东方精工: 2023年第三季度报告(全文)-英文版

证券之星 2023-10-24 00:00:00
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Guangdong Dongfang Precision Science & Technology Co., Ltd.                          Report of Q3 2023
 GUANGDONG DONGFANG PRECISION SCIENCE & TECHNOLOG Y CO., LTD.
                   THE REPORT FOR THE THIRD QUARTER OF 2023
     The Company as well as all members of the Board of Directors hereby guarantee the
factuality, accuracy, and completeness of the information disclosed, and its free of any
misrepresentations, misleading statements, or material omissions.
Important Notes:
supervisors and senior management of Guangdong Dongfang Precision Science & Technology Co., Ltd.
(hereinafter referred to as the “Company”) hereby guarantee the factuality, accuracy, and completeness of the
contents of this Report, and shall be jointly and severally liable for any misrepresentations, misleading
statements, or material omissions therein.
 of the accounting organ hereby guarantee that the financial statements carried in this Report are factual,
 accurate and complete.
    □ Yes √ No
    The report for the 3rd quarter of 2023 of the Company has been prepared and released in Chinese,
and now has been translated into English. Should there be any discrepancies or misunderstandings
between the two versions, the Chinese version shall prevail.
Guangdong Dongfang Precision Science & Technology Co., Ltd.                                         Report of Q3 2023
I Key Financial Information
Indicate whether there is any retrospectively restated datum in the table below.
□ Yes √ No
                                     Q3 2023                  Change (%)            Q1-Q3 2023                Change (%)
Operating revenue (RM B
yuan)
Net profit attributable to
the listed company’s
shareholders (RM B
yuan)
Net profit attributable to
the listed company’s
shareholders before                     83,299,830.01                    63.24%       245,825,722.41                   43.82%
exceptional gains and
losses (RM B yuan)
Net cash generated
from/used in operating                 ——                        ——                   280,283,974.12                   66.40%
activities (RM B yuan)
Basic earnings per share
(RM B yuan /share)
Diluted earnings per
share (RM B yuan /share)
Weighted average return
on equity (%)
                             End of this report period    End of previous year                   Change (%)
Total assets (RM B)                  7,428,547,150.02          6,928,577,115.10                                            7.22%
Equity attributable to the
listed company’s                     4,332,240,405.95          4,063,966,310.23                                            6.60%
shareholders (RM B)
√ Applicable □ Not applicable
                                                                                                                    Unit: RM B
                         Item                                 Q3 2023              Q1-Q3 2023                   Notes
Gain or loss on disposal of non-current assets
                                                                    -18,764.43         -2,306,859.05
(inclusive of impairment allowance write-offs)
Government subsidies included in current profit or
loss (exclusive of government grants given in the
Company’s ordinary course of business at fixed                    2,196,049.54          6,535,876.93
quotas or amounts as per the government’s uniform
standards)
Gain or loss on fair-value changes on held-for-
trading and derivative financial assets and liabilities
& income from disposal of held-for-trading and
derivative financial assets and liabilities and other           -20,165,220.38         20,283,020.89
debt investments (exclusive of the effective portion
of hedges that arise in the Company’s ordinary
course of business)
Non-Operating Revenue and expenses other than
                                                                   -580,977.44            332,851.90
the above
Guangdong Dongfang Precision Science & Technology Co., Ltd.                                         Report of Q3 2023
                        Item                                  Q3 2023             Q1-Q3 2023                   Notes
Less: Income tax effects                                         -1,654,344.05         -2,329,506.57
     Non-controlling interests effects (net of tax)                 675,229.41          1,140,482.41
Total                                                           -17,589,798.07         26,033,914.83             --
Other items that meet the definition of non-recurring profit and loss:
□ Applicable √ Not applicable
No such cases for the Reporting Period.
Note of the reclassification of non-recurring items of profit or loss listed in "Explanatory Announcement No. 1 on Disclosure of
Information by Companies Issuing Public Securities - Non-recurring Profit or Loss" as recurring items of profit or loss:
□ Applicable √ Not applicable
No such cases for the Reporting Period.
Guangdong Dongfang Precision Science & Technology Co., Ltd.                                                                                            Report of Q3 2023
√Applicable □ Not applicable
Unit: RM B
(1) Balance sheet items
             Items              30 S eptember 2023       1 January 2023          Amount of Change       Rate of Change                                 Notes
                                                                                                                             M ainly due to the recovery of financial management funds
   Cash and bank balances            1,773,354,807.40        1,274,447,199.74         498,907,607.66                39.15%
                                                                                                                             and guarantee deposits for loans.
   Financial assets held for
           trading
                                                                                                                             M ainly due to the early recovery of the remaining balance
      Other receivables                 37,950,603.46          83,996,902.82          -46,046,299.36                -54.82% of the transfer of equity interest in Ferretto Group.
                                                                                                                             M ainly due to the increase in inventory reserves due to the
         Inventories                 1,324,560,905.19        1,092,981,884.51         231,579,020.68                21.19% increase in sales orders.
       Contract assets                  42,391,871.83          65,089,851.21          -22,697,979.38                -34.87% M ainly due to recoveries from customers.
Non-current assets due within
         one year                        3,245,000.00         311,763,750.00         -308,518,750.00                -98.96% M ainly due to the recovery of guarantee deposits for loans.
                                                                                                                           M ainly due to the increase in investment in plant
   Construction in progress            187,138,031.20          38,904,537.85          148,233,493.35               381.02%
                                                                                                                           construction.
   Other non-current assets             91,765,154.96          45,320,004.82           46,445,150.14               102.48% M ainly due to prepayment for fixed assets.
   Short-term borrowings               371,045,190.46          41,815,129.24          329,230,061.22               787.35% M ainly due to short-term borrowings.
                                                                                                                           M ainly due to increase in tax expense due to sales
        Taxes payable                   44,540,870.19          24,111,703.70           20,429,166.49                84.73% growth.
  Non-current liabilities due                                                                                              M ainly due to repayment of long-term loans due within
      within one year
   Long-term borrowings                 85,892,612.35          57,884,494.89           28,008,117.46                48.39% M ainly due to borrowing long-term loans.
(2) Income statement items
             Items                 Q1-Q3 2023              Q1-Q3 2022              Amount of Change         Rate of Change                              Notes
   Total operating revenue            3,326,262,408.67        2,430,877,101.51             895,385,307.16            36.83% M ainly due to sales growth.
    Total operating cost              2,372,755,817.02        1,799,559,740.41             573,196,076.61            31.85% M ainly due to sales growth.
                                                                                                                              M ainly due to the increase in product quality guarantee
       Selling expenses                 189,516,388.18         110,439,583.77               79,076,804.41            71.60%
                                                                                                                              deposits, commissions and agency service fees due to
Guangdong Dongfang Precision Science & Technology Co., Ltd.                                                                                  Report of Q3 2023
                                                                                                                    sales growth.
      R&D expenses                  91,625,113.42         69,233,420.51           22,391,692.91             32.34% M ainly due to increased investment in R&D.
      Finance costs                 -8,599,075.90        -18,138,651.06            9,539,575.16            -52.59% M ainly due to the RM B exchange rate fluctuations.
                                                                                                                    M ainly due to the increase in investment income
     Investment income              35,657,924.30         9,075,220.66            26,582,703.64            292.92% recognized from investment in securities.
(3) Cash flow statement items
           Items               Q1-Q3 2023           Q1-Q3 2022            Amount of Change        Rate of Change                             Notes
Net cash generated from/used
    in operating activities       280,283,974.12       168,435,727.75           111,848,246.37              66.40% M ainly due to sales growth.
                                                                                                                    M ainly due to the payment for the acquisition of equity
Net cash generated from/used
    in investing activities       -135,972,237.59      -322,513,942.25          186,541,704.66             -57.84% interest in Shenzhen Wonder Digital Technology Co.,
                                                                                                                   Ltd. in last year.
Net cash generated from/used                                                                                       M ainly due to the recovery of guarantee deposits for
    in financing activities       293,884,410.84        -36,322,583.60          330,206,994.44             909.10% loans.
Guangdong Dongfang Precision Science & Technology Co., Ltd.                                           Report of Q3 202 3
II Shareholder Information
Rights, as well as Information of Top 10 Shareholders
                                                                                                                       Unit: shares
                                                                 Number of preference
Number of ordinary shareholders at                               shareholders with resumed
the period-end                                                   voting rights at the period-end
                                                                 (if any)
                                                     Top 10 shareholders
                        Nature of     Shareholding    Total shares held Restricted shares          Shares in pledge or frozen
Name of shareholder    shareholder     percentage     at the period-end       held                  Status             Shares
                        Domestic
Tang Zhuolin                                 21.82%        270,737,568        203,053,176          In pledge          135,360,000
                        individual
                        Domestic
Tang Zhuomian                                 7.81%         96,885,134                             In pledge           40,000,000
                        individual
Hong Kong
                        Overseas
Securities Clearing                           4.29%         53,253,136
                       corporation
Company Limited
Pulead Technology     State-owned
Industry Co., Ltd.    corporation
Luzhou Industrial
Development           State-owned
Investment Group      corporation
Co., Ltd.
Qinghai Puren
Intelligent           Domestic non-
Technology R & D       state-owned            2.15%         26,628,340
Center (Limited        corporation
Partnership)
                        Domestic
Qiu Yezhi                                     1.88%         23,382,388         19,782,388
                        individual
China M erchants
Bank Co., Ltd.-
Wanjiang China       Domestic non-
Securities 1000       state-owned             0.65%          8,040,280
Index Strengthened    corporation
Initiated Securities
Investment Fund
Bank of China joint
stock company -      Domestic non-
Dacheng Jingheng      state-owned             0.54%          6,739,000
Hybrid Securities     corporation
Investment Fund
                        Domestic
Liu Wucai                                     0.53%          6,597,688
                        individual
                                          Top 10 unrestricted ordinary shareholders
                                                                                                        Shares by type
        Name of shareholder               Unrestricted shares held at the period-end
                                                                                                     Type              Shares
                                                                                             RM B ordinary
Tang Zhuomian                                                                   96,885,134                             96,885,134
                                                                                             shares
                                                                                             RM B ordinary
Tang Zhuolin                                                                    67,684,392                             67,684,392
                                                                                             shares
Hong Kong Securities Clearing                                                   53,253,136 RM B ordinary               53,253,136
Guangdong Dongfang Precision Science & Technology Co., Ltd.                                                  Report of Q3 202 3
Company Limited                                                                                     shares
Pulead Technology Industry Co.,                                                                     RM B ordinary
Ltd.                                                                                                shares
Luzhou Industrial Development                                                                    RM B ordinary
Investment Group Co., Ltd.
Qinghai Puren Intelligent
                                                                                                 RM B ordinary
Technology R & D Center (Limited                                                      26,628,340 shares                       26,628,340
Partnership)
China M erchants Bank Co., Ltd.-
Wanjiang China Securities 1000                                                                      RM B ordinary
Index Strengthened Initiated                                                                        shares
Securities Investment Fund
Bank of China joint stock company -
                                                                                                    RM B ordinary
Dacheng Jingheng Hybrid Securities                                                      6,739,000                              6,739,000
                                                                                                    shares
Investment Fund
                                                                                                  RM B ordinary
Liu Wucai                                                                               6,597,688 shares                       6,597,688
Beixin Ruifeng Fund - Industrial and
Commercial Bank of China - Beijing                                                                RM B ordinary
Hengyu Tianze Investment
M anagement Co., Ltd
                                     Tang Zhuolin and Tang Zhuomian are full brothers. On 18 August 2010, they signed the
                                     Agreement on Acting in Concert.
                                     Pulead Technology Industry Co., Ltd., and Qinghai Puren Intelligent Technology R & D
Related or acting-in-concert parties
                                     Center (Limited Partnership) are acting-in-concert parties.
among the shareholders above
                                     Except for these, the Company does not know whether the other shareholders are related
                                     parties or whether they are acting-in-concert parties in accordance with the M easures for
                                     the Administration of acquisitions of listed companies.
Note on the top 10 shareholders'
                                        As of 28 September 2023, Luzhou Industrial Development Investment Group Co., Ltd., held
participation in securities margin
trading (if any)
Explanation on the shareholding of the repurchase account
As at the close of the stock market on 28 September 2023, the number of shares held in the Company's special account for repurchases
was 36,424,192, representing 2.94% of the total share capital as at the close of the stock market on 28 September 2023..
□ Applicable √ Not applicable
III Other Significant Events
√Applicable □ Not applicable
   On 12 October 2023, the Company received a notification from Dong Fang Precision (Netherland) Cooperatief U.A. ("Dong Fang
Precision (Netherlands)"), a wholly -owned overseas subsidiary, that Fosber S.p.A. ("Fosber Italy"), a wholly -owned subsidiary of
Dong Fang Precision (Netherlands), had on the same day entered into an agreement with the Italian tax authorities regarding t he
applicable tax rate for dividend withholding tax of Fosber Italy, which involves the payment of Euro 6,330.2 thousand (including
interest) and related penalties of Euro 332.5 thousand.
      For details of the relevant matters, please refer to the ''Announcement Regarding the Signing of Tax Settlement Agreement by
Overseas Subsidiaries'' published in China Securities Journal, Securities Times, Shanghai Securities News and CNInfo.com.cn on 14
October 2023.
     This matter, as a subsequent matter after the third quarter of 2023, is proposed to be included in the current profit and loss of 2023
Guangdong Dongfang Precision Science & Technology Co., Ltd.                                              Report of Q3 202 3
and is expected to affect the profit and loss of the Company for the year 2023 (the amount of the impact is subject to the final audit
result).
IV Quarterly Financial Statements
(1) Consolidated Balance Sheet
Prepared by: Guangdong Dongfang Precision S cience & Technology Co., Ltd.
                                                                                                                         Unit: RMB
                     Item                             30 S eptember 2023                              1 January 2023
Current assets:
       Cash and bank balances                                        1,773,354,807.40                              1,274,447,199.74
       Settlement provisions
       Dismantling funds
       Financial assets held for trading                               717,700,052.69                                860,832,278.88
       Derivative financial assets
       Notes receivable                                                 43,441,697.88                                  24,566,100.12
       Accounts receivable                                             826,817,540.40                                837,305,757.46
       Receivable financing                                             26,935,016.45                                  15,305,668.26
       Prepayments                                                      59,483,224.75                                  64,946,901.26
       Premium receivable
       Receivable reinsurance account
       Provision for reinsurance contract
receivable
       Other receivables                                                37,950,603.46                                  83,996,902.82
             Including: Interest receivable
                       Dividend receivable
       Buy back resale financial assets
       Inventories                                                   1,324,560,905.19                              1,092,981,884.51
       Contract assets                                                  42,391,871.83                                  65,089,851.21
       Assets held for sale
       Non-current assets due within one
year
       Other current assets                                             71,263,019.13                                  61,370,451.31
Total current assets                                                 4,927,143,739.18                              4,692,606,745.57
Non-current assets:
       Loans and advances
       Debt investment
       Other debt investments                                           10,165,452.05
       Long-term receivables                                             1,756,167.00                                   1,294,299.00
Guangdong Dongfang Precision Science & Technology Co., Ltd.                          Report of Q3 202 3
                    Item                         30 S eptember 2023                1 January 2023
     Long-term equity investment                                123,196,732.16                      95,352,681.52
     Investment         in   other      equity
instruments
     Other non-current financial assets                         375,882,444.94                 334,449,603.33
     Real estate investment
     Fixed assets                                               557,332,193.61                 570,200,113.79
     Construction in progress                                   187,138,031.20                      38,904,537.85
     Productive biological assets
     Oil and gas asset
     Right-of-use assets                                         84,465,287.17                      86,448,978.02
     Intangible assets                                          362,167,302.22                 368,103,395.11
     Development expenditure                                          108,069.78                     3,702,229.76
     Goodwill                                                   434,524,802.74                 430,916,848.74
     Long-term prepaid expenses                                  30,809,068.54                      16,735,552.98
     Deferred tax assets                                        242,092,704.47                 244,542,124.61
     Other non-current assets                                    91,765,154.96                      45,320,004.82
Total non-current assets                                      2,501,403,410.84                2,235,970,369.53
Total assets                                                  7,428,547,150.02                6,928,577,115.10
Current liabilities:
     Short-term borrowings                                      371,045,190.46                      41,815,129.24
     Borrowing from the Central Bank
     Borrowed funds
     Financial liabilities held for trading                      46,252,343.81                      57,022,555.58
     Derivative financial liabilities
     Notes payable                                              161,499,891.26                 149,918,253.31
     Accounts payable                                           719,436,852.30                 748,319,561.21
     Advance receivables
     Contract liabilities                                       727,787,700.27                 692,567,968.60
     Selling back financial assets
     Deposits and Interbank deposit
     Agent trading securities
     Agent underwriting securities
     Employee benefits payable                                  134,613,102.06                 123,695,328.31
     Tax payable                                                 44,540,870.19                      24,111,703.70
     Other payables                                             104,697,279.42                      90,080,142.50
        Including: Interest payable
                       Dividend payable
     Fees and commissions
     Reinsurance accounts payable
     Liabilities held for sale
     Non-current liabilities due within                          58,257,517.47                 315,767,431.26
Guangdong Dongfang Precision Science & Technology Co., Ltd.                                                Report of Q3 202 3
                    Item                                  30 S eptember 2023                            1 January 2023
one year
     Other current liabilities                                               9,205,442.75                                 5,988,879.29
Total current liabilities                                                2,377,336,189.99                            2,249,286,953.00
Non-current liabilities:
     Insurance contract reserve
     Long-term borrowings                                                   85,892,612.35                                57,884,494.89
     Bonds payable
           Including: Preference Shares
                         Perpetual bonds
     Lease liabilities                                                      68,051,349.80                                68,989,111.33
     Long-term payables
     Long-term        employee       benefits
payable
     Provisions                                                            164,435,207.87                              118,945,953.78
     Deferred income                                                        10,236,156.66                                11,073,651.66
     Deferred tax liabilities                                                6,357,793.75                                 6,825,450.77
     Other non-current liabilities                                         136,799,573.47                              136,396,292.55
Total non-current liabilities                                              484,432,294.53                              413,294,899.15
Total Liabilities                                                        2,861,768,484.52                            2,662,581,852.15
Equity:
     Share capital                                                       1,240,858,400.00                            1,241,106,400.00
     Other equity instruments
         Including: Preference Shares
                     Perpetual bonds
     Capital surplus                                                     2,894,240,128.97                            2,947,263,843.53
     Less: Treasury stock                                                  210,303,842.45                              240,255,502.45
     Other comprehensive income                                             45,573,370.35                                26,512,917.07
     Special reserve                                                        15,163,015.28                                14,488,955.52
     Surplus reserves                                                       51,830,974.45                                51,830,974.45
     General risk preparation
     Retained earnings                                                     294,878,359.35                                23,018,722.11
Total equity attributable to owners of the
parent
     Non-controlling interests                                             234,538,259.55                              202,028,952.72
Total equity                                                             4,566,778,665.50                            4,265,995,262.95
Total liabilities and equity                                             7,428,547,150.02                            6,928,577,115.10
Le gal re pre sentative : Tang Zhuolin,    Chief Financial Officer: Shao Yongfeng,   Person-in-charge of the accounting organ : Chen Nan
(2) Consolidated Income Statement for Q1 - Q3 2023
                                                                                                                            Unit: RM B
Guangdong Dongfang Precision Science & Technology Co., Ltd.                             Report of Q3 202 3
                            Item                              Q1 - Q3 2023              Q1 - Q3 2022
        Including: Operating revenue                                 3,326,262,408.67          2,430,877,101.51
                   Interest income
                   Premiums earned
                   Fee and commission income
        Including: Cost of sales                                     2,372,755,817.02          1,799,559,740.41
                  Interest expense
                  Payment of fees and commission
                  Surrender fund
                  Net indemnity expenditure
                  Draw the net reserve of insurance
liability contract
                  Policy dividend expense
                  Reinsurance cost
                  Taxes and surcharges                                 11,027,790.44               8,804,294.91
                  Selling expenses                                    189,516,388.18            110,439,583.77
                  Administrative expenses                             255,513,959.93            211,114,440.03
                  R&D expenses                                         91,625,113.42             69,233,420.51
                  Finance costs                                         -8,599,075.90            -18,138,651.06
                     Including: Interest expenses                        9,193,820.94              7,768,835.81
                               Interest income                         22,427,791.25             13,284,771.87
        Add: Other income                                                6,535,876.93            10,783,803.62
             Investment income (loss with "-" sign)                    35,657,924.30               9,075,220.66
             Including: Share of profit or loss of joint
                                                                        -2,192,833.50              1,640,958.28
ventures and associates
                        Income from derecognition of
financial assets measured at amortized cost (loss with
"-" sign)
             Exchange gain (loss with "-" sign)
             Net exposure hedging gain (loss with "-"
sign)
             Gain/loss on changes in fair value (loss with
                                                                       -17,567,736.91            -17,745,079.57
"-" sign)
             Credit impairment loss (loss is listed with "-
                                                                        -1,835,764.65                  570,166.71
" sign)
             Asset impairment loss (loss with "-" sign)                 -6,916,232.58             -8,240,821.46
             Gain/loss on disposal of assets (loss with "-"
                                                                        -2,306,859.05              -169,039.14
sign)
        Add: Non-operating income                                        4,247,134.69              1,568,768.68
Guangdong Dongfang Precision Science & Technology Co., Ltd.                            Report of Q3 202 3
                             Item                             Q1 - Q3 2023             Q1 - Q3 2022
     Less: Non-operating expenses                                       3,914,282.79                  834,313.53
sign "-")
     Less: Income tax expenses                                        121,511,716.17            52,557,877.53
Net profit (net loss is listed with "-" sign)                         306,810,759.35           192,315,101.38
     (1) Net profit from continuing operations
     i. Net profit from continuing operations (net loss
with "-" sign)
     ii. Net profit from termination of operation (net
loss with "-" sign)
     (2) Net profit classified by attribution of
     ownership
     i. Net profit attributable to owners of the parent               271,859,637.24           172,317,292.32
     ii. Net profit attributable to non-controlling
interests
     Other comprehensive income/(loss) attributable
to owners of the parent, net of tax
            (1) Other comprehensive loss that will not be
                                                                         -336,960.08                  919,271.17
reclassified to profit or loss
                  i. Changes caused by remeasurements
                                                                         -336,960.08                  919,271.17
on defined benefit schemes
                  ii. Other comprehensive income that
cannot be transferred to profit or loss under the equity
method
                  iii. Changes in fair value of investments
in other equity instruments
                  iv. Fair value change of enterprise's
own credit risk
                  v. Other
            (2) Other comprehensive income/(loss) that
will be reclassified to profit or loss
                  i. Other comprehensive income that can
be transferred to profit or loss under the equity method
                  ii. Changes in fair value of other debt
investments
                  iii. The amount of financial assets
reclassified to other comprehensive income
                  iv. Provision for credit impairment of
other debt investments
                  v. Cash flow hedging reserve
                  vi.   Differences   arising   from   the             19,397,413.36            11,524,532.92
Guangdong Dongfang Precision Science & Technology Co., Ltd.                                                 Report of Q3 202 3
                           Item                                      Q1 - Q3 2023                            Q1 - Q3 2022
translation of foreign currency -denominated financial
statements
                vii. Other
     Other comprehensive income attributable to non-
                                                                                      -217,125.35                         -3,812,239.76
controlling interests, net of tax
Total comprehensive income                                                      325,654,087.28                          200,946,665.71
     Total comprehensive income attributable to
owners of the parent
     Total comprehensive income attributable to non-
controlling interests
Earnings per share:
     (1) Basic earnings per share                                                            0.23                                  0.14
     (2) Diluted earnings per share                                                          0.23                                  0.14
Le gal re pre sentative : Tang Zhuolin,   Chief Financial Officer: Shao Yongfeng,     Person-in-charge of the accounting organ : Chen Nan
(3) Consolidated Statement of Cash Flows for Q1 - Q3 2023
                                                                                                                             Unit: RM B
                           Item                                      Q1 - Q3 2023                            Q1 - Q3 2023
     Proceeds from sale of goods and rendering of
services
    Net increase in customer deposits and interbank
deposits
     Net increase in borrowing from the central bank
     Net increase in funds transferred to other
financial institutions
     Cash received from the premium of the original
insurance contract
     Net cash received from reinsurance business
     Net increase in depositors' deposits and
investment funds
   Cash that collects interest, commission and
commission
     Net increase in borrowed funds
     Net increase in funds for repurchase business
     Net cash received by agents buying and selling
securities
     Receipts of taxes and surcharges refunds                                       52,098,968.28                        48,677,542.53
     Cash generated from other operating activities                                 45,359,284.90                        42,720,718.95
Subtotal of cash generated from operating activities                          3,491,859,528.69                        2,912,486,809.63
     Payments for goods and services                                          2,405,738,718.03                        1,955,131,223.15
     Net increase in customer loans and advances
    Net increase in central bank and interbank
deposits
Guangdong Dongfang Precision Science & Technology Co., Ltd.                        Report of Q3 202 3
                         Item                            Q1 - Q3 2023              Q1 - Q3 2023
     Cash to pay the indemnity of the original
insurance contract
     Net increase in loan funds
   Cash for the payment of interest, fees and
commissions
     Cash for the payment of policy dividends
     Cash payments to and on behalf of employees                 486,695,698.59            435,275,683.75
     Payments of all types of taxes and surcharges                96,515,400.83             97,860,534.42
     Cash used in other operating activities                     222,625,737.12            255,783,640.56
Subtotal of cash used in operating activities                   3,211,575,554.57          2,744,051,081.88
Net cash generated from/used in operating activities             280,283,974.12            168,435,727.75
     Proceeds from disinvestment                                2,288,133,445.35          4,213,816,412.95
     Investment income                                            64,254,590.49             32,956,946.59
     Net proceeds from the disposal of fixed assets,
intangible assets and other long-lived assets
     Disposal of net cash received by subsidiaries and
other business units
     Cash generated from other investing activities                                            735,039.91
Subtotal of cash generated from investing activities            2,352,564,665.44          4,248,023,042.75
     Payments for the acquisition of fixed assets,
intangible assets and other long-lived assets
     Payments for investments                                   2,216,047,316.84          4,307,288,859.03
     Net increase in pledged loans
     Obtain net cash paid by subsidiaries and other
business units
     Cash used in other investing activities                      50,000,000.00
Subtotal of cash used in investing activities                   2,488,536,903.03          4,570,536,985.00
Net cash generated from/used in investing activities             -135,972,237.59           -322,513,942.25
     Absorb the cash received by the investment
        Including: the subsidiary absorbs the cash
received from the investment of minority
shareholders
     Borrowings raised                                           404,970,419.08            289,036,795.45
     Cash generated from other financing activities              363,785,545.55            691,069,966.87
Subtotal of cash generated from financing activities             768,755,964.63            980,106,762.32
     Repayment of borrowings                                     315,273,920.95            409,750,318.61
     Interest and dividends paid                                  10,518,210.80               6,847,827.14
       Including: Interest and dividends paid to
minority shareholders
     Cash used in other financing activities                     149,079,422.04            599,831,200.17
Subtotal of cash used in financing activities                    474,871,553.79           1,016,429,345.92
Net cash generated from/used in financing activities             293,884,410.84             -36,322,583.60
and cash equivalents
     Add: Cash and cash equivalents, beginning of               1,233,720,697.27          1,259,303,775.74
Guangdong Dongfang Precision Science & Technology Co., Ltd.                                               Report of Q3 202 3
                           Item                                      Q1 - Q3 2023                          Q1 - Q3 2023
the period
Le gal re pre sentative : Tang Zhuolin,   Chief Financial Officer: Shao Yongfeng,   Person-in-charge of the accounting organ : Chen Nan
standards for the first time from 2023 onwards
□ Yes √ No
Whether the Report has been audited
□ Yes √ No
The report for the third quarter of 2023 of the Company has not been audited.
                                                                                                    Board of Directors
                                                                                                                       of
                                                              Guangdong Dongfang Precision Science & Technology Co., Ltd.

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