光峰科技: 2021年半年度报告(英文版)

证券之星 2021-09-08 00:00:00
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Stock Code: 688007                                       Stock Short Name: Appotronics
            Appotronics Corporation Limited
     本报告为深圳光峰科技股份有限公司自愿披露的《2021 年半年度报告(英文版)》,
对本报告的中英文版本理解上发生歧义时,以中文版本为准。
Limited, and if the meaning of the translated version is different than the Chinese
version, the Chinese version will control.
                                          Important Note
I.   The Board of Directors, the Board of Supervisors, directors, supervisors and senior officers of
     the Company hereby warrant that the information contained in this Semiannual Report is true,
     accurate and complete and this Semiannual Report is free from any misrepresentation,
     misleading statement or material omission, and agree to assume joint and several liability for
     this Semiannual Report.
II. Alert of significant risks
     The Company has described in detail the risks that may exist in the production and operation of the
Company in this Report. Refer to “Section III Discussion and Analysis of the Management – V. Risk
factors” for the relevant risks. We draw the attention of investors to such risks in making investments.
III. All directors of the Company attended the meeting of the Board of Directors.
IV. This Semiannual Report has not been audited.
V.   BO Lianming, Principal of the Company, WANG Yingxia, Chief Accountant and LIU Jie,
     Person in Charge of the Accounting Body (Accounting Officer) hereby represent that: the
     financial statements contained in this Semiannual Report are true, accurate and complete.
VI. Profit distribution proposal or proposal for capitalization of capital reserve approved by the
     resolutions of the Board of Directors during the reporting period
None
VII. Is there any material event concerning any special arrangement of corporate governance?
□ Applicable√ N/A
VIII.    Risk statement regarding forward-looking statements
√ Applicable□ N/A
    The forward-looking statements contained herein regarding the future plans, development strategies
or other matters of the Company do not constitute any substantive covenant made by the Company to the
investors. The investors should be aware of the risk of investment.
IX. Is there any non-operational occupation of funds by the controlling shareholder or its affiliates?
No
X. Is there any external guarantee provided in contravention of the stipulated decision-making
     procedure?
No
XI. Are the majority of the directors unable to guarantee the truthfulness, accuracy and
     completeness of the Semiannual Report disclosed by the Company?
No
XII. Others
□ Applicable√ N/A
                                                  Table of Contents
                          Financial Statements with seals and signatures of Principal of the Company,
                          Chief Accountant and Person in charge of the Accounting Body (Chief
   List of Documents      Officer)
 Available for Inspection All original documents and announcements of the Company publicly
                          disclosed in the websites designated by the Company as of the reporting
                          period
                                    Section I Definitions
For purpose of this report, unless the context otherwise requires, the following terms shall have the
meanings indicated below:
                                                   Terms
    Company or
                      means Appotronics Corporation Limited
    Appotronics
 Appotronics Ltd. means Appotronics Corporation Ltd., the former name of the Company
    CINEAPPO          means CINEAPPO Laser Cinema Technology (Beijing) Co., Ltd.
      Fengmi          means collectively, Chongqing Fengmi and its subsidiary Beijing Fengmi
  Beijing Fengmi means Fengmi (Beijing) Technology Co., Ltd.
    Chongqing
                      means Fengmi (Chongqing) Innovative Technology Co., Ltd.
      Fengmi
 Appotronics HK means Appotronics Hong Kong Limited
    Appotronics
                      means Shenzhen Appotronics Daye Investment Partnership (LP)
       Daye
    Appotronics
                      means Shenzhen Appotronics Deye Consulting Partnership (LP)
       Deye
    Appotronics
                      means Shenzhen Appotronics Hongye Investment Partnership (LP)
      Hongye
     Blackpine        means Blackpine Investment Corp. Ltd.
     Jinleijing       means Shenzhen Jinleijing Investment Limited Partnership (LP)
    Appotronics
                      means Shenzhen Appotronics Chengye Consulting Partnership (LP)
     Chengye
     Dangbei          means Hangzhou Dangbei Network Technology Co., Ltd.
 Delta Electronics
                      means Delta Electronics, Inc.
      or Delta
    CINIONIC          means Cinionic Limited (previously known as Barco Cineappo Limited)
     GDC BVI          means GDC Technology Limited (British Virgin Islands)
  GDC Cayman          means GDC Technology Limited (Cayman Islands)
                                Feng Dynamic Page, dynamic page architecture developed independently
        FDP           means
                                by Appotronics
        DCI           means Digital Cinema Initiatives of the United States
        AR            means Augmented Reality
        DLP           means Digital Light Processing
        PCT           means Patent Cooperation Treaty
                  Section II Company Profile and Financial Highlights
I.      Company profile
            Chinese name                                  深圳光峰科技股份有限公司
         Short name in Chinese                                       光峰科技
             English name                               Appotronics Corporation Limited
         Short name in English                                      Appotronics
          Legal representative                                     BO Lianming
           Registered address
                                                       Street, Nanshan District, Shenzhen
                                       Building, South Area, Nanshan District, Shenzhen
                                       Nanshan District, Shenzhen
      Historic changes of registered
        address of the Company
                                       Design and Application Industrial Park, South Side of Chaguang
                                       Road, Xili Town, Nanshan District, Shenzhen
                                       Xuefu 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            Securities affairs representative
                   representative for information disclosure)
       Name                         YAN Li                                CHEN Yasha
      Address       63 Xuefu Road, Yuehai Street, Nanshan     Xuefu Road, Yuehai Street, Nanshan
                               District, Shenzhen                      District, Shenzhen
     Telephone                   0755-32950536                           0755-32950536
     Facsimile                   0755-86186299                           0755-86186299
       Email                   ir@appotronics.cn                       ir@appotronics.cn
III. Description of changes to the media for information disclosure and place for keeping
        semiannual reports
      Designated newspaper for information         China Securities Journal, Shanghai Securities News,
                    disclosure                             Securities Times, Securities Daily
      Websites for publishing the semiannual                         www.sse.com.cn
                      reports
     Place for keeping the semiannual reports                 Office of the Board of Directors
     Reference to changes during the reporting                              N/A
                      period
IV. Stock and depository receipts of the Company
(I) Stock of the Company
√ Applicable□ N/A
                                            Stock of the Company
                   Stock exchange and                                                    Former stock short
 Type of stock                         Stock short name               Stock code
                          board                                                               name
                     Shanghai Stock
   A-shares                              Appotronics                    688007                 N/A
                 Exchange, STAR Market
(II) Depository receipts of the Company
□ Applicable√ N/A
V. Other related information
□ Applicable√ N/A
VI. Main accounting data and financial highlights of the Company
(I) Main accounting data
                                                                             Unit: Yuan Currency: RMB
                                                  During the                              Change over
         Main accounting data                 reporting period         Prior period     the prior period
                                                 (Jan. - Jun.)                                (%)
 Operating income                              1,104,689,243.59        716,025,207.34              54.28
 Net profit attributable to shareholders
 of the listed company
 Net profit attributable to shareholders
 of the listed company after deduction            66,961,936.08         -30,232,495.13                 N/A
 of non-recurring profit or loss
 Net cash flow from operating activities         170,659,313.90          63,006,061.80              170.86
                                                                                            Changes at the
                                                                                              end of the
                                              At the end of the      At the end of the     reporting period
                                              reporting period           prior year        from the end of
                                                                                            the prior year
                                                                                                 (%)
 Net assets attributable to shareholders       2,324,476,282.79      2,091,599,671.75                 11.13
 of the listed company
 Total assets                                  3,651,135,378.47      3,226,204,326.69                 13.17
(II) Financial highlights
                                                 During the
                                                                                         Change over the
          Financial highlights                reporting period       Prior period
                                                                                         prior period (%)
                                                (Jan. - Jun.)
 Basic earnings per share (RMB/share)                      0.33                  0.03             1,000.00
 Diluted earnings per share (RMB/share)                    0.33                  0.03             1,000.00
 Basic earnings per share after deduction
 of non-recurring profit or loss                             0.15              -0.07                   N/A
 (RMB/share)
 Weighted average return on net assets                                                    +6.17 percentage
 (%)                                                                                                points
 Weighted average return on net assets
                                                                                          +4.57 percentage
 after deduction of non-recurring profit                     3.05              -1.52
                                                                                                    points
 or loss (%)
 Proportion of R&D investments to                            8.61             12.19       -3.58 percentage
 operating income (%)                                                                                points
Explanation about the main accounting data and financial highlights
√ Applicable□ N/A
due to the rapid growth of the household business revenue and the basic recovery of cinema business
revenue.
increased by 956.81% year on year; the basic earnings per share and diluted earnings per share increased
by 1000.00% and 1000.00%, respectively; and the net profit attributable to shareholders of the listed
company after deduction of non-recurring profit or loss increased by RMB 97.1944 million from
corresponding periods of last year, primarily due to the following:
     (1) the Company’s revenue increased by 54.28% year on year, the business structure optimized, the
overall gross margin increased by 8.49% year on year, the cinema business resumed its high gross margin,
and the gross margin of the large venue and business education increased; and
     (2) during the reporting period, the year-on-year increase in non-recurring profit or loss was primarily
due to the increase in the government grants recognized in the profit or loss for the current period and
recognition of the performance compensation of the participating company.
increase in revenue and in sales receipts.
VII. Differences in accounting data under Chinese Accounting Standards and Oversea Accounting
     Standards
□ Applicable√ N/A
VIII.      Items and amounts of non-recurring profit or loss
√ Applicable□ N/A
                                                                                  Unit: Yuan Currency: RMB
      Item of non-recurring profit or loss               Amount                   Note (if applicable)
 Gain or loss on disposal of non-current                  2,048,154.10
 assets
 Government grants recognized in profit or                71,808,211.32      VII. 84 of Section X
 loss for the current period (excluding
 government grants that are closely related
 to the business of the Company and are
 provided in fixed amount or quantity
 continuously according to the applicable
 polices and standards of the country)
 Profit or loss on entrusted investments or                   2,145,923.39
 assets management
 Net profit or loss of subsidiaries from the              11,386,216.47
 beginning of the period up to the business
 combination date recognized as a result of
 business combination of enterprises
 involving enterprises under common
 control
 Profit or loss on changes in the fair value of           38,175,900.00      VII. 70 of Section X
 held-for-trading financial assets, derivative
 financial assets, held-for-trading financial
 liabilities and derivative financial liabilities
 and investment income on disposal of held-
 for-trading financial assets, derivative
 financial assets, held-for-trading financial
 liabilities, derivative financial liabilities
 and other debt investments, other than
 those used in the effective hedging
 activities relating to normal operating
 business
 Other non-operating income and expenses                       501,309.74
 Other gains or losses meeting the                             571,819.78
 definition of non-recurring profit or loss
 Effect of minority interests                             -24,952,896.18
 Effect of income taxes                                   -17,232,653.91
 Total                                                     84,451,984.71
IX. Explanation about performance indicators not under the Accounting Standards for Business
     Enterprises
□ Applicable√ N/A
           Section III                      Discussion and Analysis of the Management
I.   Industry and main business during the reporting period
     As a leading laser display technology enterprise in the world, the Company mainly engages in the
research, development, production and sales of laser display core devices and complete equipment and
application of laser display technology to different scenarios based on ALPD® laser display technology
and architecture, and provides laser cinema projection services.
     Since its innovative invention of the ALPD® technology in 2007, the Company has created new laser
display architecture, built core intellectual properties, and mastered the designing and manufacturing of
core devices. It has upgraded the ALPD® technology continuously, and relying on the advanced ALPD®
technology, promoted the industrial applications of laser display, and gradually extended the application
of laser display from laser cinema projection and other high-end applications to large venue, business
education, household market and other display applications.
                           ALPD® laser display technology furthers the growth of display applications
                                                                                           Laser cinema projection device
                                                                                  C5 passed the DCI certification, making China
                                                                                  the fourth country in the world capable of
                                                                                  developing and manufacturing digital cinema
                                                                                  projectors that comply with DCI specifications
                                                Laser venue projector
           The   brightness    of    complete
           equipment suppresses the industry
                                                                                                   Laser TV
                                    Outdoor venue solutions                                        design
                                    Appearing on CCTV Spring Festival Gala,                        award
                                    and lighting up the night of the Forbidden
                                    City on Chinese Lantern Festival
                                                                                                Laser education projector
                Laser smart mini projector
                 Figure 1: ALPD® laser display technology and its application and development
     The Company engages in sales of products and provision of laser cinema projection services, etc. Its
diversified products may be classified into core laser display devices and complete laser display equipment.
Wherein the core devices can be further classified into laser light source (cinema light source and large
venue light source), laser TV light generator, laser mini projection light generator and flexible laser display
screen, and complete laser display equipment can be further classified into laser cinema projector, large
venue laser projector, laser video wall, laser education projector, laser TV and smart mini projector.
     The Company’s core devices, including the laser light source, light generator and flexible screen,
reflect various advantages and characteristics of ALPD® technology, such as high brightness, wide color
gamut, high contrast and low cost. The quality and performance of such products have received
recognition of downstream customers, which helps the Company establish its position as a core supplier
on the industry chain of laser display.
                              Figure 2: Laser light source and laser light generator
     On the basis of laser light source and light generators, the Company has further developed complete
equipment, which has been widely used in household and other commercial applications.
     In recent years, laser TV, smart mini projector and other household projector products have been
developing rapidly, due to the ever increasing acceptance of the new mode of movie watching by the
consumers, and rapid decrease of the costs and prices and better performance of products. The Company’s
household products have a leading market share, and the household business has grown rapidly.
                          Figure 3: Cinema 2, the New Product of Fengmi Laser TV
     - In the field of cinema projection, the Company has created a product portfolio of laser cinema light
sources covering multiple ranges of lumens from 5,000 lumens to 55,000 lumens, which are compatible
with many projection equipment brands on the market for wide application in large-, medium- and small-
sized cinemas. Thanks to the low operating power, the laser cinema light source reduces electricity
consumption by 50% compared with the xenon lamp; moreover, since no bulb replacement is required, it
helps cinemas to minimize their operating costs. As of the date when this Report is released, the Company
has over 23,000 laser cinema light sources installed throughout China.
     - In the field of large venue display market, Appotronics’s large venue projector series covers the
range of 5,000-60,000 lumens, hence suitable for outdoor lighting, cultural and tourism lighting, theme
exhibition halls, corporate exhibition rooms, theater performance, 4D dining hall, conference control, rail
transit, and other scenarios, and has such advantages as no damage to the landscape, convenient installation
and disassembly, and the repeated use in different places.
     - In the field of business education, the Company’s laser business education projector series covers
ultra short, short and long throws and a range of 3,300-6,000 lumens, hence broadly suitable for education,
business display and other scenarios. The Company has developed a series of solutions for smart
classrooms and business display, including laser smart all-in-one teaching device, laser synchronous
classroom solution, laser interconnected dual-board solution, high-definition high-brightness conference
system, etc.
     CINEAPPO, a controlled subsidiary of the Company, provides laser cinema projection services to
downstream cinema customers (“laser as a service”), and charges service fees according to the length of
use of light source by the cinemas (the fees are charged by the hour or a certain period of time), while the
cinemas do not need to purchase light source equipment, thereby effectively easing their capital pressure
and reducing their labor and maintenance costs.
     The laser display is emerging and in the early stage of rapid growth; the application of laser display
technology in household products is a wholly new creation with huge market potential.
     Currently, picture display technologies are mostly implemented by using DLP, 3LCD, and LCOS
display chips as the picture modulator, achieving greatly different actual display effects depending on the
light source. In 2007, the ALPD® technology created by Appotronics’s R&D team made a breakthrough
in the application of core devices and imaging solutions of laser display, hence becoming the mainstream
technical route for the laser projector industry and widely used in movie, TV, business education, and large
venue fields.
     In terms of core technologies, certain companies in the industry may face the problems of lack of
R&D capability and core technology, and reliance on supply chain for core patents and core devices,
rendering them unable to compete with leading domestic or international companies that have their
proprietary IP or core technologies and core devices.
     In terms of specific applications, the technical barriers for To C market are high efficiency, small size
and low cost, and the technical barriers for To B market are continuous upgrading of performance.
     As a new generation of display technology, the laser display technology has a wide range of market
applications by virtue of high brightness, long life, wide color gamut, and energy saving and environmental
protection. In addition to being used in the traditional display field, it can also be applied in other fields
such as aviation, automotive and AR, with an increasingly important position in the display field.
     At the beginning of the industrialization of laser display technology, as one of the leading companies
in the field of laser display, Appotronics has mastered core technologies. After multiple iterations, the
ALPD® technology has gained relatively solid technical advantages in terms of performance, cost,
efficiency and size. The Company has not only created the fundamental key architecture for laser phosphor
display technology, but also built a proprietary IP protection system through patent layout in China, the
United States, Japan, Europe and other countries.
     According to the Research Report on Chinese Laser Projector Market 2020 issued by AVC, blue laser
+ phosphor powder technology architecture, represented by ALPD®, is the mainstream light source
technical route for the laser display industry at present. On the principle of being open for cooperation and
striving for win-win development, Appotronics has become a leading supplier of core devices in the laser
display industry based on its intellectual property rights and core devices, hence driving the development
of the entire industry and ecology.
II. Core technologies and progress in R&D of technologies
     The Company has been committed in the breakthroughs, innovations, expansion of application
scenarios and industrialization of laser display technology, and created technology reserves and patent
portfolios covering the whole technology chain of laser display from key system architecture, core devices
to key algorithm. With the ALPD®4.0 technology matured and the ALPD® 5.0 and 6.0 technology under
development and trial operation at the same time, the Company constantly maintains its leading
advantages compared with followers and competitors in the industry. As a Leader Level Member of the
Laser Illuminated Projector Association (LIPA), the Company has participated in and led the preparation
of the international laser display standard.
     The Company has poured substantial R&D resources in micro- & nano- optical structure technology,
light source architecture, complete equipment structure, machine perception and the preparation and
processing of thin film materials. The big data, algorithm and design solutions accumulated by the
Company over the years will enable it to rapidly develop products and solutions meeting the requirements
of different application scenarios, such as cinema projection, home entertainment, outdoor exhibition, ultra
large-sized display, and immersive display.
     In terms of cutting-edge technologies, the ALPD 5.0 technology will make use of the characteristics
of laser with reference to the creation of content to achieve high dynamic range display and improve visual
experience. The ALPD 6.0 is planned to make breakthrough in the existing display architecture to further
reduce the cost of laser display systems. ALPD®5.0 principle prototype has been successfully developed,
and by now, the Company is conducting further optimization. This technology has the prospect of entering
the stage of product development.
     During the reporting period, the Company made the following achievements in technology and
product innovation:
     During the reporting period, the Company completed the development and mass production
introduction of a full range of products based on ALPD 4.0, including the laser cinema light source
platform covering 10,000-50,000 lumens and the compatible three-color, two-color and monochromatic
laser TV light generator platform, hence providing more abundant and more competitive solutions of core
devices for the cinema industry and the laser TV industry. Meanwhile, in terms of smart mini projectors,
the Company developed various laser mini projection light generators suitable for different product forms
and different performance parameters, which greatly upgrade the brightness and energy efficiency while
improving color effects. During the reporting period, the Company introduced many new customers
including Dangbei, and provided them with core devices of the laser mini projection light generator.
     The Company made further breakthroughs and innovations in flexible laser display screen and
successfully developed three products: (1) ultra short throw diaphragms for speckle reduction used in
three-color laser projectors, achieving speckle reduction contrast below 10%, taking the lead in the
industry; (2) ultra short throw diaphragms with high contract, with an opacity of more than 95%, superior
to 85% of competitive products in the industry, which can greatly reduce the effect of ambient light; (3)
high-gain direct projection anti-light screens with the smart mini projector, achieving the 2.5x high-gain
factor and the ambient light obscuring rate of 80%, which supports the projection effect of the projection
device to increase the brightness by 2.5 times, and achieves a viewing angle close to 180 degrees as
compared to projecting on a white wall.
     The Company developed high-, medium-, and low-end laser TV products to cater for different user
demands on the household market. Having the highest brightness of 4,000 lumens, covering the REC.709,
DCI, and REC.2020 color gamuts, and with the maximum color gamut area of 158% NTSC, its products
are at the highest level in the industry. During the reporting period, Fengmi as the subsidiary launched a
new laser TV product, Cinema 2, which has a 10% increase in screen brightness compared to the previous
generation, has a 4K resolution and can project 80-150 inches of super-large screens.
     In the business field, the Company newly developed S4 product with less than 10cm of a slim body
and a light weight of less than 9.2kg, can produce 5,000-6,000 lumens of brightness and 4K resolution,
and also present high-quality projection images in bright environment and project 300 inches of super-
large screen at largest. This product is cost-effective. Based on the compact modular body of S4 platform
and in conjunction with the one-button automatic stacking system, this product can achieve more
brightness, larger screen and more free application.
     As the first Chinese enterprise independently researching and developing 3DLP high-lumen large
venue projectors, during the reporting period, the Company launched the T series of high-brightness large
venue projectors adopting a high-efficiency liquid cooling system and 3DLP imaging technology to
achieve 33,000 lumens of high brightness. At present, this is the world’s smallest and lightest large venue
projector with the same brightness range. The multi-picture splicing and fusion system is embedded in it.
In addition, it has 120Hz refresh rate to support constant brightness mode, can be configured with more
than 6 motorized lenses and support 360-degree installation, easy to use.
     During the reporting period, the Company’s Feng OS system completed a total of 7 iterations,
achieving an extremely fast boot in 6 seconds. Currently, its 12 mass-produced household products are
equipped with this system, and complete FDP dynamic engine upgrade. During the reporting period, Feng
OS system completed the broadcast of large-scale programs such as the European Cup. At present, its
penetration rate of paid members takes the lead in the industry, and the Company has completed in-depth
processing of 20,000 film and television works and 20,000+ film and television characters in aggregate,
providing strong support for improving effect of large-screen display.
     The Company implemented an omnidirectional automatic correction algorithm, which is suitable for
a variety of models such as the projector Vogue Pro, and adds intelligent auxiliary functions such as
automatic obstacle avoidance and screen alignment to the Vogue Pro model. The Feng OS system adds
machine recommendation algorithms to more pages, making it easier for users to discover their
personalized preferences faster and more accurately.
List of intellectual property rights acquired during the reporting period
                                      Increase                                      Total
                       Applications (pcs)     Granted (pcs)         Applications (pcs)    Granted (pcs)
  Patent          for         79                   82                     1,397               684
  invention
  Patent for utility           46               23                 470                   413
  model
  Patent for design            10               10                 161                   147
  Software
  copyright
  Others                       77               73                 914                   725
         Total                 218             200                3,042                 2,068
Notes: 1. The “others” showed in the above table refers to the Company’s trademarks; 2. During the
reporting period, the Company filed 38 PCT international patent applications, totaling 193 valid PCT
international patent applications.
                                                                                           Unit: Yuan
                                  Current period           Previous period       Change (%)
 R&D investments expensed              95,128,483.66           87,295,450.75                8.97
 R&D investments capitalized                     0.00                    0.00               N/A
 Total R&D investments                 95,128,483.66           87,295,450.75                8.97
 Proportion     of       R&D                     8.61                  12.19    -3.58 percentage
 investments to operating                                                                 points
 income (%)
 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 of the great change in the proportion of R&D investments capitalized and explanation
about the rationality thereof
□ Applicable√ N/A
√ Applicable□ N/A
                                                                                                                                            Unit: Yuan
                                          Investment in                   Progress or
                        Estimated total                   Aggregate                                                 Technological         Application
 No.        Item                            the current                     interim              Goals
                          investment                      investment                                                    level              scenario
                                              period                        results
                                                                                        Development of laser
                                                                                        phosphor         display                       Through
                                                                                                                   The development
                                                                                        optical engine, high-                          transformation of
                                                                                                                   of key laser
       Key                                                                              performance                                    lab R&D results,
                                                                                                                   display
       Enterprise                                                                       fluorescent materials                          develop multiple
                                                                                                                   technology and
       Laboratory for                                                         Mass      and          fluorescent                       laser      display
       Laser Display                                                       production   components, portable                           terminal products,
                                                                                                                   laser phosphor
       in Guangdong                                                                     laser            display                       and promote the
                                                                                                                   technology takes
       Province                                                                         technology, and laser                          development of
                                                                                                                   the lead in the
                                                                                        display technology with                        the entire display
                                                                                                                   industry.
                                                                                        high contrast and high                         industry chain.
                                                                                        color reproduction.
                                                                                        Use            technical
                                                                                        advantage             of
                                                                                        ALPD®4.0 to achieve
                                                                        Some                                       Take the lead in
                                                                                        the mass production of
                                                                        products                                   the industry; the
                                                                                        light generators and                           Upgrading of light
                                                                        have                                       cost
                                                                                        cinema light source                            source for small-
       Light source                                                     completed                                  effectiveness,
                                                                                        with lower cost, higher                        sized       cinema
       and light                                                        mass                                       color      gamut,
       generator as                                                     production,                                light effect, and
                                                                                        brightness and smaller                         TV, laser mini
       core devices                                                     and new                                    other
                                                                                        size. Research and                             projector      and
                                                                        products                                   performance are
                                                                                        develop     the     next                       other fields.
                                                                        are being                                  greatly
                                                                                        generation of ALPD®
                                                                        updated                                    improved.
                                                                                        laser            display
                                                                                        technology with high
                                                                                        brightness and high
                                                                                   dynamic range at the
                                                                                   same time.
                                                                     Some
                                                                     products
                                                                     have                                     The proprietary
                                                                                   Research and develop a                        DCI-compliant
                                                                     completed                                DCI-compliant
                                                                                   low-cost and DCI-                             small      cinema
    Laser cinema                                                     mass                                     cinema projector
    projector                                                        production,                              in China that
                                                                                   projector that meets                          targets the high-
                                                                     and new                                  meets high-end
                                                                                   high-end home use.                            end home use.
                                                                     products                                 home use.
                                                                     are being
                                                                     updated
                                                                     Some          With a new generation
                                                                     products      of    light    generator
                                                                     have          technologies and the
                                                                     completed     independently
                                                                     mass          developed       FengOS     Take the lead in   4K      household
                                                                     production,   system and screen,         the industry.      laser TV.
                                                                     and new       achieve            great
                                                                     products      improvement in cost
                                                                     are being     effectiveness,     color
                                                                     updated       gamut and ease of use.
                                                                     Some
                                                                     products
                                                                     have
                                                                     completed     Provide         high-
    High-
                                                                     mass          performance and cost-      Take the lead in   Household mini
                                                                     production,   effective laser mini       the industry.      projector market.
    mini projector
                                                                     and new       projector
                                                                     products
                                                                     are being
                                                                     updated
    Other                                                            Some          The automatic stacking
                                                                                                              Take the lead in   High-end  large
                                                                                                              the industry.      venue, business
    equipment                                                        have          linear superposition of
    (large venue +                                                   completed     brightness and cost to                            education       and
    business                                                         mass          achieve     a    leading                          other fields.
    education)                                                       production,   technical advantage and
                                                                     and new       cost-effective
                                                                     products      advantage      on    the
                                                                     are being     market      when     the
                                                                     updated       product is applied to
                                                                                   high-lumen use scenes.
                                                                   Some
                                                                   products
                                                                   have
                                                                                   Reduce      costs    and    Take the lead in      With       existing
                                                                   completed
                                                                                   improve performance         the     industry,     display products,
                                                                   mass
                                                                   production,
                                                                                   flexible Fresnel anti-      products in the       in a variety of
                                                                   and new
                                                                                   light screen Fabulus.       field.                scenarios.
                                                                   products
                                                                   are being
                                                                   updated
                                                                                   This     project     will
                                                                                   research              the
                                                                                                               This project will
                                                                                   industrialization of the
                                                                                                               greatly promote
                                                                                   technology of RGB
                                                                                                               the      industrial   This project will
                                                                                   trichromatic laser with
    Trichromatic                                                                                               upgrading        of   establish        a
                                                                                   phosphor to satisfy the
    Laser Display                                                                                              trichromatic laser    complete
                                                                                   market demands for
    Complete                                                                                                   display               equipment
                                                                                   RGB trichromatic laser
                                                                                   display, build a mass
    Production                                                                                                 gain international    demonstration
                                                                                   production line for
    Demonstration                                                                                              competitive edge      line            of
                                                                                   trichromatic        laser
    Line                                                                                                       for proprietary       trichromatic laser
                                                                                   display         complete
                                                                                                               trichromatic laser    display.
                                                                                   equipment,        acquire
                                                                                                               display
                                                                                   proprietary IP, and
                                                                                                               technology.
                                                                                   realize       large-scale
                                                                                   application            of
                                                                          trichromatic      laser
                                                                          display products.
Total   /                                                                            /              /   /
                                                                         Unit: 0’000 Currency: RMB
                                         Basic information
                                                     Current period                  Previous period
 Number of R&D staff (persons)                             391                             336
 Proportion of R&D staff to total employees of            30.52                           30.05
 the Company (%)
 Total compensation of R&D staff                         6,049.49                        5,491.73
 Average compensation of R&D staff                        15.47                            16.34
                                             Education
             Academic background                             Number                  Percentage (%)
                    Doctor                                     15                          3.84
                    Master                                     91                         23.27
                Undergraduate                                 234                         59.85
               College or below                                51                         13.04
                     Total                                    391                        100.00
                                              Age structure
                         Age                                Number             Percentage (%)
                        Total                                391                   100.00
Note: The average compensation of R&D staff shown in the table above was the average compensation
for the first half of 2021 and 2020, respectively.
□ Applicable√ N/A
III. Analysis of core competitiveness during the reporting period
(I) Analysis of core competitiveness
√ Applicable□ N/A
     Since the Company invented the ALPD® technology, the fundamental key technology architecture
has been gradually formed and improved. On the basis of this technology, the Company has established
rich product lines, and developed high-performance, high-quality, and cost-effective laser display
projection products in traditional fields such as film, television, business education and large venue while
further expanding innovative fields such as aviation, automotive, and smart home. The ALPD®
technology has become the mainstream technical route for laser display. By relying on fundamental
research and original innovation rather than consumption of resources, the Company has realized rapid
development, continuously improved the performance and cost-performance ratio of its products, and
maintained the competitive advantages in the industry.
     With core patents of the Company covering laser phosphor display technologies, the Company has
gradually built up a patent system containing the largest number of patents covering the widest scope with
the highest quality in the industry. This patent system safeguards its fundamental research and original
innovation. With key core patents at the center, the Company has built a united whole patent system, and
is hard to be fully simulated or directly bypassed by the competitors.
     The Company has a layout of the entire laser display industry chain, and keeps extending application
scenarios. The solutions ranging from the development and manufacturing of independently developed
core devices and complete equipment to laser display lead the growth of laser display field. In terms of
core devices, the Company has developed cinema light source, large venue light source, laser light
projector and flexible laser display screen, etc.; for complete equipment, the Company offers the main
products including laser cinema projector, large venue laser projector, laser education projector, laser TV
and smart mini projector, etc. The solutions provided by the Company are widely used in cinemas, cultural
tourism, security, education, business, homes, consumer electronics and other fields; laser display
technology is the mainstream new display technology, with a huge future development space. The
Company has advanced layout in multiple innovation fields and has a broad market application space,
laying a solid foundation for its future growth.
     Through more than ten years of R&D efforts, the Company’s technical advantages have been given
full play in cinema, household, large venue and other fields. Its products show superior performance in
brightness, service life, color gamut, removal of speckle and other aspects. Through sufficient validation
at R&D and quality labs and on-site use for a long time, the Company’s product models have become
mature. Since its installation in June 2014, the first set of ALPD® cinema light source has been stably
operating for over seven years. The Company’s products in other fields have also won trust on the market
with their outstanding performance and reliable quality.
     The Company’s founder and Chairman, Dr. LI Yi, is a well-known expert in the field of laser display,
and also the R&D leader and key technician of the Company. In addition, the Company has a group of
high-quality R&D talents, including a lot of doctors and masters graduated from famous domestic and
foreign universities. The Company’s R&D team has taken the lead in the research of laser display
technology in the industry. The Company is able to precisely catch the development trend of the display
industry, and continuously release new laser display products with prominent prospects in response to
market demands.
(II) Events occurred during the reporting period that have a material effect on the Company’s core
     competitiveness, analysis of the effect and countermeasures
□ Applicable√ N/A
IV. Discussion and analysis of business situations
(I) Analysis of the overall business situation during the reporting period
     After the pandemic, the film, large venue projection and business education projection markets are
gradually recovering, and the household business segment is growing rapidly. Driven by the market,
technology, environment, demand and other factors, the new display industry such as laser display
embraces new development opportunities.
     During the reporting period, the Company seized market opportunities and deepened adjustments to
its business structure, further promoted TO C business, and explored a new growth curve; meanwhile, the
domestic film market continued to pick up and recovered to 90% compared to the corresponding period
in 2019. Benefiting from the good performance of the film market, the Company’s cinema business
achieved recovery growth, contributing a stable cash flow and net profit to the performance of the first
half of the year; in addition, with the gradual control of the pandemic and being supported by a series of
stable investment and growth policies, the large venue and business education markets are gradually
recovering. The Company has obvious competitive advantages in terms of large venue and business
education, and obtains outstanding performance in the first half of the year. For core devices, the Company
has further expanded its leading advantage in the supply of core devices in the laser display industry by
virtue of cost-effective and high-performance core device products. During the reporting period, the
Company established cooperation with Dangbei, Hewlett-Packard, Hisense, Changhong, etc. to provide
them with core device products such as laser light source, light projector and screen.
     During the reporting period, the operating income of the Company was RMB 1.105 billion, up by
for 48.99% of total revenue; TO B business was outstanding, with the laser cinema projection service,
laser cinema projector, large venue and business education up by 576.76%, 120.09%, 154.14% and 51.09%
year on year, respectively.
                                                                              Unit: 0’000 Currency: RMB
                                           Main business by sector
                                                         Gross    % Change in
                        Operating         Operating                           % Change in % Change in
Sector                                                   margin    operating
                         income             cost                              operating cost gross margin
                                                          (%)       income
                                                                                                +8.49
Laser display          110,468.92         72,361.23       34.50      54.28        36.59       percentage
                                                                                                points
                                          Main business by product
                                                                  Year-on-year Year-on-year Year-on-
                                                         Gross     increase or  increase or year increase
                        Operating         Operating
Product                                                  margin    decrease of  decrease of or decrease
                         income             cost
                                                          (%)       operating operating cost of gross
                                                                  income (%)        (%)      margin (%)
                                                                                                -1.23
                                                                                               points
                                                                                                -4.63
(1) Laser optical
engine
                                                                                               points
                                                                                               +4.83
(2) Complete laser
projector
                                                                                               points
                                                                                                +8.48
Laser cinema
projector
                                                                                                points
                                                                                                +1.93
Laser TV                   26,060.37      18,430.82 29.28           28.21         24.80       percentage
                                                                                                points
                                                                                                +5.07
Laser business
education projector
                                                                                                points
                                                                                                +3.95
Laser large venue
projector
                                                                                                points
                                                                                                +2.57
Smart mini
projector
                                                                                                points
                                                                                                -35.68
(3) Other products          4,833.88       4,253.31 12.01           40.23         135.87      percentage
                                                                                                points
                                                                                               +120.43
service business
                                                                                                points
                                                                                                +60.57
                                                                                                points
                                                                                                +8.49
Total                     110,468.92      72,361.23 34.50           54.28         36.59       percentage
                                                                                                points
     The Company completed the following main tasks during the reporting period:
     During the reporting period, the Company’s TO C business continued to implement the dual-driver
strategy of “hardware + software”. In terms of hardware, the Company focuses on developing its own C-
end brand by relying on its core technology advantages in the laser display field, and the subsidiary Fengmi
keeps launching new C-end products and increasing the sales. In May 2021, the laser TV C2 was launched
on Xiaomi YouPin, a crowdfunding platform, with the amount exceeding RMB 10.32 million, and became
the first popular product with the crowdfunding amount exceeding RMB 10 million among the digital 3C
category in YouPin in 2021. In 618 Shopping Festival, Fengmi’s overall sales exceeded RMB 100 million,
up by 106% year on year, and won the double champion of online sales and sales volume of 618 laser TV
on JD.com, Tmall and Xiaomi YouPin platforms for four consecutive years. Also, Fengmi actively expands
offline channels. The first offline experience store opened in Chongqing in May to create a closer product
experience and improve the offline distribution network. In addition, the Company plans to launch new
laser smart mini projectors within the year to further enhance its market competitiveness in TO C business
and continues to improve profitability.
     Regarding software, in the context of large-screen ecology, Feng OS system maintains a fast iterative
space, providing end users with smart services and more convenient and comfortable large-screen human-
computer interaction experiences. During the reporting period, the number of domestic users of Feng OS
system kept increasing and the penetration rate of paid members took the lead in the industry.
     What’s more, Fengmi successfully completed round A financing and was based in Chongqing. In
future, Fengmi will simultaneously construct R&D centers, data centers, transformation centers of
scientific and technological achievements, laboratories and other supporting service facilities in
Chongqing, deploy R&D, design and manufacturing in the field of smart projection, and increase new
product R&D and market investment, integrate superior resources, and expand existing product categories
and application fields.
     During the reporting period, the Company launched cost-effective cinema light source products, and
steadily promoted the penetration of cinema light source projection service business to more cinemas. As
of the disclosure date of this report, Appotronics has over 23,000 ALPD® laser projectors installed
throughout China, an increase of 3,000 sets compared to the beginning of the period, and the authorized
timed broadcasting exceeded 168 million hours, taking the absolute leading position on the market.
     Meanwhile, the Company cooperated with UME Cinema to launch the first ALPD® laser
highlighting theater in China. As an upgraded version of ALPD® version, the projection brightness is 180%
higher than that of ordinary movies. At the end of the reporting period, CINEAPPO, the controlled
subsidiary of the Company, has established 268 ALPD® highlighting theaters throughout China.
Meanwhile, CINEAPPO has jointly worked with producers to successively develop “Secret Visitor”, “On
the Cliff”, “Chinese Doctors” and other laser highlighting films, improving the additional commercial
value of laser film projection services and creating stronger market competitiveness.
     In the field of large venue, the Company provided the projection solutions for many cultural tourism
projects including “Mr. Big” light show for the 110th anniversary of Tsinghua University, “Jiameng
Chunqiu” in Guangyuan, Sichuan, and “Strange Life Travel” in Beijing 798 Art District. The Company
also promoted the implementation of the first domestic Chinese outstanding cultural immersive digital
experience center, i.e. “Liaocang” project in Beijing. The Company lighted up the stage of the theatrical
performance “Great Journey” for the centenary of the founding of the CPC by providing ALPD® laser
light source. At the end of the reporting period, the Company’s large venue business achieved a year-on-
year increase of 154.14%.
     In the field of business education, the Company further developed many cost-effective and
competitive products. During the reporting period, the Company expanded many higher education projects,
covering core universities in multiple regions, and reserved higher education projects including Project
year. Meanwhile, the Company actively advanced the development of the business office market, paid
attention to application scenarios such as emerging industries, script killing, and immersive restaurants,
and expanded new business increments.
     Although the overseas pandemic prevention and control is still severe, the Company still actively
improved its overseas layout and expanded overseas markets during the reporting period.
     With the continuous implementation of the EU’s relevant mercury restriction regulations, the mercury
light projection stock market is shrinking, and the demand for the laser projection in business education
market is increasing. During the reporting period, the Company focused on expanding overseas customers
including Russia and Turkey, and the revenue from the overseas business education increased by over 400%
from the previous year. As the next step, the Company will continue to focus on the overseas business
education market and explore market opportunities in Europe, the Middle East and other regions.
     Further, in the first half of the year, the sales of Company’s overseas large venue projector light source
returned to the pre-COVID 19 level basically, and the Company also actively engaged with major overseas
cinema customers, followed up the reform of cinema light source, and promoted the penetration of the
cinema laser projection service model on the overseas markets.
in the case involving Delta
     Regarding R&D results, during the reporting period, the Company was granted 115 new patents,
including 82 patents for invention, 23 patents for utility model and 10 patents for design; the Company
filed 38 new PCT international patent applications, totaling 193 valid PCT international patent applications.
At the end of the reporting period, the Company applied for and was granted 2,221 patents in total
worldwide.
     On the principle of cooperation in good faith and win-win development, and based on its intellectual
property rights and core devices, the Company is exploring the mode of patent operation to establish and
gradually improve the ecology of the laser display industry chain. During the reporting period, the
Company actively promoted cooperation with the leading downstream customers in the industry, and
achieved certain results in the sales of core devices from the intellectual property operations.
     During the reporting period, significant progress was made in the case on the intellectual property
litigation between the Company and Delta. For the STAR Market Patent No. 1 Case ( (2019) Yue 73 Zhi
Min Chu No. 664), the judgment of the first instance was delivered, in which the defense of non-
infringement of Appotronics was established, and all claims made by Delta were dismissed by the court
of the first instance; Delta withdrew its case in the second instance, and the Supreme People's Court issued
a final ruling, allowing Delta to withdraw the lawsuit.
(II) Completion of other key tasks during the reporting period
     During the reporting period, the Company achieved favorable results in innovative scenario
applications, talent team building, and investor relationship management:
     During the reporting period, the Company established an innovation center, and extended the
innovative application research and development to multiple fields. In May 2021, the Company and ACIC
reached a strategic partnership. The two parties will explore possibilities of various aviation applications
based on laser light source technology and laser display solutions. Application scenarios include
commercial fixed-wing aircraft and helicopters. Meanwhile, the Company actively deployed in-vehicle
laser display, smart home and other application fields.
     In order to further establish and improve the Company’s long-term incentive mechanism, strengthen
the building of talents, and fully mobilize the enthusiasm of the Company’s core team, the Company
developed a new phase of equity incentive plan during the reporting period, under which 18.5 million
restricted shares were issued, representing 4.09% of the share capital of the Company; such shares were
first granted to the Company’s business backbone, totaling 220 persons, accounting for 17% of the total
employees of the Company.
     During the reporting period, the Company improved the talent building of investor relations, and
established a dedicated capital market communication mechanism for which a designated person takes
special duties in order to build a two-way communication bridge between the Company and the capital
market through multi-channel and multi-level communication. As of the disclosure date of this report, the
securities companies have published several in-depth research reports on the Company, and completed
more than a hundred investor exchange activities covering thousands of people. The investor relations
team aims to serve shareholders and tap potential investors, significantly increasing the Company’s
activity in the capital market and establishing a good image in the capital market.
Significant changes in the operations of the Company during the reporting period, and the events
that have or are expected to have a significant impact on the operations of the Company during
the reporting period
□ Applicable√ N/A
V.   Risk factors
√ Applicable□ N/A
     Affected by the tight industry supply chain, the core suppliers are unable to supply components in a
timely manner with both quality and quantity guaranteed, resulting in a slowdown in the growth of the
Company’s TO C business and delay in the shipment progress of some core devices or complete equipment
products, hence the operating performance growth rate of the Company would fail to meet the expectation.
     During the reporting period, the Company implemented strategic stocking as affected by the tight
industry supply chain, to be specific, reserving raw materials in advance. At the end of the reporting period,
the carrying amount of the Company’s inventories was RMB 641.5780 million, accounting for 17.57% of
total assets of the Company. If the future sales do not meet expectation or market trends change, the
recoverable amount of the inventories will be lower than their carrying amount. The impairment of
inventories will have a negative effect on our earnings.
     The Company established or invested in subsidiaries or participating companies in other countries
and regions. There may exist the following risks: first, the policy, culture and law environments and other
factors of the country where an overseas company is incorporated would increase the management risk of
the Company’s overseas subsidiaries; second, if the operating performance of the investee decreases
sharply because the technological level or market expansion of the investee falls short of the Company’s
expectation, or the investee poorly operates or manages, the Company needs to recognize an impairment
loss on the long-term equity investment, which will adversely affect the Company’s operating performance;
third, if the Company fails to achieve a synergy effect through acquisition of the investee, the Company’s
strategic plan may be unable to be implemented as scheduled.
     As continuously affected by the pandemic, the Company failed to expand its overseas business as
scheduled, and overseas customers also slowed down in product delivery and acceptance; the Company’s
cinema projection service business was also affected to a certain extent due to the closure of a small
number of theaters and the delay of film schedules as part of domestic anti-epidemic control measures.
However, if the prevention and control of the epidemic on the world remain grim, this would increase the
uncertainty in the production and operation of the Company.
VI. Main business activities during the reporting period
      Please refer to “IV. Discussion and analysis of business situations” in this section for details.
(I) Analysis of main business
                                                                                 Unit: Yuan Currency: RMB
  Item                                                          Amount of the prior
                                            Current period                                   % Change
                                                                        period
  Operating income                           1,104,689,243.59        716,025,207.34                     54.28
  Operating costs                              723,612,305.19        529,787,789.94                     36.59
  Sales expenses                                89,686,195.83          50,833,894.50                    76.43
  Administrative expenses                       83,960,516.92          77,813,657.09                     7.90
  Financial expenses                             1,532,019.30           8,037,691.04                  -80.94
  R&D expenses                                  95,128,483.66          87,295,450.75                     8.97
  Net cash flows from operating
  activities
  Net cash flows from investment
                                              -365,535,026.25         -92,315,802.97                     N/A
  activities
  Net cash flows from financing
  activities
Description of reasons for changes in the operating income: The operating income increased by 54.28%
year on year, primarily due to the rapid growth of the household business revenue and the basic recovery
of cinema business revenue.
Description of reasons for changes in operating costs: The operating costs increased by 36.59% year on
year, primarily due to the increase in the operating income.
Description of reasons for changes in the sales expenses: The sales expenses increased by 76.43% year on
year, primarily due to the increase in marketing expenses caused by the Company’s furthered promotion
and the increase in employee salaries caused by the rise in sales personnel in the current period.
Description of reasons for changes in the financial expenses: The financial expenses decreased by 80.94%
year on year, primarily due to the improvement in operating cash flow, drop in capital cost and rise in
interest income in the current period.
Description of reasons for changes in the R&D expenses: The R&D expenses increased by 8.97% year on
year, primarily due to the rise in the salaries of R&D employees and services fees in the current period.
Description of reasons for changes in the net cash flows from operating activities: primarily due to the
increase in the operating income and receipts in the current period.
Description of reasons for changes in the net cash flows from investment activities: primarily due to the
increase in the net purchase amount of wealth management products and payment of remaining equity.
Description of reasons for changes in the net cash flows from financing activities: primarily due to the
receipt of strategic investment funds by Chongqing Fengmi as the subsidiary in the current period.
    of the Company in the current period
□ Applicable√ N/A
(II) Explanation about material changes in profit due to non-main business
√ Applicable□ N/A
     During the reporting period, the year-on-year increase of RMB 39.8920 million in non-recurring
profit or loss was primarily due to the increase by RMB 41.9565 million in the government grants
recognized in the profit or loss for the current period and recognition of the performance compensation
amounting to RMB 38.1759 million of the participating company.
(III) Analysis of assets and liabilities
√ Applicable□ N/A
                                                                                               Unit: Yuan
                                                                        % of
                                        % of                            total
                                        total                          assets
                                                     Balance at the
               Balance at the end     assets at                        at the      %
    Item                                            end of the prior                          Explanation
                 of the period        the end                          end of    Change
                                                        period
                                       of the                            the
                                       period                           prior
                                                                       period
Held-for-          457,982,988.00          12.54     114,000,000.00       3.53    301.74    Primarily due to
trading                                                                                     the purchase of
financial                                                                                   wealth
assets                                                                                      management
                                                                                            products by the
                                                                                            Company with
                                                                                            idle     offering
                                                                                            proceeds and
                                                                                            recognition of
                                                                                            the
                                                                                            performance
                                                                                            compensation
                                                                                            for      external
                                                                                            investment
Receivables        168,553,862.09           4.62     341,660,832.43     10.59      -50.67   Primarily due to
                                                                                            recovery        of
                                                                                            opening
                                                                                            receivables
                                                                                            during        this
                                                                                            period
Receivables          1,214,306.00           0.03      11,959,000.00      0.37      -89.85   Primarily due to
financing                                                                                   the receipt in
                                                                                            the       current
                                                                                            period          of
                                                                                            bank’s
                                                                                            acceptance bills
                                                                                            at the end of the
                                                                                            prior period
Prepayment       83,781,122.54    2.29      47,447,601.43    1.47    76.58   Primarily due to
s                                                                            the increase in
                                                                             prepayments to
                                                                             some suppliers
                                                                             for     stocking
                                                                             demand in the
                                                                             current period.
Inventories     641,578,029.45   17.57     418,812,140.80   12.98    53.19   Primarily due to
                                                                             the increase in
                                                                             raw materials
                                                                             for     stocking
                                                                             demand during
                                                                             this period
Contract          2,388,492.32    0.07       3,744,655.50    0.12   -36.22   Primarily due to
assets                                                                       receipt        of
                                                                             contract assets
                                                                             during       this
                                                                             period
Other            49,693,022.76    1.36      13,002,195.46    0.40   282.19   Primarily due to
current                                                                      the increase in
assets                                                                       the input VAT
                                                                             to be deducted
                                                                             during       this
                                                                             period
Constructio      88,984,744.00    2.44      51,576,850.72    1.60    72.53   Primarily due to
n in progress                                                                the increase in
                                                                             the construction
                                                                             of            the
                                                                             headquarters
                                                                             building
Use    right     36,066,334.54    0.99                                N/A    Primarily due to
assets                                                                       first
                                                                             implementation
                                                                             of new lease
                                                                             standard
Other non-       15,891,524.06    0.44       6,299,781.06    0.20   152.26   Primarily due to
current                                                                      the increase in
assets                                                                       prepayments
                                                                             for long-term
                                                                             assets
Short-term       28,097,875.42    0.77      88,778,852.86    2.75   -68.35   Primarily due to
borrowings                                                                   repayment of
                                                                             short-term
                                                                             borrowings
                                                                             during       this
                                                                             period
Notes           180,257,484.74    4.94     116,822,674.67    3.62    54.30   Primarily due to
payable                                                                      the increase in
                                                                             payment        by
                                                                             bank’s
                                                                             acceptance bills
                                                                             for
                                                                             procurement
                                                                             during       this
                                                                             period
Taxes            43,934,753.55    1.20      19,871,846.94    0.62   121.09   Primarily due to
payable                                                                             the increase in
                                                                                    provision for
                                                                                    enterprise
                                                                                    income       tax
                                                                                    during      this
                                                                                    period
Other               255,483,098.01    7.00      59,848,053.83     1.86     326.89   Primarily due to
payables                                                                            the increase in
                                                                                    the       equity
                                                                                    repurchase
                                                                                    payments
                                                                                    payable       of
                                                                                    Chongqing
                                                                                    Fengmi during
                                                                                    this period
Long-term           102,690,487.26    2.81      64,845,281.53     2.01      58.36   Primarily due to
borrowings                                                                          the         new
                                                                                    increase      in
                                                                                    long-term
                                                                                    borrowings of
                                                                                    the subsidiaries
                                                                                    during      this
                                                                                    period
Leasing              18,391,443.49    0.50                                   N/A    Primarily due to
liabilities                                                                         first
                                                                                    implementation
                                                                                    of new lease
                                                                                    standard by the
                                                                                    Company
Other information
None
√ Applicable□ N/A
(1) Asset size
Including: Overseas assets of 388,409,538.98 (Unit: Yuan Currency: RMB), accounting for 10.64% of
total assets.
(2) Descriptions of overseas assets
□ Applicable√ N/A
√ Applicable□ N/A
                                                                    Unit: Yuan Currency: RMB
              Item                        Amount                             Reason
         Bank deposits                          40,000,000.00            Term deposits
     Other monetary funds                       20,292,090.37 Security deposit for notes and
                                                                        letters of credit
        Intangible assets                     297,566,999.88     Land use rights used to be as
                                                                      the loan mortgage
□ Applicable√ N/A
(IV) Analysis of investments
√ Applicable□ N/A
    At the end of the reporting period, the Company holds the long-term equity investment of RMB
increase in the investment return of the investee, changes in other comprehensive income and exchange
rate changes.
(1) Material equity investments
□ Applicable√ N/A
(2) Material non-equity investments
□ Applicable√ N/A
(3) Financial assets at fair value
√ Applicable□ N/A
    As of June 30, 2021, the balance of held-for-trading financial assets of the Company was RMB
performance compensation of the participating company;
     The balance of investment in other equity instruments was RMB 11,975,419.38, which is investment
in two investee companies with zero change in the fair value during the reporting period;
     The receivables financing was RMB 1,214,306.00, which is bank’s acceptance bills.
(V) Sale of material assets and equities
□ Applicable√ N/A
(VI) Analysis of major investees
√ Applicable□ N/A
                                                                          Unit: 0’000 Currency: RMB
                   Main       Registere    Shareholdin       Total       Net       Operatin   Net
  Company
                 business     d capital    g percentage      assets     assets     g income  profit
                Provision
                of cinema
                laser light
                  source
 CINEAPPO       projection    10,000.00      63.20%
                  service
                 and sales
                    of
                projectors
                R&D and
                  sale of
 Chongqing                                                  79,894.8                53,121.6   1,276.1
                 househol     7,017.54       39.19%                    -10,062.30
  Fengmi                                                       7                       9          4
                 d display
                 products
                R&D and
 Appotronic       sale of                                    37,772.9   35,099.1               3,144.5
   s HK         laser light                                     6          1                      0
                  source
Other information:
     None
(VII)    Structured entities controlled by the Company
□ Applicable√ N/A
VII. Other disclosures
√ Applicable□ N/A
    Considering that the participating company GDC BVI failed to meet the 2020 performance
commitment goal, the Company communicated with GDC Cayman with respect to performance
compensation. Through multiple negotiations, the two parties reached an agreement on the 2020
performance compensation and signed a settlement agreement and relevant documents on this
performance compensation plan. Please refer to the Announcement No. 2021-005 issued by the Company
on www.sse.com.cn and the designated media for information disclosure on July 16, 2021.
shares held by it in GDC BVI (i.e. 20,682,627 shares) to Appotronics HK as the time when the settlement
agreement is signed. GDC Cayman shall pay Appotronics HK RMB 1.2 million in cash as the
compensation within 12 months from the date of signing the settlement agreement.
     The said 2020 Performance Compensation Plan has been reviewed and approved by the general
meeting of shareholders. The performance compensation agreement concluded by the two parties is an
adjusting event after the balance sheet date. On June 30, 2021, the Company recognized the performance
compensation as the held-for-trading financial assets in an amount of RMB 37.9830 million while
recording gains or losses from changes in fair values in an amount of RMB 38.1759 million (the difference
between the two is the effect of translation exchange rate of the statements).
                            Section IV Corporate Governance
I.    General meetings of shareholders held
                                               Reference to
                                                                       Date of
                                                resolutions
        Session         Date of meeting                             disclosure of        Resolutions
                                             published on the
                                                                     resolutions
                                            designated website
                                                                                      All      proposals
 general meeting of      February 25,                               February 26,      general meeting
                                              www.sse.com.cn
  shareholders in           2021                                       2021           have         been
                                                                                      passed.
                                                                                      All      proposals
 general meeting of                                                                   general meeting
                        April 12, 2021        www.sse.com.cn       Arpil 13, 2021
   shareholders in                                                                    have         been
                                                                                      passed.
                                                                                      All      proposals
     Annual general                                                                   submitted to the
       meeting of                                                                     general meeting
                         May 14, 2021         www.sse.com.cn        May 15, 2021
     shareholders in                                                                  have         been
                                                                                      passed.
Extraordinary general meeting of shareholders requested by the preferred shareholder with
restitution of voting right
□ Applicable√ N/A
Explanation about the general meetings of shareholders
√ Applicable□ N/A
    During the reporting period, the Company held 1 annual general meeting and 2 extraordinary general
meetings in total. After being certified by Beijing JunHe (Shenzhen) Law Firm engaged by the Company,
the convening and holding procedures of general meetings of shareholders comply with the relevant laws
and regulations as well as the provisions of the Articles of Association. The qualifications of the persons
attending the meeting and conveners are legal and valid, and voting procedures and results of general
meetings of shareholders are legal and valid. All proposals submitted to the general meetings by the Board
of Directors have been reviewed and passed.
II. Changes in directors, supervisors, senior officers and key technical staff
□ Applicable√ N/A
Changes in directors, supervisors, senior officers and key technical staff
√ Applicable□ N/A
Company expire in July 2021, the Company elected members of Board of Directors and Board of
Supervisors. On July 15, 2021, the Company held the 32nd meeting of the 1st Board of Directors and the
Wei, NING Xiangdong, TANG Guliang and CHEN Youchun as the candidates of the 2nd Board of
Directors, and two persons including GAO Lijing and SUN Hongdeng as the candidates of members of
the Company’s Second Board of Supervisors who are not representatives of the staff and workers. On
August 3, 2021, the Company held the 3rd extraordinary general meeting of shareholders in 2021,
reviewing and approving the said proposal.
electing Ms. WANG Yingxia as the director of the Second Board of Directors who is the representative
of the staff and workers, and Ms. WANG Yanyun as the supervisor of the Second Board of Supervisors
who is the representative of the staff and workers. The said director and supervisor, together with the
directors and supervisors elected by the 3rd extraordinary general meeting of shareholders in 2021 of the
Company, respectively form the Second Board of Directors and the Second Board of Supervisors of the
Company. Their respective term of office shall be three years from the date of review and approval by the
general meeting of shareholders.
Mr. LI Yi as the Chairman of the Second Board of Directors, and engaging Mr. BO Lianming as the
general manager of the Company, Ms. WANG Yingxia as the CFO of the Company, and Ms. YAN Li as
the secretary of the Board of Directors of the Company. On the same day, the Company held the 1st
meeting of the Second Board of Supervisors, electing Ms. GAO Lijing as the Chairman of the Second
Board of Supervisors.
WANG Lin, GUO Zuqiang and WU Xiliang. On August 23, 2021, after reassessment, the Company’s key
technical staff include LI Yi, HU Fei, YU Xin, WANG Lin, WANG Zeqin and GUO Zuqiang.
Description of determination of key technical staff of the Company
√ Applicable□ N/A
    After taking into account technology R&D, obtainment of patent for invention and other factors, the
Company optimized and adjusted the specific determination standards of key technical staff as follows in
order to standardize and improve the building of the Company’s R&D system:
     (1) play an important role in the Company’s R&D system or hold an important position in the
Company’s R&D department;
     (2) lead the R&D of multiple core technologies of the Company during the period of service;
     (3) obtain several patents in the capacity as inventor or designer, and make outstanding contributions
to the core technologies of the Company; and/or
     (4) have a deep professional knowledge background in the laser display industry, broad work
qualifications or project experience.
     Any candidate shall meet at least two of the above criteria at the same time, and then with the approval
by the Chairman, may be determined as a key technician of the Company.
III. Proposals for profit distribution and capitalization of the capital reserve
Profit distribution proposal or proposal for capitalization of capital reserve during the reporting
period
 Whether to implement profit distribution or                                   No
 capitalization of capital reserve
 Number of bonus shares distributed per 10 shares                               /
 Cash dividends distributed per 10 shares (inclusive                            /
 of tax)
 Number of shares distributed out of the capital                                /
 reserve
  Description of the proposal for profit distribution on ordinary shares and capitalization of the capital
                                                   reserve
                                                      /
IV. Share incentive plan, employee stock ownership plan and other employee incentive measures
       of the Company and their effect
(I) Equity incentives already disclosed in the interim announcements about which no new
      information is available
√ Applicable□ N/A
                               Summary                                            Reference
                                                                       Please refer to the relevant
  On March 26, 2021, the Company held the 30th meeting of the 1st
                                                                       announcement issued by the
  Board of Directors and the 17th meeting of the 1st Board of
                                                                       Company on www.sse.com.cn
  Supervisors, which reviewed and approved the Proposal on the
                                                                       and the designated media for
                                                                       information disclosure on March
  Summary of the Plan and other related proposals.
                                                                       Please refer to the relevant
  On April 12, 2021, the Company held the 2nd extraordinary
                                                                       announcement issued by the
  general meeting of shareholders in 2021, which reviewed and
                                                                       Company on www.sse.com.cn
  approved the Proposal on the 2021 Restricted Share Incentive Plan
                                                                       and the designated media for
  (Draft) of the Company and Summary of the Plan and other related
                                                                       information disclosure on April
  proposals.
  On April 22, 2021, the Company held the 31th meeting of the 1st
  Board of Directors and the 18th meeting of the 1st Board of
  Supervisors, which reviewed and approved the Proposal on the
  Adjustment of the 2021 Restricted Share Incentive Plan and the Please refer to the relevant
  Proposal on Initial Grant of Restricted Shares to Grantees, pursuant announcement issued by the
  to which, the Company initially granted 17.1 million shares to 220 Company on www.sse.com.cn
  grantees at the price of RMB 21.00 per share (for special grantees), and the designated media for
  RMB 17.5 per share (for Type I grantees) and RMB 18.5 per share information disclosure on April
  (for Type II grantees) on April 22, 2021. The Company’s 24, 2021.
  independent directors expressed their independent opinions on
  such proposals, and the Board of Supervisors expressed its opinion
  after review of such proposals.
(II)   Incentives that have not been disclosed in any interim announcement or about which there’s
       new information available
Share incentives
□ Applicable√ N/A
Other information
□ Applicable√ N/A
Employee stock ownership plan
□ Applicable√ N/A
Other incentives
□ Applicable√ N/A
                   Section V Environment and Social Responsibilities
I.         Environment
(I) Environmental protection information of the Company and its major subsidiaries that are
     identified as major polluters by the environmental protection authority
□ Applicable√ N/A
(II) Environmental protection information of any company that is not identified as a major polluter
√ Applicable□ N/A
□ Applicable√ N/A
√ Applicable□ N/A
     The Company has not been identified as a major polluter during the reporting period. The Company
attaches importance to environmental protection and has taken measures, the details of which are seen in
“I. Environment” - “(V) Measures taken to reduce carbon emissions during the reporting period and their
effect” in “Section V Environment and Social Responsibilities”.
□ Applicable√ N/A
(III) New information about the environmental protection information disclosed during the
      reporting period
□ Applicable√ N/A
(IV) Relevant information conducive to protecting ecology, preventing pollution and fulfilling
     environmental responsibilities
□ Applicable√ N/A
(V) Measures taken to reduce carbon emissions during the reporting period and their effect
√ Applicable□ N/A
To be specific, the Company independently researches, develops and implements waste water recycling
and reuse systems, implements special energy-saving measures for central air-conditioning systems, air
compressors, UV purifier systems, aging products and product equipment, so as to minimize the energy
consumption and impact on the environment. During the reporting period, the Company’s key
environmental indicators all met standards. The average water consumption per unit of production
equipment decreased by 38.46% year on year, and electricity consumption per unit decreased by 10.01%
year on year.
                          Key environmental indicators for the first half of 2021
                                                                                         Meet the
     No.                    Item                          Goal           Actual           relevant
                                                                                      standard or not
                 Average electricity             not more than 26
                consumption per unit                  kwhs
              Average water consumption          not more than 0.1
                       per unit                        tons
                Total hazardous waste            not more than 3.3
                      discharges                       tons
              Rate of passing the review
                  protection system
attaches importance to environmental protection and has taken the following environmental protection
measures to fulfill its social responsibility:
     Disposal of solid wastes
     The Company’s solid wastes include consumer wastes, general industrial solid wastes and hazardous
wastes. The consumer wastes are collected and then handed over to the environmental sanitation entity for
centralized treatment. The general industrial solid wastes mainly consist of leadless waste scruff and waste
packing materials generated in the production process, which are collected by category and then handed
over to the relevant resource recycling entities for recycling. The hazardous wastes mainly consist of waste
active carbon generated in the waste gas treatment process, and wastes containing industrial alcohol and
waste packing materials containing cleaning agents that are generated in the production process, which
are collected and then handed over to the qualified entities for treatment.
     Sewage treatment
     The Company’s sewage includes domestic sewage and industrial sewage. The domestic sewage is
pre-treated through septic tank or otherwise, and after meeting the relevant standard, discharged to the
municipal sewage treatment pipelines and sewage treatment plant. The industrial sewage is handed over
to the qualified entities for treatment. In addition, the Company has optimized the technologies currently
used to reduce the sewage discharged. The Company appoints a third party to inspect its domestic sewage
every year.
     Waste gas treatment
     The Company’s waste gas mainly includes waste gas containing tin and organic waste gas generated
in the production process. The Company has built a waste gas treatment system, comprising UV photolysis,
active carbon adsorption plant, air purification equipment and other equipment. After the treatment, the
concentration of tin and NmHc in the waste gas discharged by the Company to the air meets the local
standard for Atmospheric Pollutant Emission Limit. In addition, the Company appoints a third party to
conduct the relevant inspections every year.
     Certifications relating to environmental protection
     The Company passed ISO14001 environmental management system certification in 2008, and
continues to conduct the certification. In 2019, the Company passed QC080000 hazardous substance
process management system certification. All of the Company’s products are green products and have
passed RoHS, REACH and China environmental labeling product certification, among others.
II.     Information on consolidation and expansion of the results of poverty alleviation, rural
        revitalization and other specific work
√ Applicable□ N/A
    To actively respond to the national policy of “culture-to-the countryside activity” and support the
rural film projections, the Company develops two models of laser light source cinema projection
equipment, which can realize mobile movie screening or fixed screening in vast rural areas, and helps the
revitalization of rural culture using advanced laser display technology.
                                      Section VI Significant Matters
        I.     Fulfillment of covenants
        (I)     Covenants made by the actual controller, shareholders, affiliates and acquirer of the Company,
                the Company itself and other related parties during the reporting period or the outstanding
                covenants made by them in the prior periods
          √ Applicable□ N/A
                                                                            Whether
                                                                                        Whether Reason for Action
                                                                            there’s a
                                                                                           the       failure to plan if
                                                                              time
                                                               Validity                covenant fulfill the failing to
Background       Covenant                       Covenant                    limit for
                                Covenantor                     period of                has been     covenant    fulfill
 of covenant        Type                         Content                       the
                                                               covenant                  strictly   on time (if   the
                                                                            fulfillme
                                                                                        fulfilled applicable covenant
                                                                            nt of the
                                                                                        on time           )     on time
                                                                            covenant
                             Covenant      by
                             the controlling
                             shareholder
                             regarding
                             restriction on
                             the sale of
                                                                  after
                             shares held by
                                                             completion
Covenant         Restriction him, voluntary Refer to
                                                              of the IPO
relating to      on the sale lock-up of such IPO                               Yes         Yes          N/A       N/A
                                                                and the
IPO               of shares  shares,           Prospectus
                                                                specific
                             extension      of
                                                               extended
                             lock-up period,
                                                                 period
                             intention      to
                             hold         and
                             dispose        of
                             shares and other
                             issues
                             Covenant      by
                             the        actual                36 months
                             controller                           after
                             regarding                       completion
                             restriction on                   of the IPO
                             the sale of                        and the
                             shares held by                     specific
Covenant         Restriction him, voluntary Refer to           extended
relating to      on the sale lock-up of such IPO             period, and       Yes         Yes          N/A       N/A
IPO               of shares  shares,           Prospectus      6 months
                             extension      of                    after
                             lock-up period,                 termination
                             intention      to                     of
                             hold         and               employmen
                             dispose        of                t with the
                             shares and other                 Company
                             issues
                             Covenant      by                 36 months
                             the       concert                    after
Covenant         Restriction                   Refer to
                             parties of the                  completion
relating to      on the sale                   IPO                             Yes         Yes          N/A       N/A
                             actual                           of the IPO
IPO               of shares                    Prospectus
                             controller                         and the
                             regarding                          specific
                            restriction on                      extended
                            the sale of                          period
                            shares held by
                            them, voluntary
                            lock-up of such
                            shares,
                            extension       of
                            lock-up period,
                            intention       to
                            hold          and
                            dispose         of
                            shares and other
                            issues
                            Covenant       by
                            the      directors
                            regarding
                            restriction on
                            the sale of                        12 months
                            shares held by                         after
                            them, voluntary                    completion
Covenant      Restriction                        Refer to
                            lock-up of such                    of the IPO
relating to   on the sale                        IPO                        Yes   Yes   N/A   N/A
                            shares,                              and the
IPO            of shares                         Prospectus
                            extension       of                   specific
                            lock-up period,                     extended
                            intention       to                    period
                            hold          and
                            dispose         of
                            shares and other
                            issues
                            Covenant       by
                            the supervisors
                            regarding
                            restriction on
                            the sale of
                            shares held by
                            them, voluntary                    12 months
Covenant      Restriction                        Refer to
                            lock-up of such                       after
relating to   on the sale                        IPO                        Yes   Yes   N/A   N/A
                            shares,                            completion
IPO            of shares                         Prospectus
                            extension       of                 of the IPO
                            lock-up period,
                            intention       to
                            hold          and
                            dispose         of
                            shares and other
                            issues
                            Covenant       by                  12 months
                            HU Fei, as a                          after
                            senior officer                    completion
                            and member of                      of the IPO
                            key technical                        and the
Covenant      Restriction                        Refer to
                            staff, regarding                     specific
relating to   on the sale                        IPO                        Yes   Yes   N/A   N/A
                            restriction on                      extended
IPO            of shares                         Prospectus
                            the sale of                       period, and
                            shares held by                      6 months
                            him, voluntary                        after
                            lock-up of such                   termination
                            shares,                                 of
                            extension      of                employmen
                            lock-up period,                   t with the
                            intention      to                 Company
                            hold         and
                            dispose        of
                            shares and other
                            issues
                            Covenant      by
                            the        senior
                            officers
                            including BO
                            Lianming
                            regarding
                            restriction on
                                                                  after
                            the sale of
                                                              completion
Covenant      Restriction   shares held by      Refer to
                                                              of the IPO
relating to   on the sale   them, voluntary     IPO                         Yes   Yes   N/A   N/A
                                                                and the
IPO            of shares    lock-up of such     Prospectus
                                                                specific
                            shares,
                                                               extended
                            extension      of
                                                                 period
                            lock-up period,
                            intention      to
                            hold         and
                            dispose        of
                            shares and other
                            issues
                            Covenant      by
                            the          key
                            technical staff
                            including YU
                            Xin regarding                     12 months
                            restriction on                        after
                            the sale of                       completion
                            shares held by                    of the IPO
Covenant      Restriction                       Refer to
                            them, voluntary                   and listing
relating to   on the sale                       IPO                         Yes   Yes   N/A   N/A
                            lock-up of such                    of stock,
IPO            of shares                        Prospectus
                            shares,                             and the
                            extension      of                   specific
                            lock-up period,                    extended
                            intention      to                    period
                            hold         and
                            dispose        of
                            shares and other
                            issues
                            Covenant      by
                            the holders of
                            more than 5%
                            shares
                            regarding
                                                                 after
Covenant      Restriction   restriction on      Refer to
                                                              completion
relating to   on the sale   the sale of         IPO                         Yes   Yes   N/A   N/A
                                                              of the IPO
IPO            of shares    shares held by      Prospectus
                                                              and listing
                            them, voluntary
                                                               of stock
                            lock-up of such
                            shares,
                            extension      of
                            lock-up period,
                            intention      to
                            hold          and
                            dispose        of
                            shares and other
                            issues
                            Covenant       by
                            the         other
                            shareholders
                            regarding
                            restriction on
                            the sale of
                            shares held by
                                                                 after
Covenant      Restriction   them, voluntary     Refer to
                                                              completion
relating to   on the sale   lock-up of such     IPO                         Yes   Yes   N/A   N/A
                                                              of the IPO
IPO            of shares    shares,             Prospectus
                                                              and listing
                            extension      of
                                                               of stock
                            lock-up period,
                            intention      to
                            hold          and
                            dispose        of
                            shares and other
                            issues
                            Covenant       by
                            senior officers
                            and          core
                            employees
                            participating in
                            strategic
                            allotment
                            regarding                         At least 12
                            restriction on                      months
Covenant      Restriction   the sale of         Refer to         after
relating to   on the sale   shares held by      IPO           completion    Yes   Yes   N/A   N/A
IPO            of shares    them, voluntary     Prospectus    of the IPO
                            lock-up of such                   and listing
                            shares,                            of stock
                            extension      of
                            lock-up period,
                            intention      to
                            hold          and
                            dispose        of
                            shares and other
                            issues
                            Issuer’s plan for
                            stabilizing the
                            Company’s
                            stock price and
                                                                 after
Covenant                    covenant            Refer to
                                                              completion
relating to     Others      regarding share     IPO                         Yes   Yes   N/A   N/A
                                                              of the IPO
IPO                         repurchase          Prospectus
                                                              and listing
                            measures
                                                               of stock
                            within      three
                            years after the
                            listing
Covenant                    Controlling         Refer to      36 months
relating to     Others      shareholder and     IPO              after      Yes   Yes   N/A   N/A
IPO                         the        actual   Prospectus    completion
                       controller’s                      of the IPO
                       plan          for                 and listing
                       stabilizing the                    of stock
                       Company’s
                       stock price and
                       covenant
                       regarding share
                       repurchase
                       measures
                       within      three
                       years after the
                       listing
                       Directors and
                       senior officers’
                       plan          for
                       stabilizing the
                       Company’s
                                                            after
Covenant               stock price and     Refer to
                                                         completion
relating to   Others   covenant            IPO                         Yes   Yes   N/A   N/A
                                                         of the IPO
IPO                    regarding share     Prospectus
                                                         and listing
                       repurchase
                                                          of stock
                       measures
                       within      three
                       years after the
                       listing
                       Issuer’s
                       covenant
Covenant                                   Refer to
                       regarding
relating to   Others                       IPO           Permanent     No    Yes   N/A   N/A
                       measures
IPO                                        Prospectus
                       against fraud in
                       IPO
                       Controlling
                       shareholder,
                       actual
                       controller and
Covenant               their     concert   Refer to
relating to   Others   parties’            IPO           Permanent     No    Yes   N/A   N/A
IPO                    covenant            Prospectus
                       regarding
                       measures
                       against fraud in
                       IPO
                       Directors,
                       supervisors and
                       senior officers’
Covenant                                   Refer to
                       covenant
relating to   Others                       IPO           Permanent     No    Yes   N/A   N/A
                       regarding
IPO                                        Prospectus
                       measures
                       against fraud in
                       IPO
                       Issuer’s
                       covenant
Covenant                                   Refer to
                       regarding
relating to   Others                       IPO           Permanent     No    Yes   N/A   N/A
                       remedial
IPO                                        Prospectus
                       measures      for
                       diluted earnings
                       in the current
                       period
                       Controlling
                       shareholder,
                       actual
                       controller and
                       their     concert
Covenant               parties’             Refer to
relating to   Others   covenant             IPO           Permanent   No   Yes   N/A   N/A
IPO                    regarding            Prospectus
                       remedial
                       measures      for
                       diluted earnings
                       in the current
                       period
                       Directors,
                       supervisors and
                       senior officers’
                       covenant
Covenant                                    Refer to
                       regarding
relating to   Others                        IPO           Permanent   No   Yes   N/A   N/A
                       remedial
IPO                                         Prospectus
                       measures      for
                       diluted earnings
                       in the current
                       period
                       Issuer’s
Covenant               covenant             Refer to
relating to   Others   regarding profit     IPO           Permanent   No   Yes   N/A   N/A
IPO                    distribution         Prospectus
                       policy
                       Issuer’s
                       covenant
                       regarding
                       restraint
Covenant                                    Refer to
                       measures and
relating to   Others                        IPO           Permanent   No   Yes   N/A   N/A
                       liability     for
IPO                                         Prospectus
                       compensation
                       in the event of
                       failure to fulfill
                       its covenants
                       Controlling
                       shareholder,
                       actual
                       controller and
                       their     concert
                       parties’
Covenant               covenant             Refer to
relating to   Others   regarding            IPO           Permanent   No   Yes   N/A   N/A
IPO                    restraint            Prospectus
                       measures and
                       liability     for
                       compensation
                       in the event of
                       failure to fulfill
                       their covenants
                            Directors,
                            supervisors and
                            senior officers’
                            covenant
                            regarding
Covenant                                         Refer to
                            restraint                           Term of
relating to     Others                           IPO                       No   Yes   N/A   N/A
                            measures and                         office
IPO                                              Prospectus
                            liability     for
                            compensation
                            in the event of
                            failure to fulfill
                            their covenants
                            Controlling
                            shareholder’s
                            covenant       on
                Resolve     avoiding
Covenant                                         Refer to
               horizontal   horizontal
relating to                                      IPO           Permanent   No   Yes   N/A   N/A
              competition   competition and
IPO                                              Prospectus
                 issues     regulating and
                            reducing
                            related-party
                            transactions
                            Actual
                            controller’s
                            covenant       on
                Resolve
                            avoiding
Covenant        related-                         Refer to
                            horizontal
relating to       party                          IPO           Permanent   No   Yes   N/A   N/A
                            competition and
IPO           transaction                        Prospectus
                            regulating and
                 issues
                            reducing
                            related-party
                            transactions
                                                 Refer to
                                                 the 2019
                                                 Restricted
                                                 Share
                            Covenant      by     Incentive
                            the grantee of       Plan
                            share incentives     (Draft) and
                Others      regarding            2021          Permanent   No   Yes   N/A   N/A
                            information          Restricted
                            disclosure           Share
                            documents            Incentive
Covenant
                                                 Plan
related to
                                                 (Draft) of
share
                                                 the
incentives
                                                 Company
                                                 Refer to
                                                 the 2019
                            Company’s            Restricted
                            covenant      on     Share
                            refraining from      Incentive
                Others                                         Permanent   No   Yes   N/A   N/A
                            providing            Plan
                            financial            (Draft) and
                            assistance           2021
                                                 Restricted
                                                 Share
                                       Incentive
                                       Plan
                                       (Draft) of
                                       the
                                       Company
II. Non-operational occupation of funds by the controlling shareholder and its affiliates during
       this report
□ Applicable√ N/A
III.      Guarantees in violation of applicable regulations
□ Applicable√ N/A
IV.       Audit of semiannual report
□ Applicable√ N/A
V.     Changes in matters involved by non-standard audit opinions in the previous annual report and
       treatment thereof
□ Applicable√ N/A
VI.       Matters relating to bankruptcy and reorganization
□ Applicable√ N/A
VII.    Material litigations and arbitrations
√ The Company was involved in material litigations or arbitration during the reporting period
□ The Company was not involved in material litigations or arbitration during the reporting period
(I) Litigations and arbitrations already disclosed in interim announcements about which no new information is available
√ Applicable□ N/A
                                                     Summary and type of case                                                                   Reference
  I. Case for changing the inventor of patent 19-cv-00466-RGD-LRL in the United States District Court for the Eastern
  District of Virginia      The Company brings a suit against Delta in the United States District Court for the Eastern District
                                                                                                                                 Refer to the Announcement on
  of Virginia for breach of non-disclosure agreement, wrongful appropriation of the technical solutions actually invented by
                                                                                                                                 Litigation disclosed on September 9,
  the Company’s employees LI Yi and HU Fei, and filing for patent application in the United States without authorization,
  and petitions the court to order that the inventors of the patent-in-suit US 9,024,241 shall be changed from WANG Bo,
  ZHANG Kesu and HUA Jianhao into LI Yi and HU Fei.
                                                                                                                                 Refer to the Announcement on
  II. Cases of dispute over infringement on patents for invention [2019] Jing 73 Min Chu No. 1275, 1276, and 1278
                                                                                                                                 Litigation disclosed on September 21,
  In September 2019, Delta Electronics, Inc. initiated a civil litigation on the ground that the Company and its controlled
  subsidiary Fengmi infringed the patents for invention ZL201610387831.8, ZL201410249663.7, and ZL201010624724.5,
                                                                                                                                 Announcement         on     Litigation
  requesting the court to order to stop the acts of infringing the patent rights and the damages for infringement in the amount
                                                                                                                                 disclosed on June 13, 2020 (No.
  of RMB 48.03 million.
  III. (2020) Yue 73 Zhi Min Chu No. 1335-1341, 1353, 1355-1361
                                                                                                                                 Refer to the Announcement on
  In August 2020, the Company initiated a civil litigation on the ground that Delta Electronics (Shanghai) Co., Ltd., Delta
                                                                                                                                 Litigation Against Delta Electronics
  Video Display System (Wujiang) Limited, Digital Protection (Beijing) Electronics Technology Co., Ltd. and other entities
                                                                                                                                 (Shanghai) Co., Ltd. and Other
  infringed the patents for invention ZL200880107739.5 and ZL200810065225.X owned by the Company, requesting the
                                                                                                                                 Entities disclosed on August 11, 2020
  court to order to stop the acts of infringing the Company’s patent rights and the damages for infringement in the amount of
                                                                                                                                 (No. 2020-037).
  RMB 80.00 million.
(II) Litigations and arbitrations that have not been disclosed in interim announcements or about which there’s new information available
√ Applicable□ N/A
                                                                                                                                         Unit: 0’000 Currency: RMB
During the reporting period:
                                                                                                         Whether any
                               Party jointly                                                                                                              Enforce
                                                  Type of                                                provision is
 Plaintiff/     Defendant          and                                                        Amount                                    Result and        ment of
                                                 litigation           Background                         recognized        Status
 claimant      /respondent      severally                                                     claimed                                     effect         judgment
                                                /arbitration                                               and the
                                  liable                                                                                                                  /award
                                                                                                           amount
                                                               [2019] Yue 73 Zhi Min
                                                               Chu No. 662, the Plaintiff
                               Futian SPN                      alleges that it is the owner                             RMB 10.00
                               Projector &                     of the patent for invention                              million
Delta          Appotronics                     Infringement
                               Video                           ZL201610387831.8 and                                     released,      In trial of the
Electronics,   Corporation                     on patent for                                  1,614.53       No
                               System                          the Defendant infringed                                  and in trial   first instance
Inc.           Limited                         invention
                               Firm      of                    such patent for invention                                of the first
                               Shenzhen                        of the Plaintiff and caused                              instance
                                                               economic losses to the
                                                               Plaintiff.
                                                               [2019] Yue 73 Zhi Min
                                                               Chu No. 663, the Plaintiff
                                                                                                                                       Judgment of
                               Futian SPN                      alleges that it is the owner
                                                                                                                                          the first
                               Projector &                     of the patent for invention
Delta          Appotronics                     Infringement                                                                            instance: All
                               Video                           ZL201310017478.0 and                                       Pending
Electronics,   Corporation                     on patent for                                  1,614.53       No                        claims made
                               System                          the Defendant infringed                                  second trial
Inc.           Limited                         invention                                                                                   by the
                               Firm      of                    such patent for invention
                                                                                                                                       Plaintiff were
                               Shenzhen                        of the Plaintiff and caused
                                                                                                                                        dismissed.
                                                               economic losses to the
                                                               Plaintiff.
                                                               [2019] Yue 73 Zhi Min
                                                               Chu No. 664, the Plaintiff                                              Ruling of the
                               Futian SPN
                                                               alleges that it is the owner                                               second
                               Projector &                                                                              Trial of the
Delta          Appotronics                     Infringement    of the patent for invention                                               instance:
                               Video                                                                                      second
Electronics,   Corporation                     on patent for   ZL20310625063.1          and   1,614.53       No                         Delta was
                               System                                                                                    instance
Inc.           Limited                         invention       the Defendant infringed                                                  allowed to
                               Firm      of                                                                             completed
                                                               such patent for invention                                               withdraw the
                               Shenzhen
                                                               of the Plaintiff and caused                                              litigation.
                                                               economic losses to the
                                                              Plaintiff.
                                                              [2019] Jing 73 Min Chu
                                                              No. 1277, the Plaintiff
                                                              alleges that it is the owner
                                                                                                                            Ruling of the
               Fengmi                                         of the patent for invention
Delta                         Appotronics   Infringement                                                                    first instance:
               (Beijing)                                      ZL201310017478.0 and                             Pending
Electronics,                  Corporation   on patent for                                    1,601.00   No                   The case of
               Technology                                     the Defendant infringed                        second trial
Inc.                          Limited       invention                                                                        the Plaintiff
               Co., Ltd.                                      such patent for invention
                                                                                                                            was rejected.
                                                              of the Plaintiff and caused
                                                              economic losses to the
                                                              Plaintiff.
                                                              (2019) Yue 03 Min Chu
                              Delta Video                                                                                   Judgment of
                                                              No. 2943, 2944, 2946,
                              Display                                                                                       the first
                              System                                                                                        instance: The
                                                              Plaintiff alleges that
               Delta          (Wujiang)                                                                       Pending       Defendant
Appotronics                                 Infringement      Defendant 1, Defendant 2
               Electronics    Limited;                                                                        appeal in     paid the
Corporation                                 on patent for     and Defendant 3 infringed      2,800.00   No
               (Shanghai)     Shenzhen                                                                       the second     Company
Limited                                     invention         the patent for invention
               Co., Ltd.      Super                                                                           instance      RMB
                              Network                                                                                       1,651,997.00
                                                              Plaintiff and caused
                              Technology                                                                                    as the
                                                              economic losses to the
                              Co., Ltd.                                                                                     compensation
                                                              Plaintiff.
                                                              (2019) Yue 03 Min Chu
                              Delta Video
                                                              No. 2942, 2945, 2947,
                              Display
                              System
                                                              Plaintiff alleges that
               Delta          (Wujiang)                                                                          The          The court
Appotronics                                 Infringement      Defendant 1, Defendant 2
               Electronics    Limited;                                                                        Plaintiff      ordered the
Corporation                                 on patent for     and Defendant 3 infringed      2,800.00   No
               (Shanghai)     Shenzhen                                                                       withdrew its     case to be
Limited                                     invention         the patent for invention
               Co., Ltd.      Super                                                                              case        withdrawn.
                              Network
                                                              Plaintiff and caused
                              Technology
                                                              economic losses to the
                              Co., Ltd.
                                                              Plaintiff.
Appotronics    Delta                        Case of dispute   (2019) Yue 03 Min Chu                              The          The court
Corporation    Electronics,                 over title to     No. 4309, the Plaintiff                          Plaintiff     ordered the
Limited       Inc.                         patents           petitions the court to                          withdrew its    case to be
                                                             declare that the patent                             case        withdrawn.
                                                             ZL201610387831.8
                                                             “phosphor color wheel
                                                             and its applicable light
                                                             source system” is owned
                                                             by the Company.
                                                             (2021) Yue 03 Min Chu
                                                             No. 2295, the Plaintiff
Appotronics                                                  petitions the court to
                             ZHANG
Corporation   Delta                        Case of dispute   declare that the patent                          In trial of
                             Kesu, HUA
Limited, LI   Electronics,                 over title to     ZL201610387831.8                30.00      No     the first
                             Jianhao and
Yi and HU     Inc.                         patents           “phosphor color wheel                             instance
                             WANG Bo
Fei                                                          and its applicable light
                                                             source system” is owned
                                                             by the Company.
                                                             case of arbitration
                                                             GDC BVI failed to
                                                             achieve the performance
                                                             covenant for the year
                                                             performance                      BVI:                               The
              GDC                                            compensation provisions.       46,535,9                          American
Appotronics   Technology                   Dispute over      Therefore, GDC Cayman             11                            Arbitration
Hong Kong     Limited                      performance       needs to fulfill the           ordinary    No     Closed        Association
Limited       (Cayman                      compensation      performance                    shares or                       has issued the
              Islands)                                       compensation                   USD 5.6                            closing
                                                             commitment. In May              million                           receipt.
                                                             Appotronics HK applied
                                                             with              American
                                                             Arbitration Association
                                                             for the arbitration against
                                                             GDC Cayman, requesting
the Respondent to pay the
Company performance
compensation.
(III) Other information
√ Applicable□ N/A
      At the end of this reporting period, a total of 14 invalidation petitions have been raised against the
Company’s patent for invention ZL200880107739.5, and a total of 9 invalidation petitions have been
raised against the Company’s patent for invention ZL200810065225.X. These 23 cases have been decided
by the China National Intellectual Property Administration, with the patents sustained, or withdrawn by
the petitioner. Only 1 invalidation case with the Company as a patentee and WANG Lihua as a petitioner
is in trial at the China National Intellectual Property Administration, and the number and name of the
patent involved in the case is ZL201110086731.9 and High-brightness Laser Method and Light-emitting
Device based on Light Wavelength Conversion.
      At the end of the reporting period, there was 1 invalidation case where the Company acted as a
petitioner. The case is in trial at the China National Intellectual Property Administration, and is related to
the invalidation petition with Delta Electronics, Inc. as patentee.
VIII.   Penalties imposed on the listed company and its directors, supervisors, senior officers,
        controlling shareholder, actual controller for suspected violation of laws and regulations
        and rectification of the relevant violations
□ Applicable√ N/A
IX.     Credit standing of the Company and its controlling shareholder and actual controller
        during the reporting period
□ Applicable√ N/A
X.      Material related-party transactions
(I) Related-party transactions in connection with day-to-day operation
available
√ Applicable□ N/A
                        Summary                                      Reference
  The Company expects to engage in routine Please refer to the Announcement No. 2021-003
  related-party transactions with China Film “Announcement on expected routine related-party
  Equipment Co., Ltd. and its affiliates, Xiaomi transactions in 2021” and the Announcement No.
  Communications Technologies Co., Ltd. and its 2021-031 “Announcement on increase in expected
  affiliates,    Beijing     DonView      Education quota of routine related-party transactions in
  Technology Co., Ltd. and its affiliates, 2021”            issued    by    the    Company      on
  CINIONIC, Shenzhen YLX                 Technology www.sse.com.cn and the designated media for
  Development Co., Ltd., GDC Technology Limited information disclosure on February 10, 2021 and
  and its affiliates, and WeCast Technology Corp. April 24, 2021.
  and its affiliates for a total expected amount of
  RMB 1.56195 billion in 2021.
available
□ Applicable√ N/A
□ Applicable√ N/A
(II) Related-party transactions involving acquisition or sale of assets or equities
      available
√ Applicable□ N/A
                     Summary                                             Reference
  The controlled subsidiary Fengmi (Chongqing) Please refer to the Announcement No. 2021-018
  Innovative Technology Co., Ltd. intends to increase “Announcement on increase by Fengmi of
  capital of USD 4 million to the wholly-owned capital to the wholly-owned subsidiary and
  subsidiary Formovie Limited, which will be used subscription for 51% of equity of WeCast
  for subscribing for 51% of equity in WeCast Technology Corp. and on related-party
  Technology Corp. After completion of this transactions” issued by the Company on
  subscription, WeCast will be included in the scope www.sse.com.cn and the designated media for
  of the consolidated financial statements of the information disclosure on March 27, 2021.
  Company. LI Yi, the actual controller and the
  Chairman of the Company, acts as a director of
  WeCast, hence this subscription constitutes a
  related-party transaction according to the
  provisions.
    available
□ Applicable√ N/A
□ Applicable√ N/A
□ Applicable√ N/A
(III) Related-party transactions involving joint external investments
      available
□ Applicable√ N/A
    available
□ Applicable√ N/A
□ Applicable√ N/A
(IV) Accounts receivable from and payable to related parties
     available
□ Applicable√ N/A
     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) Material related-party transactions
       □ Applicable√ N/A
       (VII) Others
       □ Applicable√ N/A
       XI.     Material contracts and performance thereof
       √ Applicable□ N/A
       (1) Trusteeship
       □ Applicable√ N/A
       (2) Contracting
       □ Applicable√ N/A
       (3) Lease
       √ Applicable□ N/A
                                                                                       Unit: 0’000 Currency: RMB
                                                                                    Basis
                                                                                              Impact of   Related-
                                     Amount                                           for
                                                                                                lease       party     Related
 Name of      Name of      Leased       of       Start                     Lease   determi
                                                           End date                          income on    transacti    -party
  lessor       lessee      assets     leased     date                     income     ning
                                                                                                 the        on or     relation
                                      assets                                        lease
                                                                                              Company        not
                                                                                   income
             Appotroni   Office,
Shenzhen
             cs          R&D,                   Decemb
Meisheng                                                  November
             Corporati   factory,    1,237.67   er 1,                 /            /         /            No          None
Industry                                                  30, 2022
             on          employee               2018
Co., Ltd.
             Limited     dormitory
       Description of lease
       None
           √ Applicable□ N/A
                                                                                                                                                     Unit: 0’000 Currency: RMB
                                                      The Company’s guarantees to external parties (excluding those to subsidiaries)
                                                                                                                                        Whether
           Relationship                                                                                                     Whether                                       Whether
                                                  Commencement                                                                             the    Amount of
           between the                                                                                                         the                                            a
                                                       date of                                                                         obligation     the
             guarantor                Guaranteed                   Guarantee Guarantee Type of Principal Collateral obligation                                  Counter guarantee Related
Guarantor                   Obligor                   guarantee                                                                        guaranteed overdue
              and the                   amount                     start date expiry date guarantee debt         (if any) guaranteed                           guarantee for a relationship
                                                  (signing date of                                                                         has     obligation
               listed                                                                                                       has been                                       related
                                                     agreement)                                                                         become guaranteed
             company                                                                                                       discharged                                       party
                                                                                                                                        overdue
Total amount of guarantees provided during the reporting period (excluding those                                                           0
provided for the subsidiaries)
Balance of guarantees at the end of the reporting period (excluding those provided for                                                     0
the subsidiaries) (A)
                                                  Guarantees provided by the Company or its subsidiaries for the subsidiaries of the Company
                                                                                                                                                        Whether
               Relationship                                                   Commencement                                              Whether the        the      Amount of
                                                Relationship                                                                                                                       Whether
                between the                                                        date of     Inception      Expiry                     obligation obligation          the
                                                between the      Guaranteed                                                 Type of                                                there’s a
 Guarantor guarantor and          Obligor                                         guarantee     date of       date of                    guaranteed guaranteed overdue
                                              obligor and the      amount                                                  guarantee                                                counter
                  the listed                                                  (signing date of guarantee guarantee                        has been         has      obligation
                                              listed company                                                                                                                       guarantee
                  company                                                        agreement)                                              discharged     become guaranteed
                                                                                                                                                        overdue
                                                                                                            Three
                                CINEAPPO                                                                    years after
                                Laser                                                                       the     due
Appotronics                                                                                                                Joint and
                                Cinema           Controlled                                     2020-5- date for the
Corporation Headquarters                                           70,000        2020-5-31                                  several          No            No                         No
                                Technology       subsidiary                                        31       obligations
  Limited                                                                                                                   liability
                                (Beijing)                                                                   under the
                                Co., Ltd.                                                                   master
                                                                                                            contract
Appotronics                                                                                                 Two years Joint and
                                Fengmi           Controlled                                    2019-10-
Corporation Headquarters                                           16,500       2019-10-21                  after the       several          No            No                         No
                                (Beijing)        subsidiary                                        21
  Limited                                                                                                   due date        liability
                             Technology                                                                      for     the
                             Co., Ltd.                                                                       obligations
                                                                                                 Initial
                                                                                                             Two years
                                                                                               utilization
                                                                                                             after the
                                                                                                 date or
                         Fengmi                                                                              latest due
Appotronics                                                                                      actual                    Joint and
                         (Beijing)            Controlled                                                     date of the
Corporation Headquarters                                         10,000        2020-12-1         date of                    several         No   No   No
                         Technology           subsidiary                                                     loans
 Limited                                                                                       utilization                  liability
                         Co., Ltd.                                                                           under the
                                                                                               under the
                                                                                                             financing
                                                                                               financing
                                                                                                             letter
                                                                                                  letter
                                                                                                         Three
                                                                                                         years after
                         Fengmi                                                                          the     due
Appotronics                                                                                                                Joint and
                         (Beijing)            Controlled                                                 date for the
Corporation Headquarters                                         10,000         2020-7-1        2020-7-1                    several         No   No   No
                         Technology           subsidiary                                                 obligations
 Limited                                                                                                                    liability
                         Co., Ltd.                                                                       under the
                                                                                                         master
                                                                                                         contract
                                                                                                         Two years
                                                                                                         after the
                         CINEAPPO
                                                                                                         last
                         Laser
Appotronics                                                                                              instalment        Joint and
                         Cinema               Controlled                                         2021-1-
Corporation Headquarters                                         23,000        2021-1-26                 of payment         several         No   No   No
                         Technology           subsidiary                                           26
 Limited                                                                                                 under this         liability
                         (Beijing)
                                                                                                         single
                         Co., Ltd.
                                                                                                         contract
                                                                                                         expires
                                                                                                         Two years
                         Fengmi
Appotronics                                                                                              after the         Joint and
                         (Beijing)            Controlled
Corporation Headquarters                                          5,500         2021-4-2        2021-4-2 due date           several         No   No   No
                         Technology           subsidiary
 Limited                                                                                                 for      the       liability
                         Co., Ltd.
                                                                                                         obligations
Total amount of guarantees provided for the subsidiaries during the reporting period                                                    39,852
Balance of guarantees provided for the subsidiaries at the end of the reporting period                                            41,586
(B)
                                           Total amount of guarantees provided by the Company (including those provided for the subsidiaries)
Total amount guaranteed (A+B)                                                                                                     41,586
Proportion of total amount guaranteed to the net assets of the Company (%)                                                         17.89
Including:
Total amount of guarantees provided for the shareholders, actual controller and their                                                0
affiliates (C)
Total amount of debt guarantees directly or indirectly provided for the obligors whose                                             20,738
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)                                                                                                    20,738
Explanation about outstanding guarantees for which the Company may assume joint                                                     N/A
and several liability
Explanation about guarantees                                                                                                        N/A
□ Applicable√ N/A
      XII.     Use of offering proceeds
      √ Applicable□ N/A
                                                                                                                                         Unit: 0’000 Currency: RMB
                                                                                       Total offering proceeds used in this
Total offering proceeds                                 106,247.08                                                                                 4,587.51
                                                                                       year
Total offering proceeds with the purpose
                                                           N/A
changed                                                                                Cumulative total offering proceeds
Proportion of total offering proceeds                                                  used
                                                           N/A
with the purpose changed (%)
                                                                                                       Difference
                                                                                                      between the    Investme
                                                                                                                         nt       Date for
                                                                                                      cumulative
                                                                                                                     progress   the project
                Changed                                                                Cumulative        amount
                                                         Committed                                                     by the     to reach    Benefits
                project,       Total          Post-                      Amount          amount         invested                                         Whether      Material
Investment                                                investment                                                  end of         the      realized
               including     offering      adjustment                    invested      invested by       and the                                         to obtain   changes in
  project                                                 amount by                                                     the       working      in the
                 partial     proceeds         total                       in this       the end of     committed                                         expected    the project
 promised                                               the end of the                                                           condition    current
               change (if   committed      investment                      year         the period    investment      period                              benefits   feasibility
                                                           period①                                                      (%)        for its      year
                  any)                                                                      ②          amount by
                                                                                                                                 intended
                                                                                                       the end of     ④=②/
                                                                                                                                     use
                                                                                                       the period        ①
                                                                                                       ③=②-①
R&D and
industrializ
ation of
new                                                                                                                             March
               No change    31,300.00      31,300.00     31,300.00       3,302.59       12,174.06      -19,125.94      38.89                      N/A    N/A         No
generation                                                                                                                      2022
of laser
display
products
R&D center
at the head
                                                                                                                                August
office of      No change    28,400.00      28,400.00     28,400.00       1,013.90        2,321.00      -26,079.00      8.17                       N/A    N/A         No
Appotronic
s
Information
system                                                                                                                              March
               No change      7,000.00        7,000.00      7,000.00         271.02        1,776.19       -5,223.81       25.37                        N/A    N/A         No
upgrade and                                                                                                                         2022
building
Supplement
ary working    No change      33,300.00      33,300.00      33,300.00           0         33,539.50                      100.72     N/A                N/A    N/A         No
capital
    Total           -        100,000.00      100,000.00     100,000.00      4,587.51      49,810.75      -50,428.75           -           -                         -           -
                                                          During the implementation of the R&D and industrialization of new generation of laser display products, based on the
                                                          principle of ensuring quality, controlling costs, and reducing risks, the Company acted more diligently in the specific
                                                          planning and use of funds for the projects, which delayed the overall implementation progress expected; the headquarters
                                                          building of the Company is still in construction, as a result, the R&D center at the head office and the information system
Reason for not reaching the planned progress (by
                                                          upgrade and building cannot be implemented in a large scale.
specific investment project)
                                                          As of the date when this Report is released, the Company expects that the aforesaid three proceeds-invested projects will
                                                          not reach the working condition for its intended use on the original scheduled date. Subsequently, the Company will
                                                          evaluate the progress of the project according to the actual situation and request the Board of Directors to review the
                                                          adjustments to the proceed-invested projects.
Description of material changes in project feasibility    No material change
                                                          On July 29, 2019, the Proposal on Replacing Early Funds Invested with Offering Proceeds was reviewed and passed at
                                                          the 16th meeting of the first Board of Directors, approving the Company to replace the invested funds of RMB 18.9584
                                                          million as of July 19, 2019 with the offering proceeds, and replace the offering expenses paid in the amount of RMB
Early investment and replacement of offering proceeds
                                                          Accountants (Special General Partnership), which issued the Assurance Report on Replacement of Funds with Offering
                                                          Proceeds by Appotronics Corporation Limited (Tian Jian Shen [2019] No. 7-393).
Temporarily supplement the working capital with idle
                                                          None
offering proceeds
                                                          On July 21, 2020, the 23rd meeting of the first Board of Directors of the Company reviewed and approved the Proposal
                                                          on the Cash Management of Temporarily Idle Offering Proceeds, agreeing that the Company would conduct cash
                                                          management of temporarily idle offering proceeds up to RMB 670 million, provided that it shall ensure that the normal
                                                          progress of the Company’s investment plan of proceeds would not be affected, and agreeing that the Company would
Cash management of idle offering proceeds, and
                                                          use these proceeds to purchase investment products with high security, good liquidity and guaranteed principal (including
investment in relevant products
                                                          but not limited to structural deposits, agreed deposits, call deposits, time deposits, large certificates of deposit, income
                                                          certificates), among them, the total purchase amount of income certificates shall not exceed RMB 200 million and the
                                                          service life shall not exceed 12 months; and the valid period shall be 12 months from the date of review and approval by
                                                          the Board of Directors and the Board of Supervisors.
Permanently supplement working capital or repay bank
                                                          None
loans with excess offering proceeds
Balance of offering proceeds and reasons thereof          N/A
Other use of offering proceeds                            None
      [Note] In the process of the project, the total wealth management returns of RMB 2.3950 million were derived from the special account of supplementary working
      capital, which have been put into use in the project (supplementary working capital). As of the date of approval for issue of this Report, the special account (Huaxia
      Bank Co., Ltd. Shenzhen Branch (Houhai Subbranch), account number: 10869000000251463) has been deregistered. The interest RMB 1,418.11 incurred after
      completion of the project has been paid to the basic account of the Company to be used as supplementary working capital.
XIII.   Other significant matters
□ Applicable√ N/A
                     Section VII          Changes in Shares and Shareholders
     I.       Changes in ordinary shares
     (I) Statement of changes in ordinary shares
     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 (if any)
     □ Applicable√ N/A
     regulatory authority
     □ Applicable√ N/A
     (II) Changes in non-tradable shares
     □ Applicable√ N/A
     II.      Shareholders
     (I) Total number of shareholders:
       Total number of shareholders of ordinary shares as of the                      11,551
       end of the reporting period
       Total number of shareholders of preferred shares whose                           0
       voting right has been restituted as of the end of the
       reporting period
       Total number of shareholders of shares with special                              0
       voting rights as of the end of the reporting period
     Number of holders of depository receipts
     □ Applicable√ N/A
     (II) Shares held by top 10 shareholders and top 10 holders of tradable shares as of the end of the
     reporting period
     Shares held by top 10 shareholders through both the general securities account and the customer
     credit transaction guarantee securities account of a securities company
     □ Applicable√ N/A
                                                                                                     Unit: Share
                                        Shares held by top 10 shareholders
                Change during     Balance of Percen Number of            Number of                                 Sharehol
Shareholder                                                                                 Shares pledged
                 the reporting    shares held    tage         non-      non-tradable                                 der
(Full name)                                                                                   or frozen
                    period         as at the     (%)        tradable    shares held,                                nature
                               end of the               shares held    including
                               reporting                               the shares
                                 period                                  lent out   Share
                                                                                             Number
                                                                        under the   status
                                                                      refinancing
                                                                      arrangement
                                                                                                      Domesti
Shenzhen                                                                                               c non-
Appotronics                                                                                            stated
Holdings                                                                                               owned
Limited                                                                                               corporati
                                                                                                         on
SAIF IV Hong
                                                                                                       Foreign
Kong (China
                 -20,410,779   33,502,956      7.40           0           0         None       0      corporati
Investments)
                                                                                                         on
Limited
CITIC PE
                                                                                                       Foreign
Investment
                 -7,060,800    30,352,232      6.70           0           0         None       0      corporati
(Hong Kong)
                                                                                                         on
Shenzhen
                                                                                                      Domesti
Yuanshi Laser
                                                                                                       c non-
Industrial
                                                                                                       stated
Investment           0         24,139,500      5.33     24,139,500    24,139,500    None       0
                                                                                                       owned
Consulting
                                                                                                      corporati
Partnership
                                                                                                         on
(LP)
                                                                                                      Domesti
Nantong Strait
                                                                                                       c non-
Appotronics
                                                                                                       stated
Investment       -1,984,408    23,080,329      5.10           0           0         None       0
                                                                                                       owned
Partnership
                                                                                                      corporati
(LP)
                                                                                                         on
Shenzhen                                                                                              Domesti
Appotronics                                                                                            c non-
Daye                                                                                                   stated
Investment                                                                                             owned
Partnership                                                                                           corporati
(LP)                                                                                                     on
Shenzhen                                                                                              Domesti
Appotronics                                                                                            c non-
Hongye                                                                                                 stated
Investment                                                                                             owned
Partnership                                                                                           corporati
(LP)                                                                                                     on
GREEN
                                                                                                       Foreign
FUTURE
                 -3,770,272    12,734,246      2.81           0           0         None       0      corporati
HOLDINGS
                                                                                                         on
LIMITED
Shenzhen                                                                                              Domesti
Jinleijing                                                                                             c non-
Investment                                                                                             stated
Limited                                                                                                owned
Partnership                                                                                           corporati
(LP)                                                                                                     on
Shenzhen                                                                                                      Domesti
Appotronics                                                                                                    c non-
Chengye                                                                                                        stated
Consulting                                                                                                     owned
Partnership                                                                                                   corporati
(LP)                                                                                                             on
                                     Shares held by top 10 holders of tradable shares
                                                     Number of tradable               Type and number of shares
                   Shareholder
                                                         shares held            Category               Number
SAIF IV Hong Kong (China Investments)                                            RMB-
Limited                                                  33,502,956           denominated            33,502,956
                                                                             ordinary share
CITIC PE Investment (Hong Kong) 2016                                             RMB-
Limited                                                  30,352,232           denominated            30,352,232
                                                                             ordinary share
Nantong Strait Appotronics Investment                                            RMB-
Partnership (LP)                                         23,080,329           denominated            23,080,329
                                                                             ordinary share
GREEN FUTURE HOLDINGS LIMITED                                                    RMB-
                                                                             ordinary share
Shenzhen Guochuang Chenggu Capital                                               RMB-
Management Co., Ltd. - Shenzhen Chengguhui                8,114,369           denominated             8,114,369
Equity Investment Partnership (LP)                                           ordinary share
Smart Team Investment Limited                                                    RMB-
                                                                             ordinary share
JPMORGAN CHASE BANK, NATIONAL                                                    RMB-
ASSOCIATION                                               5,930,409           denominated             5,930,409
                                                                             ordinary share
Shenzhen Liansong Capital Management                                             RMB-
Partnership (LP)                                          5,833,817           denominated             5,833,817
                                                                             ordinary share
ICBC-AXA Life Co., Ltd. - Traditional 2                                          RMB-
                                                                             ordinary share
China Merchants Bank Co., Ltd. - One-year                                        RMB-
ABC Huili Strategic Income Hybrid Securities              3,778,794           denominated             3,778,794
Investment Fund                                                              ordinary share
Description of special repurchase shareholders
                                                   N/A
among top 10 shareholders
Description of entrusting voting right, entrusted
voting right and waiver of voting right of the     N/A
shareholder above
                                                   Appotronics Holdings, Yuanshi, Appotronics Daye, Appotronics
                                                   Hongye and Jinleijing are concert parties. The Company has not
Affiliates or concert parties among the            received any notice about affiliates or concert parties among other
shareholders stated above                          shareholders stated above.
                                                   parties as defined in the Administrative Measures for the Acquisition
                                                   of the Listed Companies among other shareholders.
Holders of preferred shares whose voting right
has been restituted and the number of shares       N/A
held by them
Top 10 holders of non-tradable shares and lock-up period
√ Applicable□ N/A
                                                                                               Unit: Share
                                                                      Unlocking of non-
                                                                        tradable shares
                                                   Number of
                                                                                   Number      Lock-up
 No.       Holder of non-tradable shares          non-tradable
                                                                                   of shares    period
                                                   shares held      Unlock date
                                                                                    newly
                                                                                   unlocked
        Shenzhen Appotronics Holdings                               July 22,                 after the
        Limited                                                     2022                     listing
                                                                                             date
        Shenzhen Yuanshi Laser Industrial
                                                                  July 22,                   after the
        (LP)
                                                                                             date
        Shenzhen Appotronics Daye                                 July 22,                   after the
        Investment Partnership (LP)                               2022                       listing
                                                                                             date
        Shenzhen Appotronics Hongye                               July 22,                   after the
        Investment Partnership (LP)                               2022                       listing
                                                                                             date
        Shenzhen Jinleijing Investment                            July 22,                   after the
        Limited Partnership (LP)                                  2022                       listing
                                                                                             date
        Shenzhen Appotronics Chengye                              July 22,                   after the
        Consulting Partnership (LP)                               2022                       listing
                                                                                             date
        BLACKPINE Investment Corp.                                July 22,                   after the
        Limited                                                   2022                       listing
                                                                                             date
        Huatai Venture Capital Investment                         July 22,                   after the
        Co., Ltd.                                                 2021                       listing
                                                                                             date
                                                As of June 30, 2021, among the shareholders of the
                                                restricted shares above, Appotronics Holdings,
                                                Yuanshi, Appotronics Daye, Appotronics Hongye,
 Affiliates or concert parties among the
                                                Jinleijing, Appotronics Chengye, and BLACKPINE
 shareholders stated above
                                                Investment Corp. Limited are concert parties. The
                                                Company has not received any notice about affiliates or
                                                concert parties among other shareholders stated above.
Statement of top 10 holders of domestic depository receipts as of the end of the reporting period
□ Applicable√ N/A
Number of non-tradable depository receipts held by top 10 holders and lock-up period
□ Applicable√ N/A
(III) Statement of top 10 shareholders by number of votes held as of the end of the reporting period
□ Applicable√ N/A
(IV) Strategic investors or general corporations that become top 10 shareholders as a result of
allotment of new shares/depository receipts
□ Applicable√ N/A
III.    Directors, supervisors, senior officers and key technical staff
(I) Changes in shareholding of current directors, supervisors, senior officers and key technical
staff and the former directors, supervisors, senior officers and key technical staff who left the
Company during the reporting period
□ Applicable√ N/A
Other information
□ Applicable√ N/A
(II) Share incentives granted to directors, supervisors, senior officers and key technical staff during
the reporting period
□ Applicable√ N/A
□ Applicable√ N/A
√ Applicable□ N/A
                                                                                             Unit: Share
                                                                                              Number of
                                Number of                                      Number of
                                               Number of        Number of                     restricted
                                 restricted                                     restricted
                                               restricted        restricted                     shares
                              shares already                                   shares that
                                                 shares         shares that                    already
                               granted as at                                   have been
   Name          Title                          granted          could be                     granted as
                              the beginning                                     vested in
                                               during the      vested in the                  of the end
                                   of the                                          the
                                               reporting         reporting                      of the
                                 reporting                                      reporting
                                                 period            period                     reporting
                                   period                                         period
                                                                                                period
             Chairman
                of the
              Board of
   LI Yi     Directors              0           3,500,000             0            0          3,500,000
                & key
              technical
                 staff
             Director &
    BO
               General          100,000         3,500,000           30,000      30,000        3,570,000
 Lianming
              Manager
  WANG       Director &
  Yingxia       CFO
                Board
  YAN Li                        150,000          350,000            15,000      15,000         485,000
             Secretary
                 Key
  HU Fei      technical         100,000          350,000            30,000      30,000         420,000
                 staff
                 Key
  YU Xin      technical          50,000          200,000            15,000      15,000         235,000
                 staff
                   Key
     WANG
                technical        50,000            200,000          15,000          15,000          235,000
      Lin
                  staff
                   Key
   WANG
                technical        40,000            200,000          12,000          12,000          228,000
    Zeqin
                  staff
                   Key
    GUO
                technical        40,000            200,000          12,000          12,000          228,000
  Zuqiang
                  staff
    Total           /           581,400           8,650,000        144,420          144,420        9,086,980
Notes: In August 2021, the directors, supervisors, senior officers and key technical staff of the Company
change, and the above stable shows the grant of Type II restricted shares of the directors, supervisors,
senior officers and key technical staff in office on the disclosure date of this report and their vesting status.
(III) Other information
□ Applicable√ N/A
IV.      Changes in the controlling shareholder or actual controller
□ Applicable√ N/A
V.       Implementation of and changes in arrangements relating to depository receipts during the
         reporting period
□ Applicable√ N/A
VI.      Shares with special voting rights
□ Applicable√ N/A
                                Section VIII Preferred Shares
□ Applicable√ N/A
                                          Section IX Bonds
I.    Enterprise bonds, corporate bonds and non-financial corporate debt financing instruments
□ Applicable√ N/A
II. Convertible corporate bonds
□ Applicable√ N/A
                                   Section X Financial Report
I.  Auditor's report
□ Applicable√ N/A
II. Financial statements
                                    Consolidated Balance Sheet
                                         At June 30, 2021
Prepared by: Appotronics Corporation Limited
                                                                                Unit: Yuan Currency: RMB
               Item                 Note              At June 30, 2021           At December 31, 2020
 Current Assets:
    Cash and bank balances        VII. 1                      923,880,253.21           1,037,760,573.27
    Balances with clearing
 agencies
    Placements with banks and
 other financial institutions
    Held-for-trading financial    VII. 2                                                 114,000,000.00
 assets
    Derivative financial assets
    Notes receivable              VII. 4                        3,798,593.29               3,726,328.91
    Accounts receivable           VII. 5                      168,553,862.09             341,660,832.43
    Receivables financing         VII. 6                        1,214,306.00              11,959,000.00
    Prepayments                   VII. 7                       83,781,122.54              47,447,601.43
    Premiums receivable
    Amounts receivable under
 reinsurance contracts
    Reinsurer's share of
 insurance contract reserves
    Other receivables             VII. 8                       10,381,304.06              12,534,062.15
    Including: Interest
 receivable
           Dividends receivable
    Financial assets purchased
 under resale agreements
    Inventories                   VII. 9                      641,578,029.45             418,812,140.80
    Contract assets               VII. 10                       2,388,492.32               3,744,655.50
    Held-for-sale assets
    Non-current assets due
 within one year
    Other current assets          VII. 13                       49,693,022.76             13,002,195.46
      Total Current Assets                                   2,343,251,973.72          2,004,647,389.95
 Non-current Assets:
    Loans and advances
    Debt investments
    Other debt investments
    Long-term receivables         VII. 16                      13,495,945.96              13,196,087.78
    Long-term equity              VII. 17                                                262,744,772.48
 investments
    Other equity instrument       VII. 18                                                 11,975,419.38
 investments
    Other non-current financial
 assets
    Investment properties
    Fixed assets                  VII. 21                     448,824,286.12             447,571,328.91
    Construction in progress      VII. 22                      88,984,744.00              51,576,850.72
    Bearer biological assets
    Oil and gas assets
    Use right assets              VII. 25                      36,066,334.54
   Intangible assets              VII. 26                  313,157,523.55     320,488,235.60
   Development expenditure
   Goodwill
   Long-term prepaid expenses     VII. 29                     9,976,802.17      11,572,346.79
   Deferred tax asset             VII. 30                   103,610,372.30      96,132,114.02
   Other non-current assets       VII. 31                    15,891,524.06       6,299,781.06
      Total Non-current Assets                            1,307,883,404.75   1,221,556,936.74
         Total assets                                     3,651,135,378.47   3,226,204,326.69
Current Liabilities:
   Short-term borrowings          VII. 32                   28,097,875.42      88,778,852.86
   Loans from the central bank
   Taking from banks and other
financial institutions
   Held-for-trading financial
liabilities
   Derivative financial
liabilities
   Notes payable                  VII. 35                  180,257,484.74     116,822,674.67
   Accounts payable               VII. 36                  272,203,766.10     226,494,815.90
   Receipts in advance            VII. 37                  141,944,076.60     153,258,189.88
   Contract liabilities           VII. 38                   40,048,659.77      31,518,312.59
   Financial assets sold under
repurchase agreements
   Customer deposits and
deposits from banks and other
financial institutions
   Funds from securities
trading agency
   Funds from underwriting
securities agency
   Employee benefits payable      VII. 39                   33,220,367.56      46,105,566.15
   Taxes payable                  VII. 40                   43,934,753.55      19,871,846.94
   Other payables                 VII. 41                  255,483,098.01      59,848,053.83
   Including: Interest payable
            Dividends payable     VII. 41                     3,851,339.04
   Fees and commissions
payable
   Amounts payable under
reinsurance contracts
   Held-for-sale liabilities
   Non-current liabilities due    VII. 43                  146,220,719.05     181,417,412.46
within one year
   Other current liabilities      VII. 44                     3,391,139.20      3,045,831.07
      Total Current Liabilities                           1,144,801,940.00    927,161,556.35
Non-current Liabilities:
   Insurance contract reserves
   Long-term borrowings           VII. 45                  102,690,487.26      64,845,281.53
   Bonds payable
   Including: Preferred shares
            Perpetual bonds
   Leasing liabilities            VII. 47                   18,391,443.49
   Long-term accounts payable     VII. 48                    3,230,050.00        3,262,450.00
   Long-term employee
benefits payable
    Provisions                      VII. 50                   30,519,379.89               28,799,354.65
    Deferred income                 VII. 51                   16,959,926.67               16,723,257.15
    Deferred tax liabilities
    Other non-current liabilities
       Total Non-current                                     171,791,287.31             113,630,343.33
 Liabilities
          Total Liabilities                                 1,316,593,227.31           1,040,791,899.68
 Owners' (or Shareholders')
 Equity:
    Paid-in capital (or share       VII. 53                  452,756,901.00             452,756,901.00
 capital)
    Other equity instruments
    Including: Preferred shares
            Perpetual bonds
    Capital reserve                 VII. 55                 1,360,104,339.28           1,249,020,991.15
    Less: Treasury shares
    Other comprehensive             VII. 57                    -7,977,590.58              -3,214,291.93
 income
    Special reserve
    Surplus reserve                 VII. 59                   35,242,179.57               35,242,179.57
    General risk reserve
    Retained profits                VII. 60                  484,350,453.52             357,793,891.96
    Total owners’ (or
 shareholders’) equity
 attributable to owners of the
 Parent Company
    Minority interests                                        10,065,868.37               93,812,755.26
       Total Owners’ (or
 Shareholders’) Equity
          Total Liabilities and
 Owners’(or Shareholders’)                                  3,651,135,378.47           3,226,204,326.69
 Equity
Legal representative: BO Lianming       Chief Accountant: WANG Yingxia            Person in Charge of the
Accounting Body: LIU Jie
                              Balance Sheet of the Parent Company
                                         At June 30, 2021
Prepared by: Appotronics Corporation Limited
                                                                               Unit: Yuan Currency: RMB
               Item                   Note           At June 30, 2021           At December 31, 2020
 Current Assets:
    Cash and bank balances                                   600,116,631.85             709,932,686.71
    Held-for-trading financial                               320,000,000.00             114,000,000.00
 assets
    Derivative financial assets
    Notes receivable                                           2,584,493.29               2,314,628.91
    Accounts receivable             XVII. 1                  530,618,487.97             567,539,506.79
    Receivables financing                                      1,214,306.00                 100,000.00
    Prepayments                                               16,858,205.85              11,001,439.23
    Other receivables               XVII. 2                   42,129,668.23              71,654,117.57
    Including: Interest
 receivable
            Dividends receivable
   Inventories                                             277,455,657.71     169,022,971.44
   Contract assets                                           2,372,162.32       3,720,160.50
   Held-for-sale assets
   Non-current assets due
within one year
   Other current assets                                       8,623,008.03       1,297,388.01
      Total Current Assets                                1,801,972,621.25   1,650,582,899.16
Non-current Assets:
   Debt investments
   Other debt investments
   Long-term receivables                                    13,495,945.96      13,196,087.78
   Long-term equity                XVII. 3                 433,116,205.54     421,648,284.99
investments
   Other equity instrument                                    7,075,419.38       7,075,419.38
investments
   Other non-current financial
assets
   Investment properties
   Fixed assets                                             52,669,261.18      57,409,189.33
   Construction in progress                                 65,509,824.53      37,982,329.74
   Bearer biological assets
   Oil and gas assets
   Use right assets                                         23,267,911.80
   Intangible assets                                       312,406,262.35     319,438,893.42
   Development expenditure
   Goodwill
   Long-term prepaid expenses                                 6,989,278.66       9,562,162.36
   Deferred tax asset                                        10,135,929.15       6,680,188.67
   Other non-current assets                                   8,005,743.64       5,411,561.28
      Total Non-current Assets                              932,671,782.19     878,404,116.95
         Total assets                                     2,734,644,403.44   2,528,987,016.11
Current Liabilities:
   Short-term borrowings                                                       11,410,560.27
   Held-for-trading financial
liabilities
   Derivative financial
liabilities
   Notes payable                                            34,224,409.65      32,313,678.21
   Accounts payable                                        298,541,730.34     210,885,240.65
   Receipts in advance                                          82,567.18       2,688,210.54
   Contract liabilities                                     28,387,196.86      20,609,190.34
   Employee benefits payable                                21,977,734.49      28,514,763.09
   Taxes payable                                            12,789,462.50       5,830,858.89
   Other payables                                           43,426,696.22      23,058,804.83
   Including: Interest payable
            Dividends payable                                3,851,339.04
   Held-for-sale liabilities
   Non-current liabilities due                              15,704,161.94        1,001,024.66
within one year
   Other current liabilities                                 2,027,052.47       1,918,391.60
      Total Current Liabilities                            457,161,011.65     338,230,723.08
Non-current Liabilities:
   Long-term borrowings                                     32,021,877.44       29,029,715.07
    Bonds payable
    Including: Preferred shares
            Perpetual bonds
    Leasing liabilities                                      10,438,482.41
    Long-term accounts payable                                3,230,050.00                 3,262,450.00
    Long-term employee
 benefits payable
    Provisions                                               15,648,843.74               16,345,891.60
    Deferred income                                          15,085,473.02               14,450,411.10
    Deferred tax liabilities
    Other non-current liabilities
      Total Non-current                                      76,424,726.61               63,088,467.77
 Liabilities
          Total Liabilities                                 533,585,738.26              401,319,190.85
 Owners' (or Shareholders')
 Equity:
    Paid-in capital (or share                               452,756,901.00              452,756,901.00
 capital)
    Other equity instruments
    Including: Preferred shares
            Perpetual bonds
    Capital reserve                                        1,370,268,310.79           1,351,261,718.84
    Less: Treasury shares
    Other comprehensive
 income
    Special reserve
    Surplus reserve                                          33,964,638.84               33,964,638.84
    Retained profits                                        344,068,814.55              289,684,566.58
      Total Owners’ (or
 Shareholders’) Equity
          Total Liabilities and
 Owners’(or Shareholders’)                                 2,734,644,403.44           2,528,987,016.11
 Equity
Legal representative: BO Lianming       Chief Accountant: WANG Yingxia             Person in Charge of the
Accounting Body: LIU Jie
                                    Consolidated Income Statement
                                            Jan. - Jun. 2021
                                                                            Unit: Yuan Currency: RMB
                   Item                       Note           Half year of 2021     Half year of 2020
 I. Total operating income                                    1,104,689,243.59        716,025,207.34
 Including: Operating income             VII. 61              1,104,689,243.59        716,025,207.34
         Interest income
         Premiums earned
         Fee and commission income
 II. Total operating costs                                        998,250,659.71        756,098,193.88
 Including: Operating costs              VII. 61                  723,612,305.19        529,787,789.94
         Interest expenses
         Fee and commission expenses
         Surrenders
         Claims and policyholder
benefits (net of amounts recoverable
from reinsurers)
         Net withdrawal of insurance
contract reserves
         Insurance policyholder
dividends
         Expenses for reinsurance
accepted
         Taxes and levies                VII. 62                   4,331,138.81    2,329,710.56
         Sales expenses                  VII. 63                  89,686,195.83   50,833,894.50
         Administration expenses         VII. 64                  83,960,516.92   77,813,657.09
         R&D expenses                    VII. 65                  95,128,483.66   87,295,450.75
         Financial expenses              VII. 66                   1,532,019.30    8,037,691.04
         Including: Interest expense                              11,013,330.17   11,612,825.87
                 Interest income                                  10,868,184.51    4,618,971.33
   Add: Other income                     VII. 67                  54,890,296.70   32,922,034.97
         Investment income (loss is
                                         VII. 68                   9,128,665.03   11,726,688.51
indicated by “-”)
         Including: Income from
investments in associates and joint                                6,982,738.64      901,894.80
ventures
               Gains from
derecognition of financial assets at
amortized assets (loss is indicated by
“-”)
         Foreign exchange gains (loss
is indicated by “-”)
         Gains from net exposure
hedges (loss is indicated by “-”)
         Gains from changes in fair
                                         VII. 70                  38,175,900.00
values (loss is indicated by “-”)
         Losses of credit impairment
                                         VII. 71                   9,407,031.23    2,170,106.96
(loss is indicated by “-”)
         Impairment losses of assets
                                         VII. 72                 -16,581,239.34   -12,109,681.09
(loss is indicated by “-”)
         Gains from disposal of assets
                                         VII. 73                   2,806,008.82      149,620.91
(loss is indicated by “-”)
III. Operating profit (loss is indicated
by “-”)
   Add: Non-operating income             VII. 74                  22,240,680.14      270,615.48
   Less: Non-operating expenses          VII. 75                     405,501.61      740,701.95
IV. Total profits (total losses are
indicated by “-”)
   Less: Income tax expense              VII. 76                  46,305,525.16    2,693,941.42
V. Net profits (net losses are
indicated by “-”)
(I) Categorized by the continuity of operation
operations (net losses are indicated by                          179,794,899.69    -8,378,244.17
"-")
operations (net losses are indicated by
“-”)
(II) Categorized by the ownership
shareholders of the Parent Company                                    151,413,920.79   14,327,442.96
(net losses are indicated by "-")
minority shareholders (net losses are                                  28,380,978.90   -22,705,687.13
indicated by “-”)
VI. Other comprehensive income, net
                                                                       -4,739,767.89    1,039,650.57
of tax
   (I) Other comprehensive income
that can be attributable to owners of                                  -4,763,298.65    1,013,815.20
the Parent Company, net of tax
that cannot be reclassified
subsequently to profit or loss
(1) Changes from remeasurement of
defined benefit plans
(2) Other comprehensive income that
cannot be reclassified to profit or loss
under the equity method
(3) Changes in fair value of
investments in other equity
instruments
(4) Changes in fair value of
enterprises’ own credit risks
that will be reclassified to profit or                                 -4,763,298.65    1,013,815.20
loss
(1) Other comprehensive income that
will be reclassified to profit or loss                                                   -135,706.31
under the equity method
(2) Changes in fair value of other
debt investments
(3) Amount of financial assets
reclassified to other comprehensive
income
(4) Provision for credit impairment of
other debt investments
(5) Reserve for cash flow hedges
(6) Exchange differences on
translation of financial statements                                    -4,763,298.65    1,149,521.51
denominated in foreign currencies
(7) Others
   (II) Other comprehensive income
that can be attributable to minority                                       23,530.76       25,835.37
shareholders, net of tax
VII. Total comprehensive income                                       175,055,131.80    -7,338,593.60
   (I) Total comprehensive income
that can be attributable to owners of                                 146,650,622.14   15,341,258.16
the Parent Company
   (II) Total comprehensive income
that can be attributable to minority                                   28,404,509.66   -22,679,851.76
shareholders
VIII. Earnings per share:
   (I) Basic earnings per share
(RMB/share)
    (II) Diluted earnings per share
  (RMB/share)
For business combination involving entities under common control occurred during the period, net profit
of the acquiree generated before the business combination is nil, and net profit of the acquiree generated
in prior period is nil.
Legal representative: BO Lianming        Chief Accountant: WANG Yingxia              Person in Charge of
the Accounting Body: LIU Jie
                              Income Statement of the Parent Company
                                          Jan. - Jun. 2021
                                                                             Unit: Yuan Currency: RMB
                    Item                       Note           Half year of 2021     Half year of 2020
 I. Operating income                       XVII. 4               572,827,875.91        384,899,378.41
     Less: Operating costs                 XVII. 4               381,855,853.31        256,660,786.97
          Taxes and levies                                          2,677,366.89          1,352,141.01
          Sales expenses                                           31,778,439.77         27,526,291.43
          Administration expenses                                  51,914,220.61         56,310,385.85
          R&D expenses                                             48,699,043.93         51,085,854.54
          Financial expenses                                      -13,332,493.36         -6,218,121.07
          Including: Interest expense                               1,232,450.71            354,733.03
                  Interest income                                  15,462,791.57          6,827,084.77
     Add: Other income                                             15,069,445.02         26,399,900.47
          Investment income (loss is
                                           XVII. 5                  15,655,417.87         10,824,793.71
 indicated by “-”)
          Including: Income from
 investments in associates and joint
 ventures
                 Gains from
 derecognition of financial assets at
 amortized assets (loss is indicated by
 “-”)
          Gains from net exposure
 hedges (loss is indicated by “-”)
          Gains from changes in fair
 values (loss is indicated by “-”)
          Losses of credit impairment
 (loss is indicated by “-”)
          Impairment losses of assets
                                                                    -9,536,087.28        -10,600,208.60
 (loss is indicated by “-”)
          Gains from disposal of assets
 (loss is indicated by “-”)
 II. Operating profit (loss is indicated
 by “-”)
     Add: Non-operating income                                       2,207,572.56            253,319.61
     Less: Non-operating expenses                                      150,645.92            350,387.34
 III. Total profits (total losses are
 indicated by “-”)
        Less: Income tax expense                                    13,606,250.04          4,758,965.06
 IV. Net profits (net losses are
 indicated by “-”)
     (I) Net profits from continuing
 operations (net losses are indicated by                            78,936,639.81         19,805,911.32
 “-”)
   (II) Net profits from discontinued
operations (net losses are indicated by
“-”)
V. Other comprehensive income, net
of tax
   (I) Other comprehensive income
that cannot be reclassified
subsequently to profit or loss
of defined benefit plans
that cannot be reclassified to profit or
loss under the equity method
investments in other equity
instruments
enterprises’ own credit risks
   (II) Other comprehensive income
that will be reclassified to profit or
loss
that will be reclassified to profit or
loss under the equity method
debt investments
reclassified to other comprehensive
income
impairment of other debt investments
translation of financial statements
denominated in foreign currencies
VI. Total comprehensive income                                        78,936,639.81           19,805,911.32
VII. Earnings per share:
      (I) Basic earnings per share
(RMB/share)
      (II) Diluted earnings per share
(RMB/share)
Legal representative: BO Lianming          Chief Accountant: WANG Yingxia              Person in Charge of the
Accounting Body: LIU Jie
                                  Consolidated Cash Flow Statement
                                           Jan. - Jun. 2021
                                                                                   Unit: Yuan Currency: RMB
              Item                           Note              Half year of 2021         Half year of 2020
 I. Cash Flows from Operating
 Activities:
   Cash receipts from the sale of
goods and the rendering of                                   1,453,487,844.10      857,080,419.89
services
   Net increase in customer
deposits and deposits from banks
and other financial institutions
   Net increase in loans from the
central bank
   Net increase in taking from
banks and other financial
institutions
   Cash receipts from premiums
under direct insurance contracts
   Net cash receipts from
reinsurance business
   Net cash receipts from
policyholders’ deposits and
investment contract liabilities
   Cash receipts from interest,
fees and commissions
   Net increase in taking from
banks
   Net increase in financial assets
sold under repurchase
arrangements
   Net cash received from
securities trading agencies
   Receipts of tax refunds                                          2,222,772.52     4,632,072.61
   Other cash receipts relating to
                                      VII. 78. (1)             113,502,001.69       81,270,397.72
operating activities
      Sub-total of cash inflows
from operating 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
   Other cash payments relating
                                      VII. 78. (2)             133,885,953.26      100,146,106.20
to operating activities
      Sub-total of cash outflows
from operating activities
        Net cash flow from
operating activities
II. Cash Flows from Investing
Activities:
   Cash receipts from disposals
and recovery of investments
   Cash receipts from investment
income
   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                                27,639,815.32     19,930,656.68
assets and other long-term assets
   Cash payments to acquire
investments
   Net increase in pledged loans
receivables
   Net cash payments for
acquisitions of subsidiaries and
other business units
   Other cash payments relating
to investing activities
      Sub-total of cash outflows
from investing activities
        Net cash flows from
                                                              -365,535,026.25       -92,315,802.97
investment activities
III. Cash Flows from Financing
Activities:
   Cash receipts from capital
contributions
   Including: Cash receipts from
capital contributions from
minority shareholders of
subsidiaries
   Cash receipts from borrowings                              113,544,066.34        98,922,683.45
   Other cash receipts relating to   VII. 78. (5)
financing activities
      Sub-total of cash inflows
from financing activities
   Cash repayments of
borrowings
   Cash payments for distribution
of dividends or profits or                                        40,008,875.22     34,547,574.58
settlement of interest expenses
     Including: Payments for                              11,040,000.00
  distribution of dividends or
  profits to minority shareholders
  of subsidiaries
     Other cash payments relating
                                   VII. 78. (6)           31,210,615.17                     22,587.36
  to financing activities
        Sub-total of cash outflows
  from financing activities
           Net cash flows from
  financing activities
  IV. Effect of Foreign Exchange
  Rate Changes on Cash and                                  -649,558.76                  1,108,215.61
  Cash Equivalents
  V. Net Increase in Cash and
                                                        -119,936,926.60              -143,493,438.25
  Cash Equivalents
     Add: Opening balance of cash
  and cash equivalents
  VI. Closing Balance of Cash
  and Cash Equivalents
Legal representative: BO Lianming    Chief Accountant: WANG Yingxia              Person in Charge of
the Accounting Body: LIU Jie
                            Cash Flow Statement of the Parent Company
                                          Jan. - Jun. 2021
                                                                             Unit: Yuan Currency: RMB
                Item                   Note              Half year of 2021         Half year of 2020
 I. Cash Flows from Operating
 Activities:
    Cash receipts from the sale of
 goods and the rendering of                                     695,738,828.66        351,592,568.58
 services
    Receipts of tax refunds                                        539,857.34            3,108,523.77
    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
    Other cash payments relating
 to operating activities
      Sub-total of cash outflows
 from operating activities
    Net cash flow from operating
 activities
 II. Cash Flows from Investing
 Activities:
    Cash receipts from disposals
 and recovery of investments
    Cash receipts from investment
 income
   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                             11,606,321.91      14,697,925.55
assets and other long-term assets
   Cash payments to acquire
investments
   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
                                                              -219,441,298.99     -90,083,071.84
investment activities
III. Cash Flows from
Financing Activities:
   Cash receipts from capital
contributions
   Cash receipts from
borrowings
   Other cash receipts relating to
financing activities
      Sub-total of cash inflows
from financing activities
   Cash repayments of
borrowings
   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
                                                               -37,997,896.71     19,218,197.17
financing activities
IV. Effect of Foreign
Exchange Rate Changes on                                         -269,974.94         295,306.01
Cash and Cash Equivalents
V. Net Increase in Cash and
                                                              -109,833,098.71     -79,482,061.26
Cash Equivalents
   Add: Opening balance of cash
and cash equivalents
VI. Closing Balance of Cash
and Cash Equivalents
Legal representative: BO Lianming   Chief Accountant: WANG Yingxia   Person in Charge of the
Accounting Body: LIU Jie
                                                                         Consolidated Statement of Changes in Owners’ Equity
                                                                                           Jan. - Jun. 2021
                                                                                                                                                                             Unit: Yuan Currency: RMB
                                                                                                                         Half year of 2021
                                                                               Equity attributable to owners of the Parent Company
                                            Other equity instruments                                                                                                                                       Total
  Item                                                                                     Less:           Other                                   General                                    Minority
                                                                                                                                                                                                          Owner's
             Paid-in capital (or share   Preferr                            Capital                                      Special       Surplus               Retained                         interests
                                                                                         Treasury     comprehensive                                 risk                 Others   Sub-total               Equity
                     capital)                      Perpetual                reserve                                      reserve       reserve                profits
                                           ed                   Others                     shares         income                                   reserve
                                                    bonds
                                         shares
I. Closing
balance of                                                                                                       -                                                                                        2,185,
the                 452,756,901.00                                                                     3,214,291.9                                                                                        412,42
preceding                                                                     991.15                                                         57                  91.96            9,671.75       55.26
year
Add:
Changes                                                                                                                                                                                              -
in                                                                                                                                                           44,270.33                        11,248.6
accountin                                                                                                                                                                                3                   .69
g policies
      Corr
ections of
prior
period
errors
      Busi
ness
combinati
on
involving
entities
under
common
control
      Othe
rs
II.
Opening                                                                                                          -                                                                                        2,185,
balance of                                                                1,249,020,                                                 35,242,179.             357,838,1            2,091,64    93,801,5
the                 452,756,901.00                                                                     3,214,291.9                                                                                        445,44
current                                                                                                          3                                                                                          8.70
year
III.
Changes
for the                                    -                                      -   149,09
year           111,083,3                            126,512,2   232,832,
(decrease                        4,763,298.6                               83,735,6   6,702.
is                                         5                                  38.25       46
indicated
by “-”)
(I) Total                                  -                                          175,05
comprehe                                            151,413,9   146,650,   28,404,5
nsive                            4,763,298.6                                          5,131.
income                                     5                                              80
(II)
Owners’                                                                           -
contributi     111,083,3                                        111,083,              9,983,
ons and                                                                    101,100,
reduction                                                                    147.91
in capital
Ordinary                                                                              20,175
shares                                                                     20,175,4
contribute                                                                            ,439.0
d by                                                                                       0
owners
contributi
on from
holders of
other
equity
instrumen
ts
based                                                              03.38       7.84   ,621.2
payment
recognize
d in                3.38
owners'
equity
(III) Profit                                                                               -
distributio                                                 -          -          -
n                                                   24,901,62   24,901,6   11,040,0
                                                                                      ,629.5
Transfer
to surplus
reserve
Transfer
to general
reserve
Distributi                                                                   -
ons to                                        -          -          -
owners                                24,901,62   24,901,6   11,040,0
(or                                                                     ,629.5
sharehold                                                                    6
ers)
(IV)
Transfers
within
owners’
equity
Capitaliza
tion of
capital
reserve
Capitaliza
tion of
surplus
reserve
offset by
surplus
reserve
d earnings
carried
forward
from
changes
in defined
benefit
plans
d earnings
carried
forward
from
other
comprehe
nsive
income
(V)
Special
reserve
Transfer
to special
reserve in
the period
Amount
utilized in
the period
(VI)
Others
IV.
Closing                                                                                                         -                                                                                          2,334,
balance of                                                              1,360,104,                                                 35,242,179.             484,350,4              2,324,47    10,065,8
the                452,756,901.00                                                                     7,977,590.5                                                                                          542,15
current                                                                                                         8                                                                                            1.16
year
                                                                                                         Half year of 2020
                                                                                                                                                                                                           Total
                                                                                                                                                                                             Minority      Owne
                                                                        Equity attributable to owners of the Parent Company
                                                                                                                                                                                             interests       r's
    Item                                                                                                                                                                                                   Equity
                                        Other equity instruments                            Less:            Other                               General
               Paid-in capital                                                                                           Special       Surplus              Retained               Sub-
                                                                         Capital reserve   Treasury      comprehensive                            risk                   Others
              (or share capital)   Preferred     Perpetua                                                                reserve       reserve               profits               total
                                                               Others                       shares          income                               reserve
                                    shares       l bonds
I. Closing
balance of                                                                                                                                                                        1,974,5                  2,124,2
the           451,554,411.00                                                                              3,287,063.85                                                            59,837.                  09,143.
preceding
year
Add:
Changes in                                                                                                                                                 1,278,734.8            1,278,7                  632,22
                                                                                                                                                                                             -646,507.57
accounting                                                                                                                                                           8              34.88                    7.31
policies
      Correct
ions of prior
period errors
      Busine
ss
combination
involving
entities
under
common
control
      Others
II. Opening
balance of                       1,207,942,318.                            22,800,22   290,254,55              149,002,79
the current                                 37                                  4.13         5.17                    8.61
year                                                                                                     52                      13
III. Changes
for the year                                                                                     -         -             -         -
(decrease is                     16,084,702.84              1,013,815.20               19,539,137.   2,440,6   21,188,011.   23,628,
indicated by                                                                                   87      19.83           12     630.95
“-”)
(I) Total                                                                                                                -         -
comprehensi                                                                            14,327,442.   15,341,
ve income                                                                                      96     258.16
(II) Owners’
contribution
s and                            16,084,702.84
reduction in
capital
shares
contributed
by owners
contribution
from holders
of other
equity
instruments
based
payment                                                                                              16,084,   1,491,840.6   17,576,
recognized                                                                                            702.84             4    543.48
in owners'
equity
(III) Profit                                                                                     -         -                       -
distribution                                                                           33,866,580.   33,866,                 33,866,
to surplus
reserve
to general
reserve
Distribution
                                                   -         -         -
s to owners
(or
shareholders                                     83     580.83    580.83
)
(IV)
Transfers
within
owners’
equity
Capitalizatio
n of capital
reserve
Capitalizatio
n of surplus
reserve
offset by
surplus
reserve
earnings
carried
forward
from
changes in
defined
benefit plans
earnings
carried
forward
from other
comprehensi
ve income
(V) Special
reserve
to special
reserve in
the period
utilized in
the period
(VI) Others
IV. Closing
balance of                                                            1,224,027,021.                                         22,800,22            270,715,41                       127,814,78
the current                                                                      21                                               4.13                  7.30                             7.49
year                                                                                                                                                                        69                       18
  Legal representative: BO Lianming               Chief Accountant: WANG Yingxia                    Person in Charge of the Accounting Body: LIU Jie
                                                           Statement of Changes in Owners’ Equity of the Parent Company
                                                                                   Jan. - Jun. 2021
                                                                                                                                                                   Unit: Yuan Currency: RMB
                                                                                                       Half year of 2021
                            Paid-in capital      Other equity instruments                               Less:           Other
              Item                                                                                                                  Special      Surplus          Retained         Total Owner's
                               (or share      Preferred   Perpetual               Capital reserve     Treasury      comprehensive
                                                                       Others                                                       reserve      reserve           profits            Equity
                                capital)       shares      bonds                                       shares          income
    I. Closing balance
    of the preceding       452,756,901.00                                        1,351,261,718.84                                             33,964,638.84    289,684,566.58     2,127,667,825.26
    year
    Add: Changes in
    accounting                                                                                                                                                  349,237.72          349,237.72
    policies
          Corrections
    of prior period
    errors
          Others
    II. Opening
    balance of the         452,756,901.00                                        1,351,261,718.84                                             33,964,638.84    290,033,804.30     2,128,017,062.98
    current year
    III. Changes for
    the year (decrease                                                            19,006,591.95                                                                54,035,010.25       73,041,602.20
    is indicated by “-”)
(I) Total
comprehensive                                      78,936,639.81    78,936,639.81
income
(II) Owners’
contributions and
reduction in
capital
contributed by
owners
contribution from
holders of other
equity instruments
payment
recognized in
owners' equity
(III) Profit
                                                   -24,901,629.56   -24,901,629.56
distribution
surplus reserve
owners (or                                         -24,901,629.56   -24,901,629.56
shareholders)
(IV) Transfers
within owners’
equity
of capital reserve
of surplus reserve
surplus reserve
earnings carried
forward from
changes in defined
benefit plans
earnings carried
forward from
other
comprehensive
income
(V) Special
reserve
special reserve in
the period
in the period
(VI) Others
IV. Closing
balance of the        452,756,901.00                                     1,370,268,310.79                                          33,964,638.84   344,068,814.55     2,201,058,665.18
current year
                                                                                               Half year of 2020
                     Paid-in capital      Other equity instruments                              Less:        Other
      Item                                                                                                               Special     Surplus                           Total Owner's
                       (or share       Preferred   Perpetual             Capital reserve      Treasury   comprehensive                             Retained profits
                                                               Others                                                    reserve     reserve                              Equity
                        capital)        shares      bonds                                      shares       income
I. Closing
balance of the       451,554,411.00                                     1,310,939,867.82                                           21,522,683.40   211,573,548.42     1,995,590,510.64
preceding year
Add: Changes
in accounting
policies
      Corrections
of prior period
errors
      Others
II. Opening
balance of the       451,554,411.00                                     1,310,939,867.82                                           21,522,683.40   211,573,548.42     1,995,590,510.64
current year
III. Changes for
the year
(decrease is
indicated by
“-”)
(I) Total
comprehensive                                     19,805,911.32    19,805,911.32
income
(II) Owners’
contributions
and reduction in
capital
shares
contributed by
owners
contribution
from holders of
other equity
instruments
payment
recognized in
owners' equity
(III) Profit
                                                  -33,866,580.83   -33,866,580.83
distribution
surplus reserve
to owners (or                                     -33,866,580.83   -33,866,580.83
shareholders)
(IV) Transfers
within owners’
equity
of capital
reserve
 of surplus
 reserve
 surplus reserve
 earnings carried
 forward from
 changes in
 defined benefit
 plans
 earnings carried
 forward from
 other
 comprehensive
 income
 (V) Special
 reserve
 special reserve
 in the period
 utilized in the
 period
 (VI) Others
 IV. Closing
 balance of the      451,554,411.00                       1,328,516,411.30                                    21,522,683.40   197,512,878.91   1,999,106,384.61
 current year
Legal representative: BO Lianming     Chief Accountant: WANG Yingxia         Person in Charge of the Accounting Body: LIU Jie
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 and registered in Nanshan Branch of Shenzhen
Administration for Market Administration on October 24, 2006 with the business license numbered
May 31, 2018, the benchmark date, Appotronics Ltd. was changed into a company limited by shares as a
whole. On July 20, 2018, the Company completed the registration in Nanshan Branch of Shenzhen
Administration for Market Administration and headquartered in Shenzhen, Guangdong Province. The
Company now holds the business license with the unified social credit code of 91440300795413991N and
has registered capital amounted to RMB 452,756,901.00. The Company has 452,756,901 shares in total
(with the par value of RMB 1 per share), comprising 169,456,766 restricted outstanding shares and
Stock Exchange on July 22, 2019.
      The Company is in the industry of computer, communication and other electronic equipment
manufacturing. It mainly engages in research and development, production, sales and services of laser
display core devices and complete equipment led by ALPD® laser display technology and architecture, to
apply laser display technology to different scenarios, as well as provision of laser film screening services,
with its main products including, among others, laser cinema projectors, laser TV, smart mini projectors,
laser business education projectors and large venue laser projectors.
      The financial statements herein have been approved by the Company’s second meeting of the second
board of directors on August 24, 2021 for public disclosure.
√ Applicable□ N/A
Appotronics Software Technology Co., Ltd., Shenzhen City Appotronics Xiaoming Technology Co., Ltd.,
Beijing Orient Appotronics Technology Co., Ltd., Fengmi (Beijing) Technology Co., Ltd., CINEAPPO
Laser Cinema Technology (Beijing) Co., Ltd., Shenzhen Appotronics Laser Display Technology Co., Ltd.,
Shenzhen Appotronics Laser Technology Co., Ltd., Qingda Appotronics (Xiamen) Technology Co., Ltd.,
Shenzhen Appotronics Home Line Technology Co., Ltd., Appotronics Hong Kong Limited, Appotronics
USA, Inc., Fabulus Technology Hong Kong Limited, JoveAI Limited, JoveAI Innovation, Inc.,
Appotronics Technology (Changzhou) Co., Ltd., FORMOVIE TECHNOLOGY INC, WEMAX LLC,
Shenzhen Appotronics Display Device Co., Ltd., JoveAI Asia Company Limited, Tianjin Bainian Film
Partnership (LP) and Fengmi (Chongqing) Innovation Technology Co., Ltd. are included by the Company
into the consolidated financial statements for the current period. Refer to descriptions in IIX and IX of
Section X for details.
IV. Basis of preparation of financial statements
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
its actual production and operation characteristics.
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 adopts RMB as its functional currency.
     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
carrying amounts of the assets and liabilities of the acquiree in the consolidated financial statements of the
ultimate controller at the date of combination. The difference between the carrying amount of the owners’
equity of the acquiree as stated in the consolidated financial statements of the ultimate controller and the
carrying amount of the total consideration paid or total par value of the shares issued in connection with
the combination is treated as an adjustment to the capital reserve. In case the capital reserve is not sufficient
to absorb the difference, the remaining balance is adjusted against the retained earnings.
     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 presented in the statement of cash flows comprises cash on hand and deposits that can be readily
withdrawn on demand. Cash equivalents refer to the enterprise’s short-term, highly liquid investments that
are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes
in value.
√ 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, the accounts receivable, if do not contain any significant
financing component or are recognized by the Company without taking into consideration the financing
components under the contracts with a term of less than one year upon initial recognition, are initially
measured at transaction price defined in the Accounting Standard for Business Enterprises No. 14 -
Revenue.
      (2) Subsequent measurement of financial assets
      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 equity instruments at fair value through other comprehensive income are subsequently
measured at fair value. Dividends received (other than those received as recovery of investment cost) are
recognized in profit or loss for the current period, and other gains or losses are recognized in other
comprehensive income. Upon derecognition, the accumulated gains or losses previously recognized in
other comprehensive income are transferred to retained earnings.
      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.
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.
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.
obligations thereon have been 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 carrying amount of the financial asset transferred at the date of derecognition; and (2) the sum of
the consideration received from the transfer and the portion of the accumulated amount of changes in fair
value directly recorded as other comprehensive income originally that corresponds to the part
derecognized (where the financial asset transferred is an investment in debt instruments at fair value
through other comprehensive income) is recognized in profit or loss for the current period. If part of a
financial asset is transferred and the part transferred entirely meets the criteria for derecognition, the total
carrying amount of the financial asset immediately prior to the transfer is allocated between the part
derecognized and the part not derecognized in proportion to their relative fair value at the date of transfer,
and the difference between (1) the carrying amount of the part derecognized; and (2) the sum of the
consideration received from the transfer of the part derecognized and the portion of the accumulated
amount of changes in fair value directly recorded as other comprehensive income originally that
corresponds to the part derecognized (where the financial asset transferred is an investment in debt
instruments at fair value through other comprehensive income) is recognized in profit or loss for the
current period.
      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 accounts receivable and contract assets that arise from the transactions regulated
under the Accounting Standard for Business Enterprises No. 14 - Revenue that do not contain any
significant financing component or are recognized by the Company without taking into consideration the
financing components under the contracts with a term of less than one year, the Company uses the simple
measurement method and recognizes a loss allowance equal to the lifetime expected credit loss.
      With respect to lease receivable, as well as accounts receivable and contract assets that arise from the
transactions regulated under the Accounting Standard for Business Enterprises No. 14 - Revenue
containing significant financing components, the Company uses the simple measurement method and
recognizes a loss allowance equal to the lifetime expected credit losses.
      With respect to financial assets not using the measurement methods stated above, at each balance
sheet date, the Company assesses whether the credit risk has increased significantly since initial
recognition, and recognizes a loss allowance equal to the lifetime expected credit loss if the credit risk has
increased significantly since initial recognition, or to the expected credit losses within the next 12 months
if the credit risk has not increased significantly since initial recognition.
      The Company uses reasonable and supportable information, including forward-looking information,
and compares the possibility of default at the balance sheet date with the possibility of default upon initial
recognition, to determine whether the credit risk of the financial instruments has increased significantly
since initial recognition.
      At the balance sheet date, if the Company determines that a financial instrument only has low credit
risk, the Company assumes that its credit risk has not increased significantly since initial recognition.
      The Company assesses expected credit risk and measures expected credit losses of financial
instruments individually or collectively. When assessing the financial instruments collectively, the
Company includes the financial instruments in different groups according to their common risk
characteristics.
      At each balance sheet date, the Company re-assesses the expected credit losses, with the amount of
increase in or reversal of loss allowance recognized in profit or loss for the current period as impairment
losses or gains. With respect to a financial asset at amortized cost, its carrying amount recorded in the
balance sheet is written off against the loss allowance. With respect to an investment in debt instruments
at fair value through other comprehensive income, the Company recognizes the loss allowance in other
comprehensive income, without reducing its carrying amount.
      (2) Financial instruments for which expected credit risk is assessed and expected credit losses are
measured collectively
                 Item                  Basis for determining a group          Method for measuring
                                                                              expected credit losses
 Other receivables - group of
                                                                       By reference to historic credit
 deposit and security receivable
                                         Nature of receivables         loss experience, and taking
 Other receivables- group of                                           into account the current
 withholding receivable                                                situations and prediction of
 Other receivables - group of          Receivables from related        future economic conditions,
 receivables from related parties       parties in the scope of        calculate the expected credit
 in the scope of consolidation              consolidation              losses according to the default
 Other receivables - grouping                                          risk exposure and 12-month or
                                                 Aging
 by aging
             Item                 Basis for determining a group          Method for measuring
                                                                         expected credit losses
Long-term receivables -                                            rate of lifetime expected credit
                                               Aging
grouping by aging                                                  loss.
    (3) Accounts receivable for which expected credit losses are measured collectively
                                    Basis for determining a group      Method for measuring expected
                Item
                                                                                 credit losses
Bank acceptance bills receivable                                      By reference to historic credit
Commercial acceptance bills        Type of notes                      loss experience, and taking into
receivable                                                            account the current situations
                                                                      and prediction of future
                                                                      economic conditions, calculate
Accounts receivable - group of     Receivables from related
                                                                      the expected credit losses
receivables from related parties   parties in the scope of
                                                                      according to the default risk
in the scope of consolidation      consolidation
                                                                      exposure and rate of lifetime
                                                                      expected credit loss.
                                                                      By reference to historic credit
                                                                      loss experience, and taking into
                                                                      account the current situations
                                                                      and prediction of future
Accounts receivable - grouping                                        economic conditions, prepare a
                                   Aging
by aging                                                              comparison table of the aging of
                                                                      accounts receivable and rate of
                                                                      lifetime expected credit loss,
                                                                      and calculate the expected credit
                                                                      losses.
                                                                      By reference to historic credit
                                                                      loss experience, and taking into
                                                                      account the current situations
Contract assets - group of
                                   Contract assets from related       and prediction of future
contract assets from related
                                   parties in the scope of            economic conditions, calculate
parties in the scope of
                                   consolidation                      the expected credit losses
consolidation
                                                                      according to the default risk
                                                                      exposure and rate of lifetime
                                                                      expected credit loss.
                                                                      By reference to historic credit
                                                                      loss experience, and taking into
                                                                      account the current situations
                                                                      and prediction of future
Contract assets - grouping by                                         economic conditions, prepare a
                                   Aging
aging                                                                 comparison table of the aging of
                                                                      account assets and rate of
                                                                      lifetime expected credit loss,
                                                                      and calculate the expected credit
                                                                      losses.
expected credit loss
                                                                         Accounts receivable
                          Aging                                Rate of expected credit loss for accounts
                                                                           receivable (%)
 Within 1 year (including, the same below)                                       5.00
 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 mainly include finished goods or commodities held for sale in the ordinary course of
businesses, work in progress in the process of production or materials and supplies consumed in the
process of production or rendering service.
      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 realisable value. If
the net realisable value is below the cost of inventories, a provision for decline in value of inventories is
made. For inventories directly used for sale, the net realizable value is determined as the estimated selling
price in the ordinary course of business less the estimated costs necessary to make the sale and relevant
taxes. For inventories required for processing, the net realizable value is determined as the estimated
selling price of finished goods in the ordinary course of business less the estimated costs of completion,
and the estimated costs necessary to make the sale and relevant taxes. As at the balance sheet date, if in
the same item of inventories, some are agreed with contractual prices while the others are not, the net
realizable value for such inventories is determined separately, and compared with the costs of the two parts
of inventories distinctively, as to determine the provisions or reversal of provisions for decline in value of
inventories separately.
      The perpetual inventory system is maintained for stock system.
      (1) Low cost and short-lived consumable items
      Low cost and short-lived consumable items are amortized using the immediate write-off method.
      (2) Packaging materials
      Low cost and short-lived consumable items are amortized using the immediate write-off method.
(1).Recognition method and criteria of contract assets
√ Applicable□ N/A
      The Company presents contract assets or contract liabilities in the balance sheet according to the
relationship between the satisfaction of performance obligation and customers’ payment. The contract
assets and contract liabilities under the same contract are presented in net amount after offsetting each
other.
      The Company presents its owned right to unconditionally (that is, only depending on the lapse of
time) receive consideration from customers as the accounts receivable, and the right to receive the
consideration for which the goods that have been transferred to customers (that is, depending on factors
other than the lapse of time) as the contract assets.
(2).Method for recognition of expected credit losses of contract assets and relevant accounting
      treatments
√ Applicable□ N/A
      .The method for recognition of expected credit losses of contract assets and relevant accounting
treatments are disclosed in V.10 of Section X in details.
□ 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 unanimous consent of the parties
sharing control. Significant influence is the power to participate in the financial and operating policy
making of an entity, but does not control or jointly control over those policies.
      (1) In case of an equity investment acquired through a business combination involving entities under
common control, if the acquirer pays consideration for the business combination by cash, transfer of non-
monetary assets, assumption of liabilities or issuance of equity securities, the initial investment cost of the
long-term equity investment is the Company’s share of the carrying amount of the owners’ equity of the
acquiree in the consolidated financial statements of the ultimate controller at the date of combination. The
difference between: (i) the initial investment cost of the long-term equity investment; and (ii) the carrying
amount of the consideration paid for the combination or the total par value of the shares issued is treated
as an adjustment to the capital reserve. In case the capital reserve is not sufficient to absorb the difference,
the remaining balance is adjusted against the retained earnings.
      For a long-term equity investment acquired through business combination involving enterprises
under common control that is achieved through multiple transactions by steps, the Company shall judge
whether such transactions constitute a package deal. If such transactions constitute a package deal, the
Company accounts for such transactions as one transaction to acquire control. If such transactions do not
constitute a package deal, the initial investment cost is the Company’s share of the carrying amount of the
owners’ equity of the acquiree in the consolidated financial statements of the ultimate controller at the date
of combination. The difference between: (i) the initial investment cost of the long-term equity investment
at the date of combination; and (ii) the sum of the carrying amount of long-term equity investment before
the combination and the carrying amount of the consideration paid for acquisition of the additional shares
at the date of combination is adjusted against the capital reserve.In case the capital reserve is not sufficient
to absorb the difference, the remaining balance is adjusted against the retained earnings.
      (2) In case of an equity investment acquired through a business combination not involving entities
under common control, the initial investment cost is the fair value of the carrying amount of the
consideration paid for the combination at the date of acquisition.
      For a long-term equity investment acquired through a business combination not involving entities
under common control and achieved through multiple transactions by steps, the accounting treatment
thereof in the separate financial statements is different from that in the consolidated financial statements
as stated below:
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.
a package deal. If such transactions constitute a package deal, the Company accounts for such transactions
as one transaction to acquire control. If such transactions do not constitute a package deal, the Company
re-measures the fair value of the equity held in the acquiree prior to the date of acquisition, and records
the difference between the fair value and the carrying amount as investment income for the current period;
if the equity held in the acquiree prior to the date of acquisition involves other comprehensive income
under equity method, such other comprehensive income is transferred to the income of the period in which
the date of acquisition falls, except for other comprehensive income arising from re-measurement of
changes in net liabilities or net assets of defined benefit plans.
      (3) In the event of no business combination: (3) The initial investment cost is the purchase price
actually paid if it is acquired by cash, or the fair value of the equity securities issued if it is acquired
through issuance of equity securities, or determined in accordance with the Accounting Standards for
Business Enterprises No. 12 -- Debt Restructuring if it is acquired through debt restructuring, or
determined in accordance with the Accounting Standards for Business Enterprises No. 7 -- Exchange of
Non-monetary Assets if it is acquired through exchange of non-monetary assets.
      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.
over the subsidiary
      (1) Separate financial statements
      The difference between the carrying amount of the equity disposed of and the proceeds of disposal
actually received is recognized in profit or loss for the current period. If the remaining equity empowers
the Company to exercise significant influence or joint control over the investee, the remaining equity is
accounted for using the equity method; if the remaining equity does not empower the Company to exercise
control, joint control or significant influence over the investee, the remaining equity is accounted for in
accordance with the Accounting Standards for Business Enterprises No. 22 -- Recognition and
Measurement of Financial Instruments.
      (2) Consolidated financial statements
over the subsidiary which does not constitute a package deal
      Prior to the loss of control, the difference between the proceeds from disposal and the share owned
by the Company in the net assets of the subsidiary in relation to the long-term equity investment disposed
of that is calculated continuously from the date of acquisition or combination is adjusted against the capital
reserve (capital premium). In case the capital premium is not sufficient to absorb the difference, the
remaining balance is adjusted against the retained earnings.
      When losing control over a subsidiary, the remaining equity is re-measured at its fair value at the date
of loss of control. The sum of the consideration received from the disposal of the equity and the fair value
of the remaining equity, net of the share owned by the Company in the net assets of the subsidiary in
relation to the long-term equity investment disposed of as calculated continuously from the date of
acquisition or combination according to the previous shareholding ratio, is recognized in the investment
income for the period in which the control is lost, and the goodwill is reduced accordingly. Other
comprehensive income relating to the equity investment in the subsidiary is transferred to the investment
income for the period in which the control is lost.
over the subsidiary which constitutes a package deal
     The Company accounts for such transactions as one transaction to dispose of and lose its control over
the subsidiary. However, the difference between the proceeds from each disposal before loss of control
and the share owned by the Company in the net assets of the subsidiary in relation to the investment
disposed of is recognized in other comprehensive income in the consolidated financial statements, which
is wholly transferred to the profit or loss in the period in which the control is lost.
(1). Measured at cost
Depreciation or amortization methods
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 value
      Category                                                                            depreciation rate
                         depreciation           period (years)          rate (%)
                                                                                                  (%)
 Machinery and         Straight line                    5                 5.00                   19.00
 equipment             method
 Transportation        Straight line                    5                 5.00                   19.00
 equipment             method
 Electronic            Straight line                   3-5                5.00               19.00-31.67
 equipment and         method
 others
 Operating leased      Straight line                  3, 7               5.00%            31.67%, 13.57%
 equipment             method
(3).Identification basis, valuation method and depreciation method for fixed assets acquired under
    finance leases
□ Applicable√ N/A
√ 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 expenses are capitalized when all of the following conditions are met: 1) capital
expenditure has been incurred; 2) borrowing expenses have been incurred; and 3) activities relating to the
acquisition, construction or production of the asset that are necessary to prepare the asset for its intended
use or sale have commenced.
     (2) Where acquisition and construction or production of a qualified asset is interrupted abnormally
and the interruption period lasts for more than 3 months, the capitalization of the borrowing costs shall be
suspended. The borrowing expenses incurred during these periods shall be recognized as expenses for the
current period until the acquisition, construction or production of a qualifying asset is resumed.
     (3) Capitalization of borrowing expenses shall be ceased when acquisition, construction or production
of the qualifying asset has prepared for its intended use or sale.
     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
Refer to V.42 of Section X for details.
(1). Measurement, service life and impairment test
√ Applicable□ N/A
      An intangible asset with a finite useful life is amortized over its useful life in a systematical and
rational expected realization of economic benefits relative to the intangible asset, or is amortized using the
straight-line method if it is impossible to determine expected realization reliably. The specific years are as
follows:
                          Item                                       Amortization period(years)
 Land use rights                                                                   30
 Patents                                                                           10
 Software                                                                          3-5
(2). Accounting policy on internal research and development expenditures
□ Applicable√ N/A
√ Applicable□ N/A
     For long-term equity investments, fixed assets, construction in progress, intangible assets with a finite
useful life, use right assets and other long-term assets, if there’s an indication of impairment at the balance
sheet date, the Company assesses their recoverable amount. Goodwill arising from business combinations
and intangible assets with an infinite useful life are tested for impairment every year regardless of whether
there’s an indication of impairment. Goodwill is tested for impairment together with the relevant groups
of assets or combinations of groups of assets.
     If the recoverable amount of a long-term asset is less than its carrying amount, the difference is
measured as impairment loss of the asset and recognized in profit or loss for the current period.
√ 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 satisfaction of performance obligation and customers’ payment. The contract
assets and contract liabilities under the same contract are presented in net amount after offsetting each
other..
      The Company presents the obligations to transfer goods to customers for the consideration received
or receivable from customers as the contract liabilities.
     The Employee benefits encompass short-term employee benefits, post-employment benefits,
termination benefits and other long-term employee benefits.
(1) Accounting treatment of short-term employee benefits
√ Applicable□ N/A
     The short-term employee benefits actually incurred are recognized as liabilities in the accounting
period during which employee services are rendered, and included in profit or loss for the current period
or the cost of related assets.
(2) Accounting treatment of post-employment benefits
√ Applicable□ N/A
      Post-employment benefits are classified into defined contribution plans and defined benefit plans.
      (1) In the accounting period during which employee services are rendered, the amount in contribution
as calculated according to the defined contribution plan is recognized as liabilities and included in profit
or loss for the current period or the cost of related assets.
      (2) The accounting treatment of a defined benefit plan generally involves the following steps:
assumptions to estimate demographic variables and financial variables, measure the obligation arising
from the defined benefit plan and determine the period to which the relevant obligation belongs.
Meanwhile, discount the obligation arising from the defined benefit plan, in order to determine the present
value of the benefit plan obligation and the current service cost.
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
     When the Company can no longer withdraw the offer of termination benefits as a result of termination
of employment or redundancy, or recognizes the restructuring costs or expenses relating to payment of
termination benefits, whichever the earlier, the employee benefit liabilities arising from recognition of
termination benefits are recognized in profit or loss for the current period.
(4) Accounting treatment of other long-term employee benefits
√ Applicable□ N/A
     Other long-term employee benefits are accounted for in accordance with the provisions applicable to
defined contribution plans if they are qualified as defined contribution plans, otherwise, are accounted for
in accordance with the provisions applicable to defined benefit plans. In order to simplify the accounting
treatment, the total net amount of the cost of employee benefits arising from the defined benefit plans that
is recorded as service cost, net interest on the net liabilities or net assets of other long-term employee
benefits, changes arising from re-measurement of the net liabilities or net assets of other long-term
employee benefits and other components is included in profit or loss for the current period or the cost of
related assets.
√ Applicable□ N/A
Refer to V.42 of Section X for details.
√ 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.
present obligation. The carrying amount 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) Cash-settled share-based payments
      Cash-settled share-based payments in exchange for services rendered by employees that can be
executed immediately upon being granted, are recognized as related costs or expenses based on the fair
value of liabilities assumed by the Company at the grant date, with a corresponding increase in liability.
At each balance sheet date during the vesting period, cash-settled share-based payments in exchange for
services rendered by employees that cannot be executed until services in the vesting period are completed
or required performance conditions are satisfied, are measured at the fair value of liabilities assumed by
the Company based on the best estimate of exercisable conditions, and recognized as related costs or
expenses and relevant liabilities.
      (3) Modification and termination of share-based payment plan
      In case the Company modifies a share-based payment plan, if the modification increases the fair value
of the equity instruments granted, the Company will include the incremental fair value of the equity
instruments granted in the measurement of the amount recognized for services received. If the
modification increases the number of the equity instruments granted, the Company will include the fair
value of additional equity instruments granted in the measurement of the amount recognized for services
received. If the Company modifies the exercisable conditions of the share-based payment plan in a manner
beneficial to the employee, the Company will consider the modified exercisable conditions when dealing
with exercisable conditions.
      If the modification decreases the fair value of the equity instruments granted, the Company will
continue to measure the amount recognized for services received at the fair value of the equity instruments
at the grant date without including the decremental fair value of the equity instruments. If the modification
decreases the number of the equity instruments granted, the Company will treat the decreased number as
the cancelled number of equity instruments granted. If the Company modifies the exercisable conditions
in a manner unbeneficial to the employee, the Company will not consider the modified exercisable
conditions when dealing with exercisable conditions.
      If cancellation or settlement of the equity instruments granted occurs (not due to unsatisfaction of
exercisable conditions) during the vesting period, the Company will account for the cancellation or
settlement of the equity instruments granted as an acceleration of vesting, and recognize immediately the
amount that otherwise would have been recognized over the remainder of the vesting period.
□ 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 irresplaceable
uses, and the Company has the right to collect payment for the cumulative performance that has been
completed up to date throughout the term of the contract.
      For the obligation performed over time, the Company recognizes the revenue based on the
performance progress over time. When the performance progress cannot be reasonably determined, and
the costs incurred are expected to be recoverable, revenue is recognized to the extent of costs incurred
until the performance progress can be reasonably determined. For the obligation performed at a certain
point in time, the revenue is recognized at the time point when the customer obtains the control of the
related goods and services. When judging whether the customer has obtained the control of goods, the
Company considers the followings signs: (1) the Company has the current right to receive payment for
such goods, that is, the customer has the current obligation to make payment for such goods; (2) the
Company has transferred the legal ownership of such goods to the customer, that is, the customer has the
legal ownership of such goods; (3) the Company has transferred such goods to the customer physically,
that is, the customer has taken possession of such goods physically; (4) the Company has transferred
material risks and rewards of such goods to the customer, that is, the customer has obtained material risks
and rewards of such goods; (5) the customer has accepted such goods; and (6) other signs that the customer
has obtained control of such goods.
      (1) The Company measures revenue based on the transaction price allocated to each individual
performance obligation. The transaction price is the amount of consideration to which the Company is
entitled arising from the transfer of goods or services to the customer, excluding the amount collected on
behalf of a third party and expected to be returned to the customer.
      (2) If there is variable consideration in the contract, the Company determines the best estimate of the
variable consideration based on the expected value or the most likely amount. However, variable
consideration is included in the transaction price if, and to the extent that, it is highly probable that its
inclusion will not result in a significant revenue reversal of accumulatively recognized revenue in the
future when the uncertainty has been subsequently resolved.
      (3) If there is a major financing component in the contract, the Company determines the transaction
price based on the presumed amount payable in cash when the customer obtains the control of goods or
services. The difference between such transaction price and the contract consideration is amortized over
the period of the contract using the effective interest method. If on the commencement of a contract, the
Company expects that the customer’s acquisition of control of goods or services is not more than one year
from the customer’s payment therefor, the major financing component in the contract will not be
considered.
      (4) If the contract has two or multiple performance obligations, the Company, on the commencement
of a contract, allocates the transaction price to each individual performance obligation in the contract by
reference to relative standalone selling prices of goods promised thereby.
      (1) Revenue from sales of goods
      The performance obligation concerning sales of goods (primarily dividing into goods sold to the
domestic market and goods exported to overseas markets) by the Company is taken as one satisfied at a
certain point in time for the recognition of revenue.
      Goods sold to the domestic market: 1) Under the direct sale model and the distribution model, the
Company recognizes the revenue when the goods sent have been delivered to customers with customers’
receipt given to the Company. For goods sold attached with return conditions, the Company recognizes
the revenue according to the amount of consideration to which it expects to be entitled in exchange for
transferring goods to customers, and recognize the liabilities according to the expected amount to be
returned due to sales return against the revenue; for goods required for installment and inspection after
sales, the Company recognizes the revenue when such goods have been installed and inspected with
customers’ acceptance certificate given to the Company; for goods sold to lower-tier end customers whose
selling profits are shared by the Company, the Company recognizes the revenue when such goods are
delivered to the customers and reconciliation is conducted according to the mutually predetermined price
of the goods, and recognizes the share of the profits when the selling profits of the goods are realized
according to the share statement. 2) Under the commissioned sales model, the Company recognizes the
revenue when it receives the list of commissioned sales from the customer.
      Goods exported to overseas markets: The Company mainly adopts FCA for export of goods. Under
this mode, the Company recognizes revenue when it delivers goods at the designated location with export
customs clearance procedures completed.
      (2) Other incomes
      Any other performance obligation of the Company is taken as one satisfied over time/at a certain
point in time for the recognition of revenue. For installation services provided by the Company, the
Company recognizes the revenue when it has completed the services and received customers’ acceptance
certificate; for repair and maintenance services provided by the Company, the Company recognizes the
revenue when it has completed the services and received payments; for patent licensing services provided
by the Company, the Company recognizes the revenue when the patent licensing is completed and handed
over; and for technology development services provided by the Company, the Company recognizes the
revenue when it has completed the services or when the agreed time point of service acceptance is reached.
(2).Description of differences in the accounting policies in revenue recognition due to different
    operating modes adopted for the same business type
□ Applicable√ N/A
√ Applicable□ N/A
     The incremental costs incurred for acquiring the contract (i.e. costs that will not be incurred without
acquisition of the contractt) are recognized as an asset if they are expected to be recovered, and are
amortized on the same basis as that for recognizing the revenue of goods or services relating to such asset
and included in the current profit or loss. Where the amortization period for such asset is less than one
year, the Company includes the costs in the current profit or loss when they are incurred. Other
expenditures incurred by the Company for obtaining the contract are included in current profit or loss
when they are incurred, except for those specified to be borne by the customer.
     The costs incurred by the Company for performing a contract are recognized as an asset if they do
not fall within the scope of Accounting Standards for Business Enterprises other than those concerning
revenue and meet all the following conditions: (1) the costs are directly related to a present or expected
contract; (2) the costs lead to the increase in resources of the Company for fulfilling its performance
obligations in the future; and (3) the costs are expected to be recovered. The aforesaid asset is amortized
on the same basis as that for recognizing the revenue of goods or services relating to such asset and
included in the current profit or loss.
√ 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 carrying
amount of the relevant assets or recognized as deferred income. Government grants related to assets
recognized as deferred income shall be included in profit or loss over the service life of the relevant assets
on a reasonable and systemic basis. Government grants measured at nominal amount are directly
recognized in profit or loss for the current period. In case of sale, transfer, retirement or damage of the
relevant assets before the end of intended service life, the balance of the unallocated deferred income is
transferred to profit or loss for the period in which the assets are disposed of.
      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
an item not recognized as asset or liability whose tax base can be determined according to the applicable
tax law, the difference between its tax base and carrying amount) is recognized as a deferred tax asset or
deferred tax liability according to the tax rate applicable to the period in which the asset or liability is
expected to be recovered or settled.
will be available in future periods against which deductible temporary differences are deductible. At the
balance sheet date, deferred tax assets not recognized in prior periods are recognized if there’s conclusive
evidence that it is probable that sufficient taxable income will be available in future periods against which
the deductible temporary differences are deductible.
reduced to the extent that it is no longer probable that sufficient taxable income will be available in future
periods to allow the benefit of the deferred tax assets to be utilized. If it is probable that sufficient taxable
income will be available, the reduced amount is reversed.
income tax expenses or gains, except the income taxes arising from any: (i) business combination; or (ii)
transaction or event directly recognized in owners’ equity.
(1).Accounting treatment of operating leases
□ Applicable√ N/A
(2).Accounting treatment of finance leases
□ Applicable√ N/A
(3).Method for determination and accounting treatments of lease under new lease standards
√ Applicable□ N/A
      A contract whereby the Company transfers or obtains the right to control the use of one or more
identified assets for a certain period of time in exchange for consideration or against payment of
consideration is a lease. On the commencement date of a contract, the Company assesses whether the
contract is a lease or includes a lease.
      (1) Initial measurement
      On the lease inception date, except short-term leases and low-value assets leases, the Company
recognizes the right to use the leased asset during the lease term as use right assets, and recognizes the
present value of the lease payments that have not been paid as lease liabilities. When calculating the
present value of the lease payments, the interest rate implicit in the lease is adopted as the discount rate;
or the lessee’s incremental borrowing rate is adopted as the discount rate where it is unable to determine
the interest rate implicit in the lease.
      (2) Subsequent measurement
      The Company accrues depreciation for the use right assets using the straight-line method. Where
there is reasonable certainty that the Company will obtain ownership of the leased assets upon expiry of
the lease term, the leased assets are depreciated over its residual useful life. Where there is no reasonable
certainty that the Company will obtain ownership of the leased assets upon expiry of the lease term, the
leased assets are depreciated over the lease term or the residual useful life of the leased assets, whichever
is shorter.
      As to a lease liability, the Company calculate the interest expense of the lease liability during each
period of the lease term according to the fixed periodic interest rate, and include it in the current profit or
loss or the relevant asset costs. Variable lease payment not included in the measurement of lease liability
is included in the current profit or loss or the relevant asset costs when actually incurred.
      Where, after the lease inception date, there are changes in the substantial fixed payment, the payables
expected on the basis of the residual value of the guarantee, the index or ratio used for determining the
lease payment, the evaluation results or actual exercising of purchase option, renewal option or lease
termination option, the Company re-measures the lease liability as per the present value of the lease
payment after change, and adjust the book value of the use right assets accordingly. Where the book value
of the use right asset has been reduced to zero, but the lease liability still needs to be further reduced, the
Company includes the residual amount in the current profit or loss.
      (3) Short-term lease and low-value assets lease
      For short-term lease (a lease with a lease term of not more than 12 months from the lease inception
date) and low-value assets lease, the Company adopts simplified treatment method and does not recognize
the use right assets and lease liability, who instead includes the lease payment therefor in the relevant asset
costs and the current profit or loss by the straight-line method or other systematic method during all periods
in the lease term.
      A lease is classified into finance lease or operating lease on the lease inception date based on the
substance of the transaction. Financing lease means a lease that has substantially transferred almost all
risks and remunerations concerning the ownership of the leased assets. Operating lease means a lease other
than financing lease.
      (1) Operating lease
      The Company recognizes the lease receipts of operating lease as rental income by the straight-line
method during all periods in the lease term. Variable lease payment that is relevant to operating lease, and
that is not included in lease receipts is included in the current profit or loss when actually incurred.
      (2) Finance lease
       On the lease inception date, the Company recognizes the receivable financing lease and
derecognizes the financing leased assets. The receivable financing lease is initially measured according to
the net investment in the lease (i.e. the sum of the unguaranteed residual value and the unreceived present
lease receipts discounted at the interest rate implicit in the lease on the lease inception date), and the
interest income during the lease term is calculated and recognized at the fixed periodic interest rate.
Variable lease payment of the Company not included in the measurement of net investment in the lease is
included in the current profit or loss when actually incurred.
□ Applicable√ N/A
(1).Changes in significant accounting policies
√ Applicable□ N/A
                                                                         Remarks (name and amount of
   Changes in accounting policies and                                        line items in financial
                                               Approval procedures
          associated reasons                                               statements that have been
                                                                               materially affected)
  Implement the Accounting Standard for Approved by the                 Refer to V. 44. (3) for details
  Business Enterprises No. 21 - Leases       management of the
  (Cai Kuai [2018] No. 35) amended and Company
  released by the Ministry of Finance
Other description:
     Since January 1, 2021, the Company has implemented the Accounting Standards for Business
Enterprises No. 21 - Leases (Cai Kuai [2018] No. 35) (“New Lease Standards”) amended by the
Ministry of Finance. In accordance with relevant transitional provisions with respect to the old and new
standards, the information for the comparative period is not adjusted, and the retained earnings and
amounts of other relevant items in the financial statements at the beginning of the reporting period are
retrospectively adjusted according to the cumulative effect from implementing the New Lease Standards
on the first implementation date.
(2).Changes in significant accounting estimates
□ Applicable√ N/A
(3).Description of adjustments in opening balances of line items in financial statements of the year
    due to implementation of the New Lease Standards since 2021
√ Applicable□ N/A
                                       Consolidated Balance Sheet
                                                                               Unit: Yuan Currency: RMB
                                    December 31,
              Item                                       January 1, 2021       Adjusted amount
Current Assets:
   Cash and bank balances           1,037,760,573.27     1,037,760,573.27
   Balances with clearing
agencies
   Placements with banks and
other financial institutions
   Held-for-trading financial
assets
   Derivative financial assets
   Notes receivable                    3,726,328.91             3,726,328.91
   Accounts receivable               341,660,832.43           341,660,832.43
   Receivables financing              11,959,000.00            11,959,000.00
   Prepayments                        47,447,601.43            49,174,631.52        1,727,030.09
   Premiums receivable
   Amounts receivable under
reinsurance contracts
   Reinsurer's share of insurance
contract reserves
   Other receivables                  12,534,062.15            12,534,062.15
   Including: Interest receivable
          Dividends receivable
   Financial assets purchased
under resale agreements
   Inventories                       418,812,140.80           418,812,140.80
   Contract assets                     3,744,655.50             3,744,655.50
   Held-for-sale assets
   Non-current assets due within
one year
   Other current assets                13,002,195.46        13,002,195.46
     Total Current Assets           2,004,647,389.95     2,006,374,420.04           1,727,030.09
Non-current Assets:
   Loans and advances
   Debt investments
   Other debt investments
   Long-term receivables              13,196,087.78            13,196,087.78
   Long-term equity investments      262,744,772.48           262,744,772.48
   Other equity instrument
investments
   Other non-current financial
assets
   Investment properties
   Fixed assets                      447,571,328.91           447,571,328.91
   Construction in progress           51,576,850.72            51,576,850.72
   Bearer biological assets
   Oil and gas assets
   Use right assets                                              39,368,070.17   39,368,070.17
   Intangible assets                   320,488,235.60           320,488,235.60
   Development expenditure
   Goodwill
   Long-term prepaid expenses            11,572,346.79        11,572,346.79
   Deferred tax asset                    96,132,114.02        96,455,790.38        323,676.36
   Other non-current assets               6,299,781.06         6,299,781.06
      Total Non-current Assets        1,221,556,936.74     1,261,248,683.27      39,691,746.53
         Total assets                 3,226,204,326.69     3,267,623,103.31      41,418,776.62
Current Liabilities:
   Short-term borrowings                88,778,852.86            88,778,852.86
   Loans from the central bank
   Taking from banks and other
financial institutions
   Held-for-trading financial
liabilities
   Derivative financial liabilities
   Notes payable                       116,822,674.67           116,822,674.67
   Accounts payable                    226,494,815.90           226,494,815.90
   Receipts in advance                 153,258,189.88           153,258,189.88
   Contract liabilities                 31,518,312.59            31,518,312.59
   Financial assets sold under
repurchase agreements
   Customer deposits and
deposits from banks and other
financial institutions
   Funds from securities trading
agency
   Funds from underwriting
securities agency
   Employee benefits payable            46,105,566.15            46,105,566.15
   Taxes payable                        19,871,846.94            19,871,846.94
   Other payables                       59,848,053.83            58,821,952.01   -1,026,101.82
   Including: Interest payable
            Dividends payable
   Fees and commissions payable
   Amounts payable under
reinsurance contracts
   Held-for-sale liabilities
   Non-current liabilities due                                  200,024,423.85   18,607,011.39
within one year
   Other current liabilities             3,045,831.07             3,045,831.07
      Total Current Liabilities        927,161,556.35           944,742,465.92   17,580,909.57
Non-current Liabilities:
   Insurance contract reserves
     Long-term borrowings                    64,845,281.53           64,845,281.53
     Bonds payable
     Including: Preferred shares
             Perpetual bonds
     Leasing liabilities                                             23,804,845.36            23,804,845.36
     Long-term accounts payable               3,262,450.00            3,262,450.00
     Long-term employee benefits
  payable
     Provisions                              28,799,354.65           28,799,354.65
     Deferred income                         16,723,257.15           16,723,257.15
     Deferred tax liabilities
     Other non-current liabilities
       Total Non-current Liabilities       113,630,343.33          137,435,188.69             23,804,845.36
           Total Liabilities             1,040,791,899.68        1,082,177,654.61             41,385,754.93
  Owners' (or Shareholders') Equity:
     Paid-in capital (or share
  capital)
     Other equity instruments
     Including: Preferred shares
             Perpetual bonds
     Capital reserve                     1,249,020,991.15        1,249,020,991.15
     Less: Treasury shares
     Other comprehensive income              -3,214,291.93           -3,214,291.93
     Special reserve
     Surplus reserve                         35,242,179.57           35,242,179.57
     General risk reserve
     Retained profits                      357,793,891.96          357,838,162.29                 44,270.33
     Total owners’ (or
  shareholders’) equity attributable     2,091,599,671.75        2,091,643,942.08                 44,270.33
  to owners of the Parent Company
     Minority interests                      93,812,755.26           93,801,506.62               -11,248.64
       Total Owners’ (or
  Shareholders’) Equity
           Total Liabilities and
  Owners’(or Shareholders’)              3,226,204,326.69        3,267,623,103.31             41,418,776.62
  Equity
Description of adjustments on each line item:
√ Applicable□ N/A
      Since January 1, 2021, the Company has implemented the New Lease Standards for the first time,
recognized the use right assets and lease liabilities, and adjusted relevant items in the financial
statements..
                                  Balance Sheet of the Parent Company
                                                                            Unit: Yuan Currency: RMB
               Item                   December 31, 2020       January 1, 2021     Adjusted amount
Current Assets:
   Cash and bank balances            709,932,686.71           709,932,686.71
   Held-for-trading financial
assets
   Derivative financial assets
   Notes receivable                    2,314,628.91             2,314,628.91
   Accounts receivable               567,539,506.79           567,539,506.79
   Receivables financing                 100,000.00               100,000.00
   Prepayments                        11,001,439.23            13,163,045.06    2,161,605.83
   Other receivables                  71,654,117.57            71,654,117.57
   Including: Interest receivable
            Dividends receivable
   Inventories                       169,022,971.44           169,022,971.44
   Contract assets                     3,720,160.50             3,720,160.50
   Held-for-sale assets
   Non-current assets due within
one year
   Other current assets                 1,297,388.01         1,297,388.01
      Total Current Assets          1,650,582,899.16     1,652,744,504.99       2,161,605.83
Non-current Assets:
   Debt investments
   Other debt investments
   Long-term receivables              13,196,087.78            13,196,087.78
   Long-term equity investments      421,648,284.99           421,648,284.99
   Other equity instrument
investments
   Other non-current financial
assets
   Investment properties
   Fixed assets                       57,409,189.33            57,409,189.33
   Construction in progress           37,982,329.74            37,982,329.74
   Bearer biological assets
   Oil and gas assets
   Use right assets                                            29,494,047.23   29,494,047.23
   Intangible assets                 319,438,893.42           319,438,893.42
   Development expenditure
   Goodwill
   Long-term prepaid expenses           9,562,162.36         9,562,162.36
   Deferred tax asset                   6,680,188.67         7,000,018.34        319,829.67
   Other non-current assets             5,411,561.28         5,411,561.28
      Total Non-current Assets        878,404,116.95       908,217,993.85      29,813,876.90
         Total assets               2,528,987,016.11     2,560,962,498.84      31,975,482.73
Current Liabilities:
   Short-term borrowings              11,410,560.27            11,410,560.27
   Held-for-trading financial
liabilities
  Derivative financial liabilities
  Notes payable                       32,313,678.21           32,313,678.21
  Accounts payable                   210,885,240.65          210,885,240.65
  Receipts in advance                  2,688,210.54            2,688,210.54
  Contract liabilities                20,609,190.34           20,609,190.34
  Employee benefits payable           28,514,763.09           28,514,763.09
  Taxes payable                        5,830,858.89            5,830,858.89
  Other payables                      23,058,804.83           23,058,804.83
  Including: Interest payable
           Dividends payable
  Held-for-sale liabilities
  Non-current liabilities due                                 15,192,394.42   14,191,369.76
within one year
  Other current liabilities            1,918,391.60            1,918,391.60
     Total Current Liabilities       338,230,723.08          352,422,092.84   14,191,369.76
Non-current Liabilities:
  Long-term borrowings                29,029,715.07           29,029,715.07
  Bonds payable
  Including: Preferred shares
           Perpetual bonds
  Leasing liabilities                                         17,434,875.25   17,434,875.25
  Long-term accounts payable           3,262,450.00            3,262,450.00
  Long-term employee benefits
payable
  Provisions                          16,345,891.60           16,345,891.60
  Deferred income                     14,450,411.10           14,450,411.10
  Deferred tax liabilities
  Other non-current liabilities
     Total Non-current                                        80,523,343.02   17,434,875.25
Liabilities
         Total Liabilities           401,319,190.85          432,945,435.86   31,626,245.01
Owners' (or Shareholders') Equity:
  Paid-in capital (or share
capital)
  Other equity instruments
  Including: Preferred shares
           Perpetual bonds
  Capital reserve                  1,351,261,718.84     1,351,261,718.84
  Less: Treasury shares
  Other comprehensive income
  Special reserve
  Surplus reserve                     33,964,638.84           33,964,638.84
  Retained profits                   289,684,566.58          290,033,804.30     349,237.72
     Total Owners’ (or
Shareholders’) Equity
         Total Liabilities and
  Owners’(or Shareholders’)             2,528,987,016.11         2,560,962,498.84             31,975,482.73
  Equity
Description of adjustments on each line item:
√ Applicable□ N/A
     Since January 1, 2021, the Company has implemented the New Lease Standards for the first time,
recognized the use right assets and lease liabilities, and adjusted relevant items in the financial
statements.
(4).Description of retrospective adjustments on comparable data in previous periods upon the first
    implementation of the New Lease Standards from 2021
□ Applicable√ N/A
□ 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 output tax
                                 based on the sales of goods and
                                 taxable labor income calculated
 Value-added tax (VAT)                                                  3%, 6%, 9%, 13%
                                 pursuant to the tax law, net of the
                                 input tax that is allowed to be
                                 deducted in the current period
 City maintenance and
                                 Turnover tax payable                   5%, 7%
 construction tax
 Enterprise income tax            Taxable income
 Education surcharges             Turnover tax payable                  3%
 Local education surcharges       Turnover tax payable                  2%
Disclosure of taxpayers with different rates of enterprise income tax:
√ Applicable□ N/A
                     Taxpayer                                   Rate of enterprise income tax (%)
 Appotronics Corporation Limited                                                                    15.00
 Fengmi (Beijing) Technology Co., Ltd.                                                              15.00
 Appotronics Hong Kong Limited                                                                8.25, 16.50
 Beijing Orient Appotronics Technology Co., Ltd.                                                    20.00
 Fabulus Technology HongKong Limited                                                                16.50
 JoveAI Innovation,Inc.                                                                 8.70, 8.84, 21.00
 Appotronics USA,Inc.                                                                               21.00
 FORMOVIE TECHNOLOGY INC                                                                           21.00
 JoveAI Limited                                                                            Tax exemption
 WEMAX LLC                                                                                         21.00
 Shenzhen Appotronics Display Device Co., Ltd.                                                     20.00
 Appotronics Technology (Changzhou) Co., Ltd.                                                      20.00
 Appotronics Timewaying (Beijing) Technology                                                       20.00
 Co., Ltd.
 Qingda Appotronics (Xiamen) Technology Co.,                                                        20.00
 Ltd.
 Shenzhen Appotronics Home Line Technology                                                          20.00
 Co., Ltd.
 Shenzhen Appotronics Laser Technology Co.,                                                         20.00
 Ltd.
 Shenzhen Appotronics Xiaoming Technology Co.,                                                      20.00
 Ltd.
 JoveAI Asia Company Limited                                                                       20.00
 Tianjin Bainian Film Partnership (LP)                                                     Tax exemption
 Other taxpayers except above                                                                      25.00
     Note:
Kong can apply the two-level income tax system, namely, applying the tax rate of 8.25% for the first HKD
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%.
enterprise income tax rate of 21%.
of 20%.
of 21%.
√ Applicable□ N/A
GR201944204257) jointly issued by Shenzhen Science and Technology Innovation Commission,
Shenzhen Finance Bureau and Shenzhen Tax Service of State Taxation Administration with a valid term
of three years. Therefore, the Company can pay the enterprise income tax at a rate of 15% from 2019 to
Certificate (Certificate No.: GR201811009590) jointly issued by Beijing Municipal Science and
Technology Commission, Beijing Finance Bureau and Beijing Tax Service of State Taxation
Administration with a valid term of three years. It can pay the enterprise income tax at a rate of 15% since
on Value-added Tax Policies for Software Products (Cai Shui [2011] No.100), for self-developed and
produced software products sold by general VAT taxpayers, the tax-refund-upon-collection policy is
applicable to the part of their actual VAT burden in excess of 3% after the VAT has been collected.
Shenzhen Appotronics Software Technology Co., Ltd. is qualified for enjoying such tax incentive from
January 1, 2015.
Administration of Taxation on Implementing the Pilot Program of Replacing Business Tax with Value-
Added Tax in an All-round Manner (Cai Shui [2016] No.36), taxpayers are exempted from VAT if they
provide technology transfer, technology development, and technology consultation and services in
connection therewith. The Company is qualified for enjoying such tax incentive from January 26, 2018.
Administration on Implementing Preferential Income Tax Policies for Micro and Small Enterprises and
Individual Industrial and Commercial Households (2021 No.13), from January 1, 2021 to December 31,
be included in its taxable income at the reduced rate of 12.5%, with the applicable enterprise income tax
rate of 20%; from January 1, 2019 to December 31, 2021, the annual taxable income that is not less than
RMB 1 million nor not more than RMB 3 million shall be included in its taxable income at the reduced
rate of 50%, with the applicable enterprise income tax rate of 20%. The following subsidiaries are qualified
for enjoying such tax incentives: Beijing Orient Appotronics Technology Co., Ltd., Shenzhen Appotronics
Display Device Co., Ltd., Appotronics Technology (Changzhou) Co., Ltd., Appotronics Timewaying
(Beijing) Technology Co., Ltd., Qingda Appotronics (Xiamen) Technology Co., Ltd., Shenzhen
Appotronics Home Line Technology Co., Ltd., Shenzhen Appotronics Laser Technology Co., Ltd. and
Shenzhen Appotronics Xiaoming Technology Co., Ltd..
□ 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                                          5,847.50                                 5,858.56
Bank deposits                                   895,755,732.73                         1,020,747,657.62
Other monetary funds                             28,118,672.98                            17,007,057.09
           Total                                923,880,253.21                         1,037,760,573.27
      Including: Total
     oversea deposits
Other description:
     In other monetary funds, an amount of RMB 20,292,090.37 is restricted for being used as margins;
while in bank deposits, an amount of RMB 40,000,000.00 as time deposit is restricted for being used.
√ Applicable□ N/A
                                                                           Unit: Yuan Currency: RMB
                    Item                        Closing balance                Opening balance
  Financial assets at fair value through               420,000,000.00                 114,000,000.00
  profit or loss
  Including:
         Structural deposits                           420,000,000.00               114,000,000.00
  Designated as financial assets at fair                 37,982,988.00
  value through profit or loss
  Including:
         Performance compensation                        37,982,988.00
                    Total                              457,982,988.00               114,000,000.00
Other description:
√ Applicable□ N/A
Performance compensation refers to the consideration of compensation for performance that is required
to be fulfilled by GDC Cayman to the non-majority-owned company GDC BVI in response to the failure
of GDC BVI to fulfill the performance commitment in 2020.
□ Applicable√ N/A
(1). Categories of notes receivable
√ Applicable□ N/A
                                                                           Unit: Yuan Currency: RMB
             Item                          Closing balance                  Opening balance
Bank acceptances                                         700,000.00                       950,000.00
Commercial acceptances                                 3,098,593.29                     2,776,328.91
             Total                                     3,798,593.29                     3,726,328.91
(2). Notes receivable pledged by the Company at the end of the period
□ Applicable√ N/A
(3). Notes receivable which are undue as at the balance sheet date but endorsed or discounted by
        the Company at the end of the period
√ Applicable□ N/A
                                                                          Unit: Yuan Currency: RMB
                                   Amount derecognized at the end     Amount not derecognized at the
              Item
                                           of the period                   end of the period
 Bank acceptances                                                                        250,000.00
 Commercial acceptances                                                                1,409,666.52
            Total                                                                      1,659,666.52
     (4). Notes transferred to accounts receivable due to drawer's failure in cashing at the end of the
             period
     □ Applicable√ N/A
     (5). Disclosure by categories of provision for bad debts
     √ Applicable□ N/A
                                                                                       Unit: Yuan Currency: RMB
                             Closing balance                                           Opening balance
                                  Provision for bad                                          Provision for bad
            Carrying amount                                              Carrying amount
                                         debts                                                     debts
 Category                                   Proportion Book                                                          Book
                                                                                                       Proportion
                       Proporti                 of       value                 Proportion                            value
           Amount                Amount                             Amount                  Amount of provision
                       on (%)               provision                              (%)
                                                                                                          (%)
                                               (%)
Provision
for    bad
debts                5
                                                               .29           8
                                                                                                                           .91
made by
group
Including:
Bank
acceptance 700,000.00      17.67
bills
Commerci
al         3,261,677.1                                  3,098,593 2,922,451.4                                       2,776,328
acceptance           5                                         .29 8                                                       .91
s
   Total               5
                                 / 163,083.86            /
                                                                    .29 8
                                                                                       /      146,122.57      /
                                                                                                                            .91
     Provision for bad debts made individually:
     □ Applicable√ N/A
     Provision for bad debts made by group:
     √ Applicable□ N/A
     Item by group: Bank acceptance bills and commercial acceptances
                                                                                           Unit: Yuan Currency: RMB
                                                                     Closing balance
               Name                                                                           Proportion of provision
                                     Notes receivable            Provision for bad debts
                                                                                                       (%)
      Bank acceptance bills                700,000.00
      Commercial                                                                                                  5.00
      acceptances
              Total                      3,961,677.15                163,083.86                                   4.12
     Recognition criterion to make the bad debt provision by group and explanation
     □ Applicable√ N/A
      If a provision for bad debts of accounts receivable is made in accordance with the general model of ECL,
      please disclose relevant information subject to the disclosure of the bad debt provision for other
      receivables.
      □ Applicable√ N/A
      (6). Provision for bad debts
      √ Applicable□ N/A
                                                                                  Unit: Yuan Currency: RMB
                                                    Changes for the current period
                             Opening                                                            Closing
            Category                                         Recovery or      Write off or
                             balance          Provision                                         balance
                                                               reversal       cancellation
       Commercial             146,122.57        16,961.29                                       163,083.86
       acceptances
             Total            146,122.57         16,961.29                                        163,083.86
      Including significant amounts recovered or reversed from the current provision for bad debts:
      □ Applicable√ N/A
      Other description:
      None
      (7). Notes receivable actually canceled in the current period
      □ Applicable√ N/A
      Other description:
      □ Applicable√ N/A
      (1). Disclosure by aging
      √ Applicable□ N/A
                                                                                  Unit: Yuan Currency: RMB
                            Aging                                 Closing balance of carrying amount
       Within 1 year
       Including: Subitems within 1 year
       Sub-total of items within 1 year                                                       175,413,179.70
       Over 3 years                                                                               230,200.00
                              Total                                                           178,926,618.98
      (2). Disclosure by categories of provision for bad debts
      √ Applicable□ N/A
                                                                              Unit: Yuan Currency: RMB
                        Closing balance                                   Opening balance
Category                    Provision for bad      Book                       Provision for bad Book
           Carrying amount                                   Carrying amount
                                  debts            value                            debts        value
                                     Proportio                                                                Proportio
                    Proportio          n of                                                  Proportio          n of
             Amount           Amount                                                  Amount           Amount
                      n (%)          provision                                                 n (%)          provision
                                        (%)                                                                      (%)
Provision
for bad
debts                    8
made by
group
Including:
Accounts
receivabl
e      for
which the
provision    178,926,618.9                10,372,756.8                  168,553,862.0 361,346,260.8                    19,685,428.4              341,660,832.4
for bad
debts is
made by
aging
group
  Total                  8
                             /
                                                            /
                                                                                                          /
                                                                                                                                      /
          Provision for bad debts made individually:
          □ Applicable√ N/A
          Provision for bad debts made by group:
          √ Applicable□ N/A
          Item by group: provision for bad debts made by aging group
                                                                                                                       Unit: Yuan Currency: RMB
                                                                                         Closing balance
                      Name                                                                                                   Proportion of provision
                                               Accounts receivable                  Provision for bad debts
                                                                                                                                      (%)
           Within 1 year                                 175,413,179.70                               8,770,884.57                              5.00
           Over 3 years                                         230,200.00                             230,200.00                                 100.00
                   Total                    178,926,618.98              10,372,756.89                                                                 5.80
          Recognition criterion to make the bad debt provision by group and explanation:
          □ Applicable√ N/A
          If a provision for bad debts of accounts receivable is made in accordance with the general model of
          ECL, please disclose relevant information subject to the disclosure of the bad debt provision for other
          receivables.
          □ Applicable√ N/A
(3). Provision for bad debts
√ Applicable□ N/A
                                                                            Unit: Yuan Currency: RMB
                                           Changes for the current period
                     Opening                    Recovery                                  Closing
  Category                                                   Write off or Other
                     balance       Provision        or                                    balance
                                                            cancellation changes
                                                reversal
 Provision
 for bad                                     -
 debts made                       9,312,671.57
 by group
     Total                                    -
Including significant amounts recovered or reversed from the current provision for bad debts:
□ Applicable√ N/A
(4). Accounts receivable actually canceled in the current period
□ Applicable√ N/A
(5). Top five closing balances of accounts receivable categorized by debtors
√ Applicable□ N/A
                                                                   Proportion to the
                                                                      balance of
                                                                       accounts         Provision for
                     Entity                      Carrying amount    receivable (%)       bad debts
 Xiaomi Communications Technologies Co.,           54,205,349.26              30.29      2,710,267.46
 Ltd. and its affiliates
 BARCO NV and its affiliates                       19,429,915.61              10.86       971,495.78
 Beijing Jingdong Century Trading Co., Ltd.        14,611,460.67               8.17       730,573.03
 Shenzhen Nearbyexpress Technology                 12,935,095.24               7.23       646,754.76
 Development Company Limited
 WeCast Technology Corp. and its affiliates         6,220,785.59               3.48        311,039.28
                  Sub-total                       107,402,606.37              60.03      5,370,130.31
(6). Accounts receivable derecognized due to transfer of financial assets
□ Applicable√ N/A
(7). Assets and liabilities arising from transfer of accounts receivable and continued involvement
□ Applicable√ N/A
Other description:
□ Applicable√ N/A
√ Applicable□ N/A
                                                                                Unit: Yuan Currency: RMB
               Item                          Closing balance                     Opening balance
 Bank acceptance bills receivable                       1,214,306.00                      11,959,000.00
               Total                                    1,214,306.00                      11,959,000.00
Changes in amount and fair value of receivables financing:
□ Applicable√ N/A
If a provision for bad debts of accounts receivable is made in accordance with the general model of
ECL, please disclose relevant information subject to the disclosure of the bad debt provision for other
receivables:
□ Applicable√ N/A
Other description:
□ Applicable√ N/A
(1). Disclosure of prepayments by aging
√ Applicable□ N/A
                                                                              Unit: Yuan Currency: RMB
                              Closing balance                               Opening balance
       Aging
                        Amount           Proportion (%)               Amount           Proportion (%)
Within 1 year           80,287,925.92                95.83            45,488,048.90                92.50
Over 3 years
     Total              83,781,122.54                   100.00        49,174,631.52                100.00
Reasons for overdue settlement of prepayments with significant amounts aged more than 1 year:
     Entity                           Closing balance                     Reasons for no settlement
     China     Film       Equipment                          1,851,026.53 The settlement time has not
     Corporation and its affiliates                                       come
     Sub-total                                               1,851,026.53
(2). Top five closing balances of prepayments categorized by receivers
√ Applicable□ N/A
                                                                              Proportion to the balance of
                       Entity                           Carrying amount
                                                                                   prepayments (%)
CVTE Group and its affiliates                                 40,529,310.39                        48.37%
NEO Chinontec Co., Ltd.                                       16,463,155.65                        19.65%
Kyocera SLD Laser, Inc                                         5,814,090.00                         6.94%
Matsubayashi Optics (GUANGZHOU) Co., Ltd.                      2,230,439.33                         2.66%
Shenzhen Colorwin Optical Technology Co., Ltd.               1,997,957.53                         2.38%
                  Sub-total                                 67,036,032.90                        80.00%
Other description
√ Applicable□ N/A
[Note] Refer to the description in V. 44 of Section X for details of the difference between the opening
balance of this period and the closing balance of prior year (as at December 31, 2020)
Presented by items
√ Applicable□ N/A
                                                                              Unit: Yuan Currency: RMB
                 Item                         Closing balance                   Opening balance
 Interest receivable
 Dividends receivable
 Other receivables                                      10,381,304.06                     12,534,062.15
                Total                                   10,381,304.06                     12,534,062.15
Other description:
□ Applicable√ N/A
Interest receivable
(1). Categories of interest receivable
□ Applicable√ N/A
(2). Significant interests overdue
□ Applicable√ N/A
(3). Provision for bad debts
□ Applicable√ N/A
Other description:
□ Applicable√ N/A
Dividends receivable
(1). Dividends receivable
□ Applicable√ N/A
(2). Dividends receivable with significant amounts aged more than 1 year
□ Applicable√ N/A
(3). Provision for bad debts
□ Applicable√ N/A
Other description:
□ Applicable√ N/A
Other receivables
(4). Disclosure by aging
√ Applicable□ N/A
                                                                              Unit: Yuan Currency: RMB
                        Aging                                 Closing balance of carrying amount
 Within 1 year
 Including: Subitems within 1 year
 Sub-total of items within 1 year                                                         4,797,839.31
 Over 3 years                                                                             1,162,166.40
                        Total                                                            10,902,677.91
(5). Categories by the nature of other receivables
√ Applicable□ N/A
                                                                              Unit: Yuan Currency: RMB
                                        Closing balance of carrying        Opening balance of carrying
       Nature of receivables
                                                 amount                              amount
 Deposits/margins/petty cash                            9,425,783.99                       8,832,850.67
 Withholding                                              465,219.20                         380,123.97
 Temporary receivables                                  1,011,674.72                         383,488.89
 Indemnity receivable                                                                      3,577,279.61
              Total                                    10,902,677.91                     13,173,743.14
(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            639,680.99                                                        639,680.99
 January 1, 2021
 Balance as at
 January 1, 2021 in
 the current period
 --transferred    to
 Stage II
 --transferred    to
 Stage III
 --reversed       to
 Stage II
 --reversed       to
 Stage I
 Provision               -118,307.14                                                       -118,307.14
 Reversal
 Write-off
 Cancellation
 Other changes
 Balance as at June       521,373.85                                                        521,373.85
Description of significant changes in the balance of other receivables with changed provisions for losses
in the current period:
□ Applicable√ N/A
Basis for recognizing the amount of bad debt provisions and evaluating whether the credit risk of
financial instruments has been increased significantly in the current period:
□ Applicable√ N/A
(7). Provision for bad debts
√ Applicable□ N/A
                                                                              Unit: Yuan Currency: RMB
                                             Changes for the current period
                      Opening                                                                   Closing
    Category                                    Recovery Write off or              Other
                      balance      Provision                                                    balance
                                               or reversal cancellation          changes
 Provision for      639,680.99    -118,307.14                                               521,373.85
 bad debts
 made by
 group
     Total        639,680.99     -118,307.14                                               521,373.85
Including significant amounts recovered or reversed from the current provision for bad debts:
□ Applicable√ N/A
(8). Other receivables actually canceled in the current period
□ Applicable√ N/A
(9). Top five closing balances of other receivables categorized by debtors
√ Applicable□ N/A
                                                                            Unit: Yuan Currency: RMB
                                                                                            Provision
                                                                          Proportion to the for bad
                           Nature of other        Closing
       Entity                                                     Aging   balance of other    debts
                            receivables           balance
                                                                          receivables (%)    closing
                                                                                             balance
Shenzhen Meisheng      Deposits/margins/petty
Industry Co., Ltd.     cash
Shenzhen Science
and Technology         Deposits/margins/petty
Assessment             cash
Management Center
Hong Kong Science
                       Deposits/margins/petty
& Technology                                  1,011,329.11 2-3 years                    9.28 50,566.46
                       cash
Parks Corporation
Beijing Dongsheng
Bozhan Technology      Deposits/margins/petty                       Within 1
Development Co.,       cash                                             year
Ltd.
Qingdao Haier
                       Deposits/margins/petty                       Within 1
Multimedia Co.,                                    500,000.00                           4.59 25,000.00
                       cash                                             year
Ltd.
       Total                     /                7,212,777.95              /          66.17 360,638.89
(10). Accounts receivable involving government grants
□ Applicable√ N/A
(11). Other receivables derecognized due to transfer of financial assets
□ Applicable√ N/A
(12). Assets and liabilities arising from transfer of other receivables and continued involvement
□ Applicable√ N/A
Other description:
□ Applicable√ N/A
(1). Categories of inventories
√ Applicable□ N/A
                                                                    Unit: Yuan Currency: RMB
                         Closing balance                        Opening balance
                          Provision for                           Provision for
                       decline in value of                     decline in value of
     Item    Carrying                                Carrying
                      inventories/impairm Book value          inventories/impairm Book value
             amount                                  amount
                         ent of contract                         ent of contract
                        performance cost                        performance cost
Raw          451,338,805.       17,326,482.85 434,012,322. 243,262,463.         12,343,116.67 230,919,347.
materials             08                                23          77                                 10
Work in      41,741,766.1        4,342,479.86 37,399,286.3 23,130,163.7           533,475.37 22,596,688.3
progress                9                                3            2                                 5
Goods on     139,693,333.       13,191,411.80 126,501,921. 152,306,656.         17,204,698.44 135,101,957.
hand                  22                                42          10                                 66
Goods        25,658,485.7            570,764.05 25,087,721.7 15,345,357.0                     15,345,357.0
upon                    8                                  3            8                                8
delivery
Materials    17,369,489.5            207,806.17 17,161,683.4 15,064,657.0         215,866.48 14,848,790.6
for                     7                                  0            9                               1
consigned
processing
Contract  2,145,002.14              729,907.80 1,415,094.34
performan
ce cost
   Total  677,946,881.            36,368,852.53 641,578,029. 449,109,297.         30,297,156.96 418,812,140.
(2). Provision for decline in value of inventories and impairment of contract performance cost
√ Applicable□ N/A
                                                                             Unit: Yuan Currency: RMB
                                           Increase                   Decrease
                     Opening                                                               Closing
     Item                                                       Reversal or
                     balance         Provision        Others                   Others      balance
                                                                 write-off
 Raw
 materials
 Work in
 progress
 Goods on
 hand
 Goods upon
 delivery
 Materials
 for
 consigned
 processing
 Contract
 performance                          729,907.80                            -                  729,907.80
 cost
     Total     30,297,156.96      16,534,398.17                10,462,702.60                36,368,852.53
(3). Description of capitalized amount of borrowing costs included in the closing balance of
    inventories
□ Applicable√ N/A
(4). Description of amortization of contract performance cost during the period
□ Applicable√ N/A
Other description:
□ Applicable√ N/A
(1).Description of contract assets
√ Applicable□ N/A
                                                                                Unit: Yuan Currency: RMB
      Item                        Closing balance                               Opening balance
                     Carrying    Provision for                       Carrying   Provision for
                                               Book value                                     Book value
                     amount       impairment                         amount      impairment
Warranties
receivable
Goods payment 3,741,658.43 1,460,882.81 2,280,775.62 4,842,771.16 1,408,947.78 3,433,823.38
      Total   4,022,244.43 1,633,752.11 2,388,492.32 5,335,238.66 1,590,583.16 3,744,655.50
(2).Amount and reasons of major changes in the book value during the reporting period
□ Applicable√ N/A
(3).Description of provision for impairment made on contract assets during the period
√ Applicable□ N/A
                                                                                Unit: Yuan Currency: RMB
                                                     Reversal               Write-
          Item                  Provision                              off/cancellation       Reason
                                                                        in the period
  Provision made by                43,168.95
  group
           Total                   43,168.95                                                  /
If a provision for bad debts is made in accordance with the general model of ECL, please disclose
relevant information subject to the disclosure of other receivables.
□ Applicable√ N/A
Other description:
√ Applicable□ N/A
 Aging                                                     Closing balance
                           Carrying amount              Provision          for     Proportion of provision
                                                        impairment                 (%)
 Within 1 year                        1,024,378.00                   51,218.90                        5.00
 Over 3 years                           167,200.00                  167,200.00                     100.00
 Total                                4,022,244.43                1,633,752.11                      40.62
□ Applicable√ N/A
□ Applicable√ N/A
√ Applicable□ N/A
                                                                                Unit: Yuan Currency: RMB
                 Item                            Closing balance                  Opening balance
Cost of returns receivable                              1,072,633.94                     1,381,990.01
Input VAT to be deducted                               48,620,388.82                    11,338,961.82
Prepaid enterprise income tax                                                              281,243.63
                Total                                  49,693,022.76                    13,002,195.46
Other description:
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 description:
□ Applicable√ N/A
(1) Description of long-term receivables
√ Applicable□ N/A
                                                                           Unit: Yuan Currency: RMB
                        Closing balance                         Opening balance
                                                                                           Discount
                           Provision                              Provision
     Item       Carrying                               Carrying                              rate
                            for bad Book value                     for bad Book value
                amount                                 amount                               range
                             debts                                  debts
Proceeds
from sales
of goods by
installment
Less:
Unearned
financing
income
    Total      14,245,945.96 750,000.00 13,495,945.96 13,946,087.78 750,000.00 13,196,087.78    /
(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
                        in the future                              credit impairment)
                                              impairment)
 Balance as at             750,000.00                                                         750,000.00
 January 1, 2021
 Balance as at
 January 1, 2021 in
 the current period
 --transferred    to
 Stage II
 --transferred    to
 Stage III
 --reversed       to
 Stage II
 --reversed       to
 Stage I
 Provision
 Reversal
 Write-off
 Cancellation
 Other changes
 Balance as at June        750,000.00                                                         750,000.00
Description of significant changes in the carrying amount of long-term receivables with changed
provisions for losses in the current period:
□ Applicable√ N/A
Basis for recognizing the amount of bad debt provisions and evaluating whether the credit risk of financial
instruments has been increased significantly in the current period:
□ Applicable√ N/A
(3) Long-term receivables derecognized due to transfer of financial assets
□ Applicable√ N/A
(4) Assets and liabilities arising from transfer of long-term receivables and continued involvement
□ Applicable√ N/A
Other description:
□ Applicable√ N/A
√ Applicable□ N/A
                                                                                                                                           Unit: Yuan Currency: RMB
                                                                      Changes for the current period                                                       Closing
                                                         Investmen                                   Declared                                            balance of
                                Additiona                               Adjustment in      Other                 Provision
                 Opening                    Decreased     t profit or                                  cash                                  Closing      provision
  Investees                          l                                      other          equity                   for
                 balance                    investmen    loss under                                  dividend                 Others         balance         for
                                investmen                               comprehensiv change                     impairmen
                                                 t          equity                                     s or                                              impairmen
                                     t                                    e income           s                       t
                                                            method                                    profits                                                 t
 I.    Joint
 venture
 Sub-total
 II.
 Associates
 Cinionic       131,406,424.6                            1,686,237.8                                                                       129,147,386.4
                                                                         -2,611,934.25                                       1,333,341.8
 Limited                    4                                      8                                                                                   4
 GDC
 Technolog      131,338,347.8                            5,260,676.5                                                                       136,753,066.2
 y Limited                  4                                      0                                                                                   3
 (BVI)
 Sub-total                                                                                                                             -
                                                                         -1,217,076.92                                       2,574,157.2
    Total                   8                                      8
                                                                         -1,217,076.92                                       2,574,157.2
Other description
Others represent the conversion rate difference in long-term equity investments.
(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.                          4,900,000.00                 4,900,000.00
                Total                                        11,975,419.38                11,975,419.38
(2).Description of equity investments not held for trading
√ Applicable□ N/A
                                                                              Unit: Yuan Currency: RMB
                  Dividen                                  Amount          Reasons for     Reasons for
                      d                                  transferred           being       transferring
                   income     Aggregat                   from other       designated as        other
                                           Aggregat
      Item        recogniz    e gains or                comprehensiv       at fair value  comprehensiv
                                           e losses
                  ed in the     losses                   e income to      through other    e income to
                   current                                 retained      comprehensiv        retained
                    period                                 earnings         e income         earnings
 Shen Zhen                                                               As per the
 Timewaying                                                              intention for
 Technology                                                              holding of the
 Co., Ltd.                                                               management
 Shenzhen                                                                As per the
 Bevix                                                                   intention for
 Technology                                                              holding of the
 Co., Ltd.                                                               management
Other description:
√ Applicable□ N/A
The Company’s equity investments in Shen Zhen Timewaying Technology Co., Ltd.and Shenzhen Bevix
Technology Co., Ltd. are made mainly for promoting business cooperation in the future, but not for trading,
which are accordingly designated as equity investments at fair value through other comprehensive income.
□ Applicable√ N/A
Measurement mode of investment properties
N/A
Presented by items
√ Applicable□ N/A
                                                                              Unit: Yuan Currency: RMB
                 Item                           Closing balance                  Opening balance
 Fixed assets                                           448,824,286.12                     447,571,328.91
 Disposal of fixed assets
                Total                                   448,824,286.12                     447,571,328.91
Other description:
None
Fixed assets
(1). Description of fixed assets
√ Applicable□ N/A
                                                                              Unit: Yuan Currency: RMB
                                                      Electronic
                       Machinery and Transportation               Operating leased
       Item                                         equipment and                              Total
                        equipment      equipment                    equipment
                                                        others
I. Cost:
balance
         (1)Purchase    10,374,215.65                    4,671,280.36                       15,045,496.01
         (2)
Transfer from
construction in
progress
         (1)
Disposal or                 196,364.20                       728,415.51     5,183,854.65      6,108,634.36
retirement
         (2)
Transfer to               2,481,317.08                        36,688.22      152,407.81       2,670,413.11
inventories
balance
II. Accumulated
depreciation
balance
         (1)
Provision
         (1)
Disposal or                 158,308.83                       580,647.70      382,985.33       1,121,941.86
retirement
         (2)
Transfer to                 241,533.80                         6,569.82        44,482.24        292,585.86
inventories
balance
III. Provision for
impairment
balance
         (1)
Provision
         (1)
Disposal or
retirement
balance
IV. Book value
balance
balance
(2). Temporarily idle fixed assets
□ Applicable√ N/A
(3). Fixed assets rent under finance lease
□ Applicable√ N/A
(4). Fixed assets leased out under operating lease
√ Applicable□ N/A
                                                                             Unit: Yuan Currency: RMB
                    Item                                   Closing balance of carrying amount
 Operating leased equipment                                                             366,033,869.72
 Total                                                                                  366,033,869.72
(5). Fixed assets of which certificates of title have not been obtained
□ Applicable√ N/A
Other description:
□ Applicable√ N/A
Disposal of fixed assets
□ Applicable√ N/A
Presented by items
√ Applicable□ N/A
                                                                            Unit: Yuan Currency: RMB
                Item                      Closing balance                 Opening balance
 Construction in progress                          88,984,744.00                  51,576,850.72
 Materials for construction
                Total                               88,984,744.00                     51,576,850.72
Other description:
None
Construction in progress
(1). Description of Construction in progress
√ Applicable□ N/A
                                                                        Unit: Yuan Currency: RMB
                         Closing balance                             Opening balance
                            Provision
    Item        Carrying                                  Carrying    Provision for
                               for       Book value                                    Book value
                  amount                                    amount     impairment
                           impairment
Headquarter
buildings
Light
sources to 22,071,691.77               22,071,691.77 13,594,520.98                    13,594,520.98
be leased
Fitting-out
works
    Total   88,984,744.00             88,984,744.00 51,576,850.72                     51,576,850.72
(2). Changes in significant constructions in progress for the current period
√ Applicable□ N/A
                                                                                                                                       Unit: Yuan Currency: RMB
                                                                                              Amount
                                                                                              injected
                                                          Amount                                                       Amount of Including:       Interest
                                                                                                as a
               Budget       Opening                     transferred    Other     Closing                 Construction accumulated Capitalised Capitalization Source
     Item                                  Increase                                          proportion
               amount        balance                      to fixed   decreases   balance                   progress    capitalized interest for rate for the of funds
                                                                                             of budget
                                                           assets                                                        interest    the period period (%)
                                                                                              amount
                                                                                                (%)
Headquarter                                                                                                                                                    Self-
buildings                                                                                                                                                      financing
Light
                                                                                                                                                               Self-
sources to                 13,594,520.98 54,492,250.60 46,015,079.81           22,071,691.77
                                                                                                                                                               financing
be leased
Fitting-out                                                                                                                                                    Self-
works                                                                                                                                                          financing
    Total   534,635,200.00 51,576,850.72 83,422,973.09 46,015,079.81           88,984,744.00     /             /           33,383.45   33,383.45     /             /
(3). Provision for impairment losses for construction in progress in the current period
□ Applicable√ N/A
Other description
□ Applicable√ N/A
Materials for construction
□ Applicable√ N/A
(1). Bearer biological assets measured at cost
□ Applicable√ N/A
(2). Bearer biological assets measured at fair value
□ Applicable√ N/A
Other description
□ Applicable√ N/A
□ Applicable√ N/A
√ Applicable□ N/A
                                                                       Unit: Yuan Currency: RMB
                   Item                   Houses and buildings                 Total
 I. Cost
 II. Accumulated depreciation
          (1) Provision                                 9,471,534.54               9,471,534.54
          (1) Disposal
 III. Provision for impairment
          (1) Provision
          (1) Disposal
 IV. Book value
Other description:
[Note] Refer to the description in V. 44 of Section X for details of the difference between the opening
balance of this period and the closing balance of prior year (as at December 31, 2020)
(1). Description of intangible assets
√ Applicable□ N/A
                                                                             Unit: Yuan Currency: RMB
           Item             Land use rights             Patents         Software           Total
 I. Cost
 balance
          (1) Purchase                                                  415,806.59         415,806.59
          (1)Disposal
 II. Accumulated
 Amortization
 balance
          (1) Provision           5,510,500.02           844,610.02   1,391,408.60       7,746,518.64
          (1) Disposal
 balance
 III. Provision for
 impairment
 balance
          (1) Provision
          (1) Disposal
 balance
 IV. Book 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 description:
□ Applicable√ N/A
□ Applicable√ N/A
(1). Original book value of goodwill
□ Applicable√ N/A
(2). Impairment provision of goodwill
□ Applicable√ N/A
(3). Relevant information of groups of assets or combinations of groups of assets where the
    goodwill is recognized
□ Applicable√ N/A
(4). Specify test procedure, key parameters of impairment of goodwill (such as increase rate at
      the projection period, increase rate at the steady period, profit rate, discount rate, and
      projection period upon the estimates of the presented value of future cash flow) as well as
      recognition method for impairment loss
□ Applicable√ N/A
(5). Impacts on test of goodwill impairment
□ Applicable√ N/A
Other description:
□ Applicable√ N/A
√ Applicable□ N/A
                                                                               Unit: Yuan Currency: RMB
                      Opening                                                Other
     Item                              Increase         Amortization                    Closing balance
                      balance                                              decreases
 Renovation
 costs
 Software               552,068.22                         194,847.60                       357,220.62
     Total           11,572,346.79    1,956,427.58       3,551,972.20                     9,976,802.17
Other description:
None
(1). Deferred tax assets that are not offset
√ Applicable□ N/A
                                                                               Unit: Yuan Currency: RMB
                                        Closing balance                        Opening balance
                                 Deducible                               Deducible
            Item                                   Deferred tax                           Deferred tax
                                 temporary                               temporary
                                                      asset                                   asset
                                 difference                              difference
 Provision for impairment
 of assets
 Unrealized profits for
 inside transactions
 Deductible losses                                                        3,339,193.87     834,798.46
 Provisions                   26,803,968.88        5,136,107.85    24,854,195.43       4,578,959.70
 Deferred income              16,381,194.52        2,586,751.33    15,797,285.68       2,504,280.31
 Share-based payment
 expenses
 Lease liability              33,572,555.38        5,878,957.55    42,411,856.75       5,283,865.43
 Accrual of repurchase
 interest payable
            Total            489,339,664.15     111,274,288.63    458,923,933.81    103,380,534.13
(2). Deferred tax assets that are not offset
√ Applicable□ N/A
                                                                          Unit: Yuan Currency: RMB
                                     Closing balance                      Opening balance
                               Taxable            Deferred          Taxable        Deferred income
          Item
                              temporary         income taxes       temporary             taxes
                              differences         liabilities      differences        liabilities
 Value-added valuation
 of business combination
 not involving
 enterprises under
 common control
 Changes in fair value of
 other debt investments
 Changes in fair value of
 other investments in
 equity instruments
 Long-term receivables       13,396,889.35        2,009,533.40     13,097,031.17       1,964,554.68
 Use right assets            31,924,696.40        5,654,382.93     39,368,070.17       4,960,189.07
           Total             45,321,585.75        7,663,916.33     52,465,101.34       6,924,743.75
(3). Deferred tax assets and deferred tax liabilities that are presented at the net amount after
    offset
√ Applicable□ N/A
                                                                          Unit: Yuan Currency: RMB
                           Amount for                             Amount for
                            which the                              which the            Opening
                                           Closing balance
                           deferred tax                        deferred income         balance of
                                            of deferred tax
                            assets and                          tax assets and     deferred income
           Item                                assets or
                          liabilities are                        liabilities are      tax assets or
                                            liabilities after
                           offset at the                          offset at the     liabilities after
                                                 offset
                          closing of the                        opening of the           offset
                              period                                 period
 Deferred tax assets        7,663,916.33     103,610,372.30        6,924,743.75       96,455,790.38
 Deferred tax liabilities
(4). Details of unrecognized deferred tax assets
√ Applicable□ N/A
                                                                              Unit: Yuan Currency: RMB
              Item                         Closing balance                     Opening balance
 Deducible temporary                                 45,260,046.72                       47,569,632.05
 difference
 Deductible losses                                  270,414,001.83                       275,961,696.98
             Total                                  315,674,048.55                       323,531,329.03
(5). Deductible losses, for which no deferred tax assets are recognized, will expire in the following
    years
√ Applicable□ N/A
                                                                         Unit: Yuan Currency: RMB
         Year              Closing balance          Opening balance                Remark
         Total                 270,414,001.83            275,961,696.98                /
Other description:
√ Applicable□ N/A
[Note] Refer to the description in V. 44 of Section X for details of the difference between the opening
balance of this period and the closing balance of prior year (as at December 31, 2020)
√ 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 15,891,524.06                     15,891,524.06       6,299,781.06                6,299,781.06
 long-term
 assets
     Total      15,891,524.06                  15,891,524.06       6,299,781.06                6,299,781.06
Other description:
None
(1). Categories of short-term borrowings
√ Applicable□ N/A
                                                                              Unit: Yuan Currency: RMB
             Item                           Closing balance                    Opening balance
Guaranteed loans                                    28,049,331.60                       77,223,937.39
Credit loans                                                                         11,299,169.33
Interest payable                                         48,543.82                      255,746.14
              Total                                  28,097,875.42                   88,778,852.86
Description for categories of short-term borrowings:
None
(2). Short-term borrowings overdue but not yet repaid
□ Applicable√ N/A
Other description:
□ Applicable√ N/A
□ Applicable√ N/A
□ Applicable√ N/A
√ Applicable□ N/A
                                                                            Unit: Yuan Currency: RMB
         Category                     Closing balance                       Opening balance
Commercial acceptances
Bank acceptance bills                             180,257,484.74                      116,822,674.67
           Total                                  180,257,484.74                      116,822,674.67
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
           Total                                  272,203,766.10                     226,494,815.90
(2). Accounts payable with significant amounts aged more than 1 year
□ Applicable√ N/A
Other description:
□ Applicable√ N/A
(1). Presented by receipts in advance
√ Applicable□ N/A
                                                                            Unit: Yuan Currency: RMB
              Item                           Closing balance                 Opening balance
 Receipts in advance for goods
 and cinema services
             Total                                   141,944,076.60                    153,258,189.88
(2). Receipts in advance with significant amounts aged more than 1 year
√ Applicable□ N/A
                                                                      Unit: Yuan Currency: RMB
                                                                    Reasons for not repaid or
              Item                       Closing balance
                                                                         carried-forward
                                                                Receipts in advance from
 Jiangsu Happy Blue Sea
 Cinema Development Co., Ltd.
                                                                services
             Total                                27,926,212.39                  /
Other description:
□ Applicable√ N/A
(1).Description of contract liabilities
√ Applicable□ N/A
                                                                            Unit: Yuan Currency: RMB
           Item                            Closing balance                   Opening balance
 Goods payment                                      40,048,659.77                      31,518,312.59
           Total                                    40,048,659.77                      31,518,312.59
(2).Amount and reasons of major changes in the book value during the reporting period
□ Applicable√ N/A
Other description:
□ Applicable√ N/A
(1).Presented by employee benefits payable
√ Applicable□ N/A
                                                                            Unit: Yuan Currency: RMB
                                  Opening
            Item                                      Increase          Decrease       Closing balance
                                  balance
 benefits-defined                   73,934.98        6,093,810.04       5,996,162.31       171,582.71
 contribution plan
 within one year
             Total              46,105,566.15      156,928,780.55     169,813,979.14    33,220,367.56
(2).Presented by short-term employee benefits
√ Applicable□ N/A
                                                                            Unit: Yuan Currency: RMB
                                 Opening
            Item                                      Increase           Decrease       Closing balance
                                 balance
 I. Wages or salaries,
 bonuses, allowances and        45,956,435.30     135,085,848.73     148,183,122.44      32,859,161.59
 subsidies
 II. Staff welfare                                   3,500,905.02        3,500,905.02
 III. Social security
 contributions
 Including: Medical
 insurance
          Work injury
 insurance
          Maternity insurance          16.98           106,149.81          106,149.81            16.98
 IV. Housing funds                    989.00         6,923,221.59        6,923,221.59           989.00
 V.Union running costs and
 employee education costs
 VI. Short-term paid leaves
 VII.Short-term profit
 sharing plan
              Total             46,031,631.17     150,199,218.51     163,182,064.83      33,048,784.85
(3).Presented by defined contribution plan
√ Applicable□ N/A
                                                                             Unit: Yuan Currency: RMB
                                 Opening                                                  Closing
            Item                                      Increase           Decrease
                                 balance                                                  balance
 insurance
 contribution
            Total                  73,934.98         6,093,810.04        5,996,162.31       171,582.71
Other description:
□ Applicable√ N/A
√ Applicable□ N/A
                                                                             Unit: Yuan Currency: RMB
               Item                        Closing balance                    Opening balance
Value-added tax (VAT)                                 1,529,974.97                       12,205,136.88
Enterprise income tax                                40,403,724.10                        5,477,611.87
Individual income tax                                 1,099,358.16                        1,067,512.87
City maintenance and
construction tax
Stamp duty                                                  184,114.07                       294,612.70
Education surcharges                                       175,370.30                          204,948.80
Local education surcharges                                 116,913.53                          136,632.54
Annual franchise tax                                         7,106.11                            7,177.40
Urban land use tax                                           8,914.32
             Total                                      43,934,753.55                       19,871,846.94
Other description:
None
Presented by items
√ Applicable□ N/A
                                                                              Unit: Yuan Currency: RMB
                 Item                           Closing balance                 Opening balance
 Interest payable
 Dividends payable                                         3,851,339.04
 Other payables                                         251,631,758.97                      58,821,952.01
                 Total                                  255,483,098.01                      58,821,952.01
Other description:
Refer to the description in V. 44 of Section X for details of the difference in other payables between the
opening balance of this period and the closing balance of prior year (as at December 31, 2020)
Interest payable
□ Applicable√ N/A
Dividends payable
√ Applicable□ N/A
                                                                              Unit: Yuan Currency: RMB
            Item                            Closing balance                    Opening balance
Dividends on ordinary shares                           3,851,339.04
            Total                                      3,851,339.04
Other description, including significant dividend payable with ageing of over 1 year, and the reason of
non-payment shall be disclosed:
The balance of dividends payable represents the dividends payable to the payees determined by the
Company for 2020, which has been paid on July 16, 2021.
Other payables
(1). Other payables presented by nature
√ Applicable□ N/A
                                                                              Unit: Yuan Currency: RMB
               Item                         Closing balance                    Opening balance
 Withholding                                            110,137.00                          110,389.10
 Deposits/margins                                     5,581,950.19                        6,600,475.05
 Withdrawals in advance                              28,762,556.88                       21,126,906.43
 Equity transfer fund payable                                                            11,548,387.32
 Borrowings                                                                              19,343,613.33
 Temporary receipts payable                            15,687.12                               92,180.78
 Equity repurchase amount
 payable
              Total                               251,631,758.97                          58,821,952.01
Other description: The equity repurchase amount payable pertains to the capital increase of the subsidiary
Fengmi (Chongqing) during the reporting period. When the repurchase right trigger event occurs, Fengmi
(Chongqing) is obligated to conduct repurchase. According to the relevant accounting standards, the
Company recognizes the investment amount as other payables.
(2). Other payables with significant amounts aged more than 1 year
□ Applicable√ N/A
Other description:
□ Applicable√ N/A
□ Applicable√ N/A
√ Applicable□ N/A
                                                                             Unit: Yuan Currency: RMB
                Item                         Closing balance                  Opening balance
 Long-term borrowings due
 within 1 year
 Lease liabilities due within 1
 year
 Interest payable                                          194,908.23                         360,312.56
               Total                                  146,220,719.05                      200,024,423.85
Other description:
Refer to the description in V. 44 of Section X for details of the difference between the opening balance
of this period and the closing balance of prior year (as at December 31, 2020)
√ Applicable□ N/A
                                                                             Unit: Yuan Currency: RMB
             Item                         Closing balance                     Opening balance
 Taxes to be written off                             3,391,139.20                        3,045,831.07
             Total                                   3,391,139.20                        3,045,831.07
Changes in short-term bonds payable:
□ Applicable√ N/A
Other description:
□ Applicable√ N/A
(1). Categories of long-term borrowings
√ Applicable□ N/A
                                                                             Unit: Yuan Currency: RMB
               Item                          Closing balance                   Opening balance
Guaranteed borrowings                                99,087,647.00                      29,000,000.00
Credit loans borrowings                                                                   2,043,500.81
Mortgaged borrowings                                  3,494,734.74
Pledged and guaranteed
borrowings
Interest payable                                        108,105.52                           107,952.72
               Total                                102,690,487.26                        64,845,281.53
Description for categories of long-term borrowings:
None
Other description, including interest 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
Other financial instruments classified as financial liabilities
□ Applicable√ N/A
Other description:
□ Applicable√ N/A
√ Applicable□ N/A
                                                                             Unit: Yuan Currency: RMB
                Item                          Closing balance                  Opening balance
Lease liabilities                                       39,136,772.89                    42,411,856.75
Less: Lease liabilities due within 1
                                                          -20,745,329.40                   -18,607,011.39
year
                 Total                                     18,391,443.49                    23,804,845.36
Other description:
Refer to the description in V. 44 of Section X for details of the difference between the opening balance
of this period and the closing balance of prior year (as at December 31, 2020)
Presented by items
√ Applicable□ N/A
                                                                                Unit: Yuan Currency: RMB
                 Item                        Closing balance                      Opening balance
 Long-term accounts payable                           3,230,050.00                          3,262,450.00
 Special payables
                Total                                        3,230,050.00                   3,262,450.00
Other description:
None
Long-term accounts payable
√ Applicable□ N/A
                                                                                Unit: Yuan Currency: RMB
                Item                        Closing balance                       Opening balance
 Purchase of patent use rights by
 installment
                Total                                        3,230,050.00                   3,262,450.00
Other description:
None
Special payables
□ Applicable√ N/A
□ Applicable√ N/A
√ Applicable□ N/A
                                                                              Unit: Yuan Currency: RMB
          Item                 Opening balance           Closing balance                  Reason
Products quality                                                                Expenses for “three
warranty                                                                        guarantees” services
Returns payable                         1,558,884.12             1,333,391.18
         Total                        28,799,354.65             30,519,379.89                /
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
grants
      Total         16,723,257.15    4,070,480.27       3,833,810.75        16,959,926.67       /
Projects relating to government grants:
√ Applicable□ N/A
                                                                          Unit: Yuan Currency: RMB
                                            Amount
                                           recognize Amount
                                Increased
                                           d in non- recognized
                               government                         Other                Related to
 Projects with     Opening                 operating in other               Closing
                                grants for                       change               assets/incom
   liabilities     balance                  income income for               balance
                               the current                          s                       e
                                             for the the current
                                  period
                                            current    period
                                             period
Definition
                                                                                       Government
Laser Display
                                                                                       grants
Technology     1,699,187.35                                 382,994.93    1,316,192.42
                                                                                       related to
Engineering
                                                                                       assets
Research
Center
Ultra-high
Brightness
Laser Light                                                                            Government
Source                                                  1,414,127.2                    grants
Engineering                                                       7                    related to
Technology                                                                             income
Research
Center
Ultra-high
Brightness
Laser Light                                                                            Government
Source         13,340,196.5 2,815,480.2                 1,781,688.5       14,373,988.2 grants
Engineering               4           7                           5                  6 related to
Technology                                                                             income
Research
Center
Research and
Development
of Key
Technologies
                                                                                       Government
of Ultra High
Definition                                                                1,000,000.00
Micro Laser
                                                                                       income
Projection
Optical Engine
Based on
Light-emitting
Ceramic
Devices
Key
Technology of
Trichromatic                                                                                  Government
Laser Display                                                                                 grants
Complete                                                                                      related to
Equipment                                                                                     income
Industrializatio
n
     Total
Other description:
√ Applicable□ N/A
Refer to the description in VII. 84 of Section X for details of government grants of this period included
in the current profit or loss
□ Applicable√ N/A
√ Applicable□ N/A
                                                                              Unit: Yuan Currency: RMB
                                                     Changes (+, -)
                                  Issue              Capitalization
             Opening balance              Bonus                                Sub-     Closing balance
                                  New                  of capital   Others
                                          shares                               total
                                  share                 reserve
   Total
  shares
Other description:
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 description:
□ Applicable√ N/A
√ Applicable□ N/A
                                                                          Unit: Yuan Currency: RMB
        Item          Opening balance           Increase           Decrease       Closing balance
Capital premium
(Share premium)
Other capital
reserve
       Total            1,249,020,991.15       111,083,348.13                       1,360,104,339.28
Other description, including changes in the current period and reasons for changes:
(1) The capital premium (share premium) increased by RMB 92,622,244.75 due to the capital increase
made by minority shareholders of subsidiaries in the current period;
(2) The total expense of equity-settled share-based payments in the current period amounted to RMB
and RMB 3,890,517.84 was charged to the amount attributable to minority interests.
□ Applicable√ N/A
√ Applicable□ N/A
                                                                                                                                            Unit: Yuan Currency: RMB
                                                                        Amount recognized in the current period
                                                                           Less: Amount
                                                        Less: Amount
                                                                             previously
                                                           previously
                                                                             included in
                                                           included in
                                      Amount                                     other                          Attributable to      Attributable to
                  Opening                                     other                                                                                      Closing
     Item                           incurred for                          comprehensive      Less: Income        owners of the          minority
                  balance                               comprehensive                                                                                    balance
                                   current period                           income and        tax expense      parent company         shareholders
                                                          income and
                                     before tax                            transferred to                              after tax        after tax
                                                         transferred to
                                                                               retained
                                                         profit or loss
                                                                          earnings for the
                                                         for the period
                                                                                period
I. Other
comprehensive
income that
cannot be
reclassified
subsequently
to profit or
loss
II. Other
comprehensive
income that
                   -3,214,291.93        -4,739,767.89                                                                -4,763,298.65           23,530.76   -7,977,590.58
will be
reclassified to
profit or loss
Exchange
differences on
translation of
financial
                        -3,214,291.93     -4,739,767.89                                                              -4,763,298.65         23,530.76     -7,977,590.58
statements
denominated
in foreign
currencies
Total other
comprehensive           -3,214,291.93     -4,739,767.89                                                              -4,763,298.65         23,530.76     -7,977,590.58
income
Other descriptions, including adjustments on transferring effective portion of cash flow hedges to amount upon initial recognition of the hedged item:
None
□ Applicable√ N/A
√ Applicable□ N/A
                                                                             Unit: Yuan Currency: RMB
         Item               Opening             Increase             Decrease        Closing balance
                            balance
Statutory       surplus
reserve
Surplus reserve
recovered through
business combination        1,277,540.73                                                   1,277,540.73
involving entities
under common control
         Total            35,242,179.57                                                   35,242,179.57
Surplus reserve description, including changes in the current period and reasons for changes:
None
√ Applicable□ N/A
                                                                             Unit: Yuan Currency: RMB
                  Item                              Current period                  Last year
Retained profits at the end of prior
period before adjustment
Total adjusted retained profits at the
beginning of the period (Add:+; Less:                            44,270.33                1,278,734.88
-)
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
     Appropriation to discretionary
surplus reserve
     Appropriation to general risk
reserve
     Declaration of dividends on
ordinary shares
     Conversion of ordinary shares'
dividends into share capital
Retained profits at the end of the
period
Details of adjustments to retained profits at the beginning of the period:
related new regulations, retained profits at the beginning of the period were affected by RMB 44,270.33.
policies.
significant accounting errors.
consolidation resulting from business combination involving entities under common control.
(1).Description of operating income and operating costs
√ Applicable□ N/A
                                                                             Unit: Yuan Currency: RMB
                         Amount for the current period                Amount for the prior period
       Item
                         Revenue                Cost                 Revenue                Cost
  Main
  business
      Total        1,104,689,243.59       723,612,305.19        716,025,207.34        529,787,789.94
(2).Description of incomes from contracts
□ Applicable√ N/A
(3).Description of performance obligations
□ Applicable√ N/A
(4).Description of allocation to remaining performance obligations
□ Applicable√ N/A
Other description:
Presentation of income by major category
   Item                                                                     Sub-total
 Main business areas
   Domestic                                                                          978,637,241.86
   Overseas                                                                            52,602,507.28
   Sub-total                                                                       1,031,239,749.14
 Main product types
   Laser optical engine                                                              102,894,753.59
   Laser projector                                                                   760,406,207.52
   Others                                                                            167,938,788.03
 Sub-total                                                                         1,031,239,749.14
 Revenue recognition time
   Goods (transferring at a certain point in time)                                   911,639,750.72
   Service (rendering over time)                                                     119,599,998.42
   Sub-total                                                                       1,031,239,749.14
Note: The information on income presented above represents the income amount, net of the rental income
and other income to which the new revenue standards are not applicable.
√ Applicable□ N/A
                                                                             Unit: Yuan Currency: RMB
               Item                   Amount for the current period        Amount for the prior period
City maintenance and
construction tax
Education surcharges                                       741,743.40                          378,217.31
Local education surcharges                                 499,046.18                          248,054.96
Stamp duty                                               1,096,478.56                          591,733.50
Others                                                     273,538.81                          256,753.22
              Total                                      4,331,138.81                        2,329,710.56
Other description:
None
√ Applicable□ N/A
                                                                                 Unit: Yuan Currency: RMB
                                                             Amount for the        Amount for the prior
                        Item
                                                             current period                period
  Employee benefits                                             32,606,069.47               23,380,108.03
  Marketing fees                                                35,119,978.09               11,258,761.35
  After-sale repair expenses                                      6,280,390.31                7,335,750.91
  Advertising costs and business publicity expenses               2,043,151.94                2,025,841.22
  Business travel expenses                                        1,601,757.27                  650,816.90
  Business entertainment expenses                                 1,073,975.75                  344,196.59
  Other expenses                                                10,960,873.00                 5,838,419.50
                        Total                                   89,686,195.83               50,833,894.50
Other description:
increase in the marketing fees;
√ Applicable□ N/A
                                                                                 Unit: Yuan Currency: RMB
                     Item                          Amount for the current          Amount for the prior
                                                         period                           period
 Employee benefits                                          31,797,608.54                   27,739,712.49
 Rent expense                                                 4,795,962.93                   3,676,664.67
 Service fees                                               16,698,545.91                   17,562,845.34
 Depreciation and amortization fees                           3,365,970.11                   8,228,493.80
 Share-based payment expenses                               22,312,482.85                   17,576,543.47
 Other expenses                                               4,989,946.58                   3,029,397.32
                   Total                                    83,960,516.92                   77,813,657.09
Other description:
The decrease in depreciation and amortization fees is mainly due to the amortization of land use right
being recognized in construction in progress in the current period.
√ Applicable□ N/A
                                                                             Unit: Yuan Currency: RMB
                     Item                         Amount for the current       Amount for the prior
                                                        period                         period
 Employee benefits                                         60,494,851.79                54,917,336.45
 Material consumption expenses                               8,429,853.23                 9,045,544.84
 Rent expense                                                4,649,585.35                 4,614,423.44
 Service fees                                                7,094,850.80                 2,313,102.75
 Depreciation and amortization fees                          4,710,875.84                 6,299,814.11
 Testing expenses                                            2,384,569.29                 1,963,709.91
 Patent fees                                                 2,067,359.08                 4,325,481.23
 Other expenses                                              5,296,538.28                 3,816,038.02
                   Total                                   95,128,483.66                87,295,450.75
Other description:
None
√ Applicable□ N/A
                                                                             Unit: Yuan Currency: RMB
                     Item                         Amount for the current       Amount for the prior
                                                        period                        period
 Interest expenses                                         11,013,330.17                11,612,825.87
 Less: Interest income                                    -10,868,184.51                 -4,618,971.33
 Exchange profit or loss                                       508,948.95                   189,748.99
 Bank service charges                                          877,924.69                   854,087.51
                     Total                                   1,532,019.30                 8,037,691.04
Other description:
None
√ Applicable□ N/A
                                                                          Unit: Yuan Currency: RMB
                     Item                         Amount for the current    Amount for the prior
                                                        period                      period
  Government grants related to assets                          382,994.93                 17,881.98
  Government grants related to income                      51,598,892.61             31,357,361.04
  Refund of commissions for withholding
  individual income tax
  Additional deduction of input VAT                          2,336,589.39                1,546,791.95
                     Total                                 54,890,296.70                32,922,034.97
Other description:
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 using the equity method
 Investment income from disposal of
 held-for-trading financial assets
 Others                                                              3.00
                   Total                                     9,128,665.03                  11,726,688.51
Other description:
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                        38,175,900.00
 Including: Gains from changes in
 fair values on derivative financial
 instruments
 Held-for-trading financial liabilities
 Investment properties measured at
 fair value
                  Total                                   38,175,900.00
Other description:
Refer to VII. 2 of Section X
√ Applicable□ N/A
                                                                               Unit: Yuan Currency: RMB
                   Item                   Amount for the current period      Amount for the prior period
 Bad debt losses                                          9,407,031.23                      2,170,106.96
                 Total                                    9,407,031.23                      2,170,106.96
Other description:
None
√ Applicable□ N/A
                                                                               Unit: Yuan Currency: RMB
                                            Amount for the current
                   Item                                                     Amount for the prior period
                                                  period
 I. Loss of contract assets                                  -43,168.95
 II. Losses of decline in value of
 inventories and losses of contract                   -16,538,070.39                       -12,109,681.09
 performance cost
                 Total                                -16,581,239.34                       -12,109,681.09
Other description:
None
√ Applicable□ N/A
                                                                                Unit: Yuan Currency: RMB
               Item                    Amount for the current period          Amount for the prior period
 Gains on disposal of assets                            2,806,008.82                            149,620.91
               Total                                    2,806,008.82                            149,620.91
Other description:
□ Applicable√ N/A
√ Applicable□ N/A
                                                                            Unit: Yuan Currency: RMB
                                                                                Amount included in
                          Amount for the current       Amount for the prior
          Item                                                                non-recurring profit or
                                period                      period
                                                                                 loss for the period
 Total gains or losses
 from disposal of non-                     4,100.00                       8,412.77               4,100.00
 current assets;
 Including: Gains
 from disposal of                          4,100.00                       8,412.77               4,100.00
 fixed assets
         Gain from
 disposal of intangible
 assets
 Gains from debt
 restructuring
 Gains from exchange
 of non-monetary
 assets
 Acceptance of
 donations
 Government grants                    21,500,000.00                                         21,500,000.00
 Amounts not
 required for payment
 Indemnity                               630,000.00                 252,001.08                 630,000.00
 Others                                  106,580.14                   6,001.63                 106,580.14
          Total                       22,240,680.14                 270,615.48              22,240,680.14
Government grants included in profit or loss for the period
√ Applicable□ N/A
                                                                         Unit: Yuan Currency: RMB
                         Amount for the current     Amount for the prior  Related to assets/income
  Project with grants
                               period                    period
Grants for Fostering
                                                                              Government grants
Restructuring and                    1,500,000.00
                                                                              related to income
Listing in 2021
Project Support Fund
of Chongqing
Liangjiang New Area                                                           Government grants
Finance Bureau -                                                              related to income
Project Landing
Reward
Other description:
□ Applicable√ N/A
√ Applicable□ N/A
                                                                         Unit: Yuan Currency: RMB
                                                                             Amount included in
                        Amount for the current      Amount for the prior
         Item                                                              non-recurring profit or
                              period                     period
                                                                              loss for the period
 Total losses on
 disposal of non-                    170,231.21                  140,563.32               170,231.21
 current assets
 Including: Losses on
 disposal of fixed                   170,231.21                  140,563.32               170,231.21
 assets
 External donations                                              563,138.63
 Penalties and                        18,205.90                    1,000.00                18,205.90
 overdue fines
 Others                              217,064.50                   36,000.00               217,064.50
         Total                       405,501.61                  740,701.95               405,501.61
Other description:
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                           -6,460,456.12                    -5,067,377.70
              Total                                    46,305,525.16                     2,693,941.42
(2) Reconciliation of income tax expenses to the accounting profit
√ Applicable□ N/A
                                                                            Unit: Yuan Currency: RMB
                        Item                                   Amount for the current period
Total profit                                                                            226,100,424.85
Income tax expense calculated based on
statutory/applicable tax rate
Effect of different tax rates of subsidiaries
operating in other jurisdictions
Effect of adjustment on income tax for the period                                            694,125.81
Effect of non-taxable income                                                             -11,417,223.52
Effect of non-deductible cost, expense and loss                                              459,671.41
Effect of utilizing deductible loss not recognized
for deferred tax assets for prior period
Effect of deductible temporary difference or
deductible loss not recognized for deferred tax                                            9,988,835.94
assets for the current period
Changes in the opening balance of deferred
                                                                                            -131,071.45
income tax assets due to tax rate adjustment
Effect of additional R&D expenses deduction
Income tax expense                                                                        46,305,525.16
Other description:
□ Applicable√ N/A
√ Applicable□ N/A
Refer to the notes 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
Government grants                                          72,650,106.88                  29,527,428.69
Non-operating income                                           665,006.61                     258,002.71
Interest income                                            11,045,718.76                    4,618,971.33
Other monetary funds-margins                               21,445,628.07                  20,402,679.86
Bank deposits-frozen funds due to
litigation
Receivables and payables                                     7,695,541.37                 16,463,315.13
                 Total                                    113,502,001.69                  81,270,397.72
Description of other cash receipts relating to operating activities:
None
(2). Other cash payments relating to operating activities
√ Applicable□ N/A
                                                                            Unit: Yuan Currency: RMB
                 Item                   Amount for the current period      Amount for the prior period
Sales expenses, administrative and
R&D expenses paid in cash
Financial expenses paid in cash                            1,863,849.47                    854,087.51
Non-operating expenses                                        47,599.90                    600,138.63
Other monetary funds-margins                             28,107,696.66                  27,484,998.92
Receivables and payables                                   8,277,996.70                  3,395,213.71
                 Total                                  133,885,953.26                 100,146,106.20
Description of other cash payments relating to operating activities:
None
(3). Other cash receipts relating to investing activities
□ Applicable√ N/A
(4). Other cash payments relating to operating activities
□ Applicable√ N/A
(5).      Other cash receipts relating to financing activities
√ Applicable□ N/A
                                                                            Unit: Yuan Currency: RMB
                   Item                     Amount for the current period Amount for the prior period
Investment funds with repurchase right                     215,000,000.00
                  Total                                    215,000,000.00
Description of other cash receipts relating to financing activities:
None
(6).      Other cash payments relating to financing activities
√ Applicable□ N/A
                                                                            Unit: Yuan Currency: RMB
                 Item                      Amount for the current period Amount for the prior period
Share-based payment expenses                                      20,559.65                 22,587.36
Repayment to shareholders                                    19,320,000.00
Lease expenses                                               11,870,055.52
                 Total                                       31,210,615.17                  22,587.36
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
      Supplementary information                 Current period                     Prior period
 cash flow from operating activities:
 Net profit                                            179,794,899.69                   -8,378,244.17
 Add: Provision for impairment of
 assets
Losses of credit impairment                               -9,407,031.23     -2,170,106.96
Depreciation of fixed assets,
depletion of oil and gas assets,
depreciation of bearer biological
assets
Amortization of use right assets                           9,471,534.54
Amortization of intangible assets                          2,236,018.62      7,660,838.99
Amortization of long-term prepaid
expenses
Losses on disposal of fixed assets,
intangible assets and other long-term                     -2,806,008.82      -149,620.91
assets (gains are indicated by “-”)
Losses on retirement of fixed assets
(gains are indicated by “-”)
Losses on changes in fair values
                                                       -38,175,900.00
(gains are indicated by “-”)
Financial expenses (income is
indicated by “-”)
Investment losses (income is
                                                          -9,128,665.03    -11,726,688.51
indicated by “-”)
Decrease in deferred tax assets
                                                          -7,154,581.92     -5,071,725.84
(increase is indicated by “-”)
Increase in deferred tax liabilities
(decrease is indicated by “-”)
Decrease in inventories (increase is
                                                     -272,867,132.22      -142,500,844.11
indicated by “-”)
Decrease in receivables from
operating activities (increase is                     154,269,042.05       67,912,872.37
indicated by “-”)
Increase in payables from operating
activities (decrease is indicated by                      58,149,792.82    64,980,975.06
“-”)
Others                                                    22,012,624.67    17,576,543.47
Net cash flow from operating
activities
financing activities that do not
involve cash receipts and
payments:
Conversion of debt into capital
Convertible corporate bonds due
within one year
Fixed assets acquired under finance
leases
 equivalents:
 Closing balance of cash                               863,588,162.84                 686,296,049.61
 Less: Opening balance of cash                         983,525,089.44                 829,789,487.86
 Add: Closing balance of cash
 equivalents
 Less: Opening balance of cash
 equivalents
 Net increase in cash and cash
                                                      -119,936,926.60                -143,493,438.25
 equivalents
(2) Net cash paid to acquire subsidiaries for the current period
□ Applicable√ N/A
(3) Net cash receipts from disposal of subsidiaries for the current period
□ Applicable√ N/A
(4) Composition of cash and cash equivalents
√ Applicable□ N/A
                                                                           Unit: Yuan Currency: RMB
                Item                           Closing balance                Opening balance
 I. Cash                                              863,588,162.84                 983,525,089.44
 Including: Cash on hand                                     5,847.50                      5,858.56
       Bank deposit that can be paid
 at any time
       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
 Including: Restricted cash and cash
 equivalents of the Parent Company
 or subsidiaries within the Group
Other description:
□ Applicable√ N/A
Describe matters such as the names and the adjustment amounts of the items included in “others” in
respect of adjustments to the closing balances of the prior year:
□ Applicable√ N/A
√ Applicable□ N/A
                                                                            Unit: Yuan Currency: RMB
                Item                   Closing balance of carrying                  Reason
                                                amount
Other monetary funds                                   20,292,090.37 Margins
Bank deposits                                          40,000,000.00 Time deposits
Land use rights                                       297,566,999.88 Mortgage
                Total                                 357,859,090.25               /
Other description:
None
(1). Foreign currency monetary items
√ Applicable□ N/A
                                                                                           Unit: Yuan
                                                                                 Closing balance of
                                  Closing balance of
              Item                                          Exchange rate         RMB equivalent
                                   foreign currency
                                                                                      balance
 Cash and bank balances
 Including: USD                        10,081,456.17                  6.4601          65,127,215.00
        GBP                                   365.96                  8.9410               3,272.05
        HKD                             1,703,453.28                 0.83208           1,417,409.41
        VND                            93,612,676.00              0.0002806               26,267.72
 Accounts receivable
 Including: USD                         4,071,799.30                 6.4601           26,304,230.66
 Other receivables
 Including: USD                           168,481.83                 6.4601            1,088,409.47
           VND                        112,935,000.00              0.0002806               31,689.56
 Accounts payable
 Including: USD                        13,324,802.64                 6.4601           86,079,557.53
        EUR                                11,804.35                 7.6862               90,730.59
 Other payables
 Including: USD                           461,803.47                 6.4601            2,983,296.61
        VND                         3,200,185,170.00              0.0002806              897,971.96
 Non-current liabilities due
 within one year
 Including: USD                           316,838.82                  6.4601           2,047,190.67
        HKD                             2,293,226.99                 0.83208           1,908,148.31
        VND                           436,491,213.68              0.0002806              122,479.43
Other description:
None
(2). Description of overseas operating entities, including significant overseas operating entities,
    of which the major operation place, functional currency and choosing basis as well as the
    reason for change of functional currency should be disclosed
√ Applicable□ N/A
                                                         Major operation           Functional      Choosing
   Item
                                                         place overseas             currency         basis
                                                                                                  Common
 Appotronics Hong Kong Limited                               Hong Kong               USD
                                                                                                  currency
                                                                                                  Common
 Appotronics USA, Inc.                                       United States           USD
                                                                                                  currency
                                                                                                  Common
 Fabulus Technology Hong Kong Limited                        Hong Kong               USD
                                                                                                  currency
 JoveAI Limited                                                                                   Common
                                                         Cayman Islands              USD
                                                                                                  currency
                                                                                                  Common
 JoveAI Innovation, Inc.                                     United States           USD
                                                                                                  currency
                                                                                                  Common
 FORMOVIE TECHNOLOGY INC                                     United States           USD
                                                                                                  currency
                                                                                                  Local
 JoveAI Asia Company Limited                                   Vietnam               VDN
                                                                                                  currency
                                                                                                  Common
 WEMAX LLC                                                   United States           USD
                                                                                                  currency
□ Applicable√ N/A
√ Applicable□ N/A
                                                                                 Unit: Yuan Currency: RMB
                                                                                       Amount recognized
               Category                          Amount             Item presented     in current profit or
                                                                                               loss
 Government grants related to assets                                Other income                 382,994.93
 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
 and used for compensation of the
 Company’s relevant costs or losses that
 have been incurred
 Government grants related to income
 and used for compensation of the                                   Non-operating
 Company’s relevant costs or losses that                            income
 have been incurred
             Opening      Increased Amortization             Closing      Amortized
   Item                                                                                     Description
             balance government            for the           balance        item
                  of         grants for     current            of      presented
               deferred     the current     period          deferred    for the
               income         period                        income      current
                                                                        period
                                                                                   Contract on Project of
 High
                                                                                   Definition Laser
 Definition
                                                                                   Display Technology
 Laser
                                                                         Other     Engineering Research
 Display     1,699,187.35                    382,994.93 1,316,192.42
                                                                        income     Center made by the
 Technology
                                                                                   Development and
 Engineering
                                                                                   Reform Commission of
 Research
                                                                                   Shenzhen Municipal
 Center
                                                                                   (XMHT20190101023)
    Sub-
 total
costs or losses in subsequent periods
                                                                           Carrie
                                                                              d-
                                                                           forwar
                                 Increased
                  Opening                     Carrying        Closing      d item
                                government
                 balance of                  forward for     balance of    presen
 Item                            grants for                                           Description
                  deferred                   the current      deferred     ted for
                                the current
                   income                       period        income         the
                                   period
                                                                           curren
                                                                               t
                                                                           period
                                                                                   Contract on
 Ultra-high
                                                                                   Shenzhen Science
 Brightness
                                                                                   and Technology
 Laser
                                                                                   Plan Project made
 Light
                                                                                   by Shenzhen
 Source                                                                     Other
                                                                                   Science and
 Engineeri         1,683,873.26                1,414,127.27     269,745.99 incom
                                                                                   Technology
 ng                                                                           e
                                                                                   Innovation
 Technolog
                                                                                   Commission
 y
                                                                                   (Shen Ke Ji
 Research
                                                                                   Chuang Xin
 Center
                                                                                   [2019] No. 33)
                                                                                       Notice on the
                                                                                       Approval of Key
                                                                                       Projects of
                                                                                       Strategic
                                                                                       Advanced
Trichroma                                                                              Electronic
tic Laser                                                                              Materials of
Display                                                                                National Key
Complete                                                                               R&D Plan in
                                                                               Other
Equipmen                                                                               2018 issued by
t                                                                                      the High
                                                                               e
Productio                                                                              Technology
n                                                                                      Research and
Demonstr                                                                               Development
ation Line                                                                             Center of the
                                                                                       Ministry of
                                                                                       Science and
                                                                                       Technology (Guo
                                                                                       Ke Gao Fa Ji Zi
                                                                                       [2018] No. 41)
Research
and
Developm                                                                               Electronic Office
ent of Key                                                                             Report on
Technolog                                                                              Technology
ies of                                                                                 Breakthrough
Ultra High                                                                             Project of
Definition                                                                             Shenzhen Science
                                                                               Other
Micro                                                                                  and Technology
Laser                                                                                  Innovation No.
                                                                               e
Projection                                                                             2021124 issued
Optical                                                                                by Shenzhen
Engine                                                                                 Science and
Based on                                                                               Technology
Light-                                                                                 Innovation
emitting                                                                               Commission
Ceramic
Devices
Key
                                                                                       Assignment of
Technolog
                                                                                       R&D Plan
y of
                                                                                       Projects in key
Trichroma                                                                      Other
                                                                                       Areas of
tic Laser                     255,000.00      255,000.00                       incom
                                                                                       Guangdong
Display                                                                        e
                                                                                       Province made by
Complete
                                                                                       Shenzhen Finance
Equipmen
                                                                                       Bureau
t
 Industriali                                                                     (2019B01092600
 zation                                                                          1)
 Sub-total     15,024,069.80   4,070,480.27    3,450,815.82   15,643,734.25
costs or losses that have been incurred
                                             Item
 Item
                            Amount           presented     Description
                                             Other
 VAT Refund                     1,673,676.21
                                             income
 Job Stabilization                           Other
 Subsidy                                     income
                                                           Provisions of Guangdong Province on
 Maternity Subsidy
                                             Other         Employees Maternity Insurance
 from Shenzhen Social             124,908.48
                                             income        promulgated by Shenzhen Social Insurance
 Security Bureau
                                                           Fund Administration
 Fund from Shunyi Park
 Management
                                                           Notice of Shunyi District People’s
 Committee of
                                                           Government of Beijing Municipality on
 Zhongguancun Science
                                             Other         Issuing the Support Measures for
 and Technology Park            2,200,000.00
                                             income        Promoting the Development of Enterprises
 in 2019 Supporting
                                                           in Shunyi District (Shun Zheng Fa [2017]
 Development of
                                                           No. 38 )
 Enterprises in Shunyi
 District
                                                           Special Fund for Independent Innovation
 Value Award Project
                                             Other         Industry Development of Nanshan District
 of Shenzhen Nanshan            3,830,100.00
                                             income        (for Economic Development) - Application
 District Finance
                                                           for Industrial Added Value Award Project
 Bureau
 The First Reported
 Fund for the Second                                       Notice of Shenzhen Administration for
 Batch of Patents in                                       Market Administration on Handling the
                                             Other
                                             income
 Agency of Shenzhen                                        Shenzhen Intellectual Property Special
 Intellectual Property                                     Fund in 2019
 Administration 30-27
 One Time Subsidy on
 the Post-doctoral                                         Publicity List of Proposed One Time
 Station Unit from                                         Subsidy on the Station Unit in Shenzhen
                                             Other
 Shenzhen Human                   500,000.00               (the Second Batch in 2020) - Website of
                                             income
 Resources and Social                                      Shenzhen Human Resources and Social
 Security Bureau (the                                      Security Bureau
 Second Batch in 2020)
Subsidy for Economic
Development in 2021                                    Allocation Plan of Special Funds for
under Application                                      Promoting High-quality Economic
                                          Other
ZK01202103000097            300,000.00                 Development in 2020 (the Third Batch)
                                          income
from Shenzhen                                          issued by Guangdong Administration for
Administration for                                     Market Regulation
Market Administration
                                                       Special Fund for the Development of
Government Subsidy
                                                       Independent Innovation Industry in
from the Patent
                                          Other        Nanshan District (for Scientific and
Agency of Shenzhen          600,000.00
                                          income       Technological Innovation) - Science and
Intellectual Property
                                                       Technology Award Support Plan of
Administration
                                                       Nanshan District
Subsidy for Post-
                                                       Application for Special Fund for
doctoral Station Unit
                                                       Independent Innovation Industry
from Human                                Other
Resources Bureau of                       income
                                                       Shenzhen - Post-doctoral Station Unit
Nanshan District in
                                                       Project (2021)
Shenzhen
Enterprise R&D
                                                       Special Fund for Independent Innovation
Investment Support
                                                       Industry Development in Nanshan District
Plan of the Science and                   Other
Technology Innovation                     income
                                                       Innovation) - Application for Enterprise
Bureau of Nanshan
                                                       R&D Investment Support Plan (2020)
District in Shenzhen
Supplementary                                          Further Notice of Nanshan District
Housing Rent for                                       Housing and Construction Bureau on
Talents from the                          Other        Supplementary Housing Rent for Talents
Finance Bureau of                         income       in Nanshan District in 2021 issued by the
Nanshan District in                                    Industry and Information Technology
Shenzhen                                               Bureau of Nanshan District in Shenzhen
Project Support Fund
of Chongqing                                           Technology Investment Agreement
                                          Non-
Liangjiang New Area                                    between Chongqing Liangjiang New Area
                                          operating
Finance Bureau -          20,000,000.00                Management Committee and Fengmi
                                          income
Project Landing                                        (Contract No.: LJCY-2020-023-TZ)
Reward
Project Support Fund                      Other        Technology Investment Agreement
of Chongqing              30,000,000.00   income       between Chongqing Liangjiang New Area
Liangjiang New Area                                    Management Committee and Fengmi
Finance Bureau -                                       (Contract No.: LJCY-2020-023-TZ)
Support Fund for
Headquarters
Relocation
The First Batch of                                     The First Batch of Subsidy for Domestic
                                          Other
Subsidy for Domestic       1,807,500.00                and Overseas Invention Patents in 2020
                                          income
and Overseas Invention                                 (Received on June 11, 2021)
Patents in 2020 from
the Patent Agency of
Shenzhen Intellectual
Property
Administration
The First Batch of
Grants for Enterprise                                 Notice of Shenzhen Science and
R&D Funding in 2020                                   Technology Innovation Commission on
from the High Tech                       Other        Publicizing the List of the First Batch of
Department of                            income       Enterprises to be Funded and the Second
Shenzhen Science and                                  Batch of Enterprises to be Reviewed under
Technology innovation                                 the Enterprise R&D Funding Plan in 2020
Commission
Fund for Patent
                                                      Notice of Shunyi District People’s
Promotion and
                                                      Government of Beijing Municipality on
Protection Project from
                                         Other        Issuing the Rules for the Implementation
Administration for          10,000.00
                                         income       of Patent Promotion and Protection in
Market Regulation of
                                                      Shunyi District (Shun Zheng Fa (2019)
Shunyi District in
                                                      No.10)
Beijing
                                                      According to the guidance of Several
                                                      Opinions on Promoting the Development
                                                      of Cultural and Creative Industries in
Publicity Department                                  Shunyi District (Shun Zheng Fa [2013]
of Beijing Shunyi                                     No. 13) and the Management Measures on
District Committee of                                 Special Funds for the Development of
                                         Other
the Communist Party       3,000,000.00                Cultural and Creative Industries in Shunyi
                                         income
of China - 2020                                       District (Revised) (Shun Xuan Fa [2016]
Cultural and Creative                                 No. 6), the Publicity Department of the
Fund                                                  District is now soliciting projects to be
                                                      granted with the special fund for the
                                                      development of cultural industry in Shunyi
                                                      District in 2020 (“Special Fund”).
Funding for Industrial
                                                      Application for Special Fund for
Development and
                                                      Independent Innovation Industry
Innovative Talents
                                         Other        Development of Nanshan District,
from the Human             282,247.00
                                         income       Shenzhen - Funding Project for Industrial
Resources Bureau of
                                                      Development and Innovative Talents in
Nanshan District in
                                                      Nanshan District (2020)
Shenzhen
Allocation to the
Standard Field of
Shenzhen in 2020 from                                 List of Activities Meeting Incentive
                                         Other
Shenzhen                   300,000.00                 Standard to be Funded by Shenzhen
                                         income
Administration for                                    Special Fund in Standard Field in 2020
Market Administration
ZK0120210600108
 Allocation to the
 Standard Field of
 Shenzhen in 2020 from                                         List of Activities Meeting Incentive
                                                 Other
 Shenzhen                         100,000.00                   Standard to be Funded by Shenzhen
                                                 income
 Administration for                                            Special Fund in Standard Field in 2020
 Market Administration
 ZK0120210600108
                                                               Notice of Shenzhen SME Service Bureau
 Grants for Fostering                                          on Handling the Allocation of Subsidy for
 Restructuring and                               Non-          the Restructuring and Listing Fostering
 Listing in 2021 from           1,500,000.00     operating     Projects of the Municipal Private and
 Shenzhen SME Service                            income        Small and Medium-sized Enterprises under
 Bureau                                                        the Innovation and Development Support
                                                               Plan in 2021
 Sub-total                     69,652,127.98
√ Applicable□ N/A
                                                                                 Unit: Yuan Currency: RMB
                Item                               Amount                               Reason
                                                                           The number of employees is not
 Hong   Kong      Government
 Employment Protection Scheme
                                                                           grants
Other description
None
□ Applicable√ N/A
VIII.     Changes in scope of consolidation
□ 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 description:
□ Applicable√ N/A
Description of changes in the scope of consolidation for other reasons (e.g., new subsidiary
establishment and subsidiary liquidation, etc.) and the relevant information:
√ Applicable□ N/A
Established by the Company on December 29, 2020, Fengmi (Chongqing) Innovation Technology Co.,
Ltd. engaged in no substantive business at the beginning of its establishment, and conducted its business
on March 12, 2021 with capital injection, who accordingly is included into the scope of consolidation.
□ Applicable√ N/A
IX. Equity in other entities
(1). Composition of enterprise group
√ Applicable□ N/A
                          Princip                                              Proportion of
                             al   Registr                                    shareholding (%)   Acquisit
         Subsidiary
                          operati  ation                Business nature                           ion
           Name                                                                       Indirec
                            on     place                                     Direct             method
                                                                                         t
                           place
 Appotronics Timewaying                             Sales;     technology
                                                                                                Establis
 (Beijing) Technology     Beijing Beijing           development,                 90
                                                                                                hment
 Co., Ltd.                                          consulting
                                                    Technology
 Shenzhen Appotronics                               development       and
                               Shenzh    Shenzh                                                 Establis
 Software Technology                                sales of computer           100
                                 en        en                                                   hment
 Co., Ltd.                                          software          and
                                                    hardware
                                                    Technology
 Beijing Orient
                                                    promotion; computer                         Establis
 Appotronics Technology        Beijing   Beijing                                 59
                                                    systems, application                        hment
 Co., Ltd.
                                                    software services
                                                    Development,
 Shenzhen Appotronics
                               Shenzh    Shenzh     consultation      and                       Establis
 Xiaoming Technology                                                            100
                                 en        en       transfer of laser                           hment
 Co., Ltd.
                                                    display technology
 Fengmi (Chongqing)
                               Chong     Chong      Import and export of                        Establis
 Innovation Technology                                                        39.19
                                qing      qing      goods and technology                        hment
 Co., Ltd.
                                                    Technology        and
 Fengmi (Beijing)                                                                               Establis
                               Beijing   Beijing    software                            39.19
 Technology Co., Ltd.                                                                           hment
                                                    development
                                                                                                Business
                                                                                                combina
                                                                                                tion
 Shenzhen Appotronics
                               Shenzh    Shenzh     R&D and sales of                            involvin
 Laser Display                                                                  100
                                 en        en       laser display products                      g entities
 Technology Co., Ltd.
                                                                                                under
                                                                                                common
                                                                                                control
                                                    Research         and                        Business
                                                    development,                                combina
                                                    production, technical                       tion
 CINEAPPO Laser
                                                    services, sales and                         involvin
 Cinema Technology             Beijing   Beijing                              24.84     38.36
                                                    leasing   of    laser                       g entities
 (Beijing) Co., Ltd.
                                                    cinema     projection                       under
                                                    equipment and other                         common
                                                    products                                    control
Qingda Appotronics                           Information
                          Shenzh   Xiame                                            Establis
(Xiamen) Technology                          technology               51
                            en       n                                              hment
Co., Ltd.                                    consulting services
                                             Software
Shenzhen Appotronics                         development        for
                          Shenzh   Shenzh                                           Establis
Laser Technology Co.,                        semiconductor            100
                            en       en                                             hment
Ltd.                                         optoelectronic
                                             devices
                                             Software
Shenzhen Appotronics                         development related
                          Shenzh   Shenzh                                           Establis
Home Line Technology                         to     semiconductor     100
                            en       en                                             hment
Co., Ltd.                                    optoelectronic
                                             products
                                             Production, research
                                             and     development,
                                             sales,    consulting,
                                             investment and video
Appotronics Hong Kong     Hong     Hong                                             Establis
                                             content value-added      100
Limited                   Kong     Kong                                             hment
                                             business            of
                                             semiconductor
                                             optoelectronic
                                             products
                                                                                    Business
                                                                                    combina
                                             R&D, manufacture
                                                                                    tion
                                             and      sales of
                                                                                    involvin
Appotronics USA, Inc.     USA      USA       semiconductor                   100
                                                                                    g entities
                                             optoelectronic
                                                                                    under
                                             products
                                                                                    common
                                                                                    control
Fabulus Technology        Hong     Hong      R&D, manufacture                       Establis
Hong Kong Limited         Kong     Kong      and sales of screens                   hment
                          Cayma    Cayma
                                             No specific business                   Establis
JoveAI Limited               n        n                                     64.29
                                             conducted                              hment
                          Island   Island
                                             R&D of laser display                   Establis
JoveAI Innovation, Inc.   USA      USA                                      64.29
                                             software system                        hment
                                             Technical research
                                             and development of
Appotronics Technology    Chang    Chang     projection                             Establis
(Changzhou) Co., Ltd.     zhou     zhou      equipment,     screen                  hment
                                             and        electronic
                                             computer.
FORMOVIE                                     No specific business                   Establis
                          USA      USA                                      39.19
TECHNOLOGY INC                               conducted                              hment
JoveAI Asia Company       Vietna   Vietna    Technical research                     Establis
Limited                     m        m       and development of                     hment
                                                     projection
                                                     equipment,    screen
                                                     and        electronic
                                                     computer.
                                                                                                   Business
                                                                                                   combina
                                                                                                   tion
 Tianjin Bainian Film                                No specific business                          involvin
                               Tianjin    Tianjin                              99.00       1.00
 Partnership (LP)                                    conducted                                     g entities
                                                                                                   under
                                                                                                   common
                                                                                                   control
                                                     Technology
                                                     development, sales
 Shenzhen Appotronics          Shenzh     Shenzh     and technical services                        Establis
 Display Device Co., Ltd.        en         en       of display products;                          hment
                                                     import and export
                                                     business
                                                     Sale     of      laser                        Establis
 WEMAX LLC                      USA        USA                                              100
                                                     equipment                                     hment
Description of the difference between the proportion of shareholding and the proportion of voting rights
in a subsidiary:
None
Basis for holding half of the voting rights or below but still controlling the investee, and holding over half
voting right but having no control over the investee:
The Company has a shareholding of 39.19% in and the largest shareholder of Fengmi (Chongqing), and
together with Shenzhen Fengye Investment Consulting Limited Partnership (LP), the person acting in
concerted, has appointed 4 directors among the 7 members of the board of directors of Fengmi
(Chongqing). Fengmi (Chongqing) is under the control of the Company and thus is included into the
scope of consolidation.
Basis for controls over significant structured entities included in consolidation scope:
None
Basis to determine the company acts as the agent or the principal:
None
Other description:
None
(2). Significant non-wholly subsidiaries
√ Applicable□ N/A
                                                                                  Unit: Yuan Currency: RMB
                      Shareholding by         Profit or loss        Dividends declared Closing balance
   Subsidiaries          minority             attributable to       for distribution to      of minority
                       shareholders              minority                minority             interests
                     Percentage (%)     shareholders for the      shareholders in the
                                           current period           current period
 Fengmi
 (Chongqing)
 Innovation                     60.81          9,034,446.12                             -128,397,510.69
 Technology
 Co., Ltd.
 CINEAPPO
 Laser Cinema
 Technology                     36.80         22,890,606.78            11,040,000.00    151,163,808.22
 (Beijing) Co.,
 Ltd.
Description of the difference between the proportion of shareholding by minority shareholders and their
proportion of voting rights in a subsidiary:
□ Applicable√ N/A
Other description:
□ Applicable√ N/A
(3). Significant financial information of significant non-wholly subsidiaries
√ Applicable□ N/A
                                                                                                                                                                                           Unit: Yuan Currency: RMB
                                                          Closing balance                                                                                       Opening balance
 Subsidiarie
                                    Non-current                          Current        Non-current        Total                          Non-current                         Current          Non-current         Total
     s            Current assets                    Total assets                                                        Current assets                    Total assets
                                      assets                            liabilities      Liabilities     Liabilities                        assets                           liabilities        Liabilities      Liabilities
 Fengmi
 (Chongqin
 g)               761,120,189.3                    798,948,689.8   891,040,646.7                       899,571,717.6    602,633,550.2                    621,792,674.9     692,687,626.4                       699,851,445.5
 Innovation                   9                                9               6                                   1                3                                3                 1                                   3
 Technolog
 y Co., Ltd.
 CINEAPP
 O Laser
 Cinema           206,894,037.4    731,840,175.4   938,734,212.8   443,678,339.7       84,284,655.0    527,962,994.8    218,507,767.0    714,506,195.0   933,013,962.1     509,106,720.2      45,338,759.7     554,445,479.9
 Technolog                    0                1               1               9                  5                4                8                9               7                 6                 2                 8
 y (Beijing)
 Co., Ltd.
                                                     Amount for the current period                                                                         Amount for the prior period
                                                                                Total                                                                                              Total
  Subsidiaries                                                                                    Cash flow from                                                                                         Cash flow from
                        Operating income             Net profit             comprehensive                                  Operating income              Net profit            comprehensive
                                                                                                 operating activities                                                                                   operating activities
                                                                               income                                                                                             income
 Fengmi
 (Chongqing)
 Innovation                   531,216,939.04            12,761,375.30          12,761,391.07            31,963,176.54            396,335,864.51           -10,418,569.26          -10,418,569.26               83,212,791.30
 Technology
 Co., Ltd.
 CINEAPPO
 Laser Cinema
 Technology                   244,006,736.50            59,012,508.09          59,012,508.09            99,458,332.40             78,528,870.68           -34,638,400.65          -34,638,400.65               22,787,991.80
 (Beijing) Co.,
 Ltd.
Other description: Due to the implementation of the New Lease Standards, Fengmi (Chongqing) Innovation Technology Co., Ltd. and CINEAPPO Laser Cinema
Technology (Beijing) Co., Ltd. adjusted the opening balances on the balance sheets on a retrospective basis without adjusting comparable data.
(4). Significant limitations on use of the group assets and paying off the group debts:
□ Applicable√ N/A
(5). Financial or other support provided to structured entities included in consolidated financial
statements:
□ Applicable√ N/A
Other description:
□ Applicable√ N/A
transactions of subsidiaries
√ Applicable□ N/A
(1) Description on changes in shares of owners' equity in subsidiaries
√ Applicable□ N/A
During the reporting period, Fengmi (Chongqing), a subsidiary of the Company, introduced strategic
investors through equity transfer and capital increase. By June 30, 2021, the capital increase has been
completed, as a result of which, the Company’s shareholding ratio in Fengmi (Chongqing) has decreased
from 55% to 39.19%.
(2) Effect of the transaction on the minority interests and the equity attributable to owners of the
parent company
√ Applicable□ N/A
                                                                            Unit: Yuan Currency: RMB
                                                     Fengmi (Chongqing) Innovation Technology Co.,
                                                     Ltd.
  Purchase cost/disposal consideration
  --Cash                                                                               202,631,579.00
  --Fair value of non-cash assets
  Total purchase cost/disposal consideration                                           202,631,579.00
  Less: Pro-rata net assets of the subsidiary                                          110,009,334.25
  calculated according to the proportion of equity
  acquired/disposed
  Difference                                                                            92,622,244.75
  Including: Capital reserve adjustment                                                 92,622,244.75
             Surplus reserve Adjustment
             Retained profits Adjustment
Other description
□ Applicable√ N/A
√ Applicable□ N/A
(1). Significant associates or joint ventures
√ Applicable□ N/A
                                                                           Unit: Yuan Currency: RMB
                                                                          Proportion of         Accounting
                                                                        shareholding (%)         treatment
     Name of          Principal
                                  Registration                                                  method for
   associates or      operation                      Business nature
                                     place                                                    investments in
  joint ventures        place                                            Direct   Indirect
                                                                                               joint ventures
                                                                                              and associates
                                                  R&D, production,
 GDC                  Asia and    British         and sale of digital                         Accounting for
 Technology           North       Virgin          cinema servers and                36.00     under equity
 Limited (BVI)        America     Islands         cinema management                           method
                                                  system
Description of variances between shareholding ratio and the ratio of voting rights in joint ventures or
associates:
None
Basis that the Company owns less than 20% voting rights but may exercise major impact, or that the
Company owns 20% or over voting rights but does not has major impact:
None
(2). Major financial information of significant joint ventures
□ Applicable√ N/A
(3). Major financial information of significant associates
√ Applicable□ N/A
                                                                                Unit: Yuan Currency: RMB
                                                                                         Opening
                                                 Closing balance/amount of this
                                                                                  balance/amount of last
                                                             period
                                                                                          period
                                                             GDC                       GDC (note 2)
 Current assets                                                 547,485,818.74            553,504,350.37
 Non-current assets                                               65,118,156.91            72,596,748.61
 Total assets                                                   612,603,975.65            626,101,098.98
 Current liabilities                                            377,810,943.71             379,295,268.80
 Non-current Liabilities                                         12,862,485.47              41,349,472.31
 Total Liabilities                                              390,673,429.18             420,644,741.11
 Minority interests
 Interests attributable to shareholders of
 the parent company
 Share of net assets calculated by
 ownership percentage
 Adjustment                                                      62,255,140.10               62,044,191.37
 --Goodwill                                                      62,560,946.33               62,560,946.33
 --Unrealized profits for inside
                                                                     -305,806.23        -516,754.96
 transactions
 --Others
 Carrying amount of investment of
 associate
 Fair values of equity investments in
 associates having publicly quoted prices
 Operating income                                              133,586,629.37         44,845,312.70
 Net profit                                                     14,713,439.07          2,142,306.37
 Net profit of discontinued operations
 Other comprehensive income                                      3,894,036.40          2,565,157.07
 Total comprehensive income                                     18,607,475.46          4,707,463.44
 Dividends received from associates in
 the current year
Other description
None
(4). Summary financial information of insignificant joint ventures and associates
√ Applicable□ N/A
                                                                            Unit: Yuan Currency: RMB
                                        Closing balance/2019              Opening balance / 2018
 Joint ventures:
 Total book value of
 investments
 Total amounts calculated based on shareholding proportions
 --Net profit
 --Other comprehensive income
 --Total comprehensive income
 Associates:
 Total book value of
 investments
 Total amounts calculated based on shareholding proportions
 --Net profit                                         1,131,089.51                         217,201.22
 --Other comprehensive income                        -2,612,904.61                      -1,059,162.87
 --Total comprehensive income                        -1,481,815.09                        -841,961.65
Other description
Main information of associates:
                                                         Proportion of shareholding (%) Accounting
                                                                                            treatment
                 Principal
                             Registration Business                                         method for
  Associates     operation
                                place         nature          Direct          Indirect    investments
                   place
                                                                                              in joint
                                                                                             ventures
                                                                                                  and
                                                                                              associates
                                                                                              Accounting
                                              Sale of
   Cinionic       Europe                                                                       for under
                               Hong Kong      cinema                              20.00
   Limited       and USA                                                                         equity
                                             projectors
                                                                                                method
(5). Descriptions of significant limitations over the ability of joint ventures or associates to
transfer funds to the Company
□ Applicable√ N/A
(6). Excessive loss of joint venture or associates
□ Applicable√ N/A
(7). Unrecognized commitment relating to investments in joint ventures
□ Applicable√ N/A
(8). Contingent liabilities relating to investments in joint ventures or associates
□ Applicable√ N/A
□ 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 maximum tolerance to risk, implement risk management, and monitor regularly and
effectively these exposures to ensure the risks are monitored at a certain level.
     The Company is exposed to various risks associated with financial instruments in its daily routines,
primarily including credit risk, liquidity risk and market risk. The management has reviewed and approved
policies to manage these risks, summarized as below.
     (I) Credit risk
     Credit risk refers to the risk that a party of the financial instrument will default on its obligations
resulting in financial loss to the counterparty.
     (1) Evaluation of credit risk
      The Company assesses at each balance sheet date whether the credit risk of the underlying financial
instruments has increased significantly since initial recognition. In determining whether the credit risk has
increased significantly since initial recognition, the Company considers reasonable and supportable
information that is available without undue cost or effort, including quantitative and qualitative analysis
based on historical data, ranking of external credit risks and forward-looking information. The Company
compares the risk of a default occurring on a financial instrument as at the balance sheet date with the risk
of a default occurring on the financial instrument as at the date of initial recognition based on individual
financial instrument or a group of financial instruments with similar credit risk characteristic, to determine
the change of the risk of a default occurring on a financial instrument over the expected life.
      The Company considers the credit risk of financial instruments has increased significantly when one
or more of the following quantitative and qualitative criteria are met:
default over the remaining life of the financial instruments as of the balance sheet date when comparing
with that at initial recognition of the financial instruments;
conditions that are expected to cause a significant decrease in the debtor's ability to meet its debt
obligations, and an actual or expected significant adverse change in the technological, market, economic,
or legal environment of the debtor that results in a significant decrease in the debtor’s ability to meet its
debt obligations.
      (2) Definition of defaulted or credit-impaired assets
      A financial asset is defined as defaulted when the financial instrument meets one or more conditions
stated as below, and the criteria of defining defaulted asset is consistent with that of defining credit-
impaired asset:
difficulty, has granted to the debtor a concession(s) that the 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.
of financial instruments can refer to the description in VII 4, 5 and 8 of Section X.
      The Company's credit risk is primarily from cash and bank balances and receivables. In order to
control the risks associated with aforementioned items, the Company has taken the following measures.
      (1) Cash and bank balances
      The credit risk of the Company is limited because the Company has deposited bank deposits and
      other monetary funds in banks with high credit ratings.
      (2) Receivables
      The Company regularly evaluates the creditworthiness of its customers with deals on credit, and
selects to deal with approved and creditworthy customers subject to the results of the credit assessment
with monitoring the balance of its receivables, so as to ensure that the Company is not exposed to
significant risk of bad debt.
      No collaterals are required since the Company only deals with third parties that are approved and
creditworthy. The concentrated credit risks are managed by customers. As June 30, 2021, the Company
faced certain credit concentration risks 60.03% (December 31, 2020: 86.37%) of the Company's accounts
receivable comes from top 5 customers. The Company held no collateral or other credit ranking measures
for the balance of accounts receivable.
      The maximum exposure to the Company is the carrying amount of each financial asset in the balance
sheet.
      (II) Liquidity risk
      Liquidity risk refers to the risk that the Company is in shortage of funds in performing obligations
that are settled by delivering cash or another financial asset. Liquidity risk may arise from an inability to
sell a financial asset at fair value as soon as possible, a counterparty's inability to pay its contractual
liabilities, the accelerated maturity of liabilities, or an inability to generate expected cash flows.
      In order to control this risk, the Company balances the continuity and flexibility of financing by using
various financing measures such as notes settlement and bank loans comprehensively and adopting both
long-term and short-term financing methods to optimize the financing structure. The Company has
received credit facilities from a number of commercial banks to satisfy its working capital requirements
and capital expenditures.
     Financial liabilities classified by remaining maturity dates
                                                           Closing balance
   Item                                  Undiscounted
                       Book value                              Within 1 year       1-3 years        Over 3 years
                                        contract amount
 Bank borrowings      256,263,752.33      261,284,410.71       153,573,265.07    107,711,145.64
 Notes payable        180,257,484.74      180,257,484.74       180,257,484.74
 Accounts
 payable
 Other payables       251,631,758.97     251,631,758.97        251,631,758.97
 Long-term
 accounts payable
     Sub-total        963,586,812.14     968,914,325.27        857,666,274.88    111,248,050.39
     (Continued to above table)
                                                           Opening balance
   Item                                  Undiscounted                                                  Over 3
                       Book value                              Within 1 year        1-3 years
                                        contract amount                                                years
 Bank borrowings      335,041,546.85      347,893,031.23        281,565,349.76      66,327,681.47
 Notes payable        116,822,674.67      116,822,674.67        116,822,674.67
 Accounts
 payable
 Other payables        58,821,952.01       58,821,952.01         58,821,952.01
 Long-term
 accounts payable
     Sub-total        740,443,439.43      753,604,856.56        683,704,792.34      69,900,064.22
     Note: Refer to the description in V. 44 of Section X for details of the difference between the opening
balance of this period and the closing balance of prior year (as at December 31, 2020)
      (III) Market risk
      Market risk refers to the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in market prices. Market risk mainly includes interest rate risk and currency
risk.
      Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in market interest rates. Interest rate risk is the risk that the fair value or
future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The
Company is exposed to the risk of fair value interest rate due to financial instruments with a fixed interest
rate and to the risk of cash value interest rate due to financial instruments with a floating interest rate. The
Company determines the proportion between the fixed-rate financial instruments and the floating-rate
financial instruments based on market conditions, and maintains appropriate portfolios of financial
instruments through regular review and monitoring. The cash flow interest rate risk exposed to the
Company relates primarily to the Company’s floating-rate interest-bearing bank borrowings.
      As of June 30, 2021, the Company held bank loans of RMB 255,912,194.76 as principal (December
unchanged, a change in the interest rate by 50 base points will not cause significant impact on the total
profits and shareholders’ equity of the Company.
      Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in foreign exchange rates. The Company's exposure to the currency risk is primarily
associated with the Company’s monetary assets and liabilities dominated in foreign currencies. The
Company's exposure to the currency risk is primarily associated with the Company’s monetary assets and
liabilities dominated in foreign currencies. If the monetary assets and liabilities dominated in foreign
currencies are imbalanced in a short time, the Company will purchase and sell foreign currencies at the
market exchange rate to keep the net risk exposure acceptable.
      The closing balance of the Company’s monetary assets and liabilities dominated in foreign currencies
are disclosed in VII.82 of Section X in details.
XI. Disclosure of fair value
√ 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
value through profit or loss
(1) Investment in debt
instrument
(2) Investment in equity
instrument
(3)Derivative financial
assets
(4) Structural deposits                                             420,000,000.00 420,000,000.00
(5) Performance
compensation                                                         37,982,988.00 37,982,988.00
consideration
assets at fair value through
profit or loss
(1) Investment in debt
instrument
(2) Investment in equity
instrument
(II) Other debt investments
(III) Other equity
instrument investments
(IV) Investment properties
leasing purpose
the purpose of transfer
after value appreciation
(V) Biological assets
assets
   Receivables financing                                  1,214,306.00    1,214,306.00
Total assets continuously
measured at fair value
(VI) Held-for-trading
financial liabilities
fair value through profit or
loss
Including: Held-for-
trading bonds issued
         Derivative
financial liabilities
         Others
liabilities at fair value
through profit or loss
Total liabilities
continuously measured
at fair value
II. Non-continuous fair
value measurement
(I) Held-for-sale assets
Total assets that are not
continuously measured
at fair value
Total liabilities that are
not continuously
measured at fair value
    measurement items
□ Applicable√ N/A
    for continuous and non-continuous level 2 fair value measurement items
□ Applicable√ N/A
     for continuous and non-continuous level 3 fair value measurement items
√ Applicable□ N/A
     No open market is available for the structural deposits, receivables financing and other equity
instrument investments classified as financial assets at fair value through profit or loss for the current
period, whose fair value is thus measured at cost.
     The performance compensation classified as financial assets at fair value through profit or loss for
the current period arose from the failure of GDV BVI, a subsidiary of the Company, to fulfil the
performance commitment, in which case the performance promisor shall make compensation with 8% of
the equity in GDV BVI and USD 1.2 million. The fair value of the said 8% equity is calculated according
to the Asset Appraisal Report (Peng Xin Zi Ping Bao Zi [2021] No. S064) issued by Shenzhen Pengxin
Asset Appraisal and Real Estate Valuation Co., Ltd..
    unobservable parameters for continuous level 3 fair value measurement items
□ Applicable√ N/A
    determining transfer time point for continuous fair value 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    Proportion of the
 Name of the     Registration      Business        Registered        the Company's Company's voting
   parent           place           nature          capital          shares held by    right held by the
                                                                     the parent (%)       parent (%)
 Shenzhen                        R&D and
 Appotronics                     sales of
                 Shenzhen                                    1,000            17.62                17.62
 Holdings                        semiconductor
 Co., Ltd.                       products
Description of the parent of the Company
None
The ultimate controlling party of the Company is LI Yi.
Other description:
None
Please refer to the Notes for details about the subsidiaries of the Company.
√ Applicable□ N/A
Refer to the description in IX.1 of Section X for details about the subsidiaries of the Company.
Information of the significant joint ventures or associates of the Company are disclosed in the Annex.
√ Applicable□ N/A
Refer to the description in Note IX.3 of Section X for details about the major joint ventures or associates
of the Company.
Details of other joint ventures or associates having related-party transactions and balances with the
Company in the period or in prior periods:
√ Applicable□ N/A
    Name of associates or joint ventures                  Relationship with the Company
 Cinionic Limited                             Associate
 GDC Technology Limited (BVI)                 Associate
Other description
√ Applicable□ N/A
Refer to the description in IX.3 of Section X for details of the Company’s associates.
√ Applicable□ N/A
          Name of other related party                 Relationship between other related party and the
                                                                        Company
 Shenzhen Bevix Technology Co., Ltd.                Holding more than 5% of shares in the company
 Shenzhen YLX Technology Development
                                                    Controlled by the same de facto controller
 Co., Ltd.
 China Film Equipment Corporation and its           Minority shareholders holding more than 10% shares
 affiliates                                         in the subsidiary and their affiliates
 Xiaomi Communications Technologies Co.,            Minority shareholders holding more than 10% shares
 Ltd. and its affiliates                            in the subsidiary and their affiliates
 Beijing Donview Education Technology Co.,          Minority shareholders holding more than 10% shares
 Ltd. and its affiliates                            in the subsidiary and their affiliates
                                                    The Company’s de facto controller Mr. LI Yi serves
 WeCast Technology Corp. and its affiliates
                                                    as the chairman of WeCast
Other description
None
(1). Sales and purchase of goods, rendering and receipt of services
Purchase of goods/receipt of services
√ Applicable□ N/A
                                                                              Unit: Yuan Currency: RMB
                                                         Amount for the current Amount for the prior
       Related party             Subject matter
                                                               period                    period
Xiaomi Communications
                             Electronic components
Technologies Co., Ltd. and                                        151,065,707.11           99,513,144.41
                             and services
its affiliates
China Film Equipment
                             Power supply, water
Corporation and its                                                14,313,447.67           10,824,895.69
                             cooling and services
affiliates
GDC and its affiliates       Electronic components                  5,711,956.57             3,586,000.00
Beijing Donview
Education Technology Co.,    Maintenance services                       9,911.50                 17,123.89
Ltd. and its affiliates
WeCast Technology Corp.
                             Sales agency services                    155,309.88
and its affiliates
            Sub-total                                             171,256,332.73          113,941,163.99
Sales of goods/rendering of services
√ Applicable□ N/A
                                                                              Unit: Yuan Currency: RMB
                                                         Amount for the current Amount for the prior
       Related party             Subject matter
                                                               period                    period
Xiaomi Communications
                           Laser TV and smart
Technologies Co., Ltd. and                                        341,732,526.82          254,631,263.83
                           mini projector
its affiliates
China Film Equipment         Laser light source and
Corporation and its          cinema projection                         42,679,705.11         34,976,389.39
affiliates                   services
Cinionic Limited             Cinema light source                        3,130,401.43         35,973,430.61
Beijing Donview
Education Technology Co.,    Education projector                         686,049.45           6,138,857.93
Ltd. and its affiliates
GDC and its affiliates       Cinema projector and
                             mould
WeCast Technology Corp.
and its affiliates
          Sub-total                                                   398,155,112.97        331,733,216.10
Description of sales and purchase of goods, rendering and receipt of services
□ Applicable√ N/A
(2). Details of trust with related parties/subcontracting and trust management/ contract-issuing
Details of trust / contracting where a group entity is the trustor / main contractor:
□ Applicable√ N/A
Description of trust/subcontracting with related parties
□ Applicable√ N/A
Details of trust/contracting where a group entity is the trustor/main contractor:
□ Applicable√ N/A
Description of management/contract-issuing with related parties
□ Applicable√ N/A
(3). Leases with related parties
The Company as the lessor:
□ Applicable√ N/A
The Company as the lessee:
√ Applicable□ N/A
                                                                                  Unit: Yuan Currency: RMB
                                                         Lease fees recognized     Lease fees recognized in
      Name of lessor          Type of leased assets
                                                          in the current period         the prior period
China Film Equipment
Corporation and its         Property lease                            1,037,804.47              835,379.65
affiliates
Description of leases with related parties
□ Applicable√ N/A
(4). Guarantees with related parties
The Company as a guarantor:
□ Applicable√ N/A
The Company as a guaranteed party:
□ Applicable√ N/A
Description of guarantees with related parties
□ Applicable√ N/A
(5). Borrowings/loans with related parties
√ Applicable□ N/A
                                                                                Unit: Yuan Currency: RMB
                              Amount of          Commencement
   Affiliated party                                                     Maturity date         Description
                           borrowings/loans          date
 Borrowings
 China Film
 Equipment                                                                                 Repaid on January
 Corporation and its                                                                       26, 2021
 affiliates
(6). Assets transfer/debt restructuring with related parties
□ Applicable√ N/A
(7). Compensation for key management personnel
√ Applicable□ N/A
                                                                         Unit:0’000 Yuan Currency: RMB
                                                                                   Amount for the prior
                Item                          Amount for the current period
                                                                                        period
 Compensation for key
 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                   Provision for
                                                                        Carrying amount
                                              amount        bad debts                      bad debts
              Beijing Donview
Accounts      Education Technology
receivable    Co., Ltd. and its
              affiliates
              GDC Technology
Accounts
              Limited (BVI) and its      1,263,338.37          63,166.92      2,283,483.24       114,174.16
receivable
              affiliates
              Xiaomi
Accounts      Communications
receivable    Technologies Co., Ltd.
              and its affiliates
Accounts       WeCast and its
receivable     affiliates
               China Film Equipment
Accounts
               Corporation and its    6,110,620.30         305,662.04      6,125,422.64    306,402.16
receivable
               affiliates
Accounts       Cinionic Limited
receivable
Sub-total                             68,779,866.96 3,439,124.38 257,779,961.20 12,889,129.09
            China Film Equipment
Prepayments Corporation and its       1,887,660.61                         3,107,696.59
            affiliates
            GDC Technology
Prepayments Limited (BVI) and its                                          2,883,384.53
            affiliates
Sub-total                             1,887,660.61                         5,991,081.12
            China Film Equipment
Other
            Corporation and its        313,305.00          15,665.25        296,435.00      14,821.75
receivables
            affiliates
            Xiaomi
Other       Communications
receivables Technologies Co., Ltd.
            and its affiliates
Sub-total                                 413,305.00         20,665.25        396,435.00      19,821.75
(2). Amounts due to related parties
√ Applicable□ N/A
                                                                             Unit: Yuan Currency: RMB
     Item                      Related party                    Closing balance of Opening balance of
                                                                 carrying amount     carrying amount
Accounts        China Film Equipment Corporation and its
payable         affiliates
Accounts        GDC Technology Limited (BVI) and its
payable         affiliates
   Sub-total                                                            9,119,626.61
Receipts in     Beijing Donview Education Technology Co.,
advance         Ltd. and its affiliates
Receipts in     China Film Equipment Corporation and its
advance         affiliates
   Sub-total                                                             896,137.44        14,032,071.28
Contract        GDC Technology Limited (BVI) and its
liabilities     affiliates
Contract        China Film Equipment Corporation and its
liabilities     affiliates
   Sub-total                                                              80,684.07         1,400,064.07
Other           China Film Equipment Corporation and its
payables        affiliates
Other          Xiaomi Communications Technologies Co.,
payables       Ltd. and its affiliates
Other          WeCast Technology Corp. and its affiliates
payables
  Sub-total                                                        164,155.53 ,        19,445,281.81
□ Applicable√ N/A
□ Applicable√ N/A
XIII.    Share-based payments
√ Applicable□ N/A
                                                                          Unit: Share Currency: RMB
 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
                                                      Granted on: October 14, 2019, grant price:
                                                      RMB 17.425/share, remaining contractual life:
                                                      Granted on: October 13, 2020, grant price:
                                                      RMB 17.425/share, remaining contractual life:
 Range of exercise prices and remaining contractual   Granted on: April 22, 2021, grant price: RMB
 life of the Company's share options outstanding at   17.5/share, remaining contractual life: 34
 the end of the period                                months;
                                                      Granted on: April 22, 2021, grant price: RMB
                                                      months;
                                                      Granted on: April 22, 2021, grant price: RMB21
                                                      /share, remaining contractual life: 34 months.
 Range of exercise prices and remaining contractual   None
 life of the Company's other equity instruments
 outstanding at the end of the period
Other description
None
√ Applicable□ N/A
                                                                        Unit: Yuan Currency: RMB
 The method of determining the fair value of equity     Open market quotes
 instruments at the grant date
 The basis of determining the number of equity          Actual grant amount
 instruments expected to be executed
 Reasons for the significant difference between the     None
 estimate in the current period and that in the prior
 period
 Amounts of equity-settled share-based payments
 accumulated in capital reserve
 Total expenses recognized arising from equity-
 settled share-based payments
Other description
The difference between the the total expenses recognized by equity-settled share-based payments in the
current period and the amount of share-based payments included in owners' equity arises from the
exchange rate translation difference.
□ Applicable√ N/A
□ Applicable√ N/A
□ Applicable√ N/A
XIV.      Commitments and contingencies
√ Applicable□ N/A
Significant external commitments, and nature and amount thereof as of the balance sheet date
impacts are disclosed in the following table:
                                                     Rent
                                                                   Rent                             Rent
 No.                 Rent address                 area(square                    Rent period
                                                                  purpose                        expense/year
                                                    meters)
                                                                   Office
                                                                administrati
                                                                               From December
        Yaochuan Industrial Zone, Tangwei                       on, research
                                                                                November 30,
        District, Shenzhen                                      developmen
                                                                t, plant and
                                                                 dormitory
        C1003, Building B6, Dongsheng                              Office       From May 11,
        Xiaokou Road, Haidian District, Beijing                       on            2023
                                                        Rent
                                                                          Rent                                Rent
 No.                  Rent address                   area(square                        Rent period
                                                                         purpose                           expense/year
                                                       meters)
                                                                        Research
        Building, High-Tech Zone, No. 63                               developmen        2019 to
        Xuefu Road, Nanshan District,                                    t, office     December 31,
        Shenzhen                                                       administrati       2021
                                                                             on
        Section B, 1/F (1,064.92 m2), and 2/F
        (2,953.09 m2), Building 13, Jintaizhi
                                                                         Office       From October 3,
        Industrial Park, No. 22 Jinyu Avenue,
        Liangjiang New District, Chongqing. An
                                                                           on             2, 2025
        area of 2,979.98 m2 on 3/F, Building 13
        thereof is used as reserve.
                                                                        Research
                                                                            and       From February
                                                                       developmen       1, 2020 to
                                                                         t, office     January 31,
        Nanshan District, Shenzhen
                                                                       administrati        2025
                                                                             on
        Room101, 1/F, Building 22E, Phase III                             Office      From March 20,
        Park                                                                 on          19, 2022
(1). Significant contingencies as of the balance sheet date
√ Applicable□ N/A
Pending litigation
As of June 30, 2021, there are 21 civil litigation cases filed by the Company. The details are as follows:
                  Cause of                                                                       Subject
 Case No.                         Plaintiff(s)     Defendant(s)          Patents involved                     Progress
                   action                                                                        amount
                                                  Defendant       1:
                                                  Delta Electronics
                                                  Business
                                                  Management
                                                  (Shanghai) Co.,
                                                  Ltd.
 (2019) Yue
                                                  Defendant       2:
                                                  Delta      Video                              RMB 28
 No.s 2943,    patent rights of   Corporation                           200810065225.X                        (second
                                                  Display System                                million
                                                  (Wujiang)
                                                  Limited
                                                  Defendant       3:
                                                  Shenzhen Super
                                                  Network
                                                  Technology Co.,
                                                  Ltd.
 (2021) Yue    Infringement of    Appotronics     Defendant       1:                                          Pending
                                                                                                RMB
 No. 2295      inventions         Limited, HU     Electronics, Inc.                                           instance)
                                    Fei and LI      Defendant      2:
                                    Yi              ZHANG Kesu
                                                    Defendant      3:
                                                    HUA Jianhao
                                                    Defendant      4:
                                                    WANG Bo
                                                    Defendants:
                                                    Delta Electronics
                                                    Business
                                                    Management
                                                    (Shanghai) Co.,
 (2020) Yue
                                                    Ltd.,       Delta
               Infringement of      Appotronics     Video Display                                             Pending
 Chu Nos.                                                                 ZL200880107739.5,   RMB 80
               patent rights of     Corporation     System                                                    (first
               inventions           Limited         (Wujiang)                                                 instance)
                                                    Limited,     and
                                                    Dijia Baosheng
                                                    (Beijing)
                                                    Electronic
                                                    Technology Co.,
                                                    Ltd., etc.
As of June 30, 2021, there are 6 civil litigation cases filed against the Company. The details are as follows:
                   Cause of                                            Patents      Subject
   Case No.                      Plaintiff(s)     Defendant(s)                                     Progress
                    action                                            involved      amount
                                                                                        Damages          of
                Infringemen                                                             RMB          16.00
 (2019) Yue                                                                                                   Pending
                t of patent                                                ZL2016103    million +    rights
                rights     of                                              87831.8      protection     cost
 Chu No. 662                                       Corporation                                                instance)
                inventions                                                              of           RMB
                                                   Limited;
                                                   Futian       SPN
                                                                                        Damages          of
                                                   Projector & Video
                Infringemen                                                             RMB          16.00
 (2019) Yue                                        System Firm of                                             Pending
                t of patent                                                ZL2013100    million +    rights
                rights     of                                              17478.0      protection     cost
 Chu No. 663                                                                                                  instance)
                inventions                                                              of           RMB
                                                                                        Damages          of
                                  Delta
                Infringemen                                                             RMB          15.00
 (2019) Jing                      Electronics,                                                                Pending
                t of patent                                                ZL2016103    million +    rights
                rights     of                                              87831.8      protection     cost
 No. 1275                                                                                                     instance)
                inventions                                                              of RMB         1.01
                                                   Fengmi     (Beijing)                 million
                                                   Technology      Co.,                 Damages          of
                Infringemen                        Ltd.;                                RMB          15.00
 (2019) Jing                                                                                                  Pending
                t of patent                        Appotronics             ZL2014102    million +    rights
                rights     of                      Corporation Limited     49663.7      protection     cost
 No. 1276                                                                                                     instance)
                inventions                                                              of RMB         1.01
                                                                                        million
                Infringemen                                                             Damages          of
 (2019) Jing                                                                                                  Pending
                t of patent                                                ZL2013100    RMB          15.00
                rights     of                                              17478.0      million +    rights
 No. 1277                                                                                                     instance)
                inventions                                                              protection     cost
                                                                              of RMB        1.01
                                                                              million
                                                                              Damages          of
               Infringemen                                                    RMB          15.00
 (2019) Jing                                                                                        Pending
               t of patent                                        ZL2010106   million +    rights
               rights     of                                      24724.5     protection     cost
 No. 1278                                                                                           instance)
               inventions                                                     of RMB         1.01
                                                                              million
(2). Description shall also be provided even if the Company has no significant contingencies to be
    disclosed:
□ Applicable√ N/A
□ Applicable√ N/A
XV. Events after the balance sheet date
□ Applicable√ N/A
□ Applicable√ N/A
□ Applicable√ N/A
√ Applicable□ N/A
     On April 9, 2020, the Company acquired 36% equity, holding 93,071,822 ordinary shares, of GDC
BVI against the payment of USD 18.11 million as consideration. GDC BVI is subject to the performance
commitment as follows: the audited net profit after deducting non-recurring profit or loss in 2020 shall
not be less than USD 9.35 million; if the above performance objective fails to be achieved, GDC Cayman,
a shareholder of GDC BVI, shall be obliged to make a compensation of up to USD 5.6 million or
     Given GDC BVI, a non-majority-owned company of the Company, has failed to fulfil its performance
commitment for 2020, communication has been developed between the Company and GDC Cayman on
performance compensation. After several rounds of negotiation and consultation, both parties have
reached a settlement scheme on performance compensation for 2020 and have entered into a settlement
agreement, among other relevant documents therefor. For details, refer to the Announcement 2021-055
disclosed by the Company on the website of Shanghai Stock Exchange (at www. sse. com. cn) and the
designated information disclosure media dated July 16, 2021.
     As per the settlement scheme on performance compensation for 2020 , GDC Cayman shall, while
executing the settlement agreement, transfer its 8% ordinary shares (i.e. 20,682,627 shares) in GDC BVI
to Appotronics HK, and shall, within 12 months from the date of executing the settlement agreement,
compensate Appotronics HK with USD1.2 million in cash.
     Pursuant to the performance compensation agreement reached by both parties, on June 30, 2021, the
Company recognized the performance compensation as held-for-trading financial assets of RMB 37.983
million, and recognized the profit or loss on changes in the fair value of RMB 38.1759 million (the
difference arises from the impact of the exchange rate for translation of statements).
XVI.     Other significant events
(1). Retrospective application
□ Applicable√ N/A
(2). Prospective application
□ Applicable√ N/A
□ Applicable√ N/A
(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 description:
√ Applicable□ N/A
The Company has no reporting segments for the lack of multiple operations. The details of the Company’s
principal activity income and principal activity cost by businesses and products and by regions are as
follows:
Categorized by businesses and products:
                                                                                Unit: 0’000 Yuan
                        Amount of the current period                   Amount of the prior period
    Item            Principal activity Principal activity        Principal activity  Principal activity
                         income               cost                    income                cost
 service
 business
    Sub-total             110,468.92             72,361.23              71,602.52            52,978.78
Categorized by regions:
                                                                                      Unit: 0’000 Yuan
                      Amount of the current period                   Amount of the prior period
    Project      Principal activity Principal activity cost   Principal activity Principal activity cost
                      income                                       income
 Domestic               105,208.67             69,458.21               64,013.91             50,343.56
 Overseas                  5,260.25             2,903.02                7,588.61              2,635.22
   Sub-total            110,468.92             72,361.23               71,602.52             52,978.78
□ 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
 Sub-total of items within 1 year                                                  510,565,166.80
 Over 3 years                                                                           55,200.00
                         Total                                                     532,634,690.12
        (2).      Disclosure by categories of provision for bad debts
    √ Applicable□ N/A
                                                                                                                                                Unit: Yuan Currency: RMB
                                        Closing balance                                                                     Opening balance
                   Carrying amount      Provision for bad debts                                  Carrying amount              Provision for bad debts
                                                      Proportion
  Category                                                                Book                                                               Proportion        Book
                             Proportion                   of                                                   Proportion
                  Amount                 Amount                           value                 Amount                         Amount       of provision       value
                                (%)                   provision                                                   (%)
                                                                                                                                                (%)
                                                         (%)
Provision for
bad debts      532,634,690.12    100.00 2,016,202.15           0.38     530,618,487.97        569,449,754.94       100.00 1,910,248.15               0.34   567,539,506.79
made by group
Including:
Group of
aging
Combination
of related
parties in the 493,359,447.05     92.63                                 493,359,447.05        532,346,934.74        93.48                                   532,346,934.74
scope of
consolidation
     Total                        /        2,016,202.15    /          530,618,487.97          569,449,754.94       /         1,910,248.15        /          567,539,506.79
Provision for bad debts made individually:
□ Applicable√ N/A
Provision for bad debts made by group:
√ Applicable□ N/A
Item by group: Group of aging
                                                                               Unit: Yuan Currency: RMB
                                                             Closing balance
         Name                                                                     Proportion of provision
                           Accounts receivable        Provision for bad debts
                                                                                           (%)
 Group of aging                     39,220,043.07              2,016,202.15                          5.13
 Combination of
 related parties in the
 scope of
 consolidation
          Total                   532,634,690.12               2,016,202.15                    0.38
Recognition criterion of provision for bad debt made by group and explanation:
√ Applicable□ N/A
Refer to V.10 of Section X for the recognition criterion of provision for bad debt made by group and
explanation
If a provision for bad debts of accounts receivable is made in accordance with the general model of
ECL, please disclose relevant information subject to the disclosure of the bad debt provision for other
receivables.
□ Applicable√ N/A
    (3).      Provision for bad debts
√ Applicable□ N/A
                                                                                Unit: Yuan Currency: RMB
                                             Changes for the current period
                    Opening                                                                   Closing
   Category                                     Recovery Write off or               Other
                    balance        Provision                                                  balance
                                               or reversal cancellation           changes
 Provision for
 bad debts
 made by
 group
     Total       1,910,248.15     105,954.00                                                2,016,202.15
Including significant amounts recovered or reversed from the current provision for bad debts:
□ Applicable√ N/A
    (4).      Accounts receivable actually canceled in the current period
□ Applicable√ N/A
    (5).      Top five closing balances of accounts receivable categorized by debtors
√ Applicable□ N/A
                                                                    Proportion to the
                                                                                       Provision for
                        Entity                   Carrying amount   balance of accounts
                                                                                        bad debts
                                                                     receivable (%)
Fengmi (Beijing) Technology Co., Ltd.               356,534,307.62              66.94
CINEAPPO Laser Cinema Technology
(Beijing) Co., Ltd.
Appotronics Technology (Changzhou) Co.,
Ltd.
Appotronics Hong Kong Limited                        17,397,682.40               3.27
Shenzhen Nearbyexpress Technology
Development Company Limited                                                                646,754.76
                    Sub-total                       500,840,478.90              94.03      646,754.76
    (6).      Accounts receivable derecognized due to transfer of financial assets
□ Applicable√ N/A
    (7).      Assets and liabilities arising from transfer of accounts receivable and continued
         involvement
□ Applicable√ N/A
Other description:
□ Applicable√ N/A
Presented by items
√ Applicable□ N/A
                                                                         Unit: Yuan Currency: RMB
                Item                        Closing balance                Opening balance
Interest receivable
Dividends receivable
Other receivables                                      42,129,668.23                    71,654,117.57
                Total                                  42,129,668.23                    71,654,117.57
Other description:
□ Applicable√ N/A
Interest receivable
(1).Categories of interest receivable
□ Applicable√ N/A
(2).Significant interests overdue
□ Applicable√ N/A
(3).Provision for bad debts
□ Applicable√ N/A
Other description:
□ Applicable√ N/A
(4).Dividends receivable
□ Applicable√ N/A
(5).Dividends receivable with significant amounts aged more than 1 year
□ Applicable√ N/A
(6).Provision for bad debts
□ Applicable√ N/A
Other description:
□ Applicable√ N/A
Other receivables
(7).Disclosure by aging
√ Applicable□ N/A
                                                                              Unit: Yuan Currency: RMB
                           Aging                                   Closing balance of carrying amount
 Within 1 year
 Including: Subitems within 1 year
 Sub-total of items within 1 year                                                        8,924,453.98
 Over 3 years                                                                            1,162,166.40
                             Total                                                      42,452,770.23
(8).Categories by the nature of the amount
√ Applicable□ N/A
                                                                             Unit: Yuan Currency: RMB
                                       Closing balance of carrying        Opening balance of carrying
      Nature of receivables
                                                amount                              amount
 Deposits/margins/petty cash                           5,723,951.27                       5,911,673.21
 Receivables from related parties
 in the scope of consolidation
 Indemnity receivable                                                                    3,577,279.61
 Temporary receivables                                   738,088.69                        374,249.92
               Total                                  42,452,770.23                     72,147,277.70
(9).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 1, 2021
 Balance as at
 January 1, 2021 in
 the current period
 --transferred   to
 Stage II
 --transferred   to
 Stage III
 --reversed      to
 Stage II
 --reversed      to
 Stage I
 Provision                -170,058.13                                                      -170,058.13
 Reversal
 Write-off
 Cancellation
 Other changes
 Balance as at June
Description of significant changes in the balance of other receivables with changed provisions for losses
in the current period:
□ Applicable√ N/A
Basis for recognizing the amount of bad debt provisions and evaluating whether the credit risk of
financial instruments has been increased significantly in the current period:
□ Applicable√ N/A
(10). Provision for bad debts
√ Applicable□ N/A
                                                                             Unit: Yuan Currency: RMB
                                            Changes for the current period
                   Opening                                                                   Closing
   Category                                   Recovery Write off or               Other
                   balance        Provision                                                  balance
                                              or reversal cancellation          changes
 Provision for
 bad debts
 made by
 group
     Total          493,160.13    -170,058.13                                                 323,102.00
Including significant amounts recovered or reversed from the current provision for bad debts:
□ Applicable√ N/A
(11). Other receivables actually canceled in the current period
□ Applicable√ N/A
Description of other receivables cancellation:
□ Applicable√ N/A
(12). Top five closing balances of other receivables categorized by debtors
√ Applicable□ N/A
                                                                      Unit: Yuan Currency: RMB
                                                                                             Provision
                                                                         Proportion to the    for bad
                           Nature of other        Closing
       Entity                                                    Aging   balance of other      debts
                            receivables           balance
                                                                         receivables (%)      Closing
                                                                                              balance
                                                           Within
                      Receivables from                     1 year
Fengmi      (Beijing)
                      related parties in the 21,208,080.81 and 1-                    49.96
Technology Co., Ltd.
                      scope of consolidation                 2
                                                           years
                                                           Within
Shenzhen
                      Receivables from                     1 year
Appotronics Laser
                      related parties in the 14,319,500.00 and 1-                    33.73
Display Technology
                      scope of consolidation                 2
Co., Ltd.
                                                           years
Shenzhen Meisheng Deposits/margins/petty                    2-3
Industry Co., Ltd.    cash                                 years
Shenzhen      Science
and       Technology Deposits/margins/petty                 1-2
Assessment            cash                                 years
Management Center
Qingdao         Haier Deposits/margins/petty               Within
Multimedia Co., Ltd. cash                                  1 year
Total                             /          40,859,274.01    /                      96.25 266,584.66
(13). Accounts receivable involving government grants
□ Applicable√ N/A
(14). ther receivables derecognized due to transfer of financial assets
□ Applicable√ N/A
(15). Assets and liabilities arising from transfer of other receivables and continued involvement
□ Applicable√ N/A
Other description:
□ Applicable√ N/A
√ Applicable□ N/A
                                                                         Unit: Yuan Currency: RMB
                           Closing balance                            Opening balance
   Item         Carrying    Provision for                    Carrying  Provision for
                                           Book value                                 Book value
                amount       impairment                      amount     impairment
Investments
in           472,943,998.33 39,827,792.79 433,116,205.54 467,533,569.26 45,885,284.27 421,648,284.99
subsidiaries
Investments
in
associates
and joint
ventures
   Total    472,943,998.33 39,827,792.79 433,116,205.54 467,533,569.26 45,885,284.27 421,648,284.99
(1) Investments in subsidiaries
√ Applicable□ N/A
                                                                                   Unit: Yuan Currency: RMB
                                                                                                   Closing
                                                                                    Provision    balance of
                   Opening                                         Closing
   Investees                       Increase        Decrease                             for       provision
                   balance                                         balance
                                                                                   impairment        for
                                                                                                impairment
 Appotronics
 Timewaying
 (Beijing)         27,000,000.00                                   27,000,000.00                     27,000,000.00
 Technology
 Co., Ltd.
 Shenzhen
 Appotronics
 Software           1,647,962.22     250,659.09                     1,898,621.31
 Technology
 Co., Ltd.
 Beijing Orient
 Appotronics
 Technology
 Co., Ltd.
 Fengmi
 (Beijing)
 Technology
 Co., Ltd.
 Shenzhen
 Appotronics
 Laser Display     18,966,857.26                                   18,966,857.26
 Technology
 Co., Ltd.
 Shenzhen
 Appotronics
 Display            3,000,000.00                                    3,000,000.00
 Device Co.,
 Ltd.
 CINEAPPO
 Laser Cinema      32,576,902.46    3,190,227.69                   35,767,130.15
 Technology
 (Beijing) Co.,
 Ltd.
 Qingda
 Appotronics
 (Xiamen)             5,100,000.00                                      5,100,000.00                     827,792.79
 Technology
 Co., Ltd.
 Shenzhen
 Appotronics
 Xiaoming            12,000,000.00                                     12,000,000.00                   12,000,000.00
 Technology
 Co., Ltd.
 Appotronics
 Hong Kong        301,668,683.52        514,966.33                    302,183,649.85
 Limited
 Appotronics
 Technology
 (Changzhou)
 Co., Ltd.
 Tianjin
 Bainian Film
 Partnership
 (LP)
 WEMAX
 LLC
 Appotronics
 USA, Inc.
 JoveAI
 Innovation,Inc
 Fengmi
 (Chongqing)
 Innovation                           27,874,803.32                    27,874,803.32
 Technology
 Co., Ltd.
      Total       467,533,569.26      32,910,429.07   27,500,000.00   472,943,998.33   -6,057,491.48   39,827,792.79
(2) Investments in associates and joint ventures
□ Applicable√ N/A
Other description:
□ Applicable√ N/A
(1). Description of operating income and operating costs
√ Applicable□ N/A
                                                                                  Unit: Yuan Currency: RMB
         Item                    Amount for the current period                Amount for the prior period
                              Revenue                Cost               Revenue             Cost
 Main business              572,827,875.91       381,855,853.31       384,899,378.41    256,660,786.97
        Total               572,827,875.91       381,855,853.31       384,899,378.41    256,660,786.97
(2). Description of incomes from contracts
□ Applicable√ N/A
(3). Description of performance obligations
□ Applicable√ N/A
(4). Description of allocation to remaining performance obligations
□ Applicable√ N/A
Other description:
None
√ Applicable□ N/A
                                                                              Unit: Yuan Currency: RMB
                                                  Amount for the current
                     Item                                                     Amount for the prior period
                                                        period
 Long-term equity investments accounted
 for using the cost method
 Investment income from disposal of long-
 term equity investments
 Investment income from disposal of held-
 for-trading financial assets
                    Total                                    15,655,417.87                 10,824,793.71
Other description:
None
□ Applicable√ N/A
XVIII. Supplementary information
√ Applicable□ N/A
                                                                             Unit: 元 Currency: 人民币
                        Item                                       Amount             Description
 Gain or loss on disposal of non-current assets                       2,048,154.10
 Unauthorized examination and approval, or lack
 of official approval documents, or tax revenue
 return and abatement
 Government grants recognized in profit or loss
 (other than grants which are closely related to the                 71,808,211.32
 Company's business and are either in fixed
amounts or determined under quantitative
methods in accordance with the national
standard)
Capital occupation fees charged to the non-
financial enterprises and included in profit or loss
for the current period
Gains when the investment cost of acquiring a
subsidiary, an associate and a joint venture is less
than the fair value of the identifiable net assets of
the investee
Gains or losses from exchange of non-monetary
assets
Gains or losses from entrusting others with
investment or asset management
Asset impairment provision made resulting from
force majeure such as natural disasters
Gains or losses from debt restructuring
Enterprise restructuring fees, such as staffing
expenses and integration fees
Gains or losses that exceeds the fair value in
transaction with unfair price
Net profit or loss of subsidiaries from the
beginning of the period up to the business
combination date recognized as a result of                          11,386,216.47
business combination of enterprises involving
enterprises under common control
Gains or losses on contingencies that have no
relation with the normal operation of the
Company
Profit or loss on changes in the fair value of held-
for-trading financial assets, derivative financial
assets, held-for-trading financial liabilities and
derivative financial liabilities and investment
income on disposal of held-for-trading financial
assets, derivative financial assets, held-for-
trading financial liabilities, derivative financial
liabilities and other debt investments, other than
those used in the effective hedging activities
relating to normal operating business
Reversal of impairment provision of accounts
receivable and contract assets that have undergone
impairment test alone
Gains or losses from outward entrusted loaning
Gains or losses from changes in the fair values of
investment properties that are subsequently
measured using the fair value model
 Effect of a one-time adjustment on current profit
 and loss according to the requirements of tax and
 accounting laws and regulations
 Custody fees of entrusted operation
 Other non-operating income and expenses
 besides the above
 Other gains or losses meeting the definition of
 non-recurring profit or loss
 Effect of income tax                                              -17,232,653.91
 Effects attributable to minority interests                         -24,952,896.18
                         Total                                      84,451,984.71
It is required to specify the reason for defining items as non-recurring profit or loss items according to
Information Disclosure and Presentation Rules for Companies Making Public Offering of Securities No.
Information Disclosure and Presentation Rules for Companies Making Public Offering of Securities No.
□ Applicable√ N/A
√ Applicable□ N/A
                                       Weighted                          Earnings per share
                                     average return
     Profit for the reporting period                        Basic earnings per       Diluted earnings per
                                      on net assets
                                                                  share                     share
                                          (%)
 Net profit attributable to ordinary
 shareholders of the Company
 Net profit after deduction of non-
 recurring profits or losses
 attributable to ordinary
 shareholders of the Company
    Standards
□ Applicable√ N/A
□ Applicable√ N/A
                                                                                     Chairman: LI Yi
                                    Approval for submission by the Board of Directors: August 24, 2021
Revision information
□ Applicable√ N/A

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