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光峰科技:2020年第一季度报告全文(英文版)2020-11-25  

                                             The First Quarter Report in 2020



Stock Code: 688007                                      Stock Short Name: Appotronics




            Appotronics Corporation Limited
            The First Quarter Report in 2020




                                  1   / 36
                                 The First Quarter Report in 2020




                                       CONTENT
I.     Important Notes................................................................. 3
II.    Basic Information ............................................................... 3
III.   Significant Events ............................................................... 8
IV.    Annex ...................................................................... 155




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                                          The First Quarter Report in 2020



I.    Important Notes


1.1 The Board of Directors, the Board of Supervisors, directors, supervisors and senior officers of the

      Company hereby warrant that the information contained in this Quarter Report is true, accurate and

      complete and this Quarter Report is free from any misrepresentation, misleading statement or

      material omission, and agree to assume joint and several liability for this Quarter Report.

1.2 All directors of the Company attended the meeting of the Board of Directors for deliberation of this

      Quarter Report.

1.3 BO Lianming, Principal of the Company; ZHAO Ruijin, the Person in Charge of the Accounting

      Body; and WEI Yanlin, the Chief Accountant (the Person in Charge of Accounting) hereby

      represent that the financial statements contained in this Quarter Report are true, accurate and

      complete.

1.4 The Company's first quarter report has not been audited.


II.   Basic Information


2.1 Major financial data
                                                                                                               In RMB
                                                                                           Changes at the end of the
                       At the end of the reporting
                                                       At the end of the prior year     reporting period from the end of
                                 period
                                                                                               the prior year (%)
Total assets                    2,984,904,808.29                   3,099,508,090.85                                  -3.70
Net assets                      2,001,216,429.95                   1,974,559,837.64                                  1.35
attributable to
shareholders of the
listed company
                       From the beginning of the     From the beginning of the prior
                                                                                        Changes over the same period of
                         year to the end of the      year to the end of the reporting
                                                                                               the prior year (%)
                            reporting period             period of the prior year
Net cash flow from                -38,289,185.55                      -65,364,673.16                                  N/A
operating activities
                       From the beginning of the     From the beginning of the prior
                                                                                        Changes over the same period of
                         year to the end of the      year to the end of the reporting
                                                                                               the prior year (%)
                            reporting period             period of the prior year
Operating income                  306,900,748.84                     359,369,025.24                                 -14.60
Net profits                        13,322,216.29                      27,848,207.29                                 -52.16
                                                        3   / 36
                                         The First Quarter Report in 2020



attributable to
shareholders of the
listed company
Net profits                     -7,989,708.14                         17,279,140.15                          -146.24
attributable to
shareholders of the
listed company after
deduction of
non-recurring
profits or losses
Weighted average                           0.67                                3.83            Decrease by 3.16%
return on net assets
(%)
Basic earnings per                         0.03                                0.07                           -57.14
share (RMB/share)
Diluted earnings per                       0.03                                0.07                           -57.14
share (RMB/share)
Proportion of R&D                         14.26                               10.17                Increase by 4.09%
investments to the
operating income
(%)


     The net profit attributable to shareholders of the listed company after deduction of non-recurring
profit or loss for the current period amounted to RMB -7,989,708.14, down 146.24%, primarily due to the
decline in the comprehensive gross margin caused by changed product income structure during the period;
the expenses during the period, including the share-based payments charged to recurring profit or loss
amounted to RMB 9,027,862.06, increased by 8.72% year over year; and the non-recurring gains for the
current period increased by RMB 12,528,305.13, primarily contributed by the income from wealth
management products and government grants.

Items and amounts of non-recurring profit or loss
√Applicable □ N/A
                                                                                                           In RMB
                       Item                               2019                             Description
Profit or loss on disposal of                                    238,395.63
non-current assets
                                                           11,818,995.29      The government grants primarily
Government grants recognized in
                                                                              represent those recognized in profit
profit or loss other than grants which
                                                                              or loss for the current period,
are closely related to the Company's
                                                                              including government grants
business and are either in fixed
                                                                              received in the current period and
amounts or determined under
                                                                              those previously received but
quantitative methods in accordance
                                                                              recognized in the current period for
with the national standard
                                                                              amortization.
Net profit or loss of subsidiaries from                     5,827,864.14      It refers to the realized part of

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                                         The First Quarter Report in 2020



the beginning of the period up to the                                       unrealized profits and losses from
business combination date recognized                                        transactions prior to business
as a result of business combination of                                      combination involving entities
enterprises involving entities under                                        under common control.
common control
Profit or loss on changes in the fair                       6,232,108.77    It primarily refers to the gains from
value of held-for-trading financial                                         wealth management products
assets, derivative financial assets,                                        purchased by temporarily idle
held-for-trading financial liabilities                                      funds
and derivative financial liabilities and
investment income on disposal of
held-for-trading financial assets,
derivative financial assets,
held-for-trading financial liabilities,
derivative financial liabilities and
other debt investments, other than
those used in the effective hedging
activities relating to normal operating
business
Other non-operating income or                                -344,986.73
expenses other than the above
Effects attributable to minority                             -120,908.65
interests (net of tax)
Income tax effects                                         -2,339,544.02
                 Total                                     21,311,924.43



2.2 Total number of shareholders, and the shareholding of top ten shareholders and top ten unrestricted

     shareholders as of the end of reporting period
                                                                                                       In Share
Total number of shareholders (account)                                                                   17,029
                                   The shareholding of top ten shareholders
                                                                      Number of       Description of
                                                                       restricted       pledge or
                                                                         shares           freeze
                          Number of                                                                      Nature
                                                     Number of         including
Shareholder name          shares held      Proport                                                         of
                                                      restricted     shares leased       If
   (full name)           at the end of     ion (%)                                                       shareh
                                                     shares held         out for      pledged   Num
                           the period                                                                    olders
                                                                      refinancing       or       ber
                                                                        business      frozen




                                                      5   / 36
                                       The First Quarter Report in 2020



                                                                                                   Non-state-
Shenzhen
                                                                                                     owned
Appotronics               79,762,679      17.66     79,762,679     79,762,679        No      0
                                                                                                   corporatio
Holdings Limited
                                                                                                   n in China
SAIF IV Hong
                                                                                                    Oversea
Kong (China
                         62,980,676      13.95     62,980,676      62,980,676        No      0     corporatio
Investments)
                                                                                                       n
Limited
CITIC PE
                                                                                                    Oversea
Investment (Hong
                         41,774,562      9.25      41,774,562      41,774,562        No      0     corporatio
Kong) 2016
                                                                                                       n
Limited
Fuzhou Strait                                                                                      Non-state-
Appotronics                                                                                          owned
                         25,064,737      5.55      25,064,737      25,064,737        No      0
Investment                                                                                         corporatio
Partnership (LP)                                                                                   n in China
Shenzhen Yuanshi
                                                                                                   Non-state-
Laser Industrial
                                                                                                     owned
Investment               24,139,500      5.35      24,139,500      24,139,500        No      0
                                                                                                   corporatio
Consulting
                                                                                                   n in China
Partnership (LP)
Shenzhen                                                                                           Non-state-
Appotronics Daye                                                                                     owned
                         20,430,250      4.52      20,430,250      20,430,250        No      0
Investment                                                                                         corporatio
Partnership (LP)                                                                                   n in China
GREEN FUTURE                                                                                        Oversea
HOLDINGS                 16,504,518      3.66      16,504,518      16,504,518        No      0     corporatio
LIMITED                                                                                                n
Shenzhen                                                                                           Non-state-
Appotronics                                                                                          owned
                         15,662,374      3.47      15,662,374      15,662,374        No      0
Hongye Investment                                                                                  corporatio
Partnership (LP)                                                                                   n in China
                                                                                                   Non-state-
Shenzhen Jinleijing
                                                                                                     owned
Investment Limited       12,353,106      2.74      12,353,106      12,353,106        No      0
                                                                                                   corporatio
Partnership (LP)
                                                                                                   n in China
Changzhou                                                                                          Non-state-
Lisheng Equity                                                                                       owned
                         11,667,635      2.58      11,667,635      11,667,635        No      0
Investment                                                                                         corporatio
Partnership (LP)                                                                                   n in China
                      The shareholding of top ten shareholders of non-restricted shares
Shareholder name                       Number of unrestricted             Category and number of shares
                                         circulating shares               Category               Number
                                                    6   / 36
                                    The First Quarter Report in 2020



National Social Security Fund                                     RMB ordinary
                                                     1,742,168                                1,742,168
Portfolio 102                                                       shares
                                                                  RMB ordinary
UBS AG                                               1,517,479                                1,517,479
                                                                    shares
                                                                  RMB ordinary
ZHONG Haidi                                           822,804                                   822,804
                                                                    shares
Agricultural Bank of China
Limited - BOCOM Schroder                                          RMB ordinary
                                                      594,434                                   594,434
Pioneer Hybrid Securities                                           shares
Investment Fund
                                                                  RMB ordinary
LONG Shixue                                           464,700                                   464,700
                                                                    shares
                                                                  RMB ordinary
GAO Ermei                                             393,713                                   393,713
                                                                    shares
                                                                  RMB ordinary
WANG Danping                                          329,210                                   329,210
                                                                    shares
                                                                  RMB ordinary
ZHANG Shangmin                                        317,734                                   317,734
                                                                    shares
                                                                  RMB ordinary
ZHOU Qiping                                           273,940                                   273,940
                                                                    shares
Industrial and Commercial Bank of
China Limited - BOCOM Schroder
                                                                  RMB ordinary
Technology Innovation Flexible                        272,708                                   272,708
                                                                    shares
Allocation Hybrid Securities
Investment Fund
Explanation for related-party       1. As of March 31, 2020, the Company has received no statement
relationship or concerted actions   from aforementioned shareholders to confirm there is a
among aforementioned                related-party relationship or concerted action, except the concerted
shareholders                        action among Shenzhen Appotronics Holdings Limited, Shenzhen
                                    Yuanshi Laser Industrial Investment Consulting Partnership (LP),
                                    Shenzhen Appotronics Daye Investment Partnership ( LP),
                                    Shenzhen Appotronics Hongye Investment Partnership (LP), and
                                    Shenzhen Jinleijing Investment Limited Partnership (LP) in top 10
                                    shareholders of the Company.
                                    2. The Company is unaware that whether there is a related-party
                                    relationship among circulating shareholders or whether they are
                                    persons acting in concert as stipulated in the Measures for the
                                    Administration of Disclosure of Shareholder Equity Changes of
                                    Listed Companies.
Explanation on preferred            N/A
shareholders of voting power
recovered and shareholding
numbers

                                                 7   / 36
                                     The First Quarter Report in 2020




2.3 Total number of preferred shareholders, and the shareholding of top ten preferred shareholders and

     top ten unrestricted preferred shareholders as of the end of reporting period
□ Applicable √ N/A

III. Significant Events


3.1 Significant changes in the Company's main accounting line items and financial highlights and

     reasons thereof
√Applicable □ N/A
1. Changes in line items of the balance sheet and reasons thereof
                                                                                                     In RMB

     Item              March 31, 2020        December 31, 2019       Proportion        Reason for change

                                                                        of change

Receivables                 1,169,000.00              1,980,500.00       -40.97%     Primarily due to the
financing                                                                            acceptance of matured
                                                                                     bank acceptance bills
Notes payable              22,379,090.01           37,335,841.79         -40.06%     Primarily due to the
                                                                                     acceptance of matured
                                                                                     bank acceptance bills
Receipts in                                       184,444,643.33             N/A     Primarily due to the
advance                                                                              implementation of
                                                                                     new standards
Contract                  198,880,050.18                                     N/A     Primarily due to the
liabilities                                                                          implementation of
                                                                                     new standards
Employee                   13,882,223.33           50,586,932.71         -72.56%     Primarily due to the
benefits payable                                                                     payment of 2019
                                                                                     year-end bonus in the
                                                                                     current period
Taxes payable              10,525,791.11           42,924,647.79         -75.48%     Primarily due to the
                                                                                     decreased payment of
                                                                                     enterprise income tax
                                                                                     and the decline in
                                                                                     taxes payable in the
                                                                                     current period
Non-current                36,459,795.66           64,968,795.02         -43.88%     Primarily due to the
liabilities due                                                                      decreased balance of
within one year                                                                      long-term borrowings

                                                  8   / 36
                                    The First Quarter Report in 2020



                                                                                 due within one year
Other                      7,084,382.66              3,287,063.85      115.52%   Primarily due to the
comprehensive                                                                    exchange differences
income                                                                           on translation of
                                                                                 financial statements
                                                                                 denominated in
                                                                                 foreign currencies
2. Changes in line items of the income statement and reasons thereof
                                                                                                 In RMB

         Item       For the period from   For the period from       Proportion     Reason for change

                     January 1, 2020 to    January 1, 2019 to       of change

                      March 31, 2020        March 31, 2019

Taxes and levies             848,964.73          2,713,456.49          -68.71%   Primarily due to the
                                                                                 decreased payment of
                                                                                 VAT in the current
                                                                                 period
Administrative           34,641,364.44          26,453,737.41          30.95%    Primarily due to the
expenses                                                                         increased expenses of
                                                                                 share-based payments
                                                                                 in the current period
Financial                  3,640,120.46         10,183,619.72          -64.26%   Primarily due to
expenses                                                                         decreased loan interest
                                                                                 expenses and
                                                                                 increased deposit
                                                                                 interest income
Other income             13,967,683.29           6,995,045.26          99.68%    Primarily due to
                                                                                 increases in
                                                                                 government grants
                                                                                 recognized in the
                                                                                 current period
Investment                 6,951,747.26         -4,299,742.78             N/A    Primarily due to the
income                                                                           income from wealth
                                                                                 management products
                                                                                 recognized in the
                                                                                 current period and
                                                                                 decreased losses of
                                                                                 investments in
                                                                                 associates
Losses of credit           3,178,689.54               13,856.68     22839.76%    Primarily due to the
impairment                                                                       decrease in the

                                                 9   / 36
                                     The First Quarter Report in 2020



                                                                                     provision for bad debts
                                                                                     of accounts receivable
Impairment                -4,230,773.80           1,936,993.19          -318.42%     Primarily due to the
losses of assets                                                                     increase in the
                                                                                     provision for decline
                                                                                     in value of inventories
                                                                                     in the current period
Income tax                 6,583,959.00          15,103,968.68           -56.41%     Primarily due to the
expense                                                                              decreased profits
                                                                                     before tax in the
                                                                                     current period
Net profit                 7,299,713.17          37,606,521.44           -80.59%     Primarily due to
                                                                                     decreased income and
                                                                                     increased expenses in
                                                                                     the current period
Net profits               13,322,216.29          27,848,207.29           -52.16%     Primarily due to
attributable to                                                                      decreased income and
owners of the                                                                        increased expenses in
Parent Company                                                                       the current period
Profit or loss            -6,022,503.12           9,758,314.15          -161.72%     Primarily due to the
attributable to                                                                      decreased profits of
minority                                                                             subsidiaries in the
shareholders                                                                         current period
Exchange                   3,797,318.81          -2,985,768.48               N/A     Primarily due to
differences on                                                                       increased assets
translation of                                                                       dominated in foreign
financial                                                                            currencies and the
statements                                                                           exchange rate change
denominated in
foreign currencies
Basic and diluted                   0.03                     0.07        -57.14%     Primarily due to
earnings per share                                                                   decreased profits and
                                                                                     increased shares
3. Changes in line items of the cash flow statement and reasons thereof
                                                                                                     In RMB

     Item            For the period from    For the period from         Proportion     Reason for change

                     January 1, 2020 to      January 1, 2019 to         of change

                      March 31, 2020          March 31, 2019

Net cash flow            -38,289,185.55           -65,364,673.16              N/A    Primarily due to the
from operating                                                                       decreased payment

                                                 10   / 36
                                              The First Quarter Report in 2020



    activities                                                                                  for purchase in the
                                                                                                current period
    Net cash flow               56,240,044.30                 -5,455,447.62             N/A     Primarily due to the
    from investing                                                                              redemption of and
    activities                                                                                  gains from wealth
                                                                                                management products
                                                                                                purchased by
                                                                                                temporarily idle funds
    Net cash flow              -53,008,882.64                 -9,610,541.75             N/A     Primarily due to the
    from financing                                                                              decrease in new
    activities                                                                                  borrowings in the
                                                                                                current period as
                                                                                                compared with the
                                                                                                same period of last
                                                                                                year.
    Effect of foreign               419,408.45                -2,687,466.36             N/A     Primarily due to
    exchange rate                                                                               exchange profit or
    changes on cash                                                                             loss and the exchange
    and cash                                                                                    differences on
    equivalents                                                                                 translation of
                                                                                                financial statements
                                                                                                denominated in
                                                                                                foreign currencies
    Net increase in            -34,638,615.44                -83,118,128.89             N/A     Primarily due to the
    cash and cash                                                                               comprehensive effects
    equivalents                                                                                 on changes in each
                                                                                                line item above of the
                                                                                                cash flow statement



    3.2 Description of analysis on progresses of significant events and their influences and solutions
    √Applicable □ N/A
       (I) Litigation
       1.Civil litigation and arbitration cases where the Company acted as a defendant
       As of the date of issue of the financial statements, there have been 5 civil litigation cases where the
    Company was a defendant, with details as below:




                  Cause of                                                                      Amount
   Case No.                     Plaintiffs     Defendant/Appellee         Patents involved                  Progress
                     action                                                                     involved
(2019) Yue 73    Infringemen   Delta           Appotronics                                    RMB          Suspension
                                                                         ZL201610387831.8
Zhi Min Chu      t of patent   Electronics,    Corporation Limited;                           16,145,300   of hearing


                                                             11   / 36
                                                  The First Quarter Report in 2020



No.662              rights of      Inc.            Shenzhen Futian

(2019) Yue 73       inventions                     Suopuni Projection
                                                                                              RMB
Zhi Min Chu                                        Video System            ZL201310017478.0                Pending
                                                                                              16,145,300
No.663                                             Commercial Firm

(2019) Yue 73                                                                                 RMB          Pending
Zhi Min Chu                                                                ZL20310625063.1    16,145,300
No.664
(2019) Jing 73                                                                                RMB          Pending
Min Chu             Infringemen                    Fengmi (Beijing)        ZL201410249663.7   16,010,000
                                   Delta
No.1275             t of patent                    Technology Co.,
                                   Electronics,
(2019) Jing 73      rights of                      Ltd.; Appotronics                          RMB          Pending
                                   Inc.
Min Chu             inventions                     Corporation Limited     ZL201610387831.8   16,010,000
No.1276




          2.Civil litigation and arbitration cases where the Company acted as a plaintiff
          As of the disclosure date of the report, there have been 30 civil litigation cases where the Company
    acted as a plaintiff. In these cases, 28 cases were caused by infringement of invention patents with relevant
    claims as follows: requiring the defendant to stop infringing the Company's patents for invention and
    destroy the equipment and mold used to produce the infringed products; requiring the defendant to
    compensate the plaintiff with economic losses and reasonable expenses incurred for stopping the
    infringement, and to bear the joint and several liability. No other credit and debit disputes were involved.
    And 2 cases are brought for correcting the inventors of the patents, with relevant claims of correcting LI Yi
    and HU Fei as the inventors of the US Patent No. 9,024,241 and the China Patent No. ZL201610387831.8.

         3. In March 2020, the Company concluded the Mediation Agreement with Casio Computer Co., Ltd.,
    pursuant to which both parties voluntarily reached a mediation on a number of litigation cases, and
    withdrew relevant cases respectively. The details were disclosed by the Company on the official site of
    Shanghai Stock Exchange (www.sse.com.cn) on March 21, 2020 and in the 2020-008 Announcement in
    designated information disclosure media. As of the disclosure date of the report, the withdrawal of cases
    by both parties is in progress.

    (II) Invalidation plea
          1. Invalidation plea cases where the Company acted a patentee
          As of the disclosure date of the report, there have been 4 invalidation plea cases where the Company
    acted as a patentee, with details as below:


    Serial       Case code        Patentee                 Patent No. involved        Petitioner     Remark
    No.                                                                               for
                                                                                      invalidation
    1            4W110045         Appotronics              ZL200880107739.5           Delta          The National
                                  Corporation                                         Electronics    Intellectual
                                  Limited                                             (Shanghai)     Property

                                                               12   / 36
                                     The First Quarter Report in 2020



                                                                        Co., Ltd.     Administration of
                                                                                      the PRC accepted
                                                                                      the invalidation
                                                                                      plea. Details were
                                                                                      disclosed in
                                                                                      2020-007
                                                                                      Temporary
                                                                                      Announcement.
2       4W108668       Appotronics            ZL200810065225.X          Dehao         Pending
                       Corporation                                      Electronic
                       Limited                                          Technology
                                                                        Ltd.
3       4W108847       Appotronics            ZL200810065225.X          WEI Qun       Pending
                       Corporation
                       Limited
4       4W110041       Appotronics            ZL200810065225.X          Delta         The National
                       Corporation                                      Electronics   Intellectual
                       Limited                                          (Shanghai)    Property
                                                                        Co., Ltd.     Administration of
                                                                                      the PRC accepted
                                                                                      the invalidation
                                                                                      plea. Details were
                                                                                      disclosed in
                                                                                      2020-007
                                                                                      Temporary
                                                                                      Announcement.


     2. Invalidation plea cases where the Company acted a petitioner
     As of the disclosure date of the report, there have been 4 invalidation plea cases where the Company
acted as a petitioner, all of which are related to the invalidation plea against patents held by Delta
Electronics, Inc.


3.3 Commitments failed in completion as scheduled within the reporting period
□ Applicable √ N/A


3.4 Warning of the estimate that the accumulated net profits from the beginning of the year to the end of

     the next reporting period will be negative or will change significantly comparing with the same

     period of the previous year, and description of reasons
√Applicable □ N/A
       Though the COVID-19 epidemic has been effectively controlled in China, it still spreads all over
the world in a tendency far from optimistic, which has greatly affected the worldwide economy and
industry. Due to the impact of this epidemic, businesses in the movie industry where the Company's
                                                 13   / 36
                                       The First Quarter Report in 2020



cinema light source lease service belongs have also suspended, causing the Company’s shutdown of its
cinema projector light source lease service business, hence the Company’s income from cinema
projector light source lease service has been directly affected. Meanwhile, the shrink of consumption
demand as the result of the macro environment has also affected the Company’s other businesses to a
certain extent. As GDC invested by the Company belongs to the cinema projection equipment industry, it
is also affected by the discontinued operation of cinemas, so that it may fail to achieve the expected results,
which will increase the Company’s external investment risks. Therefore, the Company is exposed to the
risk that the Company’s performance from the beginning of the year to the end of the next reporting
period will be significantly lower than that of the same period of the previous year.




                                                                    Company      Appotronics Corporation
                                                                       name      Limited
                                                                        Legal    BO Lianming
                                                                Representative
                                                                          Date   April 29, 2020




                                                    14   / 36
                                      The First Quarter Report in 2020




IV. Annex


4.1 Financial statements
                                    Consolidated Balance Sheet
                                          March 31, 2020
Prepared by: Appotronics Corporation Limited
                                                                                  In RMB, Unaudited
                Item                            March 31, 2020                 December 31, 2019
Current Assets:
  Cash and bank balances                                      827,117,516.74           875,858,784.58
  Balances with clearing agencies
   Placements with banks and other
financial institutions
  Held-for-trading financial assets                           485,000,000.00           540,000,000.00
  Derivative financial assets
  Notes receivable                                              4,583,773.78             4,042,559.63
  Accounts receivable                                         138,433,481.93           176,035,155.24
  Receivables financing                                         1,169,000.00             1,980,500.00
  Prepayments                                                  30,274,385.62            35,070,999.13
  Premiums receivable
   Amounts receivable under
reinsurance contracts
  Reinsurer's share of insurance
contract reserves
  Other receivables                                            11,893,750.49             9,618,750.08
  Including: Interest receivable
         Dividends receivable
   Financial assets purchased under
resale agreements
  Inventories                                                 347,382,515.07           299,966,170.35
  Contract assets
  Held-for-sale assets
  Non-current assets due within one
year
  Other current assets                                         41,590,854.50            44,405,513.30
    Total Current Assets                                 1,887,445,278.13            1,986,978,432.31
Non-current Assets:
  Loans and advances
  Debt investments
  Other debt investments
                                                  15   / 36
                                       The First Quarter Report in 2020



  Long-term receivables
  Long-term equity investments                                 142,382,489.82    139,534,371.94
  Other equity instrument                                       11,975,419.38     11,975,419.38
investments
  Other non-current financial assets
  Investment properties
  Fixed assets                                                 465,654,761.50    471,204,340.95
  Construction in progress                                      14,552,980.54     20,132,004.07
  Bearer biological assets
  Oil and gas assets
  Use right assets
  Intangible assets                                            328,514,812.96    332,331,324.07
  Development expenditure
  Goodwill
  Long-term prepaid expenses                                    16,759,002.15     16,908,070.34
  Deferred tax assets                                          106,192,677.72    109,023,941.85
  Other non-current assets                                      11,427,386.09     11,420,185.94
     Total Non-current Assets                             1,097,459,530.16      1,112,529,658.54
       Total assets                                       2,984,904,808.29      3,099,508,090.85
Current Liabilities:
  Short-term borrowings                                         97,656,413.93     76,765,319.05
  Loans from the central bank
   Taking from banks and other
financial institutions
   Held-for-trading financial
liabilities
  Derivative financial liabilities
  Notes payable                                                 22,379,090.01     37,335,841.79
  Accounts payable                                             156,802,981.12    176,624,445.46
  Receipts in advance                                                            184,444,643.33
  Contract liabilities                                         198,880,050.18
  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                                     13,882,223.33     50,586,932.71
  Taxes payable                                                 10,525,791.11     42,924,647.79

                                                   16   / 36
                                       The First Quarter Report in 2020



  Other payables                                                14,972,938.20     14,364,076.43
  Including: Interest payable
          Dividends payable
  Fees and commissions payable
   Amounts payable under
reinsurance contracts
  Held-for-sale liabilities
  Non-current liabilities due within                            36,459,795.66     64,968,795.02
one year
  Other current liabilities
     Total Current Liabilities                                 551,559,283.54    648,014,701.58
Non-current Liabilities:
  Insurance contract reserves
  Long-term borrowings                                         240,199,125.63    279,615,107.27
  Bonds payable
  Including: Preferred shares
            Perpetual bonds
  Leasing liabilities
  Long-term payables                                             3,542,550.00       3,488,100.00
  Long-term employee benefits
payable
  Provisions                                                    29,568,184.72     27,072,676.49
  Deferred income                                               15,034,378.48     17,108,361.69
  Deferred tax liabilities
  Other non-current liabilities
     Total Non-current Liabilities                             288,344,238.83    327,284,245.45
       Total Liabilities                                       839,903,522.37    975,298,947.03
Owners’ (or Shareholders’)
equity:
  Paid-in capital (or share capital)                           451,554,411.00    451,554,411.00
  Other equity instruments
  Including: Preferred shares
            Perpetual bonds
  Capital reserve                                         1,216,200,640.70      1,207,942,318.37
  Less: Treasury shares
  Other comprehensive income                                     7,084,382.66       3,287,063.85
  Special reserve
  Surplus reserve                                               22,800,224.13     22,800,224.13
  General risk reserve
  Retained profits                                             303,576,771.46    288,975,820.29
  Total Owners’(or Shareholders’)                       2,001,216,429.95      1,974,559,837.64
Equity Attributable to Owners of the

                                                   17   / 36
                                        The First Quarter Report in 2020



Parent Company
  Minority interests                                            143,784,855.97             149,649,306.18
    Total Owners’ (or                                     2,145,001,285.92              2,124,209,143.82
Shareholders’) Equity
       Total Liabilities and Owners’                      2,984,904,808.29              3,099,508,090.85
(or Shareholders’) Equity


Legal Representative:           Person in Charge of the Accounting Body:         Chief Accountant:
    BO Lianming                               ZHAO Ruijin                               WEI Yanlin



                              Balance Sheet of the Parent Company
                                          March 31, 2020
Prepared by: Appotronics Corporation Limited
                                                                                       In RMB, Unaudited
                Item                              March 31, 2020                   December 31, 2019
Current Assets:
  Cash and bank balances                                        469,608,752.61             570,479,390.49
  Held-for-trading financial assets                             485,000,000.00             540,000,000.00
  Derivative financial assets
  Notes receivable                                                2,909,223.78               3,542,559.63
  Accounts receivable                                           288,187,483.95             299,315,776.44
  Receivables financing                                            129,000.00                  442,500.00
  Prepayments                                                     5,305,552.69               6,410,257.48
  Other receivables                                              70,959,929.83              67,227,575.21
  Including: Interest receivable
          Dividends receivable
  Inventories                                                   163,646,069.08             135,617,379.22
  Contract assets
  Held-for-sale assets
  Non-current assets due within one
year
  Other current assets                                           10,924,913.92              12,280,164.39
     Total Current Assets                                  1,496,670,925.86              1,635,315,602.86
Non-current Assets:
  Debt investments
  Other debt investments
  Long-term receivables
  Long-term equity investments                                  391,378,475.54             257,795,276.13
  Other equity instrument                                         7,075,419.38               7,075,419.38
investments
  Other non-current financial assets

                                                    18   / 36
                                       The First Quarter Report in 2020



  Investment properties
  Fixed assets                                                  58,631,091.77     60,391,512.92
  Construction in progress                                       2,245,799.09       1,385,496.59
  Bearer biological assets
  Oil and gas assets
  Use right assets
  Intangible assets                                            327,120,322.03    330,796,423.87
  Development expenditure
  Goodwill
  Long-term prepaid expenses                                    13,072,982.44     12,771,126.83
  Deferred tax assets                                            7,861,742.77       9,545,438.20
  Other non-current assets                                       6,439,815.16       6,744,453.85
     Total Non-current Assets                                  813,825,648.18    686,505,147.77
       Total assets                                       2,310,496,574.04      2,321,820,750.63
Current Liabilities:
  Short-term borrowings                                         20,000,000.00     10,217,738.36
   Held-for-trading financial
liabilities
  Derivative financial liabilities
  Notes payable                                                 22,379,090.01     37,335,841.79
  Accounts payable                                             159,440,057.91    162,596,838.45
  Receipts in advance                                                             11,116,659.11
  Contract liabilities                                          13,163,978.16
  Employee benefits payable                                      7,794,625.23     26,985,668.92
  Taxes payable                                                   735,473.27       1,534,242.70
  Other payables                                                46,393,502.32     42,599,703.36
  Including: Interest payable
          Dividends payable
  Held-for-sale liabilities
  Non-current liabilities due within
one year
  Other current liabilities
     Total Current Liabilities                                 269,906,726.90    292,386,692.69
Non-current Liabilities:
  Long-term borrowings
  Bonds payable
  Including: Preferred shares
             Perpetual bonds
  Leasing liabilities
  Long-term payables                                             3,542,550.00       3,488,100.00
  Long-term employee benefits
payable

                                                   19   / 36
                                        The First Quarter Report in 2020



  Provisions                                                     15,151,566.68                14,631,273.00
  Deferred income                                                13,668,257.45                15,724,174.30
  Deferred tax liabilities
  Other non-current liabilities
     Total Non-current Liabilities                               32,362,374.13                33,843,547.30
       Total Liabilities                                        302,269,101.03               326,230,239.99
Owners’ (or Shareholders’)
equity:
  Paid-in capital (or share capital)                            451,554,411.00               451,554,411.00
  Other equity instruments
  Including: Preferred shares
             Perpetual bonds
  Capital reserve                                          1,319,967,729.88                1,310,939,867.82
  Less: Treasury shares
  Other comprehensive income
  Special reserve
  Surplus reserve                                                21,522,683.40                21,522,683.40
  Retained profits                                              215,182,648.73               211,573,548.42
    Total Owners’ (or                                     2,008,227,473.01                1,995,590,510.64
Shareholders’) Equity:
       Total Liabilities and Owners’                      2,310,496,574.04                2,321,820,750.63
(or Shareholders’) Equity:


Legal Representative:           Person in Charge of the Accounting Body:           Chief Accountant:
    BO Lianming                               ZHAO Ruijin                                WEI Yanlin




                                  Consolidated Income Statement
                       For the period from January 1, 2020 to March 31, 2020
Prepared by: Appotronics Corporation Limited
                                                                                         In RMB, Unaudited
                     Item                          The First Quarter in 2020       The First Quarter in 2019
I. Total operating income                                         306,900,748.84             359,369,025.24
Including: Operating income                                       306,900,748.84             359,369,025.24
       Interest income
       Premiums earned
       Fee and commission income
II. Total operating costs                                         312,526,014.17             311,930,400.24
Including: Operating costs                                        205,113,820.04             211,196,655.46
       Interest expenses
       Fee and commission expenses

                                                    20   / 36
                                          The First Quarter Report in 2020



            Surrenders
      Claims and policyholder benefits (net
of amounts recoverable from reinsurers)
       Net withdrawal of insurance contract
reserves
            Insurance policyholder dividends
            Expenses for reinsurance accepted
            Taxes and levies                                         848,964.73      2,713,456.49
            Selling expenses                                      24,522,520.30     24,850,190.08
            Administrative expenses                               34,641,364.44     26,453,737.41
            R&D expenses                                          43,759,224.20     36,532,741.08
            Financial expenses                                      3,640,120.46    10,183,619.72
            Including: Interest expense                            5,974,996.52      8,508,945.58
                   Interest income                                  2,452,836.80      656,900.44
   Add: other income                                              13,967,683.29      6,995,045.26
            Investment income (loss is indicated                   6,951,747.26     -4,299,742.78
by “-”)
        Including: Income from investments                           719,638.49     -4,299,742.78
in associates and joint ventures
              Gains from derecognition of
financial assets at amortized assets
        Foreign exchange gains (loss is
indicated by “-”)
        Gains from net exposure hedges (loss
is indicated by “-”)
         Gains from changes in fair values
(loss is indicated by “-”)
        Losses of credit impairment (loss is                       3,178,689.54        13,856.68
indicated by “-”)
        Impairment losses of assets (loss is                       -4,230,773.80     1,936,993.19
indicated by “-”)
        Gains from disposal of assets (loss is                               0.00            0.00
indicated by “-”)
III. Operating profit (loss is indicated by “-”)                14,242,080.96     52,084,777.35
   Add: Non-operating income                                           17,320.21      881,216.12
   Less: Non-operating expenses                                      375,729.00       255,503.35
IV. Total profits (total losses are indicated by                  13,883,672.17     52,710,490.12
“-”)
   Less: Income tax expenses                                        6,583,959.00    15,103,968.68
V. Net profits (net losses are indicated by “-”)                  7,299,713.17    37,606,521.44
(I) Categorized by the continuity of operation
    1. Net profits from continuing                                 7,299,713.17     37,606,521.44
operations (net losses are indicated by “-”)
                                                      21   / 36
                                        The First Quarter Report in 2020



    2. Net profits from discontinued
operations (net losses are indicated by “-”)
(II) Categorized by the ownership
     1.Net profits attributable to shareholders                 13,322,216.29    27,848,207.29
of the Parent Company (net losses are
indicated by “-”)
     2. Profits or losses attributable to                        -6,022,503.12    9,758,314.15
minority shareholders (net losses are
indicated by “-”)
VI. Other comprehensive income, net of tax                        3,832,339.57   -3,083,099.94
  (I) Other comprehensive income that can                        3,797,318.81    -2,985,768.48
be attributable to owners of the Parent
Company, net of tax
     1. Other comprehensive income that
cannot be reclassified subsequently to profit
or loss
  (1) Changes from remeasurement of
defined benefit plans
  (2) Other comprehensive income that
cannot be reclassified to profit or loss under
the equity method
  (3) Changes in fair value of investments in
other equity instruments
  (4) Changes in fair value of enterprises’
own credit risks
     2.Other comprehensive income that will                      3,797,318.81    -2,985,768.48
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) Amount of financial assets reclassified
to other comprehensive income
  (4) Provision for credit impairment of
other debt investments
  (5) Reserve for cash flow hedges
   (6) Exchange differences on translation of                    3,797,318.81    -2,985,768.48
financial statements denominated in foreign
currencies
  (7) Others
  (II) Other comprehensive income that can                           35,020.76      -97,331.46
be attributable to minority shareholders, net

                                                    22   / 36
                                       The First Quarter Report in 2020



of tax
VII. Total comprehensive income                                 11,132,052.74                 34,523,421.50
  (I) Total comprehensive income that can                       17,119,535.10                 24,862,438.81
be attributable to owners of the Parent
Company
  (II) Total comprehensive income that can                      -5,987,482.36                  9,660,982.69
be attributable to minority shareholders
VIII. Earnings per share:
   (I) Basic earnings per share (RMB/share)                               0.03                          0.07
   (II) Diluted earnings per share (RMB/share)                            0.03                          0.07


For business combination involving entities under common control occurred during the period, net profit
of the acquiree generated before the business combination is nil, and net profit of the acquiree generated in
prior period is nil.

Legal Representative:         Person in Charge of the Accounting Body:                Chief Accountant:
    BO Lianming                              ZHAO Ruijin                               WEI Yanlin




                            Income Statement of the Parent Company
                       For the period from January 1, 2020 to March 31, 2020
Prepared by: Appotronics Corporation Limited
                                                                                       In RMB, Unaudited
                       Item                             The First Quarter in
                                                                                 The First Quarter in 2019
                                                               2020
I. Operating income                                            149,314,735.41               200,753,485.99
   Less: Operating costs                                        95,623,590.51               138,936,932.06
         Taxes and levies                                         414,212.02                   2,021,050.85
         Selling expenses                                       14,007,454.17                 19,037,302.68
         Administrative expenses                                24,524,700.83                 18,742,524.81
         R&D expenses                                           25,612,027.29                 21,264,581.55
         Financial expenses                                     -3,569,835.96                  2,396,569.61
         Including: Interest expense                                13,174.14                  1,267,455.77
                  Interest income                                3,279,548.30                  1,998,509.13
   Add: other income                                            11,797,618.37                  4,522,798.93
         Investment income (loss is indicated by                 6,232,108.77                    -64,542.33
“-”)
       Including: Income from investments in
associates and joint ventures
              Gains from derecognition of
financial assets at amortized assets
         Gains from net exposure hedges (loss is

                                                   23   / 36
                                         The First Quarter Report in 2020



indicated by “-”)
        Gains from changes in fair values (loss is
indicated by “-”)
        Losses of credit impairment (loss is                        175,684.06     939,710.43
indicated by “-”)
        Impairment losses of assets (loss is                      -3,221,027.46   1,825,144.32
indicated by “-”)
        Gains from disposal of assets (loss is
indicated by “-”)
II. Operating profit (loss is indicated by “-”)                  7,686,970.29   5,577,635.78
   Add: Non-operating income                                          17,318.89    879,954.73
   Less: Non-operating expenses                                       14,740.59     63,711.29
III. Total profits (total losses are indicated by                  7,689,548.59   6,393,879.22
“-”)
     Less: Income tax expenses                                     4,080,448.28    931,193.96
VI. Net profits (net losses are indicated by “-”)                3,609,100.31   5,462,685.26
   (I) Net profits from continuing operations                      3,609,100.31   5,462,685.26
(net losses are indicated by “-”)
   (II) Net profits from discontinued operations
(net losses are indicated by “-”)
V. Other comprehensive income, net of tax
  (I) Other comprehensive income that cannot
be reclassified subsequently to profit or loss
    1.Changes from remeasurement of defined
benefit plans
     2. Other comprehensive income that cannot
be reclassified to profit or loss under the equity
method
     3.Changes in fair value of investments in
other equity instruments
    4.Changes in fair value of enterprises’
own credit risks
  (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. Amount of financial assets reclassified to
other comprehensive income
     4.Provision for credit impairment of other
debt investments

                                                      24   / 36
                                       The First Quarter Report in 2020



     5. Reserve for cash flow hedges
     6. Exchange differences on translation of
financial statements denominated in foreign
currencies
     7. Others
VI. Total comprehensive income                                     3,609,100.31                5,462,685.26
VII. Earnings per share:
     (I) Basic earnings per share (RMB/share)                             0.01                         0.01
     (II) Diluted earnings per share (RMB/share)                          0.01                         0.01


Legal Representative:         Person in Charge of the Accounting Body:             Chief Accountant:
    BO Lianming                             ZHAO Ruijin                                  WEI Yanlin




                                Consolidated Cash Flow Statement
                       For the period from January 1, 2020 to March 31, 2020
Prepared by: Appotronics Corporation Limited
                                                                                         In RMB, Unaudited
                  Item                        The First Quarter in 2020           The First Quarter in 2019


I. Cash Flows from Operating
Activities:
  Cash receipts from the sale of goods                         397,384,359.17                431,315,369.06
and the rendering of services
   Net increase in customer deposits and
deposits from banks and other financial
institutions
  Net increase in loans from the central
bank
  Net increase in taking from banks and
other financial institutions
   Cash receipts from premiums under
direct insurance contracts
  Net cash receipts from reinsurance
business
  Net cash receipts from
policyholders’ deposits and investment
contract liabilities
  Cash receipts from interest, fees and
commissions
  Net increase in taking from banks

                                                   25   / 36
                                       The First Quarter Report in 2020



  Net increase in financial assets sold
under repurchase arrangements
   Net cash received from securities
trading agencies
  Receipts of tax refunds                                        2,267,811.01     1,515,965.19
  Other cash receipts relating to                               34,991,984.03    27,092,157.24
operating activities
    Sub-total of cash inflows from                             434,644,154.21   459,923,491.49
operating activities
  Cash payments for goods purchased                            298,323,599.64   340,681,052.03
and services received
  Net increase in loans and advances to
customers
  Net increase in balance with the
central bank and due from banks and
other financial institutions
   Cash payments for claims and
policyholders' benefits under direct
insurance contracts
  Net increase in placements with banks
and other financial institutions
  Cash payments for interest, fees and
commissions
  Cash payments for insurance
policyholder dividends
  Cash payments to and on behalf of                             99,940,689.15    78,312,969.04
employees
  Payments of various types of taxes                            35,918,878.89    53,102,338.02
  Other cash payments relating to                               38,750,172.08    53,191,805.56
operating activities
    Sub-total of cash outflows from                            472,933,339.76   525,288,164.65
operating activities
        Net cash flow from operating                           -38,289,185.55   -65,364,673.16
activities
II. Cash Flows from Investing
Activities:
   Cash receipts from disposals and                            540,000,000.00     3,700,000.00
recovery of investments
  Cash receipts from investment income                           6,232,108.77
   Net cash receipts from disposals of                               2,281.47
fixed assets, intangible assets and other
long-term assets
  Net cash receipts from disposals of

                                                   26   / 36
                                        The First Quarter Report in 2020



subsidiaries and other business units
  Other cash receipts relating to
investing activities
     Sub-total of cash inflows from                             546,234,390.24     3,700,000.00
investing activities
   Cash payments to acquire or construct                          4,994,345.94     9,155,447.62
fixed assets, intangible assets and other
long-term assets
  Cash payments to acquire investments                          485,000,000.00
  Net increase in pledged loans
receivables
  Net cash payments for acquisitions of
subsidiaries and other business units
  Other cash payments relating to
investing activities
     Sub-total of cash outflows from                            489,994,345.94     9,155,447.62
investing activities
        Net cash flow from investing                             56,240,044.30    -5,455,447.62
activities
III. Cash Flows from Financing
Activities:
  Cash receipts from capital
contributions
   Including: cash receipts from capital
contributions from minority shareholders
of subsidiaries
  Cash receipts from borrowings                                  31,049,660.15   101,960,000.00
   Other cash receipts relating to
financing activities
     Sub-total of cash inflows from                              31,049,660.15   101,960,000.00
financing activities
  Cash repayments of borrowings                                  77,790,695.10   103,168,350.00
   Cash payments for distribution of                              6,267,847.69     8,402,191.75
dividends or profits or settlement of
interest expenses
  Including: payments for distribution of
dividends or profits to minority
shareholders of subsidiaries
   Other cash payments relating to
financing activities
     Sub-total of cash outflows from                             84,058,542.79   111,570,541.75
financing activities
       Net cash flow from financing                             -53,008,882.64    -9,610,541.75

                                                    27   / 36
                                      The First Quarter Report in 2020



activities
IV. Effect of Foreign Exchange Rate                              419,408.45                 -2,687,466.36
Changes on Cash and Cash
Equivalents
V. Net Increase in Cash and Cash                              -34,638,615.44               -83,118,128.89
Equivalents
  Add: Opening balance of cash and                            829,789,487.86              472,508,550.40
cash equivalents
VI. Closing Balance of Cash and Cash                          795,150,872.42              389,390,421.51
Equivalents


Legal Representative:        Person in Charge of the Accounting Body:                Chief Accountant:
    BO Lianming                             ZHAO Ruijin                               WEI Yanlin




                          Cash Flow Statement of the Parent Company
                       For the period from January 1, 2020 to March 31, 2020
Prepared by: Appotronics Corporation Limited

                                                                                      In RMB, Unaudited
                  Item                       The First Quarter in 2020         The First Quarter in 2019


I. Cash Flows from Operating
Activities:
  Cash receipts from the sale of goods                        175,632,699.35              259,244,374.99
and the rendering of services
  Receipts of tax refunds                                       1,258,598.52                        0.00
  Other cash receipts relating to                              69,010,030.52               27,903,540.81
operating activities
    Sub-total of cash inflows from                            245,901,328.39              287,147,915.80
operating activities
  Cash payments for goods purchased                           148,745,453.42              177,525,319.52
and services received
  Cash payments to and on behalf of                            58,149,160.99               48,748,387.90
employees
  Payments of various types of taxes                            2,326,794.97               27,672,453.21
  Other cash payments relating to                              59,079,296.15               44,283,765.25
operating activities
    Sub-total of cash outflows from                           268,300,705.53              298,229,925.88
operating activities
  Net cash flow from operating                                -22,399,377.14               -11,082,010.08
activities

                                                  28   / 36
                                        The First Quarter Report in 2020



II. Cash Flows from Investing
Activities:
   Cash receipts from disposals and                             540,000,000.00    4,635,457.67
recovery of investments
  Cash receipts from investment income                            6,232,108.77
   Net cash receipts from disposals of                                2,281.47
fixed assets, intangible assets and other
long-term assets
  Net cash receipts from disposals of
subsidiaries and other business units
  Other cash receipts relating to
investing activities
     Sub-total of cash inflows from                             546,234,390.24    4,635,457.67
investing activities
   Cash payments to acquire or construct                          3,965,789.67    8,002,000.13
fixed assets, intangible assets and other
long-term assets
  Cash payments to acquire investments                          616,213,540.00
  Net cash payments for acquisitions of
subsidiaries and other business units
  Other cash payments relating to
investing activities
     Sub-total of cash outflows from                            620,179,329.67    8,002,000.13
investing activities
        Net cash flow from investing                            -73,944,939.43   -3,366,542.46
activities
III. Cash Flows from Financing
Activities:
  Cash receipts from capital
contributions
  Cash receipts from borrowings                                  20,000,000.00
   Other cash receipts relating to
financing activities
     Sub-total of cash inflows from                              20,000,000.00
financing activities
  Cash repayments of borrowings                                  10,000,000.00   44,440,000.00
   Cash payments for distribution of                               230,912.50     1,347,159.22
dividends or profits or settlement of
interest expenses
   Other cash payments relating to
financing activities
     Sub-total of cash outflows from                             10,230,912.50   45,787,159.22
financing activities

                                                    29   / 36
                                       The First Quarter Report in 2020



        Net cash flow from financing                             9,769,087.50                  -45,787,159.22
activities
IV. Effect of Foreign Exchange Rate                               -327,571.48                   -2,970,439.13
Changes on Cash and Cash
Equivalents
V. Net Increase in Cash and Cash                               -86,902,800.55                  -63,206,150.89
Equivalents
  Add: Opening balance of cash and                             524,648,100.62                  295,049,085.02
cash equivalents
VI. Closing Balance of Cash and Cash                           437,745,300.07                  231,842,934.13
Equivalents


Legal Representative:        Person in Charge of the Accounting Body:                     Chief Accountant:
    BO Lianming                             ZHAO Ruijin                                    WEI Yanlin




4.2 Description of adjustments in opening balances of line items in financial statements of the year due to
    the implementation of new revenue standard and new lease standard since 2020

√Applicable □ N/A
                                        Consolidated Balance Sheet
                                                                                                      In RMB
               Item                     December 31, 2019           January 1, 2020        Adjusted amount
Current Assets:
  Cash and bank balances                     875,858,784.58            875,858,784.58
  Balances with clearing agencies
   Placements with banks and other
financial institutions
  Held-for-trading financial assets          540,000,000.00            540,000,000.00
  Derivative financial assets
  Notes receivable                              4,042,559.63               4,042,559.63
  Accounts receivable                        176,035,155.24            195,363,317.97           19,328,162.73
  Receivables financing                         1,980,500.00               1,980,500.00
  Prepayments                                  35,070,999.13              35,070,999.13
  Premiums receivable
   Amounts receivable under
reinsurance contracts
  Reinsurer’s share of insurance
contract reserves
  Other receivables                             9,618,750.08               9,618,750.08
  Including: Interest receivable
          Dividends receivable

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   Financial assets purchased under
resale agreements
  Inventories                               299,966,170.35          283,610,860.13       -16,355,310.22
  Contract assets
  Held-for-sale assets
  Non-current assets due within
one year
  Other current assets                        44,405,513.30              44,405,513.30
     Total Current Assets                 1,986,978,432.31         1,989,951,284.82       2,972,852.51
Non-current Assets:
  Loans and advances
  Debt investments
  Other debt investments
  Long-term receivables
  Long-term equity investments              139,534,371.94          139,534,371.94
  Other equity instrument                     11,975,419.38              11,975,419.38
investments
  Other non-current financial
assets
  Investment properties
  Fixed assets                              471,204,340.95          471,204,340.95
  Construction in progress                    20,132,004.07              20,132,004.07
  Bearer biological assets
  Oil and gas assets
  Use right assets
  Intangible assets                         332,331,324.07          332,331,324.07
  Development expenditure
  Goodwill
  Long-term prepaid expenses                  16,908,070.34              16,908,070.34
  Deferred tax assets                       109,023,941.85          109,023,941.85
  Other non-current assets                    11,420,185.94              11,420,185.94
     Total Non-current Assets             1,112,529,658.54        1,112,529,658.54
       Total assets                       3,099,508,090.85        3,102,480,943.36        2,972,852.51
Current Liabilities:
  Short-term borrowings                       76,765,319.05              76,765,319.05
  Loans from the central bank
   Taking from banks and other
financial institutions
   Held-for-trading financial
liabilities
  Derivative financial liabilities
  Notes payable                               37,335,841.79              37,335,841.79
  Accounts payable                          176,624,445.46          176,624,445.46
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  Receipts in advance                        184,444,643.33                               -184,444,643.33
  Contract liabilities                                               184,444,643.33       184,444,643.33
  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                    50,586,932.71              50,586,932.71
  Taxes payable                                42,924,647.79              45,265,272.99      2,340,625.20
  Other payables                               14,364,076.43              14,364,076.43
  Including: Interest payable
          Dividends payable
  Fees and commissions payable
   Amounts payable under
reinsurance contracts
  Held-for-sale liabilities
  Non-current liabilities due                  64,968,795.02              64,968,795.02
within one year
  Other current liabilities
     Total Current Liabilities               648,014,701.58          650,355,326.78          2,340,625.20
Non-current Liabilities:
  Insurance contract reserves
  Long-term borrowings                       279,615,107.27          279,615,107.27
  Bonds payable
  Including: Preferred shares
            Perpetual bonds
  Leasing liabilities
  Long-term payables                            3,488,100.00               3,488,100.00
  Long-term employee benefits
payable
  Provisions                                   27,072,676.49              27,072,676.49
  Deferred income                              17,108,361.69              17,108,361.69
  Deferred tax liabilities
  Other non-current liabilities
     Total Non-current Liabilities           327,284,245.45          327,284,245.45
       Total Liabilities                     975,298,947.03          977,639,572.23          2,340,625.20
Owners’ (or Shareholders’) equity:
  Paid-in capital (or share capital)         451,554,411.00          451,554,411.00
  Other equity instruments
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  Including: Preferred shares
            Perpetual bonds
  Capital reserve                          1,207,942,318.37       1,207,942,318.37
  Less: Treasury shares
  Other comprehensive income                   3,287,063.85               3,287,063.85
  Special reserve
  Surplus reserve                             22,800,224.13              22,800,224.13
  General risk reserve
  Retained profits                          288,975,820.29          290,254,555.17            1,278,734.88
   Total Owners’ (or                      1,974,559,837.64       1,975,838,572.52            1,278,734.88
Shareholders’) Equity Attributable
to Owners of the Parent Company
  Minority interests                        149,649,306.18          149,002,798.61             -646,507.57
    Total Owners’ (or                     2,124,209,143.82       2,124,841,371.13             632,227.31
Shareholders’) Equity
      Total Liabilities and                3,099,508,090.85       3,102,480,943.36            2,972,852.51
Owners’ (or Shareholders’) Equity


Description of adjustments on each item:
√Applicable □ N/A
     In accordance with the Accounting Standards for Business Enterprises No.14- Revenue (Cai Kuai
[2017] No. 2) issued by the Ministry of Finance on July 5, 2017, for enterprises listed in domestic and
oversea stock exchange concurrently and enterprises listed overseas with the financial statements prepared
under international financial reporting standards or accounting standards for business enterprises, the new
revenue standard shall be implemented from January 1, 2018; and for other enterprises listed in
domestically, the revenue standard shall be implemented from January 1, 2020. As a domestic listed
company, the Company adopted the new revenue standard as at January 1, 2020, according to which: (1)
the goods payments received in advance originally qualified for conditions of “Receipts in advance”
were charged to the line item of “Contract liabilities”, with an adjustment on the opening balance of
relevant item recognized in the financial statements of 2020, but the data in comparable period can be
unadjusted; (2) for goods sold under the model of “profit distribution”, income from customers received
but not recognized were changed as it satisfied the condition of revenue recognition under the new revenue
standard, with an adjustment on the opening balance of relevant item recognized in the balance sheet for
adopting a transition treatment during the implementation of standards.

                                  Balance Sheet of the Parent Company
                                                                                                  In RMB
              Item                      December 31, 2019          January 1, 2020        Adjusted amount
Current Assets:
  Cash and bank balances                      570,479,390.49             570,479,390.49
  Held-for-trading financial                  540,000,000.00             540,000,000.00
assets
  Derivative financial assets

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  Notes receivable                              3,542,559.63              3,542,559.63
  Accounts receivable                         299,315,776.44            299,315,776.44
  Receivables financing                           442,500.00               442,500.00
  Prepayments                                   6,410,257.48              6,410,257.48
  Other receivables                            67,227,575.21             67,227,575.21
  Including: Interest receivable
          Dividends receivable
  Inventories                                 135,617,379.22            135,617,379.22
  Contract assets
  Held-for-sale assets
  Non-current assets due within
one year
  Other current assets                         12,280,164.39             12,280,164.39
     Total Current Assets                   1,635,315,602.86       1,635,315,602.86
Non-current Assets:
  Debt investments
  Other debt investments
  Long-term receivables
  Long-term equity investments                257,795,276.13            257,795,276.13
  Other equity instrument                       7,075,419.38              7,075,419.38
investments
  Other non-current financial
assets
  Investment properties
  Fixed assets                                 60,391,512.92             60,391,512.92
  Construction in progress                      1,385,496.59              1,385,496.59
  Bearer biological assets
  Oil and gas assets
  Use right assets
  Intangible assets                          330,796,423.87             330,796,423.87
  Development expenditure
  Goodwill
  Long-term prepaid expenses                   12,771,126.83             12,771,126.83
  Deferred tax assets                           9,545,438.20              9,545,438.20
  Other non-current assets                      6,744,453.85              6,744,453.85
     Total Non-current Assets                 686,505,147.77            686,505,147.77
       Total assets                         2,321,820,750.63       2,321,820,750.63
Current Liabilities:
  Short-term borrowings                        10,217,738.36             10,217,738.36
   Held-for-trading financial
liabilities
  Derivative financial liabilities


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  Notes payable                                  37,335,841.79             37,335,841.79
  Accounts payable                             162,596,838.45             162,596,838.45
  Receipts in advance                            11,116,659.11                             -11,116,659.11
  Contract liabilities                                                     11,116,659.11   11,116,659.11
  Employee benefits payable                      26,985,668.92             26,985,668.92
  Taxes payable                                   1,534,242.70              1,534,242.70
  Other payables                                 42,599,703.36             42,599,703.36
  Including: Interest payable
          Dividends payable
  Held-for-sale liabilities
  Non-current liabilities due
within one year
  Other current liabilities
     Total Current Liabilities                  292,386,692.69            292,386,692.69
Non-current Liabilities:
  Long-term borrowings
  Bonds payable
  Including: Preferred shares
            Perpetual bonds
  Leasing liabilities
  Long-term payables                              3,488,100.00              3,488,100.00
  Long-term employee benefits
payable
  Provisions                                     14,631,273.00             14,631,273.00
  Deferred income                                15,724,174.30             15,724,174.30
  Deferred tax liabilities
  Other non-current liabilities
     Total Non-current Liabilities               33,843,547.30             33,843,547.30
       Total Liabilities                        326,230,239.99            326,230,239.99
Owners’ (or Shareholders’) equity:
  Paid-in capital (or share capital)            451,554,411.00            451,554,411.00
  Other equity instruments
  Including: Preferred shares
            Perpetual bonds
  Capital reserve                             1,310,939,867.82       1,310,939,867.82
  Less: Treasury shares
  Other comprehensive income
  Special reserve
  Surplus reserve                                21,522,683.40             21,522,683.40
  Retained profits                              211,573,548.42            211,573,548.42
    Total Owners’ (or                        1,995,590,510.64       1,995,590,510.64
Shareholders’) Equity:

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        Total Liabilities and               2,321,820,750.63       2,321,820,750.63
Owners’ (or Shareholders’)
Equity:


Description of adjustments on each item:
√Applicable □ N/A
     In accordance with the Accounting Standards for Business Enterprises No.14- Revenue (Cai Kuai
[2017] No. 2) issued by the Ministry of Finance on July 5, 2017, for enterprises listed in domestic and
oversea stock exchange concurrently and enterprises listed overseas with the financial statements prepared
under international financial reporting standards or accounting standards for business enterprises, the new
revenue standard shall be implemented from January 1, 2018; and for other enterprises listed in
domestically, the revenue standard shall be implemented from January 1, 2020. As a domestic listed
company, the Company adopted the new revenue standard as at January 1, 2020, according to which the
goods payments received in advance originally qualified for conditions of “Receipts in advance” were
charged to the line item of “Contract liabilities”, with an adjustment on the opening balance of relevant
item recognized in the financial statements of 2020, but the data in comparable period can be unadjusted.


4.3 Description of retrospective adjustments in comparable data for previous periods upon the first
    adoption of the new revenue standard and new lease standard since 2020

□ Applicable √ N/A


4.4 Auditor's report
□ Applicable √ N/A




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