng and his management team on the ground that GDC Cayman,
for details.
GDC BVI, Mr. ZHANG Wanneng and his management team violated the provisions of
the Shareholders’ Agreement and Settlement Agreement, involving the total amount of no
less than USD 40.00 million.
(II) Litigations and arbitrations that have not been disclosed in interim announcements or about which there’s new information available
√ Applicable□ N/A
Unit: 0’000 Yuan Currency: RMB
During the reporting period:
Party Type of Amount Whether Result Enforcement of
Plaintiff/claimant Defendant/respondent Background Status
jointly and litigation/arbitration claimed any and judgment/award
severally provision effect
liable is
recognized
and the
amount
Case of dispute over
infringement on
patents for
Under trial
invention (2019)
of the
Jing 73 Min Chu
second
No. 1275, the
instance.
Plaintiff alleges that
Judgment
Fengmi it is the owner of
of first
Appotronics (Beijing) Infringement on the patent for Trial not
Delta Electronics, Inc. 1,601.00 No instance: -
Corporation Limited Technology patent for invention invention completed
All the
Co., Ltd. ZL201610387831.8
claims of
and the Defendant
Delta
infringed such
Electronics
patent for invention
should be
of the Plaintiff and
dismissed.
caused economic
losses to the
Plaintiff.
Case of dispute over
infringement on
patents for
Chengdu invention (2021)
The court
Jinxi Chuan 01 Zhi Min The
approved
Appotronics Guangxian Infringement on Chu No. 685, the Plaintiff
Delta Electronics, Inc. 1,601.00 No to -
Corporation Limited Information patent for invention Plaintiff alleges that withdrew
withdraw
Technology the Defendant its case
the case
Co., Ltd. infringed such
patent for invention
ZL201610387831.8
of the Plaintiff and
caused economic
losses to the
Plaintiff.
Case of dispute over
infringement on
patents for
invention (2021)
Chuan 01 Zhi Min
Chengdu
Chu No. 686, the The court
Jinxi The
Plaintiff alleges that approved
Appotronics Guangxian Infringement on Plaintiff
Delta Electronics, Inc. the Defendant 1,601.00 No to -
Corporation Limited Information patent for invention withdrew
infringed such withdraw
Technology its case
patent for invention the case
Co., Ltd.
ZL201110041436.1
of the Plaintiff and
caused economic
losses to the
Plaintiff.
Case of dispute over
infringement on
patents for
invention (2023) Hu
Shanghai No.: (2021) Hu 73 The court
The
Haichi Zhi Min Chu No. approved
Appotronics Infringement on Plaintiff
Delta Electronics, Inc. Digital 1070), the Plaintiff 1,601.00 No to -
Corporation Limited patent for invention withdrew
Technology alleges that the withdraw
its case
Co., Ltd. Defendant infringed the case
such patent for
invention
ZL201110041436.1
of the Plaintiff and
caused economic
losses to the
Plaintiff.
Delta
Video
Display
System
(Wujiang) Cases of dispute
Limited, over infringement
WANG on patents for
Yuhai, invention (2020)
Hunan Yue 73 Zhi Min
Dehao Chu No. 1335-
Cultural 1338, 1340, 1341,
and 1361, the Plaintiff
Creative accused the
Co., Ltd., Defendants, Delta
Digital Electronics The court
Appotronics Corporation Delta Electronics Protection Infringement on (Shanghai) Co., Case has made
Limited (Shanghai) Co., Ltd. (Beijing) patent for invention Ltd., Delta Video closed the
Electronics Display System decision
Technology (Wujiang) Limited,
Co., Ltd., and other entities,
Guangdong of infringing the
Jianye patent for invention
Display No.
Information ZL200880107739.5
Technology of the Plaintiff and
Co., Ltd., caused economic
and losses to the
Guangzhou Plaintiff.
Jianye
Network
Technology
Co., Ltd.
Appotronics Corporation Delta Electronics Delta Infringement on Cases of dispute Case The court
Limited (Shanghai) Co., Ltd. Video patent for invention over infringement closed has made
Display on patents for the
System invention (2020) decision
(Wujiang) Yue 73 Zhi Min
Limited, Chu No. 1339,
WANG 1353, 1355, 1357-
Yuhai, 1360, the Plaintiff
Hunan accused the
Dehao Defendants, Delta
Cultural Electronics
and (Shanghai) Co.,
Creative Ltd., Delta Video
Co., Ltd., Display System
Digital (Wujiang) Limited,
Protection and other entities,
(Beijing) of infringing the
Electronics patent for invention
Technology No.
Co., Ltd., ZL200810065225.X
Guangdong of the Plaintiff and
Jianye caused economic
Display losses to the
Information Plaintiff.
Technology
Co., Ltd.,
and
Guangzhou
Jianye
Network
Technology
Co., Ltd.
(III) Other information
√ Applicable□ N/A
examination at China National Intellectual Property Administration.
Intellectual Property Administration. The patent involved is “phosphor layer, device and corresponding light source and projection system, and corresponding
production method” (patent No.: ZL201510420950.4).
VIII. Penalties imposed on the listed company and its directors, supervisors, senior officers,
controlling shareholder, actual controller for suspected violation of laws and regulations
and rectification of the relevant violations
□ Applicable√ N/A
IX. Credit standing of the Company and its controlling shareholder and actual controller during
the reporting period
□ Applicable√ N/A
X. Material related-party transactions
(I) Related-party transactions in connection with day-to-day operation
available
√ Applicable□ N/A
Summary Reference
The Company expects to engage in daily related-party
Refer to the Announcement on the
transactions with China Film Equipment Co., Ltd. and its
Prediction of Daily Related-party
affiliates, Xiaomi Communications Co., Ltd. and its
Transactions in 2023 (No. 2023-010)
affiliates, Beijing DonView Education Technology Co.,
disclosed by the Company at the
Ltd. and its affiliates, CINIONIC Limited and its affiliates,
website of the Shanghai Stock
GDC Technology Limited and its affiliates, Shenzhen YLX
Exchange (www.sse.com.cn) on April
Technology Development Co., Ltd. for the amount of RMB
information available
□ Applicable√ N/A
□ Applicable√ N/A
(II) Related-party transactions involving acquisition or sale of assets or equities
available
□ Applicable√ N/A
information available
□ Applicable√ N/A
□ Applicable√ N/A
□ Applicable√ N/A
(III) Material related-party transactions involving joint external investments
available
√ Applicable□ N/A
Summary Reference
Refer to the Announcement on Stopping
On April 26, 2023, the Company held the 19th meeting
Acquiring 51% Equity Interests in WeCast
of the second Board of Directors and the 18th meeting of
Technology Corp. by the Subsidiary
the second Board of Supervisors, at which the Proposal Formovie (No. 2023-014) disclosed by the
on Stopping Acquiring 51% Equity Interests in WeCast Company at the website of the Shanghai
Technology Corp. by the Subsidiary Formovie was Stock Exchange (www.sse.com.cn) on April
reviewed and approved, under which it was approved 28, 2023 for details.
that Formovie (Chongqing) Innovative Technology Co.,
Ltd., a subsidiary of the Company, shall stop acquiring
the 51% equity interests in WeCast.
information available
□ Applicable√ N/A
□ Applicable√ N/A
(IV) Accounts receivable from and payable to related parties
available
□ Applicable√ N/A
information available
□ Applicable√ N/A
□ Applicable√ N/A
(V) Financial business between the Company and its affiliated financial companies, or between
the Company’s controlled financial companies and affiliates
□ Applicable√ N/A
(VI) Other material related-party transactions
□ Applicable√ N/A
(VII) Others
□ Applicable√ N/A
XI. Material contracts and performance thereof
(I) Trusteeship, contracting and lease
√ Applicable□ N/A
(1) Trusteeship
□ Applicable√ N/A
(2) Contracting
□ Applicable√ N/A
(3) Lease
√ Applicable□ N/A
Unit: 0’000 Yuan Currency: RMB
Impact of
Basis for Related-party Related-
Name of Name of Leased Amount of Lease lease income
Start date End date determining transaction or party
lessor lessee assets leased assets income on the
lease income not relation
Company
Office,
Shenzhen
Appotronics R&D,
Meisheng
Corporation factory, 1469.40 2022.12.01 2024.11.30 - - - No None
Industry
Limited employee
Co., Ltd.
dormitory
Description of lease
None
(II) Material guarantees that have been performed or have not yet been fully performed during the report period
√ Applicable□ N/A
Unit: 0’000 Yuan Currency: RMB
External guarantees provided by the Company (excluding those provided for the subsidiaries)
Total amount of guarantees provided during the reporting period (excluding those provided for 0
the subsidiaries)
Balance of guarantees as of the end of the reporting period (A) (excluding those provided for the 0
subsidiaries)
Guarantees provided by the Company or its subsidiaries for the subsidiaries of the Company
Whether
Whether
Relationsh the Amount
Relationsh the Whethe
ip between Commencem obligatio of the
ip between Inceptio obligatio r there’s
the Guarante ent date of Expiry Type of n overdue
Guaranto the obligor n date of n a
guarantor Obligor ed guarantee date of guarant guarante obligatio
r and the guarante guarante counter
and the amount (signing date guarantee ee ed has n
listed e ed has guarant
listed of agreement) been guarante
company become ee
company discharge ed
overdue
d
Three years
CINEAPP after the
Appotroni
O Laser due date for
cs Joint and
Headquarte Cinema Controlled 2021/12/ the
Corporati 50,000.00 2021/12/29 several No No - No
rs Technolog subsidiary 29 obligations
on liability
y (Beijing) under the
Limited
Co., Ltd. master
contract.
CINEAPP
Appotroni
O Laser
cs Joint and
Headquarte Cinema Controlled 2021/1/2
Corporati 23,000.00 2021/1/26 2026/2/7 several No No - No
rs Technolog subsidiary 6
on liability
y (Beijing)
Limited
Co., Ltd.
Appotroni Headquarte CINEAPP Controlled 2021/12/ Joint and
cs rs O Laser subsidiary 27 several
Corporati Cinema liability
on Technolog
Limited y (Beijing)
Co., Ltd.
CINEAPP
Appotroni
O Laser
cs Joint and
Headquarte Cinema Controlled 2022/12/
Corporati 10,000.00 2022/12/30 2027/2/28 several No No - No
rs Technolog subsidiary 30
on liability
y (Beijing)
Limited
Co., Ltd.
Formovie
Appotroni
(Chongqin
cs Joint and
Headquarte g) Controlled 2021/9/1
Corporati 20,000.00 2021/9/10 2028/4/25 several No No - No
rs Innovative subsidiary 0
on liability
Technolog
Limited
y Co., Ltd.
Formovie
Appotroni
(Chongqin
cs Joint and
Headquarte g) Controlled 2021/12/
Corporati 9,000.00 2021/12/6 2026/12/30 several No No - No
rs Innovative subsidiary 6
on liability
Technolog
Limited
y Co., Ltd.
Three years
Formovie after the
Appotroni
(Chongqin due date for
cs Joint and
Headquarte g) Controlled 2022/9/1 the
Corporati 30,000.00 2022/9/16 several No No - No
rs Innovative subsidiary 6 obligations
on liability
Technolog under the
Limited
y Co., Ltd. master
contract.
Appotroni Formovie Three years
cs (Chongqin after the Joint and
Headquarte Controlled 2022/12/
Corporati g) 12,000.00 2022/12/22 due date several No No - No
rs subsidiary 22
on Innovative (without liability
Limited Technolog accelerated
y Co., Ltd. maturity) of
the latest
financing
due and
payable
among all
the
financings
drawn and
used during
the period
of
occurrence
of
guaranteed
debts under
the master
agreement
or/and
inter-bank
borrowing.
The
guarantee
Formovie period is
Appotroni
(Chongqin three years
cs Joint and
Headquarte g) Controlled 2021/12/ from the
Corporati 5,000.00 2021/12/29 several No No - No
rs Innovative subsidiary 29 date of
on liability
Technolog termination
Limited
y Co., Ltd. of claims
determinati
on period.
Total amount of guarantees provided for the subsidiaries during the reporting period 20,908.07
Balance of guarantees provided for the subsidiaries as of the end of the reporting period (B) 51,793.89
Total amount of guarantees provided by the Company (including those provided for the subsidiaries)
Total amount guaranteed (A+B) 51,793.89
Proportion of total amount guaranteed to the net assets of the Company (%) 19.00
Including:
Total amount of guarantees provided for the shareholders, actual controller and their affiliates (C) 0
Total amount of debt guarantees directly or indirectly provided for the obligors whose equity-
debt ratio exceeds 70% (D)
Total amount guaranteed in excess of 50% of the net assets of the Company (E) 0
Total amount guaranteed (C+D+E) 36,599.64
Explanation about outstanding guarantees for which the Company may assume joint and several
N/A
liability
Explanation about guarantees N/A
(III) Other material contracts
□ Applicable√ N/A
XII. Use of offering proceeds
√ Applicable□ N/A
(I) Overall use of offering proceeds
√ Applicable□ N/A
Unit: Yuan
Cumulative
Cumulative
investment
Net offering total offering Ratio of the
Date of Total offering progress as
Source of proceeds after Total offering proceeds used Amount amount
receiving Total offering proceeds of the end of
offering deduction of proceeds as of the end invested in invested in
offering proceeds committed after the
proceeds offering committed of the this year (4) this year (%)
proceeds adjustment (1) reporting
expenses reporting (5)=(4)/(1)
period (%)
period (2)
(3)=(2)/(1)
Initial public July 16,
offering 2019
(II) Breakdown of investment projects
√ Applicable□ N/A
Unit: Yuan
Total Cumul Cumul Date
Whet Whet
invest Total ative ative for the
her her Bene
ment invest total invest project
the benef fits Material
Whe from ment offerin ment to
Wheth Date inves its or changes
ther the from g progre reach Specific
er Source of tmen are R&D in the
over offeri the procee ss as of the reason for
change of receivi Com t achie resul project
- ng offerin ds the workin failing to
Natu of offerin ng plete prog ved ts feasibilit Balance amount and
Project raise proce g used end of g achieve the
re invest g offerin d or ress duri achie y; if any, reasons thereof
d eds procee as of the conditi plan of
ment is procee g not meet ng ved describe
fund com ds the reporti on for investment
involve ds procee s the the by the
s are mitte after end of ng its progress
d ds prog repo the specific
used d for adjust the period intend
ress rting proje reasons
the ment reporti (%) ed use
plan perio ct
proje (1) ng (3) = [Note
ned d
ct period (2)/(1) 1]
(2)
As of December 31,
R&D
and industrialization of
and
new generation of laser
industrial Prod
display products” has
ization of uctio Initial
July 313,0 313,00 279,31 Decem N/A been completed, which
new n and public
N/A 16, No 00,00 0,000.0 1,086.9 89.24 ber Yes Yes N/A N/A [Note No used the raised funds of
generatio const offerin
n of laser ructi g
the remaining raised
display on
funds of RMB 51.6167
products
million in total were
[Note 5]
used to supplement the
working capital.
The
construction
of the head
office
building
slowed down
due to the
complex
R&D
geological
center at Initial
July 284,0 284,00 151,97 Decem conditions on
the head public
R&D N/A 16, No 00,00 0,000.0 2,898.4 53.51 ber No No the site. This N/A N/A No N/A
office of offerin
Appotro g
be fully
nics
implemented
only after the
construction
of the head
office
building is
completed.
As a result,
the project
implementati
on is
postponed.
Since the
main body of
the head
office
building of
Informati the Company
Oper
on Initial is still under
ation July 70,00 Decem
system public 70,000, 38,556, construction,
mana N/A 16, No 0,000. 55.08 ber No No N/A N/A No N/A
upgrade offerin 000.00 386.63 the
geme 2019 00 2023
and g prerequisites
nt
building for
implementin
g this project
have not
been
satisfied.
Supp
leme
nting
the
Supplem work
Initial
entary ing July 333,0 333,00 335,39
public
working capit N/A 16, No 00,00 0,000.0 5,037.6 100.72 N/A Yes Yes N/A N/A N/A No N/A
offerin
capital al 2019 0.00 0 2
g
[Note 2] and
repay
ment
of
loans
Share Initial
July 20,00 Septem
repurcha Other public 20,000, 19,377,
N/A 16, Yes 0,000. 96.89 ber Yes Yes N/A N/A N/A No N/A
se [Note s offerin 000.00 297.59
Other Initial
July 42,47
excess Other public 42,470,
N/A 16, N/A 0,797. - - N/A No Yes N/A N/A N/A No N/A
offering s offerin 797.73
proceeds g
[Note 1] On March 18, 2022, the Company held the 9th meeting of the second Board of Directors and the 8th meeting of the second Board of Supervisors, approving
the Proposal on Postponing Some Investment Projects through deliberation, and agreeing the Company to adjust the time for some investment projects to reach the
working condition for its intended use.
[Note 2] During the period of implementation of the Company’s investment projects, the total wealth management returns of RMB 2.3950 million were realized
from the special account of supplementary working capital, which have been put into use in the project (supplementary working capital). The special account for
supplementary working capital (Huaxia Bank Co., Ltd. Shenzhen Houhai Branch, account number: 10869000000251463) has been deregistered on July 30, 2020.
The interest RMB 1,418.11 incurred after completion of this project has been paid to the basic account of the Company to be used as supplementary working capital.
[Note 3] The Company held the 9th meeting of the second Board of Directors and the 1st extraordinary general meeting of shareholders in 2022 respectively on
March 18, 2022 and March 29, 2022, approving the Proposal on Repurchase of Shares of the Company through Call Auction through deliberation, and agreeing the
Company to use the excess offering proceeds to repurchase some RMB-denominated ordinary shares (A shares) issued by it through call auction via the trading
system of the Shanghai Stock Exchange.
[Note 4] As of December 31, 2022, the project “R&D and industrialization of new generation of laser display products” has been completed, for which the
incremental sales revenue of RMB 50.5068 million before and after the investment in this project was taken as the indicator of the benefits realized from the project.
[Note 5] On April 26, 2023, the Company held the 19th meeting of the second Board of Directors and the 18th meeting of the second Board of Supervisors
respectively, which deliberated and approved the Proposal on the Completion of Some of the Company’s Fundraising Projects and Permanent Replenishment of
Working Capital with the Surplus Raised Funds, and agreed that the Company would close the fundraising project “R&D and industrialization of new generation of
laser display products”, and a total of RMB 51.6167 million saved (as of December 31, 2022) shall be used for permanent replenishment of the working capital. As
at the date of remittance, the actual balance in the special account was RMB 52.0022 million (including the interest income and wealth management income, net of
handling fees). This special account (Hua Xia Bank Co., Ltd. Shenzhen Houhai Branch, account No.: 10869000000305964) has been deregistered on May 17, 2023,
and the funds have been transferred to the general account of the Company.
(III) Change in investment projects during the reporting period
□ Applicable√ N/A
(IV) Other information about the use of offering proceeds during the reporting period
□ Applicable√ N/A
□ Applicable√ N/A
√ Applicable□ N/A
The Proposal on Cash Management of Temporarily Idle Offering Proceeds was approved through
deliberation at the 14th meeting of the second Board of Directors and the 13th meeting of the second
Board of Supervisors held by the Company on June 29, 2022. It was approved that, without affecting the
normal implementation of the investment plan for offering proceeds, a maximum of RMB 469 million
temporarily idle offering proceeds may be put under cash management to purchase investment products
featuring high security, good liquidity, and guarantee of the principal (including but not limited to
structural deposits, agreement deposits, notice deposits, term deposits, large-amount deposit note, and
return notes), where the total amount for purchasing return notes shall be no more than RMB 100 million
for no more than 12 months, which shall be effective within 12 months from the review and approval by
the Board of Directors and Board of Supervisors.
The Proposal on Cash Management of Temporarily Idle Offering Proceeds was approved through
deliberation at the 20th meeting of the second Board of Directors and the 19th meeting of the second
Board of Supervisors held by the Company on June 25, 2023. It was approved that, without affecting the
normal implementation of the investment plan for offering proceeds, a maximum of RMB 249.00
million (inclusive) temporarily idle offering proceeds may be put under cash management to purchase
investment products featuring high security, good liquidity, and guarantee of the principal (including but
not limited to structural deposits, notice deposits, term deposits, large-amount deposit note, and return
notes), where the total amount for purchasing return notes shall be no more than RMB 100 million
(inclusive), which shall be effective within 12 months from the review and approval.
□ Applicable√ N/A
√ Applicable□ N/A
Projects through deliberation, and agreeing the Company to adjust the time for some investment projects
to reach the working condition for its intended use. Refer to the Announcement on Postponing Some
Investment Projects (No. 2022-019) disclosed by the Company at the website of the Shanghai Stock
Exchange (www.sse.com.cn) on March 21, 2022.
general meeting of shareholders in 2022 respectively on March 18, 2022 and March 29, 2022, approving
the Proposal on Repurchase of Shares of the Company through Call Auction through deliberation, and
agreeing the Company to use the excess offering proceeds to repurchase some RMB-denominated
ordinary shares (A shares) issued by it through call auction via the trading system of the Shanghai Stock
Exchange, with the repurchase funds totaling not less than RMB 10 million (inclusive) but not more than
RMB 20 million (inclusive), the repurchase price not exceeding RMB 26.89 per share (inclusive, namely
the price after adjustments to equity distribution in 2021) and the repurchase period being six months
from the date on which this repurchase plan is approved by the general meeting of shareholders.
As of December 31, 2022, the Company repurchased 900,000 shares in the aggregate through call
auction, representing 0.1969% of the Company’s total share capital, and paid RMB 19,377,297.59
(including stamp duty, commissions and other transaction fees). The repurchase of shares has been
completed.
second Board of Supervisors on June 29, 2022, approving the Proposal on Adjusting Internal Investment
Structure of Some Investment Projects through deliberation, and agreeing the Company to adjust the
internal investment structure of the investment project “R&D and industrialization of new generation of
laser display products”, and to decrease the “equipment purchase expenses” by RMB 53.802 million and
increase the “R&D expenditures” by RMB 53.802 million.
second Board of Supervisors and the annual general meeting for 2022 on April 26, 2023 and May 19,
Investment Projects through deliberation, and agreeing the Company to adjust the internal investment
structure of the investment project “R&D center at the head office of Appotronics”, and to decrease the
“equipment purchase expenses” by RMB 65.0000 million and increase the “R&D expenditures” by
RMB 65.0000 million.
XIII. Other significant matters
□ Applicable√ N/A
Section VII Changes in Shares and Shareholders
I. Changes in shares
(I) Statement of changes in shares
During the reporting period, there is no change in total ordinary shares and share capital structure of the
Company.
□ Applicable√ N/A
financial indicators for the duration after the reporting period to the disclosure date of the
semiannual report
√ Applicable □ N/A
On July 5, 2023, the Company disclosed the Announcement on the Vesting Result for the First
Vesting Period in the Initial Grant of the Restricted Share Incentive Plan 2022 and Listing of Shares
(No. 2023-029). The Company registered a total of 3,299,000 newly vested shares for the first vesting
period in the initial grant of the restricted share incentive plan 2022. These shares became available for
trading on July 7, 2023, increasing the Company’s total shares from 457,107,538 shares to 460,406,538
shares.
From the end of the reporting period to the disclosure date of this semiannual report, changes in the
Company’s shares increased the diluted earnings per shares and net assets per share attributable to
ordinary shareholders of the Company.
regulatory authority
□ Applicable√ N/A
(II) Changes in non-tradable shares
□ Applicable√ N/A
II. Shareholders
(I) Total number of shareholders:
Total number of ordinary shareholders as of the end of the
reporting period (accounts)
Total number of shareholders of preferred shares whose
voting right has been restituted as of the end of the reporting 0
period (accounts)
Total number of shareholders holding shares with special
voting rights as of the end of the reporting period (accounts)
Number of holders of depository receipts
□ Applicable√ N/A
(II) Shares held by top 10 shareholders and top 10 holders of tradable shares as of the end of the
reporting period
Shares held by top 10 shareholders through both the general securities account and the customer
credit transaction guarantee securities account of a securities company
□ Applicable√ N/A
Unit: Share
Shares held by top 10 shareholders
Number of Shares
non- pledged,
tradable marked, or
Balance
Numb shares frozen
Change of shares
er of held,
Sharehold during held as
non- including Sharehold
er the of the Percenta
tradab the shares er
(Full reporti end of ge (%) Shar
le lent out nature
name) ng the e Quantit
shares under the
period reportin statu y
held refinancin
g period s
g
arrangeme
nt
Shenzhen Domestic
Appotroni non-state-
cs 0 17.45 0 0 0 owned
Holdings corporatio
Limited n
Shenzhen
Yuanshi
Domestic
Laser
non-state-
Industrial 24,139,5 Non
Investment 00 e
corporatio
Consulting
n
Partnershi
p (LP)
Nantong
Strait Domestic
Appotroni non-state-
cs 0 4.98 0 0 0 owned
Investment corporatio
Partnershi n
p (LP)
Shenzhen
Domestic
Appotroni
non-state-
cs Daye 20,430,2 Non
Investment 50 e
corporatio
Partnershi
n
p (LP)
Shenzhen
Domestic
Appotroni
non-state-
cs Hongye 15,662,3 Non
Investment 74 e
corporatio
Partnershi
n
p (LP)
Shenzhen
Domestic
Jinleijing
non-state-
Investment 12,353,1 Non
Limited 06 e
corporatio
Partnershi
n
p (LP)
Shenzhen
Appotroni Domestic
cs non-state-
Chengye 0 2.27 0 0 0 owned
Consulting corporatio
Partnershi n
p (LP)
Bank of
China Co.,
Ltd. -
Stable
Income - 9,710,54 Non
Bond 222,857 4 e
Securities
Investment
Fund of E
Fund
Shenzhen
Guochuan
g Chenggu
Capital
Manageme Domestic
nt Co., non-state-
+428,60 8,114,36 Non
Ltd. - 1.78 0 0 0 owned
Shenzhen corporatio
Chengguh n
ui Equity
Investment
Partnershi
p (LP)
Industrial
Bank Co.,
Ltd. -
Tianhong
+497,07 7,540,68 Non
Yongli 1.65 0 0 0 Others
Bond
Securities
Investment
Fund
Shares held by top 10 holders of tradable shares
Number of Type and number of shares
Shareholder tradable shares
Category Quantity
held
Shenzhen Appotronics Holdings RMB-denominated
Limited ordinary share
Shenzhen Yuanshi Laser Industrial
RMB-denominated
Investment Consulting Partnership 24,139,500 24,139,500
ordinary share
(LP)
Nantong Strait Appotronics RMB-denominated
Investment Partnership (LP) ordinary share
Shenzhen Appotronics Daye RMB-denominated
Investment Partnership (LP) ordinary share
Shenzhen Appotronics Hongye RMB-denominated
Investment Partnership (LP) ordinary share
Shenzhen Jinleijing Investment RMB-denominated
Limited Partnership (LP) ordinary share
Shenzhen Appotronics Chengye RMB-denominated
Consulting Partnership (LP) ordinary share
Bank of China Co., Ltd. - Stable
RMB-denominated
Income Bond Securities Investment 9,710,544 9,710,544
ordinary share
Fund of E Fund
Shenzhen Guochuang Chenggu
Capital Management Co., Ltd. - RMB-denominated
Shenzhen Chengguhui Equity ordinary share
Investment Partnership (LP)
Industrial Bank Co., Ltd. - Tianhong
RMB-denominated
Yongli Bond Securities Investment 7,540,688 7,540,688
ordinary share
Fund
Description of special repurchase
shareholders among top 10 N/A
shareholders
Description of entrusting voting
right, entrusted voting right and
N/A
waiver of voting right of the
shareholders above
shareholders of the Company constituted persons acting in
concert: Shenzhen Appotronics Holdings Limited, Shenzhen
Yuanshi Laser Industrial Investment Consulting Partnership
(LP), Shenzhen Appotronics Daye Investment Partnership
(LP), Shenzhen Appotronics Hongye Investment Partnership
Affiliates or concert parties among
(LP), Shenzhen Jinleijing Investment Limited Partnership (LP),
the shareholders stated above
and Shenzhen Appotronics Chengye Consulting Partnership
(LP);
affiliates or concert parties as defined in the Administrative
Measures for the Acquisition of the Listed Companies among
other shareholders.
Holders of preferred shares whose
voting rights have been restituted
N/A
and the number of shares held by
them
Top 10 holders of non-tradable shares and lock-up period
□ Applicable√ N/A
Statement of top 10 holders of domestic depository receipts as of the end of the reporting period
□ Applicable√ N/A
Number of non-tradable depository receipts held by top 10 holders and lock-up period
□ Applicable√ N/A
(III) Statement of top 10 shareholders by number of votes held as of the end of the reporting
period
□ Applicable√ N/A
(IV) Strategic investors or general corporations that become top 10 shareholders as a result of
allotment of new shares/depository receipts
□ Applicable√ N/A
III. Directors, supervisors, senior officers and key technical staff
(I) Changes in shareholding of current directors, supervisors, senior officers and key technical
staff and the former directors, supervisors, senior officers and key technical staff who left the
Company during the reporting period
□ Applicable√ N/A
Other information
□ Applicable√ N/A
(II) Share incentives granted to directors, supervisors, senior officers and key technical staff
during the reporting period
□ Applicable√ N/A
□ Applicable√ N/A
√ Applicable□ N/A
Unit: Share
Number of Number Number
Number of
restricted of of
Number of restricted
shares restricted restricted
restricted shares
already shares shares
shares already
granted as that that have
Name Title granted granted as
at the could be been
during the of the end of
beginning vested in vested in
reporting the
of the the the
period reporting
reporting reporting reporting
period
period period period
Chairman & General
LI Yi 3,500,000 0 0 0 3,500,000
Manager
ZHANG Director, Deputy
Wei General Manager
WANG Director, Financial
Yingxia Director
CHEN
Board Secretary 432,750 0 75,000 0 432,750
Yasha
YU Xin Key technical staff 1,070,000 0 100,000 0 1,070,000
HU Fei Key technical staff 540,000 0 75,000 0 540,000
WANG
Key technical staff 630,000 0 75,000 0 630,000
Lin
WANG
Key technical staff 632,000 0 75,000 0 632,000
Zeqin
GUO
Key technical staff 626,000 0 75,000 0 626,000
Zuqiang
Total - 8,601,310 0 625,000 0 8,601,310
(III) Other information
□ Applicable√ N/A
IV. Changes in the controlling shareholder or actual controller
□ Applicable√ N/A
V. Implementation of and changes in arrangements relating to depository receipts during the
reporting period
□ Applicable√ N/A
VI. Shares with special voting rights
□ Applicable√ N/A
Section VIII Preferred Shares
□ Applicable√ N/A
Section IX Bonds
I. Enterprise bonds, corporate bonds and non-financial corporate debt financing instruments
□ Applicable√ N/A
II. Convertible corporate bonds
□ Applicable√ N/A
Section X Financial Report
I. Auditor’s report
□ Applicable√ N/A
II. Financial statements
Consolidated Balance Sheet
June 30, 2023
Prepared by: Appotronics Corporation Limited
Unit: Yuan Currency: RMB
Item Note June 30, 2023 December 31, 2022
Current Assets:
Monetary funds VII. 1 1,279,193,927.48 1,355,882,208.63
Balances with clearing agencies
Placements with banks and other
financial institutions
Held-for-trading financial assets VII. 2 564,877,200.00 352,880,000.00
Derivative financial assets
Notes receivable VII. 4 3,404,025.55 2,234,687.77
Accounts receivable VII. 5 206,727,257.21 208,260,235.79
Receivables financing VII. 6 15,223,418.33 4,279,041.00
Prepayments VII. 7 34,764,381.68 48,445,976.86
Premiums receivable
Amounts receivable under reinsurance
contracts
Reinsurer’s share of insurance contract
reserves
Other receivables VII. 8 26,973,222.84 26,331,721.55
Including: Interest receivable
Dividend receivable 14,307,084.00 13,789,908.00
Financial assets purchased under resale
agreements
Inventories VII. 9 757,719,004.42 865,639,961.79
Contract assets VII. 10 1,608,301.56 1,061,581.35
Assets held for sale
Non-current assets due within 1 year VII. 12 28,306,652.31 13,431,554.82
Other current assets VII. 13 95,956,187.10 106,502,611.79
Total current assets 3,014,753,578.48 2,984,949,581.35
Non-current Assets:
Loans and advances
Debt investments
Other debt investments
Long-term receivables VII. 16 22,198,629.19 11,524,193.80
Long-term equity investment VII. 17 156,523,146.05 162,394,917.57
Investment in other equity instruments VII. 18 7,075,419.38 7,075,419.38
Other non-current financial assets
Investment property
Fixed assets VII. 21 379,962,412.96 427,539,718.53
Construction in progress VII. 22 314,382,210.87 278,978,057.73
Productive biological assets
Oil and gas assets
Right-of-use assets VII. 25 55,804,553.57 62,255,670.29
Intangible assets VII. 26 285,586,197.40 290,341,693.08
Development expenditure
Goodwill
Long-term prepaid expenses VII. 29 7,285,477.87 5,990,984.03
Deferred tax assets VII. 30 78,069,270.62 89,730,936.02
Other non-current assets VII. 31 18,633,790.53 12,569,088.37
Total non-current assets 1,325,521,108.44 1,348,400,678.80
Total assets 4,340,274,686.92 4,333,350,260.15
Current Liabilities:
Short-term borrowings VII. 32 129,604,426.40 129,589,634.03
Loans from the central bank
Taking from banks and other financial
institutions
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable VII. 35 80,254,013.57 201,299,388.57
Accounts payable VII. 36 275,507,953.57 276,845,321.28
Advance from customers VII. 37 99,404,605.97 113,834,728.10
Contract liabilities VII. 38 39,465,849.54 37,285,920.43
Financial assets sold under repurchase
agreements
Customer deposits and deposits from
banks and other financial institutions
Funds from securities trading agency
Funds from underwriting securities
agency
Employee benefits payable VII. 39 29,744,716.45 58,470,960.55
Taxes payable VII. 40 6,453,066.16 8,272,768.90
Other payables VII. 41 119,907,648.52 56,662,357.08
Including: Interest payable
Dividend payable 797,774.22
Fees and commissions payable
Amounts payable under reinsurance
contracts
Liabilities held for sale
Non-current liabilities due within 1 year VII. 43 178,360,640.39 178,031,817.37
Other current liabilities VII. 44 9,799,529.40 28,383,608.37
Total current liabilities 968,502,449.97 1,088,676,504.68
Non-current Liabilities:
Insurance contract reserves
Long-term borrowings VII. 45 531,486,901.70 403,720,542.45
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities VII. 47 27,260,832.49 34,319,284.23
Long-term payables
Long-term employee benefits payable
Provisions VII. 50 53,463,551.36 56,463,882.87
Deferred income VII. 51 5,112,246.23 8,651,422.26
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 617,323,531.78 503,155,131.81
Total liabilities 1,585,825,981.75 1,591,831,636.49
Owners’ Equity (Shareholders’ Equity):
Paid-in capital (or share capital) VII. 53 457,107,538.00 457,107,538.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve VII. 55 1,551,466,365.12 1,530,752,116.04
Less: Treasury shares VII. 56 19,377,297.59 19,377,297.59
Other comprehensive income VII. 57 12,451,180.91 5,736,897.41
Special reserve
Surplus reserve VII. 59 75,519,782.06 75,519,782.06
General risk reserve
Retained profits VII. 60 648,203,885.57 597,924,451.67
Total owners’ (or shareholders’) equity
attributable to owners of the parent 2,725,371,454.07 2,647,663,487.59
company
Minority interests 29,077,251.10 93,855,136.07
Total owners’ (or shareholders’)
equity
Total liabilities and owners’ (or
shareholders’) equity
Principal of the Company: LI Yi Chief Accountant: WANG Yingxia Person in Charge of the
Accounting Body: WANG Yingxia
Balance Sheet of the Parent Company
June 30, 2023
Prepared by: Appotronics Corporation Limited
Unit: Yuan Currency: RMB
Item Note June 30, 2023 December 31, 2022
Current Assets:
Monetary funds 708,529,158.47 675,429,827.76
Held-for-trading financial assets 556,410,000.00 352,880,000.00
Derivative financial assets
Notes receivable 3,404,025.55 2,234,687.77
Accounts receivable XVII. 1 640,188,219.65 688,004,828.29
Receivables financing 8,441,068.33 2,399,041.00
Prepayments 8,174,839.77 11,009,592.85
Other receivables XVII. 2 14,803,374.55 7,556,623.71
Including: Interest receivable
Dividend receivable
Inventories 342,827,948.28 390,906,125.18
Contract assets 1,608,301.56 1,061,581.35
Assets held for sale
Non-current assets due within 1 year 1,388,837.66 1,334,808.66
Other current assets 25,403,663.47 27,531,860.98
Total current assets 2,311,179,437.29 2,160,348,977.55
Non-current Assets:
Debt investments
Other debt investments
Long-term receivables 993,013.56 944,108.40
Long-term equity investment XVII. 3 466,035,120.86 450,239,347.45
Investment in other equity instruments 7,075,419.38 7,075,419.38
Other non-current financial assets
Investment property
Fixed assets 64,584,608.06 66,271,459.60
Construction in progress 309,377,852.19 270,837,599.21
Productive biological assets
Oil and gas assets
Right-of-use assets 41,175,572.84 52,738,418.54
Intangible assets 288,593,244.60 294,108,453.73
Development expenditure
Goodwill
Long-term prepaid expenses 1,136,835.80 487,991.29
Deferred tax assets 17,162,782.96 20,220,930.66
Other non-current assets 16,605,003.36 9,952,305.78
Total non-current assets 1,212,739,453.61 1,172,876,034.04
Total assets 3,523,918,890.90 3,333,225,011.59
Current Liabilities:
Short-term borrowings 60,038,850.01 60,043,166.67
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 33,608,729.87 58,301,159.76
Accounts payable 289,751,340.58 275,547,785.20
Advance from customers
Contract liabilities 17,901,395.11 19,945,270.00
Employee benefits payable 16,396,021.22 35,920,277.61
Taxes payable 1,883,828.76 5,339,271.71
Other payables 77,053,825.14 9,722,655.99
Including: Interest payable
Dividend payable 797,774.22
Liabilities held for sale
Non-current liabilities due within 1 year 50,590,576.11 24,463,018.64
Other current liabilities 1,429,595.96 2,666,327.90
Total current liabilities 548,654,162.76 491,948,933.48
Non-current Liabilities:
Long-term borrowings 249,181,118.32 148,087,667.43
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 19,976,948.15 29,114,281.86
Long-term payables
Long-term employee benefits payable
Provisions 22,959,255.63 24,939,050.33
Deferred income 2,657,700.76 5,630,959.06
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 294,775,022.86 207,771,958.68
Total liabilities 843,429,185.62 699,720,892.16
Owners’ Equity (Shareholders’ Equity):
Paid-in capital (or share capital) 457,107,538.00 457,107,538.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve 1,561,226,098.34 1,541,789,874.63
Less: Treasury shares 19,377,297.59 19,377,297.59
Other comprehensive income
Special reserve
Surplus reserve 74,242,241.33 74,242,241.33
Retained profits 607,291,125.20 579,741,763.06
Total owners’ (or shareholders’)
equity
Total liabilities and owners’ (or 3,523,918,890.90 3,333,225,011.59
shareholders’) equity
Principal of the Company: LI Yi Chief Accountant: WANG Yingxia Person in Charge of the
Accounting Body: WANG Yingxia
Consolidated Income Statement
Jan. - Jun. 2023
Unit: Yuan Currency: RMB
Item Note Half year of 2023 Half year of 2022
I. Total operating income 1,073,249,037.75 1,269,322,202.11
Including: Operating income VII. 61 1,073,249,037.75 1,269,322,202.11
Interest income
Premiums earned
Fee and commission income
II. Total operating costs 1,012,145,838.42 1,227,121,118.16
Including: Operating costs VII. 61 668,659,467.49 884,560,607.88
Interest expenses
Fee and commission expenses
Surrenders
Claims and policyholder benefits (net
of amounts recoverable from reinsurers)
Net withdrawal of insurance contract
reserves
Insurance policyholder dividends
Expenses for reinsurance accepted
Taxes and surcharges VII. 62 4,005,751.53 4,636,401.10
Selling expenses VII. 63 143,399,660.02 120,302,361.36
Administrative expenses VII. 64 86,696,223.82 106,015,842.36
R&D expenses VII. 65 126,406,142.12 114,959,786.37
Financial expenses VII. 66 -17,021,406.56 -3,353,880.91
Including: Interest expense 7,061,642.05 12,510,421.43
Interest income 15,604,073.30 6,740,942.87
Add: Other income VII. 67 23,608,983.31 21,565,810.43
Investment income (loss is indicated
VII. 68 -2,806,106.20 -4,567,473.71
by “-”)
Including: Income from investments in
-8,071,814.75 -10,562,840.53
associates and joint ventures
Gains from derecognition of
financial assets at amortized assets (loss is
indicated by “-”)
Foreign exchange gains (loss is
indicated by “-”)
Gains from net exposure hedges (loss
is indicated by “-”)
Gains from changes in fair values (loss
VII. 70 -1,634,000.00
is indicated by “-”)
Losses of credit impairment (loss is
VII. 71 -3,513,083.07 1,393,164.79
indicated by “-”)
Impairment losses of assets (loss is
VII. 72 -29,013,931.74 -19,822,363.99
indicated by “-”)
Gains from disposal of assets (loss is
VII. 73 15,262.15 17,213.16
indicated by “-”)
III. Operating profit (loss is indicated by “-”) 49,394,323.78 39,153,434.63
Add: Non-operating income VII. 74 9,424,347.83 167,888.31
Less: Non-operating expenses VII. 75 641,261.92 1,511,909.47
IV. Total profits (total losses are indicated by 58,177,409.69 37,809,413.47
“-”)
Less: Income tax expenses VII. 76 18,649,943.64 19,269,471.17
V. Net profits (net losses are indicated by “-”) 39,527,466.05 18,539,942.30
(I) Categorized by the continuity of operation
(net losses are indicated by “-”)
operations (net losses are indicated by “-”)
(II) Categorized by the ownership
of the parent company (net losses are 74,914,640.95 45,966,481.10
indicated by “-”)
minority shareholders (net losses are indicated -35,387,174.90 -27,426,538.80
by “-”)
VI. Other comprehensive income, net of tax VII. 77 5,158,805.71 13,583,493.02
(I) Other comprehensive income that can be
attributable to owners of the parent company, 6,714,283.50 13,734,264.61
net of tax
cannot be reclassified subsequently to profit or
loss
(1) Changes from remeasurement of defined
benefit plans
(2) Other comprehensive income that cannot
be reclassified to profit or loss under the
equity method
(3) Changes in fair value of investments in
other equity instruments
(4) Changes in fair value of enterprises’ own
credit risks
be reclassified to profit or loss
(1) Other comprehensive income that will be
reclassified to profit or loss under the equity -4,176,328.87 -9,668,892.26
method
(2) Changes in fair value of other debt
investments
(3) Amount of financial assets reclassified to
other comprehensive income
(4) Provision for credit impairment of other
debt investments
(5) Reserve for cash flow hedges
(6) Exchange differences on translation of
financial statements denominated in foreign 10,890,612.37 23,403,156.87
currencies
(7) Others
(II) Other comprehensive income that can
be attributable to minority shareholders, net of -1,555,477.79 -150,771.59
tax
VII. Total comprehensive income 44,686,271.76 32,123,435.32
(I) Total comprehensive income that can be
attributable to owners of the parent company
(II) Total comprehensive income that can be
-36,942,652.69 -27,577,310.39
attributable to minority shareholders
VIII. Earnings per share:
(I) Basic earnings per share (RMB/share) 0.16 0.10
(II) Diluted earnings per share (RMB/share) 0.16 0.10
In the event of business combinations involving enterprises under common control, the net profits
realized prior to the combination by the party being absorbed is: RMB 0.00, and the net profits realized
in the last period by the party being absorbed is: RMB 0.00.
Principal of the Company: LI Yi Chief Accountant: WANG Yingxia Person in Charge of the
Accounting Body: WANG Yingxia
Income Statement of the Parent Company
Jan. - Jun. 2023
Unit: Yuan Currency: RMB
Note Half year of Half year of
Item
I. Operating income XVII. 4 542,956,800.34 649,645,354.34
Less: Operating costs XVII. 4 368,571,473.83 432,684,792.22
Taxes and surcharges 3,199,879.01 2,709,645.68
Selling expenses 37,056,481.71 34,971,927.98
Administrative expenses 46,709,472.09 70,191,714.62
R&D expenses 70,859,871.98 74,661,621.25
Financial expenses -16,034,801.70 -12,346,217.67
Including: Interest expense 3,133,969.39 1,758,702.76
Interest income 14,313,472.46 9,044,664.08
Add: Other income 19,359,728.30 12,418,751.65
Investment income (loss is indicated by “-”) XVII. 5 12,717,708.55 5,884,922.38
Including: Income from investments in
associates and joint ventures
Gains from derecognition of financial
assets at amortized assets (loss is indicated by “-”)
Gains from net exposure hedges (loss is
indicated by “-”)
Gains from changes in fair values (loss is
-1,634,000.00
indicated by “-”)
Losses of credit impairment (loss is indicated
-2,891,569.80 -970,107.59
by “-”)
Impairment losses of assets (loss is indicated
-7,961,985.67 -7,784,985.64
by “-”)
Gains from disposal of assets (loss is indicated
by “-”)
II. Operating profit (loss is indicated by “-”) 53,831,023.23 54,686,451.06
Add: Non-operating income 362,544.72 94,307.77
Less: Non-operating expenses 216,230.87 1,451,707.15
III. Total profits (total losses are indicated by “-”) 53,977,337.08 53,329,051.68
Less: Income tax expenses 1,792,767.89 11,694,579.04
IV. Net profits (net losses are indicated by “-”) 52,184,569.19 41,634,472.64
(I) Net profits from continuing operations (net
losses are indicated by “-”)
(II) Net profits from discontinued operations (net
losses are indicated by “-”)
V. Other comprehensive income, net of tax
(I) Other comprehensive income that cannot be
reclassified subsequently to profit or loss
benefit plans
reclassified to profit or loss under the equity method
equity instruments
credit risks
(II) Other comprehensive income that will be
reclassified to profit or loss
reclassified to profit or loss under the equity method
investments
other comprehensive income
investments
financial statements denominated in foreign
currencies
VI. Total comprehensive income 52,184,569.19 41,634,472.64
VII. Earnings per share:
(I) Basic earnings per share (RMB/share)
(II) Diluted earnings per share (RMB/share)
Principal of the Company: LI Yi Chief Accountant: WANG Yingxia Person in Charge of the
Accounting Body: WANG Yingxia
Consolidated Cash Flow Statement
Jan. - Jun. 2023
Unit: Yuan Currency: RMB
Item Note Half year of 2023 Half year of 2022
I. Cash Flows from Operating Activities:
Cash receipts from the sale of goods and the
rendering of services
Net increase in customer deposits and
deposits from banks and other financial
institutions
Net increase in loans from the central bank
Net increase in taking from banks and other
financial institutions
Cash receipts from premiums under direct
insurance contracts
Net cash receipts from reinsurance business
Net cash receipts from policyholders’
deposits and investment contract liabilities
Cash receipts from interest, fees and
commissions
Net increase in taking from banks
Net increase in financial assets sold under
repurchase arrangements
Net cash received from securities trading
agencies
Receipts of tax refunds 4,435,896.68 3,189,929.64
Other cash receipts relating to operating
VII. 78 90,837,327.64 34,395,802.37
activities
Sub-total of cash inflows from operating 1,212,329,008.00 1,466,819,846.60
activities
Cash payments for goods purchased and
services received
Net increase in loans and advances to
customers
Net increase in balance with the central bank
and due from banks and other financial
institutions
Cash payments for claims and
policyholders’ benefits under direct insurance
contracts
Net increase in placements with banks and
other financial institutions
Cash payments for interest, fees and
commissions
Cash payments for insurance policyholder
dividends
Cash payments to and on behalf of
employees
Payments of various types of taxes 30,029,161.72 47,664,436.15
Other cash payments relating to operating VII. 78
activities
Sub-total of cash outflows from operating
activities
Net cash flow from operating activities 114,738,832.13 -78,553,359.67
II. Cash Flows from Investing Activities:
Cash receipts from disposals and recovery of
investments
Cash receipts from investment income 5,265,708.55 5,995,366.82
Net cash receipts from disposals of fixed
assets, intangible assets and other long-term 30,975.00 2,210.00
assets
Net cash receipts from disposals of
subsidiaries and other business units
Other cash receipts relating to investing
activities
Sub-total of cash inflows from investing
activities
Cash payments to acquire or construct fixed
assets, intangible assets and other long-term 41,659,342.63 53,593,529.31
assets
Cash payments to acquire investments 976,816,480.00 995,000,000.00
Net increase in pledged loans receivables
Net cash payments for acquisitions of
subsidiaries and other business units
Other cash payments relating to investing
activities
Sub-total of cash outflows from investing
activities
Net cash flows from investment
-260,010,504.24 5,167,457.19
activities
III. Cash Flows from Financing Activities:
Cash receipts from capital contributions 50,609,959.00 8,866,332.86
Including: Cash receipts from capital
contributions from minority shareholders of
subsidiaries
Cash receipts from borrowings 265,000,000.00 260,569,353.56
Other cash receipts relating to financing
activities
Sub-total of cash inflows from financing
activities
Cash repayments of borrowings 137,959,994.00 70,016,183.00
Cash payments for distribution of dividends
or profits or settlement of interest expenses
Including: Payments for distribution of
dividends or profits to minority shareholders of 11,040,000.00
subsidiaries
Other cash payments relating to financing
VII. 78 17,407,047.01 17,704,289.67
activities
Sub-total of cash outflows from financing
activities
Net cash flows from financing activities 110,646,737.55 124,508,865.09
IV. Effect of Foreign Exchange Rate
Changes on Cash and Cash Equivalents
V. Net Increase in Cash and Cash
-26,350,268.55 60,285,822.80
Equivalents
Add: Opening balance of cash and cash
equivalents
VI. Closing Balance of Cash and Cash
Equivalents
Principal of the Company: LI Yi Chief Accountant: WANG Yingxia Person in Charge of the
Accounting Body: WANG Yingxia
Cash Flow Statement of the Parent Company
Jan. - Jun. 2023
Unit: Yuan Currency: RMB
Item Note Half year of 2023 Half year of 2022
I. Cash Flows from Operating Activities:
Cash receipts from the sale of goods and the
rendering of services
Receipts of tax refunds 1,915,638.25 329,661.66
Other cash receipts relating to operating
activities
Sub-total of cash inflows from operating
activities
Cash payments for goods purchased and
services received
Cash payments to and on behalf of
employees
Payments of various types of taxes 12,354,746.49 25,813,452.99
Other cash payments relating to operating
activities
Sub-total of cash outflows from operating
activities
Net cash flow from operating activities 125,758,431.19 -8,672,402.14
II. Cash Flows from Investing Activities:
Cash receipts from disposals and recovery of
investments
Cash receipts from investment income 12,717,708.55 5,884,922.38
Net cash receipts from disposals of fixed
assets, intangible assets and other long-term
assets
Net cash receipts from disposals of
subsidiaries and other business units
Other cash receipts relating to investing
activities
Sub-total of cash inflows from investing
activities
Cash payments to acquire or construct fixed
assets, intangible assets and other long-term 35,226,743.48 46,538,785.01
assets
Cash payments to acquire investments 976,818,280.00 935,000,000.00
Net cash payments for acquisitions of
subsidiaries and other business units
Other cash payments relating to investing
activities
Sub-total of cash outflows from investing
activities
Net cash flows from investment
-234,302,339.93 -98,653,862.63
activities
III. Cash Flows from Financing Activities:
Cash receipts from capital contributions 50,609,959.00 8,866,332.86
Cash receipts from borrowings 135,000,000.00 80,569,353.56
Other cash receipts relating to financing
activities
Sub-total of cash inflows from financing
activities
Cash repayments of borrowings 5,750,000.00 500,000.00
Cash payments for distribution of dividends
or profits or settlement of interest expenses
Other cash payments relating to financing
activities
Sub-total of cash outflows from financing
activities
Net cash flows from financing activities 138,107,859.55 27,490,416.10
IV. Effect of Foreign Exchange Rate
Changes on Cash and Cash Equivalents
V. Net Increase in Cash and Cash
Equivalents
Add: Opening balance of cash and cash
equivalents
VI. Closing Balance of Cash and Cash
Equivalents
Principal of the Company: LI Yi Chief Accountant: WANG Yingxia Person in Charge of the
Accounting Body: WANG Yingxia
Consolidated Statement of Changes in Owners’ Equity
Jan. - Jun. 2023
Unit: Yuan Currency: RMB
Half year of 2023
Equity attributable to owners of the Parent Company
Item Other equity instruments Gene Total
Paid-in Other Speci Minority
Less: ral owner’s
capital Capital comprehen al Surplus Retained Othe interests
Preferr Perpet Treasury risk Sub-total equity
(or share Othe reserve sive reser reserve profits rs
ed ual shares reser
capital) rs income ve
shares bonds ve
I. Closing
balance of the 38.00 6.04 7.59 1 2.06 1.67 7.59 .07 3.66
prior year
Add: Changes
in accounting
policies
Correctio
ns of prior
period errors
Business
combination
involving
enterprises
under
common
control
Others
II. Opening
balance of the 38.00 6.04 7.59 1 2.06 1.67 7.59 .07 3.66
current year
III. Changes
for the year -
(decrease is 8 0 90 8
indicated by .97
“-”)
(I) Total 6,714,283.5 74,914,640. 81,628,924.4 - 44,686,271.7
comprehensiv 0 95 5 36,942,652 6
e income .69
(II) Owners’
contributions 20,714,249.0 20,714,249.0
and reduction 8 8
.28
in capital
shares
contributed by
owners
contribution
from holders
of other
equity
instruments
based
payment 20,442,747.1 20,442,747.1 3,204,207. 23,646,954.6
recognized in 9 9 49 8
owners’
equity
.77 8
(III) Profit - - - -
distribution 24,635,207. 24,635,207.0 11,040,000 35,675,207.0
surplus
reserve
general risk
reserve
- - - -
Distributions
to owners (or 05 5 .00 5
shareholders)
(IV) Transfers
within
owners’
equity
Capitalization
of capital
reserve
Capitalization
of surplus
reserve
by surplus
reserve
earnings
carried
forward from
changes in
defined
benefit plans
earnings
carried
forward from
other
comprehensiv
e income
(V) Special
reserve
special
reserve in the
period
utilized in the
current period
(VI) Others
IV. Closing
balance of the 38.00 5.12 7.59 91 2.06 5.57 4.07 .10 5.17
current year
Half year of 2022
Equity attributable to owners of the Parent Company
Other equity instruments Gene Total
Item Paid-in Other Speci Minority
Less: ral owner’s
capital Capital comprehen al Surplus Retained Othe interests
Preferr Perpet Treasury risk Sub-total equity
(or share Othe reserve sive reser reserve profits rs
ed ual shares reser
capital) rs income ve
shares bonds
ve
I. Closing -
balance of the 01.00 6.65
prior year 60
Add: Changes
in accounting
policies
Correcti
ons of prior
period errors
Business
combination
involving
enterprises
under
common
control
Others
II. Opening -
balance of the 01.00 6.65
current year 60
III. Changes
for the year - -
(decrease is 1 .13 61
indicated by 3 15
“-”)
(I) Total -
comprehensiv 61 10 1
e income 39
(II) Owners’
contributions 35,464,460.9 3,211,260 32,253,200.7 2,634,023.2 34,887,224.0
and reduction 1 .13 8 4 2
in capital
shares 3,211,260 - -
contributed .13 3,211,260.13 3,211,260.13
by owners
contribution
from holders
of other
equity
instruments
based
payment 35,464,460.9 35,464,460.9 2,634,023.2 38,098,484.1
recognized in 1 1 4 5
owners’
equity
(III) Profit - - -
distribution 47,539,596. 47,539,596.4 47,539,596.4
surplus
reserve
general risk
reserve
- - -
Distributions
to owners (or 43 3 3
shareholders)
(IV)
Transfers
within
owners’
equity
Capitalization
of capital
reserve
Capitalization
of surplus
reserve
by surplus
reserve
earnings
carried
forward from
changes in
defined
benefit plans
earnings
carried
forward from
other
comprehensiv
e income
(V) Special
reserve
special
reserve in the
period
utilized in the
current period
(VI) Others
IV. Closing -
balance of the 01.00 7.56 .13
current year 9
Principal of the Company: LI Yi Chief Accountant: WANG Yingxia Person in Charge of the Accounting Body: WANG Yingxia
Statement of Changes in Owners’ Equity of the Parent Company
Jan. - Jun. 2023
Unit: Yuan Currency: RMB
Half year of 2023
Paid-in Other equity instruments Other
Less: Total
Item capital (or Capital comprehen Special Surplus Retained
Preferred Perpetual Treasury owner’s
share Others reserve sive reserve reserve profits
shares bonds shares equity
capital) income
I. Closing balance of the prior 457,107,538. 1,541,789,8 19,377,297.5 74,242,241. 579,741,76 2,633,504,1
year 00 74.63 9 33 3.06 19.43
Add: Changes in accounting
policies
Corrections of prior
period errors
Others
II. Opening balance of the 457,107,538. 1,541,789,8 19,377,297.5 74,242,241. 579,741,76 2,633,504,1
current year 00 74.63 9 33 3.06 19.43
III. Changes for the year 19,436,223. 27,549,362. 46,985,585.
(decrease is indicated by “-”) 71 14 85
(I) Total comprehensive 52,184,569. 52,184,569.
income 19 19
(II) Owners’ contributions and 19,436,223. 19,436,223.
reduction in capital 71 71
by owners
holders of other equity
instruments
recognized in owners’ equity 71 71
(III) Profit distribution - -
shareholders) 24,635,207. 24,635,207.
(IV) Transfers within owners’
equity
reserve
reserve
reserve
forward from changes in
defined benefit plans
forward from other
comprehensive income
(V) Special reserve
in the period
current period
(VI) Others
IV. Closing balance of the 457,107,538. 1,561,226,0 19,377,297.5 74,242,241. 607,291,12 2,680,489,7
current year 00 98.34 9 33 5.20 05.28
Half year of 2022
Paid-in Other equity instruments Other
Less: Total
Item capital (or Capital comprehen Special Surplus Retained
Preferred Perpetual Treasury owner’s
share Others reserve sive reserve reserve profits
shares bonds shares equity
capital) income
I. Closing balance of the prior 452,756,901. 1,410,150,1 54,988,327. 453,996,13 2,371,891,4
year 00 34.25 58 5.72 98.55
Add: Changes in accounting
policies
Corrections of prior
period errors
Others
II. Opening balance of the 452,756,901. 1,410,150,1 54,988,327. 453,996,13 2,371,891,4
current year 00 34.25 58 5.72 98.55
III. Changes for the year 38,311,779. - 29,195,395.
(decrease is indicated by “-”) 65 5,905,123.7 73
(I) Total comprehensive 41,634,472. 41,634,472.
income 64 64
(II) Owners’ contributions 38,311,779. 35,100,519.
and reduction in capital 65 52
contributed by owners 3,211,260.13 3,211,260.1
holders of other equity
instruments
recognized in owners’ equity 65 65
(III) Profit distribution - -
shareholders) 47,539,596. 47,539,596.
(IV) Transfers within owners’
equity
reserve
reserve
reserve
forward from changes in
defined benefit plans
forward from other
comprehensive income
(V) Special reserve
in the period
current period
(VI) Others
IV. Closing balance of the 452,756,901. 1,448,461,9 54,988,327. 448,091,01 2,401,086,8
current year 00 13.90 58 1.93 94.28
Principal of the Company: LI Yi Chief Accountant: WANG Yingxia Person in Charge of the Accounting Body: WANG Yingxia
III. Company profile
√ Applicable□ N/A
Appotronics Corporation Limited (hereinafter referred to as “Company” or “the Company”),
formally named as Appotronics Corporation Ltd. (hereinafter referred to as “Appotronics Ltd.”), was
jointly invested and established by LI Yi and XU Yanzheng, registered in Nanshan Branch of Market
Supervision and Regulation Bureau of Shenzhen Municipality on October 24, 2006, and headquartered
in Shenzhen City, Guangdong Province. The Company holds the business license bearing the credibility
code 91440300795413991N. The Company’s registered capital is RMB 457,107,538.00 divided into
shares were listed for trading on Shanghai Stock Exchange on July 22, 2019.
The Company can be classified into the computer, communication and other electronic equipment
manufacturing industry. It mainly engages in research and development, production, sales and leasing of
laser display core devices and whole machines, and can provide customers with technical research and
development services and customized products. Its products mainly include laser optical engines, laser
business and education projectors, smart mini projectors, laser TV, laser large venue projector and laser
digital cinema projector.
These financial statements have been approved by the 21st meeting of the second Board of
Directors on August 16, 2023 for public disclosure.
√ Applicable□ N/A
The Company has included 35 subsidiaries into the consolidated financial statements for the current
period, including CINEAPPO Laser Cinema Technology (Beijing) Co., Ltd., Appotronics Hong Kong
Limited, Formovie (Chongqing) Innovative Technology Co., Ltd., Fengmi (Beijing) Technology Co.,
Ltd., etc. Refer to VIII and IX of Section X for details.
IV. Basis of preparation of financial statements
The Company’s financial statements are prepared on a going-concern basis.
√ Applicable□ N/A
The Company has detected no events or circumstances that may cast significant doubt upon its ability to
continue as a going concern within 12 months from the reporting period.
V. Significant accounting policies and accounting estimates
Specific accounting policies and accounting estimates:
√ Applicable□ N/A
IMPORTANT: The Company establishes the specific accounting policies and makes the specific
accounting estimates with respect to the impairment of financial instruments, depreciation of fixed assets,
amortization of intangible assets, recognition of revenues and other transactions and events according to
the actual production and operation characteristics of the Company.
The financial statements prepared by the Company conform to the requirements of the Accounting
Standards for Business Enterprises and truly and completely reflect the Company’s financial position,
operating results, changes in shareholders’ equity, cash flows and other related information.
The Company’s accounting year is from January 1 to December 31 of each calendar year.
√ Applicable□ N/A
The Company has a relatively short operating cycle, and determines the liquidity of assets and liabilities
on the basis of 12 months.
The Company and domestic subsidiaries adopt RMB as their functional currency, while Appotronics
Hong Kong Limited and other overseas subsidiaries engaging in overseas operation adopt the currency
in their primary economic environments as their functional currencies.
and not involving entities under common control
√ Applicable□ N/A
Assets and liabilities acquired from a business combination by the Company are measured at the
book values of the assets and liabilities of the acquiree in the consolidated financial statements of the
ultimate controller at the date of combination. The difference between the book value of the owners’
equity of the acquiree as stated in the consolidated financial statements of the ultimate controller and the
book value of the total consideration paid or total par value of the shares issued in connection with the
combination is treated as an adjustment to the capital reserve. In case the capital reserve is not sufficient
to absorb the difference, the remaining balance is adjusted against the retained earnings.
Where the cost of combination exceeds the Company’s interest in the fair value of the acquiree’s
identifiable net assets, the difference is recognized as goodwill. Where the cost of combination is less
than the Company’s interest in the fair value of the acquiree’s identifiable net assets, the Company
firstly reassesses the fair values of the acquiree’s identifiable assets, liabilities and contingent liabilities
and the measurement of the cost of combination. If after that reassessment, the cost of combination is
still less than the Company’s interest in the fair value of the acquiree’s identifiable net assets, the
acquirer recognizes the remaining difference immediately in profit or loss for the current period.
√ Applicable□ N/A
The parent company includes all of its controlled subsidiaries in its consolidated financial
statements. The consolidated financial statements are prepared by the parent company in accordance
with the Accounting Standards for Business Enterprises No. 33 - Consolidated Financial Statements, on
the basis of the respective financial statements of the parent company and its subsidiaries, by reference
to other relevant data.
√ Applicable□ N/A
relating to its interest in the joint operation:
(1) the assets individually held by the Company, and the Company’s share of the assets held jointly;
(2) the liabilities incurred individually by the Company, and the Company’s share of the liabilities
incurred jointly;
(3) the Company’s revenue from the sale of its share of output of the joint operation;
(4) the Company’s share of revenue from the sale of assets by the joint operation; and
(5) the expenses incurred individually by the Company, and the Company’s share of the expenses
incurred jointly.
Cash equivalents are the Group’s short-term (generally due within 3 months from the acquisition date),
highly liquid investments that are readily convertible to known amounts of cash and which are subject to
an insignificant risk of changes in value.
√ Applicable□ N/A
A foreign currency transaction is recorded in RMB, on initial recognition, by applying the spot
exchange rate on the date of the transaction. At the balance sheet date, foreign currency monetary items
are translated into RMB using the spot exchange rates at the balance sheet date. Exchange differences
arising from such translations are recognized in profit or loss for the current period, except for those
attributable to foreign currency borrowings that have been taken out specifically for the acquisition or
construction of qualifying assets and accrued interest. Non-monetary items denominated in foreign
currencies that are measured at historical cost are translated using the foreign exchange rates ruling at
the transaction dates, without adjusting the amounts in RMB. Non-monetary items denominated in
foreign currencies that are measured at fair value are translated using the foreign exchange rates
prevailing at the dates when the fair value was determined, with exchange differences arising from such
translations recognized in profit or loss for the current period or other comprehensive income.
Asset and liability items on the balance sheet are translated at the spot exchange rate prevailing at
the balance sheet date; shareholders’ equity items other than “retained profits” are translated at the spot
exchange rates at the dates on which such items arose; income and expense items in the income
statement are translated at the exchange rates that approximate the actual spot exchange rates on the
dates of the transactions. Exchange differences arising from such translations are recognized in other
comprehensive income.
√ Applicable□ N/A
On initial recognition, the Company’s financial assets are classified into three categories, including
(1) financial assets at amortized cost; (2) financial assets at fair value through other comprehensive
income; and (3) financial assets at fair value through profit or loss for the current period.
Upon initial recognition, the Company’s financial liabilities are classified into four categories,
including (1) financial liabilities at fair value through profit or loss for the current period; (2) financial
liabilities arising as a result of the transfer of financial assets not meeting the criteria for derecognition or
continuing involvement in the financial assets transferred; (3) financial guarantee contracts not falling
under Clauses (1) and (2), and loan commitments not falling under Clause (1) and below market interest
rate; and (4) financial liabilities at amortized cost.
(1) Recognition and initial measurement of financial assets and financial liabilities
When the Company becomes a party to a financial instrument contract, a financial asset or liability
is recognized. Financial assets and liabilities are initially measured at fair value. Transaction costs
relating to financial assets or liabilities at fair value through profit or loss are directly recognized in
profit or loss for the current period. Transaction costs relating to other kinds of financial assets or
liabilities are included in their initially recognized amount. However, where the accounts that do not
contain any significant financing component or are recognized by the Company without taking into
consideration the significant financing components under the contracts with a term of less than one year
upon initial recognition are initially measured at transaction price defined in the Accounting Standard for
Business Enterprises No. 14 - Revenue.
(2) Subsequent measurement of financial assets
Financial assets at amortized cost are subsequently measured at amortized cost using the effective
interest method. Gains or losses arising from financial assets at amortized cost that do not belong to any
hedging relationship are recognized in profit or loss for the current period upon derecognition,
reclassification, amortization using the effective interest method or recognition of impairment.
Investments in debt instruments at fair value through other comprehensive income are subsequently
measured at fair value. Interest, impairment losses or gains and exchange gains or losses calculated
using the effective interest method are recognized in profit or loss for the current period, and other gains
or losses are recognized in other comprehensive income. Upon derecognition, the aggregate gains or
losses previously recognized in other comprehensive income are transferred to profit or loss for the
current period.
Investments in debt instruments at fair value through other comprehensive income are subsequently
measured at fair value. Dividends received (other than those received as recovery of investment cost) are
recognized in profit or loss for the current period, and other gains or losses are recognized in other
comprehensive income. Upon derecognition, the accumulated gains or losses previously recognized in
other comprehensive income are transferred to retained earnings.
Financial assets at fair value through profit or loss for the current period are subsequently measured
at fair value, with gains or losses arising therefrom, including interest and dividend income, recognized
in profit or loss for the current period, except the financial assets belonging to any hedging relationship.
(3) Subsequent measurement of financial liabilities
Financial liabilities at fair value through profit or loss for the current period include financial
liabilities held for trading (including derivatives classified as financial liabilities), and financial liabilities
directly designated as at fair value through profit or loss for the current period. Such financial liabilities
are subsequently measured at fair value. Changes in the fair value of financial liabilities designated as at
fair value through profit or loss for the period arising out of changes in the Company’s own credit risk
are recognized in other comprehensive income, unless such treatment will result in or increase any
accounting mismatch in profit or loss. Other gains or losses arising from such financial liabilities,
including interest expenses and changes in fair value not arising out of changes in the Company’s own
credit risk, are recognized in profit or loss for the current period, except the financial liabilities
belonging to any hedging relationship. Upon derecognition, the accumulated gains or losses previously
recognized in other comprehensive income are transferred to retained earnings.
for derecognition or continuing involvement in the financial assets transferred
Such financial liabilities are measured in accordance with the Accounting Standards for Business
Enterprises No. 23 - Transfer of Financial Assets.
falling under Clause 1) and below market interest rate
Such financial liabilities are subsequently measured at the higher of ① provision for impairment
losses determined according to the policy for impairment of financial instruments; and ② balance of
the initially recognized amount after deduction of the accumulated amortization determined in
accordance with the relevant provisions of the Accounting Standard for Business Enterprises No. 14 -
Revenue.
Financial liabilities at amortized cost are subsequently measured at amortized cost using the
effective interest method. Gains or losses on financial liabilities at amortized cost that do not belong to
any hedging relationship are recognized in profit or loss for the current period upon derecognition or
amortization using the effective interest method.
(4) Derecognition of financial assets and financial liabilities
① the contractual right to receive cash flows from the financial assets has expired; or
② the financial assets have been transferred and such transfer meets the criteria for derecognition
of financial assets as set forth in the Accounting Standards for Business Enterprises No. 23 - Transfer of
Financial Assets.
part thereof) is discharged.
When a financial asset of the Company is transferred, if substantially all the risks and rewards
incidental to the ownership of the financial asset have been transferred, the financial asset is
derecognized, and the rights and obligations incurred or retained in such transfer are separately
recognized as assets or liabilities (as the case may be); if substantially all the risks and rewards
incidental to the ownership of the financial asset have been retained, the financial asset transferred
continues to be recognized. If the Company neither transferred nor retained a substantial portion of all
risks and rewards incidental to the ownership of the financial asset, then: (1) if the Company does not
retain control over the financial asset, the financial asset is derecognized, and the rights and obligations
incurred or retained in such transfer are separately recognized as assets or liabilities (as the case may be);
and (2) if the Company retains control over the financial asset, the financial asset continues to be
recognized to the extent of the Company’s continuing involvement in the financial asset transferred, and
a corresponding liability is recognized.
If an entire transfer of a financial asset meets the criteria for derecognition, the difference between
(1) the book value of the financial asset transferred at the date of derecognition; and (2) the sum of the
consideration received from the transfer and the portion of the accumulated amount of changes in fair
value directly recorded as other comprehensive income originally that corresponds to the part
derecognized (where the financial asset transferred is an investment in debt instruments at fair value
through other comprehensive income) is recognized in profit or loss for the current period. If part of a
financial asset is transferred and the part transferred entirely meets the criteria for derecognition, the
total book value of the financial asset immediately prior to the transfer is allocated between the part
derecognized and the part not derecognized in proportion to their relative fair value at the date of
transfer, and the difference between (1) the book value of the part derecognized; and (2) the sum of the
consideration received from the transfer of the part derecognized and the portion of the accumulated
amount of changes in fair value directly recorded as other comprehensive income originally that
corresponds to the part derecognized (where the financial asset transferred is an investment in debt
instruments at fair value through other comprehensive income) is recognized in profit or loss for the
current period.
The Company adopts the valuation techniques applicable to the current situations and with
sufficient data available and support of other information, to determine the fair value of financial assets
and financial liabilities. The Company classifies the inputs used by the valuation techniques in the
following levels and uses them in turn:
(1) Level 1 inputs: quoted market price (unadjusted) in an active market for an identical asset or
liability available at the date of measurement;
(2) Level 2 inputs: inputs other than inputs included within Level 1 that are observable directly or
indirectly. This category includes quoted prices for similar assets or liabilities in active markets, quoted
prices for identical or similar assets or liabilities in inactive markets, observable inputs other than quoted
prices (such as interest rate and yield curves observable during regular intervals of quotation), and inputs
validated by the market;
(3) Level 3 inputs: inputs that are unobservable. This category includes interest rate or stock
volatility that cannot be directly observed or validated by observable market data, future cash flows from
retirement obligation incurred in business combinations, and financial forecasts made using own data.
(1) Measurement and accounting treatment of impairment of financial instruments
The Company determines the impairment and assesses provision for impairment losses of financial
assets at amortized cost, investments in debt instruments at fair value through other comprehensive
income, contract assets, lease receivable, loan commitments other than financial liabilities designated at
fair value through profit or loss for the current period, and financial guarantee contracts other than
financial liabilities designated at fair value through profit or loss for the current period and financial
liabilities arising as a result of the transfer of financial assets not meeting the criteria for derecognition or
continuing involvement in the financial assets transferred, on the basis of expected credit losses.
Expected credit loss is the weighted average of credit losses on financial instruments taking into
account the possibility of default. Credit loss is the difference between all contractual cash flows
receivable under the contract and estimated future cash flows discounted at the original effective interest
rate, i.e. the present value of all cash shortage, wherein the Company’s purchased or originated financial
assets that have become credit impaired are discounted at their credit-adjusted effective interest rate.
With respect to purchased or originated financial assets that have become credit impaired, at the
balance sheet date, the Company recognizes a loss allowance equal to the accumulated amount of
changes in lifetime expected credit losses since initial recognition.
With respect to lease receivable, accounts receivable and contract assets that are formed from
transactions under the Accounting Standards for Business Enterprises No. 14 - Revenue, the Company
uses the simple measurement method and recognizes a loss allowance equal to the lifetime expected
credit loss.
With respect to financial assets not using the measurement methods stated above, at each balance
sheet date, the Company assesses whether the credit risk has increased significantly since initial
recognition, and recognizes a loss allowance equal to the lifetime expected credit loss if the credit risk
has increased significantly since initial recognition, or to the expected credit losses within the next 12
months if the credit risk has not increased significantly since initial recognition.
The Company uses reasonable and supportable information, including forward-looking information,
and compares the possibility of default at the balance sheet date with the possibility of default upon
initial recognition, to determine whether the credit risk of the financial instruments has increased
significantly since initial recognition.
At the balance sheet date, if the Company determines that a financial instrument only has low credit
risk, the Company assumes that its credit risk has not increased significantly since initial recognition.
The Company assesses expected credit risk and measures expected credit losses of financial
instruments individually or collectively. When assessing the financial instruments collectively, the
Company includes the financial instruments in different groups according to their common risk
characteristics.
At each balance sheet date, the Company re-assesses the expected credit losses, with the amount of
increase in or reversal of loss allowance recognized in profit or loss for the current period as impairment
losses or gains. With respect to a financial asset at amortized cost, its book value recorded in the balance
sheet is written off against the loss allowance. With respect to an investment in debt instruments at fair
value through other comprehensive income, the Company recognizes the loss allowance in other
comprehensive income, without reducing its book value.
(2) Financial instruments for which expected credit risk is assessed and expected credit losses are
measured collectively by using a three-stage model
Item Basis for determining Method for measuring
a group expected credit losses
Other receivables - group of deposit and By reference to historic credit
security receivable loss experience, and taking
Nature of receivables
Other receivables - group of withholding into account the current
receivable situations and prediction of
Contract assets from future economic conditions,
Other receivables - group of receivables from
related parties in the calculate the expected credit
related parties in the scope of consolidation
scope of consolidation losses according to the default
risk exposure and 12-month or
Other receivables - grouping by aging Aging rate of lifetime expected credit
loss.
(3) Accounts receivable for which expected credit losses are measured collectively and contract
assets using the simple measurement method
Item Basis for Method for measuring expected credit losses
determining a
group
Bank acceptance bills
receivable
Type of notes
Commercial acceptance By reference to historic credit loss experience, and
bills receivable taking into account the current situations and prediction
Contract assets of future economic conditions, calculate the expected
Accounts receivable -
from related credit losses according to the default risk exposure and
group of receivables from
parties in the rate of lifetime expected credit loss.
related parties in the scope
scope of
of consolidation
consolidation
By reference to historic credit loss experience, and
taking into account the current situations and prediction
Accounts receivable - of future economic conditions, prepare a comparison
Aging
grouping by aging table of the aging of accounts receivable and rate of
lifetime expected credit loss, and calculate the expected
credit losses.
Contract assets By reference to historic credit loss experience, and
Contract assets - contract
from related taking into account the current situations and prediction
assets from related parties
parties in the of future economic conditions, calculate the expected
in the scope of
scope of credit losses according to the default risk exposure and
consolidation
consolidation rate of lifetime expected credit loss.
By reference to historic credit loss experience, and
taking into account the current situations and prediction
Contract assets - grouping of future economic conditions, prepare a comparison
Aging
by aging table of the aging of contract assets and rate of lifetime
expected credit loss, and calculate the expected credit
losses.
By reference to historic credit loss experience, and
taking into account the current situations and prediction
Long-term receivables - of future economic conditions, prepare a comparison
Aging
grouping by aging table of the aging of long-term receivables and rate of
lifetime expected credit loss, and calculate the expected
credit losses.
accounts receivable and rate of lifetime expected credit loss
Rate of expected credit loss for accounts receivable, contract assets,
Aging
and long-term receivables (%)
Within 1 year (including, the
same below)
Over 3 years 100.00
Financial assets and financial liabilities are presented in the balance sheet separately, without
offsetting each other. However, the Company may represent the financial assets and financial liabilities
on a net basis in the balance sheet only if: (1) the Company has a legal right that is currently enforceable
to set off the recognized financial assets and financial liabilities, and (2) the Company intends either to
settle on a net basis, or to realize the financial asset and settle the financial liability simultaneously.
With respect to the transfer of financial assets not meeting the criteria for derecognition, the Company
does not offset the financial assets transferred against the relevant liabilities.
Method for recognition of expected credit losses of notes receivable and relevant accounting
treatments
√ Applicable□ N/A
The Company’s method for recognition of expected credit losses of notes receivable and relevant
accounting treatments are disclosed in V.10 of Section X in details.
Method for recognition of expected credit losses of accounts receivable and relevant accounting
treatments
√ Applicable□ N/A
The Company’s method for recognition of expected credit losses of accounts receivable and relevant
accounting treatments are disclosed in V.10 of Section X in details.
√ Applicable□ N/A
The Company’s policies on receivables financing and accounting are disclosed in V.10 of Section X in
details.
Method for recognition of expected credit losses of other receivables and relevant accounting
treatments
√ Applicable□ N/A
The Company’s method for recognition of expected credit losses of other receivables and relevant
accounting treatments are disclosed in V.10 of Section X in details.
√ Applicable□ N/A
Inventories include finished goods or merchandise held by the Company for sale in the ordinary
course of business, or work in progress in the process of production for such sale, or materials or
supplies to be consumed in the production process or in the rendering of services.
The actual cost of inventories upon delivery is calculated using the moving weighted average
method.
At the balance sheet date, inventories are measured at the lower of cost and net realizable value.
Any excess of the cost over the net realizable value of each item/class of inventories is recognized as a
provision for diminution in the value of inventories. For inventories directly used for sale, the net
realizable value is determined as the estimated selling price in the ordinary course of business less the
estimated costs necessary to make the sale and relevant taxes. For inventories required for processing,
the net realizable value is determined as the estimated selling price of finished goods in the ordinary
course of business less the estimated costs of completion, and the estimated costs necessary to make the
sale and relevant taxes. As at the balance sheet date, if in the same item of inventories, some are agreed
with contractual prices while the others are not, the net realizable value for such inventories is
determined separately, and compared with the costs of the two parts of inventories distinctively, as to
determine the provisions or reversal of provisions for decline in value of inventories separately.
The perpetual inventory system is maintained for stock system.
(1) Low cost and short-lived consumable items
Packaging materials are amortized using the immediate write-off method.
(2) Packaging materials
Packaging materials are amortized using the immediate write-off method.
(1). Recognition method and criteria of contract assets
√ Applicable□ N/A
The Company presents contract assets or contract liabilities in the balance sheet according to the
relationship between the performance of contractual obligations and payment by customers. Contract
assets and contract liabilities under a same contract are presented at the net amount after offsetting each
other.
The Company presents its owned right to unconditionally (that is, only depending on the lapse of
time) receive consideration from customers as the accounts receivable, and the right to receive the
consideration for which the goods that have been transferred to customers (that is, depending on factors
other than the lapse of time) as the contract assets.
(2). Method for recognition of expected credit losses of contract assets and relevant accounting
treatments
√ Applicable□ N/A
The method for recognition of expected credit losses of contract assets and relevant accounting
treatments are disclosed in V.10 of Section X in details.
□ Applicable√ N/A
Method for recognition of expected credit losses of debt investments and relevant accounting
treatments
□ Applicable√ N/A
Method for recognition of expected credit losses of other debt investments and relevant accounting
treatments
□ Applicable√ N/A
Method for recognition of expected credit losses of long-term receivables and relevant accounting
treatments
√ Applicable□ N/A
The method for recognition of expected credit losses of long-term receivables and relevant accounting
treatments are disclosed in V.10 of Section X in details.
√ Applicable□ N/A
Joint control is the contractually agreed sharing of control of an arrangement, which exists only
when decisions about the relevant activities of such arrangement require the unanimous consent of the
parties sharing control. Significant influence is the power to participate in the financial and operating
policy decisions of the investee but does not control or jointly control over those policies.
(1) In case of an equity investment acquired through a business combination involving entities
under common control, if the acquirer pays consideration for the business combination by cash, transfer
of non-monetary assets, assumption of liabilities or issuance of equity securities, the initial investment
cost of the long-term equity investment is the Company’s share of the book value of the owners’ equity
of the acquiree in the consolidated financial statements of the ultimate controller at the date of
combination. The difference between: (i) the initial investment cost of the long-term equity investment;
and (ii) the book value of the consideration paid for the combination or the total par value of the shares
issued is treated as an adjustment to the capital reserve. In case the capital reserve is not sufficient to
absorb the difference, the remaining balance is adjusted against the retained earnings.
For a long-term equity investment acquired through business combination involving enterprises
under common control that is achieved through multiple transactions by steps, the Company shall judge
whether such transactions constitute a package deal. If such transactions constitute a package deal, the
Company accounts for such transactions as one transaction to acquire control. If such transactions do not
constitute a package deal, the initial investment cost is the Company’s share of the book value of the
owners’ equity of the acquiree in the consolidated financial statements of the ultimate controller at the
date of combination. The difference between: (i) the initial investment cost of the long-term equity
investment at the date of combination; and (ii) the sum of the book value of long-term equity investment
before the combination and the book value of the consideration paid for acquisition of the additional
shares at the date of combination is adjusted against the capital reserve. In case the capital reserve is not
sufficient to absorb the difference, the remaining balance is adjusted against the retained earnings.
(2) In case of an equity investment acquired through a business combination not involving
enterprises under common control, the initial investment cost is the fair value of the carrying amount of
the consideration paid for the combination at the date of acquisition.
With respect to a long-term equity investment acquired through a business combination not
involving enterprises under common control that is achieved through multiple transactions by steps, the
accounting treatment thereof in the separate financial statements is different from that in the
consolidated financial statements as stated below:
originally held in the acquiree and the additional investment cost incurred is recorded as the initial
investment cost of the equity investment changed into the cost method.
constitute a package deal. If such transactions constitute a package deal, the Company accounts for such
transactions as one transaction to acquire control. If such transactions do not constitute a “package deal”,
the Company re-measures the fair value of the equity held in the acquiree prior to the date of acquisition,
and records the difference between the fair value and the book value as investment income for the
current period; if the equity held in the acquiree prior to the date of acquisition involves other
comprehensive income under equity method, such other comprehensive income is transferred to the
income of the period in which the date of acquisition falls, except for other comprehensive income
arising from re-measurement by the investee of changes in net liabilities or net assets of defined benefit
plans.
(3) In the event of no business combination: the initial investment cost is the purchase price actually
paid if it is acquired by cash, or the fair value of the equity securities issued if it is acquired through
issuance of equity securities, or determined in accordance with the Accounting Standards for Business
Enterprises No. 12 - Debt Restructuring if it is acquired through debt restructuring, or determined in
accordance with the Accounting Standards for Business Enterprises No. 7 - Exchange of Non-monetary
Assets if it is acquired through exchange of non-monetary assets.
Long-term equity investments in investees are measured using the cost method. Long-term equity
investments in associates and joint ventures are measured using the equity method.
N/A
(1). Criteria for recognition
√ Applicable□ N/A
Fixed assets are tangible assets held for production of goods, rendering of service, lease or
operation and management with a useful life of more than one accounting year. A fixed asset is
recognized if the economic benefits relating to it are very likely to flow to the Company and its cost can
be reliably measured.
(2). Method of depreciation
√ Applicable□ N/A
Annual
Method of Depreciation Residual ratio
Category depreciation rate
depreciation period (years) (%)
(%)
Machinery and Straight line 5 5.00 19.00
equipment method
Transportation Straight line 5 5.00 19.00
equipment method
Electronic Straight line 3-5 5.00 19.00-31.67
equipment and method
others
Operating leased Straight line 3, 7 5.00 31.67, 13.57
equipment method
(3). Identification basis, valuation method and depreciation method for fixed assets acquired
under finance leases
□ Applicable√ N/A
√ Applicable□ N/A
flow to the Company and its cost can be reliably measured. A construction in progress is measured at the
actual cost incurred before it is completed and ready for intended use.
actual construction cost. A construction in progress that is ready for intended use but the final settlement
of which has not yet been completed is transferred to fixed assets at estimated value first, and after the
completion of final settlement, the estimated value is adjusted according to the actual cost, but the
accrued depreciation is not adjusted.
√ Applicable□ N/A
Borrowing costs incurred by the Company that are directly attributable to the acquisition,
construction or production of a qualifying asset are capitalized as part of the cost of that asset. Other
borrowing costs are recognized as expenses and charged to the current profit or loss.
(1) Borrowing costs are capitalized when all of the following conditions are met: 1) capital
expenditure has been incurred; 2) borrowing costs have been incurred; and 3) activities relating to the
acquisition, construction or production of the asset that are necessary to prepare the asset for its intended
use or sale have commenced.
(2) Where acquisition and construction or production of a qualified asset is interrupted abnormally
and the interruption period lasts for more than 3 months, the capitalization of the borrowing costs shall
be suspended. The borrowing costs incurred during these periods shall be recognized as expenses for the
current period until the acquisition, construction or production of a qualifying asset is resumed.
(3) Capitalization of borrowing costs shall be ceased when acquisition, construction or production
of the qualifying asset has prepared for its intended use or sale.
As for the specific borrowings for the acquisition and construction or production of assets
qualifying for capitalization, the to-be-capitalized amount of interests shall be determined in light of the
actual cost incurred on the current specific borrowings (including the amortization of discounts or
premiums determined using the effective interest method) minus the income of interests earned from the
unused borrowings by depositing it in the bank or investment income from such borrowing by making it
as a temporary investment; where a general borrowing is used for the acquisition and construction or
production assets qualifying for capitalization, the Company shall calculate and determine the to-be-
capitalized amount of interests on the general borrowing by multiplying the weighted average value of
the accumulative expenditures to asset minus the specific borrowing by the capitalization rate of the
general borrowing used.
□ Applicable√ N/A
□ Applicable√ N/A
√ Applicable□ N/A
Right-of-use assets are initially measured at cost; the cost includes: 1) initial measurement amount
of leased liabilities; 2) lease payments paid on or prior to the commencement of the lease term, net of the
lease incentives (if any) received; 3) initial direct expenses incurred by the lessee; and 4) costs expected
to be incurred by the lessee for dismantling and removing the leased assets, restoring the place of the
leased assets, or restoring the leased assets to the state provided under lease provisions.
The Company depreciates right-of-use assets by using the straight-line method. If there is
reasonable certainty that the lessee will obtain ownership of the leased asset by the end of the lease term,
the Company depreciates the leased asset over its useful life. If there is no reasonable certainty that the
lessee will obtain ownership of the leased asset by the end of the lease term, the Company depreciates
the leased asset over the shorter of the lease term and its remaining useful life.
(1). Measurement, service life and impairment test
√ Applicable□ N/A
initially.
rational expected realization of economic benefits relative to the intangible asset, or is amortized using
the straight-line method if it is impossible to determine expected realization reliably. The specific years
are as follows:
Item Amortization period (years)
Land use rights 30
Patents 10
Software 3-5
(2). Accounting policy on internal research and development expenditures
√ Applicable□ N/A
Expenditures incurred during the research phase of internal research and development projects are
recognized as current expenses when they occur. Expenditures on an internal research and development
project at development phase are recognized as an intangible asset if all the following conditions are met:
(1) it is technically feasible to complete the intangible asset so that it will be available for use of sale; (2)
it is intended to complete the intangible asset so that it will be available for use of sale; (3) the pattern in
which the intangible asset will generate economic results can demonstrate the existence of a market for
the output of the intangible asset or the intangible asset itself, or if it is to be used internally, the
usefulness of the intangible asset; (4) there are sufficient technical, financial and other resources
available to complete the development activities and to use or sell the intangible asset; and (5) the
expenditures attributable to the development of the intangible asset can be reliably measured.
√ Applicable□ N/A
For long-term equity investments, fixed assets, construction in progress, right-of-use assets,
intangible assets with a finite useful life and other long-term assets, if there’s an indication of
impairment at the balance sheet date, the Company assesses their recoverable amount. Goodwill arising
from business combinations and intangible assets with an infinite useful life are tested for impairment
every year regardless of whether there’s an indication of impairment. Goodwill is tested for impairment
together with the relevant groups of assets or combinations of groups of assets.
If the recoverable amount of a long-term asset is less than its book value, the difference is measured
as impairment loss of the asset and recognized in profit or loss for the current period.
√ Applicable□ N/A
Long-term prepaid expenses are expenses that have already been incurred but should be amortized
over a period of more than one year (excluding one year). Long-term prepaid expenses are stated as the
amount actually incurred and shall be amortized evenly by stages within the benefit period or specified
period. If an item of long-term prepaid expenses will not benefit the subsequent periods, the amortized
value of the item that has not yet been amortized is wholly transferred to profit or loss for the current
period.
Recognition method for contract liabilities
√ Applicable□ N/A
The Company presents contract assets or contract liabilities in the balance sheet according to the
relationship between the performance of contractual obligations and payment by customers. Contract
assets and contract liabilities under a same contract are presented at the net amount after offsetting each
other.
The obligations of the Company for transferring goods to customers corresponding to
considerations that have been received or receivable are presented as contract liabilities.
(1). Accounting treatment of short-term employee benefits
√ Applicable□ N/A
and other long-term employee benefits.
The short-term employee benefits actually incurred are recognized as liabilities in the accounting
period during which employee services are rendered, and included in profit or loss for the current period
or the cost of related assets.
(2). Accounting treatment of post-employment benefits
√ Applicable□ N/A
Post-employment benefits are classified into defined contribution plans and defined benefit plans.
(1) In the accounting period during which employee services are rendered, the amount in
contribution as calculated according to the defined contribution plan is recognized as liabilities and
included in profit or loss for the current period or the cost of related assets.
(2) The accounting treatment of a defined benefit plan generally involves the following steps:
assumptions to estimate demographic variables and financial variables, measure the obligation arising
from the defined benefit plan and determine the period to which the relevant obligation belongs.
Meanwhile, discount the obligation arising from the defined benefit plan, in order to determine the
present value of the defined benefit plan obligation and the current service cost;
value of the defined benefit plan obligation by the fair value of the defined benefit plan is recognized as
a net liability or asset of the defined benefit plan. If the defined benefit plan has a surplus, the net assets
of the defined benefit plan are measured at the lower of surplus in the defined benefit plan and asset
ceiling;
plan is recorded as service cost, net interest on the net liabilities or net assets of the defined benefit plan,
and changes arising from re-measurement of the net liabilities or net assets of the defined benefit plan,
wherein the service cost and the net interest on the net liabilities or net assets of the defined benefit plan
are included in profit or loss for the current period or the cost of related assets, and the changes arising
from re-measurement of the net liabilities or net assets of the defined benefit plan are included in other
comprehensive income, which will not be reserved to profit or loss in subsequent periods, but may be
transferred within the scope of equity.
(3). Accounting treatment of termination benefits
√ Applicable□ N/A
If dismissal benefits are provided to employees, the liabilities of employee benefits from the
dismissal benefits are recognized at the earlier of the following and are recognized in the profit or loss
for the current period: (1) when the Company can no longer withdraw the offer of termination benefits
as a result of termination of employment or redundancy; or (2) the Company recognizes the restructuring
costs or expenses relating to payment of termination benefits.
(4). Accounting treatment of other long-term employee benefits
√ Applicable□ N/A
Other long-term employee benefits are accounted for in accordance with the provisions applicable
to defined contribution plans if they are qualified as defined contribution plans, otherwise, are accounted
for in accordance with the provisions applicable to defined benefit plans. In order to simplify the
accounting treatment, the total net amount of the cost of employee benefits arising from the defined
benefit plans that is recorded as service cost, net interest on the net liabilities or net assets of other long-
term employee benefits, changes arising from re-measurement of the net liabilities or net assets of other
long-term employee benefits and other components is included in profit or loss for the current period or
the cost of related assets.
√ Applicable□ N/A
At the commencement date of the lease, the Company recognizes the present value of lease
payments not paid as lease liabilities. The interest rate implicit in the lease is used as the discount rate
for calculating the present value of the lease payments; if the interest rate implicit in the lease cannot be
determined, the incremental borrowing interest rate of the Company is used as the discount rate. The
difference between the lease payments and the present value thereof is considered as unrecognized
finance charges; in each period during the lease term, interest expenses are recognized in the profit or
loss for the current period according to the discount rate of the present value of recognized lease
payments. Variable lease payments not included in measurement of lease liabilities are recognized in the
profit or loss for the current period when the actually arise.
Where, after the lease inception date, there are changes in the substantial fixed payment, the
payables expected on the basis of the residual value of the guarantee, the index or ratio used for
determining the lease payment, the evaluation results or actual exercising of purchase option, renewal
option or lease termination option, the Company re-measures the lease liability as per the present value
of the lease payment after change, and adjust the book value of the right-of-use assets accordingly.
Where the book value of the use right asset has been reduced to zero, but the lease liability still needs to
be further reduced, the Company includes the residual amount in the current profit or loss.
√ Applicable□ N/A
contract or other contingencies is recognized as a provision if it is a present obligation assumed by the
Company, and it is probable that an outflow of resources embodying economic benefits will be required
to settle the obligation, and the amount of the obligation can be reliably measured.
the present obligation. The book value of provisions is reviewed at the balance sheet date.
√ Applicable□ N/A
Share-based payments include equity-settled share-based payments and cash-settled share-based
payments
plan
(1) Equity-settled share-based payments
Equity-settled share-based payments in exchange for services rendered by employees that can be
executed immediately upon being granted, are measured at the fair value of the equity instruments at the
grant date, and recognized as related costs or expenses with a corresponding adjustment to capital
reserve. At each balance sheet date during the vesting period, equity-settled share-based payments in
exchange for services rendered by employees that cannot be executed until services in the vesting period
are completed or required performance conditions are satisfied, are measured at the fair value of the
equity instruments at the grant date based on the best estimate of exercisable numbers of equity
instruments, and recognized as related costs or expenses with a corresponding adjustment to capital
reserve.
For equity-settled share-based payments in exchange for services rendered by other parties, if the
fair value of services from other parties can be measured reliably, they are measured at the fair value of
services from other parties at the date when such services are received. If the fair value of services from
other parties cannot be measured reliably but the fair value of the equity instruments can be measured
reliably, they are measured at the fair value of the equity instruments at the date when such services are
received. The fair value of the equity instruments are recognized as related costs or expenses, with a
corresponding increase in owners’ equity.
(2) Modification and termination of share-based payment plan
If the modification increases the fair value of the equity instruments granted, the Company will
include the incremental fair value of the equity instruments granted in the measurement of the amount
recognized for services received. If the modification increases the number of the equity instruments
granted, the Company will include the fair value of additional equity instruments granted in the
measurement of the amount recognized for services received. If the Company modifies the exercisable
conditions of the share-based payment plan in a manner beneficial to the employee, the Company will
consider the modified exercisable conditions when dealing with exercisable conditions.
If the modification decreases the fair value of the equity instruments granted, the Company will
continue to measure the amount recognized for services received at the fair value of the equity
instruments at the grant date without including the decremental fair value of the equity instruments. If
the modification decreases the number of the equity instruments granted, the Company will treat the
decreased number as the cancelled number of equity instruments granted. If the Company modifies the
exercisable conditions in a manner unbeneficial to the employee, the Company will not consider the
modified exercisable conditions when dealing with exercisable conditions.
If cancellation or settlement of the equity instruments granted occurs (not due to unsatisfaction of
exercisable conditions) during the vesting period, the Company will account for the cancellation or
settlement of the equity instruments granted as an acceleration of vesting, and recognize immediately the
amount that otherwise would have been recognized over the remainder of the vesting period.
□ Applicable√ N/A
(1). Accounting policies adopted for income recognition and measurement
√ Applicable□ N/A
On the commencement date of a contract, the Company evaluates the contract, identifies each
individual performance obligation contained therein and determine whether each individual performance
obligation is performed over time or at a certain point in time.
When meeting one of the following criteria, it belongs to the obligation performed over time,
otherwise it constitutes the obligation performed at a certain point in time: (1) the customer obtains and
consumes the economic benefits generated by the Company’s performance when the Company performs
the contract; (2) the customer can control the products under construction in the process of the
Company’s performance; (3) the products produced in the process of the Company’s performance have
irreplaceable uses, and the Company has the right to collect payment for the cumulative performance
that has been completed up to date throughout the term of the contract.
For the obligation performed over time, the Company recognizes the revenue based on the
performance progress over time. When the performance progress cannot be reasonably determined, and
the costs incurred are expected to be recoverable, revenue is recognized to the extent of costs incurred
until the performance progress can be reasonably determined. For the obligation performed at a certain
point in time, the revenue is recognized at the time point when the customer obtains the control of the
related goods and services. When judging whether the customer has obtained the control of goods, the
Company considers the followings signs: (1) the Company has the current right to receive payment for
such goods, that is, the customer has the current obligation to make payment for such goods; (2) the
Company has transferred the legal ownership of such goods to the customer, that is, the customer has the
legal ownership of such goods; (3) the Company has transferred such goods to the customer physically,
that is, the customer has taken possession of such goods physically; (4) the Company has transferred
material risks and rewards of such goods to the customer, that is, the customer has obtained material
risks and rewards of such goods; (5) the customer has accepted such goods; and (6) other signs that the
customer has obtained control of such goods.
(1) The Company measures the revenue based on the transaction price allocated to individual
performance obligations. The transaction price is the amount of consideration to which the Company is
entitled arising from the transfer of goods or services to the customer, excluding the amount collected on
behalf of a third party and expected to be returned to the customer.
(2) If there is variable consideration in the contract, the Company determines the best estimate of
the variable consideration based on the expected value or the most likely amount. However, variable
consideration is included in the transaction price if, and to the extent that, it is highly probable that its
inclusion will not result in a significant revenue reversal of accumulatively recognized revenue in the
future when the uncertainty has been subsequently resolved.
(3) If there is a major financing component in the contract, the Company determines the transaction
price based on the presumed amount payable in cash when the customer obtains the control of goods or
services. The difference between the transaction price and contract consideration is amortized using the
effective interest method during the term of the contract. If on the commencement of a contract, the
Company expects that the customer’s acquisition of control of goods or services is not more than one
year from the customer’s payment therefor, the major financing component in the contract will not be
considered.
(4) If the contract has two or multiple performance obligations, the Company, on the
commencement of a contract, allocates the transaction price to each individual performance obligation in
the contract by reference to relative standalone selling prices of goods promised thereby.
(1) Revenue from sales of goods
The performance obligation concerning sales of goods (primarily dividing into goods sold to the
domestic market and goods exported to overseas markets) by the Company is taken as one satisfied at a
certain point in time for the recognition of revenue.
Goods sold to the domestic market: 1) Under the direct sale model and the distribution model, the
Company recognizes the revenue when the goods sent have been delivered to customers with customers’
receipt given to the Company. For goods sold attached with return conditions, the Company recognizes
the revenue according to the amount of consideration to which it expects to be entitled in exchange for
transferring goods to customers, and recognize the liabilities according to the expected amount to be
returned due to sales return against the revenue; for goods required for installment and inspection after
sales, the Company recognizes the revenue when such goods have been installed and inspected with
customers’ acceptance certificate given to the Company; If the Company shares profits from sales of
product by downstream end customers, the Company recognizes shared revenue when it can be
measured reliably. 2) Under the commissioned sales mode, the Company recognizes the revenue when it
receives the list of commissioned sales from the customer.
Goods exported to overseas markets: The Company mainly adopts FCA for export of goods. Under
this mode, the Company recognizes revenue when it delivers goods at the designated location with
export customs clearance procedures completed.
(2) E-commerce platform revenue
In the e-commerce platform model, the e-commerce platform is responsible for product promotion
and order management. Consumers place orders and pay directly to the e-commerce platform, and the e-
commerce platform arranges third-party logistics through the Company or ships directly to the consumer
by the e-commerce platform after receiving the consumer's payment. The specific revenue recognition
time points are: for domestic e-commerce platforms, revenue is recognized according to the time of end
customer receipt; for foreign e-commerce platforms, revenue is recognized after receiving the
confirmation list of the e-commerce platform after checking the reconciliation time agreed in the
contract.
(3) Other incomes
Any other performance obligation of the Company is taken as one satisfied over time/at a certain
point in time for the recognition of revenue. For installation services provided by the Company, the
Company recognizes the revenue when it has completed the services and received customers’
acceptance certificate; for repair and maintenance services provided by the Company, the Company
recognizes the revenue when it has completed the services and received payments; for patrol inspection
services provided by the Company, the Company determines the service performance progress by using
the output approach, and recognizes the revenue according to the performance progress; for patent
licensing services provided by the Company, the Company recognizes the revenue when the patent
licensing is completed and handed over; and for technology development services provided by the
Company, the Company recognizes the revenue when it has completed the services or when the agreed
time point of service acceptance is reached.
(2). Description of differences in the accounting policies in revenue recognition due to different
operating modes adopted for the same business type
□ Applicable√ N/A
√ Applicable□ N/A
Assets related to contract costs include contract acquisition costs and contract performance costs.
If costs incurred by the Company for acquiring a contract are expected to be recovered, such costs
are recognized as an asset as contract acquisition costs.
The costs incurred by the Company for performing a contract are recognized as an asset of contract
performance costs if they do not fall within the scope of other relevant standards, like inventories, fixed
assets, or intangible assets, and meet all the following conditions:
materials, manufacturing expenses (or similar expenses), costs explicitly to be borne by customers, and
other costs arising from the contract;
obligations in the future; and
Assets related to contract costs are amortized on the same basis as recognizing incomes from goods
related to assets, and are recognized in the profit or loss for the current period.
If the book value of the assets related to contract costs is greater than the consideration expected to
be acquired by transferring the goods or services related to such assets less the costs expected to be
incurred, the Company makes provision for impairment for the exceeding portion and recognizes
impairment loss of assets. In the event of a change in the factors causing impairment in a prior period, so
that the consideration expected to be acquired by transferring the goods or services related to such assets
less the costs expected to be incurred is greater than the book value of such assets, the provision for
impairment made for such assets is reversed and recognized in the profit or loss for the current period;
provided, however, that the reversed book value of such assets shall not exceed the book value of such
assets at the reversal data on the assumption that no provision for impairment has been made.
√ Applicable□ N/A
government grants; and (2) the Company will receive the government grants. Government grants in the
form of monetary assets are measured at the amount received or receivable. Government grants in the
form of non-monetary assets are measured at fair value, or if their fair value is unavailable, at nominal
amount.
Government grants related to assets are government grants which are offered for purchasing,
constructing or otherwise acquiring long-term assets as provided by the applicable government
documents. In the absence of such express provision in the applicable government documents,
government grants related to assets are those with a primary condition that the Company should
purchase, construct or otherwise acquire long-term assets. Government grants related to assets are offset
against the book value of the relevant assets or recognized as deferred income. Government grants
related to assets recognized as deferred income shall be included in profit or loss over the service life of
the relevant assets on a reasonable and systemic basis. Government grants measured at nominal amount
are directly recognized in profit or loss for the current period. In case of sale, transfer, retirement or
damage of the relevant assets before the end of intended service life, the balance of the unallocated
deferred income is transferred to profit or loss for the period in which the assets are disposed of.
Government grants related to income are government grants other than those related to assets.
Government grants related to both assets and income in which it is difficult to make a distinction
between the portion related to assets and the portion related to income are wholly classified as
government grants related to income. Government grants related to income as compensation for
expenses or losses to be incurred in subsequent periods are recognized as deferred income and in the
period for recognizing the relevant costs, expenses or losses, included in profit or loss for the current
period or offset against the relevant costs. Government grants related to income as compensation for
expenses or losses already incurred are directly included in profit or loss for the current period or offset
against the relevant costs.
offset against the relevant costs and expenses depending on the nature of economic business.
Government grants not related to daily operations of the Company are recognized in non-operating
income or expenses.
(1) If the Ministry of Finance appropriates the interest subsidies to the lending bank, who then
grants the loan to the Company at the policy preferential rate, the loan is stated as the amount actually
received, and the borrowing cost is calculated according to the principal of the loan and the policy
preferential rate.
(2) If the Ministry of Finance directly appropriates the interest subsidies to the Company, the
interest subsidies are offset against the borrowing cost.
√ Applicable□ N/A
item not recognized as asset or liability whose tax base can be determined according to the applicable
tax law, the difference between its tax base and book value) is recognized as a deferred tax asset or
deferred tax liability according to the tax rate applicable to the period in which the asset or liability is
expected to be recovered or settled.
available in future periods against which deductible temporary differences are deductible. At the balance
sheet date, deferred tax assets not recognized in prior periods are recognized if there’s conclusive
evidence that it is probable that sufficient taxable income will be available in future periods against
which the deductible temporary differences are deductible.
extent that it is no longer probable that sufficient taxable income will be available in future periods to
allow the benefit of the deferred tax assets to be utilized. If it is probable that sufficient taxable income
will be available, the reduced amount is reversed.
income tax expenses or gains, except the income taxes arising from any: (1) business combination; or (2)
transaction or event directly recognized in owners’ equity.
(1). Accounting treatment of operating leases
□ Applicable√ N/A
(2). Accounting treatment of finance leases
□ Applicable√ N/A
(3). Method for determination and accounting treatments of lease under the New Lease Standard
√ Applicable□ N/A
On the lease inception date, the Company recognizes a lease with a lease term of not more than 12
months and not containing an option as a short-term lease, and recognizes a low-value assets lease for a
lease in which individually leased assets have a low value when they are new. If the Company subleases
or expects to sublease the leased asset, the original lease is not recognized as a low-value assets lease.
For short-term leases and low-value assets leases, the Company recognizes lease payment in the
costs of relevant assets or the profit or loss for the current period by using the straight-line method in
each period during the lease term.
Except for short-term leases and low-value assets leases subject to simplified treatment above, on
the lease inception date, the Company recognizes right-of-use assets and lease liabilities for leases.
(1) Use right assets
Right-of-use assets are initially measured at cost; the cost includes: 1) initial measurement amount
of leased liabilities; 2) lease payments paid on or prior to the commencement of the lease term, net of the
lease incentives (if any) received; 3) initial direct expenses incurred by the lessee; and 4) costs expected
to be incurred by the lessee for dismantling and removing the leased assets, restoring the place of the
leased assets, or restoring the leased assets to the state provided under lease provisions.
The Company depreciates right-of-use assets by using the straight-line method. If there is
reasonable certainty that the lessee will obtain ownership of the leased asset by the end of the lease term,
the Company depreciates the leased asset over its useful life. If there is no reasonable certainty that the
lessee will obtain ownership of the leased asset by the end of the lease term, the Company depreciates
the leased asset over the shorter of the lease term and its remaining useful life.
(2) Lease liabilities
At the commencement date of the lease, the Company recognizes the present value of lease
payments not paid as lease liabilities. The interest rate implicit in the lease is used as the discount rate
for calculating the present value of the lease payments; if the interest rate implicit in the lease cannot be
determined, the incremental borrowing interest rate of the Company is used as the discount rate. The
difference between the lease payments and the present value thereof is considered as unrecognized
finance charges; in each period during the lease term, interest expenses are recognized in the profit or
loss for the current period according to the discount rate of the present value of recognized lease
payments. Variable lease payments not included in measurement of lease liabilities are recognized in the
profit or loss for the current period when the actually arise.
Where, after the lease inception date, there are changes in the substantial fixed payment, the
payables expected on the basis of the residual value of the guarantee, the index or ratio used for
determining the lease payment, the evaluation results or actual exercising of purchase option, renewal
option or lease termination option, the Company re-measures the lease liability as per the present value
of the lease payment after change, and adjust the book value of the right-of-use assets accordingly.
Where the book value of the use right asset has been reduced to zero, but the lease liability still needs to
be further reduced, the Company includes the residual amount in the current profit or loss.
On the lease inception date, the Company classifies a lease in which almost all the risks and
rewards related to the ownership of the leased asset have been substantially transferred as a finance lease,
and recognizes all other leases as operating leases.
(1) Operating lease
In each period during the lease term, the Company recognizes lease payments as rental incomes by
using the straight-line method/units of production method; initial direct expenses incurred are capitalized,
and amortized on the same basis for recognizing lease incomes for recognizing in the profit or loss for
each period. The variable lease payments acquired by the Company that are related to operating leases
and not recognized in lease payments are recognized in the profit or loss for the current period when
they actually occur.
□ Applicable√ N/A
(1). Changes in significant accounting policies
□ Applicable√ N/A
(2). Changes in significant accounting estimates
□ Applicable√ N/A
(3). The first implementation of new accounting standards or standard interpretations from 2023
onwards that involves adjusting the financial statements at the beginning of the year in which
they were first implemented
□ Applicable√ N/A
□ Applicable√ N/A
VI. Taxes
Description of major categories of taxes and tax rates
√ Applicable□ N/A
Category of tax Basis of tax computation Tax rate
VAT payable is the difference of the
output tax calculated based on the
Value-added tax incomes from selling goods and taxable
(VAT) services in accordance with the Tax Law,
less the input tax allowed to be reduced in
the period
City maintenance 5%, 7%
and construction Turnover tax payable
tax
Education 3%
Turnover tax payable
surcharges
Local education 2%
Turnover tax payable
surcharges
Enterprise income 6.5%, 8.25%, 8.70%, 8.84%, 15%,
Taxable income
tax 16.5%, 20%, 21%, 25%
Disclosure of taxpayers with different rates of enterprise income tax:
√ Applicable□ N/A
Rate of enterprise
Taxpayer
income tax (%)
Appotronics Corporation Limited 15%
Fengmi (Beijing) Technology Co., Ltd. 15%
Appotronics Hong Kong Limited 8.25%, 16.5%
Beijing Orient Appotronics Technology Co., Ltd. 20%
JoveAI Innovation, Inc. 8.70%, 8.84%, 21%
Appotronics USA, Inc. 21%
Formovie Technology Inc. 21%
JoveAI Limited Tax exemption
Wemax LLC 21%
Shenzhen Appotronics Display Device Co., Ltd. 20%
Appotronics Technology (Changzhou) Co., Ltd. 20%
Qingda Appotronics (Xiamen) Technology Co., Ltd. 20%
Shenzhen Appotronics Home Line Technology Co., Ltd. 20%
Shenzhen Appotronics Laser Technology Co., Ltd. 20%
Shenzhen Appotronics Xiaoming Technology Co., Ltd. 20%
JoveAI Asia Company Limited 20%
Formovie Limited 16.5%
Chongqing Ewei Ecommerce Co., Ltd. 20%
Chongqing Guangbo Ecommerce Co., Ltd. 20%
Shenzhen Orange Juice Energy Technology Co., Ltd. 20%
Tianjin Bonian Film Partnership (LP) Tax exemption
CINEAPPO Laser Cinema Technology (Beijing) Co., Ltd. 15%
Hongkong Orange Juice Energy Technology Co., Limited 16.5%
Wemax Inc. 6.5%, 21%
Shenzhen Weiwoqi Trading Co., Ltd. 20%
Yaoyouguang (Chongqing) Technology Co., Ltd. 20%
Appotronics International Limited 16.5%
Appotronics Intelligent Manufacturing (Shenzhen) Co., Ltd. 20%
Shenzhen Qianhai Taishi Investment Partnership (LP) Tax exemption
Other taxpayers except above 25%
Note:
level income tax system, namely, applying the tax rate of 8.25% for the first HKD 2 million taxable
income and 16.50% for the remaining taxable income.
tax rate of 21%.
tax rate of 21%, the California state enterprise income tax rate of 8.84%, and the Delaware state
enterprise income tax rate of 8.70%.
income tax rate of 21%.
of 20%.
the income tax rate of 16.50%.
√ Applicable□ N/A
(1) On December 19, 2022, the Company obtained the High-tech Enterprise Certificate (Certificate
No.: GR202244206480) jointly issued by Shenzhen Science and Technology Innovation Commission,
Shenzhen Finance Bureau and Shenzhen Tax Service of State Taxation Administration with a valid term
of three years. Therefore, the Company paid the enterprise income tax at a rate of 15% in 2023.
(2) On December 17, 2021, Fengmi (Beijing) Technology Co., Ltd. obtained the High-tech
Enterprise Certificate (Certificate No.: GR202111004001) jointly issued by Beijing Municipal Science
and Technology Commission, Beijing Finance Bureau and Beijing Tax Service of State Taxation
Administration with a valid term of three years. Therefore, the Company paid the enterprise income tax
at a rate of 15% in 2023.
(3) On October 18, 2022, CINEAPPO Laser Cinema Technology (Beijing) Co., Ltd. obtained the
High-tech Enterprise Certificate (Certificate No.: GR202211008942) jointly issued by Beijing Municipal
Science and Technology Commission, Beijing Finance Bureau and Beijing Tax Service of State
Taxation Administration with a valid term of three years. Therefore, the Company paid the enterprise
income tax at a rate of 15% in 2023.
(4) In accordance with the Notice of the Ministry of Finance and the State Taxation Administration
on Implementing the Inclusive Tax Deduction and Exemption Policies for Micro and Small Enterprises
(Cai Shui [2019] No. 13), and the Announcement of the Ministry of Finance and the State Taxation
Administration on Implementing Preferential Income Tax Policies for Micro and Small Enterprises and
Individually-owned Businesses (Announcement No. 6 in 2023 of the Ministry of Finance and the State
Taxation Administration), the annual taxable income of a small low-profit enterprise that is not more
than RMB 1 million shall be levied with the enterprise income tax rate at a discount of 25%, namely, for
which the applicable enterprise income tax rate is 20%; for the annual taxable income more than RMB 1
million but no more than RMB 3 million, the taxable income shall be calculated at a discount of 50%,
namely, for which the applicable enterprise income tax rate is 20%. The following companies are
qualified for enjoying such tax incentives: Beijing Orient Appotronics Technology Co., Ltd., Shenzhen
Appotronics Display Device Co., Ltd., Appotronics Technology (Changzhou) Co., Ltd., Qingda
Appotronics (Xiamen) Technology Co., Ltd., Shenzhen Appotronics Home Line Technology Co., Ltd.,
Shenzhen Appotronics Laser Technology Co., Ltd., Shenzhen City Appotronics Xiaoming Technology
Co., Ltd., Chongqing Ewei Ecommerce Co., Ltd., Chongqing Guangbo Ecommerce Co., Ltd., Shenzhen
Orange Juice Energy Technology Co., Ltd., Shenzhen Weiwoqi Trading Co., Ltd., Yaoyouguang
(Chongqing) Technology Co., Ltd., and Appotronics Intelligent Manufacturing (Shenzhen) Co., Ltd.
(1) In accordance with the Notice of the Ministry of Finance and the State Administration of
Taxation on Value-added Tax Policies for Software Products (Cai Shui [2011] No. 100), for self-
developed and produced software products sold by general VAT taxpayers, the tax-refund-upon-
collection policy is applicable to the part of their actual VAT burden in excess of 3% after the VAT has
been collected at a tax rate of 17%. Appotronics Corporation Limited, Fengmi (Beijing) Technology Co.,
Ltd., and Shenzhen Appotronics Software Technology Co., Ltd. are qualified for enjoying such tax
incentives.
(2) According to the Announcement of the Ministry of Finance and the State Taxation
Administration on Clarifying the Policies for Reducing and Exempting Value-added Tax of Small-scale
Taxpayers (Announcement No. 1 of 2023 by the Ministry of Finance and the State Taxation
Administration), production and service-oriented taxpayers are allowed to deduct an additional 5% of
the deductible input tax amount from the payable tax amount; CINEAPPO Laser Cinema Technology
(Beijing) Co., Ltd. is qualified for this tax incentive.
□ Applicable√ N/A
VII. Notes to items in the consolidated financial statements
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Cash on hand 3,346.05 5,479.42
Bank deposits 1,257,428,379.51 1,283,079,345.51
Other monetary funds 21,762,201.92 72,797,383.70
Total 1,279,193,927.48 1,355,882,208.63
Including: Total overseas deposits 185,283,856.24 261,403,774.28
Other information:
In other monetary funds, an amount of RMB 10,961,787.42 is restricted for in use because they are
security deposits; In the bank deposits, RMB 40,000,005.49 is deposited by the Company at banks at
term deposits or in restricted accounts, and therefore is not presented as cash and cash equivalents in the
cash flow statement.
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Financial assets at fair value through profit or loss 564,877,200.00 352,880,000.00
Including:
Equity instrument investment 42,880,000.00 42,880,000.00
Structural deposits 521,997,200.00 310,000,000.00
Total 564,877,200.00 352,880,000.00
Other information:
□ Applicable√ N/A
□ Applicable√ N/A
(1). Categories of notes receivable
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Bank acceptances
Commercial acceptances 3,404,025.55 2,234,687.77
Total 3,404,025.55 2,234,687.77
(2). Notes receivable pledged by the Company at the end of the period
□ Applicable√ N/A
(3). Notes receivable which are undue as at the balance sheet date but endorsed or discounted by
the Company at the end of the period
□ Applicable√ N/A
(4). Notes transferred to accounts receivable due to drawer’s failure in cashing at the end of the
period
□ Applicable√ N/A
(5). Disclosure by categories of provision for bad debts
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance
Provision for Provision for
Carrying amount Carrying amount
bad debts bad debts
Per
Perce cent
Category ntage Book age
Percent Perce Book value
Amoun of value of
Amount age Amount ntage Amount
t provi pro
(%) (%)
sion visi
(%) on
(%)
Provisio
n for bad
debts
made
individu
ally
Including:
Provisio
n for bad
debts 100.00 5.00
made by
group
Including:
Bank
acceptan
ce bills
Commer 3,583,18 100.00 179,15 5.00 3,404,025. 2,352,302. 100.0 117,615.1 5.0 2,234,687.7
cial 4.80 9.25 55 92 0 5 0 7
acceptan
ce bills
Total
Provision for bad debts made individually:
□ Applicable√ N/A
Provision for bad debts made by group:
√ Applicable□ N/A
Item by group: Commercial acceptance bills
Unit: Yuan Currency: RMB
Closing balance
Name Percentage of provision
Notes receivable Provision for bad debts
(%)
Group of commercial 3,583,184.80 179,159.25 5.00
acceptance bills
Total 3,583,184.80 179,159.25 5.00
Recognition criterion to make the Provision for bad debts by group and explanation
□ Applicable√ N/A
If the bad debt provision is made according to the general model of ECL, please refer to the disclosure of
other receivables:
□ Applicable√ N/A
(6). Provision for bad debts
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Changes for the current period
Opening Closing
Category Recovery or Write off or
balance Provision balance
reversal cancellation
Provision for bad debts
made individually
Provision for bad debts
made by group
Total 117,615.15 61,544.10 179,159.25
Including significant amounts recovered or reversed from the current provision for bad
debts:
□ Applicable√ N/A
Other information:
None
(7). Notes receivable actually canceled in the current period
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
(1). Disclosure by aging
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Aging Closing balance of carrying amount
Within 1 year
Including: Sub-items within 1 year
Within 1 year 201,099,239.16
Sub-total of items within 1 year 201,099,239.16
Over 3 years 306,798.88
Total 240,969,796.39
(2). Disclosure by categories of provision for bad debts
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance
Category Carrying Provision for bad Book Carrying Provision for Book
amount debts value amount bad debts value
Perce
Percent ntage
Perce Perce
age of of
Amount ntage Amount Amount ntage Amount
provisi provi
(%) (%)
on (%) sion
(%)
Provision for
bad debts 17,662,4 17,662,4 16,498,5 16,498,5 100.0
made 66.52 66.52 40.60 40.60 0
individually
Including:
Provision for
bad debts 17,662,4 17,662,4 16,498,5 16,498,5 100.0
made 66.52 66.52 40.60 40.60 0
individually
Provision for
bad debts 223,307, 16,580,0 206,727, 222,932, 14,672,3 208,260,
made by 329.87 72.67 257.20 593.11 57.32 235.79
group
Including:
Accounts
receivable for
which the
provision for 92.67 7.42 93.11 6.58
bad debts is
made by
aging group
Total 14.21 13.02
Provision for bad debts made individually:
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance
Name Provision for bad Percentage of Reason for
Carrying amount
debts provision (%) provision
Expected to be
unrecoverable
Company A 16,875,766.52 16,875,766.52 100.00 because the
customer is in
hardship
Expected to be
Company B 786,700.00 786,700.00 100.00 unrecoverable
because the
customer is in
hardship
Total 17,662,466.52 17,662,466.52 100.00 /
Explanation about provision for bad debts made individually:
□ Applicable√ N/A
Provision for bad debts made by group:
√ Applicable□ N/A
Item by group: Accounts receivable for which the provision for bad debts is made by aging group
Unit: Yuan Currency: RMB
Closing balance
Name Percentage of provision
Accounts receivable Provision for bad debts
(%)
Within 1 year 198,608,813.03 9,930,440.68 5.00
Over 3 years 306,798.88 306,798.88 100.00
Total 223,307,329.87 16,580,072.67 7.42
Recognition criterion to make the Provision for bad debts by group and explanation:
□ Applicable√ N/A
If the bad debt provision is made according to the general model of ECL, please refer to the disclosure of
other receivables:
□ Applicable√ N/A
(3). Provision for bad debts
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Changes for the current period
Opening Recovery Closing
Category Write off or Other
balance Provision or balance
cancellation changes
reversal
Provision for
bad debts
made
individually
Provision for
bad debts
made by
group
Total 31,170,897.92 3,143,542.32 69,851.05 2,050.00 34,242,539.19
Including significant amounts recovered or reversed from the current provision for bad debts:
□ Applicable√ N/A
(4). Accounts receivable actually canceled in the current period
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Cancellation amount
Accounts receivable actually canceled 2,050.00
In which significant amounts canceled are described as below:
□ Applicable√ N/A
Description of accounts receivable cancellation:
□ Applicable√ N/A
(5). Top five closing balances of accounts receivable categorized by debtors
√ Applicable□ N/A
Entity Carrying Proportion to the balance of Provision for Percentage of
amount accounts receivable (%) bad debts provision (%)
Top 1 74,247,921.96 30.81 3,712,396.10 5.00
Top 2 27,415,195.69 11.38 1,377,935.38 5.03
Top 3 16,875,766.52 7.00 16,875,766.52 100.00
Top 4 15,719,222.85 6.52 2,374,725.82 15.11
Top 5 12,880,063.84 5.35 644,003.19 5.00
Total 147,138,170.86 61.06 24,984,827.02 16.98
(6). Accounts receivable derecognized due to transfer of financial assets
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Amount Gains or losses associated with Method of
derecognized derecognition transferring financial
assets
CCB E
Infocomm
Sub-total 3,000,000.00
(7). Assets and liabilities arising from transfer of accounts receivable and continued involvement
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Bank acceptance bills 15,223,418.33 4,279,041.00
Total 15,223,418.33 4,279,041.00
Changes in amount and fair value of receivables financing:
□ Applicable√ N/A
If the bad debt provision is made according to the general model of ECL, please refer to the disclosure of
other receivables:
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
(1). Disclosure of prepayments by aging
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance
Aging
Amount Percentage (%) Amount Percentage (%)
Within 1 year 16,262,610.13 46.78 37,333,767.05 77.06
Over 3 years 696,186.62 2.00
Total 34,764,381.68 100.00 48,445,976.86 100.00
Reasons for overdue settlement of prepayments with significant amounts aged more than 1 year:
Item Balance Reasons for no settlement
Not delivered due to ongoing
Company C 6,503,220.00 efforts for solving a technical
difficulty
(2). Top five closing balances of prepayments categorized by receivers
√ Applicable□ N/A
Entity Closing balance Proportion to the total closing balance of
prepayments (%)
Top 1 6,503,220.00 18.71
Top 2 6,135,245.74 17.65
Top 3 3,048,575.71 8.77
Top 4 2,014,000.00 5.79
Top 5 1,438,253.83 4.14
Sub-total 19,139,295.28 55.05
Other information
□ Applicable√ N/A
Presented by item
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Interest receivable
Dividend receivable 14,307,084.00 13,789,908.00
Other receivables 12,666,138.84 12,541,813.55
Total 26,973,222.84 26,331,721.55
Other information:
□ Applicable√ N/A
Interest receivable
(1). Categories of interest receivable
□ Applicable√ N/A
(2). Significant interests overdue
□ Applicable√ N/A
(3). Provision for bad debts
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
(1). Dividends receivable
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Project (or investee) Closing balance Opening balance
Dividend distribution from GDC Technology Limited
(BVI)
Total 14,307,084.00 13,789,908.00
(2). Dividends receivable with significant amounts aged more than 1 year
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Whether
impairment
Closing has occurred
Project (or investee) Aging Reason for non-recovery
balance and the basis
for its
judgment
Dividend distribution from There are matters not reached an
GDC Technology Limited 14,307,084.00 No
years and the payment has not yet
(BVI) been made
Total 14,307,084.00 - - -
(3). Provision for bad debts
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
Other receivables
(4). Disclosure by aging
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Aging Closing balance of carrying amount
Within 1 year
Including: Subitems within 1 year
Within 1 year 4,814,935.60
Sub-total of items within 1 year 4,814,935.60
Over 3 years 5,412,560.59
Total 13,365,417.52
(5). Categories by the nature of other receivables
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance of carrying Opening balance of carrying
Nature of receivables
amount amount
Deposits/margins/petty cash 11,046,676.68 11,162,127.62
Withholding 770,800.89 818,004.80
Temporary receivables 1,547,939.95 1,133,717.92
Compensation receivable 65,819.64
Total 13,365,417.52 13,179,669.98
(6). Provision for bad debts
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Stage I Stage II Stage III
Provision for bad Lifetime ECL
debts (without credit
in the future credit impairment)
impairment)
Balance as at January
Balance as at January
period
--transferred to Stage
II
--transferred to Stage
III
--reversed to Stage II
--reversed to Stage I
Provision 83,606.33 -22,184.08 61,422.25
Reversal
Write-off
Cancellation
Other changes
Balance as at June 30, 696,746.27 2,532.41 699,278.68
Description of significant changes in the balance of other receivables with changed provisions for losses
in the current period:
□ Applicable√ N/A
Basis for recognizing the amount of provision for bad debts and evaluating whether the credit risk of
financial instruments has been increased significantly in the current period:
□ Applicable√ N/A
(7). Provision for bad debts
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Changes for the current period
Opening Closing
Category Recovery or Write off or Other
balance Provision balance
reversal cancellation changes
Provision for
bad debts 637,856.43 61,422.25 699,278.68
made by group
Total 637,856.43 61,422.25 699,278.68
Including significant amounts recovered or reversed from the current provision for bad debts:
□ Applicable√ N/A
(8). Other receivables actually canceled in the current period
□ Applicable√ N/A
(9). Top five closing balances of other receivables categorized by debtors
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Proportion to
Provision for
the balance of
Nature of other Closing bad debts
Entity Aging other
receivables balance Closing
receivables
balance
(%)
Deposits/margins/petty
Top 1 3,574,618.00 Over 3 years 26.75 178,730.90
cash
Deposits/margins/petty
Top 2 1,310,675.20 Over 3 years 9.81 65,533.76
cash
Within 1 year; 1-2
Deposits/margins/petty
Top 3 900,000.00 years; 2-3 years; 6.73 45,000.00
cash
Over 3 years
Deposits/margins/petty
Top 4 683,180.24 Within 1 year 5.11 34,159.01
cash
Deposits/margins/petty Within 1 year; 2-3
Top 5 505,491.60 3.78 25,274.58
cash years
Total - 6,973,965.04 - 52.18 348,698.25
(10). Accounts receivable involving government grants
□ Applicable√ N/A
(11). Other receivables derecognized due to transfer of financial assets
□ Applicable√ N/A
(12). Assets and liabilities arising from transfer of other receivables and continued involvement
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
(1). Categories of inventories
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance
Provision for decline Provision for decline
in value of in value of
Item Carrying Carrying
inventories/impairment Book value inventories/impairment Book value
amount amount
of contract of contract
performance cost performance cost
Raw
materials
Work in
progress
Goods on
hand
Goods upon 15,058,879.28 3,310,312.17 11,748,567.11 31,157,150.48 1,901,108.14 29,256,042.34
delivery
Materials 4,168,659.09 183,081.13 3,985,577.96 9,397,672.25 246,897.56 9,150,774.69
for
consigned
processing
Contract
performance 3,200,650.71 705,862.34 2,494,788.37 2,740,313.16 2,740,313.16
cost
Total 831,569,317.92 73,850,313.50 757,719,004.42 924,291,920.80 58,651,959.01 865,639,961.79
(2). Provision for decline in value of inventories and impairment of contract performance cost
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Increase Decrease
Opening
Item Reversal or Closing balance
balance Provision Others Others
write-off
Raw materials 29,152,044.36 2,294,599.08 3,349.33 1,621,025.80 29,828,966.97
Work in
progress
Goods on hand 24,770,894.74 21,960,705.51 34,089.15 7,907,013.34 38,858,676.06
Goods upon
delivery
Materials for
consigned 246,897.56 -52,231.78 11,584.65 183,081.13
processing
Contract
performance 705,862.34 705,862.34
cost
Total 58,651,959.01 27,277,407.28 37,438.48 12,116,491.27 73,850,313.50
(3). Description of capitalized amount of borrowing costs included in the closing balance of
inventories
□ Applicable√ N/A
(4). Description of amortization of contract performance cost during the period
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
(1). Description of contract assets
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance
Item Carrying Provision for Carrying Provision for
Book value Book value
amount impairment amount impairment
Warranty
security 1,668,534.88 187,601.32 1,480,933.56 1,031,362.02 153,332.67 878,029.35
receivable
Goods
payment
Total 2,871,382.20 1,263,080.64 1,608,301.56 2,234,209.34 1,172,627.99 1,061,581.35
(2). Amount and reasons of major changes in the book value during the reporting period
□ Applicable√ N/A
(3). Description of provision for impairment made on contract assets during the period
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Reversal Write-
Item Provision Reason
off/cancellation
Provision made by 90,452.65
group
Total 90,452.65 /
If the bad debt provision is made according to the general model of ECL, please refer to the disclosure
of other receivables:
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
□ Applicable√ N/A
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Debt investments due within 1 year
Other debt investments due within 1
year
Long-term receivables due within 1
year
Total 28,306,652.31 13,431,554.82
Debt investments and other debt investments with significant amounts at the end of the period:
□ Applicable√ N/A
Other information:
None
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Input VAT to be deducted 90,522,705.12 96,670,912.86
Prepaid enterprise income tax 4,367,773.15 6,101,724.28
Cost of returned goods receivable 1,065,708.83 3,729,974.65
Total 95,956,187.10 106,502,611.79
Other information:
None
(1). Description of debt investments
□ Applicable√ N/A
(2). Debt investments with significant amounts at the end of the period
□ Applicable√ N/A
(3). Description of provision for impairment
□ Applicable√ N/A
(1). Description of other debt investments
□ Applicable√ N/A
(2). Other debt investments with significant amounts at the end of the period
□ Applicable√ N/A
(3). Description of provision for impairment
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
(1) Description of long-term receivables
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance Range
of
Item Carrying Provision for Carrying Provision for
Book value Book value discount
amount bad debts amount bad debts
rate
Installment 4.30%-
payment 4.65%
Including:
Financing 4.30%-
-730,427.69 -730,427.69 -415,458.66 -415,458.66
income not 4.65%
realized
Total 23,718,028.67 1,519,399.48 22,198,629.19 14,358,245.82 2,834,052.02 11,524,193.80 /
(2) Provision for bad debts
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Stage I Stage II Stage III
Provision for bad Lifetime ECL
debts (without credit
the future credit impairment)
impairment)
Balance as at January
Balance as at January
period
--transferred to Stage
II
--transferred to Stage
III
--reversed to Stage II
--reversed to Stage I
Provision 723,105.21 723,105.21
Reversal
Write-off
Cancellation
Other changes -2,037,757.75
Balance as at June
Description of significant changes in the balance of long-term receivables with changed provisions for
losses in the current period:
√ Applicable□ N/A
“Other changes” indicate the amount of the provision for bad debts that was transferred to long-term
receivables due within 1 year.
Basis for recognizing the amount of provision for bad debts and evaluating whether the credit risk of
financial instruments has been increased significantly in the current period:
□ Applicable√ N/A
(3) Long-term receivables derecognized due to transfer of financial assets
□ Applicable√ N/A
(4) Assets and liabilities arising from transfer of long-term receivables and continued
involvement
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Changes for the current period
Closi
Adju
Invest ng
stme
Decr ment Declar balan
Openi nt in Other Provis Closin
Additi ease profit ed ce of
Investe ng other equit ion g
onal d or loss cash Other provis
e balan comp y for balanc
invest inves under divide s ion
ce rehen chan impair e
ment tmen equity nds or for
sive ges ment
t metho profits impai
inco
d rment
me
I. Joint
ventur
e
Sub-
total
II.
Associ
ates
GDC
Techn - -
ology 8,071, 4,176
Limite 814.7 ,328.
d 5 87
(BVI)
Sub- - -
total 8,071, 4,176
- -
Total 94,91 372.1 23,14
Other information
“Others” under “Changes for the current period” was the amount from the change in foreign currency
exchange gain or loss.
(1). Description of other equity instrument investments
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Shen Zhen Timewaying Technology 7,075,419.38 7,075,419.38
Co., Ltd.
Shenzhen Bevix Technology Co., Ltd.
Total 7,075,419.38 7,075,419.38
(2). Description of equity investments not held for trading
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Reasons for
Reasons for
Dividends Amounts to designating
transferring
income retained as financial
to retained
recognize Accumulate Accumulate earnings from assets at fair
Item earnings from
d for the d gains d losses other value through
other
current comprehensiv other
comprehensiv
period e income comprehensiv
e income
e income
Shen Zhen Subject to the
Timewayin management’
g s intention of
Technolog holding
y Co., Ltd.
Shenzhen Subject to the
Bevix management’
Technolog s intention of
y Co., Ltd. holding
Other information:
√ Applicable□ N/A
The Company’s equity investments in Shen Zhen Timewaying Technology Co., Ltd., and Shenzhen
Bevix Technology Co., Ltd. are mainly for promoting future business cooperation rather than making
transactions, hence they are designated as investments in equity instruments at fair value through other
comprehensive income.
The cost of Shenzhen Bevix Technology Co., Ltd. is RMB 4,900,000.00, and the fair value change is -
RMB 4,900,000.00.
□ Applicable√ N/A
Measurement mode of investment properties
N/A
Presented by item
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Fixed assets 379,962,412.96 427,539,718.53
Disposal of fixed assets
Total 379,962,412.96 427,539,718.53
Other information:
None
Fixed assets
(1). Description of fixed assets
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Electronic
Machinery and Transportatio Operating leased
Item equipment and Total
equipment n equipment equipment
others
I. Original book
value:
balance
(1)
Purchase
(2)
Transfer from
construction in
progress
(3)
Transfer from 334,565.82 72,569.90 407,135.72
inventories
(4)
Exchange rate 183,060.38 114,355.64 297,416.02
changes
Decrease
(1)
Disposal or 2,851,486.44 454,730.00 269,230.77 3,575,447.21
retirement
(2)
Transfer to 257,899.67 16,220,870.35 16,478,770.02
inventories
balance
II. Accumulated
depreciation
balance
(1)
Provision
(2) 98,547.49 77,943.83 176,491.32
Exchange rate
changes
Decrease
(1)
Disposal or 2,621,874.58 409,719.07 217,229.08 3,248,822.73
retirement
(2) 95,610.30 10,321,749.75 10,417,360.05
Transfer to
inventories
balance
III. Provision
for impairment
balance
(1)
Provision
Decrease
(1)
Disposal or 8,795.77 8,795.77
retirement
(2) 64,313.34 64,313.34
Transfer to
inventories
balance
IV. Book value
book value
book value
(2). Temporarily idle fixed assets
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Original book Accumulated Provision for
Item Book value Remark
value depreciation impairment
Operating
leased 45,485,926.77 28,123,113.06 2,516,133.64 14,846,680.07
equipment
(3). Fixed assets acquired under finance lease
□ Applicable√ N/A
(4). Fixed assets leased out under operating lease
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance of book value
Operating leased equipment 258,235,787.35
(5). Fixed assets of which certificates of title have not been obtained
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
Disposal of fixed assets
□ Applicable√ N/A
Presented by item
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Construction in progress 314,382,210.87 278,978,057.73
Materials for construction
Total 314,382,210.87 278,978,057.73
Other information:
None
Construction in progress
(1). Description of construction in progress
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance
Provision Provision
Item Carrying Carrying
for Book value for Book value
amount amount
impairment impairment
Headquarter
buildings
Assets to be
leased
Decoration
construction
Total 314,382,210.87 314,382,210.87 278,978,057.73 278,978,057.73
(2). Changes in significant constructions in progress for the current period
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Interest
Amount
Amount Amount of Including: capitaliza
injected as a
Budget Opening transferred Other Closing Construction accumulated Capitalized tion rate Source
Item Increase proportion of
amount balance to fixed decreases balance progress capitalized interest for for the of funds
budget
assets interest the period period
amount (%)
(%)
Headqu Self-
arter 534,635,200 270,837,599. 38,540,252. owned
buildin .00 21 98 capital
gs
Assets Self-
to be 6,266,605.31 5,710,569.43 6,972,816.06 5,004,358.68 owned
leased capital
Total 44,250,822.41 6,972,816.06 314,382,210.87 - - 8,011,931.43 3,015,800.64 - -
.00 52
(3). Provision for impairment losses for construction in progress in the current period
□ Applicable√ N/A
Other information
□ Applicable√ N/A
Materials for construction
□ Applicable√ N/A
(1). Productive biological assets measured at cost
□ Applicable√ N/A
(2). Productive biological assets measured at fair value
□ Applicable√ N/A
Other information
□ Applicable√ N/A
□ Applicable√ N/A
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Houses and buildings Total
I. Original book value
(1) Rents 9,013,018.21 9,013,018.21
(2) Other changes 39,925.01 39,925.01
(1) Disposal 763,530.71 763,530.71
II. Accumulated depreciation
(1) Provision 14,899,916.76 14,899,916.76
(2) Other changes 20,317.97 20,317.97
(1) Disposal 179,705.50 179,705.50
III. Provision for impairment
(1) Provision
(1) Disposal
IV. Book value
Other information:
None
(1). Description of intangible assets
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Land use rights Patents Software Total
I. Original book value
(1) Purchase 2,875,894.25 2,875,894.25
(2) Exchange
rate changes
(1) Disposal
II. Accumulated
amortization
(1) Provision 5,510,500.02 2,121,924.37 7,632,424.39
(2) Exchange
rate changes
(1) Disposal
III. Provision for
impairment
(1) Provision
(1) Disposal
IV. Book value
value
value
The proportion of intangible assets generated by the Company’s internal research and development to
the balance of intangible assets at the end of the period is 0%.
(2). Land use rights of which certificates of title have not been obtained
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
□ Applicable√ N/A
(1). Gross carrying amount of goodwill
□ Applicable√ N/A
(2). Impairment provision of goodwill
□ Applicable√ N/A
(3). Relevant information of groups of assets or combinations of groups of assets where the
goodwill is recognized
□ Applicable√ N/A
(4). Specify test procedure, key parameters of impairment of goodwill (such as increase rate at
the projection period, increase rate at the steady period, profit rate, discount rate, and
projection period upon the estimates of the presented value of future cash flow) as well as
recognition method for impairment loss
□ Applicable√ N/A
(5). Impacts on test of goodwill impairment
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Opening Closing
Item Increase Amortization Other decreases
balance balance
Decoration
construction
RTO gas for
the screen 16,513.74 38,532.20
project
Total 5,990,984.03 3,232,521.81 1,956,826.99 -18,799.02 7,285,477.87
Other information:
None
(1). Deferred tax assets that are not offset
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance
Deductible Deferred tax Deductible Deferred tax
Item
temporary assets temporary assets
differences differences
Provision for impairment
of assets
Unrealized profits for
insider transactions
Provisions 33,155,919.65 4,973,387.95 33,861,061.30 5,079,159.20
Share-based payment
expenses
Deferred income 2,657,700.76 398,655.11 5,651,422.25 847,713.34
Leases 894,583.85 135,455.56 848,471.94 128,229.81
Losses from changes in
fair values
Deductible losses 133,936,891.98 20,090,533.80 145,752,332.17 21,862,849.83
Total 544,905,395.31 81,740,639.73 613,192,273.02 91,985,632.38
(2). Deferred tax liabilities that are not offset
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance
Taxable Deferred tax Taxable Deferred tax
Item
temporary liabilities temporary liabilities
differences differences
Long-term receivables 24,429,108.67 3,664,366.30 15,031,309.08 2,254,696.36
Other current assets -
Cost of returned goods 46,685.41 7,002.81
receivable
Total 24,475,794.08 3,671,369.11 15,031,309.08 2,254,696.36
(3). Deferred tax assets and deferred tax liabilities that are presented at the net amount after
offset
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing set-off Closing balance Opening set-off Opening balance
amounts of of deferred tax amount of of deferred tax
Item
deferred tax assets or deferred tax assets or
assets and liabilities after assets and liabilities after
liabilities set-off liabilities set-off
Deferred tax assets 3,671,369.11 78,069,270.62 2,254,696.36 89,730,936.02
Deferred tax liabilities 3,671,369.11 2,254,696.36
(4). Details of unrecognized deferred tax assets
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Provision for impairment of assets 55,225,838.14 47,406,755.88
Unrealized profits for insider 33,624,043.48
transactions
Provisions 20,307,631.71 18,872,846.92
Deferred income 2,454,545.47 3,000,000.01
Share-based payment expenses 724,391.43 3,180,261.29
Leases 1,992,084.01 1,557,490.63
Profit distribution from partnership 15,991.72
enterprises
Changes in fair value of 4,900,000.00
investments in other equity 4,900,000.00
instruments
Deductible losses 541,984,302.47 322,268,687.11
Total 664,206,603.59 434,826,077.04
(5). Deductible losses, for which no deferred tax assets are recognized, will expire in the following
years
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Year Closing balance Opening balance Remark
No expiry date 134,922,677.52 105,965,004.73
Total 541,984,302.47 322,268,687.11 /
Other information:
□ Applicable√ N/A
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance
Provision Provision
Item Carrying Carrying
for Book value for Book value
amount amount
impairment impairment
Prepayment
for
purchase of 18,633,790.53 18,633,790.53 12,569,088.37 12,569,088.37
long-term
assets
Total 18,633,790.53 18,633,790.53 12,569,088.37 12,569,088.37
Other information:
None
(1). Categories of short-term borrowings
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Notes discount within the group 30,000,000.00
Guaranteed loans 69,500,000.00 39,500,000.00
Credit loans 60,000,000.00 60,000,000.00
Interest payable 104,426.40 89,634.03
Total 129,604,426.40 129,589,634.03
Description for categories of short-term borrowings:
None
(2). Short-term borrowings overdue but not yet repaid
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
□ Applicable√ N/A
□ Applicable√ N/A
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Category Closing balance Opening balance
Commercial acceptance
bills
Bank acceptance bills 80,254,013.57 201,299,388.57
Total 80,254,013.57 201,299,388.57
Total notes payable matured but not paid yet is RMB 0 at the end of the period.
(1). Presented by accounts payable
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Amounts payable for purchase 275,507,953.57 276,845,321.28
Total 275,507,953.57 276,845,321.28
(2). Accounts payable with significant amounts aged more than 1 year
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
(1). Presented by receipts in advance
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Advance payments of recharge
fees
Total 99,404,605.97 113,834,728.10
(2). Receipts in advance with significant amounts aged more than 1 year
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Reasons for not repaid or carried-
Item Closing balance
forward
Lease payments received in
Company D 8,291,234.83
advance
Total 8,291,234.83 /
Other information:
□ Applicable√ N/A
(1). Description of contract liabilities
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Goods payment 39,465,849.54 37,285,920.43
Total 39,465,849.54 37,285,920.43
(2). Amount and reasons of major changes in the book value during the reporting period
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
(1). Presented by employee benefits payable
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Opening balance Increase Decrease Closing balance
I. Short-term
benefits
II. Post-
employment
benefits-defined
contribution plan
III. Dismissal
benefits
IV. Other benefits
due within 1 year
Total 58,470,960.55 194,688,672.70 223,414,916.80 29,744,716.45
(2). Presented by short-term employee benefits
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Opening balance Increase Decrease Closing balance
I. Wages or salaries,
bonuses, allowances 57,630,572.03 161,249,944.24 189,946,770.35 28,933,745.92
and subsidies
II. Staff welfare 2,396,777.44 2,396,777.44
III. Social security
contributions
Including: Medical
insurance
Work injury
insurance
Maternity
insurance
IV. Housing funds 10,780,341.66 10,780,341.66
V. Union running
costs and employee 22,220.40 472,380.90 429,476.04 65,125.26
education costs
VI. Short-term paid
leaves
VII. Short-term
profit sharing plan
Total 57,760,642.14 180,487,550.87 209,126,826.77 29,121,366.24
(3). Presented by defined contribution plan
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Opening
Item Increase Decrease Closing balance
balance
insurance
contribution
Total 170,231.90 8,970,833.40 8,975,331.91 165,733.39
Other information:
□ Applicable√ N/A
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Value-added tax (VAT) 415,633.50 283,831.65
Enterprise income tax 3,423,409.78 1,329,891.54
Individual income tax 1,503,794.91 5,330,584.62
City maintenance and
construction tax
Education surcharges 181,807.01 200,014.57
Local education surcharges 118,333.33 133,343.03
Stamp duty 368,555.48 521,340.60
Annual franchise right tax 12,381.41 11,933.84
Urban land use tax 8,914.32 49.67
Others 39.95
Total 6,453,066.16 8,272,768.90
Other information:
None
Presented by item
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Interest payable
Dividend payable 797,774.22
Other payables 119,109,874.30 56,662,357.08
Total 119,907,648.52 56,662,357.08
Other information:
None
Interest payable
□ Applicable√ N/A
Dividends payable
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Dividends on ordinary shares 797,774.22
Total 797,774.22
Other description, including significant dividend payable with aging of over 1 year, and the reason of
non-payment shall be disclosed:
None
Other payables
(1). Other payables presented by nature
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Withholding 118,512.62 264,611.23
Deposits/margins 11,630,428.35 9,538,090.44
Withdrawals in advance 36,325,990.61 38,870,669.59
Temporary receipts payable 12,531,383.72 7,988,985.82
Amount of equity transfer
payable
Subscription payment for
restricted stocks
Total 119,109,874.30 56,662,357.08
(2). Other payables with significant amounts aged more than 1 year
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
□ Applicable√ N/A
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Long-term borrowings due 147,500,008.00
within 1 year
Lease liabilities due within 1 30,342,348.86
year
Long-term payables due within
Interest payable 146,727.76 189,460.51
Total 178,360,640.39 178,031,817.37
Other information:
None
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Rebates payable 6,375,935.11 25,168,744.15
Taxes to be written off 3,423,594.29 3,013,395.69
Refund 201,468.53
Total 9,799,529.40 28,383,608.37
Changes in short-term bonds payable:
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
(1). Categories of long-term borrowings
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Guaranteed loans and loans
against collateral
Guaranteed loans 281,980,000.00 255,299,986.00
Credit loans 109,000,000.00
Interest payable 524,648.75 514,779.75
Total 531,486,901.70 403,720,542.45
Description for categories of long-term borrowings:
None
Other description, including interest rate range:
□ Applicable√ N/A
(1). Bonds payable
□ Applicable√ N/A
(2). Changes in bonds payable (excluding other financial instruments such as preference shares,
perpetual bonds and others classified as financial liabilities)
□ Applicable√ N/A
(3). Description of converting terms and period of convertible corporate bonds
□ Applicable√ N/A
(4). Description of other financial instruments classified as financial liabilities
Basic information of other financial instruments including outstanding preferred shares and perpetual
bonds at the end of the period
□ Applicable√ N/A
Changes in financial instruments including outstanding preferred shares and perpetual bonds at the end
of the period
□ Applicable√ N/A
Description of other financial instruments classified as financial liabilities
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Unpaid lease payments 28,324,784.45 37,874,912.40
Less: Financing charges not
recognized
Total 27,260,832.49 34,319,284.23
Other information:
None
Presented by item
□ Applicable√ N/A
Long-term payables
□ Applicable√ N/A
Special payables
□ Applicable√ N/A
□ Applicable√ N/A
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Opening balance Closing balance Reason
Product quality Expenses for “three
warranty guarantees” services
Amounts payable for
goods returned
Pending litigation 14,356.13
Total 56,463,882.87 53,463,551.36 /
Other description, including significant assumptions and estimates relative to material provisions:
None
Description of deferred income
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Opening
Item Increase Decrease Closing balance Reason
balance
Government The relevant
grants related to 5,905,986.57 1,078,195.80 4,827,790.77 asset is within its
assets service life
Used for
compensation of
Government relevant costs,
grants related to 2,745,435.69 1,500,000.00 3,960,980.23 284,455.46 expenses, or
income losses in
subsequent
periods
Total 8,651,422.26 1,500,000.00 5,039,176.03 5,112,246.23 /
Other information:
√ Applicable□ N/A
Breakdown of government grants
Increased
Amount
government
Opening recognized in Closing Related to
Item grants for
balance current profit balance assets/income
the current
or loss
period
Definition Laser
Related to
Display Technology 2,905,986.56 532,741.26 2,373,245.30
assets
Engineering Research
Center
Industry support Related to
funds assets
R&D of key 1,000,000.00 1,000,000.00 Related to
technologies for ultra income
high-definition micro
laser projector optical
engine based on light-
emitting ceramic
devices
Trichromatic Laser
Display Complete
Related to
Equipment 2,412,101.15 500,000.00 2,912,101.15
income
Production
Demonstration Line
Research of
trichromatic laser Related to
light sources and income
LCoS optical engine
Sub-total 8,651,422.26 1,500,000.00 5,039,176.03 5,112,246.23
Government grants included in the current profit or loss are disclosed in VII.84 of Section X in details.
□ Applicable√ N/A
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Changes (+, -)
Issuance Capitalization
Opening balance Bonus Sub- Closing balance
of new of capital Others
shares total
shares reserve
Total
shares
Other information:
None
(1) Basic information of other financial instruments including outstanding preferred shares and
perpetual bonds at the end of the period
□ Applicable√ N/A
(2) Changes in financial instruments including outstanding preferred shares and perpetual bonds
at the end of the period
□ Applicable√ N/A
Changes of other equity instruments in the current period, reasons for such change and basis for related
accounting treatments:
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Opening balance Increase Decrease Closing balance
Capital premium (Share
premium)
Other capital reserve 166,872,312.73 20,442,747.19 187,315,059.92
Total 1,530,752,116.04 20,714,249.08 1,551,466,365.12
Other description, including changes in the current period and reasons for changes:
(1) The total expense of equity-settled share-based payments amounted to RMB 24,996,374.80, in which
RMB 21,649,969.88 was recognized in the capital reserve (other capital reserve) and RMB 3,346,404.92
was charged to the amount attributable to minority interests.
(2) With respect to the temporary difference by which the fair value at the end of period of restricted
shares granted by the Company in the current period is greater than the fair value at the grant date, the
Company recognized the decrease in deferred tax assets by RMB 1,349,420.12, the decrease in the
capital reserve (other capital reserve) by RMB 1,207,222.69, and the decrease in the minority interests
by RMB 142,197.43.
(3) The Company acquired minority interests by paying the consideration of RMB 19,734,000.00 for the
shares, and acquired shares in the fair value of the identifiable net assets in the amount of RMB
premium).
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Opening balance Increase Decrease Closing balance
Treasury shares 19,377,297.59 19,377,297.59
Total 19,377,297.59 19,377,297.59
Other description, including changes in the current period and reasons for changes:
None
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Amount for the current period
Less: Amount
Less: Amount
previously
previously
included in
included in Attributable to
Amount other Less: Attributable to
Opening other owners of the Closing
Item incurred for comprehensive Income minority
balance comprehensive parent balance
current period income and tax shareholders after
income and company after
before tax transferred to expenses tax
transferred to tax
retained
profit or loss
earnings for
for the period
the period
I. Other
comprehensive
income that cannot be
-4,900,000.00 -4,900,000.00
reclassified
subsequently to profit
or loss
Including: Changes
from remeasurement
of defined benefit
plans
Other
comprehensive
income that cannot be
reclassified to profit
or loss under the
equity method
Changes in fair
value of investments
-4,900,000.00 -4,900,000.00
in other equity
instruments
Changes in fair
value of enterprises’
own credit risks
II. Other
comprehensive
income that will be 10,636,897.41 5,158,805.71 6,714,283.50 -1,555,477.79 17,351,180.91
reclassified to profit
or loss
Including: Other
comprehensive
income that will be
-13,180,600.06 -4,176,328.87 -4,176,328.87 -17,356,928.93
reclassified to profit
or loss under the
equity method
Changes in fair
value of other debt
investments
Amount of
financial assets
reclassified to other
comprehensive
income
Provision for credit
impairment of other
debt investments
Reserve for cash
flow hedges
Exchange
differences on
translation of
financial statements
denominated in
foreign currencies
Total other
comprehensive 5,736,897.41 5,158,805.71 6,714,283.50 -1,555,477.79 12,451,180.91
income
Other description, including adjustments on transferring effective portion of cash flow hedges to amount upon initial recognition of the hedged item:
□ Applicable√ N/A
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Opening balance Increase Decrease Closing balance
Statutory surplus
reserve
Total 75,519,782.06 75,519,782.06
Surplus reserve description, including changes in the current period and reasons for changes:
None
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Current period Prior year
Retained profits at the end of prior period before
adjustment
Total adjusted undistributed profits at the beginning of the
period (Add: +; Less: -)
Retained profits at the beginning of the period after
adjustment
Add: Net profit attributable to owners of the parent
company for the period
Less: Appropriation to statutory surplus reserve 19,253,913.75
Appropriation to discretionary surplus reserve
Appropriation to general risk reserve
Declaration of dividends on ordinary shares 24,635,207.05 47,539,596.43
Conversion of ordinary shares’ dividends into share
capital
Retained profits at the end of the period 648,203,885.57 597,924,451.67
Details of adjustments to undistributed profits at the beginning of the period:
related new regulations, undistributed profits at the beginning of the period were affected by RMB 0.00.
accounting policies.
significant accounting errors.
scope of consolidation resulting from business combination involving entities under common control.
adjustments.
(1). Description of operating income and operating costs
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Amount for the current period Amount for the prior period
Item
Income Cost Income Cost
Main business 1,073,249,037.75 668,659,467.49 1,269,322,202.11 884,560,607.88
Other business
Total 1,073,249,037.75 668,659,467.49 1,269,322,202.11 884,560,607.88
(2). Description of incomes from contracts
□ Applicable√ N/A
(3). Description of performance obligations
□ Applicable√ N/A
(4). Description of allocation to remaining performance obligations
□ Applicable√ N/A
Other information:
Breakdown of revenue from contracts with customers by category:
Item Amount for the current period Amount for the prior period
Main business areas:
Domestic 704,902,664.35 982,431,749.79
Overseas 188,845,868.39 151,675,564.56
Sub-total 893,748,532.74 1,134,107,314.35
By product:
Laser optical engine 269,264,171.31 227,366,190.32
Complete laser projector 529,660,750.51 797,685,682.96
Others 94,823,610.92 109,055,441.07
Sub-total 893,748,532.74 1,134,107,314.35
Revenue recognition time:
Goods (transferred at a time
point)
Services (provided during a
specific period of time)
Sub-total 893,748,532.74 1,134,107,314.35
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Amount for the current period Amount for the prior period
City maintenance and 1,849,757.98 1,854,709.81
construction tax
Stamp duty 718,782.33 1,328,656.61
Education surcharges 810,475.02 837,797.56
Local education surcharges 540,316.68 596,844.97
Others 86,419.52 18,392.15
Total 4,005,751.53 4,636,401.10
Other information:
None
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Amount for the current Amount for the prior
Item
period period
Marketing fees 67,103,262.08 56,105,203.98
Employee benefits 44,813,421.97 38,321,847.96
After-sale repair expenses 8,783,249.44 7,794,363.57
Travel expenses 3,323,826.10 1,140,208.55
Advertising and business promotion
expenses
Business entertainment expenses 891,056.45 874,145.73
Other expenses 15,877,978.49 13,913,957.29
Total 143,399,660.02 120,302,361.36
Other information:
None
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Amount for the current Amount for the prior
period period
Employee benefits 34,743,913.52 36,480,928.08
Share-based payment expenses 25,008,586.26 44,301,483.42
Service fees 13,261,395.13 11,634,987.32
Depreciation and amortization expenses 6,559,184.36 7,367,554.34
Rent expense 2,699,984.57 2,149,163.28
Other expenses 4,423,159.98 4,081,725.92
Total 86,696,223.82 106,015,842.36
Other information:
None
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Amount for the current Amount for the prior
period period
Employee benefits 86,643,213.03 76,416,118.90
Material consumption expenses 11,968,242.66 13,749,893.95
Rent expense 2,027,319.05 2,724,452.14
Service fees 6,014,448.00 4,297,638.31
Depreciation and amortization expenses 7,408,217.43 4,958,080.99
Testing expenses 2,233,677.17 4,511,335.54
Patent fees 1,909,173.76 836,908.48
Other expenses 8,201,851.02 7,465,358.06
Total 126,406,142.12 114,959,786.37
Other information:
None
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Amount for the current Amount for the prior
period period
Interest expenses 7,061,642.05 12,510,421.43
Less: Interest income -15,604,073.30 -6,740,942.87
Exchange profit or loss -9,807,901.42 -10,026,339.12
Bank service charges 1,328,926.10 902,979.64
Total -17,021,406.56 -3,353,880.91
Other information:
None
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Amount for the current Amount for the prior
period period
Government grants related to assets 1,078,195.80 940,282.23
Government grants related to income 21,467,825.51 18,812,831.21
Refund of transaction fees for withholding
individual income taxes
Additional deduction of input VAT 620,900.93 1,448,552.63
Total 23,608,983.31 21,565,810.43
Other information:
Government grants recognized in other income in the current period are disclosed in VII.84 of Section X
in details.
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Amount for the current
Item Amount for the prior period
period
Long-term equity investment accounted for
-8,071,814.75 -5,951,760.87
using the equity method
Investment income from disposal of long-
-4,611,079.66
term equity investments
Investment income from held-for-trading
financial assets during the holding period
Investment income from disposal of held-
for-trading financial assets
Total -2,806,106.20 -4,567,473.71
Other information:
None
□ Applicable√ N/A
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Source of gains from changes in fair
Amount for the current period Amount for the prior period
values
Held-for-trading financial assets -1,634,000.00
Total -1,634,000.00
Other information:
None
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Amount for the current
Item Amount for the prior period
period
Bad debt losses -3,513,083.07 1,393,164.79
Total -3,513,083.07 1,393,164.79
Other information:
None
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Amount for the current Amount for the prior
Item
period period
I. Bad debt losses -90,452.65 -38,217.98
II. Decline in value of inventories -26,383,931.20 -19,378,228.52
III. Impairment losses of long-term equity
investments
IV. Impairment losses of investment properties
V. Impairment losses of fixed assets -1,833,685.55 -405,917.49
VI. Losses of contract performance cost -705,862.34
Total -29,013,931.74 -19,822,363.99
Other information:
None
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Amount for the current period Amount for the prior period
Gains from disposal of fixed
assets
Gains from disposal of right-of-
-3,133.47 17,106.28
use assets
Total 15,262.15 17,213.16
Other information:
□ Applicable√ N/A
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Amount included in
Amount for the Amount for the
Item non-recurring profit or
current period prior period
loss for the period
Total gains from disposal of non-
current assets
Including: Gains from disposal
of fixed assets
Government grants 9,000,000.00 9,000,000.00
Amounts not required for
payment
Others 179,559.37 159,923.71 179,559.37
Total 9,424,347.83 167,888.31 9,424,347.83
Other information:
□ Applicable√ N/A
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Amount included in
Amount for the Amount for the prior
Item non-recurring profit or
current period period
loss for the period
Total losses from disposal of
non-current assets
Including: Losses from
disposal of fixed assets
External donations 1,011,354.98
Penalties and overdue fines 27,463.52 141,821.94 27,463.52
Others 370,921.08 5,197.11 370,921.08
Total 641,261.92 1,511,909.47 641,261.92
Other information:
None
(1) Statement of income tax expense
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Amount for the current period Amount for the prior period
Income tax expense in the current
period
Deferred income tax expenses 10,312,245.27 3,580,694.17
Total 18,649,943.64 19,269,471.17
(2) Reconciliation of income tax expenses to the accounting profit
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Amount for the current
period
Total profit 58,177,409.69
Income tax expense calculated based on statutory/applicable tax rate 8,726,611.46
Effect of different tax rates of subsidiaries operating in other jurisdictions -8,719,094.86
Effect of income tax for the period before adjustment -536,497.80
Effect of non-taxable income -42,425.30
Effect of non-deductible cost, expense and loss 237,744.26
Effect of utilizing deductible loss not recognized for deferred tax assets for
-351,326.89
prior period
Effect of deductible temporary difference or deductible loss not recognized
for deferred tax assets for the current period
Change in the balance of opening deferred tax assets caused by tax rate
adjustment
Effect of additional deduction of R&D expenses -10,821,251.40
Others 5,028,010.02
Income tax expenses 18,649,943.64
Other information:
□ Applicable√ N/A
√ Applicable□ N/A
Refer to VII. 57 of Section X for details.
(1). Other cash receipts relating to operating activities
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Amount for the current period Amount for the prior period
Interest income 15,203,804.27 6,586,011.83
Government grants 31,156,389.47 14,967,754.76
Recovery of security deposits 38,485,289.61 9,021,162.77
Non-operating income 167,768.72 78,226.30
Other transaction accounts 5,824,075.57 3,742,646.71
Total 90,837,327.64 34,395,802.37
Description of other cash receipts relating to operating activities:
None
(2). Other cash payments relating to operating activities
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Amount for the current period Amount for the prior period
Administrative expenses, selling
expenses, and R&D expenses paid in 133,812,521.03 135,601,238.70
cash
Non-operating expenses 369,426.97 138,934.57
Payment of security deposits 14,513,684.21 67,068,694.27
Service charges 777,510.79 757,068.27
Other transaction accounts 3,961,686.89 2,730,798.00
Total 153,434,829.89 206,296,733.81
Description of other cash payments relating to operating activities:
None
(3). Other cash receipts relating to investing activities
□ Applicable√ N/A
(4). Other cash payments relating to operating activities
□ Applicable√ N/A
(5). Other cash receipts relating to financing activities
□ Applicable√ N/A
(6). Other cash payments relating to financing activities
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Amount for the current period Amount for the prior period
Dividend payments 23,814.21
Actual lease payment 17,383,232.80 14,493,029.54
Share repurchase payment 3,211,260.13
Total 17,407,047.01 17,704,289.67
Description of other cash payments relating to financing activities:
None
(1) Supplementary information to the cash flow statement
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Amount for the Amount for the prior
Supplemental information
current period period
operating activities:
Net profit 39,527,466.05 18,539,942.30
Add: Provision for impairment of assets 29,013,931.74 19,822,363.99
Impairment losses of credit 3,513,083.07 -1,393,164.79
Depreciation of fixed assets, depletion of oil and gas
assets, depreciation of productive biological assets
Amortization of right-of-use assets 14,899,916.76 13,511,079.53
Amortization of intangible assets 2,121,924.37 1,599,345.03
Amortization of long-term prepaid expenses 1,956,826.99 3,680,782.65
Losses on disposal of fixed assets, intangible assets
and other long-term assets (gains are indicated by “- -15,262.15 -17,213.16
”)
Losses on disposal of fixed assets (gains are
indicated by “-”)
Losses on changes in fair values (gains are indicated
by “-”)
Financial expenses (income is indicated by “-”) 3,338,040.63 2,484,082.32
Investment losses (income is indicated by “-”) 2,806,106.20 4,567,473.71
Decrease in deferred tax assets (increase is indicated
by “-”)
Increase in deferred tax liabilities (decrease is
indicated by “-”)
Decrease in inventories (increase is indicated by “-”) 104,726,621.15 -33,033,292.19
Decrease in receivables from operating activities
(increase is indicated by “-”)
Increase in payables from operating activities
-200,944,159.73 -255,297,259.11
(decrease is indicated by “-”)
Others 25,090,249.13 44,160,417.64
Net cash flow from operating activities 114,738,832.13 -78,553,359.67
that do not involve cash receipts and payments:
Conversion of debt into capital
Convertible corporate bonds due within 1 year
Fixed assets acquired under finance leases
Closing balance of cash 1,228,232,134.57 951,480,989.53
Less: Opening balance of cash 1,254,582,403.12 891,195,166.73
Add: Closing balance of cash equivalents
Less: Opening balance of cash equivalents
Net increase in cash and cash equivalents -26,350,268.55 60,285,822.80
(2) Net cash paid to acquire subsidiaries for the current period
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Amount
Cash or cash equivalents paid in the period for business combination
occurring in the period
Shenzhen Qianhai Taishi Investment Partnership (LP) 11,840,400.00
Less: Cash and cash equivalents held by subsidiaries at the acquisition date 9,034.84
Shenzhen Qianhai Taishi Investment Partnership (LP) 9,034.84
Add: Cash or cash equivalents paid in the prior period for business
combination occurring in the period
Net cash paid for acquiring subsidiaries 11,831,365.16
Other information:
None
(3) Net cash receipts from disposal of subsidiaries for the current period
□ Applicable√ N/A
(4) Composition of cash and cash equivalents
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
I. Cash 1,228,232,134.57 1,254,582,403.12
Including: Cash on hand 3,346.05 5,479.42
Bank deposits that can be paid at any time 1,217,428,374.02 1,241,921,379.19
Other monetary funds that can be paid at any
time
Deposits in the central bank that can be used for
payments
Deposits made with other banks
Placements with banks
II. Cash equivalents
Including: Investments in debt securities due within
three months
III. Closing balance of cash and cash equivalents 1,228,232,134.57 1,254,582,403.12
Including: Restricted cash and cash equivalents of the
parent company or subsidiaries within the Group
Other information:
□ Applicable√ N/A
Describe matters such as the names and the adjusted amounts of the items included in “others” in respect
of adjustments to the closing balances of the prior year:
□ Applicable√ N/A
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance of book value Reason
Bank deposits 40,000,000.00 Term deposits
Accounts not handling for a
Bank deposits 5.49
long time
Other monetary funds 10,961,787.42 Security deposits
Intangible assets 275,524,999.80 Mortgage collateral
Total 326,486,792.71 /
Other information:
None
(1). Foreign currency monetary items
√ Applicable□ N/A
Unit: Yuan
Closing balance of Closing balance of RMB
Item Exchange rate
foreign currency equivalent
Monetary funds 297,486,092.24
Including: USD 41,026,579.84 7.2258 296,449,860.61
GBP 15,782.11 9.1432 144,298.99
HKD 297,205.06 0.9220 274,017.12
Euro 74,738.72 7.8771 588,724.37
Others 29,191.15
Accounts receivable 83,635,231.71
Including: USD 11,394,715.89 7.2258 82,335,938.08
Euro 161,644.37 7.8771 1,273,288.87
Others 26,004.76
Accounts payable 44,736,752.22
Including: USD 6,182,542.60 7.2258 44,673,816.31
JPY 1,256,356.25 0.0501 62,935.91
Other information:
None
(2). Description of overseas operating entities, including significant overseas operating entities, of
which the major operation place, functional currency and choosing basis as well as the reason
for change of functional currency should be disclosed
√ Applicable□ N/A
Major overseas Functional Basis of
Item
operation place currency choice
Common
Appotronics Hong Kong Limited Hong Kong USD
currency
Local
Appotronics USA, Inc. USA USD
currency
JoveAI Limited Common
Cayman Islands USD
currency
Local
JoveAI Innovation, Inc. USA USD
currency
Local
Formovie Technology Inc. USA USD
currency
Common
Formovie Limited Hong Kong USD
currency
Local
JoveAI Asia Company Limited Vietnam VND
currency
Local
Wemax LLC USA USD
currency
Hongkong Orange Juice Energy Technology Common
Hong Kong USD
Co., Limited currency
Local
Wemax Inc. USA USD
currency
Common
Appotronics International Limited Hong Kong USD
currency
□ Applicable√ N/A
(1). Basic information of government grants
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Amount recognized in
Category Amount Item presented
current profit or loss
Government grants related to assets Other income 1,078,195.80
Government grants related to income
and used for compensation of the
Company’s relevant costs or losses in
subsequent periods
Government grants related to income
Other income,
and used for compensation of the
Company’s relevant costs or losses that
income
have been incurred
Financial
Interest subsidies 6,084,300.00 6,084,300.00
expenses
(2). Refund of government grants
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Amount Reason
Trichromatic Display Complete
Equipment Production 992,951.47 Refund of remaining funds
Demonstration Line
Sub-total 992,951.47
Other information
（1） Government grants related to assets
Amortization
Opening Closing of items
Item deferred Increase Amortization deferred presented in
income income the current
period
Definition Laser
Display Technology 2,905,986.56 532,741.26 2,373,245.30 Other income
Engineering
Research Center
Industry support
funds
Sub-total 5,905,986.57 1,078,195.80 4,827,790.77
（2） Government grants related to income and used for compensation of the Company’s relevant
costs or losses in subsequent periods
Amortization
Opening Closing of items
Item deferred Increase Amortization deferred presented in
income income the current
period
R&D of key
technologies
for ultra high-
definition
micro laser
projector 1,000,000.00 1,000,000.00 Other income
optical engine
based on light-
emitting
ceramic
devices
Trichromatic
Laser Display
Complete
Equipment 2,412,101.15 500,000.00 2,912,101.15 Other income
Production
Demonstration
Line
Research of
trichromatic
laser light
sources and
LCoS optical
engine
Sub-total 2,745,435.69 1,500,000.00 3,960,980.23 284,455.46
（3） Government grants related to income and used for compensation of the Company’s relevant
costs or losses that have been incurred
Item
Item Amount Description
presented
Refunds of value-added taxes 4,431,505.74 Other income
Rewards for Employment
Stability and Subsidy for New
Employees
Refund of service charges for
“three withholdings”
Shenzhen one-off subsidy for
job expansion in 2022 (10th 3,000.00 Other income
batch)
Provisions of Guangdong for
Maternity Grants from
Maternity Insurance of
Shenzhen Social Security 12,459.49 Other income
Employees, Shenzhen Social
Bureau
Insurance Fund Administration
Rents for Talents of 370,000.00 Other income
Agreement of Nanshan District
Enterprises
Announcement of Shenzhen
Administration for Market
Regulation on 2022 Candidate
for Intellectual Property Rights Intellectual Property Rights (For
Protection), Shenzhen
Administration for Market
Regulation
Disclosure of Shenzhen Science
and Technology Innovation
Key enterprise research Commission on the Candidate
institute for laser display Subsidy Projects for Key
Enterprise Research Institutes for
Notice on Starting the Application
(Third Batch) of Projects for Sub-
Subsidy for copyright special Funds under the Special
registration Fund for Independent Innovation
Industry Development in Nanshan
District (2022)
Contribution
Notice of Shenzhen
Administration for Market
Subsidy for trademark Administration on Handling the
registration under 2022 Subsidy Collection Procedures for
Shenzhen intellectual property Verified Projects on Shenzhen
special fund Intellectual Property Special Fund
in 2022, Shenzhen Administration
for Market Regulation
subsidy for daily management Entities Qualified for Subsidy for
expenditures of post-doctor Daily Management Expenditures
stations in Shenzhen (Second Batch in
website of Shenzhen Human
Resources and Social Security
Bureau
Notice on the Reward Scheme of
Special Funds for Standard Field
in the Standard Field
Administration for Market
Regulation
Subsidy for Social Security
and Post for Employment of 62,731.52 Other income
the Poor Population
Special funds for the Projects for the Special Fund for
development of cultural the Development of the Cultural
industry (original research and Industry, Shenzhen City Bureau of
development projects) Culture, Radio, Television,
Tourism and Sports
Notice of Shenzhen Bureau of
Reward for Production Industry and Information
Expansion and Efficiency Technology on the Disclosure for
Improvement of Industrial 310,000.00 Other income the First Half of 2022 Proposed
Enterprises for the First Half Subsidy Scheme for Enterprises’
of 2022 Production Expansion and
Efficiency Improvement
Subsidy for Employment of
the Poor Population
Non-
Payment of industry support
funds
income
Subsidy under the 2023
Notice on Filing for Projects under
Nanshan District Scientific
Reward and Support Plan
Technology Breakthrough in 2023
(First Batch)
Announcement of Chongqing
Liangjiang New Area Operation
Rewards for Enterprises
Bureau on Candidate Enterprises
Qualified as Enterprises above 250,000.00 Other income
Qualified for Rewards under
Designated Size
Policies for Stabilizing the Macro
Economy (Second Batch)
Special Funds for Service 127,000.00 Other income Letter of Chongqing Commission
Trading of Commerce on Communication
about Review of International
Service Trading Projects under the
Special Development Fund
Sub-total 27,941,857.82
（4） Interest subsidies
Opening Closing Amortization of items
Item deferred Increase Amortization deferred presented in the
income income current period
Interest
subsidies
Sub-total 6,084,300.00 6,084,300.00
□ Applicable√ N/A
VIII. Changes in scope of consolidation
√ Applicable□ N/A
(1). Business combinations not involving enterprises under common control in the current
period
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Net
Incomes
profit of
Ratio of the
the
of acquiree
Time Basis for acquiree
acquir Method from the
point of Cost of determini from the
Name of ed of Acquisiti acquisiti
obtaini equity ng the acquisiti
acquiree equity obtaining on date on date
ng acquisition acquisitio on date
interes equity to the
equity n date to the
ts end of
end of
(%) the
the
period
period
Shenzhe
n
Qianhai Share
May
Taishi 19,734,000. Acquisiti May 15, Transfer
Investme 00 on 2023 Agreeme
nt nt
Partnersh
ip (LP)
Other information:
None
(2). Combination costs and goodwill
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Combination costs Shenzhen Qianhai Taishi Investment Partnership
(LP)
-- Cash 19,734,000.00
-- Fair value of non-cash assets
-- Fair value of debts issued or undertaken
-- Fair value of equity securities issued
-- Fair value of contingent consideration
-- Fair value at the acquisition date of the equity
interests held prior to the acquisition date
--Others
Total combination costs 19,734,000.00
Less: Acquired shares in the fair value of the
identifiable net assets
Differences between amounts of
goodwill/combination costs and the acquired shares -271,501.89
in the fair value of the identifiable net assets
Description of the method for determining the fair value of combination costs, and the contingent
considerations and changes thereof:
N/A
Main reasons of large-amount goodwill:
N/A
Other information:
During the reporting period, the Company acquired Shenzhen Qianhai Taishi Investment Partnership
(LP) through business combination not involving enterprises under common control. In essence, this
transaction is acquiring the minority interests held by the subsidiary CINEAPPO Laser Cinema
Technology (Beijing) Co., Ltd. The difference above is recognized in capital reserve - share premium.
(3). Identifiable assets and liabilities of the acquiree at the acquisition date
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Shenzhen Qianhai Taishi Investment Partnership (LP)
Fair value at the acquisition date Carrying amount at the acquisition
Assets: 20,005,501.89 date 4,759,034.84
Monetary funds 9,034.84 9,034.84
Long-term equity
investment
Net assets 20,005,501.89 4,759,034.84
Acquired net assets 20,005,501.89 4,759,034.84
Method for determining the fair value of identifiable assets and liabilities:
Long-term equity investments are determined according to the net assets and shareholding ratio of the
investee, and other assets and liabilities are determined according to the book values.
Contingent liabilities of the acquiree that are taken in the business combination:
None
Other information:
None
(4). Gains or losses from the equity interests held prior to the acquisition date that are
remeasured at fair value
Whether there are transactions for the purpose of implementing business combination via multiple
transactions and obtaining the control during the reporting period
□ Applicable√ N/A
(5). Description about the failure in reasonably determining the combination considerations or
the fair values of the identifiable assets and liabilities of the acquiree at the acquisition date or at
the end of the combination period
□ Applicable√ N/A
(6). Other information
□ Applicable√ N/A
□ Applicable√ N/A
□ Applicable√ N/A
Single disposal of investments in subsidiaries, i.e. the loss of control
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
Description of changes in the scope of consolidation for other reasons (e.g., new subsidiary
establishment, subsidiary liquidation, etc.) and the relevant information:
□ Applicable√ N/A
□ Applicable√ N/A
IX. Equity in other entities
(1). Composition of enterprise group
√ Applicable□ N/A
Principal Shareholding
Registration ratio (%)
Subsidiary name operation Business nature Acquisition method
place
place Direct Indirect
Business combination
Shenzhen Appotronics Laser Display
Shenzhen Shenzhen R&D and sales of laser display products 100.00 involving enterprises under
Technology Co., Ltd.
common control
Technical research and development of
Appotronics Technology (Changzhou) Co.,
Changzhou Changzhou projection equipment, screen and 100.00 Establishment
Ltd.
electronic computer
Shenzhen Appotronics Software Technology Technology development and sales of
Shenzhen Shenzhen 100.00 Establishment
Co., Ltd. computer software and hardware
Technical development, sales, and
Shenzhen Appotronics Display Device Co.,
Shenzhen Shenzhen technical services for display products; 100.00 Establishment
Ltd.
import and export business
Wemax LLC USA USA Sales of laser equipment 100.00 Establishment
Shenzhen Appotronics Xiaoming Development, consultation and transfer
Shenzhen Shenzhen 100.00 Establishment
Technology Co., Ltd. of laser display technology
Shenzhen Appotronics Home Line Software development related to
Shenzhen Shenzhen 100.00 Establishment
Technology Co., Ltd. semiconductor optoelectronic products
Shenzhen Appotronics Laser Technology Software development for
Shenzhen Shenzhen 100.00 Establishment
Co., Ltd. semiconductor optoelectronic devices
Business combination not
Tianjin Bonian Film Partnership (LP) Tianjin Tianjin No specific business conducted 99.00 1.00 involving enterprises under
common control
Beijing Orient Appotronics Technology Co., Technology promotion; computer
Beijing Beijing 59.00 Establishment
Ltd. systems, application software services
Qingda Appotronics (Xiamen) Technology Information technology consulting
Shenzhen Xiamen 51.00 Establishment
Co., Ltd. services
Formovie (Chongqing) Innovative Chongqing Chongqing Technology and software development 39.19 Establishment
Technology Co., Ltd.
Fengmi (Beijing) Technology Co., Ltd. Beijing Beijing Technology and software development 39.19 Establishment
Chongqing Guangbo Ecommerce Co., Ltd. Chongqing Chongqing No specific business conducted 39.19 Establishment
Chongqing Ewei Ecommerce Co., Ltd. Chongqing Chongqing No specific business conducted 39.19 Establishment
Shenzhen Orange Juice Energy Technology
Shenzhen Shenzhen Technology and software development 33.31 Establishment
Co., Ltd.
Hongkong Orange Juice Energy Technology Hong
Hong Kong Engaged in import and export business 33.31 Establishment
Co., Limited Kong
Wemax Inc. USA USA Engaged in import and export business 33.31 Establishment
Business combination not
Shenzhen Weiwoqi Trading Co., Ltd. Chongqing Shenzhen No specific business conducted 33.31 involving enterprises under
common control
Yaoyouguang (Chongqing) Technology Co.,
Chongqing Chongqing No specific business conducted 39.19 Establishment
Ltd.
Hong
Formovie Limited Hong Kong No specific business conducted 39.19 Establishment
Kong
Formovie Technology Inc. USA USA No specific business conducted 39.19 Establishment
Research and development, production, Business combination
CINEAPPO Laser Cinema Technology
Beijing Beijing technical services, sales and lease of 24.84 42.96 involving enterprises under
(Beijing) Co., Ltd.
laser cinema projection equipment common control
Production, research, and development
of semiconductor optoelectronic
Hong
Appotronics Hong Kong Limited Hong Kong products, sales and consulting, 100.00 Establishment
Kong
investment and video content value-
added services
Business combination
R&D, manufacture and sales of
Appotronics USA, Inc. USA USA 100.00 involving enterprises under
semiconductor optoelectronic products
common control
Cayman Cayman
JoveAI Limited No specific business conducted 64.29 Establishment
Islands Islands
JoveAI Innovation, Inc. USA USA R&D of laser display software system 64.29 Establishment
Technical research and development of
JoveAI Asia Company Limited Vietnam Vietnam projection equipment, screen and 64.29 Establishment
electronic computer
Appotronics International Limited Hong Hong Kong No specific business conducted 100.00 Establishment
Kong
Appotronics Intelligent Manufacturing
Shenzhen Shenzhen No specific business conducted 100.00 Establishment
(Shenzhen) Co., Ltd.
Business combination not
Shenzhen Qianhai Taishi Investment
Shenzhen Shenzhen No specific business conducted 70.00 30.00 involving enterprises under
Partnership (LP)
common control
Description of the difference between the proportion of shareholding and the proportion of voting rights in a subsidiary:
None
Basis for holding half of the voting rights or below but still controlling the investee, and holding over half voting rights but having no control over the investee:
Fengmi (Beijing) Technology Co., Ltd., Formovie Technology Inc., Formovie Limited, Chongqing Ewei Ecommerce Co., Ltd., Chongqing Guangbo Ecommerce
Co., Ltd., and Yaoyouguang (Chongqing) Technology Co., Ltd. are wholly-owned subsidiaries of Formovie (Chongqing) Innovative Technology Co., Ltd.;
Hongkong Orange Juice Energy Technology Co., Limited, Wemax Inc., and Weiwoqi Trading Co., Ltd. are wholly-owned subsidiaries of Shenzhen Orange Juice
Energy Technology Co., Ltd.; Shenzhen Orange Juice Energy Technology Co., Ltd. is a controlled subsidiary of Formovie (Chongqing) Innovative Technology Co.,
Ltd.
The Company and Shenzhen Fengye Investment Consulting Limited Partnership (Limited Partnership), a party acting in concert with the Company, hold a total of
Company. Since the voting rights are sufficient to exercise significant influence on the resolution of the general meeting of Formovie (Chongqing) Innovative
Technology Co., Ltd., the Company becomes the controlling shareholder of Formovie (Chongqing) Innovative Technology Co., Ltd.
Basis for controls over significant structured entities included in consolidation scope:
None
Basis to determine the company acts as the agent or the principal:
None
Other information:
None
(2). Significant non-wholly subsidiaries
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Profit or loss
Minority attributable to Dividends declared for
shareholdings ratio minority distribution to minority Closing balance of minority
Subsidiary name
(%) shareholders for shareholders in the interests
the current current period
period
Formovie (Chongqing) Innovative Technology Co., Ltd. 60.81 -49,013,347.97 -98,871,403.61
CINEAPPO Laser Cinema Technology (Beijing) Co., Ltd. 32.20 16,806,569.59 11,040,000.00 143,846,043.06
Description of the difference between the proportion of shareholding by minority shareholders and their proportion of voting rights in a subsidiary:
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
(3). Significant financial information of significant non-wholly subsidiaries
√ Applicable□ N/A
Unit: 0’000 Yuan Currency: RMB
Closing balance Opening balance
Subsidiary Non- Non- Non- Non-
Current Total Current Total Current Total Current Total
name current current current current
assets assets liabilities liabilities assets assets liabilities liabilities
assets liabilities assets liabilities
Formovie
(Chongqing)
Innovative 72,686.24 7,066.60 79,752.84 64,264.26 31,062.34 95,326.60 87,088.07 7,121.89 94,209.96 78,428.22 23,708.90 102,137.12
Technology
Co., Ltd.
CINEAPPO
Laser
Cinema
Technology
(Beijing)
Co., Ltd.
Amount for the current period Amount for the prior period
Total Cash flow from Total Cash flow from
Subsidiary name Operating Operating
Net profit comprehensive operating Net profit comprehensive operating
income income
income activities income activities
Formovie (Chongqing)
Innovative Technology 37,600.18 -7,921.68 -8,124.01 -5,369.48 60,958.84 -4,658.22 -4,666.57 -11,314.58
Co., Ltd.
CINEAPPO Laser 24,187.64 4,716.46 4,716.46 11,989.67 16,109.94 636.46 636.46 3,727.18
Cinema Technology
(Beijing) Co., Ltd.
Other information:
None
(4). Significant limitations on use of the group assets and payment of the group debts:
□ Applicable√ N/A
(5). Financial or other support provided to structured entities included in consolidated financial statements:
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
√ Applicable□ N/A
(1). Description of changes in the share in the owner’s equity of subsidiaries
√ Applicable□ N/A
Shareholding ratio prior
Subsidiary name Date of change Shareholding ratio after change
to change
CINEAPPO Laser Cinema Technology (Beijing) Co.,
May 15, 2023 63.20% 67.80%
Ltd.
(2). Effect of the transaction on the minority interests and the equity attributable to owners of the parent company
√ Applicable□ N/A
Unit: Yuan Currency: RMB
CINEAPPO Laser Cinema Technology (Beijing) Co., Ltd.
Acquisition cost/disposal consideration
-- Cash 19,734,000.00
-- Fair value of non-cash assets
Total acquisition cost/disposal consideration 19,734,000.00
Less: Share in net assets of subsidiaries calculated based on the
acquired/disposed shareholding ratio
Difference -271,501.89
Including: Adjustment to capital reserves -271,501.89
Adjustment to surplus reserves
Adjustment to retained profits
Other information
□ Applicable√ N/A
√ Applicable□ N/A
(1). Significant associates or joint ventures
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Shareholding ratio Accounting treatment
Principal
Registration (%) method for investments
Associates or joint ventures operation Business nature
place in joint ventures or
place Direct Indirect
associates
Asia and British R&D, production, and sales of digital
Accounting for under
GDC Technology Limited (BVI) North Virgin cinema servers and cinema management 44.00
equity method
America Islands system
Description of the difference between the proportion of shareholding and the proportion of voting rights in joint ventures or associates:
None
Basis that the Company owns less than 20% voting rights but may exercise major impact, or that the Company owns 20% or over voting rights but does not have
major impact:
None
(2). Major financial information of significant joint ventures
□ Applicable√ N/A
(3). Major financial information of significant associates
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance/Amount for the current Opening balance/Amount for the prior
period period
GDC Technology Limited (BVI) GDC Technology Limited (BVI)
Current assets 506,702,638.76 552,730,874.23
Non-current assets 36,851,993.25 52,568,431.68
Total assets 543,554,632.01 605,299,305.91
Current liabilities 202,634,110.90 240,966,036.37
Non-current liabilities 170,431,610.33 172,710,379.48
Total liabilities 373,065,721.23 413,676,415.85
Minority interests
Interests attributable to shareholders of the parent company 170,488,910.78 191,622,890.06
Share of net assets calculated by ownership percentage 75,015,120.74 84,314,071.63
Adjustment
--Goodwill 77,772,341.43 77,772,341.43
--Unrealized profits for insider transactions -517,974.63 -797,530.34
--Others
Book value of investment of associates 156,523,146.05 162,394,917.57
Fair values of equity investments in associates having publicly quoted
prices
Operating income 121,512,899.31 113,618,609.56
Net profit -18,317,067.87 -19,899,972.82
Net profit of discontinued operations
Other comprehensive income -9,491,656.52 -2,383,768.26
Total comprehensive income -27,808,724.38 -22,283,741.07
Dividends received from associates in the current year
Other information
None
(4). Summary financial information of insignificant joint ventures and associates
□ Applicable√ N/A
(5). Descriptions of significant limitations over the ability of joint ventures or associates to transfer funds to the Company
□ Applicable√ N/A
(6). Excessive loss of joint venture or associates
□ Applicable√ N/A
(7). Unrecognized commitment relating to investments in joint ventures
□ Applicable√ N/A
(8). Contingent liabilities relating to investments in joint ventures or associates
□ Applicable√ N/A
□ Applicable√ N/A
Description of structured entities that are not included in consolidated financial statements:
□ Applicable√ N/A
□ Applicable√ N/A
X. Risks associated with financial instruments
√ Applicable□ N/A
The Company’s risk management objectives are to achieve a proper balance between risks and yield, minimize the adverse impacts of risks on the Company’s
operation performance, and maximize the benefits of the shareholders and other stakeholders. Based on these risk management objectives, the Company’s basic risk
management strategy is to identify and analyze its exposure to various risks, establish an appropriate minimum tolerance to risk, implement risk management, and
monitor regularly and effectively these exposures to ensure the risks are monitored at a certain level.
The Company is exposed to various risks associated with financial instruments in its daily routines, primarily including credit risk, liquidity risk and market
risk. The management has reviewed and approved policies to manage these risks, summarized as below.
(I) Credit risk
Credit risk refers to the risk that a party of the financial instrument will default on its obligations resulting in financial loss to the counter-party.
(1) Evaluation of credit risk
The Company assesses at each balance sheet date whether the credit risk of the underlying financial instruments has increased significantly since initial
recognition. In determining whether the credit risk has increased significantly since initial recognition, the Company considers reasonable and supportable
information that is available without undue additional cost or effort, including quantitative and qualitative analysis based on historical data, ranking of external
credit risks and forward-looking information. The Company compares the risk of a default occurring on a financial instrument as at the balance sheet date with the
risk of a default occurring on the financial instrument as at the date of initial recognition based on individual financial instrument or a group of financial instruments
with similar credit risk characteristic, to determine the change of the risk of a default occurring on a financial instrument over the expected life.
The Company considers the credit risk of financial instruments has increased significantly when one or more of the following quantitative and qualitative
criteria are met:
as of the balance sheet date when comparing with that at initial recognition of the financial instruments;
the debtor’s ability to meet its debt obligations, and an actual or expected significant adverse change in the technological, market, economic, or legal environment of
the debtor that results in a significant decrease in the debtor’s ability to meet its debt obligations.
(2) Definition of defaulted or credit-impaired assets
A financial asset is defined as defaulted when the financial instrument meets one or more conditions stated as below, and the criterion of defining defaulted
asset is consistent with that of defining credit-impaired asset:
creditor would not otherwise consider.
Key parameters to measure ECL include the probability of default, loss given default and the exposure at default. The Company established models of the
probability of default, loss given default and the exposure at default on the basis of qualitative analysis on historical statistical data (such as counterparty ranking,
guarantee methods, collateral category, and repayment way) and forward-looking information.
VII 4, 5, 6, 8, 10 and 16 of Section X.
The Company’s credit risk is primarily from monetary funds and receivables. In order to control the risks associated with aforementioned items, the Company
has taken the following measures.
(1) Monetary funds
The credit risk of the Company is limited because the Company has deposited bank deposits and other monetary funds in banks with high credit ratings.
(2) Receivables
The Company regularly evaluates the creditworthiness of its customers with deals on credit, and selects to deal with approved and creditworthy customers
subject to the results of the credit assessment with monitoring the balance of its receivables, so as to ensure that the Company is not exposed to significant risk of
bad debt.
No collateral is required since the Company only deals with third parties that are approved and creditworthy. The concentrated credit risks are managed by
customers. As of June 30, 2023, the Company is exposed to certain concentration of credit risks, as the Company’s accounts receivable from top 5 customers have
accounted for 61.06% of the total balance of accounts receivable (December 31, 2022: 56.87%). The Company held no collateral or other credit ranking measures
for the balance of accounts receivable.
The maximum exposure to the Company is the book value of each financial asset in the balance sheet.
(II) Liquidity risk
Liquidity risk refers to the risk that the Company is in shortage of funds in performing obligations that are settled by delivering cash or another financial asset.
Liquidity risk may arise from an inability to sell a financial asset at fair value as soon as possible, a counterparty’s inability to pay its contractual liabilities, the
accelerated maturity of liabilities, or an inability to generate expected cash flows.
In order to control this risk, the Company balances the continuity and flexibility of financing by using various financing measures such as notes settlement and
bank loans comprehensively and adopting both long-term and short-term financing methods to optimize the financing structure. The Company has received credit
facilities from a number of commercial banks to satisfy its working capital requirements and capital expenditures.
Financial liabilities classified by remaining maturity dates
Closing balance
Item Undiscounted contract
Book value Within 1 year 1-3 years Over 3 years
amount
Bank borrowings 808,021,579.61 876,783,006.60 318,094,678.07 452,061,512.96 106,626,815.57
Notes payable 80,254,013.57 80,254,013.57 80,254,013.57
Accounts payable 275,507,953.57 275,507,953.57 275,507,953.57
Other payables 119,907,648.52 119,907,648.52 119,907,648.52
Lease liabilities 58,691,221.37 61,690,587.34 33,365,802.29 25,515,052.58 2,809,732.47
Sub-total 1,342,382,416.64 1,414,143,209.60 827,130,096.02 477,576,565.54 109,436,548.04
(Continued to above table)
Closing balance of the prior year
Item Undiscounted contract
Book value Within 1 year 1-3 years Over 3 years
amount
Bank borrowings 680,999,644.99 741,583,550.58 294,187,405.68 302,318,773.93 145,077,370.97
Notes payable 201,299,388.57 201,299,388.57 201,299,388.57
Accounts payable 276,845,321.28 276,845,321.28 276,845,321.28
Other payables 56,662,357.08 56,662,357.08 56,662,357.08
Closing balance of the prior year
Item Undiscounted contract
Book value Within 1 year 1-3 years Over 3 years
amount
Lease liabilities 64,661,633.09 68,598,988.87 30,342,348.86 38,256,640.01
Sub-total 1,280,468,345.01 1,344,989,606.38 859,336,821.47 340,575,413.94 145,077,370.97
(III) Market risk
Market risk refers to the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk
mainly includes interest rate risk and currency risk.
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The
Company is exposed to the risk of fair value interest rate due to financial instruments with a fixed interest rate and to the risk of cash value interest rate due to
financial instruments with a floating interest rate. The Company determines the proportion between the fixed-rate financial instruments and the floating-rate
financial instruments based on market conditions, and maintains appropriate portfolios of financial instruments through regular review and monitoring. The cash
flow interest rate risk exposed to the Company relates primarily to the Company’s floating-rate interest-bearing bank borrowings.
As at June 30, 2023, the principal of the Company’s floating-rate interest-bearing bank borrowings amounted to RMB 507 495,776.70 (December 31, 2022:
RMB 650,205,770.70). On the basis of the assumption that the interest rate has changed 10 basic points, where all other variables are held constant, it will bring no
material impacts on the Company’s total profits and shareholders’ equity.
Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The
Company’s exposure to the currency risk is primarily associated with the Company’s monetary assets and liabilities dominated in foreign currencies. If the monetary
assets and liabilities dominated in foreign currencies are imbalanced in a short time, the Company will purchase and sell foreign currencies at the market exchange
rate to keep the net risk exposure acceptable.
The closing balance of the Company’s monetary assets and liabilities dominated in foreign currencies are disclosed in VII.82 of Section X in details.
XI. Disclosure of fair value
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance of fair value
Item
Level 1 Level 2 Level 3 Total
I. Continuous fair value measurement
(I) Held-for-trading financial assets 534,877,200.00 30,000,000.00 564,877,200.00
(1) Investment in debt instrument
(2) Investment in equity instrument 12,880,000.00 30,000,000.00 42,880,000.00
(3) Structural deposits 521,997,200.00 521,997,200.00
loss
(1) Investment in debt instrument
(2) Investment in equity instrument
(II) Other debt investments
(III) Other equity instrument investments 7,075,419.38 7,075,419.38
(IV) Investment properties
appreciation
(V) Biological assets
Receivables financing 15,223,418.33 15,223,418.33
Total assets continuously measured at fair value 534,877,200.00 52,298,837.71 587,176,037.71
(VI) Held-for-trading financial liabilities
Including: Held-for-trading bonds issued
Derivative financial liabilities
Others
or loss
Total liabilities continuously measured at fair value
II. Non-continuous fair value measurement
(I) Held-for-sale assets
Total assets that are not continuously measured at fair value
Total liabilities that are not continuously measured at fair
value
□ Applicable√ N/A
measurement items
√ Applicable□ N/A
The equity instrument investment presented stocks subscribed on the New Third Board; considering the factors including the level of activity for trading of stocks
on the New Third Board, the Company classified stocks on the New Third Board as level 2 for the measurement of fair value, where the fair value is determined
according to the average closing price of the previous 20 trading days.
Structured deposits are valued using observable returns, with the sum of expected returns and principal determined as fair value when the expected yield is
observable, and the principal amount as fair value in other cases.
measurement items
√ Applicable□ N/A
The Company uses specific valuation techniques to determine fair value, and important parameters used include the net assets of the investee unit at the end of the
period.
measurement items
□ Applicable√ N/A
measurement items
□ Applicable√ N/A
□ Applicable√ N/A
□ Applicable√ N/A
□ Applicable√ N/A
XII. Related-party relationships and transactions
√ Applicable□ N/A
Unit: 0’000 Yuan Currency: RMB
Proportion of the Company’s Proportion of the Company’s
Registration Registered
Parent company Business nature shares held by the parent voting right held by the parent
place capital
company (%) company (%)
Shenzhen Appotronics R&D and sales of
Shenzhen 1,000.00 17.45 17.45
Holdings Limited semiconductor products
Description of the parent company of the Company
None
The ultimate controlling party of the Company is LI Yi.
Other information:
None
Refer to the Note for details about the subsidiaries of the Company
√ Applicable□ N/A
Subsidiaries of the Company are disclosed in descriptions in IX.1 of Section XI in details.
Refer to the note for details about the significant joint ventures or associates of the Company.
√ Applicable□ N/A
Refer to the description in Note IX.3 of Section X for details about the associates of the Company.
Details of other joint ventures or associates having related-party transactions and balances with the Company in the period or in prior periods:
□ Applicable√ N/A
√ Applicable□ N/A
Name of other related party Relationship between other related party and the Company
Beijing Donview Education Technology Co., Ltd. and its affiliates Minority shareholders holding more than 10% shares in the subsidiary and their affiliates
Shenzhen YLX Technology Development Co., Ltd. Controlled by the same de facto controller
Xiaomi Communications Co., Ltd. and its affiliates Minority shareholders holding more than 10% shares in the subsidiary and their affiliates
China Film Equipment Co., Ltd. and its affiliates Minority shareholders holding more than 10% shares in the subsidiary and their affiliates
WeCast and its affiliates The de facto controller resigned as a director of WeCast for less than one year
CINIONIC and its affiliates As of April 30 in the current period, the de facto controller resigned as a director of
Cinionic for less than one year
Other information
From May 1 in the current period, Cinionic and its affiliates are no longer related parties because it has been one year after the de facto controller resigned as a
director of Cinionic.
(1). Sales and purchase of goods, rendering and receipt of services
Purchase of goods/receipt of services
√ Applicable□ N/A
Unit: Yuan Currency: RMB
During the Whether the transaction
Transaction amounts
Related party Subject matter reporting amounts are exceeded (if Prior period
approved (if applicable)
period applicable)
Xiaomi Communications Co., Electronic
Ltd. and its affiliates components and 38,793,268.73 101,000,000.00 No 102,666,791.40
Service
China Film Equipment Co., Ltd. Power, water
and its affiliates cooling and 11,255,989.49 35,000,000.00 No 10,702,327.46
services
GDC and its affiliates Electronic
components
Beijing Donview Education
Maintenance
Technology Co., Ltd. and its 4,198.11 0.00 Yes 8,962.26
services
affiliates
Shenzhen YLX Technology Electronic
Development Co., Ltd. components
Sales of goods/rendering of services
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Amount for the Amount for the prior
Related party Subject matter
current period period
Xiaomi Communications Co., Ltd. and its affiliates Laser TV, smart mini projector 80,163,085.66 302,360,399.65
China Film Equipment Co., Ltd. and its affiliates Laser light source and cinema projection services 11,606,671.69 16,119,369.88
CINIONIC and its affiliates Cinema light source 30,228,389.84 50,666,582.80
Beijing Donview Education Technology Co., Ltd. and its
Education projector 2,573.26 1,533,749.83
affiliates
GDC and its affiliates Cinema projectors 294,140.46 7,493,997.70
WeCast and its affiliates Laser TV, smart mini projector 0.00 -7,681,578.96
Shenzhen YLX Technology Development Co., Ltd. Electronic components 3,685,678.75 950,681.50
Description of sales and purchase of goods, rendering and receipt of services
□ Applicable√ N/A
(2). Details of trust with related parties/subcontracting and trust management/contract-issuing
Details of trust/contracting where a group entity is the trustor/main contractor:
□ Applicable√ N/A
Description of trust/subcontracting with related parties
□ Applicable√ N/A
Details of trust/contracting where a group entity is the trustor/main contractor:
□ Applicable√ N/A
Description of management/contract-issuing with related parties
□ Applicable√ N/A
(3). Leases with related parties
The Company as the lessor:
□ Applicable√ N/A
The Company as the lessee:
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Variable lease
Simplified handling
payments not
of rental costs for Assumed interest
included in the
short-term leases and Paid rent expenses of lease Added right-of-use assets
measurement of
low-value asset leases liabilities
Type of leased lease liabilities (if
Lessor (if applicable)
assets applicable)
Amount Amount Amount Amount Amount Amount Amount
Amount for Amount for Amount for
for the for the for the for the for the for the for the
the current the current the prior
current prior current prior prior current prior
period period period
period period period period period period period
China Film
Equipment
Co., Ltd. Property lease 14,231.64 63,083.33 1,540,920.50 379,304.00 58,659.73 27,641.32 3,223,361.75
and its
affiliates
Description of leases with related parties
□ Applicable√ N/A
(4). Guarantees with related parties
The Company as a guarantor
□ Applicable√ N/A
The Company as a guaranteed party
□ Applicable√ N/A
Description of guarantees with related parties
□ Applicable√ N/A
(5). Borrowings/loans with related parties
□ Applicable√ N/A
(6). Assets transfer/debt restructuring with related parties
□ Applicable√ N/A
(7). Compensation for key management personnel
√ Applicable□ N/A
Unit: 0’000 Yuan Currency: RMB
Amount for the prior
Item Amount for the current period
period
Compensation for key management
personnel
(8). Other related-party transactions
□ Applicable√ N/A
(1). Amounts due from related parties
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance
Item Related party Carrying Provision for Carrying Provision for
amount bad debts amount bad debts
CINIONIC and its
affiliates
GDC Technology
Limited (BVI) and its 796,680.58 39,834.03 1,739,949.64 86,997.48
affiliates
WeCast and its affiliates 16,875,766.52 16,875,766.52 16,265,737.14 16,265,737.14
Accounts
Xiaomi Communications
receivable 12,880,063.84 644,003.19 22,671,178.87 1,133,558.94
Co., Ltd. and its affiliates
Shenzhen YLX
Technology Development 2,313,052.34 115,652.62
Co., Ltd.
China Film Equipment
Co., Ltd. and its affiliates
Sub-total 37,668,159.18 17,986,182.23 72,543,886.95 19,085,471.85
China Film Equipment
Co., Ltd. and its affiliates
Prepayments
Xiaomi Communications
Co., Ltd. and its affiliates
Sub-total 3,342,477.07 5,451,984.90
China Film Equipment
Co., Ltd. and its affiliates
Other
GDC Technology
receivables
Limited (BVI) and its 14,307,084.00 13,789,908.00
affiliates
Xiaomi Communications
Co., Ltd. and its affiliates
Sub-total 14,696,328.20 19,462.21 14,263,262.20 23,667.71
(2). Amounts due to related parties
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Related party Closing balance of Opening balance of
carrying amount carrying amount
Shenzhen YLX Technology
Development Co., Ltd.
Xiaomi Communications Co., Ltd.
Accounts payable 12,521,840.23
and its affiliates
China Film Equipment Co., Ltd. and
its affiliates
Sub-total 13,549,141.02 16,988,863.34
China Film Equipment Co., Ltd. and
Notes payable 18,842,525.54 22,554,693.11
its affiliates
Sub-total 18,842,525.54 22,554,693.11
China Film Equipment Co., Ltd. and
Advance from its affiliates
customers GDC Technology Limited (BVI) and
its affiliates
Sub-total 7,743,812.68 9,347,516.60
GDC Technology Limited (BVI) and
Contract its affiliates
liabilities China Film Equipment Co., Ltd. and
its affiliates
Sub-total 1,535,329.22 2,762,553.28
Beijing Donview Education
Technology Co., Ltd. and its affiliates
CINIONIC and its affiliates 507,874.72
Other payables GDC Technology Limited (BVI) and
its affiliates
China Film Equipment Co., Ltd. and
its affiliates
Sub-total 117,020.00 596,520.48
Xiaomi Communications Co., Ltd.
Other current and its affiliates
liabilities China Film Equipment Co., Ltd. and
its affiliates
Sub-total 362,076.59 3,380,614.01
□ Applicable√ N/A
□ Applicable√ N/A
XIII. Share-based payments
√ Applicable□ N/A
Unit: Share Currency: RMB
Item Company Chongqing
Formovie
Total number of the Company’s equity
instruments granted during the period
Total number of the Company’s equity
instruments executed during the period
Total number of the Company’s equity
instruments lapsed during the period
Grant date: April 22, 2021; grant
price: RMB 20.786/share; 9 months
Grant date: April 22, 2021; grant
price: RMB 18.286/share; 9 months
Grant date: April 22, 2021; grant
price: RMB 17.286/share; 9 months Grant date:
Grant date: December 7, 2021; grant December 31, 2021;
price: RMB 19.841/share; 17 months grant price: RMB
Grant date: December 7, 2021; grant 1/share; 36 months
Range of exercise prices and remaining price: RMB 22.841/share; 17 months Grant date: July 6,
contractual life of the Company’s share Grant date: March 11, 2022; grant 2022; grant price:
options outstanding at the end of the price: RMB 19.841/share; 17 months RMB 1/share; 36
period Grant date: March 11, 2022; grant months
price: RMB 22.841/share; 17 months Grant date: July 7,
Grant date: March 11, 2022; grant 2022; grant price:
price: RMB 18.286/share; 9 months RMB 3.42/share; 36
Grant date: May 25, 2022; grant months
price: RMB 15.341/share; 11 months
Grant date: July 22, 2022; grant
price: RMB 4.30/share; 25 months
Grant date: December 27, 2022; grant
price: RMB 15.341/share; 18 months
Range of exercise prices and remaining
contractual life of the Company’s other
None None
equity instruments outstanding at the
end of the period
Other information
None
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Chongqing
Item Company
Formovie
Evaluation of all
The method of determining the fair value of equity Option pricing
shareholder’s equity
instruments at the grant date model
interests
The basis of determining the number of equity
Actual grant amount Actual grant amount
instruments expected to be executed
Reasons for the significant difference between the
None None
estimate in the current period and that in the prior period
Amounts of equity-settled share-based payments
accumulated in capital reserve
Total expenses recognized arising from equity-settled
share-based payments
Other information
All restricted shares granted by the Company are Type II restricted shares, while the registered capital
granted by Foremovie was treated with reference to Type I restricted shares.
□ Applicable√ N/A
□ Applicable√ N/A
□ Applicable√ N/A
XIV. Commitments and contingencies
□ Applicable√ N/A
(1). Significant contingencies as of the balance sheet date
√ Applicable□ N/A
Pending litigation
As of June 30, 2023, there are 10 major civil litigation and arbitration cases where the Company acted as a plaintiff, specifically including:
Cause of Patents Amount involved
Case No. Plaintiff/Claimant Defendant/Respondent Progress
action involved
(1) Compensation
Defendant 1: Delta Electronics
(2019) Yue 03 amount decided in
Infringem (Shanghai) Co., Ltd.;
Min Chu No. 2943 the trial of the first
ent on Appotronics Defendant 2: Delta Video Display 20081006
(2021) Zui Gao Fa RMB 8.00 million instance: RMB
patent for Corporation Limited System (Wujiang) Limited; 5225.X
Zhi Min Zhong 271,399.40; (2)
invention Defendant 3: Shenzhen Super
No. 1582 Under trial of the
Network Technology Co., Ltd.
second instance
(1) Compensation
Defendant 1: Delta Electronics
(2019) Yue 03 amount decided in
Infringem (Shanghai) Co., Ltd.;
Min Chu No. 2944 the trial of the first
ent on Appotronics Defendant 2: Delta Video Display 20081006
(2021) Zui Gao Fa RMB 8.00 million instance: RMB
patent for Corporation Limited System (Wujiang) Limited; 5225.X
Zhi Min Zhong 501,399.40; (2)
invention Defendant 3: Shenzhen Super
No. 1718 Under trial of the
Network Technology Co., Ltd.
second instance
(1) Compensation
Defendant 1: Delta Electronics
(2019) Yue 03 amount decided in
Infringem (Shanghai) Co., Ltd.;
Min Chu No. 2946 the trial of the first
ent on Appotronics Defendant 2: Delta Video Display 20081006
(2022) Zui Gao Fa RMB 4.00 million instance: RMB
patent for Corporation Limited System (Wujiang) Limited; 5225.X
Zhi Min Zhong 151,399.40; (2)
invention Defendant 3: Shenzhen Super
No. 161 Under trial of the
Network Technology Co., Ltd.
second instance
(1) Compensation
Defendant 1: Delta Electronics
(2019) Yue 03 amount decided in
Infringem (Shanghai) Co., Ltd.;
Min Chu No. 2948 the trial of the first
ent on Appotronics Defendant 2: Delta Video Display 20081006
(2021) Zui Gao Fa RMB 4.00 million instance: RMB
patent for Corporation Limited System (Wujiang) Limited; 5225.X
Zhi Min Zhong 146,399.40; (2)
invention Defendant 3: Shenzhen Super
No. 1548 Under trial of the
Network Technology Co., Ltd.
second instance
(1) Compensation
Defendant 1: Delta Electronics
(2019) Yue 03 amount decided in
Infringem (Shanghai) Co., Ltd.;
Min Chu No. 2951 the trial of the first
ent on Appotronics Defendant 2: Delta Video Display 20081006
(2021) Zui Gao Fa RMB 4.00 million instance: RMB
patent for Corporation Limited System (Wujiang) Limited; 5225.X
Zhi Min Zhong 581,399.40; (2)
invention Defendant 3: Shenzhen Super
No. 1550 Under trial of the
Network Technology Co., Ltd.
second instance
Dispute
over
damages
caused by
(2021) Yue 73 maliciousl Appotronics Under trial of the
Defendant: Delta Electronics, Inc. - RMB 10.00 million
Min Chu No. 1860 y initiating Corporation Limited first instance
an
intellectua
l property
litigation
Although an
application for
execution had been
Dispute submitted to the
(2023) Yue 0305 over the Appotronics Huaxia Jingrui Lighting court, the execution
- RMB 0.7867 million
Zhi No. 4099 sales Corporation Limited Technology (Beijing) Co., Ltd. was suspended at
contract present because the
court found no
property for
execution.
Arbitratio
n
countercla
GDC Technology Limited (Cayman
im of
Appotronics Hong Islands)
dispute
Kong Limited GDC Technology Limited (British
Appotronics Virgin Islands)
implement
Corporation Limited De facto controller ZHANG
ation of
Wanneng and his management team
the
settlement
agreement
Dispute
CINEAPPO Laser
over a Foshan Jiafu Cinema Management Return 7 laser light The award has been
DSC20212921 Cinema Technology -
commerci Co., Ltd. source devices made and is pending
(Beijing) Co., Ltd.
al contract
Return 10 sets of laser
Dispute digital cinema projection Open trial
CINEAPPO Laser Hubei Mango Qin Han Cultural
(2022) Jing Zhong over a equipment and completed; pending
Cinema Technology Tourism Industry Development -
An No. 7825 commerci compensate RMB decision by the
(Beijing) Co., Ltd. Co., Ltd.
al contract 15,312.5 for liquidated arbitration tribunal
damages
As of June 30, 2023, there were 2 major civil litigation and arbitration cases where the Company was a defendant, specifically including:
Cause of Patents Amount
Case No. Plaintiff/Claimant Defendant/Respondent Progress
action involved involved
Cause of Patents Amount
Case No. Plaintiff/Claimant Defendant/Respondent Progress
action involved involved
(2019) Jing 73 Loss
The judgment of the first
Min Chu compensation
instance in January 2022
No.1275 Infringement Fengmi (Beijing) Technology Co., of RMB 15.00
ZL20161038 held that no
(2022) Zui Gao on patent for Delta Electronics, Inc. Ltd.; Appotronics Corporation million and
Fa Zhi Min invention Limited litigation costs
constituted; pending
Zhong No. of RMB 1.01
second trial
Arbitration
of dispute
GDC Technology Limited
over the
implementati - Accepted
on of the
(British Virgin Islands)
Settlement
Agreement
(2). Description shall also be provided even if the Company has no significant contingencies to be disclosed:
□ Applicable√ N/A
□ Applicable√ N/A
XV. Events after the balance sheet date
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Effects on the Reasons for not being
Item Content financial position and able to estimate such
operating results effects
From the end of the
reporting period to the
The Company registered the vesting of
disclosure date of this
a total of 3,299,000 qualified shares for
semiannual report,
the first vesting period in the initial
Issuance changes in the
grant of the restricted share incentive
of stocks Company’s shares
plan 2022. These shares became
and increased the diluted
available for trading on July 7, 2023,
bonds earnings per shares and
increasing the Company’s total shares
net assets per share
from 457,107,538 shares to
attributable to ordinary
shareholders of the
Company.
□ Applicable√ N/A
□ Applicable√ N/A
□ Applicable√ N/A
XVI. Other significant events
(1). Retrospective application
□ Applicable√ N/A
(2). Prospective application
□ Applicable√ N/A
√ Applicable□ N/A
The Company as the creditor:
Unit: Yuan Currency: RMB
Method of debt restructuring Book value of creditor’s right Profit or loss related to debt
restructuring
Asset for debt payment 791,852.00 0.00
(1). Exchange of non-monetary assets
□ Applicable√ N/A
(2). Other asset swap
□ Applicable√ N/A
□ Applicable√ N/A
□ Applicable√ N/A
(1). Determination basis and accounting policies of reporting segments
□ Applicable√ N/A
(2). Financial information of reporting segments
□ Applicable√ N/A
(3). If the Company has no reporting segments, or cannot disclose the total assets and liabilities of
reporting segments, specify the reasons
□ Applicable√ N/A
(4). Other information
□ Applicable√ N/A
□ Applicable√ N/A
□ Applicable√ N/A
XVII. Notes to key items in the parent company’s financial statements
(1). Disclosure by aging
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Aging Closing balance of carrying amount
Within 1 year
Including: Subitems within 1 year
Within 1 year 353,665,610.93
Sub-total of items within 1 year 353,665,610.93
Over 3 years 6,985,373.06
Total 649,603,473.71
(2). Disclosure by categories of provision for bad debts
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance
Carrying amount Provision for bad debts Carrying amount Provision for bad debts
Category Percentage Percentage
Percentage Book value Percentage Book value
Amount Amount of provision Amount Amount of provision
(%) (%)
(%) (%)
Provision for bad
debts made 786,700.00 0.12 786,700.00 100.00 0.00
individually
Including:
Provision for bad
debts made 786,700.00 0.12 786,700.00 100.00 0.00
individually
Provision for bad
debts made by 648,816,773.71 99.88 8,628,554.06 1.33 640,188,219.65 694,612,393.91 100.00 6,607,565.62 0.95 688,004,828.29
group
Including:
Group of aging 85,068,080.08 13.10 8,628,554.06 10.14 76,439,526.02 91,536,981.15 13.18 6,607,565.62 7.22 84,929,415.53
Group of
receivables from
related parties in 563,748,693.63 86.78 0.00 0.00 563,748,693.63 603,075,412.76 86.82 0.00 0.00 603,075,412.76
the scope of
consolidation
Total 649,603,473.71 100.00 9,415,254.06 1.45 640,188,219.65 694,612,393.91 100.00 6,607,565.62 0.95 688,004,828.29
Provision for bad debts made individually:
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance
Name Provision for bad Percentage of Reason for
Carrying amount
debts provision (%) provision
Expected to be
unrecoverable
Company B 786,700.00 786,700.00 100.00 because the
customer is in
hardship
Total 786,700.00 786,700.00 100.00 /
Explanation about provision for bad debts made individually:
□ Applicable√ N/A
Provision for bad debts made by group:
√ Applicable□ N/A
Item by group: Group of aging
Unit: Yuan Currency: RMB
Closing balance
Name Accounts Percentage of provision
Provision for bad debts
receivable (%)
Group of aging 85,068,080.08 8,628,554.06 10.14
Group of receivables from 563,748,693.63
related parties in the scope
of consolidation
Total 648,816,773.71 8,628,554.06 1.33
Recognition criterion to make the Provision for bad debts by group and explanation:
□ Applicable√ N/A
If the bad debt provision is made according to the general model of ECL, please refer to the disclosure of
other receivables:
□ Applicable√ N/A
(3). Provision for bad debts
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Changes for the current period
Opening Recovery Closing
Category Write off or Other
balance Provision or balance
cancellation changes
reversal
Provision
for bad
debts made
by group
Total 6,607,565.62 2,809,738.44 2,050.00 9,415,254.06
Including significant amounts recovered or reversed from the current provision for bad debts:
□ Applicable√ N/A
(4). Accounts receivable actually canceled in the current period
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Cancellation amount
Accounts receivable actually canceled 2,050.00
In which significant amounts canceled are described as below:
□ Applicable√ N/A
Description of accounts receivable cancellation:
□ Applicable√ N/A
(5). Top five closing balances of accounts receivable categorized by debtors
√ Applicable□ N/A
Proportion to the total Closing balance
Entity Closing balance closing balance of of provision for
accounts receivable (%) bad debts
Top 1 273,620,354.09 42.12
Top 2 154,115,537.28 23.72
Top 3 70,566,103.74 10.86
Top 4 31,356,518.89 4.83
Top 5 28,954,019.94 4.46
Total 558,612,533.94 85.99
(6). Accounts receivable derecognized due to transfer of financial assets
√ Applicable□ N/A
Unit: Yuan Currency:
RMB
Method of
Amount Gains or losses associated with
Item transferring financial
derecognized derecognition
assets
CCB E
Infocomm
Sub-total 3,000,000.00
(7). Assets and liabilities arising from transfer of accounts receivable and continued
involvement
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
Presented by item
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Interest receivable
Dividend receivable
Other receivables 14,803,374.55 7,556,623.71
Total 14,803,374.55 7,556,623.71
Other information:
□ Applicable√ N/A
Interest receivable
(1). Categories of interest receivable
□ Applicable√ N/A
(2). Significant interests overdue
□ Applicable√ N/A
(3). Provision for bad debts
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
(4). Dividends receivable
□ Applicable√ N/A
(5). Dividends receivable with significant amounts aged more than 1 year
□ Applicable√ N/A
(6). Provision for bad debts
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
Other receivables
(7). Disclosure by aging
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Aging Closing balance of carrying amount
Within 1 year
Including: Subitems within 1 year
Within 1 year 9,312,740.42
Sub-total of items within 1 year 9,312,740.42
Over 3 years 4,954,293.20
Total 15,160,646.94
(8). Categories by the nature
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance of carrying Opening balance of carrying
Nature of receivables
amount amount
Deposits/margins/petty cash 6,628,870.41 6,539,089.13
Receivables from related parties 8,015,199.08 1,153,906.23
in the scope of consolidation
Temporary receivables 516,577.45 134,793.84
Compensation receivable 65,819.64
Total 15,160,646.94 7,893,608.84
(9). Provision for bad debts
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Stage I Stage II Stage III
Provision for bad debts Lifetime ECL (with
ECL in the (without credit
credit impairment)
future impairment)
Balance as at January
Balance as at January
period
--transferred to Stage
II
--transferred to Stage
III
--reversed to Stage II
--reversed to Stage I
Provision 20,287.26 20,287.26
Reversal
Write-off
Cancellation
Other changes
Balance as at June 30,
Description of significant changes in the balance of other receivables with changed provisions for losses
in the current period:
□ Applicable√ N/A
Basis for recognizing the amount of provision for bad debts and evaluating whether the credit risk of
financial instruments has been increased significantly in the current period:
□ Applicable√ N/A
(10). Provision for bad debts
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Changes for the current period
Opening Closing
Category Recovery Write off or Other
balance Provision balance
or reversal cancellation changes
Provision for
bad debts
made by
group
Total 336,985.13 20,287.26 357,272.39
Including significant amounts recovered or reversed from the current provision for bad debts:
□ Applicable√ N/A
(11). Other receivables actually canceled in the current period
□ Applicable√ N/A
Description of other receivables cancellation:
□ Applicable√ N/A
(12). Top five closing balances of other receivables categorized by debtors
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Provision
Nature of other Closing Proportion to the balance for bad debts
Entity Aging
receivables balance of other receivables (%) Closing
balance
Receivables from
Within 1
Top 1 related parties in the 4,191,508.17 27.65
year
scope of consolidation
Receivables from
Within 1
Top 2 related parties in the 3,627,144.88 23.92
year
scope of consolidation
Deposits/margins/petty
Top 3 3,574,618.00 Over 3 years 23.58 178,730.90
cash
Deposits/margins/petty
Top 4 1,257,075.20 Over 3 years 8.29 62,853.76
cash
Deposits/margins/petty Within 1
Top 5 500,000.00 3.30 25,000.00
cash year
Total - 13,150,346.25 - 86.74 266,584.66
(13). Accounts receivable involving government grants
□ Applicable√ N/A
(14). Other receivables derecognized due to transfer of financial assets
□ Applicable√ N/A
(15). Assets and liabilities arising from transfer of other receivables and continued involvement
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance Opening balance
Item Provision for Provision for
Carrying amount Book value Carrying amount Book value
impairment impairment
Investments in subsidiaries 478,862,913.65 12,827,792.79 466,035,120.86 463,067,140.24 12,827,792.79 450,239,347.45
Investments in associates and joint
ventures
Total 478,862,913.65 12,827,792.79 466,035,120.86 463,067,140.24 12,827,792.79 450,239,347.45
(1) Investments in subsidiaries
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Closing balance of
Opening Provision for
Investee Increase Decrease Closing balance provision for
balance impairment
impairment
CINEAPPO Laser Cinema Technology
(Beijing) Co., Ltd.
Shenzhen Appotronics Software Technology
Co., Ltd.
Beijing Orient Appotronics Technology Co.,
Ltd.
Shenzhen Appotronics Xiaoming Technology
Co., Ltd.
Fengmi (Beijing) Technology Co., Ltd. 3,469,000.91 798.47 3,469,799.38
Qingda Appotronics (Xiamen) Technology
Co., Ltd.
Shenzhen Appotronics Laser Display
Technology Co., Ltd.
Appotronics Hong Kong Limited 305,476,042.87 571,280.54 306,047,323.41
JoveAI Innovation, Inc. 800,010.03 800,010.03
Appotronics Technology (Changzhou) Co., 2,000,000.00 2,000,000.00
Closing balance of
Opening Provision for
Investee Increase Decrease Closing balance provision for
balance impairment
impairment
Ltd.
Shenzhen Appotronics Display Device Co.,
Ltd.
Tianjin Bonian Film Partnership (LP) 26,954,120.20 26,954,120.20
Formovie (Chongqing) Innovative Technology
Co., Ltd.
Shenzhen Orange Juice Energy Technology
Co., Ltd.
Shenzhen Qianhai Taishi Investment
Partnership (LP)
Total 463,067,140.24 15,795,773.41 478,862,913.65 12,827,792.79
(2) Investments in associates and joint ventures
□ Applicable√ N/A
Other information:
□ Applicable√ N/A
(1). Description of operating income and operating costs
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Amount for the current period Amount for the prior period
Item
Income Cost Income Cost
Main business 542,956,800.34 368,571,473.83 649,645,354.34 432,684,792.22
Other business
Total 542,956,800.34 368,571,473.83 649,645,354.34 432,684,792.22
(2). Description of incomes from contracts
□ Applicable√ N/A
(3). Description of performance obligations
□ Applicable√ N/A
(4). Description of allocation to remaining performance obligations
□ Applicable√ N/A
Other information:
None
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Amount for the
Item Amount for the prior period
current period
Gains from long-term equity investment
accounted for using the cost method
Investment income from held-for-trading
financial assets during the holding period
Investment income from disposal of held-for-
trading financial assets
Total 12,717,708.55 5,884,922.38
Other information:
None
□ Applicable√ N/A
XVIII. Supplementary information
√ Applicable□ N/A
Unit: Yuan Currency: RMB
Item Amount Description
Gain or loss on disposal of non-current assets -216,132.87
Government grants recognized in profit or loss for the current period
(excluding government grants that are closely related to the business of
the Company and are provided in fixed amount or quantity continuously
according to the applicable polices and standards of the country)
Profit or loss on entrusted investments or assets management 5,198,708.55
Net profit or loss of subsidiaries from the beginning of the period up to
the business combination date recognized as a result of business 14,923,989.20
combination of enterprises involving enterprises under common control
Profit or loss on changes in the fair value of held-for-trading financial
assets, derivative financial assets, held-for-trading financial liabilities and
derivative financial liabilities and investment income on disposal of held-
for-trading financial assets, derivative financial assets, held-for-trading
financial liabilities, derivative financial liabilities and other debt
investments, other than those used in the effective hedging activities
relating to normal operating business
Reversal of impairment loss on accounts receivable and contract assets
tested for impairment individually
Other non-operating income and expenses 14,480.93
Other gains or losses meeting the definition of non-recurring profit or
loss
Less: Effect of income taxes 3,469,096.89
Effects attributable to minority interests (net of tax) 9,543,875.27
Total 40,685,801.33
It is required to specify the reason for defining items as non-recurring profit or loss items according to
Information Disclosure and Presentation Rules for Companies Making Public Offering of Securities No.
Information Disclosure and Presentation Rules for Companies Making Public Offering of Securities No.
□ Applicable√ N/A
√ Applicable□ N/A
Weighted average Earnings per share
Profit for the reporting period return on net Basic earnings Diluted earnings
assets (%) per share per share
Net profit attributable to ordinary
shareholders of the Company
Net profit after deduction of non-
recurring profits or losses attributable to 1.27 0.07 0.07
ordinary shareholders of the Company
standards
□ Applicable√ N/A
□ Applicable√ N/A
Chairman: LI Yi
Approval for submission by the Board of Directors: August 16, 2023
Revision information
□ Applicable√ N/A
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