Guangdong Dongfang Precision Science & Technology Co., Ltd. Q1 2020 Report 广东东方精工科技股份有限公司 英文季度报披露说明 近年来中国资本市场持续加大对外开放力度,鼓励境外投资者更多参与,东方精工科技 股份有限公司(以下简称“公司”)为更好地服务越来越多的境外投资者,让境外投资者更 便捷地获取公司经营与财务等方面信息,同时也更充分地向境外投资者传递公司的投资价值, 提升公司国际化水平,公司披露《2020年第一季度报告》的英文版本。 本次报告翻译中,涉及众多瓦楞包装机械行业和财会方面的专业术语。虽然公司已尽力 确保原文内容得到准确的转译,但仍可能会存在不恰当之处。公司在此声明:如果您在阅读 《2020年第一季度报告》的中文、英文文本的过程中,在对文本的理解上发生歧义时,以中 文文本为准。 In recent years, China's capital market continues to open to the outside world and encouraged foreign investors to participate in the financial market of China. Guangdong Dongfang Precision Science & Technology Co., Ltd. (hereinafter referred to as ”the company”) discloses its Q1 2020 Report in English, that we believe can enables for foreign investors to obtain information about the company's operation and finance more conveniently, and fully convey the investment value of the company to them, and at the same time help continuously improving the company's international level. As the report involves many professional terms translation of Corrugated packaging machinery industry and financial accounting, the company has made great efforts to ensure the accurate translation of the original content, but there may still be some inadequacies. The company hereby declares that in case of any ambiguity in your understanding of the Chinese version and English version of the Q1 2020 Report, the Chinese version shall prevail. 1 Guangdong Dongfang Precision Science & Technology Co., Ltd. Q1 2020 Report Guangdong Dongfang Precision Science&Technology Co.,Ltd. Q1 2020 Report April 2020 2 Guangdong Dongfang Precision Science & Technology Co., Ltd. Q1 2020 Report Section 1 Important Notice The company's board of directors, board of supervisors, directors, supervisors, and senior management ensure that the contents of the quarterly report are true, accurate, and complete, that there are no false records, misleading statements, or major omissions, and if there are any, we shall bear individual and joint legal responsibilities. All the directors attended the board meeting to review this quarterly report. Tang Zhuolin, person in charge of the company, Qiu Yezhi, person in charge of accounting work, and Qiu Yezhi, person in charge of accounting institutions (accounting officer) hereby confirm that the financial report in the quarterly report is true, accurate and complete. 3 Guangdong Dongfang Precision Science & Technology Co., Ltd. Q1 2020 Report Section 2 Basic information of the company I. Main Accounting Data and Financial Indicators Does the company need to retroactively adjust or restate previous year's accounting data □ YES √ NO Increase or decrease Current Period Same period of last year by...than the previous period Operating income (yuan) 618,374,944.67 1,199,609,998.96 -48.45% Net profit attributable to shareholders of 47,491,377.77 26,225,836.51 81.09% listed companies (yuan) Net profit attributable to shareholders of listed companies after deducting 25,666,651.19 23,381,604.22 9.77% non-recurring gains and losses (yuan) Net cash flow from operating activities -85,471,622.64 419,627,201.97 -120.37% (yuan) Basic earnings per share (yuan / share) 0.03 0.01 200.00% Diluted earnings per share (yuan / share) 0.03 0.01 200.00% Weighted average return on net assets 1.09% 0.66% 0.43% Increase or decrease At the end of the reporting At the end of last year by...than the previous period Total assets (yuan) 6,367,537,031.88 6,273,516,157.31 1.50% Net assets attributable to shareholders of 4,384,368,109.33 4,337,064,607.87 1.09% listed companies (yuan) 4 Guangdong Dongfang Precision Science & Technology Co., Ltd. Q1 2020 Report Non-recurring items and amounts √ Applicable □ Not applicable Unit: yuan Amount from year-begin to Item Explanation period-end Government subsidies included in the current profit and loss (closely related to the business of the enterprise, except for 548,066.08 government subsidies that are fixed or quantified according to the national unified standard) In addition to the effective hedging business related to the company's normal business operations, holding transactional financial assets, derivative financial assets, transactional financial Mainly for the bank wealth liabilities, fair value changes in derivative financial liabilities, and 23,139,327.66 management income disposal of transactional financial assets and derivative financial investment income from assets, trading financial liabilities, derivative financial liabilities and other debt investments Other non-operating income and expenses other than the above 2,008,464.03 Deduct: the amount of income tax impact 3,857,143.82 Minority shareholders' equity impact (after tax) 13,987.37 In total 21,824,726.58 -- For the company's non-recurring gains and losses items defined by the "Announcement No. 1 of Information Disclosure by Companies Offering Securities to the Public — Non-recurring Gains and Losses" and the non-recurring gains and losses items defined by "Announcement No. 1 of Information Disclosure by Companies Offering Securities to the Public —Non-recurring Gains and Losses" as recurring gains and losses, the reasons should be explained □ Applicable √ Not applicable During the reporting period of the company, there were no situations in which the non-recurring gains and losses items listed in accordance with the definition of "Announcement No. 1 of Information Disclosure by Companies Offering Securities to the Public — Non-recurring Gains and Losses" were defined and listed as recurring gains and losses 5 Guangdong Dongfang Precision Science & Technology Co., Ltd. Q1 2020 Report II. Total shareholders at the end of the reporting period and the top ten shareholders' shareholding table 1. The total number of ordinary shareholders and the number of preferred shareholders with voting rights restored and the top 10 shareholders' shareholding table Unit: shares Total number of preferred Total number of ordinary shareholders with voting rights shareholders at the end of the 50,278 0 restored at the end of the reporting reporting period period (if any) The top 10 shareholders Nature of Shareholding Number of shares Pledge or freeze situation Name of shareholder Number of shares with limited sales shareholders ratio conditions Share status Quantity Domestic Tang Zhuolin natural 17.52% 270,737,568 203,053,176 Pledge 187,000,000 person Domestic Tang Zhuomian natural 8.79% 135,885,134 0 person Pulead Technology State-owned 4.97% 76,810,172 76,810,172 Pledge 76,810,172 Industry Co.,Ltd. legal person Beijing Automotive State-owned Group Industry 3.14% 48,511,689 48,511,689 legal person Investment Co.,Ltd. Domestic Contemporary non-state-ow Amperex Technology 3.01% 46,490,368 46,490,368 ned legal Co. Limited person Domestic Ruan Huili natural 2.92% 45,087,232 0 person Construction State-owned Investment Investment 2.54% 39,215,685 0 legal person Co., Ltd. Luzhou Industrial State-owned Investment Group 2.06% 31,770,010 0 legal person Co., Ltd. 6 Guangdong Dongfang Precision Science & Technology Co., Ltd. Q1 2020 Report Huarong Securities-China Merchants Securities-Huarong Other 2.03% 31,372,549 0 Youzhi No. 1 Collective Asset Management Plan Qinghai Puren Domestic Intelligent Technology non-state-ow 1.72% 26,628,340 26,628,340 Pledge 22,110,216 R & D Center ned legal (Limited Partnership) person Shareholdings of the top 10 shareholders with unlimited sales Types of shares Name of shareholder Number of shares with unlimited sales held Types of shares Quantity RMB common Tang Zhuomian 135,885,134 135,885,134 stock RMB common Tang Zhuolin 67,684,392 67,684,392 stock RMB common Ruan Huili 45,087,232 45,087,232 stock Construction Investment Investment RMB common 39,215,685 39,215,685 Co., Ltd. stock Luzhou Industrial Investment Group RMB common 31,770,010 31,770,010 Co., Ltd. stock Huarong Securities-China Merchants Securities-Huarong RMB common 31,372,549 31,372,549 Youzhi No. 1 Collective Asset stock Management Plan Sheng Ji Equity Investment Fund RMB common 19,607,843 19,607,843 (Shanghai) Co., Ltd. stock RMB common Ruan Weixing 14,704,108 14,704,108 stock RMB common Liang Tongcan 11,000,000 11,000,000 stock Hong Kong Securities Clearing 10,871,293 RMB common 10,871,293 7 Guangdong Dongfang Precision Science & Technology Co., Ltd. Q1 2020 Report Company Limited stock Mr. Tang Zhuolin and Mr. Tang Zhuomian are brothers. On August 18, 2010, the two signed a "Consistent Action Agreement."Pulead Technology Industry Co.,Ltd. and Qinghai Puren Explanation of the relationship or Intelligent Technology R & D Center (Limited Partnership) belongs to the consistent actionist concerted action of the aforesaid relationship. Beijing Automotive Group Industry Investment Co.,Ltd. and Beiqi Foton Motor shareholders Co., Ltd. belongs to the consistent actionist relationship.The company is not aware of whether there is an associated relationship or a concerted action other aforesaid shareholders. Explanation of the top 10 common stock shareholders' participation in None. financing and securities lending business (if any) Whether the top 10 ordinary shareholders of the company and the top 10 ordinary shareholders of unrestricted shares in the report period conducted agreed repurchase transactions □ Yes √ No The top 10 common stock shareholders of the company and the top 10 common stock shareholders with unrestricted sales conditions did not engage in agreed buyback transactions during the reporting period. 2. The total number of preferred shareholders of the company and the top 10 preferred shareholders □ Applicable √ Not applicable 8 Guangdong Dongfang Precision Science & Technology Co., Ltd. Q1 2020 Report Section 3 Important matters I. The main financial data and financial indicators during the reporting period have changed and the reasons √ Applicable □ Not applicable Unit: yuan 1.Balance sheet items Ending Opening Change Sheet items Change amount Explanation of the reason for the change balance Balance rate -46.30% Mainly due to the recovery of due wealth Trading financial assets 625,117,440.46 1,164,039,381.59 -538,921,941.13 management products. -39.10% Mainly due to the maturity of some bank Receivable financing 33,766,966.67 55,447,099.32 -21,680,132.65 acceptance bills. Prepayments 34,587,322.69 25,901,123.85 8,686,198.84 33.54% Mainly due to increased procurement. 426.61% Mainly due to the prepayment of corporate income Other current assets 117,677,005.17 22,346,314.29 95,330,690.88 tax, it will be refunded after the completion of the corporate income tax settlement. Short-term loan 75,568,139.52 117,888,353.14 -42,320,213.62 -35.90% Mainly due to loan repayment. Bills payable 60,169,018.21 43,973,859.51 16,195,158.70 36.83% Mainly due to increased procurement. Non-current liabilities due within 34.19% Mainly due to reclassification of long-term loans 474,214,939.69 353,399,238.29 120,815,701.40 one year due within one year. Long-term loan 32,406,010.94 224,146,667.48 -191,740,656.54 -85.54% Mainly due to reclassification of long-term loans 9 Guangdong Dongfang Precision Science & Technology Co., Ltd. Q1 2020 Report due within one year. 2.Income statement items This period Previous period Change Sheet items (January to (January to Change amount Explanation of the reason for the change ratio March 2020) March 2019) The main reason is that the scope of consolidated Operating income 618,374,944.67 1,199,609,998.96 -581,235,054.29 -48.45% statements for the same period last year contains Pride's January-March 2019 data. The main reason is that the scope of consolidated Operating cost 457,636,080.05 992,610,812.80 -534,974,732.75 -53.90% statements for the same period last year contains Pride's January-March 2019 data. The main reason is that the scope of consolidated Management fees 55,671,100.82 74,708,510.39 -19,037,409.57 -25.48% statements for the same period last year contains Pride's January-March 2019 data. The main reason is that the scope of consolidated R&D expenses 13,749,361.22 26,167,032.77 -12,417,671.55 -47.46% statements for the same period last year contains Pride's January-March 2019 data. The main reason is that the scope of consolidated Financial expenses 3,624,557.98 10,543,314.24 -6,918,756.26 -65.62% statements for the same period last year contains Pride's January-March 2019 data. The main reason is that the scope of consolidated Income tax expense 15,109,392.60 22,903,255.15 -7,793,862.55 -34.03% statements for the same period last year contains Pride's January-March 2019 data. 10 Guangdong Dongfang Precision Science & Technology Co., Ltd. Q1 2020 Report 3.Cash flow statement items This period Previous period Change Sheet items (January to (January to Change amount Explanation of the reason for the change ratio March 2020) March 2019) The main reason is that the scope of consolidated Net cash flow from operating -85,471,622.64 419,627,201.97 -505,098,824.61 -120.37% statements for the same period last year contains activities Pride's January-March 2019 data. The main reason is that the scope of consolidated Net cash flows from investing 485,264,213.23 -953,714,856.61 1,438,979,069.84 -150.88% statements for the same period last year contains activities Pride's January-March 2019 data. This is mainly due to the fact that the scope of the consolidated statement for the same period last Net cash flow from financing year contains Pride's data for January-March 2019, -92,031,901.83 -140,352,574.44 48,320,672.61 -34.43% activities and that the company implemented its own funds to buy back shares during the same period last year. 11 Guangdong Dongfang Precision Science & Technology Co., Ltd. Q1 2020 Report II. Analysis of the progress of important matters, their impact and solutions √ Applicable □ Not applicable 1. Overview of the company's overall operations in the first quarter of 2020 In the first quarter of 2020, the occurrence of a new coronavirus pneumonia outbreak had a negative impact on the health and safety of the people across the country and the normal development of economic activities in all aspects of society. Under the strong leadership of the Party and the government, Dongfang Precision actively deployed the epidemic prevention and control work, and worked together with all walks of life and the people of the country to fight the epidemic together. Under the premise of doing a good job in epidemic prevention and control and ensuring the safety of all employees, the company actively promotes the resumption of work and production in accordance with the overall arrangement of governments at all levels. During the reporting period, the overall main business maintained a relatively stable trend, and there was no significant change in main business income due to the epidemic. The epidemic has only a short-term, temporary impact on the normal business activities of the company's domestic business entities, mainly due to the delay in resumption of work compared with previous years, the temporary delay in procurement and supply, and the temporary obstruction of marketing services due to inconvenient transportation. The above factors have little impact on the normal operations of business entities in various countries in the first quarter of 2020. In the first quarter of 2020, within the scope authorized by the board of directors, the investment income obtained by the company using idle self-owned funds to purchase wealth management products increased significantly year-on-year, which had a positive impact on the company's overall profit and loss in the first quarter of 2020. 2. Summary of the progress of the company's major events in the first quarter of 2020 (1) Launch the 2020 restricted stock incentive plan In order to improve the company's long-term incentive mechanism, fully mobilize the enthusiasm of the company's management personnel and core backbones at all levels, effectively promote the company's long-term development, and achieve the purpose of "stabilizing the team, invigorating morale, gathering talents, and improving performance", in the first quarter of 2020 the company launched restricted stock incentive plan, using 27 million A shares of common stock repurchased by the company from the secondary market as incentive shares, of which 22.85 million shares were granted for the first time, accounting for 1.48% of the total share capital; 4.15 million shares were reserved, accounting for 0.27% of the total share capital, and the reserved portion accounted for 15.37% of the total equity granted this time. The grant price of restricted stock is 1 yuan / share. The total number of incentive objects granted for the first time is 42 persons, which are the directors, senior management personnel and core technical (business) personnel who served in the company (including subsidiaries, same as below) when the company announced this incentive plan. The 2020 Restricted Stock Incentive Plan has been reviewed and approved by the 43rd (Interim) Meeting of the 3rd Board of Directors of the Company and the 1st Extraordinary General Meeting of Shareholders held on March 11, 2020 and March 27, 2020 . The company held the forty-fourth (interim) meeting of the third session of the Board of Directors on March 27, 2020, and reviewed and approved the Proposal on Granting Restricted Stocks to Incentives on March 27. (2) The investment project of the non-public offering of funds raised in 2017 is terminated and the surplus funds are permanently replenished The company's original planned investment project of “Pride Liyang Base New Energy Automobile Battery R & D and Industrialization Project” in 2017 by the non-public offering of shares to raise supporting funds, as the company transferred 100% equity of Pride, no longer has any level of relationship with Dongfang Precision, and the continued 12 Guangdong Dongfang Precision Science & Technology Co., Ltd. Q1 2020 Report implementation of the fundraising project no longer has any commercial rationality and feasibility. In view of this, the investment project of the non-public offering of funds raised in 2017 has in fact been automatically terminated at the end of 2019 when the company's sale of Pride's equity was completed. In view of the fact that the non-public offering of funds raised in 2017 has been terminated, in order to effectively use funds to optimize resource allocation, enlarge and strengthen the main business of listed companies, enhance the value creation capabilities of listed companies and create more value for shareholders, the company decided to use the surplus raised funds of approximately 1.10779 billion to permanently supplement working capital. This matter has been reviewed and approved by the 2020 First Extraordinary General Meeting of Shareholders held on March 27, 2020. (3) Revision of the articles of company Based on the changes in the company's actual situation (such as total share capital, etc.), as well as the revision of the higher-level laws such as the "Company Law" and "Listed Company Governance Guidelines" from 2018 to 2019, combined with the actual needs of the company, promoting the creation of a relatively stable internal and external development environment of the company allows the company to focus on the development of its main business of “high-end intelligent equipment”. The Company's 43rd (Interim) Meeting of the 3rd Board of Directors and the 1st Extraordinary General Meeting of Shareholders held on March 11, 2020 and March 27, 2020 respectively reviewed and approved the motion on "Revision of". Interim report disclosure website query Overview of important matters Disclosure date index "Restrictive Stock Incentive Plan 2020 (Draft)" and its March 12, 2020 http://www.cninfo.com.cn summary "Announcement on Granting Restricted Stocks to March 28, 2020 http://www.cninfo.com.cn Incentives" "Announcement on the Termination of the Fund-raising Investment Project and the Permanent Replenishment of March 12, 2020 http://www.cninfo.com.cn the Raised Funds to Replenish the Working Capital" "Announcement on Amending the Articles of Company" March 12, 2020 http://www.cninfo.com.cn Implementation progress of share repurchase □ Applicable √ Not applicable Progress in the implementation of centralized bidding to reduce holdings of repurchased shares □ Applicable √ Not applicable III. The actual controllers, shareholders, related parties, purchasers and the company's commitments related to the company's commitments that were not fulfilled during the reporting period □ Applicable √ Not applicable During the reporting period of the company, there were no actual commitments of the company's actual controllers, shareholders, related parties, purchasers, companies, and other related parties that failed to fulfill their commitments during the reporting period. 13 Guangdong Dongfang Precision Science & Technology Co., Ltd. Q1 2020 Report IV. Securities investment □ Applicable √ Not applicable There were no securities investments in the company during the reporting period. V. Entrusted financial management √ Applicable □ Not applicable Unit: ten thousand yuan Source of funds for Entrusted financial Overdue amount not Specific type Outstanding balance entrusted financing management recovered Bank wealth Own funds 167,300 48,300 0 management products Bank wealth Funds raised 65,000 15,000 0 management products In total 232,300 63,300 0 The specific situation of high-risk entrusted financial management with large single amount or low security, poor liquidity and non-guaranteed capital □ Applicable √ Not applicable The entrusted financial management has expected that the principal cannot be recovered or there are other situations that may cause impairment □ Applicable √ Not applicable VI. Derivatives investment □ Applicable √ Not applicable There was no derivative investment during the reporting period. VII. External guarantees in violation of regulations □ Applicable √ Not applicable During the reporting period, the company had no violations of external guarantees. 14 Guangdong Dongfang Precision Science & Technology Co., Ltd. Q1 2020 Report VIII. Non-operating capital occupation of listed companies by controlling shareholders and their related parties □ Applicable √ Not applicable During the reporting period of the company, there was no non-operating capital occupation of the listed company by the controlling shareholder and its related parties. IX. Registration form for reception of research, communication, interviews and other activities during the reporting period □ Applicable √ Not applicable During the reporting period, the company did not receive reception research, communication, interviews and other activities. 15 Guangdong Dongfang Precision Science & Technology Co., Ltd. Q1 2020 Report Section 4 Financial Statements I. Financial Statements 1. Consolidated balance sheet Prepared by: Guangdong Dongfang Precision aScience&Technology Co., Ltd. March 31, 2020 Unit: yuan Item March 31, 2020 December 31, 2019 Current assets: Money funds 2,655,577,430.72 2,356,703,434.60 Settlement provisions Dismantling funds Trading financial assets 625,117,440.46 1,164,039,381.59 Derivative financial assets Bill receivable Accounts receivable 673,374,745.46 597,431,210.02 Receivable financing 33,766,966.67 55,447,099.32 Prepayments 34,587,322.69 25,901,123.85 Premium receivable Receivable reinsurance account Provision for reinsurance contract receivable Other receivables 89,605,064.33 79,573,114.49 Among them: interest receivable 13,401,884.49 721,935.36 Dividend receivable Buy back resale financial assets 16 Guangdong Dongfang Precision Science & Technology Co., Ltd. Q1 2020 Report Stock 760,559,444.35 671,432,701.11 Contract assets Holding assets for sale Non-current assets due within one year 356,983.48 Other current assets 117,677,005.17 22,346,314.29 Total current assets 4,990,265,419.85 4,973,231,362.75 Non-current assets: Loans and advances Debt investment Other debt investments Long-term receivables Long-term equity investment 72,375,114.41 72,372,355.03 Investment in other equity instruments Other non-current financial assets 16,548,312.44 20,559,159.34 Investment real estate Fixed assets 575,909,823.91 585,754,900.75 Construction in progress 4,530,801.79 4,839,241.48 Productive biological assets Oil and gas asset Right-of-use asset Intangible assets 314,561,462.16 249,882,429.53 Development expenditure Goodwill 329,151,254.50 306,633,631.93 Long-term prepaid expenses 8,769,493.33 8,699,236.33 Deferred tax assets 52,893,166.43 49,025,021.61 Other non-current assets 2,532,183.06 2,518,818.56 Total non-current assets 1,377,271,612.03 1,300,284,794.56 Total assets 6,367,537,031.88 6,273,516,157.31 Current liabilities: 17 Guangdong Dongfang Precision Science & Technology Co., Ltd. Q1 2020 Report Short-term loan 75,568,139.52 117,888,353.14 Borrowing from the Central Bank Borrowed funds Transactional financial liabilities Derivative financial liabilities Bills payable 60,169,018.21 43,973,859.51 Accounts payable 548,347,360.71 472,862,744.45 Advance payment 336,881,113.13 286,511,724.62 Contract liabilities Selling back financial assets Deposits and Interbank deposit Agent trading securities Agent underwriting securities Staff payable 111,654,441.27 106,677,329.95 Taxes payable 56,773,113.39 48,928,229.51 Other payables 76,911,742.74 90,950,443.16 Of which: interest payable 1,513,311.86 1,410,745.58 Dividend payable Fees and commissions Reinsurance accounts payable Holding liabilities for sale Non-current liabilities due within one 474,214,939.69 353,399,238.29 year Other current liabilities Total current liabilities 1,740,519,868.66 1,521,191,922.63 Non-current liabilities: Insurance contract reserve Long term loan 32,406,010.94 224,146,667.48 Bonds payable 18 Guangdong Dongfang Precision Science & Technology Co., Ltd. Q1 2020 Report Of which: preferred stock Perpetual debt Lease liability Long-term payables Long-term payable employee 16,796,539.98 12,252,657.36 compensation Estimated liabilities 96,931,864.44 78,650,466.48 Deferred income 17,922,228.74 18,275,808.90 Deferred income tax liabilities 15,186,840.20 16,915,692.91 Other non-current liabilities Total non-current liabilities 179,243,484.30 350,241,293.13 Total Liabilities 1,919,763,352.96 1,871,433,215.76 Owners' equity: Share capital 1,545,126,957.00 1,838,647,096.00 Other equity instruments Of which: preferred stock Perpetual debt Capital reserve 4,155,897,976.84 3,862,377,838.84 Minus: treasury shares 160,088,925.60 160,088,925.60 Other comprehensive income 24,783,210.01 24,971,085.32 Special reserves Surplus reserve 51,830,974.45 51,830,974.45 General risk preparation Undistributed profit -1,233,182,083.37 -1,280,673,461.14 Total equity attributable to owners of 4,384,368,109.33 4,337,064,607.87 parent company Minority shareholder interest 63,405,569.59 65,018,333.68 Total owner's equity 4,447,773,678.92 4,402,082,941.55 Total Liabilities and Owner's Equity 6,367,537,031.88 6,273,516,157.31 19 Guangdong Dongfang Precision Science & Technology Co., Ltd. Q1 2020 Report Legal representative: Tang Zhuolin Chief in charge of accounting work: Qiu Yezhi Head of accounting institution: Qiu Yezhi 2. Parent Company Balance Sheet Unit: yuan Item March 31, 2020 December 31, 2019 Current assets: Money funds 2,287,934,652.30 1,899,380,375.38 Settlement provisions 614,797,561.65 1,163,000,000.00 Derivative financial assets. Notes receivable. Accounts receivable. 155,333,368.60 151,096,214.10 Receivable financing. 26,843,377.48 51,139,322.12 Advance payment. 6,342,475.76 3,233,763.27 Other receivables. 139,739,058.62 36,670,496.12 Among them: interest receivable. Dividend receivable. Inventory. 121,497,216.14 111,225,290.10 Contract assets. Hold assets for sale. Non current assets due within one year. 356,983.48 Other current assets. 111,430.05 4,961,417.06 Total current assets. 3,352,599,140.60 3,421,063,861.63 Non-current assets: Debt investment. Other creditor's rights investment. Long-term receivables. Long-term equity investment. 439,644,635.72 439,638,782.00 Investment in other equity instruments. 20 Guangdong Dongfang Precision Science & Technology Co., Ltd. Q1 2020 Report Other illiquid financial assets. Investment real estate. Fixed assets. 334,765,818.28 340,791,611.76 Project under construction. 106,248.16 83,070.80 Productive biological assets. Oil and gas assets. Right to use assets. Intangible assets. 60,378,747.78 60,733,612.10 Development expenditure. goodwill. Long-term prepaid expenses. 3,300,976.43 3,335,014.92 Deferred income tax assets. 4,923,465.18 4,923,465.18 Other non-current assets. 585,189.00 585,189.00 Total non-current assets. 843,705,080.55 850,090,745.76 Total assets. 4,196,304,221.15 4,271,154,607.39 Current liabilities: Short-term loan. 90,000,000.00 Transactional financial liabilities. Derivative financial liabilities. Notes payable. 54,311,385.48 43,843,859.51 Accounts payable. 42,861,601.13 70,687,704.41 Advance payment. 31,445,797.73 17,451,789.10 Contractual liability. Salary payable to staff and workers. 23,048,395.99 26,144,254.56 Taxes payable. 6,468,515.35 1,921,575.57 Other payables. 44,781,046.66 50,214,415.95 Among them: interest payable. Dividend payable. Hold unsold liabilities. 21 Guangdong Dongfang Precision Science & Technology Co., Ltd. Q1 2020 Report Non-current liabilities due within one year. Other current liabilities. Total current liabilities. 202,916,742.34 300,263,599.10 Non-current liabilities: Long-term loan. Bonds payable. Among them: preferred stock. Perpetual debt. Lease liability. Long-term payable. Long-term salary payable to staff and workers. Estimated liability. Deferred return. 14,144,466.66 14,423,631.66 Deferred income tax liability. Other non-current liabilities. Total non-current liabilities. 14,144,466.66 14,423,631.66 Total liabilities. 217,061,209.00 314,687,230.76 Owner's equity: Capital stock. 1,545,126,957.00 1,838,647,096.00 Other equity instruments. Among them: preferred stock. Perpetual debt. Capital reserve. 3,902,111,740.42 3,608,591,602.42 Minus: inventory stock. 160,088,925.60 160,088,925.60 Other comprehensive income. Special reserve. Surplus reserve. 51,830,974.45 51,830,974.45 22 Guangdong Dongfang Precision Science & Technology Co., Ltd. Q1 2020 Report Undistributed profit. -1,359,737,734.12 -1,382,513,370.64 Total owner's equity. 3,979,243,012.15 3,956,467,376.63 Total liabilities and owners' equity 4,196,304,221.15 4,271,154,607.39 3. Consolidated Income Statement Unit: yuan The occurrence amount of the previous Item Current occurrence amount. period 1 Total operating income 618,374,944.67 1,199,609,998.96 Of which: operating income 618,374,944.67 1,199,609,998.96 Interest income Premiums earned Fee and commission income 2. Total operating cost 581,488,481.66 1,152,880,053.50 Among them: operating cost. 457,636,080.05 992,610,812.80 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. 3,914,520.73 3,818,024.80 Selling expenses. 46,892,860.86 45,032,358.50 Administrative expenses. 55,671,100.82 74,708,510.39 Research and development expenses. 13,749,361.22 26,167,032.77 Financial expenses. 3,624,557.98 10,543,314.24 Among them: interest expense. 4,578,253.59 13,397,170.73 23 Guangdong Dongfang Precision Science & Technology Co., Ltd. Q1 2020 Report Interest income. 5,541,448.43 9,974,322.98 Plus: other income. 548,066.08 1,432,189.66 Investment income (loss with "-" sign). 21,624,480.68 3,533,941.09 Among them: the return on investment in 5,853.72 877,146.30 collaborative ventures and joint ventures. Termination of recognition of income from financial assets measured at amortized cost. Exchange gain (loss with "-" sign). Net exposure hedging gain (loss with "-" sign). Fair value change income (loss with "-" 1,514,846.98 sign). Loss of credit impairment (loss is listed with "-" sign). Loss on impairment of assets (loss with -1,594,314.49 -653,989.02 "-" sign). Income from asset disposal (loss with "-" 36,851.42 sign). 3 Operating profit (losses are listed with 58,979,542.26 51,078,938.61 "-" sign). Plus: non-operating income. 2,379,749.43 799,361.91 Minus: non-operating expenses. 371,285.41 1,652,114.06 4 The total profit (the total loss shall be 60,988,006.28 50,226,186.46 filled in with the sign "-"). Minus: income tax expenses. 15,109,392.60 22,903,255.15 5. Net profit (net loss is listed with "-" 45,878,613.68 27,322,931.31 sign). (1) Classified by business sustainability. 24 Guangdong Dongfang Precision Science & Technology Co., Ltd. Q1 2020 Report 1. Net profit from continuing operations 45,878,613.68 27,322,931.31 (net loss with "-" sign). 2.Net profit from termination of operation (net loss with "-" sign). (2)Classification according to ownership. 1.Net profit attributable to the owner of 47,491,377.77 26,225,836.51 the parent company. 2.Minority shareholders' profit and loss. -1,612,764.09 1,097,094.80 6 Net after tax of other comprehensive -187,875.31 -8,376,849.01 income. Net after tax of other comprehensive income attributable to the owner of the -187,875.31 -8,377,294.20 parent company. (1) Other comprehensive income that -615,279.19 cannot be reclassified into profit or loss. 1. Re-measure the change in the benefit -615,279.19 plan. 2 Other comprehensive income that cannot be transferred to profit or loss under the equity method. 3. Changes in fair value of investments in other equity instruments. 4. Fair value change of enterprise's own credit risk. 5.Other. (2) Other comprehensive income -187,875.31 -7,762,015.01 reclassified into profit or loss. 1. Other comprehensive income that can be transferred to profit or loss under the 25 Guangdong Dongfang Precision Science & Technology Co., Ltd. Q1 2020 Report equity method. 2.Changes in fair value of other creditor's rights investments. 3.The amount of financial assets reclassified to other comprehensive income. 4.Provision for credit impairment of other creditor's rights investment. 5.Cash flow hedging reserve. -1,590,667.99 6.Translation difference of foreign -187,875.31 -6,171,347.02 currency financial statements. 7.Other. Net after tax of other consolidated income attributable to minority 445.19 shareholders. 7 Total comprehensive income. 45,690,738.37 18,946,082.30 Total consolidated income attributable to 47,303,502.46 17,848,542.31 the owner of the parent company. Total consolidated income attributable to -1,612,764.09 1,097,539.99 minority shareholders. 8. Earnings per share: (1) Basic earnings per share. 0.03 0.01 (2) Diluted earnings per share 0.03 0.01 In the case of a business merger under the same control in the current period, the net profit realized by the merged party before the merger is: yuan, and the net profit realized by the merged party in the previous period is: yuan. Legal representative: Tang Zhuolin Chief in charge of accounting work: Qiu Yezhi Head of accounting institution: Qiu Yezhi 4. Parent company profit statement Unit: yuan Item Current occurrence amount. The occurrence amount of the previous 26 Guangdong Dongfang Precision Science & Technology Co., Ltd. Q1 2020 Report period I. Business income. 62,887,114.38 68,814,402.33 Minus: operating cost. 37,107,803.20 47,277,204.62 Taxes and surcharges. 3,010,272.32 2,388,328.74 Selling expenses. 5,190,034.53 4,451,112.02 Administrative expenses. 12,720,151.52 19,302,391.12 Research and development expenses. 4,486,308.96 2,384,477.64 Financial expenses. -841,953.60 -2,055,941.98 Among them: interest expense. 1,200,483.33 1,497,825.01 Interest income. 4,074,411.00 7,683,073.12 Plus: other income. 279,165.00 959,165.00 Investment income (loss with "-" sign). 21,579,176.54 3,206,549.49 Among them: the return on investment in joint ventures and combined 5,853.72 550,566.03 ventures. Termination of recognition of gains on financial assets measured at amortised cost (loss with "-" sign). Net exposure hedging gain (loss with "-" sign). Fair value change income (loss with "-" 1,797,561.40 sign). Loss of credit impairment (loss is listed with "-" sign). Loss on impairment of assets (loss with "-" sign). Income from asset disposal (loss with "-" sign). 2. Operating profit (loss shall be listed 24,870,400.39 -767,455.34 with "-" sign). Plus: non-operating income. 2,243,761.00 7,081.21 Minus: non-operating expenses. 316,600.00 123,933.13 3. The total profit (the total loss shall be 26,797,561.39 -884,307.26 filled in with the sign "-"). Minus: income tax expenses. 4,021,924.87 16,786.67 4. Net profit (net loss is listed with "-" 22,775,636.52 -901,093.93 sign). 27 Guangdong Dongfang Precision Science & Technology Co., Ltd. Q1 2020 Report (1) Net profit from continuing operation (net loss with "-" sign). (2) Net profit from termination of operation (net loss with "-" sign). 5. Net after tax of other comprehensive income. (1) Other comprehensive income that cannot be reclassified into profit or loss. 1. Re-measure the change in the benefit plan. 2 Other comprehensive income that cannot be transferred to profit or loss under the equity method. 3. Changes in fair value of investments in other equity instruments. 4. Fair value change of enterprise's own credit risk. 5. Other. (2) Other comprehensive income reclassified into profit or loss. 1. Other comprehensive income that can be transferred to profit or loss under the equity method. 2 Changes in fair value of other creditor's rights investments. 3.The amount of financial assets reclassified to other comprehensive income. 4.Provision for credit impairment of other creditor's rights investment. 5.Cash flow hedging reserve. 6.Conversion difference of foreign currency financial statements. 7.Other 6. Total comprehensive income. 22,775,636.52 -901,093.93 7. Earnings per share: (1) Basic earnings per share. (2) Diluted earnings per share 28 Guangdong Dongfang Precision Science & Technology Co., Ltd. Q1 2020 Report 5.Consolidated statement of cash flows Unit: yuan The occurrence amount of the previous Item Current occurrence amount. period 1 Cash flow generated by business activities: Cash received from the sale of goods 695,219,287.09 2,589,521,846.32 and the provision 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. Tax refund received. 10,664,890.52 12,253,710.66 Receipt of other cash related to business 13,948,141.53 17,676,031.71 29 Guangdong Dongfang Precision Science & Technology Co., Ltd. Q1 2020 Report activities. Subtotal cash inflows from operating 719,832,319.14 2,619,451,588.69 activities. Cash paid for the purchase of goods and 536,072,255.86 1,657,037,695.71 services. Net increase in customer loans and advances. Net increase in central bank and interbank deposits. 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 paid to and for employees. 55,012,239.65 159,977,929.19 Taxes and fees paid. 16,347,988.73 314,173,332.24 Payment of other cash related to 197,871,457.54 68,635,429.58 business activities. Subtotal cash outflow from operating 805,303,941.78 2,199,824,386.72 activities. Net cash flow from operating activities. -85,471,622.64 419,627,201.97 2. Cash flow generated by investment activities: Recover the cash received from the investment. Cash received from investment income. 2,655,983.46 Net cash recovered from disposal of 63,805.26 30 Guangdong Dongfang Precision Science & Technology Co., Ltd. Q1 2020 Report fixed assets, intangible assets and other long-term assets. Disposal of net cash received by subsidiaries and other business units. Receipt of other cash related to 593,724,030.96 280,400,666.67 investment activities. Subtotal cash inflows from investment 593,724,030.96 283,120,455.39 activities. Cash paid for the purchase and construction of fixed assets, intangible 74,459,817.73 11,780,285.08 assets and other long-term assets. Cash paid for investment. Net increase in pledged loans. Obtain net cash paid by subsidiaries and other business units. Payment of other cash related to 34,000,000.00 1,225,055,026.92 investment activities. Subtotal cash outflow from investment 108,459,817.73 1,236,835,312.00 activities. Net cash flow from investment 485,264,213.23 -953,714,856.61 activities. 3 Cash flow generated by fund-raising activities: Absorb the cash received by the investment. Among them: the subsidiary absorbs the cash received from the investment of minority shareholders. Cash received for obtaining loans. 71,352,693.86 21,558,182.17 31 Guangdong Dongfang Precision Science & Technology Co., Ltd. Q1 2020 Report Receipt of other cash related to fund-raising activities. Subtotal cash inflows from fund-raising 71,352,693.86 21,558,182.17 activities. Cash paid to repay debts. 158,504,233.87 83,635,533.03 Cash paid for the distribution of 4,553,361.82 4,233,859.20 dividends, profits, or interest payments. Among them: dividends and profits paid by subsidiaries to minority shareholders. Payment of other cash related to 327,000.00 74,041,364.38 fund-raising activities. Subtotal cash outflow from fund-raising 163,384,595.69 161,910,756.61 activities. Net cash flow from fund-raising -92,031,901.83 -140,352,574.44 activities. 4 The impact of exchange rate changes 2,796,271.09 -12,740,459.76 on cash and cash equivalents. 5 net increase in cash and cash 310,556,959.85 -687,180,688.84 equivalents. Plus: balance of cash and cash equivalents at the beginning of the 2,312,190,271.56 2,057,997,442.35 period. 6 Balance of cash and cash equivalents 2,622,747,231.41 1,370,816,753.51 at the end of the period 6.Parent company cash flow statement Unit: yuan The occurrence amount of the previous Item Current occurrence amount. period 32 Guangdong Dongfang Precision Science & Technology Co., Ltd. Q1 2020 Report 1. Cash flow generated by business activities: Cash received from the sale of goods 97,293,624.68 108,030,115.83 and the provision of services. Tax refund received. 2,998,393.83 5,625,311.50 Receipt of other cash related to business 12,528,235.40 4,355,488.72 activities. Subtotal cash inflows from operating 112,820,253.91 118,010,916.05 activities. Cash paid for the purchase of goods and 61,587,839.41 65,526,119.93 services. Cash paid to and for employees. 20,666,974.47 18,246,855.74 Taxes and fees paid. 3,753,566.40 2,157,584.77 Payment of other cash related to 103,647,802.56 6,914,608.77 business activities. Subtotal cash outflow from operating 189,656,182.84 92,845,169.21 activities. Net cash flow from operating activities. -76,835,928.93 25,165,746.84 2. Cash flow generated by investment activities: Recover the cash received from the investment. Cash received from investment income. 2,655,983.46 Net cash recovered from disposal of fixed assets, intangible assets and other long-term assets. Disposal of net cash received by subsidiaries and other business units. Receipt of other cash related to 569,686,288.46 230,200,000.00 33 Guangdong Dongfang Precision Science & Technology Co., Ltd. Q1 2020 Report investment activities. Subtotal cash inflows from investment 569,686,288.46 232,855,983.46 activities. Cash paid for the purchase and construction of fixed assets, intangible 1,080,828.80 4,076,013.51 assets and other long-term assets. Cash paid for investment. Obtain net cash paid by subsidiaries and other business units. Payment of other cash related to 770,000,000.00 investment activities. Subtotal cash outflow from investment 1,080,828.80 774,076,013.51 activities. Net cash flow from investment 568,605,459.66 -541,220,030.05 activities. 3. Cash flow generated by fund-raising activities: Absorb the cash received by the investment. Cash received for obtaining loans. Receipt of other cash related to fund-raising activities. Subtotal cash inflows from fund-raising activities. Cash paid to repay debts. 90,000,000.00 50,000,000.00 Cash paid for the distribution of 1,075,452.00 1,256,935.00 dividends, profits, or interest payments. Payment of other cash related to 327,000.00 74,041,364.38 fund-raising activities. 34 Guangdong Dongfang Precision Science & Technology Co., Ltd. Q1 2020 Report Subtotal cash outflow from fund-raising 91,402,452.00 125,298,299.38 activities. Net cash flow from fund-raising -91,402,452.00 -125,298,299.38 activities. 4. The impact of exchange rate changes -443,605.26 on cash and cash equivalents. 5.Net increase in cash and cash 399,923,473.47 -641,352,582.59 equivalents. Plus: balance of cash and cash equivalents at the beginning of the 1,770,491,895.62 1,432,283,149.36 period. 6. Balance of cash and cash equivalents 2,170,415,369.09 790,930,566.77 at the end of the period II. Explanation of the adjustment of financial statements 1. For the first time since 2020, the implementation of the new income standard and the new leasing standard will be adjusted for the first implementation of the financial statements at the beginning of the year. √ Applicable □ Not applicable Consolidated balance sheet Unit: yuan Item December 31, 2019 January 1, 2020 Adjust integer Current assets: Money funds 2,356,703,434.60 2,356,703,434.60 Trading financial assets 1,164,039,381.59 1,164,039,381.59 Accounts receivable 597,431,210.02 597,431,210.02 Receivable financing 55,447,099.32 55,447,099.32 Prepayments 25,901,123.85 25,901,123.85 35 Guangdong Dongfang Precision Science & Technology Co., Ltd. Q1 2020 Report Other receivables 79,573,114.49 79,573,114.49 Among them: interest 721,935.36 721,935.36 receivable Stock 671,432,701.11 671,432,701.11 Non-current assets due 356,983.48 356,983.48 within one year Other current assets 22,346,314.29 22,346,314.29 Total current assets 4,973,231,362.75 4,973,231,362.75 Non-current assets: Long-term equity investment 72,372,355.03 72,372,355.03 Other non-current financial 20,559,159.34 20,559,159.34 assets Fixed assets 585,754,900.75 585,754,900.75 Construction in progress 4,839,241.48 4,839,241.48 Intangible assets 249,882,429.53 249,882,429.53 Goodwill 306,633,631.93 306,633,631.93 Long-term prepaid expenses 8,699,236.33 8,699,236.33 Deferred tax assets 49,025,021.61 49,025,021.61 Other non-current assets 2,518,818.56 2,518,818.56 Total non-current assets 1,300,284,794.56 1,300,284,794.56 Total assets 6,273,516,157.31 6,273,516,157.31 Current liabilities: Short-term loan 117,888,353.14 117,888,353.14 Bills payable 43,973,859.51 43,973,859.51 Accounts payable 472,862,744.45 472,862,744.45 Advance payment 286,511,724.62 286,511,724.62 Staff payable 106,677,329.95 106,677,329.95 Taxes payable 48,928,229.51 48,928,229.51 Other payables 90,950,443.16 90,950,443.16 Of which: interest payable 1,410,745.58 1,410,745.58 36 Guangdong Dongfang Precision Science & Technology Co., Ltd. Q1 2020 Report Non-current liabilities due 353,399,238.29 353,399,238.29 within one year Total current liabilities 1,521,191,922.63 1,521,191,922.63 Non-current liabilities: Long term loan 224,146,667.48 224,146,667.48 Long-term payable employee 12,252,657.36 12,252,657.36 compensation Estimated liabilities 78,650,466.48 78,650,466.48 Deferred income 18,275,808.90 18,275,808.90 Deferred income tax 16,915,692.91 16,915,692.91 liabilities Total non-current liabilities 350,241,293.13 350,241,293.13 Total Liabilities 1,871,433,215.76 1,871,433,215.76 Owners' equity: Share capital 1,838,647,096.00 1,838,647,096.00 Capital reserve 3,862,377,838.84 3,862,377,838.84 Minus: treasury shares 160,088,925.60 160,088,925.60 Other comprehensive income 24,971,085.32 24,971,085.32 Surplus reserve 51,830,974.45 51,830,974.45 Undistributed profit -1,280,673,461.14 -1,280,673,461.14 Total equity attributable to 4,337,064,607.87 4,337,064,607.87 owners of parent company Minority shareholder interest 65,018,333.68 65,018,333.68 Total owner's equity 4,402,082,941.55 4,402,082,941.55 Total Liabilities and Owner's 6,273,516,157.31 6,273,516,157.31 Equity Adjustment description. 37 Guangdong Dongfang Precision Science & Technology Co., Ltd. Q1 2020 Report Parent company balance sheet Unit: yuan Item December 31, 2019 January 1, 2020 Adjust integer Current assets: Monetary fund. 1,899,380,375.38 1,899,380,375.38 Transactional financial 1,163,000,000.00 1,163,000,000.00 assets. Accounts receivable. 151,096,214.10 151,096,214.10 Receivable financing. 51,139,322.12 51,139,322.12 Advance payment. 3,233,763.27 3,233,763.27 Other receivables. 36,670,496.12 36,670,496.12 Inventory. 111,225,290.10 111,225,290.10 Non current assets due within 356,983.48 356,983.48 one year. Other current assets. 4,961,417.06 4,961,417.06 Total current assets. 3,421,063,861.63 3,421,063,861.63 Non-current assets: Long-term equity investmen 439,638,782.00 439,638,782.00 Fixed assets. 340,791,611.76 340,791,611.76 Project under construction. 83,070.80 83,070.80 Intangible assets. 60,733,612.10 60,733,612.10 Long-term prepaid expenses. 3,335,014.92 3,335,014.92 Deferred income tax assets. 4,923,465.18 4,923,465.18 Other non-current assets. 585,189.00 585,189.00 Total non-current assets. 850,090,745.76 850,090,745.76 Total assets. 4,271,154,607.39 4,271,154,607.39 Current liabilities: Short-term loan. 90,000,000.00 90,000,000.00 Notes payable. 43,843,859.51 43,843,859.51 38 Guangdong Dongfang Precision Science & Technology Co., Ltd. Q1 2020 Report Accounts payable. 70,687,704.41 70,687,704.41 Advance payment. 17,451,789.10 17,451,789.10 Salary payable to staff and 26,144,254.56 26,144,254.56 workers. Taxes payable. 1,921,575.57 1,921,575.57 Other payables. 50,214,415.95 50,214,415.95 Total current liabilities. 300,263,599.10 300,263,599.10 Non-current liabilities: Deferred return. 14,423,631.66 14,423,631.66 Total non-current liabilities. 14,423,631.66 14,423,631.66 Total liabilities. 314,687,230.76 314,687,230.76 Owner's equity: Capital stock. 1,838,647,096.00 1,838,647,096.00 Capital reserve. 3,608,591,602.42 3,608,591,602.42 Minus: inventory stock. 160,088,925.60 160,088,925.60 Surplus reserve. 51,830,974.45 51,830,974.45 Undistributed profit. -1,382,513,370.64 -1,382,513,370.64 Total owner's equity. 3,956,467,376.63 3,956,467,376.63 Total liabilities and owners' 4,271,154,607.39 4,271,154,607.39 equity Adjustment description. 2. The first time to implement the new income standard and the new leasing standard retrospectively adjust the comparative data in the previous period from 2020 □ Applicable √ Not applicable III. Audit report Whether the first quarter report has been audited □ Yes √ No The company's first quarter report has not been audited. 39