Luxshare Precision Industry Co., Ltd. Third Quarter Report 2020
Luxshare Precision Industry Co., Ltd.
Third Quarter 2020
2020-071
October 2020
This document is a translated version of the Chinese version . Third Quarter Report 2020 of Luxshare Precision Industry Co., Ltd.
(“《立讯精密 2020 年第三季度报告》”), and the published . Third Quarter Report 2020 of Luxshare Precision Industry Co., Ltd. in
the Chinese version shall prevail. The complete published Chinese . Third Quarter Report 2020 of Luxshare Precision Industry Co.,
Ltd. may be obtained at www.cninfo.com.cn.
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Luxshare Precision Industry Co., Ltd. Third Quarter Report 2020
Section I. Important Note
The Board of Directors, the Board of Supervisors, directors, supervisors and executives
of the Company hereby warrant that the information contained in this Third Quarter Report
is true, accurate and complete and this Third Quarter Report is free from any
misrepresentation, misleading statement or material omission, and agree to assume joint and
several liability for this Third Quarter Report.
All directors of the Company attended the meeting of the Board of Directors for
deliberating this Report.
WANG Laichun, Principal of the Company, CFO WU Tiansong and Chief Accountant
XIAO Na hereby represent that the financial statements contained in this Third Quarter
Report are true, accurate and complete.
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Luxshare Precision Industry Co., Ltd. Third Quarter Report 2020
Section II Company Profile
I. Main accounting data and financial highlights
Did the Company need to retrospectively adjust or re-state any accounting data of prior fiscal years?
□ Yes √ No
September 30, 2020 December 31, 2019 Y/Y % Change
Total assets (RMB) 65,776,702,745.24 49,377,910,671.23 33.21%
Net assets attributable to shareholders of
24,939,009,565.88 20,296,618,968.52 22.87%
the listed company (RMB)
Three-month period Nine-month period
ended September 30, Y/Y % Change ended September 30, Y/Y % Change
2020 2020
Operating income (RMB) 23,076,494,141.40 40.75% 59,528,120,290.26 57.33%
Net profit attributable to shareholders of
2,141,839,306.57 54.54% 4,679,614,065.03 62.06%
the listed company (RMB)
Net profit attributable to shareholders of
the listed company after deduction of 1,872,789,269.22 42.54% 4,211,102,480.04 53.79%
extraordinary gain or loss (RMB)
Net cash flows from operating activities
-441,882,109.67 -122.98% 2,740,062,232.78 -55.16%
(RMB)
Basic earnings per share (RMB/share) 0.31 55.00% 0.67 63.41%
Diluted earnings per share (RMB/share) 0.31 55.00% 0.67 63.41%
+3.63 percentage
Weighted average return on net assets 8.90% 1.10% 20.67%
points
Items and amounts of extraordinary gain or loss
√ Applicable □ N/A
In RMB
Amount for Nine-month period
Item Remark
ended September 30, 2020
Gain or loss on disposal of non-current assets (including
-6,881,963.69
allowance for impairment of assets that has been written off)
Government grants recognized in profit or loss (excluding
government grants that are closely related to the business of the
342,182,099.42
Company and are provided in fixed amount or quantity
continuously according to the applicable polices of the country)
Gain or loss on assets under entrusted investment or management 61,408,026.31
Gain or loss on changes in fair value of held-for-trading financial
assets, derivative financial assets, financial liabilities held for
trading and derivative financial liabilities, and gain on disposal of
held-for-trading financial assets, derivative financial assets, 143,933,597.39
financial liabilities held for trading, derivative financial liabilities
and other debt instruments, except for effective hedges held in the
ordinary course of business
Other non-operating income and expenses 2,855,786.85
Other items qualified as extraordinary gain or loss 22,840,715.42
Less: Effect of income tax 87,512,552.84
Effect of minority interest (exclusive of tax) 10,314,123.87
Total 468,511,584.99 --
If the Company classifies any item of extraordinary gain or loss defined by or listed in the Explanatory Announcement No. 1 on
Information Disclosure for Companies Publicly Offering Securities - Extraordinary Gain or Loss as recurring profit or loss, please
explain the reason.
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Luxshare Precision Industry Co., Ltd. Third Quarter Report 2020
□ Applicable √ N/A
We have not classified any item of extraordinary gain or loss defined by or listed in the Explanatory Announcement No. 1 on
Information Disclosure for Companies Publicly Offering Securities - Extraordinary Gain or Loss as recurring profit or loss in the
reporting period.
II. Number of shareholders and top 10 shareholders’ shareholding structure at the end of the reporting
period
1. Total number of ordinary shareholders and preferred shareholders whose voting rights had been
restituted and top 10 shareholders’ shareholding structure
Unit: Share
Total number of preferred
Total number of ordinary
shareholders whose voting rights had
shareholders at the end of the 290,594 0
been restituted at the end of the
reporting period
reporting period (if any)
Shareholding of top 10 shareholders
No. of Pledge or freeze
Status of Shareholding No. of shares non-tradab
Shareholder le shares Status of shares
shareholder percentage held Number
held
Luxshare Limited Foreign corporation 41.02% 2,870,246,069 0 Pledged 1,072,573,363
Hong Kong Securities Clearing
Foreign corporation 6.26% 438,222,676 0
Company Limited
Central Huijin Asset Stated owned
1.38% 96,584,014 0
Management Co., Ltd. corporation
China Securities Finance Domestic non-stated
1.21% 84,428,888 0
Corporation Limited owned corporation
Bank of China - China AMC
Zhongzheng 5G Others 0.70% 48,909,263 0
Communication ETF
Domestic non-stated
Protek Shanghai Ltd. 0.57% 39,845,105 0
owned corporation
E Fund - Agricultural Bank of
China - E Fund Zhongzheng
Others 0.55% 38,656,343 0
Financial Asset Management
Plan
China AMC- Agricultural Bank
of China - China AMC
Others 0.55% 38,576,831 0
Zhongzheng Financial Asset
Management Plan
Zhong Ou Fund - Agricultural
Bank of China - Zhong Ou
Others 0.55% 38,557,184 0
Zhongzheng Financial Asset
Management Plan
Yinhua Fund - Agricultural
Bank of China - Yinhua
Others 0.55% 38,508,814 0
Zhongzheng Financial Asset
Management Plan
Shareholding of top 10 tradable shareholders
Type of shares
Shareholder No. of tradable shares held
Type of shares Number
Luxshare Limited 2,870,246,069 RMB-denominated ordinary share 2,870,246,069
Hong Kong Securities Clearing Company Limited 438,222,676 RMB-denominated ordinary share 438,222,676
Central Huijin Asset Management Co., Ltd. 96,584,014 RMB-denominated ordinary share 96,584,014
China Securities Finance Corporation Limited 84,428,888 RMB-denominated ordinary share 84,428,888
Bank of China - China AMC Zhongzheng 5G RMB-denominated ordinary share
48,909,263 48,909,263
Communication ETF
Protek Shanghai Ltd. 39,845,105 RMB-denominated ordinary share 39,845,105
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Luxshare Precision Industry Co., Ltd. Third Quarter Report 2020
E Fund - Agricultural Bank of China - E Fund RMB-denominated ordinary share
38,656,343 38,656,343
Zhongzheng Financial Asset Management Plan
China AMC- Agricultural Bank of China - China RMB-denominated ordinary share
AMC Zhongzheng Financial Asset Management 38,576,831 38,576,831
Plan
Zhong Ou Fund - Agricultural Bank of China - RMB-denominated ordinary share
Zhong Ou Zhongzheng Financial Asset 38,557,184 38,557,184
Management Plan
Yinhua Fund - Agricultural Bank of China - RMB-denominated ordinary share
Yinhua Zhongzheng Financial Asset Management 38,508,814 38,508,814
Plan
1. Luxshare Limited is our controlling shareholder.
2. We are not aware whether there are affiliates or concert parties as defined
Affiliates or concert parties among the shareholders
in the Administrative Measures for Information Disclosure by the Listed
listed above
Companies Relating to Changes in Shares Held by Shareholders among the
shareholders listed above.
Margin trading conducted by top 10 shareholders (if
N/A
any)
Did any top 10 ordinary shareholder or top 10 holder of tradable ordinary shares conduct any transaction under repurchase agreement
during the reporting period?
□ Yes √ No
No top 10 ordinary shareholder or top 10 holder of tradable ordinary shares has conducted any transaction under repurchase
agreement during the reporting period
2. Total number of holders of preferred shares and shareholding of top 10 preferred shareholders
□ Applicable √ N/A
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Luxshare Precision Industry Co., Ltd. Third Quarter Report 2020
Section III. Significant Matters
I. Changes in main financial data and financial highlights during the reporting period and the
reasons
√ Applicable □ N/A
The COVID-19 has been spreading continuously in the world since the beginning of 2020, which has posed a serious threat to
people's health and life and resulted in a significant increase in the uncertainty of end devices consumption willingness. The
China-US trade friction and technology decoupling are becoming increasingly severe, and the global industrial chain is faced with
unprecedented challenges. Under numerous challenges, the Company has unswervingly carried out the development plan and
objectives formulated by the core management. When encountering problems, the Company made prudent assessment and flexible
response, continued to work with spirit of determination, cooperation and striving for perfection, gave full play to the global layout,
automation, resource integration and other related advantages, and achieved the rapid development of various businesses on schedule.
During the reporting period, the Company proceeded with the wearable device business smoothly with excellent product quality and
yield; the precision systematic packaging process continued to be outstanding, and the product shipment situation progressed
smoothly as expected; the high-speed transmission, power supply and other product technical capabilities and advantages were
continuously consolidated; the automobile electronic components product line had a steady development. While refining and
optimizing the existing products, the Company continues to pay attention to and layout new products and businesses of consumer
electronics, striving to lay a solid foundation for the realization of the company's long-term sustainable development.
During the reporting period, due to the Company's mass production of new products and expansion of overseas production
capacity, the Company's inventory increased to a certain extent compared with the normal targeted level, including the increase in
material preparation of new products by about 2.7 billion yuan, the increase in inventory of new finished products by about 2.4
billion yuan, and the increase in overseas production capacity by about 1.7 billion yuan. According to the Company's sales plan, the
new material preparation and finished product inventory beyond the above targeted level are expected to be sold in the period from
October to November this year, the increased inventory due to the expansion of overseas production capacity is expected to be
gradually improving and reduced in the fourth quarter of this year with the continuous development of production and operation, and
after those the inventory will return to the normal targeted level.
From the beginning of the year to the end of the reporting period, the Company realized operating revenues of 59.528 billion
yuan, a 57.33% increase year over year, and the net profit attributable to shareholders of the listed company totalled 4.680 billion
yuan, a 62.06% increase year over year. The changes in major accounting accounts and financial highlights and the reasons are as
follows:
1. The held-for-trading financial assets increased by 82.37% as compared with that on December 31, 2019, an increase of 1,255.6341
million yuan, mainly due to the increase of financial management business and the impact of changes in forward foreign exchange
business;
2. Notes receivable increased by 165.81% as compared with that on December 31, 2019, an increase of 110.883 million yuan, mainly
due to the increase of note business of subsidiaries;
3. The prepayments increased by 160.37% as compared with that on December 31, 2019, with an increase of 340,017 million yuan,
mainly due to the payment of trade account receivable;
4. Other receivables increased by 48.86% as compared with that on December 31, 2019, an increase of 165.2672 million yuan,
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Luxshare Precision Industry Co., Ltd. Third Quarter Report 2020
mainly due to other current accounts and equity accounts receivable from customers;
5. The inventory increased by 120.66% as compared with that on December 31, 2019, an increase of 9,291.5738 million yuan,
mainly due to the increase of orders in the second half of this year, the expansion of mass production of new products and overseas
production capacity, and material preparation;
6. The long-term equity investment increased by 61.88% as compared with that on December 31, 2019, an increase of 187.5287
million yuan, mainly due to the increase of investment companies;
7. The construction in progress increased by 65.81% as compared with that on December 31, 2019, an increase of 569.589 million
yuan, mainly due to the increase of engineering construction and equipment transformation of the subsidiaries;
8. Other non-current assets increased by 71.17% as compared with that on December 31, 2019, an increase of 1,019.6147 million
yuan, mainly due to the Company's prepayment for equipment, engineering and land;
9. The short-term borrowings increased by 96.08% as compared with that on December 31, 2019, an increase of 4,003.0401 million
yuan, mainly due to the Company's security funds reserved for the Company's growth rate;
10. Notes payable decreased by 48.87% as compared with that on December 31, 2019, a decrease of 100.9177 million yuan, mainly
due to the decrease of note business of subsidiaries;
11. The tax payable increased by 86.86% as compared with that on December 31, 2019, an increase of 284.5866 million yuan,
mainly due to the rapid growth of business volume and various taxes;
12. Other accounts payable increased by 77.20% as compared with that on December 31, 2019, an increase of 272.049 million yuan,
mainly due to the other payment of trade account receivable;
13. The current portion of non-current liabilities decreased by 80.23% as compared with that on December 31, 2019, a decrease of
294.0904 million yuan, mainly due to the repayment of long-term borrowings due within one year;
14. Other current liabilities increased by 152.24% as compared with that on December 31, 2019, an increase of 983.654 million yuan,
mainly due to the increase of short-term financing funds;
15. The operating income increased by 57.33% year over year, an increase of 21,691.9819 yuan, mainly due to the Company's year
over year performance growth;
16. The operating costs increased by 58.65% year over year, an increase of 17,649.2247 yuan, mainly due to the Company's
performance growth;
17. The selling expenses increased by 37.99% year over year, an increase of 122.4666 million yuan, mainly due to the increase of
expenses related the performance growth;
18. The administrative expenses increased by 66.68% year over year, an increase of 533.1585 million yuan, mainly due to the
increase of expenses related the performance growth;
19. The R&D expenses increased by 54.82% year over year, an increase of 1,581.4963 million yuan, mainly due to an increase of
R&D expenditure;
20. Other income increased by 123.19% year over year, an increase of 188.773 million yuan, mainly due to the increase of
government subsidies;
21. The investment income increased by 47.34% year over year, an increase of 48.0359 million yuan, mainly due to the income of
wealth management;
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Luxshare Precision Industry Co., Ltd. Third Quarter Report 2020
22. The net cash flows from operating activities decreased by 55.16% year over year, a decrease of 3,370.9155 million yuan, mainly
due to the increase of order quantity, material preparation and related expenses;
23. The net cash flow from investment activities decreased by 83.19% year over year, a decrease of 3,132.1727 million yuan, mainly
due to the increase of investment activities in purchasing financial products;
24. The net cash flow from financing activities increased by 46.58% year over year, an increase of 6,115.6475 million yuan, mainly
due to the increase of financing loans.
II. Analysis and explanation of the progress of key matters and their impacts and solutions
√ Applicable □ N/A
1. 2018 stock option incentive plan
On the authority of the 2nd shareholders’ meeting in 2018, the 13th session of the 4th Board of Directors and the 13th session of the
4th Board of Supervisors determined that the vesting conditions for the first vesting period of the 2018 stock option incentive plan
have been satisfied. 1,762 awardees who have satisfied the vesting conditions may exercise up to 24,465,506 stock options in the first
vesting period at the exercise price of RMB13.48 per share at their sole discretion.
On June 17, 2020, we implemented the equity distribution proposal for the year of 2019, pursuant to which, on the basis of the total
share capital of 5,372,327,958 shares, we distributed to all shareholders a cash dividend of RMB1.199884 (inclusive of tax) per 10
shares, or RMB644,617,443.60 in total, and 2.999711 bonus shares per 10 shares issued through capitalization of the capital reserve,
as a result of which, our total share capital was increased to 6,983,871,085 shares. Accordingly, we adjusted the exercise price and
number of stock options under the 2018 stock option incentive plan. After such adjustment, the number of outstanding stock options
was increased from 99,001,310 stock options to 128,698,841 stock options, and their exercise price was adjusted from RMB13.48
per share to RMB10.28 per share.
On September 25, 2020, the first vesting period of the 2018 stock option incentive plan ended. There were an additional 24,807,258
shares issued in total after the 1762 incentive awardees exercised their stock options during the vesting period at their sole discretion,
with a total of 1,481,038 additional shares during the reporting period.
2. 2019 stock option incentive plan
We adopted the 2019 stock option incentive plan upon approval by the 7th session of the 4th Board of Directors and the 1st
extraordinary shareholders’ meeting in 2019.
The first grant of share options under the plan was completed on April 22, 2019 and registered on June 12, 2019, wherein 50,076,000
stock options in total, representing 1.22% of our total share capital, were granted to 348 awardees, at the exercise price of RMB23.36
per share (option short name: Luxshare JLC2; option code: 037825).
On July 5, 2019, we implemented the equity distribution proposal for the year of 2018, pursuant to which, on the basis of the total
share capital of 4,114,616,722 shares, we distributed to all shareholders a cash dividend of RMB0.5 (inclusive of tax) per 10 shares,
or RMB205,730,836.10 in total, and 3 bonus shares per 10 shares issued through capitalization of the capital reserve, as a result of
which, our total share capital was increased to 5,349,001,738 shares. Accordingly, we adjusted the number and exercise price of
stock options under the 2019 stock option incentive plan. After such adjustment, the exercise price of the stock options granted for
the first time was adjusted from RMB23.36 per share to RMB17.93 per share, and the number of such stock options was increased
from 50,076,000 stock options to 65,098,800 stock options, and the number of the reserved stock options thereunder was adjusted
from 12,519,000 stock options to 16,274,700 stock options.
The reserved stock options under the 2019 stock option incentive plan granted 263 awardees to 16,274,700 stock options on
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Luxshare Precision Industry Co., Ltd. Third Quarter Report 2020
November 27, 2019, and registered on January 21, 2020, at the exercise price of RMB17.93 per share.
On June 17, 2020, we implemented the equity distribution proposal for the year of 2019, pursuant to which, on the basis of the total
share capital of 5,372,327,958 shares, we distributed to all shareholders a cash dividend of RMB1.199884 (inclusive of tax) per 10
shares, or RMB644,617,443.60 in total, and 2.999711 bonus shares per 10 shares issued through capitalization of the capital reserve,
as a result of which, our total share capital was increased to 6,983,871,085 shares; At the same time, 8 awardees under the incentive
plan resigned from June 12, 2019 to June 17, 2020. Accordingly, we adjusted the number of awardees and the number and exercise
price of stock options under the 2019 stock option incentive plan. After such adjustment, the number of awardees receiving the first
grant of share options was adjusted from 348 to 340, the number of such stock options granted for the first time was increased from
65,098,800 stock options to 84,626,558 stock options, the exercise price of such stock options was adjusted from RMB17.93 per
share to RMB13.70 per share, and the number of the reserved stock options thereunder was adjusted from 16,241,700 stock options
to 21,113,740 stock options, and the exercise price of such stock options was adjusted from RMB17.93 per share to RMB13.70 per
share.
On the authority of the 1st extraordinary shareholders’ meeting in 2019, the 19th session of the 4th Board of Directors and the 19th
session of the 4th Board of Supervisors determined that the vesting conditions for the first vesting period of the 2019 stock option
incentive plan have been satisfied. 339 awardees who have satisfied the vesting conditions may exercise up to 16,456,708 stock
options in the first vesting period at the exercise price of RMB13.70 per share at their sole discretion.
As of September 30, 2020, there were additional 11,435,118 shares issued with respect to the stock options granted for the first time
under the 2019 stock option incentive plan.
3. Convertible corporate bonds
On July 11, 2019, the 13th session of the 4th Board of Directors of the Company deliberated and adopted the Proposal on the
Company's Plan for Public Issuance of Convertible Corporate Bonds and other relevant proposals. For details, please refer to the
Luxshare Precision: Plan for Public Issuance of Convertible Corporate Bonds and other announcement documents disclosed on the
Company's designated information disclosure media, i.e. Cninfo, at http://www.cninfo.com.cn. The types of securities to be issued
this time are convertible corporate bonds that can be converted into A shares of the Company. The convertible bonds and the A
shares to be converted in the future will be listed on the Shenzhen Stock Exchange. According to the requirements of relevant laws
and regulations and normative documents, and in combination with the Company's financial condition and investment plan, the total
amount of funds raised by the issuance of convertible bonds does not exceed RMB 3 billion (inclusive). The relevant proposals have
been deliberated and passed by the Company’s second extraordinary general meeting of shareholders in 2019 on August 2, 2019.
On September 18, 2019, the Company received the Acceptance Request for Administrative License of China Securities Regulatory
Commission (Acceptance No.: 192436) issued by China Securities Regulatory Commission, and CSRC reviewed the administrative
license application materials of Approval for Listed Companies to Issue Convertible Corporate Bonds submitted by the Company in
accordance with the law. The Company's application materials are complete and has obtained the Acceptance Request for
Administrative License of China Securities Regulatory Commission.
On October 24, 2019, the Company received the First Review of the Application for Administrative Licensing from China Securities
Regulatory Commission (No. 192436) issued by China Securities Regulatory Commission. The CSRC has reviewed the
administrative license application materials of Approval for Listed Companies to Issue Convertible Corporate Bonds submitted by
the Company in accordance with the law, which requires the Company and the sponsor to make written statements and explanations
on relevant issues. The Company and relevant intermediaries have implemented, checked and responded to the relevant issues in the
feedback one by one in accordance with the requirements of the above feedback, and made public disclosure of the reply to the
feedback according to the relevant requirements. For details, please refer to the Luxshare Precision: Announcement on Reply to
Feedback on Application Documents for Public Issuance of Convertible Corporate Bonds disclosed on the Company's designated
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Luxshare Precision Industry Co., Ltd. Third Quarter Report 2020
information disclosure media, i.e. Cninfo, at http://www.cninfo.com.cn.
On January 9, 2020, the Issuance Examination Committee of the China Securities Regulatory Commission (“CSRC”) examined and
approved the application from Luxshare Precision Industry Co., Ltd. for issuance of convertible corporate bonds.
In February 2020, we received the Reply on Approving the Public Issuance of Convertible Corporate Bonds by Luxshare Precision
Industry Co., Ltd. (Zheng Jian Xu Ke [2020] No. 247) from the CSRC, which approved us publicly issuing convertible corporate
bonds in an aggregate amount of RMB3 billion with a term of six years.
In July 2020, the 20th session of the 4th Board of Directors and the first general meeting of shareholders in 2020 deliberated and
adopted the Proposal on Extending the Term of the Resolution of the General Meeting of Shareholders on the Public Issuance of
Convertible Corporate Bonds and other relevant proposals. For details, please refer to the Luxshare Precision: Announcement on
extending Term of the Resolution and Authorization of the General Meeting of Shareholders on the Public Issuance of Convertible
Corporate Bonds disclosed on the Company's designated information disclosure media, i.e. Cninfo, at http://www.cninfo.com.cn. The
Company will extend the term of the resolution and authorization of the general meeting of shareholders for 12 months from the date
of expiration.
Progress of share repurchase:
□ Applicable √ N/A
Progress of sale of repurchased shares through call auction:
□ Applicable √ N/A
III. Commitments made by the actual controller, shareholders, affiliates and acquirer of the
Company, the Company itself and other related parties that failed to be fulfilled as at the end
of the reporting period
□ Applicable √ N/A
There wasn’t any commitment made by us or any of our actual controller, shareholders, affiliates or acquirer, or other related parties
that failed to be fulfilled at the end of the reporting period.
IV. Investment in financial assets
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Luxshare Precision Industry Co., Ltd. Third Quarter Report 2020
1. Investment in securities
√ Applicable □ N/A
In RMB
Gain or loss on Amount Amount sold
Aggregate changes Gain or loss in
Initial investment Method of Opening carrying changes in fair acquired in the in the Closing carrying Accounting Source of
Type of security Security code Short name in fair value the reporting
cost measurement amount value in the reporting reporting amount item funds
recorded in equity period
reporting period period period
Stock listed on Investment in
Tony Self-owned
domestic or 603595 22,500,000.00 Fair value 170,733,150.00 -35,587,400.00 109,132,853.44 0.00 25,749,472.10 22,013,608.73 147,758,884.80 other equity
Electronic funds
overseas market instruments
Total 22,500,000.00 -- 170,733,150.00 -35,587,400.00 109,132,853.44 0.00 25,749,472.10 22,013,608.73 147,758,884.80 -- --
Disclosure date of the announcement of the board of
directors approving the investment in securities
Disclosure date of the announcement of the shareholders’
meeting approving the investment in securities (if any)
2 Investment in derivatives
√ Applicable □ N/A
In RMB
Ratio of
closing
Whether or Allowance Actual gain or
Initial Amount acquired balance to the
Counterpart not a Type of Date of Date of Opening Amount sold in the for Closing loss in the
Affiliation investment in the reporting net asset as at
y related-party derivative commencement termination balance reporting period impairment balance reporting
cost period the end of the
transaction loss (if any) period
reporting
period
Non-affiliat Forward
Bank No 2,263,776,900 2,263,776,900 11,570,097,919.95 12,956,733,939.95 877,140,880 3.52% 166,383,972.68
e contract
Non-affiliat
Bank No Option 1,203,394,500 1,203,394,500 9,769,088,450 7,441,446,100 3,531,036,850 14.16% 50,365,850
e
Total 3,467,171,400 -- -- 3,467,171,400 21,339,186,369.95 20,398,180,039.95 4,408,177,730 17.68% 216,749,822.68
Source of funds Self-owned funds
Whether or not involved in any litigation N/A
Disclosure date of the announcement of the board of August 20, 2019
directors approving the investment in derivatives (if any) April 20, 2020
Disclosure date of the announcement of the shareholders’
May 13, 2020
meeting approving the investment in derivatives (if any)
1. We conduct foreign exchange derivative transactions for the purpose of fixing costs, and avoiding and preventing foreign exchange and interest rate risks, and prohibit
any speculation.
2. We have established strict business management policy regarding financial derivative transactions, which contain explicit provisions on the principle of operation,
Analysis of risks associated with the derivatives held in the
approving power, internal operating process, information segregation measures, internal risk controls, information disclosure and other issues relating to financial
reporting period (including without limitation market risk,
derivative transactions, to control the risks associated with such transactions.
liquidity risk, credit risk, operational risk and legal risk)
3. We carefully examine the terms of contracts entered into with the relevant banks, and strictly implement the risk management policy to prevent legal risks.
and related risk control measures
4. Our Finance Department continuously follows up on the changes in the market price or fair value of the relevant foreign exchange derivatives, promptly assesses the
changes in risk exposures of such foreign exchange derivatives, reports to the management on a regular basis, promptly reports the abnormal situations discovered, calls
attention to the relevant risks, and takes the appropriate emergency measures.
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Luxshare Precision Industry Co., Ltd. Third Quarter Report 2020
5. In order to prevent any delay in the delivery of forward exchange contracts, we attach great importance to the management of accounts receivable, and have established
safety management measures to prevent any delay in the payment of accounts receivable.
6. Our Internal Audit Department is responsible for supervising and auditing the decision-making, management, execution and other issues in respect of foreign exchange
derivative transactions.
Changes in the market price or fair value of the derivatives
held in the reporting period (in the analysis of the fair Change in the fair value of a foreign exchange derivative is the difference between its fair market price in the month in which the delivery date determined by the
value of derivatives, the specific approaches, assumptions Company falls and its contract price.
and parameters used shall be disclosed)
Whether there’s any material change in the accounting
policies and accounting principles for the measurement of
No material change
derivatives in the reporting period as compared with the
preceding reporting period
We conduct foreign exchange derivative transactions for the purpose of avoiding foreign exchange risk arising from fluctuation of the foreign exchange rate of RMB, and
Special opinion issued by the independent directors effectively controlling the uncertainties of costs caused by foreign exchange risk. We have established the Business Management Policy Regarding Financial Derivative
regarding the Company’s investment in derivatives and Transactions, to enhance risk management and control over foreign exchange derivative transactions. In addition, we only provide self-owned funds, rather than any
related risk control measures offering proceeds, as deposit for derivative transactions. The review, voting and other procedures relating to such transactions have complied with the Company Law, the
AOA and other applicable regulations.
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Luxshare Precision Industry Co., Ltd. Third Quarter Report 2020
V. Progress of projects invested with offering proceeds
√ Applicable □ N/A
In 2016, with the approval from China Securities Regulatory Commission through Reply on the Approval for Issuance of Non-public
Shares by Luxshare Precision Industry Co., Ltd. (Zheng Jian Xu Ke [2016] No. 1323), Luxshare Precision issued 234,096,692
RMB-denominated ordinary shares (A shares) to specific objects in the form of non-public offering at the price of RMB19.65 per
share, and raised a total amount of RMB 4,599,999,997.80 yuan and the net amount of raised funds is RMB 4,589,446,035.54 yuan
after deducting the issuance-related expenses of 10,553,962.26 yuan. The above raised funds have been verified and confirmed by
BDO China Shu Lun Pan CPAs (special general partnership), and issued the capital verification report (Xin Kuai Shi Bao Zi [2016]
No. 211754) on September 30, 2016.
As of December 31, 2019, the actual total investment out of the Company's raised funds is 4,594.31 million yuan, all the investment
from the funds raising projects have been completed and the remaining funds of all the funds raising projects are 154.49 million yuan
which has been permanently used to supplement the working capital.
VI. Forecast of the results of operation in 2020
Whether the estimated net profit for the period from the beginning of the current year to the end of the next reporting period will be
negative or vary greatly from the corresponding period in the preceding year and the reasons thereof:
√ Applicable □ N/A
Result forecast: Continue to increase.
Type of result forecast: Data of the relevant period
January 1- December
January 1-December 31, 2020 Y/Y % Change
31, 2019
Estimated aggregate net profit
(RMB0’000) 707,073.1 -- 730,642.2 471,382.06 Increase 50.00% -- 55.00%
Basic earnings per share
(yuan/share) 1.01 -- 1.05 0.67 Increase 50.75% -- 56.72%
Under the comprehensive forward-looking planning of the core management and the efficient
execution of all the employees, the Company's consumer electronics, communications and
Explanation
automobile businesses are progressing smoothly, and it is expected to continue to achieve
high-speed growth during the forecast period.
VII. Major contract of daily operation
□ Applicable √ N/A
VIII. Entrusted wealth management
√ Applicable □ N/A
In RMB0’000
Type Source of funds Total amount Outstanding amount Overdue amount
Bank wealth
Self-owned funds 265,817.16 265,817.16 0
management amount
Total 265,817.16 265,817.16 0
High-risk entrusted wealth management products that are significant individually, illiquid or not principal protected:
□ Applicable √ N/A
Entrusted wealth management products the principal of which may be unrecoverable or which may otherwise be impaired:
13
Luxshare Precision Industry Co., Ltd. Third Quarter Report 2020
□ Applicable √ N/A
IX. External guarantees in contravention of the regulations
□ Applicable √ N/A
We have not provided any external guarantee in contravention of the applicable regulations during the reporting period.
X. Occupation by the controlling shareholder and its affiliates of the funds of Company for
non-operating purpose
□ Applicable √ N/A
Our controlling shareholder and its affiliates have not occupied our funds for non-operating purpose during the reporting period.
XI. Registration form of receiving research, communication, interview and other activities
during the reporting period
√ Applicable □ N/A
Main contents in
Reception Reception Reception object Basic information index
Reception time Reception object discussion and
location method type of survey
offered materials
Meeting room, For details, please refer
Company
313 Beihuan to 002475 Luxshare
performance in
Road, Qingxi Institutional Precision: Survey
August 25,2020 Telephone Institution the first half of
Town, investor Information 20200827
2020 and
Dongguan, disclosed on Cninfo.
company profile
Guangdong on August 27, 2020
For details, please refer
Meeting room, to 002475 Luxshare
Company profile
399 Baisheng Precision: Investor
September 16, Institutional and future
Road, Jinxi Site survey Institution Relations Management
2020 investor development
Town, Kunshan, Archives 20200919
layout
Jiangsu disclosed on Cninfo. on
September 19, 2020
14
Luxshare Precision Industry Co., Ltd. Semi-annual Report 2020
Section IV. Financial Report
I. Financial Statements
1. Consolidated balance sheet
Prepared by: Luxshare Precision Industry Co., Ltd.
In RMB
Item September 30, 2020 December 31, 2019
Current Assets:
Cash and bank balances 6,697,855,882.25 6,180,466,259.01
Balances with clearing agencies
Placements with banks and other
financial institutions
Held-for-trading financial assets 2,780,000,199.18 1,524,366,132.75
Derivative financial assets
Notes receivable 177,756,894.42 66,873,926.97
Accounts receivable 13,607,333,340.50 13,243,625,572.22
Receivables financing
Prepayments 552,035,692.11 212,018,611.91
Premiums receivable
Amounts receivable under
reinsurance contracts
Reinsurer’s share of insurance
contract reserves
Other receivables 503,505,143.28 338,237,923.96
Including: Interest receivable 4,868,753.56
Dividends receivable
Financial assets purchased under
resale agreements
Inventories 16,992,431,692.81 7,700,857,888.16
Contract assets
Held-for-sale assets
Current portion of non-current
assets
Other current assets 1,565,173,455.52 1,484,451,151.73
Total current assets 42,876,092,300.07 30,750,897,466.71
Non-current Assets:
Loans and advances to customers
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 490,579,233.07 303,050,580.10
Other investments in equity
172,087,681.71 193,950,220.77
instruments
Other non-current financial assets
15
Luxshare Precision Industry Co., Ltd. Semi-annual Report 2020
Investment properties 47,847,824.12 52,656,477.74
Fixed assets 15,975,768,217.42 13,707,298,535.36
Construction in progress 1,435,138,430.80 865,549,438.56
Bearer biological assets
Oil and gas assets
Right-of-use assets
Intangible assets 1,233,991,800.92 1,047,725,845.53
Development expenditure
Goodwill 532,697,936.32 532,697,936.32
Long-term prepaid expenses 407,787,901.18 352,042,451.40
Deferred income tax assets 152,530,215.62 139,475,190.37
Other non-current assets: 2,452,181,204.01 1,432,566,528.37
Total non-current assets 22,900,610,445.17 18,627,013,204.52
Total assets 65,776,702,745.24 49,377,910,671.23
Current liabilities:
Short-term borrowings 8,169,342,308.24 4,166,302,223.17
Loans from the central bank
Taking from banks and other
financial institutions
Held-for-trading financial
1,245,622.80 1,001,553.00
liabilities
Derivative financial liabilities
Notes payable 105,578,999.01 206,496,660.20
Accounts payable 23,558,808,452.78 17,268,223,180.16
Receipts in advance 91,849.45 101,609,379.21
Contract liabilities 349,704,823.33
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 1,402,140,571.35 1,423,417,352.66
Taxes payable 612,219,900.73 327,633,322.68
Other payables 624,439,317.68 352,390,271.77
Including: Interest payable 21,960,352.13 6,097,484.73
Dividends payable 12,150,000.00
Fees and commissions payable
Amounts payable under
reinsurance contracts
Held-for-sale liabilities
Current portion of non-current
72,446,728.48 366,537,115.41
liabilities
Other current liabilities 1,629,769,124.03 646,115,152.49
Total current liabilities 36,525,787,697.88 24,859,726,210.75
Non-current liabilities:
16
Luxshare Precision Industry Co., Ltd. Semi-annual Report 2020
Insurance contract reserves
Long-term borrowings 1,586,930,532.12 1,562,908,824.30
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term employee benefits
payable
Estimated Liabilities 1,447,363.78 1,317,263.45
Deferred income 292,964,209.26 256,059,554.91
Deferred income tax liabilities 503,117,573.11 598,184,393.00
Other non-current liabilities 250,000,000.00 350,011,130.10
Total non-current liabilities 2,634,459,678.27 2,768,481,165.76
Total liabilities 39,160,247,376.15 27,628,207,376.51
Owner’s equity:
Share capital 6,996,787,241.00 5,349,001,738.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve 1,692,466,121.72 2,654,692,874.21
Less: Treasury stock
Other comprehensive income 87,435,876.62 165,602,152.74
Special reserve
Surplus reserve 362,335,031.18 362,335,031.18
General risk reserve
Undistributed profits 15,799,985,295.36 11,764,987,172.39
Total owners’ equity attributable to
24,939,009,565.88 20,296,618,968.52
equity holders of the parent company
Minority interest 1,677,445,803.21 1,453,084,326.20
Total owners’ equity 26,616,455,369.09 21,749,703,294.72
Total liabilities and owners’ equity 65,776,702,745.24 49,377,910,671.23
Legal representative: Wang Laichun Chief financial officer: Wu Tiansong Head of accounting department: Xiao Na
2. Balance sheet of the parent company
In RMB
Item September 30, 2020 December 31, 2019
Current Assets:
Cash and bank balances 2,042,243,655.13 1,261,246,519.90
Held-for-trading financial assets 1,616,056,115.00 564,979,683.89
Derivative financial assets
Notes receivable 87,499,027.20 7,452,736.02
Accounts receivable 3,655,164,524.16 1,561,792,817.49
Receivables financing
Prepayments 303,853,627.21 41,033,974.02
17
Luxshare Precision Industry Co., Ltd. Semi-annual Report 2020
Other receivables 671,780,348.87 524,425,779.85
Including: Interest receivable
Dividends receivable 16,500,000.00
Inventories 144,470,902.08 254,966,939.98
Contract assets
Held-for-sale assets
Current portion of non-current
assets
Other current assets 34,243,764.26 59,577,562.10
Total current assets 8,555,311,963.91 4,275,476,013.25
Non-current Assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 11,563,642,133.93 10,169,630,940.26
Other investments in equity
167,300,911.56 190,275,176.76
instruments
Other non-current financial assets
Investment properties
Fixed assets 141,977,324.78 96,298,416.94
Construction in progress 4,314,777.52 2,779,186.32
Bearer biological assets
Oil and gas assets
Right-of-use assets
Intangible assets 44,287,656.26 24,590,128.29
Development expenditure
Goodwill 53,174,339.31 53,174,339.31
Long-term prepaid expenses 1,000,179.71 1,818,508.31
Deferred income tax assets 13,105,565.14 13,804,913.52
Other non-current assets: 7,149,070.00 6,162,851.80
Total non-current assets 11,995,951,958.21 10,558,534,461.51
Total assets 20,551,263,922.12 14,834,010,474.76
Current liabilities:
Short-term borrowings 1,124,120,700.00 82,450,000.00
Held-for-trading financial
liabilities
Derivative financial liabilities
Notes payable 1,399,592,381.82 1,210,846,167.41
Accounts payable 2,526,385,714.34 1,190,614,614.64
Receipts in advance 19,692,593.36
Contract liabilities 34,968,619.36
Employee benefits payable 10,303,111.86 46,817,340.23
Taxes payable 67,752,652.74 15,259,960.69
Other payables 445,140,831.75 509,173,095.52
Including: Interest payable 27,909,252.68 531,438.07
Dividends payable
Held-for-sale liabilities
18
Luxshare Precision Industry Co., Ltd. Semi-annual Report 2020
Current portion of non-current
liabilities
Other current liabilities 1,500,000,000.00 500,000,000.00
Total Current Liabilities 7,108,264,011.87 3,574,853,771.85
Non-current liabilities:
Long-term borrowings 200,000,000.00
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term employee benefits
payable
Estimated Liabilities
Deferred income 9,001,540.61 10,941,542.77
Deferred income tax liabilities 20,430,012.28 22,367,576.60
Other non-current liabilities
Total non-current liabilities 229,431,552.89 33,309,119.37
Total liabilities 7,337,695,564.76 3,608,162,891.22
Owner’s equity:
Share capital 6,996,787,241.00 5,349,001,738.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve 2,121,516,082.92 3,070,397,725.31
Less: Treasury stock
Other comprehensive income 108,743,576.18 125,608,900.24
Special reserve
Surplus reserve 362,335,031.18 362,335,031.18
Undistributed profits 3,624,186,426.08 2,318,504,188.81
Total owners’ equity 13,213,568,357.36 11,225,847,583.54
Total liabilities and owners’ equity 20,551,263,922.12 14,834,010,474.76
3. Consolidated income statement of this reporting period
In RMB
Item 2020 third quarter 2019 third quarter
I. Total operating income 23,076,494,141.40 16,395,399,396.48
Including: Operating income 23,076,494,141.40 16,395,399,396.48
Interest income
Premiums earned
Fee and commission income
II. Total operating costs 20,735,792,055.01 14,706,315,220.38
Including: Operating costs 17,918,627,343.37 12,777,330,169.50
Interest expenses
Fee and commission
expenses
19
Luxshare Precision Industry Co., Ltd. Semi-annual Report 2020
Surrenders;
Claims and policyholder
benefits (net of mounts recoverable from
reinsurers)
Changes in insurance
contract reserves (net of reinsurers’ share)
Insurance policyholder
dividends
Expenses for reinsurance
accepted
Taxes and surcharges 75,380,649.14 109,815,415.52
Selling expenses 202,214,578.63 128,330,343.36
Administrative expenses 568,215,792.00 381,240,343.87
Research and development
1,897,719,077.89 1,306,437,611.04
expenses
Financial expenses 73,634,613.98 3,161,337.09
Including: Interest
92,416,823.79 93,761,338.47
expenses
Interest income 39,636,030.15 28,609,532.04
Add: Other income 215,537,654.39 71,421,873.24
Investment income (loss is
15,092,165.47 21,068,043.54
indicated by “-”)
Including: Income from
investments in associates and joint 5,053,767.98 -14,037,842.34
ventures
Income from
derecognition of financial assets
measured at amortized cost
Foreign exchange gains (loss is
indicated by “-”)
Net exposure hedging income
(loss is indicated by “-”)
Income from changes in fair
92,078,754.63 -43,190,665.93
value (loss is indicated by “-”)
Impairment losses of credit
-4,638,791.53
(loss is indicated by “-”)
Impairment losses of assets
-40,706,803.28 11,441,266.34
(loss is indicated by “-”)
Income from disposal of assets
16,905,030.25 295,303.28
(loss is indicated by “-”)
III. Operating profit (loss is indicated by
2,634,970,096.32 1,750,119,996.57
“-”)
Add: Non-operating income 5,351,597.80 5,170,956.46
Less: Non-operating expenses 19,519,205.76 13,090,803.22
IV. Total profit (total losses are indicated
2,620,802,488.36 1,742,200,149.81
by “-”)
Less: Income tax expenses 415,251,941.62 270,486,074.81
V. Net profit (net loss is indicated by “-”) 2,205,550,546.74 1,471,714,075.00
(I) Categorized by the nature of
continuing operation
1. Net profit from continuing
2,205,550,546.74 1,471,714,075.00
operations (net loss is indicated by “-”)
2. Net profit from discontinued
20
Luxshare Precision Industry Co., Ltd. Semi-annual Report 2020
operations (net loss is indicated by “-”)
(II) Categorized by ownership
1. Net profit attributable to owners
2,141,839,306.57 1,385,982,967.86
of the parent company
2. Profit or loss attributable to
63,711,240.17 85,731,107.14
minority interest
VI. Other comprehensive income, net of
-252,471,123.98 52,537,163.62
tax
Other comprehensive income
attributable to owners of the parent -243,162,657.01 46,150,108.79
company, net of tax
(I) Other comprehensive income that
cannot be subsequently reclassified to -64,355,532.80 25,302,375.00
profit or loss
1. Changes from
re-measurement 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
-64,355,532.80 25,302,375.00
other investments in equity instruments
4. Changes in fair value of
enterprises’ own credit risks
5. Others
(II) Other comprehensive income
-178,807,124.21 20,847,733.79
that will be reclassified to profit or loss
1. Other comprehensive
income that will be reclassified to profit
or loss under the equity method
2. Changes in fair value of
other debt investments
3. Amounts of financial
assets reclassified into other
comprehensive income
4. Provision for credit
impairment of other debt investments
5. Reserve for cash flow
hedges
6. Translation differences of
financial statements denominated in -178,807,124.21 20,847,733.79
foreign currencies
7. Others
Other comprehensive income
-9,308,466.97 6,387,054.83
attributable to minority interest, net of tax
VII. Total comprehensive income 1,953,079,422.76 1,524,251,238.62
Total comprehensive income
attributable to owners of the parent 1,898,676,649.56 1,432,133,076.65
company
Total comprehensive income
54,402,773.20 92,118,161.97
attributable to minority interest
VIII. Earnings per share
(I) Basic earnings per share 0.31 0.20
(II) Diluted earnings per share 0.31 0.20
For any business combination involving enterprises under common control for the current period, the net profits of the absorbed party
21
Luxshare Precision Industry Co., Ltd. Semi-annual Report 2020
prior to the combination are RMB in the current period, and were RMB in prior period.
Legal representative: Wang Laichun Chief financial officer: Wu Tiansong Head of accounting department: Xiao Na
4. Income statement of the parent company of this reporting period
In RMB
Item 2020 third quarter 2019 third quarter
I. Operating income 3,464,376,138.57 1,252,794,502.63
Less: Operating costs 3,192,508,710.83 1,108,900,514.95
Taxes and surcharges 5,890,134.00 1,842,836.72
Selling expenses 10,623,298.66 13,137,319.14
Administrative expenses 30,222,228.26 37,027,386.54
Research and development
37,841,713.41 44,801,983.70
expenses
Financial expenses 30,280,306.07 25,785.15
Including: Interest
19,103,097.06 2,890,760.79
expenses
Interest income 6,947,320.35 541,681.30
Add: Other income 13,864,775.62 6,924,153.91
Investment income (loss is
1,663,888,442.16 245,798,904.31
indicated by “-”)
Including: Income from
investments in associates and joint -626,090.72
ventures
Income from
derecognition of financial assets
measured at amortized cost
Net exposure hedging income
(loss is indicated by “-”)
Income from changes in fair
7,026,313.00 -1,482,646.00
value (loss is indicated by “-”)
Impairment losses of credit
264,232.96
(loss is indicated by “-”)
Impairment losses of assets
25,211.26
(loss is indicated by “-”)
Income from disposal of
0.23
assets (loss is indicated by “-”)
II. Operating profit (loss is indicated by
1,842,053,511.31 298,324,299.91
“-”)
Add: Non-operating income 9,931.41 29,313.21
Less: Non-operating expenses 715,241.05 670,094.18
III. Total profit (total losses are
1,841,348,201.67 297,683,518.94
indicated by “-”)
Less: Income tax expenses 37,893,412.08 13,213,086.73
IV. Net profit (net loss is indicated by
1,803,454,789.59 284,470,432.21
“-”)
(I) Net profit from continuing
1,803,454,789.59 284,470,432.21
operation（(net loss is indicated by “-”)
(II) Net profit from discontinued
operations（(net loss is indicated by “-”)
22
Luxshare Precision Industry Co., Ltd. Semi-annual Report 2020
V. Other comprehensive income, net of
-52,794,696.56 25,302,375.00
tax
(I) Other comprehensive income
that cannot be subsequently reclassified -52,794,696.56 25,302,375.00
to profit or loss
1. Changes from
re-measurement 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
-52,794,696.56 25,302,375.00
other investments in equity instruments
4. Changes in fair value of
enterprises’ own credit risks
5. Others
(II) Other comprehensive income
that will be reclassified to profit or loss
1. Other comprehensive
income that will be reclassified to profit
or loss under the equity method
2. Changes in fair value of
other debt investments
3. Amounts of financial
assets reclassified into other
comprehensive income
4. Provision for credit
impairment of other debt investments
5. Reserve for cash flow
hedges
6. Translation differences
of financial statements denominated in
foreign currencies
7. Others
VI. Total comprehensive income 1,750,660,093.03 309,772,807.21
VII. Earnings per share:
(I) Basic earnings per share
(II) Diluted earnings per share
5. Consolidated income statement from the beginning of the year to the end of the reporting report
Item 2020 first three quarters 2019 first three quarters
I. Total operating income 59,528,120,290.26 37,836,138,416.35
Including: Operating income 59,528,120,290.26 37,836,138,416.35
Interest income
Premiums earned
Fee and commission income
II. Total operating costs 54,338,902,679.23 34,476,493,369.69
Including: Operating costs 47,741,922,113.72 30,092,697,366.58
Interest expenses
Fee and commission
expenses
Surrenders;
23
Luxshare Precision Industry Co., Ltd. Semi-annual Report 2020
Claims and policyholder
benefits (net of mounts recoverable from
reinsurers)
Changes in insurance
contract reserves (net of reinsurers’ share)
Insurance policyholder
dividends
Expenses for reinsurance
accepted
Taxes and surcharges 165,986,772.39 210,642,215.47
Selling expenses 444,793,564.06 322,326,979.02
Administrative expenses 1,332,741,024.29 799,582,534.59
Research and development
4,466,227,599.35 2,884,731,309.01
expenses
Financial expenses 187,231,605.42 166,512,965.02
Including: Interest
295,027,580.09 273,987,207.80
expenses
Interest income 126,293,612.10 85,100,933.40
Add: Other income 342,012,449.71 153,239,408.50
Investment income (loss is
149,507,684.91 101,471,800.28
indicated by “-”)
Including: Income from
investments in associates and joint 12,352,183.83 -32,740,232.98
ventures
Income from
derecognition of financial assets
measured at amortized cost
Foreign exchange gains (loss is
indicated by “-”)
Net exposure hedging income
(loss is indicated by “-”)
Income from changes in fair
91,026,838.04 -48,793,575.03
value (loss is indicated by “-”)
Impairment losses of credit
-8,021,239.33
(loss is indicated by “-”)
Impairment losses of assets
-51,255,442.21 69,532,340.20
(loss is indicated by “-”)
Income from disposal of assets
29,425,924.23 3,511,540.00
(loss is indicated by “-”)
III. Operating profit (loss is indicated by
5,741,913,826.38 3,638,606,560.61
“-”)
Add: Non-operating income 16,613,608.70 8,100,761.27
Less: Non-operating expenses 49,896,060.06 88,713,260.40
IV. Total profit (total losses are indicated
5,708,631,375.02 3,557,994,061.48
by “-”)
Less: Income tax expenses 881,239,830.63 533,013,060.82
V. Net profit (net loss is indicated by “-”) 4,827,391,544.39 3,024,981,000.66
(I) Categorized by the nature of
continuing operation
1. Net profit from continuing
4,827,391,544.39 3,024,981,000.66
operations (net loss is indicated by “-”)
2. Net profit from discontinued
operations (net loss is indicated by “-”)
24
Luxshare Precision Industry Co., Ltd. Semi-annual Report 2020
(II) Categorized by ownership
1. Net profit attributable to owners
4,679,614,065.03 2,887,521,926.70
of the parent company
2. Profit or loss attributable to
147,777,479.36 137,459,073.96
minority interest
VI. Other comprehensive income, net of
-79,721,998.94 24,148,715.55
tax
Other comprehensive income
attributable to owners of the parent -78,166,276.12 17,506,582.96
company, net of tax
(I) Other comprehensive income that
cannot be subsequently reclassified to -16,865,324.07 21,904,627.50
profit or loss
1. Changes from
re-measurement 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
-16,865,324.07 21,904,627.50
other investments in equity instruments
4. Changes in fair value of
enterprises’ own credit risks
5. Others
(II) Other comprehensive income
-61,300,952.05 -4,398,044.54
that will be reclassified to profit or loss
1. Other comprehensive
income that will be reclassified to profit
or loss under the equity method
2. Changes in fair value of
other debt investments
3. Amounts of financial
assets reclassified into other
comprehensive income
4. Provision for credit
impairment of other debt investments
5. Reserve for cash flow
hedges
6. Translation differences of
financial statements denominated in -61,300,952.05 -4,398,044.54
foreign currencies
7. Others
Other comprehensive income
-1,555,722.82 6,642,132.59
attributable to minority interest, net of tax
VII. Total comprehensive income 4,747,669,545.45 3,049,129,716.21
Total comprehensive income
attributable to owners of the parent 4,601,447,788.91 2,905,028,509.66
company
Total comprehensive income
146,221,756.54 144,101,206.55
attributable to minority interest
VIII. Earnings per share
(I) Basic earnings per share 0.67 0.41
(II) Diluted earnings per share 0.67 0.41
For any business combination involving enterprises under common control for the current period, the net profits of the absorbed party
prior to the combination are RMB in the current period, and were RMB in prior period.
25
Luxshare Precision Industry Co., Ltd. Semi-annual Report 2020
Legal representative: Wang Laichun Chief financial officer: Wu Tiansong Head of accounting department: Xiao Na
6. Income statement of the parent company from the beginning of the year to the end of the reporting
report
In RMB
Item 2020 first three quarters 2019 first three quarters
I. Operating income 6,343,406,810.47 2,958,410,147.04
Less: Operating costs 5,805,838,129.26 2,691,742,136.14
Taxes and surcharges 8,130,165.60 4,293,657.17
Selling expenses 29,994,204.48 26,520,064.28
Administrative expenses 80,358,668.69 80,647,143.97
Research and development
83,249,464.66 73,206,820.33
expenses
Financial expenses 56,490,598.36 11,327,000.62
Including: Interest
44,185,916.86 12,697,965.08
expenses
Interest income 8,690,477.63 1,046,218.70
Add: Other income 47,392,684.99 17,267,174.88
Investment income (loss is
1,684,208,186.60 559,953,686.38
indicated by “-”)
Including: Income from
investments in associates and joint 1,662,865.23
ventures
Income from
derecognition of financial assets
measured at amortized cost
Net exposure hedging income
(loss is indicated by “-”)
Income from changes in fair
6,924,462.00 -511,637.50
value (loss is indicated by “-”)
Impairment losses of credit
108,631.20
(loss is indicated by “-”)
Impairment losses of assets
175,184.09 206,527.54
(loss is indicated by “-”)
Income from disposal of
-61,460.74
assets (loss is indicated by “-”)
II. Operating profit (loss is indicated by
2,018,093,267.56 647,589,075.83
“-”)
Add: Non-operating income 19,979.68 67,107.37
Less: Non-operating expenses 2,446,959.31 1,135,869.33
III. Total profit (total losses are
2,015,666,287.93 646,520,313.87
indicated by “-”)
Less: Income tax expenses 65,368,108.60 20,666,012.39
IV. Net profit (net loss is indicated by
1,950,298,179.33 625,854,301.48
“-”)
(I) Net profit from continuing
1,950,298,179.33 625,854,301.48
operation（(net loss is indicated by “-”)
(II) Net profit from discontinued
operations（(net loss is indicated by “-”)
V. Other comprehensive income, net of -16,865,324.06 21,904,627.50
26
Luxshare Precision Industry Co., Ltd. Semi-annual Report 2020
tax
(I) Other comprehensive income
that cannot be subsequently reclassified -16,865,324.06 21,904,627.50
to profit or loss
1. Changes from
re-measurement 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
-16,865,324.06 21,904,627.50
other investments in equity instruments
4. Changes in fair value of
enterprises’ own credit risks
5. Others
(II) Other comprehensive income
that will be reclassified to profit or loss
1. Other comprehensive
income that will be reclassified to profit
or loss under the equity method
2. Changes in fair value of
other debt investments
3. Amounts of financial
assets reclassified into other
comprehensive income
4. Provision for credit
impairment of other debt investments
5. Reserve for cash flow
hedges
6. Translation differences
of financial statements denominated in
foreign currencies
7. Others
VI. Total comprehensive income 1,933,432,855.27 647,758,928.98
VII. Earnings per share:
(I) Basic earnings per share
(II) Diluted earnings per share
7. Consolidated statement of cash flow from the beginning of the year to the end of the reporting report
In RMB
Item 2020 first three quarters 2019 first three quarters
I. Cash flows from operating activities:
Cash receipts from sale of goods
59,820,024,533.88 40,439,975,740.42
and rendering of services
Net increase in customer deposits
and deposits from banks and other
financial institutions
Net increase in loans from the
central bank
Net increase in taking from other
financial institutions
Cash receipts from premiums
under direct insurance contracts
27
Luxshare Precision Industry Co., Ltd. Semi-annual Report 2020
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
and other financial institutions
Net increase in financial assets
sold under repurchase arrangements
Net cash received from securities
trading agency
Receipts of tax refunds 2,149,590,962.81 2,125,641,152.55
Other cash receipts relating to
1,962,403,233.52 1,615,054,427.99
operating activities
Sub-total of cash inflows from
63,932,018,730.21 44,180,671,320.96
operating activities
Cash payments for goods
50,319,737,532.22 30,111,459,573.90
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 institution
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
8,597,193,538.01 5,440,603,372.54
employees
Payments of various types of taxes 1,133,748,357.54 851,575,972.98
Other cash payments relating to
1,141,277,069.66 1,666,054,682.99
operating activities
Sub-total of cash outflows from
61,191,956,497.43 38,069,693,602.41
operating activities
Net cash flow from operating activities 2,740,062,232.78 6,110,977,718.55
II. Cash flows from investing activities:
Cash receipts from disposals and
47,713,381,777.05 64,136,192,605.27
recovery of investments
Cash receipts from investment
208,419,232.28 81,855,936.30
income
Net cash receipts from disposals of
fixed assets, intangible assets and other 52,104,451.04 111,777,219.26
long-term assets
Net cash receipts from disposals of
63,942,000.00 14,566,191.05
subsidiaries and other business entities
Other cash receipts relating to
499,850.00 30,241,211.75
investing activities
Sub-total of cash inflows from investing 48,038,347,310.37 64,374,633,163.63
28
Luxshare Precision Industry Co., Ltd. Semi-annual Report 2020
activities
Cash payments to acquire or
construct fixed assets, intangible assets 5,495,052,375.92 4,256,657,988.48
and other long-term assets
Cash payments to acquire
49,439,659,774.05 63,833,955,184.31
investments
Net increase in pledged loans
receivables
Net cash payments for acquisitions
3,975,934.82
of subsidiaries and other business units
Other cash payments relating to
817,923.32 45,054,081.63
investing activities.
Sub-total of cash outflows from
54,935,530,073.29 68,139,643,189.24
investing activities
Net cash flow from investing activities -6,897,182,762.92 -3,765,010,025.61
III. Cash flows from financing
activities:
Cash receipts from capital
286,188,407.24 24,129,428.31
contributions
Including: cash receipts from
capital contributions from minority
interest shareholders of subsidiaries
Cash receipts from borrowings 23,367,109,132.69 12,098,385,434.57
Other cash receipts relating to
291,111,225.60 395,796.26
financing activities
Sub-total of cash inflows from
23,944,408,765.53 12,122,910,659.14
financing activities
Cash repayments of amounts
18,422,612,733.74 12,693,466,778.43
borrowed
Cash payments for distribution of
dividends or profits or settlement of 814,253,478.54 433,042,274.14
interest expenses
Including: payments for
distribution of dividends or profits to
minority interest shareholders of
subsidiaries
Other cash payments relating to
8,475,758.96 3,185,447.90
financing activities
Sub-total of cash outflows from
19,245,341,971.24 13,129,694,500.47
financing activities
Net cash flow from financing activities 4,699,066,794.29 -1,006,783,841.33
IV. Effect of foreign exchange rate
-37,319,701.36 163,036,108.14
changes on cash and cash equivalents
V. Net increase in cash and cash
504,626,562.79 1,502,219,959.75
equivalents
Add: Opening balance of cash and
6,147,339,924.26 3,809,520,108.33
cash equivalents
VI. Closing balance of cash and cash
6,651,966,487.05 5,311,740,068.08
equivalents
8. Statement of cash flow of the parent company from the beginning of the year to the end of the reporting
report
In RMB
29
Luxshare Precision Industry Co., Ltd. Semi-annual Report 2020
Item 2020 first three quarters 2019 first three quarters
I. Cash flows from operating activities:
Cash receipts from sale of goods
4,802,832,961.17 3,332,180,231.09
and rendering of services
Receipts of tax refunds 138,658,293.85 114,182,106.37
Other cash receipts relating to
234,445,088.93 414,923,445.98
operating activities
Sub-total of cash inflows from
5,175,936,343.95 3,861,285,783.44
operating activities
Cash payments for goods
5,575,242,278.72 2,381,139,581.32
purchased and services received
Cash payments to and on behalf of
136,704,265.43 87,498,575.17
employees
Payments of various types of taxes 13,246,968.95 60,138,333.78
Other cash payments relating to
359,350,647.62 274,260,463.75
operating activities
Sub-total of cash outflows from
6,084,544,160.72 2,803,036,954.02
operating activities
Net cash flow from operating activities -908,607,816.77 1,058,248,829.42
II. Cash flows from investing activities:
Cash receipts from disposals and
11,815,632,707.48 8,926,500,000.00
recovery of investments
Cash receipts from investment
1,661,501,094.91 608,087,568.46
income
Net cash receipts from disposals of
fixed assets, intangible assets and other 233,296.13 2,797,482.71
long-term assets
Net cash receipts from disposals of
252,857,872.93 7,239,163.89
subsidiaries and other business entities
Other cash receipts relating to
investing activities
Sub-total of cash inflows from investing
13,730,224,971.45 9,544,624,215.06
activities
Cash payments to acquire or
construct fixed assets, intangible assets 33,762,958.60 28,141,230.39
and other long-term assets
Cash payments to acquire
14,124,534,000.00 9,756,858,827.28
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
14,158,296,958.60 9,785,000,057.67
investing activities
Net cash flow from investing activities -428,071,987.15 -240,375,842.61
III. Cash flows from financing
activities:
Cash receipts from capital
195,212,407.24
contributions
Cash receipts from borrowings 2,842,986,000.00 13,779,200.00
Other cash receipts relating to
291,111,225.60
financing activities
Sub-total of cash inflows from
3,329,309,632.84 13,779,200.00
financing activities
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Luxshare Precision Industry Co., Ltd. Semi-annual Report 2020
Cash repayments of amounts
600,000,000.00 298,146,776.00
borrowed
Cash payments for distribution of
dividends or profits or settlement of 627,687,696.92 218,411,966.76
interest expenses
Other cash payments relating to
5,883,277.37
financing activities
Sub-total of cash outflows from
1,233,570,974.29 516,558,742.76
financing activities
Net cash flow from financing activities 2,095,738,658.55 -502,779,542.76
IV. Effect of foreign exchange rate
-2,661,719.40 -1,085,340.29
changes on cash and cash equivalents
V. Net increase in cash and cash
756,397,135.23 314,008,103.76
equivalents
Add: Opening balance of cash and
1,261,246,519.90 274,756,823.63
cash equivalents
VI. Closing balance of cash and cash
2,017,643,655.13 588,764,927.39
equivalents
31
Luxshare Precision Industry Co., Ltd. Semi-annual Report 2020
II. Adjustments to Financial Statements
1. Adjustment to relevant items in the financial statements at the beginning of the initial year when the new
revenue standards and new lease standards are implemented since 2020
□ Applicable √ Not Applicable
2. Notes on data in the prior comparative statements retroactively adjusted after the initial implementation
of the new revenue standards and the new lease standards since 2020
□ Applicable √ Not Applicable
III. Auditor’s Report
If the third quarter report has been audited
□ Yes √ No
The Company’s third quarter financial report has not been audited.
Luxshare Precision Industry Co., Ltd.
Chairman of Board: Wang Laichun
October 27, 2020
32
